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| 51 | 62 | | An Act |
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| 54 | 65 | | |
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| 55 | 66 | | amending title 18, Arizona Revised Statutes, by adding chapter 7; relating to information technology. |
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| 61 | 72 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 65 | 76 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Title 18, Arizona Revised Statutes, is amended by adding chapter 7, to read: CHAPTER 7 PROHIBITED TELECOMMUNICATIONS INFRASTRUCTURE ARTICLE 1. GENERAL PROVISIONS START_STATUTE18-701. Definitions In this chapter, unless the context otherwise requires: 1. "Critical telecommunications infrastructure" means all physical broadband infrastructure and equipment that supports the transmission of information of a user's choosing, regardless of the transmission medium or technology employed, that connects to a network that allows the end user to engage in communications, including service provided directly to the public or to the classes of uses as to be effectively available directly to the public. 2. "Federally banned corporation" means any company or designated equipment currently banned or at any point in the future banned at the federal government level. For the purposes of this paragraph, "banned" includes bans resulting from the following federal agencies and acts: (a) The federal communications commission, including any equipment or service that is deemed to pose a threat to national security and that is identified on the covered list that is developed pursuant to 47 Code of Federal Regulations section 1.50002, as the act existed on December 15, 2023 and published by the public safety and homeland security bureau of the federal communications commission pursuant to the secure and trusted communications networks act of 2019 (P.L. 116-124; 47 United States Code sections 1601 through 1609), as the act existed on December 27, 2020. (b) The United States department of commerce. (c) The United States cybersecurity and infrastructure security agency. (d) The federal acquisition security council. (e) Section 889 of the John S. McCain National Defense Authorization Act for fiscal year 2019 (P.L. 115-232). 3. "Foreign adversary": (a) Means any of the following: (i) The people's republic of China, including the Hong Kong SPECIAL administrative region. (ii) Russia. (iii) Iran. (iv) North Korea. (v) Venezuela. (vi) Syria. (b) Includes any agent of or any other entity under significant control of a foreign country of concern. 4. "Telecommunications provider" means any corporation, public or private, that operates any system that supports the transmission of information of a user's choosing, regardless of the transmission medium or technology employed, that connects to a network that allows the end user to engage in communications, including service provided to the public or to the classes of uses as to be effectively available directly to the public. END_STATUTE START_STATUTE18-702. Critical telecommunications infrastructure; prohibitions; replacement and permit requirements A. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without including any equipment that is manufactured by a federally banned corporation or any equipment that is banned by the federal government. B. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without having any equipment that is manufactured in or by, including any equipment whose critical or necessary components are manufactured in or by, a foreign adversary, a state-owned enterprise of a foreign adversary, a company that is domiciled within a foreign adversary or a company that is owned or controlled by a foreign adversary, a foreign adversary state-owned enterprise or a foreign adversary-domiciled company. C. A critical telecommunications infrastructure in operation within or serving this state, including any critical telecommunications infrastructure that is not permanently disabled, must have all equipment that is prohibited by this section removed and replaced with equipment that is not prohibited by this section. D. A telecommunications provider that removes, discontinues or replaces any prohibited telecommunications equipment or service is not required to obtain any additional permits from any state agency or political subdivision of this state to remove, discontinue or replace the telecommunications equipment or service as long as the state agency or political subdivision of this state is properly notified of the necessary replacements and the replacement telecommunications equipment is similar to the existing telecommunications equipment. END_STATUTE START_STATUTE18-703. Telecommunications infrastructure oversight; corporation commission; registration requirements; civil penalties; prohibition on receiving state and federal monies A. Each telecommunications provider that provides a service in this state shall file a registration form with the corporation commission. the corporation commission may adopt and charge a registration filing fee. B. A telecommunications provider shall provide the corporation commission with the name, address, telephone number and email address of a person who has managerial responsibility for operations in this state. c. A telecommunications provider shall do all of the following: 1. If required by the corporation commission, submit a fee at the time the telecommunications provider submits a registration form. 2. Keep the information required by this section current and notify the corporation commission of any changes to the information within sixty days after the change. 3. On or before January 1 of each year, certify to the corporation commission that all critical telecommunications infrastructure and equipment within the telecommunications provider's operation do not use or provide any telecommunications equipment or service that is prohibited by section 18-702. D. A telecommunications provider that violates this section is subject to a civil penalty of not less than $10,000 per day and not more than $100,000 per day of noncompliance with this section. E. A telecommunications provider that knowingly submits a false registration form that is required pursuant to subsection A of this section is subject to a civil penalty of not less than $10,000 per day and not more than $100,000 per day of noncompliance. F. A telecommunications provider that fails to comply with this section is prohibited from receiving any state or local monies for the development or support of new or existing critical telecommunications infrastructure and is prohibited from receiving any federal monies that are subject to distribution by state or local governments for the development or support of new or existing critical telecommunications infrastructure. END_STATUTE Sec. 2. Purpose The purpose of this act is to secure Arizona's telecommunications grid and protect national security by eliminating telecommunications hardware and software from Arizona's telecommunications grid that comes from countries of concern and sanctioned entities. Sec. 3. Effective date This act is effective from and after December 31, 2024. Sec. 4. Short title This act shall be known and cited as the "Secure Telecommunications Act of 2024". |
