Panel advances bill to create foreign-adversary fraud office and fund to replace compromised technology

The Committee of Appropriations voted to return Senate Bill 13-08 with a do-pass recommendation on March 11, 2026. Legislative staff said the bill would establish a Foreign Adversary Fraud Office and Fund in the Attorney General's Office to pursue consumer fraud involving technology produced by a foreign adversary, appropriate $500,000 from the State General Fund to the new fund in fiscal year 2027, and require transfers of any fund balance exceeding $10,000,000 into a rip-and-replace fund administered by the Department of Homeland Security.

Kelly Curry, testifying for the organization State Armor and identifying herself as a former U.S. diplomat and national security policymaker, urged support. "Anybody selling dangerous, defective, or fraudulently labeled goods to Arizona consumers should be prosecuted by the state to the fullest extent of the law," Curry said. She warned that devices sold under American brand names can be manufactured by companies such as Dahua or Hikvision and described those manufacturers as having been barred by federal departments because they may present backdoors that risk public and personal safety.

A committee member asked whether other states had produced settlements that could seed a replacement fund. Curry said cases had been filed recently in Nebraska, Tennessee and Texas and recounted a Missouri case that resulted in a multi‑million dollar settlement when defendants did not appear to defend. Representative Olson offered a brief explanation on the floor that he was reluctant to create a new fund but voted aye while reserving further judgment; the roll call produced 10 yeses, 4 noes, 2 present and 2 not voting.

The committee returned the bill with a do-pass recommendation; the transcript does not record further amendments and does not specify the bill's next committee or floor schedule.