diff --git a/apps/browser/src/admin-console/background/service-factories/policy-service.factory.ts b/apps/browser/src/admin-console/background/service-factories/policy-service.factory.ts
index efdb743196..b00693bd56 100644
--- a/apps/browser/src/admin-console/background/service-factories/policy-service.factory.ts
+++ b/apps/browser/src/admin-console/background/service-factories/policy-service.factory.ts
@@ -1,4 +1,5 @@
 import { PolicyService as AbstractPolicyService } from "@bitwarden/common/admin-console/abstractions/policy/policy.service.abstraction";
+import { PolicyService } from "@bitwarden/common/admin-console/services/policy/policy.service";
 
 import {
   CachedServices,
@@ -9,11 +10,6 @@ import {
   stateProviderFactory,
   StateProviderInitOptions,
 } from "../../../platform/background/service-factories/state-provider.factory";
-import {
-  stateServiceFactory as stateServiceFactory,
-  StateServiceInitOptions,
-} from "../../../platform/background/service-factories/state-service.factory";
-import { BrowserPolicyService } from "../../services/browser-policy.service";
 
 import {
   organizationServiceFactory,
@@ -23,7 +19,6 @@ import {
 type PolicyServiceFactoryOptions = FactoryOptions;
 
 export type PolicyServiceInitOptions = PolicyServiceFactoryOptions &
-  StateServiceInitOptions &
   StateProviderInitOptions &
   OrganizationServiceInitOptions;
 
@@ -36,8 +31,7 @@ export function policyServiceFactory(
     "policyService",
     opts,
     async () =>
-      new BrowserPolicyService(
-        await stateServiceFactory(cache, opts),
+      new PolicyService(
         await stateProviderFactory(cache, opts),
         await organizationServiceFactory(cache, opts),
       ),
diff --git a/apps/browser/src/admin-console/services/browser-policy.service.ts b/apps/browser/src/admin-console/services/browser-policy.service.ts
deleted file mode 100644
index 2022cfec58..0000000000
--- a/apps/browser/src/admin-console/services/browser-policy.service.ts
+++ /dev/null
@@ -1,16 +0,0 @@
-import { BehaviorSubject } from "rxjs";
-import { Jsonify } from "type-fest";
-
-import { Policy } from "@bitwarden/common/admin-console/models/domain/policy";
-import { PolicyService } from "@bitwarden/common/admin-console/services/policy/policy.service";
-
-import { browserSession, sessionSync } from "../../platform/decorators/session-sync-observable";
-
-@browserSession
-export class BrowserPolicyService extends PolicyService {
-  @sessionSync({
-    initializer: (obj: Jsonify<Policy>) => Object.assign(new Policy(), obj),
-    initializeAs: "array",
-  })
-  protected _policies: BehaviorSubject<Policy[]>;
-}
diff --git a/apps/browser/src/background/main.background.ts b/apps/browser/src/background/main.background.ts
index ce0c67efa1..c5608dc830 100644
--- a/apps/browser/src/background/main.background.ts
+++ b/apps/browser/src/background/main.background.ts
@@ -22,6 +22,7 @@ import { PolicyApiServiceAbstraction } from "@bitwarden/common/admin-console/abs
 import { InternalPolicyService as InternalPolicyServiceAbstraction } from "@bitwarden/common/admin-console/abstractions/policy/policy.service.abstraction";
 import { ProviderService as ProviderServiceAbstraction } from "@bitwarden/common/admin-console/abstractions/provider.service";
 import { PolicyApiService } from "@bitwarden/common/admin-console/services/policy/policy-api.service";
+import { PolicyService } from "@bitwarden/common/admin-console/services/policy/policy.service";
 import { ProviderService } from "@bitwarden/common/admin-console/services/provider.service";
 import { AccountService as AccountServiceAbstraction } from "@bitwarden/common/auth/abstractions/account.service";
 import { AuthService as AuthServiceAbstraction } from "@bitwarden/common/auth/abstractions/auth.service";
@@ -175,7 +176,6 @@ import {
 } from "@bitwarden/vault-export-core";
 
 import { BrowserOrganizationService } from "../admin-console/services/browser-organization.service";
-import { BrowserPolicyService } from "../admin-console/services/browser-policy.service";
 import ContextMenusBackground from "../autofill/background/context-menus.background";
 import NotificationBackground from "../autofill/background/notification.background";
 import OverlayBackground from "../autofill/background/overlay.background";
@@ -501,11 +501,7 @@ export default class MainBackground {
       this.stateService,
       this.stateProvider,
     );
-    this.policyService = new BrowserPolicyService(
-      this.stateService,
-      this.stateProvider,
-      this.organizationService,
-    );
+    this.policyService = new PolicyService(this.stateProvider, this.organizationService);
     this.autofillSettingsService = new AutofillSettingsService(
       this.stateProvider,
       this.policyService,
diff --git a/apps/browser/src/popup/services/services.module.ts b/apps/browser/src/popup/services/services.module.ts
index 2e6dfaee7a..40d68eb630 100644
--- a/apps/browser/src/popup/services/services.module.ts
+++ b/apps/browser/src/popup/services/services.module.ts
@@ -102,7 +102,6 @@ import { ImportServiceAbstraction } from "@bitwarden/importer/core";
 import { VaultExportServiceAbstraction } from "@bitwarden/vault-export-core";
 
 import { BrowserOrganizationService } from "../../admin-console/services/browser-organization.service";
-import { BrowserPolicyService } from "../../admin-console/services/browser-policy.service";
 import { UnauthGuardService } from "../../auth/popup/services";
 import { AutofillService } from "../../autofill/services/abstractions/autofill.service";
 import MainBackground from "../../background/main.background";
@@ -293,17 +292,6 @@ function getBgService<T>(service: keyof MainBackground) {
       useFactory: getBgService<EventCollectionService>("eventCollectionService"),
       deps: [],
     },
-    {
-      provide: PolicyService,
-      useFactory: (
-        stateService: StateServiceAbstraction,
-        stateProvider: StateProvider,
-        organizationService: OrganizationService,
-      ) => {
-        return new BrowserPolicyService(stateService, stateProvider, organizationService);
-      },
-      deps: [StateServiceAbstraction, StateProvider, OrganizationService],
-    },
     {
       provide: PlatformUtilsService,
       useFactory: getBgService<PlatformUtilsService>("platformUtilsService"),
diff --git a/apps/cli/src/bw.ts b/apps/cli/src/bw.ts
index e46937f71f..581d37c9e6 100644
--- a/apps/cli/src/bw.ts
+++ b/apps/cli/src/bw.ts
@@ -394,11 +394,7 @@ export class Main {
 
     this.organizationUserService = new OrganizationUserServiceImplementation(this.apiService);
 
-    this.policyService = new PolicyService(
-      this.stateService,
-      this.stateProvider,
-      this.organizationService,
-    );
+    this.policyService = new PolicyService(this.stateProvider, this.organizationService);
 
     this.policyApiService = new PolicyApiService(this.policyService, this.apiService);
 
@@ -653,7 +649,7 @@ export class Main {
       this.cipherService.clear(userId),
       this.folderService.clear(userId),
       this.collectionService.clear(userId as UserId),
-      this.policyService.clear(userId),
+      this.policyService.clear(userId as UserId),
       this.passwordGenerationService.clear(),
       this.providerService.save(null, userId as UserId),
     ]);
diff --git a/libs/angular/src/services/jslib-services.module.ts b/libs/angular/src/services/jslib-services.module.ts
index be3a65dcf2..5c83bc880c 100644
--- a/libs/angular/src/services/jslib-services.module.ts
+++ b/libs/angular/src/services/jslib-services.module.ts
@@ -678,7 +678,7 @@ import { ModalService } from "./modal.service";
     {
       provide: PolicyServiceAbstraction,
       useClass: PolicyService,
-      deps: [StateServiceAbstraction, StateProvider, OrganizationServiceAbstraction],
+      deps: [StateProvider, OrganizationServiceAbstraction],
     },
     {
       provide: InternalPolicyService,
diff --git a/libs/angular/src/tools/send/add-edit.component.ts b/libs/angular/src/tools/send/add-edit.component.ts
index 9d213cfca5..2e4b2cd57b 100644
--- a/libs/angular/src/tools/send/add-edit.component.ts
+++ b/libs/angular/src/tools/send/add-edit.component.ts
@@ -1,7 +1,7 @@
 import { DatePipe } from "@angular/common";
 import { Directive, EventEmitter, Input, OnDestroy, OnInit, Output } from "@angular/core";
 import { FormBuilder, Validators } from "@angular/forms";
-import { Subject, takeUntil } from "rxjs";
+import { Subject, map, takeUntil } from "rxjs";
 