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| 66 | 77 | | |
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| 67 | 78 | | Be it enacted by the Legislature of the State of Arizona: |
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| 68 | 79 | | |
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| 69 | 80 | | Section 1. Title 18, Arizona Revised Statutes, is amended by adding chapter 7, to read: |
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| 70 | 81 | | |
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| 71 | 82 | | CHAPTER 7 |
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| 72 | 83 | | |
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| 73 | 84 | | PROHIBITED TELECOMMUNICATIONS INFRASTRUCTURE |
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| 74 | 85 | | |
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| 75 | 86 | | ARTICLE 1. GENERAL PROVISIONS |
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| 76 | 87 | | |
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| 77 | 88 | | START_STATUTE18-701. Definitions |
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| 78 | 89 | | |
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| 79 | 90 | | In this chapter, unless the context otherwise requires: |
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| 80 | 91 | | |
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| 81 | 92 | | 1. "Critical telecommunications infrastructure" means all physical broadband infrastructure and equipment that supports the transmission of information of a user's choosing, regardless of the transmission medium or technology employed, that connects to a network that allows the end user to engage in communications, including service provided directly to the public or to the classes of uses as to be effectively available directly to the public. |
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| 82 | 93 | | |
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| 83 | 94 | | 2. "Federally banned corporation" means any company or designated equipment currently banned or at any point in the future banned at the federal government level. For the purposes of this paragraph, "banned" includes bans resulting from the following federal agencies and acts: |
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| 84 | 95 | | |
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| 85 | 96 | | (a) The federal communications commission, including any equipment or service that is deemed to pose a threat to national security and that is identified on the covered list that is developed pursuant to 47 Code of Federal Regulations section 1.50002, as the act existed on December 15, 2023 and published by the public safety and homeland security bureau of the federal communications commission pursuant to the secure and trusted communications networks act of 2019 (P.L. 116-124; 47 United States Code sections 1601 through 1609), as the act existed on December 27, 2020. |
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| 86 | 97 | | |
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| 87 | 98 | | (b) The United States department of commerce. |
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| 88 | 99 | | |
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| 89 | 100 | | (c) The United States cybersecurity and infrastructure security agency. |
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| 90 | 101 | | |
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| 91 | 102 | | (d) The federal acquisition security council. |
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| 92 | 103 | | |
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| 93 | 104 | | (e) Section 889 of the John S. McCain National Defense Authorization Act for fiscal year 2019 (P.L. 115-232). |
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| 94 | 105 | | |
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| 95 | 106 | | 3. "Foreign adversary": |
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| 96 | 107 | | |
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| 97 | 108 | | (a) Means any of the following: |
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| 98 | 109 | | |
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| 99 | 110 | | (i) The people's republic of China, including the Hong Kong SPECIAL administrative region. |
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| 100 | 111 | | |
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| 101 | 112 | | (ii) Russia. |
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| 102 | 113 | | |
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| 103 | 114 | | (iii) Iran. |
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| 104 | 115 | | |
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| 105 | 116 | | (iv) North Korea. |
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| 106 | 117 | | |
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| 107 | 118 | | (v) Venezuela. |
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| 108 | 119 | | |
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| 109 | 120 | | (vi) Syria. |
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| 110 | 121 | | |
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| 111 | 122 | | (b) Includes any agent of or any other entity under significant control of a foreign country of concern. |
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| 112 | 123 | | |
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| 113 | 124 | | 4. "Telecommunications provider" means any corporation, public or private, that operates any system that supports the transmission of information of a user's choosing, regardless of the transmission medium or technology employed, that connects to a network that allows the end user to engage in communications, including service provided to the public or to the classes of uses as to be effectively available directly to the public. END_STATUTE |
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| 114 | 125 | | |
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| 115 | 126 | | START_STATUTE18-702. Critical telecommunications infrastructure; prohibitions; replacement and permit requirements |
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| 116 | 127 | | |
