Technology

HB 2307 is a technical correction to Arizona's critical infrastructure protection law. It amends Section 41-1805 of the Arizona Revised Statutes to clarify that state/local government employees and entities handling critical infrastructure information face a class 5 felony charge if they knowingly disclose protected information without authorization. The bill specifically targets unauthorized disclosure of critical infrastructure data defined under Section 41-1801, reinforcing existing penalties without creating new requirements. This is a procedural update to the legal text, not a substantive policy change.

SB 1088 appropriates $2.5 million from Arizona’s state general fund for the Arizona Department of Homeland Security’s cybersecurity programs during fiscal year 2026-2027. Specifically, $500,000 is allocated for generative artificial intelligence cybersecurity programs, and $2 million is designated to modernize the statewide VPN security network using a zero trust network access solution. This funding directly supports the state’s cybersecurity infrastructure and operations under the Department of Homeland Security. The bill does not create new policy but provides targeted financial resources for specific technical upgrades and emerging technology applications.

SB 1826 appropriates $500,000 from Arizona's advanced air mobility fund for the Office of Advanced Air Mobility's operations and support in fiscal year 2026-2027. Despite its title mentioning "wayfinding signs," the bill focuses on funding for advanced air mobility initiatives (like drone infrastructure or air taxi systems), not rural signage. The bill is conditional on Senate Bill 1827 (relating to aviation) becoming law. It directly affects the state's Office of Advanced Air Mobility, providing operational funding for its work in developing emerging air transportation technologies. The bill passed the Senate on March 4, 2026, and was transmitted to the House.

Arizona's SB 1045 prohibits cities and counties from banning or taxing individuals who run blockchain technology nodes (home-based computers validating transactions) in their residences. The bill explicitly prevents local governments from imposing restrictions or fees on residential blockchain operations, stating such regulation is a statewide concern. It defines key terms like "computational power" (using hardware/software for tasks like blockchain processing) and "running a node" (validating transactions). The law directly affects residential users of blockchain technology, ensuring they cannot face local barriers or costs for this activity.

SB 1044 would exempt virtual currency from property taxation in Arizona, directly affecting owners of digital assets like cryptocurrencies who hold them as property. The bill defines virtual currency as a digital medium of exchange, unit of account, and store of value - excluding U.S. dollars or foreign currencies - and specifies it would be tax-exempt under state property tax rules. However, the exemption would only take effect if Arizona voters approve a constitutional amendment at the next general election, as required by the bill’s conditional enactment clause. This proposal does not alter current tax treatment but seeks to establish a new exemption for virtual currency assets.