 import { PolicyService } from "@bitwarden/common/admin-console/abstractions/policy/policy.service.abstraction";
 import { PolicyType } from "@bitwarden/common/admin-console/enums";
@@ -151,8 +151,11 @@ export class AddEditComponent implements OnInit, OnDestroy {
       });
 
     this.policyService
-      .policyAppliesToActiveUser$(PolicyType.SendOptions, (p) => p.data.disableHideEmail)
-      .pipe(takeUntil(this.destroy$))
+      .getAll$(PolicyType.SendOptions)
+      .pipe(
+        map((policies) => policies?.some((p) => p.data.disableHideEmail)),
+        takeUntil(this.destroy$),
+      )
       .subscribe((policyAppliesToActiveUser) => {
         if (
           (this.disableHideEmail = policyAppliesToActiveUser) &&
diff --git a/libs/common/src/admin-console/abstractions/policy/policy.service.abstraction.ts b/libs/common/src/admin-console/abstractions/policy/policy.service.abstraction.ts
index a9f544ad77..1a85fd79fc 100644
--- a/libs/common/src/admin-console/abstractions/policy/policy.service.abstraction.ts
+++ b/libs/common/src/admin-console/abstractions/policy/policy.service.abstraction.ts
@@ -1,6 +1,7 @@
 import { Observable } from "rxjs";
 
 import { ListResponse } from "../../../models/response/list.response";
+import { UserId } from "../../../types/guid";
 import { PolicyType } from "../../enums";
 import { PolicyData } from "../../models/data/policy.data";
 import { MasterPasswordPolicyOptions } from "../../models/domain/master-password-policy-options";
@@ -10,9 +11,9 @@ import { PolicyResponse } from "../../models/response/policy.response";
 
 export abstract class PolicyService {
   /**
-   * All {@link Policy} objects for the active user (from sync data).
-   * May include policies that are disabled or otherwise do not apply to the user.
-   * @see {@link get$} or {@link policyAppliesToActiveUser$} if you want to know when a policy applies to a user.
+   * All policies for the active user from sync data.
+   * May include policies that are disabled or otherwise do not apply to the user. Be careful using this!
+   * Consider using {@link get$} or {@link getAll$} instead, which will only return policies that should be enforced against the user.
    */
   policies$: Observable<Policy[]>;
 
@@ -20,37 +21,33 @@ export abstract class PolicyService {
    * @returns the first {@link Policy} found that applies to the active user.
    * A policy "applies" if it is enabled and the user is not exempt (e.g. because they are an Owner).
    * @param policyType the {@link PolicyType} to search for
-   * @param policyFilter Optional predicate to apply when filtering policies
+   * @see {@link getAll$} if you need all policies of a given type
    */
-  get$: (policyType: PolicyType, policyFilter?: (policy: Policy) => boolean) => Observable<Policy>;
+  get$: (policyType: PolicyType) => Observable<Policy>;
+
+  /**
+   * @returns all {@link Policy} objects of a given type that apply to the specified user (or the active user if not specified).
+   * A policy "applies" if it is enabled and the user is not exempt (e.g. because they are an Owner).
+   * @param policyType the {@link PolicyType} to search for
+   */
+  getAll$: (policyType: PolicyType, userId?: UserId) => Observable<Policy[]>;
 
   /**
    * All {@link Policy} objects for the specified user (from sync data).
    * May include policies that are disabled or otherwise do not apply to the user.
-   * @see {@link policyAppliesToUser} if you want to know when a policy applies to the user.
-   * @deprecated Use {@link policies$} instead
+   * Consider using {@link getAll$} instead, which will only return policies that should be enforced against the user.
    */
-  getAll: (type?: PolicyType, userId?: string) => Promise<Policy[]>;
+  getAll: (policyType: PolicyType) => Promise<Policy[]>;
 
   /**
-   * @returns true if the {@link PolicyType} applies to the current user, otherwise false.
-   * @remarks A policy "applies" if it is enabled and the user is not exempt (e.g. because they are an Owner).
+   * @returns true if a policy of the specified type applies to the active user, otherwise false.
+   * A policy "applies" if it is enabled and the user is not exempt (e.g. because they are an Owner).
+   * This does not take into account the policy's configuration - if that is important, use {@link getAll$} to get the
+   * {@link Policy} objects and then filter by Policy.data.
    */
-  policyAppliesToActiveUser$: (
-    policyType: PolicyType,
-    policyFilter?: (policy: Policy) => boolean,
-  ) => Observable<boolean>;
+  policyAppliesToActiveUser$: (policyType: PolicyType) => Observable<boolean>;
 
-  /**
-   * @returns true if the {@link PolicyType} applies to the specified user, otherwise false.
-   * @remarks A policy "applies" if it is enabled and the user is not exempt (e.g. because they are an Owner).
-   * @see {@link policyAppliesToActiveUser$} if you only want to know about the current user.
-   */
-  policyAppliesToUser: (
-    policyType: PolicyType,
-    policyFilter?: (policy: Policy) => boolean,
-    userId?: string,
-  ) => Promise<boolean>;
+  policyAppliesToUser: (policyType: PolicyType) => Promise<boolean>;
 
   // Policy specific interfaces
 
@@ -93,7 +90,7 @@ export abstract class PolicyService {
 }
 
 export abstract class InternalPolicyService extends PolicyService {
-  upsert: (policy: PolicyData) => Promise<any>;
+  upsert: (policy: PolicyData) => Promise<void>;
   replace: (policies: { [id: string]: PolicyData }) => Promise<void>;
-  clear: (userId?: string) => Promise<any>;
+  clear: (userId?: string) => Promise<void>;
 }
diff --git a/libs/common/src/admin-console/models/data/policy.data.ts b/libs/common/src/admin-console/models/data/policy.data.ts
index 21ed810952..35846f2072 100644
--- a/libs/common/src/admin-console/models/data/policy.data.ts
+++ b/libs/common/src/admin-console/models/data/policy.data.ts
@@ -1,8 +1,9 @@
+import { PolicyId } from "../../../types/guid";
 import { PolicyType } from "../../enums";
 import { PolicyResponse } from "../response/policy.response";
 
 export class PolicyData {
-  id: string;
+  id: PolicyId;
   organizationId: string;
   type: PolicyType;
   data: Record<string, string | number | boolean>;
diff --git a/libs/common/src/admin-console/models/domain/policy.ts b/libs/common/src/admin-console/models/domain/policy.ts
index 70e9e53704..65af09b588 100644
--- a/libs/common/src/admin-console/models/domain/policy.ts
+++ b/libs/common/src/admin-console/models/domain/policy.ts
@@ -1,9 +1,10 @@
 import Domain from "../../../platform/models/domain/domain-base";
+import { PolicyId } from "../../../types/guid";
 import { PolicyType } from "../../enums";
 import { PolicyData } from "../data/policy.data";
 
 export class Policy extends Domain {
-  id: string;
+  id: PolicyId;
   organizationId: string;
   type: PolicyType;
   data: any;
diff --git a/libs/common/src/admin-console/models/response/policy.response.ts b/libs/common/src/admin-console/models/response/policy.response.ts
index c3c4a5752b..25a1f208a0 100644
--- a/libs/common/src/admin-console/models/response/policy.response.ts
+++ b/libs/common/src/admin-console/models/response/policy.response.ts
@@ -1,8 +1,9 @@
 import { BaseResponse } from "../../../models/response/base.response";
+import { PolicyId } from "../../../types/guid";
 import { PolicyType } from "../../enums";
 
 export class PolicyResponse extends BaseResponse {
-  id: string;
+  id: PolicyId;
   organizationId: string;
   type: PolicyType;
   data: any;
diff --git a/libs/common/src/admin-console/services/policy/policy.service.spec.ts b/libs/common/src/admin-console/services/policy/policy.service.spec.ts
index 9d585114e0..672a53d34e 100644
--- a/libs/common/src/admin-console/services/policy/policy.service.spec.ts
+++ b/libs/common/src/admin-console/services/policy/policy.service.spec.ts
@@ -1,5 +1,5 @@
 import { mock, MockProxy } from "jest-mock-extended";
-import { BehaviorSubject, firstValueFrom } from "rxjs";
+import { firstValueFrom, of } from "rxjs";
 
