Official Summary Text
HB4070 - 572R - Senate Fact Sheet
Assigned to
JUDE���������������������������������������������������������������������������������������������� AS
PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 4070
nonprofits;
facilitation; trafficking offenses; penalties
Purpose
Prohibits the Arizona Corporation Commission (ACC) from incorporating a
corporation if an officer, director or trustee of the corporation has been
convicted of specified trafficking offenses. Subjects a person who facilitates
trafficking offenses, rather than just engages in them, to civil liability to
the person trafficked.
Background
Incorporation occurs and the corporate existence begins when the articles
of incorporation and certificate of disclosure are delivered to the ACC for
filing. The certificate of disclosure must set forth specified information
regarding all persons who, at the time of the disclosure's delivery, are
officers, directors, trustees and incorporators, including whether any of the
persons have been convicted of a felony involving a transaction in securities,
consumer fraud or antitrust, or an offense for which the essential elements
consisted of fraud, misrepresentation, theft by false pretenses or restraint of
trade or monopoly, in any state or federal jurisdiction within the five-year
period immediately preceding the execution of the certificate (A.R.S. ��
10-3202
and
10-3203
).
A person who engages in the trafficking of another person or who
intentionally or knowingly benefits from the trafficking of another person is
civilly liable to the person trafficked for damages that arise from the offense,
including actual damages, including those for mental anguish, court costs,
reasonable attorney fees and exemplary damages. For the purposes of determining
civil liability,
trafficking of a person
means conduct that constitutes
an offense
under unlawfully obtaining labor or services
,
sex
trafficking
,
trafficking of persons for forced labor or services
,
taking
a child for the purpose of prostitution
and
child sex trafficking
(
A.R.S.
� 12-722
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
1.
Prohibits
the ACC from incorporating a corporation if an officer, director or trustee of
the corporation has been convicted of:
a)
sex trafficking;
b)
trafficking of persons for forced labor or services;
c)
child sex trafficking; or
d)
any other substantially similar offense under the laws of Arizona or the
United States.
2.
Subjects
a person who facilitates the trafficking of another person, or who
intentionally or knowingly benefits from a trafficking venture, to civil
liability for outlined damages to the person trafficked.
3.
Defines
facilitates
as acting with knowledge that another person
is committing or intends to commit an unlawful act and knowingly providing the
other person with means or opportunity for the commission of the unlawful act.
4.
Becomes effective on the general effective date.
Amendments Adopted by
Committee
�
Adds a definition for
facilitates
.
House Action
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Senate
Action
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3
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Prepared by Senate Research
March 30, 2026
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Current Bill Text
Read the full stored bill text
HB4070 - 572R - H Ver
House Engrossed
nonprofits;
facilitation; trafficking offenses; penalties
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 4070
AN
ACT
amending
title 10, chapter 25, article 1, Arizona Revised Statutes, by adding section 10-3203.01;
amending section 12-722, Arizona Revised Statutes; relating to human
trafficking.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 10, chapter 25, article 1,
Arizona Revised Statutes, is amended by adding section 10-3203.01, to read:
START_STATUTE
10-3203.01.
Incorporation prohibited
Notwithstanding any other law, the commission
may not incorporate a corporation under this chapter if an officer, director or
trustee of the corporation has been convicted of any of the following offenses:
1. Sex trafficking
as defined in section 13-1307.
2. Trafficking of persons for forced
labor or services
As defined in section 13-1308.
3. Child sex trafficking
As defined in section 13-3212.
4.
any
substantially similar offense under the laws of any other state or the united
states.
END_STATUTE
Sec. 2. Section 12-722, Arizona Revised
Statutes, is amended to read:
START_STATUTE
12-722.
Trafficking of persons; civil liability; applicability; remedies;
joint and several liability; definitions
A. A person who engages in
or
facilitates
the trafficking of a person or who intentionally or
knowingly benefits from participating in
or facilitating
a venture that traffics another person is liable to the person trafficked for
damages that arise from the trafficking of that person by the person or
venture.
B. It is not a defense to liability under this
section that the person was acquitted or has not been prosecuted for or
convicted of an offense included in title 13 or has been convicted of a
different offense, or of a different type or class of offense, for the conduct
that is alleged to give rise to liability under this section.
C. This section applies to any legal entity that is
governed by title 10 or 29.
D. Notwithstanding titles 10 and 29, if a legal
entity is found responsible pursuant to this section, a shareholder, member or
partner of that entity is jointly and severally liable with the entity to the
person trafficked for damages that arise from the trafficking of that person if
the person demonstrates that the shareholder, member or partner caused the
entity to be used to traffic that person for the direct personal benefit of the
shareholder, member or partner.
E. A claimant who prevails under this section:
1. Shall be awarded actual damages, including
damages for mental anguish even if an injury other than mental anguish is not
shown, court costs and reasonable attorney fees.
2. In addition to an award under paragraph 1 of this
subsection, may recover exemplary damages.
F. The rights and remedies provided in this section
supplement any other rights and remedies provided by law, including common law
rights.
G. A person who engages
in
or facilitates
the trafficking
of a
person or who intentionally or knowingly benefits from participating in
or facilitating
a venture that traffics another person and is
found responsible under this section or other law for any amount of damages
arising from the trafficking is jointly liable with any other person found to
be liable for the entire amount of damages arising from the trafficking.
H. For the purposes of this section:
1. "Person" has the same meaning
prescribed in section 13-105.
2. "Traffics another person" or
"trafficking of a person" means conduct that constitutes an offense
under section 13-1306, 13-1307, 13-1308, 13-3206 or 13-3212.
END_STATUTE