HB 2696 Arizona House · 57th Legislature - First Regular Session

critical Infrastructure; foreign adversary; prohibition

HB 2696 prohibits Arizona critical infrastructure providers (including utilities, telecoms, emergency services, and water systems) from using software, equipment, or vendors owned or controlled by foreign adversaries - defined as countries designated under federal law (15 CFR §791.4). It requires replacing existing equipment from federally banned corporations with U.S.-made alternatives by 2025, mandates annual certification to the attorney general, and bans government contracts with prohibited vendors. The law applies to all critical infrastructure service providers and government entities purchasing equipment like routers, modems, or traffic enforcement systems. The attorney general must publish an annual list of banned vendors on their website, starting December 2025.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
House Passage
Mar 2025
Senate Passage
Governor
Introduced Jan 29, 2025 Last action Mar 26, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version House Engrossed Version · 6 edits · Mar 10, 2025
MODERATE
The bill was amended to specifically target the People's Republic of China instead of using the generic term 'foreign adversary,' thereby narrowing the scope of prohibited vendors and equipment to Chinese entities. The bill's scope was expanded to include new categories of technology such as LiDAR, school bus cameras, and smart meters under strict prohibitions for government contracts. Enforcement authority shifted from the Attorney General to the Corporation Commission, which now manages compliance reporting and maintains a public list of prohibited technologies.
Scope change
The bill's scope narrowed from a broad ban on any 'foreign adversary' to a specific ban on the People's Republic of China, while simultaneously expanding the scope of prohibited technologies to include LiDAR, school bus infraction detection systems, and smart meters.
DEFINITION

Replaced the term 'foreign adversary' with 'the people's republic of china' throughout the statute to specify the targeted nation.

Added specific definitions for 'cellular internet-of-things module' and 'school bus infraction detection system' to clarify prohibited items.

REQUIREMENT

Added new prohibitions preventing government entities from contracting with vendors of LiDAR, school bus infraction detection systems, speed detection systems, traffic infraction detectors, and smart meters if owned or controlled by Chinese entities.

Introduced a new exemption clause allowing the continued use of prohibited technology only if no reasonable alternatives exist and the threat of non-use is greater than the threat of use.

ENFORCEMENT

Transferred enforcement and oversight responsibilities from the Attorney General to the Corporation Commission, which now handles certification, reporting, and publishing prohibited vendor lists.

TIMELINE

Extended the deadline for removing prohibited technology from ninety days to ninety days after the Corporation Commission publishes the list, with a specific compliance date of December 31, 2025 for the initial list.

Floor votes · House Mar 10, 2025

How they voted

3224
Passed · 4 other
Total votes 60
Mar 10, 2025
D Democratic27
1 Yea 24 Nay 2
88% Nay
R Republican33
31 Yea 2
93% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
11
Key actions
6
Committee
1
Amendments
3
Mar 26, 2025
Upper · Passed
DP
upper
Mar 10, 2025
Lower · Passed
PASSED
lower
Mar 5, 2025
Lower · Passed
DPA
lower
Mar 5, 2025
Lower · Passed
PASSED
lower
Feb 19, 2025
Lower · Passed
DPA
lower
Feb 5, 2025
Lower · Passed
DPA
lower
1 primary · 5 co-sponsors

Sponsors