AZ SB1708

Prohibits state agencies, independent contractors, and persons in Arizona from operating unmanned aircraft manufactured or assembled by covered foreign entities to collect data on restricted critical infrastructure, effective December 31, 2028.

Allows use of covered foreign entity unmanned aircraft if equipped with U.S. security software compliant with National Institute of Standards and Technology standards, or secure firewall/boundary protection software meeting state security standards.

Requires annual verification by independent third parties that security technology meets standards established by the Arizona Department of Homeland Security and Department of Public Safety.

Defines critical infrastructure to include gas and oil systems, water supply systems, electrical power delivery systems, telecommunications networks, and transportation systems and services.

Exempts the Arizona Department of Homeland Security, Department of Public Safety, municipal law enforcement agencies, and county sheriff's departments from these restrictions.