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REFERENCE TITLE: information technology; title 18 |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HB 2647 |
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Introduced by Representative Stevens
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AN ACT
amending section 8‑1192, Arizona Revised Statutes; repealing title 12, chapter 6, article 14, Arizona Revised Statutes; amending the Arizona Revised Statutes by adding title 18; providing for transferring and renumbering; amending sections 18-104 and 18‑105, Arizona Revised Statutes; amending title 18, chapter 2, article 1, Arizona Revised Statutes, by adding section 18-204; amending title 18, chapter 2, Arizona Revised Statutes, by adding articles 2, 3 and 4; amending section 18-443, Arizona Revised Statutes, as transferred and renumbered; amending title 18, chapter 4, article 3, Arizona Revised Statutes, by adding sections 18-445 and 18-446; amending sections 18-501, 18‑502, 18‑504, 18-541, 18-542, 18-543 and 18-544, Arizona Revised Statutes, as transferred and renumbered; amending sections 28-2065, 33‑1701, 36‑3802, 38-543, 38-544, 41-121, 41-352, 41‑1277, 41‑1504, 41‑2513, 41‑3016.06, 44‑7011, 44‑7041, 44‑7042 and 47-9525, Arizona Revised Statutes; amending laws 2006, chapter 232, section 3; relating to information technology.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 8-1192, Arizona Revised Statutes, is amended to read:
8-1192. Powers and duties
A. The early childhood development and health board shall:
1. Conduct a biannual assessment of existing early childhood development and health programs in the state of Arizona, including an analysis of any unmet early childhood development and health needs of Arizona children; utilization of available federal, state and private funds; suggestions for improved program coordination; and outcomes for children and families. The board shall submit a report of its findings and recommendations to the governor, the president of the senate and the speaker of the house of representatives on or before December 15 of every odd‑numbered year beginning in 2007 and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records. The report shall be distributed in accordance with section 41-4153 18‑203.
2. Review and approve the biannual regional needs and assets assessments prepared pursuant to section 8-1161.
3. Administer the distribution of funds monies from the early childhood development and health fund established by section 8-1181 for programs and grants in accordance with the provisions of sections 8-1161 and 8-1173.
4. Prepare an annual report describing the activities of the board, including a description of funds monies distributed and spent pursuant to sections 8‑1161, 8-1173 and 8-1192 and a description of the outcomes for children and families achieved by the board, the regional partnership councils, and the grant recipients. The board shall submit the report to the governor, the president of the senate and the speaker of the house of representatives on or before September 15 of each year, beginning in 2008, and shall provide a copy of this report to the secretary of state and the director of the Arizona state library, archives and public records. The report shall be distributed in accordance with section 41-4153 18‑203.
5. Solicit private funds monies from individuals, corporations and foundations to support improving quality of and access to early childhood development and health opportunities for Arizona children. Solicited funds monies shall be deposited into the private gifts account of the early childhood development and health fund pursuant to section 8-1182 and may be spent on statewide or regional grants or direct programs.
6. Keep a record of its own proceedings.
7. Adopt procedures for its meetings and elect officers.
8. Coordinate with other agencies that are involved with early childhood development and health issues.
B. The early childhood development and health board may:
1. Authorize the expenditure of funds monies from the early childhood development and health fund established by section 8-1181 for programs and services to enhance the quality of or access to early childhood development and health opportunities for Arizona children. These funds monies may be used to operate programs and services provided directly by the board, to fund statewide grant programs, or to fund regional or local grants to test innovative early childhood development and health programs.
2. Authorize the expenditure of funds monies from the grant monies and private gifts accounts for programs and services to enhance the quality of or access to early childhood development and health opportunities for Arizona children.
3. Adopt rules pursuant to title 41, chapter 6 to carry out this chapter.
4. Contract with any private party and enter into interagency and intergovernmental agreements pursuant to title 11, chapter 7, article 3 with any public agency.
5. Sue and be sued.
6. Hire staff and consultants, including legal counsel.
Sec. 2. Repeal
Title 12, chapter 6, article 14, Arizona Revised Statutes, is repealed.
Sec. 3. The Arizona Revised Statutes are amended by adding title 18, to read:
TITLE 18
INFORMATION TECHNOLOGY
CHAPTER 1
GOVERNMENT INFORMATION TECHNOLOGY
ARTICLE 1. GENERAL PROVISIONS
ARTICLE 2. INFORMATION TECHNOLOGY AUTHORIZATION COMMITTEE
ARTICLE 3. ALTERNATIVE ACCESS TO ELECTRONIC OR INFORMATION TECHNOLOGY
CHAPTER 2
NETWORK ACCESS
ARTICLE 1. ACCEPTABLE USE POLICY
ARTICLE 2. UNIFORM RESOURCE LOCATOR STANDARDS
ARTICLE 3. ENCRYPTION STANDARDS
ARTICLE 4. DATA REFERENCE STANDARDS
CHAPTER 3
GOVERNMENTAL REPORTING OF INFORMATION
ARTICLE 1. GENERAL PROVISIONS
CHAPTER 4
NETWORK SERVICES
ARTICLE 1. GENERAL PROVISIONS
ARTICLE 2. DEPARTMENT OF ADMINISTRATION
ARTICLE 3. SECRETARY OF STATE
CHAPTER 5
NETWORK SECURITY
ARTICLE 1. COMPUTER SPYWARE
ARTICLE 2. GOVERNMENT ANTI‑IDENTIFICATION PROCEDURES
ARTICLE 3. INTERNET REPRESENTATIONS
Sec. 4. Transfer and renumber
A. Title 41, chapter 32, Arizona Revised Statutes, is transferred and renumbered for placement in title 18, Arizona Revised Statutes, as added by this act, as chapter 1. Title 41, chapter 32, articles 1, 2 and 3, Arizona Revised Statutes, are transferred and renumbered for placement in title 18, chapter 1, Arizona Revised Statutes, as added by this act, as articles 1, 2 and 3, respectively. The following sections are transferred and renumbered for placement in title 18, chapter 1, article 1:
Former Sections New Sections
41‑3501.................................. 18‑101
41‑3502.................................. 18‑102
41‑3503.................................. 18‑103
41‑3504.................................. 18‑104
41‑3507.................................. 18‑105
The following section is transferred and renumbered for placement in title 18, chapter 1, article 2:
Former Section New Section
41‑3521.................................. 18‑121
The following sections are transferred and renumbered for placement in title 18, chapter 1, article 3:
Former Sections New Sections
41‑3531.................................. 18‑131
41‑3532.................................. 18‑132
B. The following sections are transferred and renumbered for placement in title 18, chapter 2, article 1:
Former Sections New Sections
41‑4151.................................. 18‑201
41‑4152.................................. 18‑202
41‑4153.................................. 18‑203
C. Title 41, chapter 46, Arizona Revised Statutes, is transferred and renumbered for placement in title 18, Arizona Revised Statutes, as added by this act, as chapter 3. Title 41, chapter 46, article 1, Arizona Revised Statutes, is transferred and renumbered for placement in title 18, chapter 3, Arizona Revised Statutes, as added by this act, as article 1. The following sections are transferred and renumbered for placement in title 18, chapter 3, article 1:
Former Sections New Sections
41‑4601.................................. 18‑301
41‑4602.................................. 18‑302
41‑4603.................................. 18‑303
41‑4604.................................. 18‑304
D. The following sections are transferred and renumbered for placement in title 18, chapter 4, article 1:
Former Sections New Sections
41‑3505.................................. 18‑401
41‑3508.................................. 18‑402
The following sections are transferred and renumbered for placement in title 18, chapter 4, article 2:
Former Sections New Sections
41‑3506.................................. 18‑421
41‑5101.................................. 18‑422
The following sections are transferred and renumbered for placement in title 18, chapter 4, article 3:
Former Sections New Sections
41‑127................................... 18‑441
41‑132................................... 18‑442
41‑134................................... 18‑443
Section 38‑542, Arizona Revised Statutes, as amended by Laws 2011, chapter 332, section 27, is transferred and renumbered for placement in title 18, chapter 4, article 3, Arizona Revised Statutes, as section 18‑444. Section 38‑542, Arizona Revised Statutes, as amended by Laws 2014, chapter 149, section 1, is transferred and renumbered for placement in title 18, chapter 4, article 3, Arizona Revised Statutes, as section 18‑444.
