Arizona Digital Bill of Rights
AN ACT
PROHIBITING THE USE OF CERTAIN AUTOMATED SURVEILLANCE SYSTEMS AND PROFILING TECHNOLOGIES BY GOVERNMENT ENTITIES AND LAW ENFORCEMENT; PROHIBITING THE PROCUREMENT OF SUCH SURVEILLANCE FROM PRIVATE ENTITIES; PROHIBITING GOVERNMENT CONTRACTORS FROM USING DISCRIMINATORY AUTOMATED SYSTEMS; PROVIDING FOR ENFORCEMENT AND REMEDIES; AMENDING TITLE 41, ARIZONA REVISED STATUTES, BY ADDING A NEW CHAPTER.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, Arizona Revised Statutes, is amended by adding a new chapter, to be designated as chapter 62, articles 1 through 6, to read:
CHAPTER 62. REGULATION OF AUTOMATED DECISION SYSTEMS AND SURVEILLANCE
ARTICLE 1. GENERAL PROVISIONS
41-6201. Definitions
In this chapter, unless the context otherwise requires:
1. "Algorithmic discrimination" means any condition in which an automated decision system contributes to unjustified differential treatment or impacts disfavoring people based on their actual or perceived race, color, ethnicity, national origin, sex, gender, gender identity, sexual orientation, religion, age, veteran status or disability status.
2. "Algorithmic impact assessment" means a detailed public report meeting the requirements of section 41-6210.
3. "Automated decision system" or "ADS" means any computational process, including one derived from machine learning, statistics, predictive analytics or other data processing or artificial intelligence techniques, that makes a decision or facilitates human decision-making that significantly impacts individuals, including systems used for screening, scoring, ranking, categorizing, predicting or profiling. This includes the system's data, model and any associated user interface.
4. "Commandeered system" means any covered surveillance system whose data, functionality, or operational control could be legally compelled, technically accessed, or otherwise obtained by any entity not subject to the prohibitions and requirements of this chapter.
5. "Covered surveillance system" means any system, technology or service capable of, or used for, conducting surveillance as defined in paragraph 10, including facial recognition technology, predictive policing systems, real-time remote biometric surveillance systems, social media monitoring tools and location tracking systems.
6. "Covered government contractor" means any private entity that enters into a contract, grant or cooperative agreement with a state or local government agency in this state for the provision of any goods or services, where the performance of that contract involves the use of an automated decision system that impacts Arizona residents.
7. "Data broker" means a business that knowingly collects and sells or licenses to third parties the personal information of an individual with whom the business does not have a direct relationship.
8. "Facial recognition technology" means an automated or semi-automated process that assists in identifying or verifying an individual based on the physical characteristics of an individual’s face.
9. "Law enforcement agency" means any agency of the state or a political subdivision that is charged with the prevention, detection or investigation of crime.
10. "Predictive policing system" means any automated decision system that uses historical data to attempt to predict or infer where future crimes may occur, the individuals or groups likely to be involved or the perpetrators of past crimes.
11. "Private entity" means any individual, partnership, corporation, limited liability company, association or other group, however organized, that is not a government entity.
12. "Real-time remote biometric surveillance system" means any technology capable of capturing, identifying or analyzing biometric data, including facial, gait, voice or emotion recognition, from individuals at a distance, in a persistent or ongoing manner, without their immediate knowledge or consent.
13. "Social media monitoring" means the systematic tracking, collecting and analysis of data from social media platforms to identify individuals, infer associations, analyze sentiment, predict behavior or assess risk, using automated means.
14. "Surveillance" means the monitoring, tracking, observing, identifying, listening to, recording or analyzing an individual's or group's activities, communications, movements, associations or biometric identifiers, with or without the individual's knowledge.
15. "Significant impact" means a decision or action that results in the denial or substantial alteration of an individual's access to or terms of:
(a) Employment, compensation or evaluation.
(b) Education.
(c) Housing or lodging.
