State Rep. Nick Kupper speaks with the media on the floor of the Arizona House of Representatives on opening day of the 57th legislature in Phoenix Jan. 13, 2025. [Gage Skidmore]
The Arizona House of Representatives today passed HB2696, the Arizona Critical Infrastructure Protection Act, sponsored by State Rep. Nick Kupper (R-Surprise).
This legislation safeguards Arizona’s critical infrastructure by prohibiting the use of software and equipment produced by companies controlled by China.
Rep. Kupper, a 20-year Air Force veteran, celebrated the bill’s passage as a major step toward securing Arizona’s critical infrastructure against growing global threats.
“We’ve seen the extreme measures China will take to undermine our nation,” he said. “The Arizona Critical Infrastructure Protection Act is a crucial step in securing our power grids, water systems, and communications networks from those who seek to do us harm. In a world where the next war will be fought with technology as much as with troops, Arizona must stay ahead of the curve. We cannot afford to allow companies controlled by China access to these highly sensitive systems.”
The Act prohibits the use of software and equipment produced by companies headquartered in or controlled by China. It transfers regulatory oversight from the Arizona Commerce Authority to the Arizona Corporation Commission, ensuring stricter compliance and enforcement.
The bill also bans government entities and critical infrastructure providers from contracting with vendors of camera-based school bus infraction detection systems if the vendor is owned by the government of China and requires preapproval from the ACC for any critical infrastructure agreements involving China and a governmental entity or publicly regulated utility.
Additionally, the bill removes prior restrictions on the sale, transfer or investment of critical infrastructure by foreign adversaries and eliminates prohibitions on companies using foreign cloud service providers.
The passage of HB2696 aligns with the House Republican Majority Plan. The plan prioritizes defending Arizona from external threats.
HB2696 delivers on that promise by strengthening the state’s defenses against foreign interference, according to its authors.
HB2696 now moves to the Senate for further consideration.