E. The following sections are transferred and renumbered for placement in title 18, chapter 5, article 1:
Former Sections New Sections
44‑7301.................................. 18‑501
44‑7302.................................. 18‑502
44‑7303.................................. 18‑503
44‑7304.................................. 18‑504
The following sections are transferred and renumbered for placement in title 18, chapter 5, article 2:
41‑4171.................................. 18‑521
41‑4172.................................. 18‑522
The following sections are transferred and renumbered for placement in title 18, chapter 5, article 3:
44‑7201.................................. 18‑541
44‑7202.................................. 18‑542
44‑7203.................................. 18‑543
44‑7204.................................. 18‑544
44‑7501.................................. 18‑545
Sec. 5. Heading repeal
A. The following chapter headings are repealed:
1. Title 41, chapter 39, Arizona Revised Statutes.
2. Title 41, chapter 51, Arizona Revised Statutes.
3. Title 44, chapter 29, Arizona Revised Statutes.
4. Title 44, chapter 30, Arizona Revised Statutes.
5. Title 44, chapter 32, Arizona Revised Statutes.
B. The following article headings are repealed:
1. Title 41, chapter 39, article 1, Arizona Revised Statutes.
2. Title 41, chapter 39, article 2, Arizona Revised Statutes.
3. Title 41, chapter 51, article 1, Arizona Revised Statutes.
4. Title 44, chapter 29, article 1, Arizona Revised Statutes.
5. Title 44, chapter 30, article 1, Arizona Revised Statutes.
6. Title 44, chapter 32, article 1, Arizona Revised Statutes.
Sec. 6. Section 18‑104, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑104. Powers and duties of the department; violation; classification
A. The department shall:
1. Develop, implement and maintain a coordinated statewide plan for information technology. This includes:
(a) Adopting statewide technical, coordination and security standards for information technology.
(b) Serving as statewide coordinator for information technology resources.
(c) Developing a statewide disaster recovery plan.
(d) Developing a list of approved department projects by priority category.
(e) Developing a detailed list of information technology assets that are owned, leased or employed by this state.
(f) Evaluating and either approving or disapproving budget unit information technology plans. Budget units shall submit information technology plans that include quality assurance plans and disaster recovery plans to the department each year on or before September 1. The legislative and judicial departments of state government shall submit information technology plans for information purposes.
(g) Evaluating specific information technology projects relating to the approved budget unit and statewide information technology plans. The department shall approve or reject projects with total costs of at least twenty‑five thousand dollars but not more than one million dollars and may establish conditional approval criteria, including procurement purchase authority. If the total project costs exceed one million dollars, the department shall evaluate the project and make recommendations to the committee. If the total project costs exceed five million dollars, the department shall require the budget unit to contract with an independent third party for review of and guidance on the technology approach, scope, estimated cost, timeline for completion and overall feasibility of the project before making recommendations to the committee. As part of a budget request for an information technology project that has total costs of at least twenty‑five thousand dollars, a budget unit shall indicate the status of review by the department. Projects shall not be artificially divided to avoid review by the department.
(h) Evaluating all information technology software development for budget units. A budget unit shall:
(i) Make available any software that is suitable to any other budget unit and that was developed by a third‑party developer or previously developed in-house.
(ii) Purchase commercial off‑the‑shelf software from a retail provider.
(iii) Contract with an independent third party for all new software development. The budget unit may not develop new software in-house or modify any current software product unless the software was developed before 2005.
2. Require that budget units incorporate a life-cycle analysis into the information technology planning, budgeting and procurement processes.
3. Require that budget units demonstrate expertise to carry out information technology plans, either by employing staff or contracting for outside services.
4. Monitor information technology projects that the department considers to be major or critical, including expenditure and activity reports and periodic review.
5. Temporarily suspend the expenditure of monies if the department determines that the information technology project is at risk of failing to achieve its intended results or does not comply with the requirements of this section.
6. Continuously study emergent technology and evaluate its impact on this state's system.
7. Advise each budget unit as necessary and report to the committee on an annual basis.
8. Provide to budget units information technology consulting services it deems necessary, either directly or by procuring outside consulting services.
9. Maintain all otherwise confidential information received from a budget unit pursuant to this section as confidential.
10. Provide staff support to the committee.
11. Subject to section 35‑149, accept, spend and account for grants, monies and direct payments from public or private sources and other grants of monies or property for the conduct of programs that it deems consistent with the government information technology purposes and objectives of the department.
12. Adopt rules it deems necessary or desirable to further the government information technology objectives and programs of the department.
13. Formulate policies, plans and programs to effectuate the government information technology purposes of the department.
14. Advise and make recommendations to the governor and the legislature on all matters concerning its objectives.
15. Contract and enter into interagency and intergovernmental agreements pursuant to title 11, chapter 7, article 3 with any public or private party.
16. Have an official seal that shall be judicially noticed.
17. On or before December 31, 2015, establish an interactive online directory of codes, rules, ordinances, if available electronically, and statutes to assist individuals and businesses with regulatory requirements and obligations. As provided in this paragraph, counties, municipalities and budget units shall submit information in a manner and format prescribed by the agency.
B. The department shall advise the judicial and legislative branches of state government concerning information technology.
C. The department may examine all books, papers, records and documents in the office of any budget unit and may require any state officer of the budget unit to furnish information or statements necessary to carry out this chapter.
D. The director, any member of the director's staff or any employee who knowingly divulges or makes known in any manner not permitted by law any particulars of any confidential record, document or information is guilty of a class 5 felony.
