Arizona networks would have to replace telecom equipment made by or tied to China

Critical telecommunications infrastructure that is in or serves Arizona would have to be built without equipment made by a foreign adversary, and existing prohibited equipment would have to be removed and replaced. The foreign adversary is the People's Republic of China. Critical telecommunications infrastructure means physical broadband equipment with at least one microchip that connects to a regulated utility's network and lets users communicate. Prohibited equipment includes equipment whose critical or necessary parts are made by China, Chinese state-owned enterprises, companies based in China, or companies owned or controlled by China. Removal and replacement is required even if the infrastructure is not permanently disabled. A provider does not need an extra state or local permit to remove or replace equipment if the agency is notified and the replacement is similar. The act takes effect from and after December 31, 2026.

Each telecommunications provider would certify to the Corporation Commission every year that its network uses no prohibited equipment, and violators would face daily fines and loss of public money. This applies to every corporation that offers telecommunications services in Arizona. A provider that violates the rules owes $10,000 to $100,000 for each day of noncompliance. Knowingly filing a false certification carries the same range. A provider that does not comply cannot receive state or local money, or federal money passed through state or local governments, for new or existing critical telecommunications infrastructure. Certifications are due on or before January 1 each year.