AZ HB2878

Prohibits state agencies, political subdivisions, and their employees from knowingly participating in enforcement of federal deportation proceedings against individuals protected under the Deferred Action for Childhood Arrivals (DACA) policy.

Prohibits use of state funds or monies allocated to political subdivisions from aiding federal agencies or contractors in enforcing or investigating federal deportation laws targeting DACA recipients.

Authorizes the state treasurer to withhold fiscal year funding transfers to any political subdivision that violates this section following a final judicial determination.

Imposes civil penalty of up to $3,000 for a first violation by state or local agents/employees.

Classifies second or subsequent violations as class 1 misdemeanors.