 import { FakeStateProvider, mockAccountServiceWith } from "../../../../spec";
 import { FakeActiveUserState } from "../../../../spec/fake-state";
@@ -19,71 +19,51 @@ import { ResetPasswordPolicyOptions } from "../../../admin-console/models/domain
 import { PolicyResponse } from "../../../admin-console/models/response/policy.response";
 import { POLICIES, PolicyService } from "../../../admin-console/services/policy/policy.service";
 import { ListResponse } from "../../../models/response/list.response";
-import { CryptoService } from "../../../platform/abstractions/crypto.service";
-import { EncryptService } from "../../../platform/abstractions/encrypt.service";
-import { ContainerService } from "../../../platform/services/container.service";
-import { StateService } from "../../../platform/services/state.service";
 import { PolicyId, UserId } from "../../../types/guid";
 
 describe("PolicyService", () => {
-  let policyService: PolicyService;
-
-  let cryptoService: MockProxy<CryptoService>;
-  let stateService: MockProxy<StateService>;
   let stateProvider: FakeStateProvider;
   let organizationService: MockProxy<OrganizationService>;
-  let encryptService: MockProxy<EncryptService>;
-  let activeAccount: BehaviorSubject<string>;
-  let activeAccountUnlocked: BehaviorSubject<boolean>;
+  let activeUserState: FakeActiveUserState<Record<PolicyId, PolicyData>>;
+
+  let policyService: PolicyService;
 
   beforeEach(() => {
-    stateService = mock<StateService>();
-
     const accountService = mockAccountServiceWith("userId" as UserId);
     stateProvider = new FakeStateProvider(accountService);
     organizationService = mock<OrganizationService>();
-    organizationService.getAll
-      .calledWith("user")
-      .mockResolvedValue([
-        new Organization(
-          organizationData(
-            "test-organization",
-            true,
-            true,
-            OrganizationUserStatusType.Accepted,
-            false,
-          ),
-        ),
-      ]);
-    organizationService.getAll.calledWith(undefined).mockResolvedValue([]);
-    organizationService.getAll.calledWith(null).mockResolvedValue([]);
-    activeAccount = new BehaviorSubject("123");
-    activeAccountUnlocked = new BehaviorSubject(true);
-    stateService.getDecryptedPolicies.calledWith({ userId: "user" }).mockResolvedValue(null);
-    stateService.getEncryptedPolicies.calledWith({ userId: "user" }).mockResolvedValue({
-      "1": policyData("1", "test-organization", PolicyType.MaximumVaultTimeout, true, {
-        minutes: 14,
-      }),
-    });
-    stateService.getEncryptedPolicies.mockResolvedValue({
-      "1": policyData("1", "test-organization", PolicyType.MaximumVaultTimeout, true, {
-        minutes: 14,
-      }),
-    });
-    stateService.activeAccount$ = activeAccount;
-    stateService.activeAccountUnlocked$ = activeAccountUnlocked;
-    stateService.getUserId.mockResolvedValue("user");
-    (window as any).bitwardenContainerService = new ContainerService(cryptoService, encryptService);
 
-    policyService = new PolicyService(stateService, stateProvider, organizationService);
-  });
+    activeUserState = stateProvider.activeUser.getFake(POLICIES);
+    organizationService.organizations$ = of([
+      // User
+      organization("org1", true, true, OrganizationUserStatusType.Confirmed, false),
+      // Owner
+      organization(
+        "org2",
+        true,
+        true,
+        OrganizationUserStatusType.Confirmed,
+        false,
+        OrganizationUserType.Owner,
+      ),
+      // Does not use policies
+      organization("org3", true, false, OrganizationUserStatusType.Confirmed, false),
+      // Another User
+      organization("org4", true, true, OrganizationUserStatusType.Confirmed, false),
+      // Another User
+      organization("org5", true, true, OrganizationUserStatusType.Confirmed, false),
+    ]);
 
-  afterEach(() => {
-    activeAccount.complete();
-    activeAccountUnlocked.complete();
+    policyService = new PolicyService(stateProvider, organizationService);
   });
 
   it("upsert", async () => {
+    activeUserState.nextState(
+      arrayToRecord([
+        policyData("1", "test-organization", PolicyType.MaximumVaultTimeout, true, { minutes: 14 }),
+      ]),
+    );
+
     await policyService.upsert(policyData("99", "test-organization", PolicyType.DisableSend, true));
 
     expect(await firstValueFrom(policyService.policies$)).toEqual([
@@ -104,6 +84,12 @@ describe("PolicyService", () => {
   });
 
   it("replace", async () => {
+    activeUserState.nextState(
+      arrayToRecord([
+        policyData("1", "test-organization", PolicyType.MaximumVaultTimeout, true, { minutes: 14 }),
+      ]),
+    );
+
     await policyService.replace({
       "2": policyData("2", "test-organization", PolicyType.DisableSend, true),
     });
@@ -118,37 +104,63 @@ describe("PolicyService", () => {
     ]);
   });
 
-  it("locking should clear", async () => {
-    activeAccountUnlocked.next(false);
-    // Sleep for 100ms to avoid timing issues
-    await new Promise((r) => setTimeout(r, 100));
-
-    expect((await firstValueFrom(policyService.policies$)).length).toBe(0);
-  });
-
   describe("clear", () => {
-    it("null userId", async () => {
+    beforeEach(() => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("1", "test-organization", PolicyType.MaximumVaultTimeout, true, {
+            minutes: 14,
+          }),
+        ]),
+      );
+    });
+
+    it("clears state for the active user", async () => {
       await policyService.clear();
 
-      expect(stateService.setEncryptedPolicies).toBeCalledTimes(1);
-
-      expect((await firstValueFrom(policyService.policies$)).length).toBe(0);
+      expect(await firstValueFrom(policyService.policies$)).toEqual([]);
+      expect(await firstValueFrom(activeUserState.state$)).toEqual(null);
+      expect(stateProvider.activeUser.getFake(POLICIES).nextMock).toHaveBeenCalledWith([
+        "userId",
+        null,
+      ]);
     });
 
-    it("matching userId", async () => {
-      await policyService.clear("user");
+    it("clears state for an inactive user", async () => {
+      const inactiveUserId = "someOtherUserId" as UserId;
+      const inactiveUserState = stateProvider.singleUser.getFake(inactiveUserId, POLICIES);
+      inactiveUserState.nextState(
+        arrayToRecord([
+          policyData("10", "another-test-organization", PolicyType.PersonalOwnership, true),
+        ]),
+      );
 
-      expect(stateService.setEncryptedPolicies).toBeCalledTimes(1);
+      await policyService.clear(inactiveUserId);
 
-      expect((await firstValueFrom(policyService.policies$)).length).toBe(0);
-    });
+      // Active user is not affected
+      const expectedActiveUserPolicy: Partial<Policy> = {
+        id: "1" as PolicyId,
+        organizationId: "test-organization",
+        type: PolicyType.MaximumVaultTimeout,
+        enabled: true,
+        data: { minutes: 14 },
+      };
+      expect(await firstValueFrom(policyService.policies$)).toEqual([expectedActiveUserPolicy]);
+      expect(await firstValueFrom(activeUserState.state$)).toEqual({
+        "1": expectedActiveUserPolicy,
+      });
+      expect(stateProvider.activeUser.getFake(POLICIES).nextMock).not.toHaveBeenCalled();
 
-    it("mismatching userId", async () => {
-      await policyService.clear("12");
-
-      expect(stateService.setEncryptedPolicies).toBeCalledTimes(1);
-
-      expect((await firstValueFrom(policyService.policies$)).length).toBe(1);
+      // Non-active user is cleared
+      expect(
+        await firstValueFrom(
+          policyService.getAll$(PolicyType.PersonalOwnership, "someOtherUserId" as UserId),
+        ),
+      ).toEqual([]);
+      expect(await firstValueFrom(inactiveUserState.state$)).toEqual(null);
+      expect(
+        stateProvider.singleUser.getFake("someOtherUserId" as UserId, POLICIES).nextMock,
+      ).toHaveBeenCalledWith(null);
     });
   });
 
