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HB2592 • 2026

artificial intelligence; state agencies; rules

HB2592 - artificial intelligence; state agencies; rules

Budget Technology
Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor
Justin Wilmeth
Last action
2026-06-19
Official status
Governor vetoed
Effective date
Not listed

Plain English Breakdown

The official status indicates the governor vetoed this bill; it has not become law unless the legislature overrides the veto.

HB2592: Rules for State Agencies Using Artificial Intelligence

This bill requires state agencies to find ways to use AI tools, limits new rules on private companies using AI unless the legislature approves them, and asks the director of technology to report yearly on how well these systems work.

What This Bill Does

  • Requires each budget unit to identify opportunities where artificial intelligence can reduce administrative burdens.
  • Directs agencies to remove regulations that unnecessarily restrict innovation in artificial intelligence systems.
  • Limits state agencies from creating new rules for private sector AI unless the legislature approves them and they meet strict tests.
  • Mandates an annual report listing which units used AI, how it was applied, and what cost or time savings resulted if practical to collect.
  • Requires agencies to streamline their buying processes to make adopting artificial intelligence systems easier.

Who It Names or Affects

  • State budget units
  • The director of government information technology

Terms To Know

Artificial intelligence system
A machine learning-based tool that can create content, make predictions, or give recommendations.
Budget unit
Any state agency or department required to follow these rules under the bill.
Computational resource
Tools or technology used to process, store, send, or use information.

Limits and Unknowns

  • The governor vetoed this bill on June 19, 2026, so it did not become law unless lawmakers overrode the veto.
  • The report requires data to be included only if it is practical to collect.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Proposed

Plain English: This amendment requires Arizona state agencies to use artificial intelligence to cut costs and reduce paperwork while strictly limiting their ability to create new rules that could hurt AI innovation.

  • State agencies must find ways to use AI tools to lower administrative work, streamline buying processes, and improve services without creating new government departments.
  • Agencies are forbidden from making new regulations specifically for private companies developing AI unless the legislature explicitly allows it to fix a specific harm.
  • Any temporary or emergency rules about AI systems must be voted on by the full legislature within 30 days of each session starting, and they need only a simple majority vote to stay in effect.
  • The Director must submit an annual report listing which agencies used AI, how it improved efficiency or saved money, and any barriers that stopped them from using these tools effectively.
  • The text does not specify who exactly holds the title of 'Director' responsible for enforcing these rules.
  • It is unclear what specific actions agencies must take if they find existing regulations are restricting AI innovation, other than to review and modify them.
Adopted

Plain English: This amendment removes the rule that required state lawmakers to vote on and approve emergency or temporary rules about artificial intelligence.

  • State agencies can now create emergency or temporary rules for AI systems without waiting for legislative approval.
  • The bill no longer requires a special floor vote within the first thirty days of a session to keep these temporary AI rules in effect.

Bill History

  1. 2026-06-10 V

    Governor vetoed

  2. 2026-06-09 House

    House passed

  3. 2026-06-09 House

    House passed

  4. 2026-04-21 House

    House minority caucus

  5. 2026-04-14 House

    Transmitted to House

  6. 2026-04-14 Senate

    Senate third read passed

  7. 2026-04-14 Senate

    Senate committee of the whole

  8. 2026-04-07 Senate

    Senate minority caucus

  9. 2026-04-07 Senate

    Senate majority caucus

  10. 2026-04-07 Senate

    Senate consent calendar

  11. 2026-03-10 Senate

    Senate second read

  12. 2026-03-09 Senate

    Senate Rules: PFC

  13. 2026-03-09 Senate

    Senate Appropriations, Transportation and Technology: DP

  14. 2026-03-09 Senate

    Senate first read

  15. 2026-02-26 Senate

    Transmitted to Senate

  16. 2026-02-25 House

    House third read passed

  17. 2026-02-24 House

    House committee of the whole

  18. 2026-02-10 House

    House minority caucus

  19. 2026-02-10 House

    House majority caucus

  20. 2026-01-26 House

    House second read

  21. 2026-01-22 House

    House Rules: C&P

  22. 2026-01-22 House

    House Artificial Intelligence & Innovation: DPA

  23. 2026-01-22 House

    House first read

Official Summary Text

HB2592 - artificial intelligence; state agencies; rules

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