In one paragraph
Arizona's HB 4098 (2026) would have required an 'artificial intelligence business' using a frontier model from a large developer to assess each high-risk AI system for bias, child-safety, privacy and catastrophic risks, file a transparency report with the attorney general and post it publicly, and run quarterly audits. The attorney general could impose civil penalties of up to $50,000 per violation. It was held in House committees with no action and died when the 2026 session ended June 13, 2026.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died and never became law. It would have required frontier-model AI businesses to assess, report on and audit high-risk AI systems, with penalties up to $50,000 per violation.
Key provisions
- Would apply to an 'artificial intelligence business': an entity whose AI systems interact with the public and that uses a frontier model owned or operated by a large developer
- Would require a comprehensive risk assessment of each high-risk AI system before use or sale, covering discrimination or bias, safety risks to children and vulnerable populations, privacy and data protection, and catastrophic risks
- Would require a transparency report to the attorney general before using or selling a high-risk system (purposes and operation, risk assessment results, bias mitigation measures), posted on the business's website
- Would require bias mitigation measures and a quarterly audit to identify and correct discrimination, harmful outputs or unsafe behavior
- Would require parental monitoring tools, content filtering and harmful-content reporting if a high-risk system may be accessed by a child
- Would direct the attorney general to issue a certification before an AI business enters the stream of commerce, and to enforce the section and review transparency reports
- Would allow civil penalties of not more than $50,000 per violation, with each day a separate violation; compliance with COPPA advisory services could reduce the penalty for inadvertent violations
- Held in House committees (Artificial Intelligence & Innovation; Rules) with no action; died June 13, 2026
Latest legislative action
Feb 11, 2026. House Second Reading; died when the 57th Arizona Legislature's 2026 regular session ended June 13, 2026
Sponsors
| Name | Role |
|---|---|
| Stacey Travers D | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error