(d) Credit, lending or insurance.
(e) Healthcare services.
(f) Essential government services or benefits.
(g) The criminal justice system.
(h) Legal rights or privileges.
ARTICLE 2. PROHIBITIONS ON CERTAIN SURVEILLANCE TECHNOLOGIES
41-6202. Prohibition on government use of certain surveillance
A. Notwithstanding any other law, no state or local government agency, including any law enforcement agency, may obtain, retain, access or use:
1. Any covered surveillance system.
2. Any information derived from such a system.
B. This prohibition applies regardless of whether the technology or information is provided by a government entity, a private entity or as part of a cooperative or joint agency agreement.
41-6203. Prohibition on procurement from private entities
A. No state or local government agency may contract with or otherwise procure from a private entity or data broker:
1. Any covered surveillance system.
2. Any service that includes the use of such a system.
3. Any information derived from such a system.
41-6204. Prohibition on commandeerable systems
A. No state or local government agency may procure, install, or use any covered surveillance system if that system is, by design or operation, a commandeered system. A system is presumed to be a commandeered system if:
1. The system’s data is stored, processed, or accessible on servers, networks, or infrastructure owned, operated, or controlled by an entity not subject to this chapter, including out-of-state or federal entities.
2. The system’s vendor, manufacturer, or service provider retains any technical capability, backdoor access, legal right, or contractual right to access the system's data, controls, or feeds.
3. The system’s technical architecture could allow it to be remotely operated, updated, or accessed by any entity other than the specific Arizona government agency authorized to use it under the exceptions in article 4.
B. CERTIFICATION REQUIREMENT. Any vendor proposing to supply a covered surveillance system permitted under article 4 must provide a sworn certification, under penalty of perjury, that the system is not and cannot become a commandeered system. This certification must include:
1. A complete technical description of all data flows, access controls, and network dependencies.
2. A legal affidavit stating that no third party, including federal agencies, has any current or future contractual, legal, or technical right to access the system.
3. A binding warranty that the system will be rendered permanently inoperable if any attempt is made to compel access by an unauthorized entity.
C. TECHNICAL SAFEGUARDS. Systems permitted under article 4 must be air-gapped from external networks to the maximum extent feasible and must employ end-to-end encryption with keys controlled solely by the using Arizona agency. Systems must be technically incapable of receiving remote commands or updates without physical, on-site access by authorized agency personnel.
D. PENALTY FOR VIOLATION. Any procurement of a commandeered system in violation of this section is void. The contracting agency shall immediately terminate the contract, and the vendor shall be permanently barred from all procurement with the state of Arizona and any political subdivision. The attorney general shall pursue treble damages for any public funds expended.
41-6205. No waiver by agreement
A government agency may not waive the application of this article through any contract, terms of service, agreement or other arrangement.
ARTICLE 3. PROHIBITION ON PROXY SURVEILLANCE
41-6206. Prohibition on requesting surveillance by private entities
No state or local government agency, officer or employee may request, encourage or incentivize any private entity to:
1. Use a covered surveillance system on behalf of the agency.
2. Share with the agency any data collected or derived from such a system.
ARTICLE 4. EXCEPTIONS AND LIMITATIONS
41-6207. Exceptions
The prohibitions under articles 2 and 3 do not apply to:
1. Surveillance conducted pursuant to a warrant based on probable cause issued by a court of competent jurisdiction, provided such surveillance is limited to the specific person, place and time authorized by the warrant.
2. The use of automated license plate readers for the sole purpose of identifying vehicles associated with a missing person, an AMBER alert or a specific and active law enforcement investigation where a warrant has been issued.
3. Security cameras or systems used exclusively for documenting and securing the physical perimeter of a public building or facility, provided such systems do not incorporate facial recognition, biometric analysis or predictive analytics and are not connected to any external network.