Sec. 7. Section 18‑105, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑105. Statewide information security and privacy office; duties; suspension of budget unit's information infrastructure; notification of security incidents
A. The statewide information security and privacy office is established in the department. The statewide information security and privacy office shall serve as the strategic planning, facilitation and coordination office for information technology security in this state. Individual budget units shall continue to maintain operational responsibility for information technology security.
B. The director shall appoint a statewide chief information security officer to manage the statewide information security and privacy office. The statewide chief information security officer shall report to the director pursuant to section 41‑3503 18‑103.
C. The statewide information security and privacy office shall develop, implement, maintain and ensure compliance by each budget unit with a coordinated statewide assurance plan for information security and privacy. The statewide information security and privacy office shall:
1. Direct information security and privacy protection compliance reviews with each budget unit to ensure compliance with standards and effectiveness of security assurance plans as necessary.
2. Identify information security and privacy protection risks in each budget unit and direct agencies to adopt risk mitigation strategies, methods and procedures to lessen these risks.
3. Monitor and report compliance of each budget unit with state information security and privacy protection policies, standards and procedures.
4. Coordinate statewide information security and privacy protection awareness and training programs.
5. Develop other strategies as necessary to protect this state's information technology infrastructure and the data that is stored on or transmitted by such infrastructure.
D. The statewide information security and privacy office may temporarily suspend operation of information infrastructure that is owned, leased, outsourced or shared in order to isolate the source of, or stop the spread of, an information security breach or other similar incident. A budget unit shall comply with directives to temporarily discontinue or suspend operations of information infrastructure.
E. Each budget unit and its contractors shall identify and report security incidents to the statewide information security and privacy office immediately on discovery and deploy mitigation strategies as directed.
Sec. 8. Title 18, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 18-204, to read:
18-204. State owned or leased computers; notice
The director shall require budget units to provide a notice on every state-owned or leased computer. The computer user shall accept the terms and conditions outlined in the notice before proceeding to log in to the computer system. The notice shall be substantially similar to the following:
Notice: You are accessing the state of Arizona local/wide area network. This system is for authorized users only. All equipment, systems, services and software connected to this network are intended only for the official business use, and are the property, of the state of Arizona. The state of Arizona reserves the right to audit, inspect and disclose all transactions and data sent over this medium in a manner consistent with state and federal laws. Users should have no expectation of privacy as to any communication on or information stored within the system. By using this system you expressly consent to all such auditing, inspection and disclosure. Only software approved, scanned for viruses and licensed for state of Arizona use will be permitted on this network. Data accessible via state systems cannot be used for personal or commercial use unless specifically authorized in writing by the state of Arizona. Any illegal or unauthorized use of state of Arizona equipment, systems, services or software by any person may be subject to civil or criminal prosecution under state and federal laws and may result in disciplinary action if appropriate.
Sec. 9. Title 18, chapter 2, Arizona Revised Statutes, is amended by adding articles 2, 3 and 4, to read:
Article 2. Uniform Resource Locator Standards
18-211. Public body website; domain name; definition
A. A public body that operates a website shall use the second‑level domain name.gov for that website.
B. For the purposes of this section, "public body" has the same meaning prescribed in section 38‑431.
ARTICLE 3. Encryption standards
18-221. Data encryption; minimum standard
A. The department shall require all budget units to encrypt data to provide confidential services for information that is stored or sent over a network, an intranet and the internet. Information resources that store, process or transmit sensitive information must be encrypted.
B. The department shall adopt a minimum encryption standard that meets the minimum encryption standard adopted by the United States postal service for advanced encryption and that includes a 256‑bit encryption key. Budget units shall purchase new information technology systems that meet the minimum encryption standard adopted by the department. Budget units shall establish and submit to the department a plan to upgrade systems currently in operation to meet the minimum standard that includes all of the following:
1. A timeline for the plan that is based on the feasibility for the upgrade.
2. Identification of any published exploit to the implemented encryption algorithm.
3. The associated risk to the department.
C. This section applies only to hardware and software that is not more than ten years old.
Article 4. Data Reference Standards
18-231. Data validity
The department shall use any acquired or produced data set to ensure the data validity of all data retained by this state. These produced data sets may be constructed, populated or edited only by the department. The department shall maintain and upgrade these products and provide the interface used by this state.
18-232. United States postal service
A. The department shall maintain a current copy of the United States postal service address information system carrier route product. Budget units shall use this information for address verification.
B. The department shall maintain, upgrade and provide the interface used by this state and local governments.
18-233. Interface; vital records; notification
A. The department shall maintain, upgrade and provide the interface used by this state and local governments.
B. The department shall notify the state registrar of vital records of any conflicting data. The state registrar of vital records shall mitigate any data conflict.
C. The department shall maintain, upgrade and provide the interface used by this state and local governments.
Sec. 10. Section 18‑443, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑443. Electronic database system; procedures
A. Subject to legislative appropriation or transfer of monies, the secretary of state shall develop electronic database systems for financial disclosures required under title 38, chapter 3.1, article 1 and lobbyist reporting requirements under title 41, chapter 7, article 8.1 of this title.
B. The electronic database system shall allow a county, city or town to elect to use the secretary of state's system subject to:
1. Approval of the local governing body.
2. The local governing body conforming the local governing body's financial disclosure requirement and lobbying disclosure requirements with requirements of this state.
C. This section does not require the secretary of state to provide for a system that complies with filing requirements other than those required in sections 38‑542 18-444 and 38‑543 and title 41, chapter 7, article 8.1 of this title.
Sec. 11. Title 18, chapter 4, article 3, Arizona Revised Statutes, is amended by adding sections 18-445 and 18-446, to read:
18-445 Electronic filing; statements of contributions and expenditures; political subdivisions
Subject to legislative appropriation and notwithstanding any other law, the secretary of state may develop an electronic filing system for statements, designations and reports that are required by title 16, chapter 6, article 1. This system may be used by any political subdivision that chooses to opt in to the system by giving notice to the secretary of state at least thirty days before the first report is due for a calendar year for that political subdivision pursuant to section 16-913 and that pays a fee as determined by the secretary of state. The system must comply with section 16-916.01.
18-446. Business licensing; electronic database; definitions
A. Notwithstanding any other law and subject to legislative appropriation, an agency that has approved an applicant for a license shall forward the approved application to the secretary of state, and the secretary of state shall issue the license.
B. The secretary of state shall establish and maintain an electronic database of all licenses issued by an agency that is electronically searchable by the public.
C. If an agency has approved an applicant for a license and the secretary of state has issued that license, the agency shall forward the following information for each licensee to the secretary of state to be entered into the electronic database established pursuant to subsection B of this section:
1. The licensee's name and contact information.
2. The status of the license.
3. The licensee's education and training.
D. For the purposes of this section:
1. "Agency" means any agency, department, board or commission of this state that issues a license.
2. "License" means any certificate, registration or license that is required by law and that is issued by any agency either:
(a) For the purpose of operating a business in this state.
(b) To an individual who provides a service to any person and the license is necessary in performing that service.
Sec. 12. Section 18‑501, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑501. Definitions
In this chapter
article, unless the
context otherwise requires:
1. "Advertisement" means a communication the primary purpose of which is the commercial promotion of a commercial product or service, including communication on an internet web site website that is operated for a commercial purpose.
