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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: PS DP 7-0-0-0 | ATT DP 8-1-1-0 | Third Read 20-7-3-0-0 |
SB 1308: foreign adversary fraud office; appropriation
Sponsor: Senator Petersen, LD 14
Committee on Science & Technology
Overview
Establishes the Foreign Adversary Fraud Office and fund in the Attorney General's office. Creates the Foreign Adversary Technology Rip and Replace Fund overseen by the Department of Homeland Security.
History
The statewide information security and privacy office is established in the Arizona Department of Homeland Security (AZDOHS). The statewide information security and privacy office is tasked with ensuring the security and privacy protection of budget units through direct policies, maintaining compliance standards, monitoring the effectiveness of assurance plans, implementing mitigation strategies and developing information security and privacy protection training programs. (A.R.S. §41-4282)
Critical infrastructure means systems and assets, whether physical or virtual, that are so vital to this state and the United States that the incapacity or destruction of those systems and assets would have a debilitating impact on security, economic security, public health or safety (A.R.S. § 41-1801).
The United States (U.S.) Secretary of Commerce has determined that the following foreign governments or foreign non-government persons have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the U.S. or security and safety of U.S. persons and constitute foreign adversaries:
1) The People's Republic of China, including the Hong Kong Special Administrative Region;
2) Republic of Cuba;
3) Islamic Republic of Iran;
4) Democratic People's Republic of Korea;
5) Russian Federation; and
6) Venezuelan politician Nicolás Maduro (15 C.F.R. § 791.4).
Provisions
Foreign Adversary Fraud Office and Fund
1. Establishes the Foreign Adversary Fraud Office (Office) in the Attorney General's (AG) office, to bring legal claims against entities in Arizona that are suspected of violating consumer fraud laws in the marketing, distribution or sale of technology that is produced by a foreign adversary. (Sec. 1)
2. Requires the AG to appoint a director to the Office. (Sec.1)
3. Authorizes the Office to pursue any investigation, litigation strategy or legal activity at the discretion of the AG. (Sec. 1)
4. Establishes the Foreign Adversary Fraud Fund (Fraud Fund), consisting of legislative appropriations and exempts the appropriations from lapsing. (Sec. 1)
5. Transfers any funds in the Office exceeding $10M at the end of the FY 2027 to the Foreign Adversary Technology Rip and Replace Fund. (Sec. 1)
6. Directs the AG to use monies in the fund to provide resources for the Office, its staff and litigation costs for bringing legal claims. (Sec. 2)
7. Appropriates $500,000 from the state GF in FY 2027 to the Foreign Adversary Fraud Fund and exempts the appropriation from lapsing. (Sec. 5)
8. Repeals the Foreign Adversary Fraud Office and Fraud Fund on January 1, 2031. (Sec.2)
Foreign Adversary Technology Rip and Replace Fund
9. Establishes the Foreign Adversary Technology Rip and Replace Fund (Rip and Replace Fund). (Sec.3)
10. Specifies the monies in the Rip and Replace Fund are appropriated by the legislature and monies deposited from the Fraud Fund. (Sec. 3)
11. Stipulates that monies in the Rip and Replace Fund are continuously appropriated and exempt from lapsing. (Sec. 3)
12. Specifies that monies in the Fund are to be used to replace any critical infrastructure technology that is produced by a foreign adversary. (Sec. 3)
13. Requires the Arizona Department of Homeland Security to administer the Rip and Replace Fund and outlines specific duties. (Sec. 3)
14. Repeals the Rip and Replace Fund and related statutory language on January 1, 2032. (Sec. 4)
15. Defines pertinent terms. (Sec. 1, 3)
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19. Initials TM SB 1308
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