A new Arizona law limits what parking operators and other vendors can do with vehicle-identification data—and it may affect your contracts.
Most Arizona restaurant owners don't realize that a provision buried in SB1552—a bill primarily about Arizona Department of Transportation revisions—could reshape how parking operators, tow companies, and other vendors they work with handle vehicle data.
Effective immediately upon enactment (June 22, 2026), SB1552 Section 26 adds a new statute, Arizona Revised Statutes § 44-7953, that imposes a strict limit on camera-system vendors: any business that operates a vehicle-identification camera system under contract with a law enforcement agency is now prohibited from selling, sharing, or monetizing the data it collects with third parties.
In plain terms, if you hire a parking vendor, tow operator, or license-plate-reader (LPR) contractor who works with local police or sheriff's offices, that vendor can no longer turn around and sell or share the vehicle data they collect to other buyers—whether that's data brokers, insurance companies, or other commercial users.
The rule applies to any small business that both (1) contracts with a law enforcement agency to run a camera system that identifies vehicles, and (2) collects data in the course of that work. This includes:
If you operate a restaurant with a private parking lot and contract with a vendor who also works with police, or if you use a tow company that operates under a law enforcement agreement, this law touches your supply chain.
The practical impact is twofold:
For vendors: Any existing contract with a law enforcement agency will need to be reviewed and updated to comply with the new restriction. Vendors can no longer count on data monetization as a revenue stream from law-enforcement-related work. This may affect pricing or service models.
For you: When you renew or enter into a new contract with a parking operator, tow company, or similar vendor, confirm that their agreement with law enforcement includes the required data-restriction language. If it doesn't, they're out of compliance as of June 22, 2026.
The law takes effect on enactment (June 22, 2026) and applies to all contracts entered into or renewed on or after that date. Existing contracts signed before that date are not automatically affected, but any renewal or new agreement must comply.
If you work with parking vendors, tow operators, or similar contractors, ask them directly whether they hold any law enforcement contracts. If they do, request confirmation that their agreements include the SB1552 data-restriction clause. This is a straightforward compliance check, not a red flag—but it's worth doing before June 2026 arrives.
Arizona Revised Statutes § 44-7953 (added by SB1552, Section 26, effective June 22, 2026). For a free, restaurant-specific summary of how SB1552 may affect your vendor relationships, contact your local chamber of commerce or trade association.