2. "Computer software" means a sequence of instructions that is written in any programming language and that is executed on a computer and does not include a web page or data components of web pages that are not executable independently of the web page.
3. "Damage" means any significant impairment to the integrity or availability of data, computer software, a system or information.
4. "Execute" means the performance of the functions or the carrying out of the instructions of the computer software.
5. "Intentionally deceptive" means any of the following:
(a) By means of an intentionally and materially false or fraudulent statement.
(b) By means of a statement or description that intentionally omits or misrepresents material information in order to deceive an owner or operator of a computer.
(c) By means of an intentional and material failure to provide any notice to an owner or operator of a computer regarding the installation or execution of computer software in order to deceive the owner or operator.
6. "Internet"
means the global information system that is logically linked together by a
globally unique address space based on the internet protocol, or its subsequent
extensions, and that is able to support communications using the transmission
control protocol/internet protocol or internet protocol
suite, or it its subsequent extensions, or other internet
protocol compatible protocols, and that provides, uses or makes accessible,
either publicly or privately, high level services layered on the communications
and related infrastructure described in this paragraph.
7. "Owner or operator" means the owner or lessee of a computer or someone using the computer with the owner's or lessee's authorization. Owner or operator does not include any person who owns a computer before the first retail sale of the computer.
8. "Person" means any individual, partnership, corporation, limited liability company or other organization or any combination of these entities.
9. "Personally identifiable information" means any of the following with respect to an individual who is an owner or operator of a computer:
(a) First name or first initial in combination with last name.
(b) A home or other physical address, including street name.
(c) An electronic mail address.
(d) A credit or debit card number or bank account number or any password or access code associated with a credit or debit card or bank account.
(e) A social security number, tax identification number, driver license number, passport number or any other government-issued identification number.
(f) Any of the following information in a form that personally identifies an owner or operator of a computer:
(i) Account balances.
(ii) Overdraft history.
(iii) Payment history.
10. "Transmit" means to transfer, send or make available computer software, or any component of computer software, via the internet or any other medium, including local area networks of computers, any other nonwire transmission and a disk or other data storage device. Transmit does not include any action by a person providing any of the following:
(a) The internet connection, telephone connection or other means of transmission capability such as a compact disk or digital video disk through which the software was made available.
(b) The storage or hosting of the software program or an internet web page through which the software was made available.
(c) An information location tool, such as a directory, index, reference, pointer or hypertext link, through which the user of the computer located the software, unless the person receives a direct economic benefit from the execution of the software on the computer.
Sec. 13. Section 18‑502, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑502. Prohibited activities; applicability
A. It is unlawful for any person who is not an owner or operator of a computer to transmit computer software to a computer, with actual knowledge or with conscious avoidance of actual knowledge, and to use the software to do any of the following:
1. Modify, through intentionally deceptive means, settings that control any of the following:
(a) The page that appears when an owner or operator of a computer launches an internet browser or similar computer software used to access and navigate the internet.
(b) The default provider or web proxy that an owner or operator of a computer uses to access or search the internet.
(c) An owner or operator's list of bookmarks used to access web pages.
2. Collect, through intentionally deceptive means, personally identifiable information:
(a) Through the use of a keystroke logging function that records all keystrokes made by an authorized user who uses the computer and transfers that information from the computer to another person.
(b) In a manner that correlates the information with data respecting all or substantially all of the web sites websites visited by an owner or operator of the computer, other than web sites websites operated by the person collecting the information.
(c) With respect only to information described in section 44-7301 18‑501, paragraph 9, by extracting such information from the hard drive of an owner owner's or operator's computer.
3. Prevent, through intentionally deceptive means, an owner owner's or operator's reasonable efforts to block the installation or execution of, or to disable, computer software by causing software that an owner or operator of the computer has properly removed or disabled automatically to reinstall or reactivate on the computer.
4. Intentionally misrepresent that computer software will be uninstalled or disabled by an owner owner's or operator's action.
5. Through intentionally deceptive means, remove, disable or render inoperative security, antispyware or antivirus computer software installed on the computer.
6. Take control of the computer by:
(a) Accessing or using the modem or internet service for the computer for the purpose of causing damage to the computer or causing an owner or operator to incur financial charges for a service that the owner or operator of the computer has not authorized.
(b) Opening multiple, sequential, stand alone advertisements in an owner owner's or operator's internet browser without the authorization of an the owner or operator and that a reasonable computer user cannot close without turning off the computer or closing the internet browser.
7. Modify any of the following settings related to the computer's access to, or use of, the internet:
(a) Settings that protect information about an owner or operator of the computer for the purpose of stealing personally identifiable information of the owner or operator.
(b) Security settings for the purpose of causing damage to a computer.
8. Prevent an owner owner's or operator's reasonable efforts to block the installation of, or to disable, computer software, by doing either of the following:
(a) Presenting the owner or operator with an option to decline installation of computer software with knowledge that, when the option is selected, the installation nevertheless proceeds.
(b) Falsely representing that computer software has been disabled.
B. It is unlawful for any person who is not an owner or operator of a computer to do either of the following with regard to the computer:
1. Induce an owner or operator to install a computer software component on the computer by intentionally misrepresenting the extent to which installing the software is necessary for security or privacy reasons or in order to open, view or play a particular type of content.
2. Deceptively cause the execution on the computer of a computer software component with the intent of causing an owner or operator to use the component in a manner that violates any other provision of this section.
C. Nothing in This section applies does not apply to any monitoring of, or interaction with, a subscriber's internet or other network connection or service, or a computer, by a telecommunications carrier, cable operator, computer hardware or software provider or provider of information service or interactive computer service for network or computer security purposes, diagnostics, technical support, maintenance, repair, authorized updates of software or system firmware, authorized remote system management or detection or prevention of the unauthorized use of or fraudulent or other illegal activities in connection with a network, service or computer software, including scanning for and removing software prescribed under this chapter article.
Sec. 14. Section 18‑504, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑504. Civil remedies; damages
A. In addition to any other remedies provided by law, the attorney general, or a computer software provider or a web site website or trademark owner who is adversely affected by a violation of this chapter, may bring an action against a person who violates this chapter to:
1. Enjoin further violations of this chapter.
2. Recover the greater of actual damages or one hundred thousand dollars for each separate violation of this chapter.
B. A single action or conduct that violates more than one paragraph of section 44‑7302 18‑502, subsection A or subsection B or at least one paragraph of section 44‑7302 18‑502, subsection A and at least one paragraph of section 44‑7302 18‑502, subsection B shall be considered multiple violations. The number of violations shall be based on the number of paragraphs violated.
C. In an action brought under this section, a court may:
1. Increase the damages up to three times the damages allowed by subsection A of this section if the defendant has engaged in a pattern and practice of violating this chapter.