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| 117 | 128 | | A. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without including any equipment that is manufactured by a federally banned corporation or any equipment that is banned by the federal government. |
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| 118 | 129 | | |
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| 119 | 130 | | B. A critical telecommunications infrastructure that is located within or is serving this state must be constructed without having any equipment that is manufactured in or by, including any equipment whose critical or necessary components are manufactured in or by, a foreign adversary, a state-owned enterprise of a foreign adversary, a company that is domiciled within a foreign adversary or a company that is owned or controlled by a foreign adversary, a foreign adversary state-owned enterprise or a foreign adversary-domiciled company. |
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| 120 | 131 | | |
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| 121 | 132 | | C. A critical telecommunications infrastructure in operation within or serving this state, including any critical telecommunications infrastructure that is not permanently disabled, must have all equipment that is prohibited by this section removed and replaced with equipment that is not prohibited by this section. |
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| 122 | 133 | | |
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| 123 | 134 | | D. A telecommunications provider that removes, discontinues or replaces any prohibited telecommunications equipment or service is not required to obtain any additional permits from any state agency or political subdivision of this state to remove, discontinue or replace the telecommunications equipment or service as long as the state agency or political subdivision of this state is properly notified of the necessary replacements and the replacement telecommunications equipment is similar to the existing telecommunications equipment. END_STATUTE |
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| 124 | 135 | | |
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| 125 | 136 | | START_STATUTE18-703. Telecommunications infrastructure oversight; corporation commission; registration requirements; civil penalties; prohibition on receiving state and federal monies |
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| 126 | 137 | | |
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| 127 | 138 | | A. Each telecommunications provider that provides a service in this state shall file a registration form with the corporation commission. the corporation commission may adopt and charge a registration filing fee. |
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| 128 | 139 | | |
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| 129 | 140 | | B. A telecommunications provider shall provide the corporation commission with the name, address, telephone number and email address of a person who has managerial responsibility for operations in this state. |
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| 130 | 141 | | |
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| 131 | 142 | | c. A telecommunications provider shall do all of the following: |
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| 132 | 143 | | |
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| 133 | 144 | | 1. If required by the corporation commission, submit a fee at the time the telecommunications provider submits a registration form. |
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| 134 | 145 | | |
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| 135 | 146 | | 2. Keep the information required by this section current and notify the corporation commission of any changes to the information within sixty days after the change. |
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| 136 | 147 | | |
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| 137 | 148 | | 3. On or before January 1 of each year, certify to the corporation commission that all critical telecommunications infrastructure and equipment within the telecommunications provider's operation do not use or provide any telecommunications equipment or service that is prohibited by section 18-702. |
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| 138 | 149 | | |
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| 139 | 150 | | D. A telecommunications provider that violates this section is subject to a civil penalty of not less than $10,000 per day and not more than $100,000 per day of noncompliance with this section. |
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| 140 | 151 | | |
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| 141 | 152 | | E. A telecommunications provider that knowingly submits a false registration form that is required pursuant to subsection A of this section is subject to a civil penalty of not less than $10,000 per day and not more than $100,000 per day of noncompliance. |
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| 142 | 153 | | |
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| 143 | 154 | | F. A telecommunications provider that fails to comply with this section is prohibited from receiving any state or local monies for the development or support of new or existing critical telecommunications infrastructure and is prohibited from receiving any federal monies that are subject to distribution by state or local governments for the development or support of new or existing critical telecommunications infrastructure. END_STATUTE |
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| 144 | 155 | | |
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| 145 | 156 | | Sec. 2. Purpose |
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| 146 | 157 | | |
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| 147 | 158 | | The purpose of this act is to secure Arizona's telecommunications grid and protect national security by eliminating telecommunications hardware and software from Arizona's telecommunications grid that comes from countries of concern and sanctioned entities. |
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| 148 | 159 | | |
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| 149 | 160 | | Sec. 3. Effective date |
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| 150 | 161 | | |
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| 151 | 162 | | This act is effective from and after December 31, 2024. |
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| 152 | 163 | | |
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| 153 | 164 | | Sec. 4. Short title |
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| 154 | 165 | | |
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| 155 | 166 | | This act shall be known and cited as the "Secure Telecommunications Act of 2024". |
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