Official Summary Text
HB2592 - 572R - Senate Fact Sheet
Assigned to
ATT�������������������������������������������������������������������������������������������������������������� AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
h.B. 2592
artificial
intelligence; state agencies; rules
Purpose
Outlines requirements for budget units to identify opportunities for the
use of artificial intelligence (AI) system solutions and reduce barriers to AI
system innovation. Requires the Director of the Arizona Department of
Administration (ADOA) to submit a report on the implementation and
effectiveness of AI systems by budget units by December 1 of each year.
Background
The federal National Artificial Intelligence Initiative Act of 2020 (Act)
codified the establishment of a national AI initiative and associated federal
offices and committees. The Act directed the U.S. Secretary of Commerce, in
coordination with other federal agencies, including the National Institute of
Standards and Technology, the U.S. Department of Energy and the U.S. Department
of Homeland Security, to establish guidelines and best practices for developing
safe, secure and trustworthy AI systems, with the aim of promoting consensus
industry standards (
15
U.S.C. �� 9401-9462
).
Executive Order 14179 deems that it is the policy of the United States to
sustain and enhance AI to promote economic competitiveness and national
security. The Executive Order directed various federal agencies and individuals
to develop an AI action plan and identify actions taken pursuant to Executive
Order 14110 that conflict with this policy (
Exec.
Order No. 14179
). Executive Order 14365 deems that it is the policy of the
United States to achieve a minimally burdensome national policy framework for
AI. The Executive Order directed the establishment of an AI Litigation Task
Force for the purpose of evaluating and challenging state laws inconsistent
with this policy and restricted funding to the states under the federal Broadband
Equity Access and Development Program (
Exec.
Order 14365
).
There is no anticipated fiscal impact
to the state General Fund associated with this legislation.
Provisions
1.
Requires
the Director of ADOA (Director) to require each budget unit to:
a)
identify opportunities to implement AI system solutions that reduce
administrative burdens;
b)
eliminate regulations that unnecessarily restrict AI system innovation;
c)
streamline procurement processes to enable the adoption of AI systems;
d)
establish enterprise AI system governance to ensure consistent,
efficient and appropriate use of AI to better achieve internal and external
objectives;
e)
review existing regulations affecting AI system development to identify
instances of regulatory capture or negative impacts on competition and
innovation; and
f)
modify
or eliminate any AI system regulation that creates unreasonable barriers to AI
system innovation.
2.
Requires
each budget unit, in implementing an AI system, to:
a)
focus on reducing costs and improving service delivery;
b)
use existing staff and resources without creating new administrative
bodies; and
c)
not
create new regulatory requirements that are solely applicable to private sector
AI system development.
3.
Prohibits
a budget unit from adopting rules specifically regulating AI systems or
computational resources unless the:
a)
Legislature provides an express statutory delegation to address a
specific harm;
b)
rule is the least restrictive means available to achieve the statutory
objective;
c)
benefit of the rule clearly outweighs impacts on innovation and
competition; and
d)
rule
does not create a barrier to market entry or an advantage to an incumbent firm.
4.
Requires the Director to submit a report regarding the implementation
and effectiveness of AI systems by budget units during the preceding fiscal
year to the President of Senate, Speaker of the House of Representatives and
the Governor, by December 1 of each year.
5.
Requires
the report to:
a)
identify each budget unit that implemented an AI system during the
preceding fiscal year;
b)
describe the function or administrative process to which the AI system
was applied;
c)
include, as practicable, quantitative and qualitative measures of
government efficiency resulting from the AI system for reductions in processing
time or backlogs, cost savings or cost avoidance and improvements in service
delivery or output quality; and
d)
identify
any regulatory, procurement or operational barriers that were encountered and
that limited the effective use of the AI system.
6.
Requires a copy of the report to be submitted to the Secretary of State.
7.
Defines
AI system
as any machine learning-based system that can,
for a given set of objectives, generate outputs such as content, predictions,
recommendations or decisions influencing physical or virtual environments.
8.
Defines
computational resource
as any tool, technology, system or
infrastructure, whether digital, analog or quantum, that facilitates
computation, data processing, storage, transmission, manipulation or use of
information.
9.
Defines
content
as any digitally generated, manipulated or
synthesized text, image, audio or video recording, three-dimensional model or
interactive element or any combination thereof that can be produced as output
by an AI system.
10.
Becomes
effective on the general effective date.
Amendments Adopted by
Committee of the Whole
1.
Removes the requirement that the Legislature approve any emergency or
temporary rule that specifically regulates AI systems or computational
resources.
2.
Makes conforming changes.