2. Award costs and reasonable attorney fees to the prevailing party.
Sec. 15. Section 18‑541, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑541. Definitions
For the
purposes of this chapter In this article, unless the context otherwise requires:
1. "Electronic mail message" means a message sent to a unique destination that consists of a unique user name or mailbox and a reference to an internet domain, whether or not displayed, and to which an electronic mail message can be sent or delivered.
2. "Identifying information" means an individual's piece of information that can be used to access an individual's financial accounts or to obtain goods or services and that includes an individual's:
(a) Social security number.
(b) Driver license number.
(c) Bank account number.
(d) Credit or debit card number.
(e) Personal identification number.
(f) Automated or electronic signature.
(g) Unique biometric data.
(h) Account passwords.
3. "Internet" means collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected worldwide network of networks that employ the transmission control protocol or internet protocol, or any predecessor or successor protocols to such protocol, to communicate information of all kinds by wire or radio.
4. "Web page" means a location with respect to the worldwide web that has a single uniform resource locator or other single location with respect to the internet.
Sec. 16. Section 18‑542, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑542. Prohibition
A person, with the intent to commit fraud or theft, shall not by means of use a web page or electronic mail message or otherwise using use the internet to solicit, request or take any action to induce another person to provide identifying information by representing that the person, either directly or by implication, is an on-line online business without the authority or approval of the on-line online business.
Sec. 17. Section 18-543, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18‑543. Civil remedies; damages
A. The attorney general, or A person who either is engaged in the business of providing internet access service to the public or owns a web page or trademark and who is adversely affected by reason of a violation of this chapter, article may bring an action against a person who violates this chapter article to:
1. Enjoin further violations of this chapter article.
2. Recover the greater of actual damages or five hundred two thousand five hundred dollars for each separate violation of this chapter article.
B. A person, other than a person who is described in subsection A of this section, who is adversely affected by reason of a violation of this article may bring an action only against the person who violates this article to:
1. Enjoin further violations of this article.
2. Recover the greater of actual damages or five thousand dollars for each separate violation of this article.
C. The attorney general may bring an action against a person who violates this article to:
1. Enjoin further violations of this article.
2. Recover two thousand five hundred dollars per violation.
D. An action under this section must be brought within three years after the violation is discovered or by the exercise of reasonable diligence should have been discovered, whichever is earlier.
B. E. In an action under this section, the court may increase a damage award to an amount equal to not more than three times the amount otherwise available under this section if the court determines that the defendant has engaged in a pattern and practice of violating this chapter article.
C. F. The attorney general may also recover reasonable attorney fees and costs.
D. G. For the purposes of this section, multiple violations of this chapter article resulting from any single action or act shall constitute one violation.
Sec. 18. Section 18-544, Arizona Revised Statutes, as transferred and renumbered, is amended to read:
18-544. Violation; classification
A person who violates this chapter article is guilty of a class 5 felony.
Sec. 19. Section 28-2065, Arizona Revised Statutes, is amended to read:
28-2065. Electronic and digital signatures; documents
A. On or before January 1, 2009, The director in cooperation with a statewide association of franchised new motor vehicle dealers shall establish a schedule to develop a pilot program to accept and use electronic or digital signatures.
B. In the process of developing the pilot program, the director shall research and develop methods to allow the department, authorized third parties, licensed financial institutions, licensed insurers or any other business or individual as determined by the director to accept, exchange and use electronic or digital signatures for any document or for any transaction prescribed in this chapter and sections 28‑370, 28‑444, 28‑453 and 28‑5111.
C. The participants shall ensure that adequate security measures are in place to prevent any illegal use of the signatures or other information exchanged pursuant to this section.
D. Except for a statewide association of franchised new motor vehicle dealers, the director may limit the number of participants in the system but shall encourage authorized third parties and businesses of various sizes to participate.
E. After the system has been operating for twelve months, the director may expand the system if the director determines the system is successful.
F. The director may determine and require reimbursement from pilot program participants for costs related to computer programming, hardware, development and personnel. The department shall deposit, pursuant to sections 35‑146 and 35‑147, all monies received pursuant to this section in a separate account of the state highway fund established by section 28-6991. Monies in the separate account are continuously appropriated. The director may transfer monies deposited pursuant to this subsection from the separate account to the operating budget of the department's motor vehicle division for the purpose of reimbursing the department's operating budget for expenditures made by the division pursuant to this section.
G. This section does not
limit the use of electronic and digital signatures used by state agencies,
boards or commissions pursuant to section 41-132
18‑442.
H. The director shall adopt policies necessary to implement this section.
Sec. 20. Section 33-1701, Arizona Revised Statutes, is amended to read:
33-1701. Definitions; exception
A. In this article, unless the context otherwise requires:
1. "Default" means the failure to perform on time any obligation or duty set forth in the rental agreement.
2. "Department" means the Arizona game and fish department in the case of motorized watercraft and the department of transportation in the case of all other vehicles.
3. "Electronic mail" means an electronic message or an executable program or computer file that contains an image of a message that is transmitted between two or more computers or electronic terminals and includes electronic messages that are transmitted within or between computer networks from which a confirmation of receipt is received.
4. "Last known address" means that postal address or electronic address provided by the occupant in the rental agreement or the postal address or electronic address provided by the occupant in a subsequent written notice of a change of address.
5. "Late fee" means a reasonable fee or charge that is assessed by the operator for the failure of the occupant to pay rent when due pursuant to section 33‑1703, subsection D.
6. "Leased space" means the storage space or spaces at the self‑service storage facility that are rented to an occupant pursuant to a rental agreement.
7. "Net proceeds" means the total proceeds received from the lien sale less the total amount of the lien.
8. "Occupant" means a person or the person's sublessee, successor or assign, entitled to the use of the leased space at a self‑service storage facility under a rental agreement, to the exclusion of others.
9. "Operator" means the owner, operator, lessor or sublessor of a self‑service storage facility, an agent or any other person authorized to manage the facility.
10. "Personal information" has the same meaning prescribed in section 44-7501 18‑545 and includes passport information and medical or legal records.
11. "Personal property" means movable property that is not affixed to land and includes but is not limited to goods, wares, merchandise, household items and furnishings and vehicles.
12. "Protected property" means personal property the sale or disposal of which is regulated by state or federal law and that is one of the following:
(a) Documents, files or electronic data that contains personal information relating to clients, customers, patients or others in connection with the occupant's business.
(b) Alcoholic beverages.
(c) Pharmaceuticals other than those dispensed by a licensed pharmacy for the occupant's personal use.
(d) Firearms.
13. "Registered owner" means an owner of a vehicle as stated in the official records of the department.
14. "Rental agreement" means any written agreement provided to the occupant that establishes or modifies the terms, conditions or rules concerning the use and occupancy of leased space at a self‑service storage facility.
15. "Self‑service storage facility" means any real property used for renting or leasing storage spaces in which the occupants themselves customarily store and remove their own personal property on a self‑service basis.
16. "Vehicle" means a motor vehicle, a trailer or a semitrailer as defined in section 28‑101 and a motorized watercraft as defined in section 5‑301.
17. "Verified mail" means any method of mailing that is offered by the United States postal service and that provides evidence of mailing.