41-6208. Necessity requirement for permitted use
A. A state or local government agency may not install, purchase, activate or otherwise procure any covered surveillance system, even if otherwise permitted under section 41-6207, unless the agency head or their designee makes a written, sworn finding that there is no other reasonable and historically effective means available to achieve the specific, time-limited objective.
B. In making the finding required by subsection A, the agency must specifically consider and exhaust traditional, non-surveillance investigative methods, including but not limited to:
1. Public information requests and community outreach.
2. Publicly disseminating photographs, descriptions, and information regarding an endangered person or a fugitive with an active warrant to enlist public vigilance and tips.
3. Physical surveillance by law enforcement personnel.
4. Witness interviews and forensic evidence collection.
C. The written finding must be filed with the court that issued the warrant authorizing the surveillance, or in the case of an AMBER alert or missing person investigation, with the attorney general's office, prior to any installation, purchase, or activation of the covered surveillance system. The finding is a public record.
41-6209. Technical configuration for data minimization
A. Any covered surveillance system whose use is permitted under section 41-6207 must be configured, to the maximum extent technically feasible, to avoid the collection or retention of data that is irrelevant to the specific search or investigation authorized by the warrant or other legal exception.
B. Required technical configurations include, but are not limited to:
1. Systems must be programmed to automatically and immediately discard, delete, or block from being recorded any data that does not match the specific search parameters (e.g., a specific license plate, facial biometric, or vehicle description).
2. Systems must operate on a "positive match only" basis where technically possible, meaning the system processes data in real-time to check for a match against a single, authorized query and does not retain data from non-matching subjects.
3. Where immediate technical deletion is not feasible, systems must be configured to retain non-matching data for the shortest period technically possible, not to exceed twenty-four hours, after which it must be automatically and irreversibly purged.
C. The configuration requirements of this section are a mandatory condition for the lawful use of any system under section 41-6207. Use of a system not configured in compliance with this section is prohibited.
41-6210. Reporting requirements
Any agency that invokes an exception under section 41-6207 shall, within thirty days, file a public report with the legislature and the attorney general detailing the nature of the surveillance, the legal justification, the warrant number, if applicable, a description of the system's data minimization configuration, the vendor’s certification under section 41-6204, and the data collected and retained.
ARTICLE 5. NON-DISCRIMINATION IN GOVERNMENT CONTRACTING AND AUTOMATED SYSTEMS
41-6211. Prohibition on algorithmic discrimination by government contractors
A. Contractual requirement. It is an essential term and condition of every contract, grant or agreement entered into by an Arizona state or local government agency with a covered government contractor that the contractor shall not use any automated decision system that results in algorithmic discrimination in the performance of that contract.
B. Due diligence and impact assessment requirement. Before the deployment or use of any ADS in the performance of a government contract, a covered government contractor must:
1. Conduct a statistically rigorous disparate impact analysis across all protected classes listed in section 41-6201, paragraph 1.
2. Complete and provide to the contracting agency a public algorithmic impact assessment that includes:
(a) A plain language description of the ADS's purpose and intended use cases.
(b) A description of the data inputs, their sources and steps taken to assess and mitigate bias in training data.
(c) The results of the disparate impact analysis.
(d) A description of the measures taken to mitigate the risk of algorithmic discrimination, including ongoing monitoring plans.
(e) The rights of individuals to contest adverse automated decisions and receive human review.
3. Certify under penalty of perjury that, to the best of its knowledge after reasonable inquiry, the ADS does not result in algorithmic discrimination.
C. Annual recertification and auditing. The contractor must annually recertify compliance and submit to independent, third-party algorithmic audits on request by the contracting agency or the attorney general. The costs of such audits may be borne by the contractor.
D. Remedies for violation. A violation of this section constitutes a material breach of contract, subject to:
1. Immediate termination of the contract.
2. Disgorgement of all profits related to the noncompliant work.
3. Ineligibility to bid on or receive new state contracts for a period of three years.
4. Liability for all damages, attorney fees and costs incurred by the agency or affected individuals.
41-6212. Public agency duty to prevent discriminatory procurement
A. No Arizona state or local agency may procure, continue to use or renew a contract for an ADS from a covered government contractor unless the contractor is in full compliance with section 41-6211.