@@ -313,300 +325,260 @@ describe("PolicyService", () => {
     });
   });
 
+  describe("get$", () => {
+    it("returns the specified PolicyType", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy2", "org1", PolicyType.DisablePersonalVaultExport, true),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.get$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toEqual({
+        id: "policy2",
+        organizationId: "org1",
+        type: PolicyType.DisablePersonalVaultExport,
+        enabled: true,
+      });
+    });
+
+    it("does not return disabled policies", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy2", "org1", PolicyType.DisablePersonalVaultExport, false),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.get$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toBeNull();
+    });
+
+    it("does not return policies that do not apply to the user because the user's role is exempt", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy2", "org2", PolicyType.DisablePersonalVaultExport, false),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.get$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toBeNull();
+    });
+
+    it("does not return policies for organizations that do not use policies", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org3", PolicyType.ActivateAutofill, true),
+          policyData("policy2", "org2", PolicyType.DisablePersonalVaultExport, true),
+        ]),
+      );
+
+      const result = await firstValueFrom(policyService.get$(PolicyType.ActivateAutofill));
+
+      expect(result).toBeNull();
+    });
+  });
+
+  describe("getAll$", () => {
+    it("returns the specified PolicyTypes", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.getAll$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toEqual([
+        {
+          id: "policy1",
+          organizationId: "org4",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+        {
+          id: "policy3",
+          organizationId: "org5",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+        {
+          id: "policy4",
+          organizationId: "org1",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+      ]);
+    });
+
+    it("does not return disabled policies", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, false), // disabled
+          policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.getAll$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toEqual([
+        {
+          id: "policy1",
+          organizationId: "org4",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+        {
+          id: "policy4",
+          organizationId: "org1",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+      ]);
+    });
+
+    it("does not return policies that do not apply to the user because the user's role is exempt", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy4", "org2", PolicyType.DisablePersonalVaultExport, true), // owner
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.getAll$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toEqual([
+        {
+          id: "policy1",
+          organizationId: "org4",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+        {
+          id: "policy3",
+          organizationId: "org5",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+      ]);
+    });
+
+    it("does not return policies for organizations that do not use policies", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org3", PolicyType.DisablePersonalVaultExport, true), // does not use policies
+          policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
+        ]),
+      );
+
+      const result = await firstValueFrom(
+        policyService.getAll$(PolicyType.DisablePersonalVaultExport),
+      );
+
+      expect(result).toEqual([
+        {
+          id: "policy1",
+          organizationId: "org4",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+        {
+          id: "policy4",
+          organizationId: "org1",
+          type: PolicyType.DisablePersonalVaultExport,
+          enabled: true,
+        },
+      ]);
+    });
+  });
+
   describe("policyAppliesToActiveUser$", () => {
-    it("MasterPassword does not apply", async () => {
-      const result = await firstValueFrom(
-        policyService.policyAppliesToActiveUser$(PolicyType.MasterPassword),
+    it("returns true when the policyType applies to the user", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, true),
+          policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
+        ]),
       );
 
-      expect(result).toEqual(false);
-    });
-
-    it("MaximumVaultTimeout applies", async () => {
-      const result = await firstValueFrom(
-        policyService.policyAppliesToActiveUser$(PolicyType.MaximumVaultTimeout),
-      );
-
-      expect(result).toEqual(true);
-    });
-
-    it("PolicyFilter filters result", async () => {
-      const result = await firstValueFrom(
-        policyService.policyAppliesToActiveUser$(PolicyType.MaximumVaultTimeout, (p) => false),
-      );
-
-      expect(result).toEqual(false);
-    });
-
-    it("DisablePersonalVaultExport does not apply", async () => {
       const result = await firstValueFrom(
         policyService.policyAppliesToActiveUser$(PolicyType.DisablePersonalVaultExport),
       );
 
-      expect(result).toEqual(false);
+      expect(result).toBe(true);
     });
-  });
 
-  describe("policyAppliesToUser", () => {
-    it("MasterPassword does not apply", async () => {
-      const result = await policyService.policyAppliesToUser(
-        PolicyType.MasterPassword,
-        null,
-        "user",
+    it("returns false when policyType is disabled", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, false), // disabled
+        ]),
       );
 
-      expect(result).toEqual(false);
-    });
-
-    it("MaximumVaultTimeout applies", async () => {
-      const result = await policyService.policyAppliesToUser(
-        PolicyType.MaximumVaultTimeout,
-        null,
-        "user",
+      const result = await firstValueFrom(
+        policyService.policyAppliesToActiveUser$(PolicyType.DisablePersonalVaultExport),
       );
 
-      expect(result).toEqual(true);
+      expect(result).toBe(false);
     });
 
-    it("PolicyFilter filters result", async () => {
-      const result = await policyService.policyAppliesToUser(
-        PolicyType.MaximumVaultTimeout,
-        (p) => false,
-        "user",
+    it("returns false when the policyType does not apply to the user because the user's role is exempt", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy4", "org2", PolicyType.DisablePersonalVaultExport, true), // owner
+        ]),
       );
 
-      expect(result).toEqual(false);
-    });
-
-    it("DisablePersonalVaultExport does not apply", async () => {
-      const result = await policyService.policyAppliesToUser(
-        PolicyType.DisablePersonalVaultExport,
-        null,
-        "user",
+      const result = await firstValueFrom(
+        policyService.policyAppliesToActiveUser$(PolicyType.DisablePersonalVaultExport),
       );
 
-      expect(result).toEqual(false);
-    });
-  });
-
-  // TODO: remove this nesting once fully migrated to StateProvider
-  describe("stateProvider methods", () => {
-    let policyState$: FakeActiveUserState<Record<PolicyId, PolicyData>>;
-
-    beforeEach(() => {
-      policyState$ = stateProvider.activeUser.getFake(POLICIES);
-      organizationService.organizations$ = new BehaviorSubject([
-        // User
-        organization("org1", true, true, OrganizationUserStatusType.Confirmed, false),
-        // Owner
-        organization(
-          "org2",
-          true,
-          true,
-          OrganizationUserStatusType.Confirmed,
-          false,
-          OrganizationUserType.Owner,
-        ),
-        // Does not use policies
-        organization("org3", true, false, OrganizationUserStatusType.Confirmed, false),
-        // Another User
-        organization("org4", true, true, OrganizationUserStatusType.Confirmed, false),
-        // Another User
-        organization("org5", true, true, OrganizationUserStatusType.Confirmed, false),
-      ]);
+      expect(result).toBe(false);
     });
 
-    describe("get_vNext$", () => {
-      it("returns the specified PolicyType", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy2", "org1", PolicyType.DisablePersonalVaultExport, true),
-          ]),
-        );
+    it("returns false for organizations that do not use policies", async () => {
+      activeUserState.nextState(
+        arrayToRecord([
+          policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
+          policyData("policy3", "org3", PolicyType.DisablePersonalVaultExport, true), // does not use policies
+        ]),
+      );
 
-        const result = await firstValueFrom(
-          policyService.get_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
+      const result = await firstValueFrom(
+        policyService.policyAppliesToActiveUser$(PolicyType.DisablePersonalVaultExport),
+      );
 
