House Engrossed technical correction; workers' compensation; investigation (now: Arizona blockchain budget initiative; appropriation) State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HOUSE BILL 2325 AN ACT establishing the arizona blockchain budget initiative pilot PROGRAM; appropriating monies; relating to the department of ADMINISTRATION. (TEXT OF BILL BEGINS ON NEXT PAGE)
House Engrossed technical correction; workers' compensation; investigation (now: Arizona blockchain budget initiative; appropriation)
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HOUSE BILL 2325
House Engrossed
technical correction; workers' compensation; investigation
(now: Arizona blockchain budget initiative; appropriation)
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
HOUSE BILL 2325
AN ACT
establishing the arizona blockchain budget initiative pilot PROGRAM; appropriating monies; relating to the department of ADMINISTRATION.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona: Section 1. Arizona blockchain budget initiative pilot program; department of administration; requirements; reports; delayed repeal A. The Arizona blockchain budget initiative pilot program is established in the department of administration to assess the feasibility and cost-effectiveness of using a blockchain platform to record and publish the budget data of selected agencies in this state. B. The department shall: 1. Select up to three agencies to participate in the pilot program. In determining which agencies to select, the department shall consider: (a) The agency's overall budget size and complexity. (b) The agency's technical readiness and willingness to collaborate with the department of administration. (c) The public interest in the agency's expenditures. 2. Procure a blockchain platform that is capable of securely publishing budget allocations and expenditures. The platform must: (a) Allow real-time or near real-time publication and verification of data. (b) Protect confidential information and comply with all applicable state and federal confidentiality and privacy laws. (c) Except as provided in subsection E of this section, be accessible to the public. 3. Require each agency that participates in the pilot program to record at least the following information on the blockchain platform: (a) The budget appropriations enacted into law for each fiscal year. (b) Actual expenditures, including vendor payments and operational costs, that do not violate federal or state confidentiality requirements. (c) The frequency for updating budget data, which must occur at least monthly. 4. 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. 5. Use the monies appropriated for the purposes of this act to develop or procure technology, conduct staff training and implement any necessary infrastructure. The department may pursue federal grants or public-private partnerships to support the pilot program if those funding sources comply with applicable state law. C. On or before December 31, 2026, the department of administration shall submit a preliminary report regarding the pilot program to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The report shall include: 1. A description of the pilot program's implementation status, including any technical challenges encountered. 2. The estimated costs, expenditures to date and any adjustments needed. 3. Any preliminary findings regarding the effectiveness of blockchain technology for budget transparency. D. On or before December 31, 2028, the department of administration shall submit a final report regarding the pilot program to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The report shall include: 1. An evaluation of the pilot program's effectiveness in increasing transparency and public access to budget data. 2. A cost-benefit analysis comparing the blockchain platform to existing financial reporting methods. 3. Recommendations on whether to expand, modify or discontinue the use of blockchain technology for other agencies in this state. E. This section does not require publication of data that is classified as confidential under federal or state law. The department of administration and each participating agency shall ensure that personal identifying information and any legally protected information is redacted or otherwise excluded from the publicly accessible blockchain platform. F. This act is repealed from and after December 31, 2029. Sec. 2. Appropriation; department of administration; Arizona blockchain budget initiative pilot program; exemption A. The sum of $1,000,000 is appropriated from the state general fund in fiscal year 2025-2026 to the department of administration for the Arizona blockchain budget initiative pilot program. B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Arizona blockchain budget initiative pilot program; department of administration; requirements; reports; delayed repeal
A. The Arizona blockchain budget initiative pilot program is established in the department of administration to assess the feasibility and cost-effectiveness of using a blockchain platform to record and publish the budget data of selected agencies in this state.
B. The department shall:
1. Select up to three agencies to participate in the pilot program. In determining which agencies to select, the department shall consider:
(a) The agency's overall budget size and complexity.
(b) The agency's technical readiness and willingness to collaborate with the department of administration.
(c) The public interest in the agency's expenditures.
2. Procure a blockchain platform that is capable of securely publishing budget allocations and expenditures. The platform must:
(a) Allow real-time or near real-time publication and verification of data.
(b) Protect confidential information and comply with all applicable state and federal confidentiality and privacy laws.
(c) Except as provided in subsection E of this section, be accessible to the public.
3. Require each agency that participates in the pilot program to record at least the following information on the blockchain platform:
(a) The budget appropriations enacted into law for each fiscal year.
(b) Actual expenditures, including vendor payments and operational costs, that do not violate federal or state confidentiality requirements.
(c) The frequency for updating budget data, which must occur at least monthly.
4. 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.
5. Use the monies appropriated for the purposes of this act to develop or procure technology, conduct staff training and implement any necessary infrastructure. The department may pursue federal grants or public-private partnerships to support the pilot program if those funding sources comply with applicable state law.
C. On or before December 31, 2026, the department of administration shall submit a preliminary report regarding the pilot program to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The report shall include:
1. A description of the pilot program's implementation status, including any technical challenges encountered.
2. The estimated costs, expenditures to date and any adjustments needed.
3. Any preliminary findings regarding the effectiveness of blockchain technology for budget transparency.
D. On or before December 31, 2028, the department of administration shall submit a final report regarding the pilot program to the governor, the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The report shall include:
1. An evaluation of the pilot program's effectiveness in increasing transparency and public access to budget data.
2. A cost-benefit analysis comparing the blockchain platform to existing financial reporting methods.
3. Recommendations on whether to expand, modify or discontinue the use of blockchain technology for other agencies in this state.
E. This section does not require publication of data that is classified as confidential under federal or state law. The department of administration and each participating agency shall ensure that personal identifying information and any legally protected information is redacted or otherwise excluded from the publicly accessible blockchain platform.
F. This act is repealed from and after December 31, 2029.
Sec. 2. Appropriation; department of administration; Arizona blockchain budget initiative pilot program; exemption
A. The sum of $1,000,000 is appropriated from the state general fund in fiscal year 2025-2026 to the department of administration for the Arizona blockchain budget initiative pilot program.
B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.