B. Agencies must designate an algorithmic systems compliance officer responsible for reviewing algorithmic impact assessments and managing contractor compliance.
C. All algorithmic impact assessments and related certifications shall be made publicly available on the agency's website in an accessible, searchable format.
41-6213. Prohibition on circumvention through design or proxy systems
A. No covered government contractor shall design, configure or deploy an ADS with the intent or knowledge that its primary or reasonably foreseeable use will be to circumvent federal or state anti-discrimination laws, including the Arizona Civil Rights Act, Titles VI and VII of the Civil Rights Act of 1964, the Fair Housing Act and the Americans with Disabilities Act.
B. This prohibition includes systems designed to:
1. "Screen out" applicants or individuals from protected classes under a pretext of neutral factors, including using "cultural fit" analytics, voice tone analysis or social media "friendship" networks in hiring.
2. Segment or steer populations for differential treatment in housing, credit or advertising, including digital redlining in mortgage lending algorithms.
3. "Risk-score" individuals in ways that perpetuate historical biases, including in criminal justice, healthcare rationing or child welfare assessments.
C. A finding by a court or administrative body that an ADS has resulted in a disparate impact on a protected class creates a rebuttable presumption of a violation of this section.
ARTICLE 6. ENFORCEMENT AND REMEDIES
41-6214. Enforcement by the attorney general
The attorney general shall enforce this chapter. Violations by any entity, government, private or contractor, are deemed an unfair or deceptive practice under the Arizona Consumer Fraud Act and a violation of the Arizona Civil Rights Act. The attorney general may investigate, issue subpoenas and bring civil action seeking all remedies available under those Acts, plus civil penalties of up to $50,000 per violation.
41-6215. Private right of action
A. Any individual or class of individuals aggrieved by a violation of this chapter by any entity, government, private or contractor, may bring a civil action for:
1. Actual damages or statutory damages of $10,000 per violation, whichever is greater.
2. Punitive damages where the violation is willful or reckless.
3. Injunctive and declaratory relief, including an order to cease using the noncompliant ADS, to redesign the system or to provide affected individuals with appropriate benefits or services that were wrongfully denied.
4. Reasonable attorney fees, expert witness fees and costs.
B. A prevailing plaintiff is entitled to a rebuttable presumption of emotional distress damages arising from a violation involving algorithmic discrimination.
41-6216. Whistleblower protections
Any employee of a covered government contractor or government agency who reports in good faith a suspected violation of this chapter to the attorney general, their employer or the media is entitled to the protections and remedies of the Arizona Employment Protection Act, including protection from retaliation, back pay and reinstatement.
41-6217. Exclusions
This article does not apply to:
1. ADS used solely for routine administrative, clerical or operational tasks that do not make or inform decisions with a significant impact, including scheduling, inventory management or basic IT diagnostics.
2. Search engines or recommendation engines used for general information retrieval, unless they are specifically incorporated into a decision-making process with a significant impact.
3. Tools used to detect technical fraud, including credit card transaction fraud, if they are not used to make determinations about an individual's character, creditworthiness or risk outside of the specific fraudulent transaction.
Section 2. Conforming amendments
The director of the Arizona department of administration shall, within one hundred eighty days of the general effective date of this act, amend the Arizona procurement code, title 41, chapter 23, and associated regulations to incorporate the requirements of this chapter into all standard contract language and vendor qualification processes.
Section 3. Staggered effective date
A. Immediate prohibition on surveillance. Articles 2, 3 and 4 of this act, relating to prohibitions on government use and procurement of covered surveillance systems, are effective on the governor's signature.
B. General effective date. All other provisions of this act, including articles 1, 5 and 6, and section 2, conforming amendments, are effective from and after July 1, 2028.
Section 4. Severability
If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