House Action
���������������������������������������������������������
Senate
Action
AII����������������� 2/05/26����� DPA��� 4-2-0-1�������������� ATT���������������� 3/17/26����� DP������������� 6-2-2
3
rd
Read��������� 2/25/26����������������� 31-22-7
Prepared by Senate Research
April 14, 2026
LMM/KS/ci
Current Bill Text
Read the full stored bill text
HB2592 - 572R - S Ver
Senate Engrossed
House Bill
artificial
intelligence; state agencies; rules
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2592
AN
ACT
amending title 18, chapter 1, article 1,
Arizona Revised Statutes, by adding section 18-105; relating to
government information technology.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 18, chapter 1, article 1,
Arizona Revised Statutes, is amended by adding section 18-105, to read:
START_STATUTE
18-105.
Regulation of artificial
intelligence systems; budget units; legislative ratification of rules; annual
report; definitions
A. The director shall require each
budget unit to do all of the following:
1. Identify opportunities to
implement artificial intelligence system solutions that reduce administrative
burdens.
2. Eliminate regulations that
unnecessarily restrict artificial intelligence system innovation.
3. Streamline procurement processes
to enable the adoption of artificial intelligence systems.
4. Establish enterprise artificial
intelligence system governance to ensure consistent, efficient and appropriate
use of artificial intelligence to better achieve internal and external
objectives.
5. review existing regulations
affecting artificial intelligence system development to identify instances of
regulatory capture or negative impacts on competition and innovation.
6. Modify or eliminate any artificial
intelligence system regulation that creates unreasonable barriers to artificial
intelligence system innovation.
B. In implementing an artificial
intelligence system, each budget unit shall:
1. Focus on reducing costs and
improving service delivery.
2. Not create new regulatory
requirements that are solely applicable to private sector artificial
intelligence system development.
3. Use existing staff and resources
without creating new administrative bodies.
C. A budget unit may not adopt rules
specifically regulating artificial intelligence systems or computational
resources unless all of the following apply:
1. The legislature provides an
express statutory delegation to address a specific harm.
2. The rule is the least restrictive
means available to achieve the statutory objective.
3. The benefit of the rule clearly
OUTWEIGHS impacts on innovation and competition.
4. The rule does not create a barrier
to market entry or an advantage to an incumbent firm.
d. ON OR BEFORE DECEMBER 1 OF EACH
YEAR, THE DIRECTOR SHALL SUBMIT A REPORT TO THE PRESIDENT OF THE SENATE, THE
SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE GOVERNOR, and shall submit a
copy to the secretary of state, REGARDING THE IMPLEMENTATION AND EFFECTIVENESS
OF ARTIFICIAL INTELLIGENCE SYSTEMS BY BUDGET UNITS DURING THE PRECEDING FISCAL
YEAR.� THE REPORT must do all of the following:
1. IDENTIFY EACH BUDGET UNIT THAT
IMPLEMENTED AN ARTIFICIAL INTELLIGENCE SYSTEM DURING THE PRECEDING FISCAL YEAR.
2. DESCRIBE THE FUNCTION OR
ADMINISTRATIVE PROCESS TO WHICH THE ARTIFICIAL INTELLIGENCE SYSTEM WAS APPLIED.
3. Include, tO THE EXTENT
PRACTICABLE, QUANTITATIVE AND QUALITATIVE MEASURES OF GOVERNMENT EFFICIENCY
resulting from the artificial intelligence system for all of the following:
(
a
) REDUCTIONS
IN PROCESSING TIME OR BACKLOGS.
(
b
) COST
SAVINGS OR COST AVOIDANCE.
(
c
) IMPROVEMENTS
IN SERVICE DELIVERY OR OUTPUT QUALITY.
4. IDENTIFY ANY REGULATORY,
PROCUREMENT OR OPERATIONAL BARRIERS that were ENCOUNTERED and THAT LIMITED THE
EFFECTIVE USE OF the ARTIFICIAL INTELLIGENCE SYSTEM.
e. For the purposes of this section:
1. "Artificial intelligence
system" means any machine learning-based system that can, for a
given set of objectives, generate outputs such as content, predictions,
recommendations or decisions influencing physical or virtual environments.
2. "Computational resource"
means any tool, technology, system or infrastructure, whether digital, analog
or quantum, that facilitates computation, data processing, storage,
transmission, manipulation or use of information.
3. "Content" means any
digitally generated, manipulated or synthesized text, image, audio recording,
video recording, three-dimensional model or interactive element, or any
combination of these, that can be produced as output by an artificial
intelligence system.
END_STATUTE