-        expect(result).toEqual({
-          id: "policy2",
-          organizationId: "org1",
-          type: PolicyType.DisablePersonalVaultExport,
-          enabled: true,
-        });
-      });
-
-      it("does not return disabled policies", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy2", "org1", PolicyType.DisablePersonalVaultExport, false),
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.get_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toBeNull();
-      });
-
-      it("does not return policies that do not apply to the user because the user's role is exempt", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy2", "org2", PolicyType.DisablePersonalVaultExport, false),
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.get_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toBeNull();
-      });
-
-      it("does not return policies for organizations that do not use policies", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org3", PolicyType.ActivateAutofill, true),
-            policyData("policy2", "org2", PolicyType.DisablePersonalVaultExport, true),
-          ]),
-        );
-
-        const result = await firstValueFrom(policyService.get_vNext$(PolicyType.ActivateAutofill));
-
-        expect(result).toBeNull();
-      });
-    });
-
-    describe("getAll_vNext$", () => {
-      it("returns the specified PolicyTypes", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.getAll_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toEqual([
-          {
-            id: "policy1",
-            organizationId: "org4",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-          {
-            id: "policy3",
-            organizationId: "org5",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-          {
-            id: "policy4",
-            organizationId: "org1",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-        ]);
-      });
-
-      it("does not return disabled policies", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, false), // disabled
-            policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.getAll_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toEqual([
-          {
-            id: "policy1",
-            organizationId: "org4",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-          {
-            id: "policy4",
-            organizationId: "org1",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-        ]);
-      });
-
-      it("does not return policies that do not apply to the user because the user's role is exempt", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy3", "org5", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy4", "org2", PolicyType.DisablePersonalVaultExport, true), // owner
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.getAll_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toEqual([
-          {
-            id: "policy1",
-            organizationId: "org4",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-          {
-            id: "policy3",
-            organizationId: "org5",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-        ]);
-      });
-
-      it("does not return policies for organizations that do not use policies", async () => {
-        policyState$.nextState(
-          arrayToRecord([
-            policyData("policy1", "org4", PolicyType.DisablePersonalVaultExport, true),
-            policyData("policy2", "org1", PolicyType.ActivateAutofill, true),
-            policyData("policy3", "org3", PolicyType.DisablePersonalVaultExport, true), // does not use policies
-            policyData("policy4", "org1", PolicyType.DisablePersonalVaultExport, true),
-          ]),
-        );
-
-        const result = await firstValueFrom(
-          policyService.getAll_vNext$(PolicyType.DisablePersonalVaultExport),
-        );
-
-        expect(result).toEqual([
-          {
-            id: "policy1",
-            organizationId: "org4",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-          {
-            id: "policy4",
-            organizationId: "org1",
-            type: PolicyType.DisablePersonalVaultExport,
-            enabled: true,
-          },
-        ]);
-      });
+      expect(result).toBe(false);
     });
   });
 
@@ -618,7 +590,7 @@ describe("PolicyService", () => {
     data?: any,
   ) {
     const policyData = new PolicyData({} as any);
-    policyData.id = id;
+    policyData.id = id as PolicyId;
     policyData.organizationId = organizationId;
     policyData.type = type;
     policyData.enabled = enabled;
diff --git a/libs/common/src/admin-console/services/policy/policy.service.ts b/libs/common/src/admin-console/services/policy/policy.service.ts
index 2f8c8ed802..4672d9b810 100644
--- a/libs/common/src/admin-console/services/policy/policy.service.ts
+++ b/libs/common/src/admin-console/services/policy/policy.service.ts
@@ -1,8 +1,6 @@
-import { BehaviorSubject, combineLatest, concatMap, map, Observable, of } from "rxjs";
+import { combineLatest, firstValueFrom, map, Observable, of } from "rxjs";
 
 import { ListResponse } from "../../../models/response/list.response";
-import { StateService } from "../../../platform/abstractions/state.service";
-import { Utils } from "../../../platform/misc/utils";
 import { KeyDefinition, POLICIES_DISK, StateProvider } from "../../../platform/state";
 import { PolicyId, UserId } from "../../../types/guid";
 import { OrganizationService } from "../../abstractions/organization/organization.service.abstraction";
@@ -23,42 +21,19 @@ export const POLICIES = KeyDefinition.record<PolicyData, PolicyId>(POLICIES_DISK
 });
 
 export class PolicyService implements InternalPolicyServiceAbstraction {
-  protected _policies: BehaviorSubject<Policy[]> = new BehaviorSubject([]);
-
-  policies$ = this._policies.asObservable();
-
   private activeUserPolicyState = this.stateProvider.getActive(POLICIES);
-  activeUserPolicies$ = this.activeUserPolicyState.state$.pipe(
+  private activeUserPolicies$ = this.activeUserPolicyState.state$.pipe(
     map((policyData) => policyRecordToArray(policyData)),
   );
 
+  policies$ = this.activeUserPolicies$;
+
   constructor(
-    protected stateService: StateService,
     private stateProvider: StateProvider,
     private organizationService: OrganizationService,
-  ) {
-    this.stateService.activeAccountUnlocked$
-      .pipe(
-        concatMap(async (unlocked) => {
-          if (Utils.global.bitwardenContainerService == null) {
-            return;
-          }
+  ) {}
 
-          if (!unlocked) {
-            this._policies.next([]);
-            return;
-          }
-
-          const data = await this.stateService.getEncryptedPolicies();
-
-          await this.updateObservables(data);
-        }),
-      )
-      .subscribe();
-  }
-
-  // --- StateProvider methods - not yet wired up
-  get_vNext$(policyType: PolicyType) {
+  get$(policyType: PolicyType) {
     const filteredPolicies$ = this.activeUserPolicies$.pipe(
       map((policies) => policies.filter((p) => p.type === policyType)),
     );
@@ -71,7 +46,7 @@ export class PolicyService implements InternalPolicyServiceAbstraction {
     );
   }
 
-  getAll_vNext$(policyType: PolicyType, userId?: UserId) {
+  getAll$(policyType: PolicyType, userId?: UserId) {
     const filteredPolicies$ = this.stateProvider.getUserState$(POLICIES, userId).pipe(
       map((policyData) => policyRecordToArray(policyData)),
       map((policies) => policies.filter((p) => p.type === policyType)),
@@ -82,8 +57,18 @@ export class PolicyService implements InternalPolicyServiceAbstraction {
     );
   }
 
-  policyAppliesToActiveUser_vNext$(policyType: PolicyType) {
-    return this.get_vNext$(policyType).pipe(map((policy) => policy != null));
+  async getAll(policyType: PolicyType) {
+    return await firstValueFrom(
+      this.policies$.pipe(map((policies) => policies.filter((p) => p.type === policyType))),
+    );
+  }
+
+  policyAppliesToActiveUser$(policyType: PolicyType) {
+    return this.get$(policyType).pipe(map((policy) => policy != null));
+  }
+
+  async policyAppliesToUser(policyType: PolicyType) {
+    return await firstValueFrom(this.policyAppliesToActiveUser$(policyType));
   }
 
   private enforcedPolicyFilter(policies: Policy[], organizations: Organization[]) {
@@ -105,45 +90,6 @@ export class PolicyService implements InternalPolicyServiceAbstraction {
       );
     });
   }
-  // --- End StateProvider methods
-
-  get$(policyType: PolicyType, policyFilter?: (policy: Policy) => boolean): Observable<Policy> {
-    return this.policies$.pipe(
-      concatMap(async (policies) => {
-        const userId = await this.stateService.getUserId();
-        const appliesToCurrentUser = await this.checkPoliciesThatApplyToUser(
-          policies,
-          policyType,
-          policyFilter,
-          userId,
-        );
-        if (appliesToCurrentUser) {
-          return policies.find((policy) => policy.type === policyType && policy.enabled);
-        }
-      }),
-    );
-  }
-
-  async getAll(type?: PolicyType, userId?: string): Promise<Policy[]> {
-    let response: Policy[] = [];
-    const decryptedPolicies = await this.stateService.getDecryptedPolicies({ userId: userId });
-    if (decryptedPolicies != null) {
-      response = decryptedPolicies;
-    } else {
-      const diskPolicies = await this.stateService.getEncryptedPolicies({ userId: userId });
-      for (const id in diskPolicies) {
-        if (Object.prototype.hasOwnProperty.call(diskPolicies, id)) {
-          response.push(new Policy(diskPolicies[id]));
-        }
-      }
-      await this.stateService.setDecryptedPolicies(response, { userId: userId });
-    }
-    if (type != null) {
-      return response.filter((policy) => policy.type === type);
-    } else {
-      return response;
-    }
-  }
 
   masterPasswordPolicyOptions$(policies?: Policy[]): Observable<MasterPasswordPolicyOptions> {
     const observable = policies ? of(policies) : this.policies$;
@@ -205,15 +151,6 @@ export class PolicyService implements InternalPolicyServiceAbstraction {
     );
   }
 
-  policyAppliesToActiveUser$(policyType: PolicyType, policyFilter?: (policy: Policy) => boolean) {
-    return this.policies$.pipe(
-      concatMap(async (policies) => {
-        const userId = await this.stateService.getUserId();
-        return await this.checkPoliciesThatApplyToUser(policies, policyType, policyFilter, userId);
-      }),
-    );
-  }
-
   evaluateMasterPassword(
     passwordStrength: number,
     newPassword: string,
@@ -288,68 +225,20 @@ export class PolicyService implements InternalPolicyServiceAbstraction {
     return policiesResponse.data.map((response) => this.mapPolicyFromResponse(response));
   }
 
