Senate Engrossed   Pacific conflict; committee; audits

State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024

SENATE BILL 1338

 

 

An Act

 

amending section 41-101, Arizona Revised Statutes; relating to public safety.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 41-101, Arizona Revised Statutes, is amended to read:

START_STATUTE41-101. Powers and duties; attestation of acts of governor; salary

A. The governor has the powers and shall perform the duties as prescribed in this article. The governor:

1. Shall supervise the official conduct of all executive and ministerial officers.

2. Shall see that all offices are filled and the duties performed or, in default, invoke such remedy as the law allows.

3. Shall appoint a private secretary to the governor and shall appoint all officers of this state not made elective, unless otherwise provided.

4. Notwithstanding section 38-211, shall appoint the lieutenant governor to serve as the governor's chief of staff or the director of the Arizona department of administration or to fill any position for which the governor is otherwise authorized by law to make an appointment.

5. Shall be the sole official means of communication between this state and the government of any other state or the United States.

6. Shall produce and publish a state risk assessment not later than the day before the governor's annual address made to the state Legislature.  The state risk assessment shall:

(a) Include:

(i) All substantial risks to state or national security, state or national economic security, state or national public health or any combination of those matters, occurring within and threatening this state.

(ii) An analysis of the probability and severity of the consequences associated with each risk scenario.

(b) identify all threats and hazards that could negatively impact the citizens and assets of this state.

6. 7. May direct the attorney general to appear on behalf of this state when any action or legal proceeding is pending that affects the title of this state to any property or that may result in a claim against this state.

7. 8. May require the attorney general, or any county attorney, to inquire into the affairs or management of any corporation doing business in this state.

8. 9. May require the attorney general to aid a county attorney in the discharge of his duties.

9. 10. May offer rewards for escaped insane persons, not exceeding five hundred dollars $500.

10. 11. May require any officer or board to make special reports to him on demand in writing.

11. 12. May convene the legislature at some other place when the seat of government becomes dangerous from disease or a common enemy.

12. 13. May enter into intergovernmental agreements with officers, agencies or departments of the United States to provide funding or other resources available from any related state agency, board or commission for the purpose of operating federal parks located in this state during any period when such parks would otherwise be subject to shutdown due to a lack of federal appropriation and as deemed necessary to promote tourism, this state's economic well-being, or the health, safety or welfare of the state's citizens. The governor shall not provide general fund appropriations from any related state agency, board or commission to operate a federal park pursuant to this paragraph for more than twenty-one days without the approval of the legislature. The joint legislative budget committee shall review any expenditure of funds monies or other resources pursuant to this paragraph.

13. 14. Has such powers and shall perform such other duties as devolve on him by law.

B. All official acts of the governor, except approval of the laws, shall be attested by the secretary of state.

C. The governor is eligible to receive an annual salary pursuant to section 41-1904.

D. Before an individual is hired as an employee of the office of the governor, that individual shall submit a full set of fingerprints to the governor for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. END_STATUTE

Sec. 2. Bipartisan select committee on Pacific conflict; powers and duties; annual report; confidentiality; delayed repeal; definitions

A. It is the policy of this state to:

1. Support the civilian and military command of the United States of America and its efforts to promote and maintain prosperity, peace and security for the United States and the United States of America's allies.

2. Enhance the defensive posture of this state to protect the citizens and assets of this state and to contribute to the defensive posture of the United States of America by reducing security vulnerabilities within this state.

3. Exercise foresight and make reasonable preparations for a potential regional or global conflict centered in the Pacific that could involve attacks on the United States of America and the United States of America's allies in the Pacific, could involve asymmetrical attacks on the United States of America and could cause the disruption or complete severing of supply chains between this state, its vendors and other countries in the Pacific.

B. The bipartisan select committee on Pacific conflict is established consisting of the following members:

1. The director of the department of public safety or the director's designee.

2. The adjutant general of the department of emergency and military affairs or the adjutant general's designee, who shall serve as the chairperson.

3. Two members of the senate, one of whom is appointed by the president of the senate and one of whom is appointed by the senate minority leader with approval of the president of the senate.

4. Two members of the house of representatives, one of whom is appointed by the speaker of the house of representatives and one of whom is appointed by the house minority leader with approval of the speaker of the house of representatives.

