AZ SB1338

Amends Arizona Revised Statutes section 41-101 to add a new gubernatorial duty requiring the governor to produce and publish a state risk assessment before the annual legislative address, including substantial risks to state/national security, economic security, and public health, with analysis of probability and severity of consequences.

Establishes a bipartisan select committee on Pacific conflict consisting of the adjutant general (chair), public safety director, four legislators, and five governor-appointed members to assess threats and vulnerabilities to Arizona in the event of a Pacific conflict involving the United States and allies.

Requires the committee to provide annual reports by December 31 each year (through 2028) to the governor and legislature with comprehensive risk assessments of critical infrastructure, telecommunications, military installations, supply chains, cybersecurity, and public health/safety, including mitigation strategies.

Directs the auditor general to audit all critical procurements and state supply chains by July 31, 2026 to identify items produced or sourced from foreign adversaries or at-risk suppliers, and audit all state investments to identify those at risk during a Pacific conflict, with recommendations for divestment.

Reports and audit findings are exempt from public records disclosure; recipients must develop confidentiality protocols; the committee and audit provisions expire December 31, 2028 and December 31, 2026 respectively.