erroneous convictions; compensation; procedures

HB2766 - 572R - I Ver

REFERENCE TITLE:
erroneous convictions; compensation; procedures

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2766

Introduced by

Representative
Powell

AN
ACT

amending sections 13-4296 and 41-710.03,
Arizona Revised Statutes; relating to erroneous convictions.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 13-4296, Arizona Revised
Statutes, is amended to read:

START_STATUTE
13-4296.

Erroneous convictions; compensation; pilot program; definitions

A. Notwithstanding any other law, a claimant may
bring an action in superior court seeking compensation from this state if the
claimant establishes, by
a preponderance of the

clear and convincing
evidence, that all of the following apply:

1. The claimant was convicted of a felony and
subsequently incarcerated.

2. The claimant did not commit the crime or crimes
for which the claimant was convicted.

3. The claimant did not commit perjury, fabricate
evidence or by the claimant's own conduct cause or bring about the
conviction. A confession or admission later found to be false or a
guilty plea does not constitute committing perjury, fabricating evidence or
causing or bringing about the conviction.

4. One of the following applies:

(a) The claimant was pardoned based on innocence.

(b)
After trial,
the
claimant's judgment of conviction was reversed or vacated and the charges were
dismissed or the claimant was found not guilty on retrial.

(c) The claimant's judgment of conviction was
reversed or vacated and the claimant entered an Alford plea or a plea of no
contest, while maintaining a claim of innocence, after the conviction was
overturned, reversed or vacated on direct appeal or postconviction review when
the claimant would otherwise have been entitled to a new trial.

B. All pleadings shall be entitled "in the
matter of the erroneous conviction of _____". The claimant
shall serve
a copy of the claim on
the attorney general
,
with a copy of the claim

the
prosecuting agency that charged the criminal case and each law enforcement
agency that was involved in the investigation that lead to the conviction

shall comply with the requirements of section 12-821.01
. The

superior
court shall decide the claim.� The Arizona rules
of civil procedure apply.� The action shall be brought in the county of
conviction or in Maricopa county.

C. The claimant shall bring the claim within two
years after one of the following occurs:

1. The claimant's conviction is overturned or
vacated and the charges against the claimant are dismissed, the claimant is
found not guilty on retrial or the claimant enters a plea of no contest,
whichever occurs later.

2. The claimant is pardoned based on innocence.

3. January 1, 2026 if the claimant was convicted,
incarcerated and released from custody before January 1, 2026.

D.
The attorney general shall respond
within thirty days to the claim. The attorney general may request a
single thirty-day extension to respond on a showing of good
cause. The parties may stipulate to an additional extension of time.
�

Consistent with the requirements of rule 16(
a
) of the Arizona rules of civil procedure and after taking into
consideration the age of the case and the complexity of the facts and legal
issues raised in the claim, the court shall enter a scheduling order that
provides the attorney general with at least sixty days to review, investigate
and respond to the claim.�
The attorney general may include in the
response a request that the court make findings of fact that a city
, town
or county employee committed harmful error or misconduct
that was the proximate cause of the conviction being pardoned,
reversed or vacated
.�
The harmful error or misconduct is
the proximate cause of the conviction being pardoned, reversed or vacated if
the harmful error or misconduct would have foreseeably resulted in the
conviction being reversed or vacated or have been grounds to grant a pardon.
�
If the attorney general requests findings of fact regarding whether a city
, town
or county employee committed harmful error or
misconduct, the attorney general has the burden of proof by a preponderance of
the evidence.

E. If the attorney
general does not object in the response
or otherwise seek
dismissal of the claim
, the court shall enter an order granting the
erroneous conviction claim
if the court finds the claimant met
the burden prescribed in subsection A of this section.� On its own motion or on
the motion of the attorney general, The court may dismiss the complaint if the
court determines the claimant does not state a claim for which relief may be
granted.
�If the attorney general objects, the court
shall

