cybersecurity; data encryption; pilot program

HB 2736 establishes a five-year pilot program requiring Arizona state agencies to implement and upgrade data encryption systems meeting strict security criteria. It directly affects the Secretary of State, Department of Revenue, Department of Administration, and the Legislature, each implementing the system in sequential fiscal years starting in 2026. The bill mandates that encryption systems must be U.S.-owned, quantum-proof, use U.S. patents, allow key resets without third-party access, and include detailed audit trails. The Department of Administration must report annually on progress and security, with a final evaluation due in 2031, and the program expires June 30, 2032.