HB2727 is a bill that proposes amendments to the Arizona Revised Statutes concerning the sexual exploitation of minors and financial institutions' handling of merchant category codes related to firearms and ammunition. The bill adds provisions to the existing criminal statute for sexual exploitation of a minor to include conduct involving artificially generated depictions of a minor in exploitive exhibition or sexual conduct. It specifies that producing, publishing, altering, or generating such depictions with artificial intelligence, as well as possessing or distributing them, particularly if they use the likeness of a real minor under 12 years of age, would constitute sexual exploitation of a minor.

Additionally, the bill introduces new regulations for financial institutions, prohibiting them from requiring merchants or sporting goods retailers in Arizona to use specific merchant category codes for firearms or ammunition. It allows individuals to file complaints with the attorney general or in court if they believe a financial institution has violated this section. If a violation is found and not cured within 30 days, the court may enjoin the financial institution from collecting protected financial information, revoke its business license for up to five years, impose a civil penalty of up to $50,000, and order any other appropriate relief.

Statutes affected:
Introduced Version: 6-194