may
order and hold an evidentiary hearing.�
The court may consider any relevant evidence regardless of whether the
evidence was admissible in or excluded from the criminal trial in which the
claimant was convicted.
� A court order that grants or denies the claim
shall include findings of fact and conclusions of law.� If requested by the
attorney general, the court shall make findings of fact regarding whether a
city
, town
or county employee committed harmful error or
misconduct that was the proximate cause of the pardoning, reversal or vacating
of a conviction.� If not requested by the attorney general, the court
, on its own motion,
may find by a preponderance of the evidence
that a city
, town
or county employee committed harmful
error or misconduct that was the proximate cause of the pardoning, reversal or
vacating of a conviction. The court may consider any findings of
fact developed on the record of the underlying criminal offense related to the
conviction or actions by city
, town
or county
employees. The court shall notify the appropriate city
, town
or county prosecuting agency if the attorney general
requests or the court makes a finding that a city
, town

or county employee committed harmful error or misconduct that was the proximate
cause of the pardoning, reversal or vacating of the conviction and allow the
city
, town
or county to respond
within
fourteen days

in a reasonable time
.�
The city or county may not request to intervene in the claimant's
action seeking compensation and may only respond as to whether the employee
committed harmful error or misconduct that was the proximate cause of the
pardoning, reversal or vacating of the conviction by a preponderance of the
evidence.

The prosecuting agency has the right to
intervene pursuant to rule 24(
a
) of the Arizona rules of
civil procedure.� The liability of the city
, town or
county is several only and is not joint, and the court must determine the city
, town or county employee�s percentage of fault that proximately
caused the pardoning, reversal or vacating of the conviction.� If the court
determines two or more employees' harmful error or misconduct proximately
caused the pardoning, reversal or vacating of the conviction, the court must
determine the amount of the award to be reimbursed by each respective city
, town or county based on the percentage of each employee's fault.

F. If the court enters an order granting the claim,
the court shall award compensation
only for the amounts actually
due to the claimant from this state or a city
, town or
county and may award interest
as follows:

1. For each year the claimant was incarcerated, two
hundred percent of the median household income in this state as it existed on
the date the claimant was incarcerated and as determined by the United States
department of housing and urban development and adjusted for inflation using
the consumer price index for urban consumers.� The amount for any partial year
shall be prorated in order to compensate the claimant only for the portion of
the year in which the claimant was incarcerated.� The claimant may not receive
compensation for any period of time for which the claimant was concurrently
serving another sentence for a conviction of another offense for which the
claimant was lawfully incarcerated.�
The court may award
interest on the amount awarded pursuant to this paragraph from the time of
entry until the judgment is paid.

2. The claimant may request more than the amount of
compensation awarded pursuant to paragraph 1 of this subsection. Any
additional amount of compensation awarded to the claimant shall be paid from
the erroneous convictions fund pursuant to subsection M of this
section. If the claimant requests additional compensation, the court
must hold an evidentiary hearing.� The court shall consider the pro
per
SE
status of the claimant in
determining whether additional compensation is warranted.� The claimant may present
evidence of other damages the claimant suffered arising from or related to the
claimant's arrest, prosecution, conviction and incarceration. The
court may award up to $500,000 in additional compensation.�
The
court may award interest on the amount awarded pursuant to this paragraph from
the time of entry until the judgment is paid.

3. $25,000 per year for each year the claimant was
incarcerated on death row or each year the clamant was required to register
pursuant to section 13-3821.�
The court may award interest
on the amount awarded pursuant to this paragraph from the time of entry until
the judgment is paid.

4. Reimbursement of not more than $100,000 for
reintegrative services and mental and physical health care costs that the
claimant incurred for the time period between the claimant's release from
custody and the entry of judgment.

5. Reimbursement for unreimbursed costs, fines, fees
or surcharges that were imposed on the claimant as a result of the erroneous
conviction and that were paid by or on behalf of the claimant.

6. Reimbursement for unreimbursed restitution that
was paid by or on behalf of the claimant as a result of the erroneous
conviction.

7. Reasonable attorney fees and costs of not more
than $25,000 unless the court authorizes a greater reasonable total on a
finding of good cause shown.

G. Compensation awarded to the claimant pursuant to
this section does not constitute gross income for the purposes of title 42 or
43.

H. The court shall order that the award be paid in
one lump sum to the claimant
and shall enter JUDGMENT as
REQUIRED by the Arizona RULES of civil procedure
.

I. In addition to the compensation awarded pursuant
to subsection F of this section, the claimant is entitled to the following
services from licensed or accredited state institutions, agencies or providers
within this state:

1. Reimbursement for mental health treatment for up
to fifty-two clinical hours at a maximum of $250 per hour within twelve
months after the court's order awarding compensation.