B. This article does not apply to a warehouseman unless the warehouseman issues a warehouse receipt, bill of lading or other document of title for the personal property stored.
Sec. 21. Section 36-3802, Arizona Revised Statutes, is amended to read:
36-3802. Individual rights
A. A health information organization must provide the following rights to individuals:
1. To opt out of participating in the health information organization pursuant to section 36‑3803.
2. To request a copy of the individual's individually identifiable health information that is available through the health information organization. The health information organization may provide this right directly or may require health care providers participating in the health information organization to provide access to individuals. The copy may be provided electronically, if the individual requesting the copy consents to electronic delivery of the individually identifiable health information, and must be provided to the individual within thirty days after the individual's request. Charges for copies are governed by section 12‑2295.
3. To request amendment of incorrect individually identifiable health information available through the health information organization.
4. To request a list of the persons who have accessed the individual's individually identifiable health information through the health information organization for a period of at least three years before the individual's request. This list must be provided to the individual within thirty days after the individual's request.
5. To be notified, pursuant to section 44‑7501 18‑545 and 45 Code of Federal Regulations part 164, subpart D, of a breach at the health information organization that affects the individual's individually identifiable health information.
B. If an individual does not have the capacity to make health care decisions, the individual's health care decision maker may exercise all individual rights in this chapter on behalf of the individual.
Sec. 22. Section 38-543, Arizona Revised Statutes, is amended to read:
38-543. Duty to file financial disclosure statement by candidate for public office
A candidate for public office as
specified in section 38‑541, paragraph 8 shall file a financial
disclosure statement covering the preceding twelve‑month period and
containing the information described in section 38‑542
18‑444 on a form
prescribed by the secretary of state at the time of filing of nomination
papers.
Sec. 23. Section 38-544, Arizona Revised Statutes, is amended to read:
38-544. Violation; classification
A. Any public officer,
local public officer or candidate who knowingly fails to file a financial
disclosure statement required pursuant to section 38‑542
18‑444, 38‑543
or 38‑545, who knowingly files an incomplete financial disclosure
statement or who knowingly files a false financial disclosure statement is
guilty of a class 1 misdemeanor.
B. Any public officer, local public officer or candidate who violates this chapter is subject to a civil penalty of fifty dollars for each day of noncompliance but not more than five hundred dollars that may be imposed as prescribed in section 16‑924.
Sec. 24. Section 41-121, Arizona Revised Statutes, is amended to read:
41-121. Duties
A. The secretary of state shall:
1. Receive bills and resolutions from the legislature, and perform such other duties as devolve upon the secretary of state by resolution of the two houses or either of them.
2. Keep a register of and attest the official acts of the governor.
3. Act as custodian of the great seal of this state.
4. Affix the great seal, with the secretary of state's attestation, to public instruments to which the official signature of the governor is attached.
5. File in the secretary of state's office receipts for all books distributed by the secretary of state and direct the county recorder of each county to do the same.
6. Certify to the governor the names of those persons who have received at any election the highest number of votes for any office, the incumbent of which is commissioned by the governor.
7. Publish slip laws of each act of the legislature promptly upon passage and approval of such act, make such acts available to interested persons for a reasonable fee to compensate for the cost of printing and provide each house of the legislature and the legislative council with a certified copy of each bill or resolution, showing the chapter or resolution number of each, as each is filed in the secretary of state's office.
8. Keep a fee book of fees and compensation of whatever kind and nature earned, collected or charged by the secretary of state, with the date, the name of the payer and the nature of the service in each case. The fee book shall be verified annually by the secretary of state's affidavit entered in the fee book.
9. Perform other duties imposed on the secretary of state by law.
10. Report to the governor on January 2 each year, and at such other times as provided by law, a detailed account of the secretary of state's official actions taken since the secretary of state's previous report together with a detailed statement of the manner in which all appropriations for the secretary of state's office have been expended.
11. Transfer all noncurrent or inactive books, records, deeds and other papers otherwise required to be filed with or retained by the secretary of state to the custody of the Arizona state library, archives and public records.
12. Make available to the public, without charge, title 33, chapters 10 and 11 on the secretary of state's website.
13. Accept, and
approve for use, electronic and digital signatures that comply with section 41‑132 18‑442, for documents filed with and by all state
agencies, boards and commissions. In consultation with the
department of administration and the state treasurer, the secretary of state
shall adopt rules pursuant to chapter 6 of this title establishing policies and
procedures for the use of electronic and digital signatures by all state
agencies, boards and commissions for documents filed with and by all state
agencies, boards and commissions.
14. Meet at least annually with personnel from the federal voting assistance office of the United States department of defense and with county recorders and other county election officials in this state to coordinate the delivery and return of registrations, ballot requests, voted ballots and other election materials to and from absent uniformed and overseas citizens.
B. The secretary of state may refuse to perform a service or refuse a filing based on a reasonable belief that the service or filing is being requested for an unlawful, illegitimate, false or fraudulent purpose or is being requested or submitted in bad faith or for the purpose of harassing or defrauding a person or entity. This subsection does not apply to election filings.
Sec. 25. Section 41-352, Arizona Revised Statutes, is amended to read:
41-352. Applicability of article; electronic signature laws
A. Any notarial act in which a person by oath or affirmation signs a document may be performed electronically as prescribed by this article if under applicable law that document may be signed with an electronic signature.
B. Unless otherwise expressly prohibited by law, the following notarial acts, terms and entities have the same legal effect as those prescribed by article 2 of this chapter:
1. Electronic acknowledgment as acknowledgment.
2. Electronic oath as oath.
3. Electronic jurat as jurat.
4. Electronic affidavit as affidavit.
5. Electronic notarial act as notarial act.
6. Electronic notarial certificate token as notarial certificate.
7. Electronic notary as notary.
C. An electronic commission is a commission to perform only electronic notary acts, and only an electronic notary is authorized to perform electronic notary acts.
D. Unless otherwise expressly prohibited by law, any electronic notarial act may be performed by either:
1. An act in the presence of an electronic notary as prescribed by this article.
2. An electronic notarial service as prescribed by this article for which the person signing appears before an electronic notary and by oath or affirmation acknowledges that any notary service electronic document that is created by the person pursuant to this article has the same legal force and effect as if the person appeared before an electronic notary and by oath or affirmation executed an electronic notarial act.
E. Section 41‑132 18‑442 applies in conjunction with this article to
electronic signatures used by electronic notaries.
F. This article applies to electronic notarial acts that are performed by electronic notaries who are appointed in this state and applies only to their acts performed in the United States.
Sec. 26. Section 41-1277, Arizona Revised Statutes, is amended to read:
41‑1277. Joint legislative budget committee; annual report; debt; definitions
A. On or before January 31 of each year, the joint legislative budget committee staff shall present to the appropriations committees of the senate and the house of representatives a report on state debt and obligations, including:
1. Outstanding general obligation bonds.
2. Long‑term notes and obligations.
3. Certificates of participation and other obligations pursuant to any lease‑purchase agreements.
4. Revenue bonds.
5. Deferred rollover payment obligations.
B. The report shall contain, for the most recent fiscal year:
1. The statewide aggregate level of outstanding principal and the principal and interest payments, by type of debt or obligation. The report shall be based on data available from the searchable database required by section 41‑4604 18‑304.
