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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
AMENDED
state; local public benefits; eligibility
Purpose
Removes, from the definition of state or local public benefit, the exclusion of benefits provided by the public retirement systems and plans of the state. Outlines persons who are ineligible to receive any state or local public benefit.
Background
A state or local public benefit is any: 1) grant, contract or loan provided by a state agency or local government or by appropriated funds of a state or local government; and 2) welfare, health, disability, public or assisted housing, food assistance, unemployment benefit or other similar benefit for which payments or assistance are provided to an individual, household or family eligibility unit by a state agency or local government or by appropriated funds of a state or local government. A state or local public benefit does not include commercial or professional licenses, postsecondary education or benefits provided by state public retirement systems and plans or services widely available to the general population as a whole.
Any agency or political subdivision of the state that administers any state or local public benefit must require each natural person who applies for the state or local public benefit to demonstrate lawful presence in the United States by submitting: 1) an Arizona driver license issued after 1996 or an Arizona nonoperating identification license; 2) a birth certificate or delayed birth certificate issued in any state, territory or possession of the United States; 3) a U.S. certificate of birth abroad; 4) a U.S. passport; 5) a foreign passport with a U.S. visa; 6) an I-94 form with a photograph; 7) a U.S. Citizenship and Immigration Services employment authorization document or refugee travel document; 8) a U.S. certificate of naturalization; 9) a U.S. certificate of citizenship; 10) a tribal certificate of Indian blood; or 11) a tribal or Bureau of Indian Affairs affidavit of birth (A.R.S. § 1-502; 8 U.S.C. § 1621).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Removes, from the definition of state or local public benefit, the exclusion of benefits provided by the public retirement systems and plans of the state.
2. Deems, as ineligible to receive any state or local public benefit:
a) a person whose presence in the United States is not authorized by federal law;
b) a foreign national who is paroled into the United States by the U.S. Department of Homeland Security; and
c) a foreign national who has indicated an intention to apply for asylum in the United States but whose application has not been adjudicated in the affirmative.
3. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Outlines persons who are ineligible to receive any state or local public benefit.
Governor's Veto Message
The Governor indicates in her veto message that while she agrees with Arizona law that requires proof of lawful presence to access public benefits, S.B. 1338 is an attack on Deferred Action for Childhood Arrivals (DACA) recipients and other lawful residents who pay their taxes and earn retirement savings the same way every state employee does.
Senate Action House Action
GOV 2/18/26 DPA 4-2-1 GOV 3/26/26 DP 4-3-0-0
3rd Read 2/26/26 16-12-2 3rd Read 6/11/26 32-25-3
Vetoed by the Governor 6/19/26
Prepared by Senate Research
June 23, 2026
AN/ci