-  async policyAppliesToUser(
-    policyType: PolicyType,
-    policyFilter?: (policy: Policy) => boolean,
-    userId?: string,
-  ) {
-    const policies = await this.getAll(policyType, userId);
-
-    return this.checkPoliciesThatApplyToUser(policies, policyType, policyFilter, userId);
-  }
-
-  async upsert(policy: PolicyData): Promise<any> {
-    let policies = await this.stateService.getEncryptedPolicies();
-    if (policies == null) {
-      policies = {};
-    }
-
-    policies[policy.id] = policy;
-
-    await this.updateObservables(policies);
-    await this.stateService.setDecryptedPolicies(null);
-    await this.stateService.setEncryptedPolicies(policies);
+  async upsert(policy: PolicyData): Promise<void> {
+    await this.activeUserPolicyState.update((policies) => {
+      policies ??= {};
+      policies[policy.id] = policy;
+      return policies;
+    });
   }
 
   async replace(policies: { [id: string]: PolicyData }): Promise<void> {
-    await this.updateObservables(policies);
-    await this.stateService.setDecryptedPolicies(null);
-    await this.stateService.setEncryptedPolicies(policies);
+    await this.activeUserPolicyState.update(() => policies);
   }
 
-  async clear(userId?: string): Promise<void> {
-    if (userId == null || userId == (await this.stateService.getUserId())) {
-      this._policies.next([]);
-    }
-    await this.stateService.setDecryptedPolicies(null, { userId: userId });
-    await this.stateService.setEncryptedPolicies(null, { userId: userId });
-  }
-
-  private async updateObservables(policiesMap: { [id: string]: PolicyData }) {
-    const policies = Object.values(policiesMap || {}).map((f) => new Policy(f));
-
-    this._policies.next(policies);
-  }
-
-  private async checkPoliciesThatApplyToUser(
-    policies: Policy[],
-    policyType: PolicyType,
-    policyFilter?: (policy: Policy) => boolean,
-    userId?: string,
-  ) {
-    const organizations = await this.organizationService.getAll(userId);
-    const filteredPolicies = policies.filter(
-      (p) => p.type === policyType && p.enabled && (policyFilter == null || policyFilter(p)),
-    );
-    const policySet = new Set(filteredPolicies.map((p) => p.organizationId));
-
-    return organizations.some(
-      (o) =>
-        o.status >= OrganizationUserStatusType.Accepted &&
-        o.usePolicies &&
-        policySet.has(o.id) &&
-        !this.isExemptFromPolicy(policyType, o),
-    );
+  async clear(userId?: UserId): Promise<void> {
+    await this.stateProvider.setUserState(POLICIES, null, userId);
   }
 
   /**
diff --git a/libs/common/src/platform/abstractions/state.service.ts b/libs/common/src/platform/abstractions/state.service.ts
index 18b2f79483..4061769461 100644
--- a/libs/common/src/platform/abstractions/state.service.ts
+++ b/libs/common/src/platform/abstractions/state.service.ts
@@ -1,8 +1,6 @@
 import { Observable } from "rxjs";
 
 import { OrganizationData } from "../../admin-console/models/data/organization.data";
-import { PolicyData } from "../../admin-console/models/data/policy.data";
-import { Policy } from "../../admin-console/models/domain/policy";
 import { AdminAuthRequestStorable } from "../../auth/models/domain/admin-auth-req-storable";
 import { ForceSetPasswordReason } from "../../auth/models/domain/force-set-password-reason";
 import { KdfConfig } from "../../auth/models/domain/kdf-config";
@@ -181,14 +179,6 @@ export abstract class StateService<T extends Account = Account> {
    * @deprecated For migration purposes only, use setDecryptedUserKeyPin instead
    */
   setDecryptedPinProtected: (value: EncString, options?: StorageOptions) => Promise<void>;
-  /**
-   * @deprecated Do not call this, use PolicyService
-   */
-  getDecryptedPolicies: (options?: StorageOptions) => Promise<Policy[]>;
-  /**
-   * @deprecated Do not call this, use PolicyService
-   */
-  setDecryptedPolicies: (value: Policy[], options?: StorageOptions) => Promise<void>;
   /**
    * @deprecated Do not call this directly, use SendService
    */
@@ -279,17 +269,6 @@ export abstract class StateService<T extends Account = Account> {
    * @deprecated For migration purposes only, use setEncryptedUserKeyPin instead
    */
   setEncryptedPinProtected: (value: string, options?: StorageOptions) => Promise<void>;
-  /**
-   * @deprecated Do not call this directly, use PolicyService
-   */
-  getEncryptedPolicies: (options?: StorageOptions) => Promise<{ [id: string]: PolicyData }>;
-  /**
-   * @deprecated Do not call this directly, use PolicyService
-   */
-  setEncryptedPolicies: (
-    value: { [id: string]: PolicyData },
-    options?: StorageOptions,
-  ) => Promise<void>;
   /**
    * @deprecated Do not call this directly, use SendService
    */
diff --git a/libs/common/src/platform/models/domain/account.ts b/libs/common/src/platform/models/domain/account.ts
index 2b2024270f..32b1de9c8f 100644
--- a/libs/common/src/platform/models/domain/account.ts
+++ b/libs/common/src/platform/models/domain/account.ts
@@ -1,8 +1,6 @@
 import { Jsonify } from "type-fest";
 
 import { OrganizationData } from "../../../admin-console/models/data/organization.data";
-import { PolicyData } from "../../../admin-console/models/data/policy.data";
-import { Policy } from "../../../admin-console/models/domain/policy";
 import { AdminAuthRequestStorable } from "../../../auth/models/domain/admin-auth-req-storable";
 import { ForceSetPasswordReason } from "../../../auth/models/domain/force-set-password-reason";
 import { KeyConnectorUserDecryptionOption } from "../../../auth/models/domain/user-decryption-options/key-connector-user-decryption-option";
@@ -87,7 +85,6 @@ export class AccountData {
   >();
   localData?: any;
   sends?: DataEncryptionPair<SendData, SendView> = new DataEncryptionPair<SendData, SendView>();
-  policies?: DataEncryptionPair<PolicyData, Policy> = new DataEncryptionPair<PolicyData, Policy>();
   passwordGenerationHistory?: EncryptionPair<
     GeneratedPasswordHistory[],
     GeneratedPasswordHistory[]
diff --git a/libs/common/src/platform/services/state.service.ts b/libs/common/src/platform/services/state.service.ts
index 67c71c610d..357bd27173 100644
--- a/libs/common/src/platform/services/state.service.ts
+++ b/libs/common/src/platform/services/state.service.ts
@@ -2,8 +2,6 @@ import { BehaviorSubject, Observable, map } from "rxjs";
 import { Jsonify, JsonValue } from "type-fest";
 
 import { OrganizationData } from "../../admin-console/models/data/organization.data";
-import { PolicyData } from "../../admin-console/models/data/policy.data";
-import { Policy } from "../../admin-console/models/domain/policy";
 import { AccountService } from "../../auth/abstractions/account.service";
 import { AuthenticationStatus } from "../../auth/enums/authentication-status";
 import { AdminAuthRequestStorable } from "../../auth/models/domain/admin-auth-req-storable";
@@ -799,24 +797,6 @@ export class StateService<
     );
   }
 
-  @withPrototypeForArrayMembers(Policy)
-  async getDecryptedPolicies(options?: StorageOptions): Promise<Policy[]> {
-    return (
-      await this.getAccount(this.reconcileOptions(options, await this.defaultInMemoryOptions()))
-    )?.data?.policies?.decrypted;
-  }
-
-  async setDecryptedPolicies(value: Policy[], options?: StorageOptions): Promise<void> {
-    const account = await this.getAccount(
-      this.reconcileOptions(options, await this.defaultInMemoryOptions()),
-    );
-    account.data.policies.decrypted = value;
-    await this.saveAccount(
-      account,
-      this.reconcileOptions(options, await this.defaultInMemoryOptions()),
-    );
-  }
-
   @withPrototypeForArrayMembers(SendView)
   async getDecryptedSends(options?: StorageOptions): Promise<SendView[]> {
     return (
@@ -1350,27 +1330,6 @@ export class StateService<
     );
   }
 
