Arizona 2025 Regular Session

Arizona House Bill HB2696

Introduced
1/29/25  
Report Pass
2/5/25  
Report Pass
2/10/25  
Engrossed
3/10/25  
Report Pass
3/26/25  

Caption

Critical Infrastructure; foreign adversary; prohibition

Impact

If passed, HB 2696 would significantly alter existing statutes by integrating stringent regulations regarding the sale, transfer, and investment in critical infrastructures. It requires owners to inform the Attorney General about any transactions involving foreign entities, thereby placing the onus of due diligence on both private companies and government entities regarding their technological partnerships. This act would enhance the state's oversight and control over infrastructures critical to public safety, economic stability, and national security.

Summary

House Bill 2696 aims to address the security and integrity of Arizona's critical infrastructure by prohibiting any software or equipment used in this domain from being sourced from foreign adversaries or federally banned corporations. The bill outlines that any critical communications infrastructure must be free from such associations. Furthermore, it mandates that communications infrastructure providers certificate compliance annually about any prohibited technologies or equipment they might be using, as well as submit status reports to the Arizona Commerce Authority.

Sentiment

The general sentiment around HB 2696 reflects a heightened awareness of security threats posed by foreign entities, particularly in the context of technology. Proponents argue that the bill is a necessary measure to protect the state's critical assets from potential exploitation or sabotage by foreign adversaries. However, concerns are raised about the implications for businesses that may struggle to find compliant technology vendors domestically, potentially leading to operational disruptions.

Contention

Despite the evident security focus, HB 2696 faces criticism related to its potential to stifle innovation and limit competition within the technology market. Certain stakeholders argue that the bill could create barriers for legitimate foreign businesses that are essential to the supply chain, while some allege that blanket prohibitions may not adequately discriminate between harmful and beneficial foreign investments. The complexity in determining what constitutes a 'foreign adversary' and the implications of such designations could become contentious areas in the legislative debate.

Companion Bills

No companion bills found.

Previously Filed As

AZ HB2436

State contracts; foreign adversary; prohibition

AZ SB1208

Critical telecommunications infrastructure; construction requirements

AZ SB1340

Public funds; foreign adversaries; divestment

AZ HB2439

Property conveyance; foreign entities; prohibition

AZ SB1115

Land sales; foreign entities; prohibition

AZ HB2376

Agricultural land; foreign ownership; prohibition

AZ SB1658

Critical infrastructure; prohibited agreements

AZ SB1123

Critical infrastructure; prohibited agreements

AZ HB2860

Water conservation infrastructure; reimbursement

AZ HB2416

Electronic applications; government employees; prohibition

Similar Bills

TN SB0378

AN ACT to amend Tennessee Code Annotated, Title 4, relative to critical infrastructure.

TN HB0549

AN ACT to amend Tennessee Code Annotated, Title 4, relative to critical infrastructure.

FL H0925

Threats from Foreign Nations

IL SB2370

CRITICAL INFRASTRUCTURE PROTEC

OK SB893

Property and critical infrastructure; creating the Military Installation and Critical Infrastructure Protection Act of 2025. Effective date.

IL SB3543

CRITICAL INFRASTRUCTURE PROTEC

OK HB1265

Property and critical infrastructure; creating the Military Installation and Critical Infrastructure Protection Act of 2024; effective date.

OK SB910

Property and critical infrastrcture; creating the Military Installation and Critical Infrastructure Protection Act of 2025. Effective date.