2. Reimbursement for up to one hundred twenty credit
hours at any postsecondary educational institution, vocational school or trade
school.

3. Reimbursement for up to four financial planning
or literacy classes or consultations within twelve months after the court's
order awarding compensation.

J. If, at the time the court enters a judgment
pursuant to subsection F of this section, the claimant has won a monetary
judgment against this state or any political subdivision of this state in a
civil action related to the erroneous conviction or has entered into a
settlement agreement with this state or any political subdivision of this state
related to the erroneous conviction, the court shall deduct the amount awarded
in the action or the amount received in the settlement agreement, less any sums
paid to an attorney or for costs in litigating the other civil action or
obtaining the settlement agreement, from the monies that the claimant is
entitled to receive under this section.� The court shall include in the
judgment an award to this state of any amount that is deducted pursuant to this
subsection.

K. If subsection J of
this section does not apply, any future damages that are awarded to the
claimant resulting from an action by the claimant against any unit of
government in this state by reason of the erroneous conviction shall be offset by
the compensation award received under this section.

L. The compensation award may not be offset by any
expenses incurred by this state or any political subdivision of this state,
including the following:

1. Any expenses that this state or a political
subdivision of this state incurred to secure the claimant's custody or to feed,
clothe or provide medical services for the claimant.

2. The value of any services or reduction in fees
for service
,
or the value thereof to be provided to
the claimant that may be awarded to the claimant pursuant to this section.

M. If the court finds that the claimant is entitled
to compensation, the court shall issue a finding that the claimant was
erroneously convicted and, as a result, served a specific amount of time
erroneously incarcerated. The clerk of the court shall send a
certified copy of the order to the department of administration for payment
from the erroneous convictions fund established
pursuant to
by
section 41-710.03.� If sufficient monies are
available, the department of administration shall remit from the erroneous
convictions fund the payment to the claimant within forty-five
days. Any claims for reimbursement under subsection I of this
section shall be submitted to the
department of

administration for approval and, if sufficient monies are available, paid from
the erroneous convictions fund within
fourteen

forty-five
days after receipt.� If the court made
findings of fact that a city
or town
employee committed
harmful error or misconduct that was the proximate cause of the pardoning,
reversal or vacating of the conviction, the city
or town
shall
reimburse
all

the
payments made to
the claimant from the erroneous convictions fund
in the amount
determined by the court
.� If the court made findings of fact that a
county employee committed harmful error or misconduct that was the proximate
cause of the pardoning, reversal or vacating of the conviction, the county of
conviction shall reimburse
all

the

payments made to the claimant from the erroneous convictions fund
in the amount determined by the court
. For claims
paid pursuant to subsection F of this section, the city
, town

or county shall make the reimbursement required by this subsection to the
erroneous convictions fund within forty-five days after the payment from
the erroneous convictions fund to the claimant.� For claims paid pursuant to
subsection I of this section, the city
, town
or county
shall make the reimbursement required by this subsection to the erroneous
convictions fund within fourteen days after the payment from the
erroneous convictions fund to the claimant.

N. Notwithstanding
any other law, on entry of an erroneous conviction ruling, the court shall:

1. Order the claimant's

associated convictions and arrests expunged from all
applicable state and federal systems and the records sealed.� The court shall
enter the expungement order for the offense or offenses for which the ruling
applies

regardless of whether the claimant has a
historical prior felony conviction. The expungement order shall
state all of the following:

(a) The claimant's current full name.

(b) The claimant's full name at the time of arrest
and conviction, if different than the claimant's current name.

(c) The claimant's sex, race and date of birth.

(d) The offense for which the claimant was arrested
and convicted.

(e) The dates of the claimant's arrest and
conviction.

(f) The identity of the arresting law enforcement
agency and convicting court.

(g) That the order expunges any record of the
claimant's arrest, charge, conviction or adjudication and sentence.

(h) That the claimant's civil rights, including the
right to possess firearms, are restored, unless the claimant is otherwise not
eligible for the restoration of civil rights on grounds other than the
conviction at issue.

(i) That the clerk of the court shall notify the
department of public safety, the prosecuting agency and the arresting law
enforcement agency, if applicable, of the expungement order.

(j) That the clerk of the court shall seal the
claimant's

records relating to the expunged
arrest, charge, conviction or adjudication and sentence and allow the claimant's

records to be accessed only by the claimant or the
claimant's attorney.