-  @withPrototypeForObjectValues(PolicyData)
-  async getEncryptedPolicies(options?: StorageOptions): Promise<{ [id: string]: PolicyData }> {
-    return (
-      await this.getAccount(this.reconcileOptions(options, await this.defaultOnDiskOptions()))
-    )?.data?.policies?.encrypted;
-  }
-
-  async setEncryptedPolicies(
-    value: { [id: string]: PolicyData },
-    options?: StorageOptions,
-  ): Promise<void> {
-    const account = await this.getAccount(
-      this.reconcileOptions(options, await this.defaultOnDiskOptions()),
-    );
-    account.data.policies.encrypted = value;
-    await this.saveAccount(
-      account,
-      this.reconcileOptions(options, await this.defaultOnDiskOptions()),
-    );
-  }
-
   @withPrototypeForObjectValues(SendData)
   async getEncryptedSends(options?: StorageOptions): Promise<{ [id: string]: SendData }> {
     return (
diff --git a/libs/common/src/services/vault-timeout/vault-timeout-settings.service.spec.ts b/libs/common/src/services/vault-timeout/vault-timeout-settings.service.spec.ts
index f1881080d9..7eee456775 100644
--- a/libs/common/src/services/vault-timeout/vault-timeout-settings.service.spec.ts
+++ b/libs/common/src/services/vault-timeout/vault-timeout-settings.service.spec.ts
@@ -110,9 +110,8 @@ describe("VaultTimeoutSettingsService", () => {
           stateService.getAccountDecryptionOptions.mockResolvedValue(
             new AccountDecryptionOptions({ hasMasterPassword: true }),
           );
-          policyService.policyAppliesToUser.mockResolvedValue(policy === null ? false : true);
-          policyService.getAll.mockResolvedValue(
-            policy === null ? [] : ([{ data: { action: policy } }] as unknown as Policy[]),
+          policyService.getAll$.mockReturnValue(
+            of(policy === null ? [] : ([{ data: { action: policy } }] as unknown as Policy[])),
           );
           stateService.getVaultTimeoutAction.mockResolvedValue(userPreference);
 
@@ -140,9 +139,8 @@ describe("VaultTimeoutSettingsService", () => {
           stateService.getAccountDecryptionOptions.mockResolvedValue(
             new AccountDecryptionOptions({ hasMasterPassword: false }),
           );
-          policyService.policyAppliesToUser.mockResolvedValue(policy === null ? false : true);
-          policyService.getAll.mockResolvedValue(
-            policy === null ? [] : ([{ data: { action: policy } }] as unknown as Policy[]),
+          policyService.getAll$.mockReturnValue(
+            of(policy === null ? [] : ([{ data: { action: policy } }] as unknown as Policy[])),
           );
           stateService.getVaultTimeoutAction.mockResolvedValue(userPreference);
 
diff --git a/libs/common/src/services/vault-timeout/vault-timeout-settings.service.ts b/libs/common/src/services/vault-timeout/vault-timeout-settings.service.ts
index e84d561fe6..0d0eb508cb 100644
--- a/libs/common/src/services/vault-timeout/vault-timeout-settings.service.ts
+++ b/libs/common/src/services/vault-timeout/vault-timeout-settings.service.ts
@@ -84,18 +84,18 @@ export class VaultTimeoutSettingsService implements VaultTimeoutSettingsServiceA
     return await biometricUnlockPromise;
   }
 
-  async getVaultTimeout(userId?: string): Promise<number> {
+  async getVaultTimeout(userId?: UserId): Promise<number> {
     const vaultTimeout = await this.stateService.getVaultTimeout({ userId });
+    const policies = await firstValueFrom(
+      this.policyService.getAll$(PolicyType.MaximumVaultTimeout, userId),
+    );
 
-    if (
-      await this.policyService.policyAppliesToUser(PolicyType.MaximumVaultTimeout, null, userId)
-    ) {
-      const policy = await this.policyService.getAll(PolicyType.MaximumVaultTimeout, userId);
+    if (policies?.length) {
       // Remove negative values, and ensure it's smaller than maximum allowed value according to policy
-      let timeout = Math.min(vaultTimeout, policy[0].data.minutes);
+      let timeout = Math.min(vaultTimeout, policies[0].data.minutes);
 
       if (vaultTimeout == null || timeout < 0) {
-        timeout = policy[0].data.minutes;
+        timeout = policies[0].data.minutes;
       }
 
       // TODO @jlf0dev: Can we move this somwhere else? Maybe add it to the initialization process?
@@ -111,23 +111,23 @@ export class VaultTimeoutSettingsService implements VaultTimeoutSettingsServiceA
     return vaultTimeout;
   }
 
-  vaultTimeoutAction$(userId?: string) {
+  vaultTimeoutAction$(userId?: UserId) {
     return defer(() => this.getVaultTimeoutAction(userId));
   }
 
-  async getVaultTimeoutAction(userId?: string): Promise<VaultTimeoutAction> {
+  async getVaultTimeoutAction(userId?: UserId): Promise<VaultTimeoutAction> {
     const availableActions = await this.getAvailableVaultTimeoutActions();
     if (availableActions.length === 1) {
       return availableActions[0];
     }
 
     const vaultTimeoutAction = await this.stateService.getVaultTimeoutAction({ userId: userId });
+    const policies = await firstValueFrom(
+      this.policyService.getAll$(PolicyType.MaximumVaultTimeout, userId),
+    );
 
-    if (
-      await this.policyService.policyAppliesToUser(PolicyType.MaximumVaultTimeout, null, userId)
-    ) {
-      const policy = await this.policyService.getAll(PolicyType.MaximumVaultTimeout, userId);
-      const action = policy[0].data.action;
+    if (policies?.length) {
+      const action = policies[0].data.action;
       // We really shouldn't need to set the value here, but multiple services relies on this value being correct.
       if (action && vaultTimeoutAction !== action) {
         await this.stateService.setVaultTimeoutAction(action, { userId: userId });
diff --git a/libs/common/src/state-migrations/migrate.ts b/libs/common/src/state-migrations/migrate.ts
index 3b21713539..db29ddf26f 100644
--- a/libs/common/src/state-migrations/migrate.ts
+++ b/libs/common/src/state-migrations/migrate.ts
@@ -25,6 +25,7 @@ import { BadgeSettingsMigrator } from "./migrations/27-move-badge-settings-to-st
 import { MoveBiometricUnlockToStateProviders } from "./migrations/28-move-biometric-unlock-to-state-providers";
 import { UserNotificationSettingsKeyMigrator } from "./migrations/29-move-user-notification-settings-to-state-provider";
 import { FixPremiumMigrator } from "./migrations/3-fix-premium";
+import { PolicyMigrator } from "./migrations/30-move-policy-state-to-state-provider";
 import { RemoveEverBeenUnlockedMigrator } from "./migrations/4-remove-ever-been-unlocked";
 import { AddKeyTypeToOrgKeysMigrator } from "./migrations/5-add-key-type-to-org-keys";
 import { RemoveLegacyEtmKeyMigrator } from "./migrations/6-remove-legacy-etm-key";
@@ -34,7 +35,7 @@ import { MoveBrowserSettingsToGlobal } from "./migrations/9-move-browser-setting
 import { MinVersionMigrator } from "./migrations/min-version";
 
 export const MIN_VERSION = 2;
-export const CURRENT_VERSION = 29;
+export const CURRENT_VERSION = 30;
 export type MinVersion = typeof MIN_VERSION;
 
 export function createMigrationBuilder() {
@@ -66,7 +67,8 @@ export function createMigrationBuilder() {
     .with(RevertLastSyncMigrator, 25, 26)
     .with(BadgeSettingsMigrator, 26, 27)
     .with(MoveBiometricUnlockToStateProviders, 27, 28)
-    .with(UserNotificationSettingsKeyMigrator, 28, CURRENT_VERSION);
+    .with(UserNotificationSettingsKeyMigrator, 28, 29)
+    .with(PolicyMigrator, 29, CURRENT_VERSION);
 }
 