2. Itemization, by budget unit, of the original due date of each deferred payment for deferred rollover payment obligations, the amount of interest paid to date due to the deferral and the amount of yearly interest to be paid in the most recent and the next fiscal year due to the deferral.
3. Information on per capita state debt and obligations.
4. Information on the ten-year history of state debt and obligations based on available data.
C. The report and a link to the searchable database required by section 41‑4604 18‑304 shall be posted on the joint legislative budget committee's website, and a copy of the report shall be provided to any member of the public who makes a request.
D. For the purposes of this section:
1. "Deferred rollover payment obligation" means an obligation to make a payment in a fiscal year that was due in and deferred from a previous fiscal year.
2. "State debt and obligations" means debt and obligations whose principal or interest is paid with state funds.
Sec. 27. Section 41-1504, Arizona Revised Statutes, is amended to read:
41-1504. Powers and duties; e-verify requirement
A. The board of directors, on behalf of the authority, may:
1. Adopt and use a corporate seal.
2. Sue and be sued.
3. Enter into contracts as necessary to carry out the purposes and requirements of this chapter, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 and interagency service agreements as provided by section 35‑148.
4. Lease real property and improvements to real property for the purposes of the authority. Leases by the authority are exempt from chapter 4, article 7 of this title, relating to management of state properties.
5. Employ or retain legal counsel and other consultants as necessary to carry out the purposes of the authority.
6. Develop and use written policies, procedures and guidelines for the terms and conditions of employing officers and employees of the authority and may include background checks of appropriate personnel.
B. The board of directors, on behalf of the authority, shall:
1. Develop comprehensive long-range strategic economic plans for this state and submit the plans to the governor.
2. Annually update a strategic economic plan for submission to the governor.
3. Accept gifts, grants and loans and enter into contracts and other transactions with any federal or state agency, municipality, private organization or other source.
C. The authority shall:
1. Assess and collect fees for processing applications and administering incentives. The board shall adopt the manner of computing the amount of each fee to be assessed. Within thirty days after proposing fees for adoption, the chief executive officer shall submit a schedule of the fees for review by the joint legislative budget committee. It is the intent of the legislature that a fee shall not exceed one per cent percent of the amount of the incentive.
2. Determine and collect registry fees for the administration of the allocation of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Such monies collected by the authority shall be deposited, pursuant to sections 35‑146 and 35‑147, in an authority bond fund. Monies in the fund shall be used, subject to annual appropriation by the legislature, by the authority to administer the allocations provided in this paragraph and are exempt from the provisions of section 35‑190 relating to the lapsing of appropriations.
3. Determine and collect security deposits for the allocation, for the extension of allocations and for the difference between allocations and principal amounts of federal tax exempt industrial development bonds and student loan bonds authorized by the authority. Security deposits forfeited to the authority shall be deposited in the state general fund.
4. At the direction of the board, establish and supervise the operations of full-time or part-time offices in other states and foreign countries for the purpose of expanding direct investment and export trade opportunities for businesses and industries in this state if, based on objective research, the authority determines that the effort would be beneficial to the economy of this state.
5. Establish a program by which entrepreneurs become aware of permits, licenses or other authorizations needed to establish, expand or operate in this state.
6. Be the state registration agency for apprenticeship functions prescribed by the federal government.
D. The authority, through the chief executive officer, may:
1. Contract and incur obligations reasonably necessary or desirable within the general scope of the authority's activities and operations to enable the authority to adequately perform its duties.
2. Use monies, facilities or services to provide matching contributions under federal or other programs that further the objectives and programs of the authority.
3. Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this chapter.
4. Assess business fees for promotional services provided to businesses that export products and services from this state. The fees shall not exceed the actual costs of the services provided.
5. Establish and maintain one or more accounts in banks or other depositories, for public or private monies of the authority, from which operational activities, including payroll, vendor and grant payments, may be conducted. Individual funds that are established by law under the jurisdiction of the authority may be maintained in separate accounts in banks or other depositories, but shall not be commingled with any other monies or funds of the authority.
E. The chief executive officer shall:
1. Hire employees and prescribe the terms and conditions of their employment as necessary to carry out the purposes of the authority. The board of directors shall adopt written policies, procedures and guidelines, similar to those adopted by the department of administration, regarding officer and employee compensation, observed holidays, leave and reimbursement of travel expenses and health and accident insurance. The officers and employees of the authority are exempt from any laws regulating state employment, including:
(a) Chapter 4, articles 5 and 6 of this title, relating to state service.
(b) Title 38, chapter 4, article 1 and chapter 5, article 2, relating to state personnel compensation, leave and retirement.
(c) Title 38, chapter 4, article 2, relating to reimbursement of state employee expenses.
(d) Title 38, chapter 4, article 4, relating to health and accident insurance.
2. On a quarterly basis, provide public record data in a manner prescribed by the department of administration related to the authority's revenues and expenditures for inclusion in the comprehensive database of receipts and expenditures of state monies pursuant to section 41‑725.
F. In addition to any other requirement, in order to qualify for any grant, loan, reimbursement, tax incentive or other economic development incentive pursuant to this chapter, an applicant that is an employer must register with and participate in the e-verify program in compliance with section 23‑214. The authority shall require verification of compliance with this subsection as part of any application process.
G. Notwithstanding any other law, the authority is subject to chapter 3.1, article 1 of this title, relating to risk management.
H. The authority is exempt from title 18, chapter 32 1, articles 1 and 2 of this title, relating to statewide information technology. The authority shall adopt policies, procedures and guidelines regarding information technology.
I. The authority is exempt from state general accounting and finance practices and rules adopted pursuant to chapter 4, article 3 of this title, but the board shall adopt written accounting practices, systems and procedures for the economic and efficient operation of the authority.
J. The authority is exempt from section 41‑712, relating to the installation and maintenance of telecommunications telecommunication systems.
K. The authority may lease or purchase motor vehicles for use by employees to conduct business activities. The authority is exempt from section 41‑803, relating to the state motor vehicle fleet, and title 38, chapter 3, article 10, relating to vehicle usage and markings.
L. Any tangible or intangible record submitted to or compiled by the board or the authority in connection with its work, including the award of monies, is subject to title 39, chapter 1, unless an applicant shows, or the board or authority determines, that specific information meets either of the following:
1. If made public, the information would divulge the applicant's or potential applicant's trade secrets, as defined in section 44‑401.
2. If made public, the information could potentially harm the applicant's, the potential applicant's or this state's competitive position relating to potential business development opportunities and strategies.
M. The authority is exempt from chapter 25, article 1 of this title, relating to government competition with private enterprise.