5. Five members who are appointed by the governor in consultation with the chairperson. These members shall provide expertise and collaborative research support to the committee.

C. Appointments for the committee shall be made within sixty days after the effective date of this section.

D. The committee's first meeting shall occur within ninety days after the effective date of this section. The committee shall meet at least once every three months, with additional regular meetings at the call of the majority of the committee and emergency meetings at the call of the chairperson or the governor.  The committee is exempt from title 38, chapter 3, article 3.1, Arizona Revised Statutes.

E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2, Arizona Revised Statutes.

F. The committee may:

1. Request testimony and evidence from witnesses material to the performance of the committee's duties or the exercise of its powers.

2. Request the production of any books, papers, records or other items material to the performance of the committee's duties or the exercise of its powers.

3. Consult experts.

4. Conduct field investigations.

5. Hold public hearings.

6. Conduct private hearings, but only to the extent necessary.

7. Request the cooperation of agencies in this state and nongovernmental organizations that are critical to the safety and security of this state to carry out the duties of the committee.

8. Coordinate with universities in this state, private firms specializing in infrastructure risk management and federal agencies, including the United States department of defense, the cybersecurity and infrastructure security agency, the national intelligence agency, the national security agency and the United States department of homeland security, to assess any risks in this state.

G. The committee shall:

1. Apply for preparedness grants through the federal emergency management agency.

2. Identify all critical infrastructure and other assets within this state that could be targeted by malicious actions by adversarial nations in the event of a Pacific conflict and that would result in a significant negative impact on the public health, safety, economic security or physical security of this state and the nation.

3. On or before December 31 of each year, provide an annual report to the governor, the president of the senate and the speaker of the house of representatives summarizing the committee's findings and recommendations and any threats posed to this state in the event of a Pacific conflict.  The report shall:

(a) Provide a comprehensive risk assessment, including all identified vulnerabilities and recommendations for emergency response strategies for all of the following areas:

(i) Critical infrastructure.

(ii) Telecommunications infrastructure.

(iii) Military installations located within this state.

(iv) State supply chain for critical procurements.

(v) State vendor supply chain for critical procurements.

(vi) State cybersecurity.

(vii) Public health, safety and security in this state.

(b) Include both of the following:

(i) Mitigation strategies and suggestions to limit or eliminate the risk posed to the critical infrastructure or other assets in the event of a Pacific conflict and mitigation strategies and suggestions that limit or eliminate the risk posed to the safety and security of this state or nation in the event of a Pacific conflict.

(ii) A risk-based list of components determined by the degree at which the sourcing of each component is at risk of disruption or restriction, the degree to which the disruption or restriction of sourcing would cause a debilitating effect on the safety and security of this state and the nation and the difficulty in identifying alternative manufacturers for sourcing or supply chain delivery for the component.

H. Before receiving the report required by subsection G of this section, each recipient of the report shall develop confidentiality protocols, in consultation with the chairperson of the committee, for the maintenance and use of the report to ensure the confidentiality of the report and all information contained in the report. The confidentiality protocols are binding on the recipient that issues the protocols and anyone to whom the recipient shows a copy of the report. The report and any information contained or used in its preparation are exempt from and shall not be made available pursuant to title 39, chapter 1, article 2, Arizona Revised Statutes.  The chairperson shall also develop protocols for the committee related to the maintenance and use of the report to ensure the confidentiality of the report and all information contained in the report.

I. This section is repealed from and after December 31, 2028.

J. For the purposes of this section:

1. "Critical infrastructure":

(a) Means systems and assets, whether physical or virtual, that are so vital to this state and the United States that the incapacity or destruction of those systems and assets would have a debilitating impact on security, economic security, public health or safety.

(b) Includes:

(i) Gas and oil production, storage or delivery systems.

(ii) Water supply refinement, storage or delivery systems.

(iii) Electrical power delivery systems.

(iv) Telecommunications networks.

(v) Transportation systems and services.

(vi) Personal data or otherwise classified information storage systems, including cybersecurity.

2. "Critical procurements" means acquisitions made by this state, any agency or political subdivision of this state or any private nongovernmental organization critical to the proper functioning of critical infrastructure or to the health, safety or security of this state or the United States.

3. "Pacific conflict":

(a) Means a declared war or armed conflict between the United States or any of the allies of the United States and another nation that occurs on land or sea or in the air in the Pacific Ocean and threatens or could reasonably escalate to threaten the supply chains, critical infrastructure, safety or security of this state or the United States.