2. Direct the department of public safety to expunge
and destroy any biological samples, including DNA and fingerprint samples,
received by the department pursuant to section 13-610.� The clerk of the
court shall send a certified copy of the order to the department of public
safety, which shall implement the order and provide confirmation of the action
to the court. This paragraph does not require the department of public
safety to expunge and destroy samples or a profile record that is associated
with the claimant and that relates to an unrelated offense.

O. The department of public safety shall seal and
separate the expunged record from the department's records and shall inform all
appropriate state and federal law enforcement agencies of the expungement at no
cost to the claimant. The state department of corrections shall seal
and separate the expunged record from the department's records and may not make
information related to the expunged conviction publicly available through any
department database.

P. The arresting and prosecuting agencies shall
clearly identify in each agency's files and electronic records that the
claimant was erroneously convicted and that the arrest, charge, conviction or
adjudication and sentence are expunged and may not make any records of the
expunged arrest, charge, conviction or adjudication and sentence available as a
public record to any person except to the claimant or the claimant's attorney.

Q. Pursuant to the expungement order, the claimant
shall be treated as not having been arrested for, adjudicated delinquent for or
convicted of the expunged offense.� The expunged arrest, charge, adjudication,
conviction or sentence may not be used in a subsequent prosecution by a
prosecuting agency or court for any purpose.� The claimant may state that the
claimant has never been arrested for, charged with, adjudicated delinquent for,
convicted of or sentenced for the offense that is the subject of the expungement.

R. The claimant may request that this action and
erroneous conviction ruling be sealed.

S. The court's decision to grant or deny an
erroneous conviction claim is not res judicata on any other proceedings.

T. If the court denies an erroneous
conviction claim, the claimant may file a direct appeal pursuant to section 13-4033,
subsection A, paragraph 3.

T. Each party has a right to appeal
the final judgment on an erroneous conviction claim. The Arizona
Rules of Civil Appellate Procedure apply to the appeal.

U. If the victim has made a request for
postconviction notice, the attorney general shall provide the victim with
notice of the claimant's claim and of the rights provided to the victim in this
section. The rights and duties prescribed in chapter 40 of this
title continue to be enforceable throughout the proceedings held pursuant to
this section.

V. If the court finds that the claimant is entitled
to a judgment, a victim as defined in section 13-4401 is entitled to
reimbursement for mental health treatment for up to fifty-two clinical
hours within twelve months after the court's order awarding compensation at a
maximum of $250 per hour pursuant to the victim compensation and assistance
fund established by section 41-2407. The victim does not need
to establish any other eligibility requirements to receive reimbursement for
mental health services.

W. For the purposes of this section:

1. "Harmful error":

(
a
) means an
error that affected the claimant's substantive rights.

(
b
) does not
include innocent, inadvertent or negligent conduct that affected the claimant's
substantive rights.

2. "Misconduct"
means an intentional, reckless or grossly negligent action or actions that demonstrate
either:

(
a
) a desire to achieve an improper result.

(
b
) a pattern
of disregard for legal or ethical obligations.
END_STATUTE

Sec. 2. Section 41-710.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-710.03.

Erroneous convictions fund

A. The
erroneous convictions
fund
is established consisting of monies appropriated to the fund by the
legislature. The department of administration shall administer the
fund. Monies in the fund are continuously appropriated and are
exempt from the provisions of section 35-190 relating to lapsing of
appropriations.

B. The department of administration shall use the
monies deposited in the erroneous convictions fund to
fund claims
brought
pay compensation awarded
pursuant to title
13, chapter 38, article 36.�
An agency, board, commission or
department of this state must not use monies from any fund or source other than
the erroneous convictions fund to pay any claim awarded pursuant to title 13,
chapter 38, article 36.
� This state is not liable for any
amount to pay any claim awarded pursuant to title 13, chapter 38, article 36
in excess of the monies available in the erroneous convictions fund.

C. The department of administration
shall prioritize the payment of
claims awarded pursuant
to title 13, chapter 38, article
36 in the order the
claimant awards are received by the department. The department shall
make full or partial payments on outstanding unpaid awards in order of priority
As additional monies become available in the
erroneous
convictions fund
.
END_STATUTE

Sec. 3.
Retroactivity

This act applies retroactively to from
and after December 31, 2025.