 export async function currentVersion(
diff --git a/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.spec.ts b/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.spec.ts
new file mode 100644
index 0000000000..23ed3778a7
--- /dev/null
+++ b/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.spec.ts
@@ -0,0 +1,192 @@
+import { MockProxy, any } from "jest-mock-extended";
+
+import { MigrationHelper } from "../migration-helper";
+import { mockMigrationHelper } from "../migration-helper.spec";
+
+import { PolicyMigrator } from "./30-move-policy-state-to-state-provider";
+
+function exampleJSON() {
+  return {
+    global: {
+      otherStuff: "otherStuff1",
+    },
+    authenticatedAccounts: ["user-1", "user-2"],
+    "user-1": {
+      data: {
+        policies: {
+          encrypted: {
+            "policy-1": {
+              id: "policy-1",
+              organizationId: "fe1ff6ef-d2d4-49f3-9c07-b0c7013998f9",
+              type: 9, // max vault timeout
+              enabled: true,
+              data: {
+                hours: 1,
+                minutes: 30,
+                action: "lock",
+              },
+            },
+            "policy-2": {
+              id: "policy-2",
+              organizationId: "5f277723-6391-4b5c-add9-b0c200ee6967",
+              type: 3, // single org
+              enabled: true,
+            },
+          },
+        },
+        otherStuff: "otherStuff2",
+      },
+      otherStuff: "otherStuff3",
+    },
+    "user-2": {
+      data: {
+        otherStuff: "otherStuff4",
+      },
+      otherStuff: "otherStuff5",
+    },
+  };
+}
+
+function rollbackJSON() {
+  return {
+    "user_user-1_policies_policies": {
+      "policy-1": {
+        id: "policy-1",
+        organizationId: "fe1ff6ef-d2d4-49f3-9c07-b0c7013998f9",
+        type: 9,
+        enabled: true,
+        data: {
+          hours: 1,
+          minutes: 30,
+          action: "lock",
+        },
+      },
+      "policy-2": {
+        id: "policy-2",
+        organizationId: "5f277723-6391-4b5c-add9-b0c200ee6967",
+        type: 3,
+        enabled: true,
+      },
+    },
+    "user_user-2_policies_policies": null as any,
+    global: {
+      otherStuff: "otherStuff1",
+    },
+    authenticatedAccounts: ["user-1", "user-2"],
+    "user-1": {
+      data: {
+        otherStuff: "otherStuff2",
+      },
+      otherStuff: "otherStuff3",
+    },
+    "user-2": {
+      data: {
+        otherStuff: "otherStuff4",
+      },
+      otherStuff: "otherStuff5",
+    },
+  };
+}
+
+describe("PoliciesMigrator", () => {
+  let helper: MockProxy<MigrationHelper>;
+  let sut: PolicyMigrator;
+  const keyDefinitionLike = {
+    key: "policies",
+    stateDefinition: {
+      name: "policies",
+    },
+  };
+
+  describe("migrate", () => {
+    beforeEach(() => {
+      helper = mockMigrationHelper(exampleJSON(), 22);
+      sut = new PolicyMigrator(29, 30);
+    });
+
+    it("should remove policies from all old accounts", async () => {
+      await sut.migrate(helper);
+      expect(helper.set).toHaveBeenCalledWith("user-1", {
+        data: {
+          otherStuff: "otherStuff2",
+        },
+        otherStuff: "otherStuff3",
+      });
+    });
+
+    it("should set policies value in StateProvider framework for each account", async () => {
+      await sut.migrate(helper);
+
+      expect(helper.setToUser).toHaveBeenCalledWith("user-1", keyDefinitionLike, {
+        "policy-1": {
+          id: "policy-1",
+          organizationId: "fe1ff6ef-d2d4-49f3-9c07-b0c7013998f9",
+          type: 9,
+          enabled: true,
+          data: {
+            hours: 1,
+            minutes: 30,
+            action: "lock",
+          },
+        },
+        "policy-2": {
+          id: "policy-2",
+          organizationId: "5f277723-6391-4b5c-add9-b0c200ee6967",
+          type: 3,
+          enabled: true,
+        },
+      });
+    });
+  });
+
+  describe("rollback", () => {
+    beforeEach(() => {
+      helper = mockMigrationHelper(rollbackJSON(), 23);
+      sut = new PolicyMigrator(29, 30);
+    });
+
+    it.each(["user-1", "user-2"])("should null out new values", async (userId) => {
+      await sut.rollback(helper);
+      expect(helper.setToUser).toHaveBeenCalledWith(userId, keyDefinitionLike, null);
+    });
+
+    it("should add policy values back to accounts", async () => {
+      await sut.rollback(helper);
+
+      expect(helper.set).toHaveBeenCalled();
+      expect(helper.set).toHaveBeenCalledWith("user-1", {
+        data: {
+          policies: {
+            encrypted: {
+              "policy-1": {
+                id: "policy-1",
+                organizationId: "fe1ff6ef-d2d4-49f3-9c07-b0c7013998f9",
+                type: 9,
+                enabled: true,
+                data: {
+                  hours: 1,
+                  minutes: 30,
+                  action: "lock",
+                },
+              },
+              "policy-2": {
+                id: "policy-2",
+                organizationId: "5f277723-6391-4b5c-add9-b0c200ee6967",
+                type: 3,
+                enabled: true,
+              },
+            },
+          },
+          otherStuff: "otherStuff2",
+        },
+        otherStuff: "otherStuff3",
+      });
+    });
+
+    it("should not try to restore values to missing accounts", async () => {
+      await sut.rollback(helper);
+
+      expect(helper.set).not.toHaveBeenCalledWith("user-3", any());
+    });
+  });
+});
diff --git a/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.ts b/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.ts
new file mode 100644
index 0000000000..5f05442c4e
--- /dev/null
+++ b/libs/common/src/state-migrations/migrations/30-move-policy-state-to-state-provider.ts
@@ -0,0 +1,76 @@
+import { KeyDefinitionLike, MigrationHelper } from "../migration-helper";
+import { Migrator } from "../migrator";
+
+enum PolicyType {
+  TwoFactorAuthentication = 0, // Requires users to have 2fa enabled
+  MasterPassword = 1, // Sets minimum requirements for master password complexity
+  PasswordGenerator = 2, // Sets minimum requirements/default type for generated passwords/passphrases
+  SingleOrg = 3, // Allows users to only be apart of one organization
+  RequireSso = 4, // Requires users to authenticate with SSO
+  PersonalOwnership = 5, // Disables personal vault ownership for adding/cloning items
+  DisableSend = 6, // Disables the ability to create and edit Bitwarden Sends
+  SendOptions = 7, // Sets restrictions or defaults for Bitwarden Sends
+  ResetPassword = 8, // Allows orgs to use reset password : also can enable auto-enrollment during invite flow
+  MaximumVaultTimeout = 9, // Sets the maximum allowed vault timeout
+  DisablePersonalVaultExport = 10, // Disable personal vault export
+  ActivateAutofill = 11, // Activates autofill with page load on the browser extension
+}
+
+type PolicyDataType = {
+  id: string;
+  organizationId: string;
+  type: PolicyType;
+  data: Record<string, string | number | boolean>;
+  enabled: boolean;
+};
+
+type ExpectedAccountType = {
+  data?: {
+    policies?: {
+      encrypted?: Record<string, PolicyDataType>;
+    };
+  };
+};
+
+const POLICIES_KEY: KeyDefinitionLike = {
+  key: "policies",
+  stateDefinition: {
+    name: "policies",
+  },
+};
+
+export class PolicyMigrator extends Migrator<29, 30> {
+  async migrate(helper: MigrationHelper): Promise<void> {
+    const accounts = await helper.getAccounts<ExpectedAccountType>();
+
+    async function migrateAccount(userId: string, account: ExpectedAccountType): Promise<void> {
+      const value = account?.data?.policies?.encrypted;
+      if (value != null) {
+        await helper.setToUser(userId, POLICIES_KEY, value);
+        delete account.data.policies;
+        await helper.set(userId, account);
+      }
+    }
+
+    await Promise.all(accounts.map(({ userId, account }) => migrateAccount(userId, account)));
+  }
+
+  async rollback(helper: MigrationHelper): Promise<void> {
+    const accounts = await helper.getAccounts<ExpectedAccountType>();
+
+    async function rollbackAccount(userId: string, account: ExpectedAccountType): Promise<void> {
+      const value = await helper.getFromUser(userId, POLICIES_KEY);
+      if (account) {
+        account.data = Object.assign(account.data ?? {}, {
+          policies: {
+            encrypted: value,
+          },
+        });
+
+        await helper.set(userId, account);
+      }
+      await helper.setToUser(userId, POLICIES_KEY, null);
+    }
+    await Promise.all(accounts.map(({ userId, account }) => rollbackAccount(userId, account)));
+  }
+}