Sec. 28. Section 41-2513, Arizona Revised Statutes, is amended to read:
41-2513. Authority to contract for certain services
A. For the purpose of procuring the services of clergy, certified public accountants, legal counsel pursuant to section 41‑192, subsection D, physicians or dentists as defined by the laws of this state, any state governmental unit may act as a purchasing agency and contract on its own behalf for such services, subject to this chapter and rules adopted by the director.
B. In accordance with the provisions of section 41‑192, subsection D and notwithstanding any contrary statute, no contract for the services of legal counsel may be awarded without the approval of the attorney general.
C. The auditor general shall approve state agency contracting for financial and compliance auditing services except if specific statutory authority is otherwise provided. The auditor general shall ensure that such contract audits are conducted in accordance with generally accepted governmental auditing standards. An audit shall not be accepted until it has been approved by the auditor general.
D. The department may approve all information technology purchases exceeding twenty‑five thousand dollars for a budget unit as defined in section 41‑3501 18‑101. Purchases shall not be artificially divided to avoid review.
E. Payment for any services, including those services described in subsections A, B and C of this section, procured under this chapter shall not be made unless pursuant to a fully approved written contract.
Sec. 29. Section 41-3016.06, Arizona Revised Statutes, is amended to read:
41-3016.06. Department of administration; termination July 1, 2016
A. The department of administration terminates on July 1, 2016.
B. Title 41, chapter 4, articles 1, 2, 3, 4, 5 and 7 and title 18, chapter 32 1 are repealed on January 1, 2017.
Sec. 30. Section 44-7011, Arizona Revised Statutes, is amended to read:
44-7011. Notarization; acknowledgment
Notwithstanding title 41, chapter 2, article 2, if the law requires a signature or record to be notarized, acknowledged, verified or made under oath, that requirement is satisfied if a notary completes a notarial act on the electronic message or document. That notarial act on the electronic message or document is complete without the imprint of the notary's seal if all of the following apply:
1. The electronic
message or document is signed pursuant to this chapter or section 41-132 18‑442 in the presence of a notary.
2. The notary confirms
that the electronic signature on the electronic message or document is
verifiably the electronic signature issued to the signer pursuant to this
chapter or section 41-132 18‑442.
3. The notary
electronically signs with an electronic signature that is consistent with this
chapter, any electronic notary law title 41, chapter 2, article 3 or
any other applicable law.
4. The following information appears electronically within the message electronically signed by the notary:
(a) The notary's full name and commission number exactly as it appears on the notary's commission.
(b) The words "electronic notary public", "state of Arizona" and "my commission expires on (date)".
(c) The address of the notary's principal place of contact exactly as it appears on the notary's commission.
(d) The notary's e-mail or other electronic address exactly as it appears on the notary's commission.
Sec. 31. Section 44-7041, Arizona Revised Statutes, is amended to read:
44-7041. Creation; retention; conversion of written records
A. Each governmental agency shall determine if, and the extent to which, the governmental agency will create and retain electronic records and convert written records to electronic records. Any governmental agency that is subject to the management, preservation, determination of value and disposition of records requirements prescribed in sections 41‑151.12, 41‑151.13, 41‑151.14, 41‑151.15, 41‑151.16, 41‑151.17, 41‑151.18 and 41‑151.19 and the permanent public records requirements prescribed in section 39-101 shall comply with those requirements.
B. State agencies shall comply with the standards adopted by the department of administration pursuant to title 41 18, chapter 32 1.
C. All governmental agencies shall comply with the policies that are established by the secretary of state pursuant to section 41-132 18-442 and that apply to the use of electronic signatures.
Sec. 32. Section 44-7042, Arizona Revised Statutes, is amended to read:
44-7042. Sending and accepting electronic records
A. Except as otherwise provided in section 44-7012, subsection E, each governmental agency shall determine if, and the extent to which, the governmental agency will send and accept electronic records and electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use and rely on electronic records and electronic signatures. State agencies shall comply with the appropriate standards and policies adopted or established by the department of administration pursuant to title 41 18, chapter 32 1 and the secretary of state pursuant to section 41‑132 18-442.
B. To the extent that a governmental agency uses electronic records and electronic signatures pursuant to subsection A of this section, the governmental agency after giving due consideration to security may specify:
1. The manner and format in which the electronic records must be created, generated, sent, communicated, received and stored and the systems established for those purposes.
2. If electronic records must be signed by electronic means, the type of electronic signature required, the manner and format in which the electronic signature must be affixed to the electronic record and the identity of or criteria that must be met by any third party used by a person filing a document to facilitate the process.
3. Control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality and ability to perform audits of electronic records.
4. Any other required attributes for electronic records that are specified for corresponding nonelectronic records or that are reasonably necessary under the circumstances.
C. Except as otherwise provided in section 44‑7012, subsection E, this chapter does not require a governmental agency to use or allow the use of electronic records or electronic signatures.
Sec. 33. Section 47-9525, Arizona Revised Statutes, is amended to read:
47-9525. Fees
A. Except as otherwise
provided in subsection E of this section and except for a filing office
described in section 47‑9501, subsection A, paragraph 1, the fee for
filing and indexing a record under this article, other than an initial
financing statement of the kind described in section 47‑9502, subsection
C, is not more than nine dollars as provided in sections 18‑441 and 41‑126
and 41‑127, if the record is communicated in
writing or by any other medium authorized by filing office rule.
B. Except as otherwise
provided in subsection E of this section, the fee for filing and indexing an initial
financing statement of the kind described in section 47‑9502, subsection
C is not more than nine dollars as provided in sections 18‑441 and 41‑126 and 41‑127
if the financing statement indicates that it is filed in connection with a
manufactured home transaction.
C. The number of names required to be indexed does not affect the amount of the fee in subsections A and B of this section.
D. The fee for
responding to a request for information from the filing office, including for
issuing a certificate showing whether there is on file any financing statement
naming a particular debtor, is not more than nine dollars as provided in
sections 18‑441 and 41‑126
and 41‑127 if the request is communicated in
writing or by any other medium authorized by filing office rule.
E. This section does not require a fee with respect to a record of a mortgage that is effective as a financing statement filed as a fixture filing or as a financing statement covering as‑extracted collateral or timber to be cut under section 47‑9502, subsection C. However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.
F. The filing fee for filing, indexing and furnishing filing data about a statement of master amendment pursuant to section 47‑9512, subsection F or master assignment pursuant to section 47‑9514, subsection D is not more than four hundred fifty dollars plus fifty cents for each financing statement covered by the master statement in excess of fifty financing statements.
Sec. 34. Laws 2006, chapter 232, section 3 is amended to read:
Sec. 3. Conditional repeal; notice
A. Title 44, chapter 32 section 18-545, Arizona Revised Statutes, as added by this act, is repealed one year after the effective date of the federal personal data privacy and security act.
B. The attorney general shall notify in writing the director of the Arizona legislative council of this date.
Sec. 35. Requirements for enactment; three-fourths vote
Pursuant to article IV, part 1, section 1, Constitution of Arizona, section 8-1192, Arizona Revised Statutes, as amended by this act, is effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.