SB 1027 Arizona Senate · 57th Legislature - First Regular Session

critical telecommunications infrastructure; construction requirements

SB 1027, the "Secure Telecommunications Act of 2025," prohibits Arizona telecommunications providers from using or installing equipment from "federally banned corporations" or countries designated as "foreign adversaries" (including China, Russia, Iran, North Korea, and others) in critical broadband infrastructure. It requires providers to remove existing prohibited equipment by 2025 and replace it with compliant equipment, while mandating annual registration with Arizona's Corporation Commission and certification of compliance. Providers violating these rules face daily civil penalties of $10,000-$100,000 and are barred from receiving state or federal funding for telecom infrastructure. The law directly affects all telecom companies operating in Arizona, aiming to secure the state’s network by eliminating equipment linked to national security concerns.

Issues: ✓ Technology

Bill status vetoed 4 of 5 stages cleared

Introduction

Dec 2024

Committee Review

Jan 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Vetoed

Apr 2025

Introduced Dec 16, 2024 Vetoed Apr 18, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version → Senate Engrossed Version · 7 edits · Apr 15, 2025

MODERATE

This bill was amended to expand its definition of prohibited telecommunications equipment by incorporating federal bans from multiple agencies and acts, rather than relying solely on a single federal definition. The changes also modify compliance requirements for telecommunications providers, adding registration obligations and clarifying penalties for noncompliance.

Scope change

The bill now applies to any equipment banned by various federal agencies and acts, not just those meeting a single federal definition, and requires telecommunications providers to register with the corporation commission.

DEFINITION

Added new definition of 'banned' to include equipment banned by the FCC, Department of Commerce, CISA, Federal Acquisition Security Council, and Section 889 of the 2019 National Defense Authorization Act.

Added new definition of 'Federally banned corporation' to include companies or equipment currently or potentially banned at the federal government level.

Expanded the definition of 'Foreign adversary' to include Russia, Iran, North Korea, Venezuela, and Syria in addition to China.

REQUIREMENT

Added requirement for telecommunications providers to file a registration form with the corporation commission and maintain current contact information.

Modified certification requirements to include annual certification that infrastructure does not use prohibited equipment.

ENFORCEMENT

Added new penalty provision for knowingly submitting false registration forms.

Reorganized penalty structure to include civil penalties for both false certifications and general noncompliance with registration requirements.

Introduced Version → House Engrossed Version · 7 edits · Apr 15, 2025

MODERATE

The bill was reformatted from an introduced version to a House Engrossed version, with significant substantive changes to the definitions and scope of prohibited equipment. The original version included a broad list of foreign adversaries (China, Russia, Iran, North Korea, Venezuela, Syria) and multiple federal agencies, while the new version narrows the definition of 'foreign adversary' to only China and removes most federal agency references. The definition of critical telecommunications infrastructure was also simplified and now requires ownership by a publicly regulated utility and contains at least one microchip. The effective date was changed from December 2024 to December 31, 2025, and new sections were added clarifying the purpose and short title of the act.

Scope change

The scope was narrowed from multiple foreign adversaries to only China, and the definition of critical telecommunications infrastructure was modified to require public utility ownership and microchip content.

DEFINITION

The definition of 'foreign adversary' was changed from six countries (China, Russia, Iran, North Korea, Venezuela, Syria) to only China.

The definition of 'critical telecommunications infrastructure' was modified to require that it be owned by a publicly regulated utility and contain at least one microchip.

The definition of 'banned' equipment was simplified, removing detailed references to multiple federal agencies and specific federal acts.

TIMELINE

The effective date was changed from December 16, 2024 to December 31, 2025.

REQUIREMENT

New sections were added stating the purpose of the act and establishing the short title as the 'Secure Telecommunications Act of 2025'.

The registration requirement was modified to require annual certification by January 1 of each year rather than just filing a registration form.

ENFORCEMENT

Specific civil penalty amounts were added ($10,000 to $100,000 per day for violations and false certifications).

Floor votes · House Apr 10, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 18, 2025

Vetoed

Vetoed by Governor

executive

Apr 15, 2025

Upper · Passed

PASSED

upper

Apr 10, 2025

Lower · Passed

PASSED

lower

Apr 3, 2025

Lower · Passed

DPA

lower

Mar 26, 2025

Lower · Passed

DPA

lower

Feb 20, 2025

Upper · Passed

PASSED

upper

Feb 20, 2025

Upper · Passed

DPA

upper

Jan 29, 2025

Upper · Passed

upper

1 primary · 0 co-sponsors