AZ SB1336

Manufacturers, service providers, and sellers are exempted from exemplary or punitive damages liability if the product or service was designed, manufactured, or provided in compliance with government agency approval, clearance, license, or determination.

The exemption also applies when products, activities, or services comply with applicable state or federal statutes, standards, regulations, or orders at the time the product left the manufacturer's or seller's control.

The exemption does not apply if the defendant sold a product after a government agency ordered its removal from the market, or withheld or misrepresented material information to the agency relevant to the alleged harm.

The exemption is void if the defendant made illegal payments to government officials to secure approval, or knowingly violated regulations requiring reporting of risks to the government agency and failed to report material information relevant to the harm.

Defines key terms including "manufacturer," "seller," "product," "service," "activity," and "government agency" for purposes of applying the punitive damages exemption.