(b) Includes a serious deterioration of diplomatic ties or economic engagement between the United States or the allies of the United States and another nation that threatens the status quo of Pacific trade, travel and military operations or exercises.

4. "State supply chain" means the end-to-end process for shipping goods, purchased by this state or shipped to this state, beginning at the point of origin through a point or points of distribution to the destination.

5. "State vendor supply chain" means the end-to-end process for shipping goods, purchased by this state from state vendors or shipped to the vendors, beginning at the point of origin through a point or points of distribution to the destination.

Sec. 3. Audits; reporting requirements; confidentiality; delayed repeal; definitions

A. The auditor general shall conduct an audit of all critical procurements purchased or supplied through a state supply chain or state vendor supply chain.  The audit shall:

1. Identify the following:

(a) All critical procurements produced in or by any of the following:

(i) A foreign adversary.

(ii) A state-owned enterprise of a foreign adversary.

(iii) A company domiciled in a foreign adversary.

(iv) A company owned by a company domiciled in a foreign adversary.

(b) All critical procurements manufactured in countries or by companies at risk of disruption in the event of a Pacific conflict.

(c) All critical procurements sourced from any country or company that uses a Pacific supply chain process at risk of disruption in the event of a Pacific conflict.

2. Include recommendations for alternative sourcing available, highlight any difficulties in identifying potential alternative sourcing and specify the level of risk to this state associated with such disruption in sourcing for each procurement that is threatened in the event of a Pacific conflict.

B. On or before July 31, 2026, the auditor general shall submit its report of the audit conducted pursuant to subsection A of this section to the governor, the president of the senate and the speaker of the house of representatives.

C. The auditor general shall conduct an audit of all monies managed by this state and any political subdivision of this state.  The audit shall identify all of the following:

1. Investments that are at risk of substantially losing value or being frozen, seized or appropriated by foreign adversaries in the event of a Pacific conflict.

2. Investments in any arms industry of a foreign adversary.

3. Investments in state-owned enterprises of a foreign adversary.

4. Investments in companies domiciled within a foreign adversary or owned by a company domiciled within a foreign adversary.

D. The audit shall also recommend strategies for the immediate and complete divestment of the assets identified pursuant to subsection C of this section.

E. On or before July 31, 2026, the auditor general shall submit its report of the audit conducted pursuant to subsection C of this section to the governor, the president of the senate and the speaker of the house of representatives.

F. Before receiving the reports required by subsections B and E of this section, each recipient of the report shall develop confidentiality protocols, in consultation with the chairperson of the bipartisan select committee on Pacific conflict established pursuant to section 2 of this act, for the maintenance and use of the report to ensure the confidentiality of the report and all information contained in the report. The confidentiality protocols are binding on the recipient that issues the protocols and anyone to whom the recipient shows a copy of the report.  The report and any information contained or used in its preparation are exempt from and shall not be made available pursuant to title 39, chapter 1, article 2, Arizona Revised Statutes.

G. This section is repealed from and after December 31, 2026.

H. For the purposes of this section:

1. "Critical procurements" means acquisitions made by this state, any agency or political subdivision of this state or any private nongovernmental organization critical to the proper functioning of critical infrastructure or to the health, safety or security of this state or the United States.

2. "Pacific conflict":

(a) Means a declared war or armed conflict between the United States or any of the allies of the United States and another nation that occurs on land or sea or in the air in the Pacific Ocean and threatens or could reasonably escalate to threaten the supply chains, critical infrastructure, safety or security of this state or the United States.

(b) Includes a serious deterioration of diplomatic ties or economic engagement between the United States or the allies of the United States and another nation that threatens the status quo of Pacific trade, travel and military operations or exercises.

3. "State supply chain" means the end-to-end process for shipping goods, purchased by this state or shipped to this state, beginning at the point of origin through a point or points of distribution to the destination.

4. "State vendor supply chain" means the end-to-end process for shipping goods, purchased by this state from state vendors or shipped to the vendors, beginning at the point of origin through a point or points of distribution to the destination.

Sec. 4. Effective date

This act is effective from and after December 31, 2024.

Sec. 5. Short title

This act may be cited as the "Pacific Conflict Stress Test Act".