HB 2325 Initials PB Page 1 Caucus & COW ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session House: APPROP DPA/SE 11-3-3-1 HB 2325: technical correction; workers' compensation; investigation S/E: Arizona blockchain budget initiative; appropriation Sponsor: Representative Weninger, LD 13 Caucus & COW Summary of the Strike Everything Amendment to HB 2325 Overview Establishes, as session law, the Arizona Blockchain Budget Initiative Pilot Program (Pilot Program). History Blockchain is a cryptographically secured distributed ledger that records transactions chronologically, permanently and unalterably. Blockchain technology is distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth. Statute provides that a signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature. A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record (A.R.S. § 44-7061). Provisions 1. Creates, within the Arizona Department of Administration (ADOA), the Arizona Blockchain Budget Initiative Pilot Program to assess the feasibility and cost-effectiveness of using a blockchain platform to record and publish the budget data of selected agencies. (Sec. 1) 2. Instructs ADOA to: a) select up to three agencies to participate in the Pilot Program and provides factors to consider in determining the agencies; b) procure a blockchain platform that is capable of securely publishing budget allocation and expenditures and includes platform requirements; c) require each agency participating in the Pilot Program to record specified information on the blockchain platform; d) issue guidelines and provide training to participating agencies on data security, privacy compliance and proper methods for recording and verifying data on the blockchain platform; and ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2325 Initials PB Page 2 Caucus & COW e) use the appropriated monies to develop or procure technology, conduct staff training and implement any necessary infrastructure. (Sec. 1) 3. Authorizes ADOA to pursue federal grants or public-private partnerships to support the Pilot Program if those funding sources comply with applicable state law. (Sec. 1) 4. Requires ADOA, by December 31, 2026, to submit a preliminary report and, by December 31, 2028, to submit a final report regarding the Pilot Program to the Executive and the Legislature and provide a copy to the Secretary of State. (Sec. 1) 5. Outlines information that must be included in the preliminary and final report. (Sec. 1) 6. Specifies the Pilot Program requirements do not require publication of confidential data. (Sec. 1) 7. Requires ADOA and participating agencies to ensure that personal identifying information and any legally protected information is redacted or excluded from the publicly accessible blockchain platform. (Sec. 1) 8. Repeals the Pilot Program on December 31, 2029. (Sec. 1) 9. Appropriates $1,000,000 from the General Fund in FY 2026 to ADOA for the Pilot Program. (Sec. 2) 10. Exempts the appropriation from lapsing. (Sec. 2)