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SB1039 • 2026

attorney discipline investigations; costs

SB1039 - attorney discipline investigations; costs

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Mark Finchem, Wendy Rogers
Last action
2026-03-17
Official status
House minority caucus
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on how much money attorneys can claim for reputation damage or loss of earnings.

Law for Attorneys to Get Money Back if They Win Discipline Cases

This law allows attorneys who win in discipline cases to file a claim against the State Bar of Arizona if their reputation is damaged and entitles them to recover lost earnings during all stages of the process.

What This Bill Does

  • Allows an attorney who prevails in an attorney discipline matter to file a claim against the State Bar of Arizona (SBA) if they suffer damage to their reputation.
  • Entitles winning attorneys in discipline cases to recover loss of earnings calculated during all stages of investigation, discipline, and any court litigation or appeal.

Who It Names or Affects

  • Attorneys who face disciplinary actions from the State Bar of Arizona
  • The State Bar of Arizona

Terms To Know

attorney discipline matter
A case where an attorney faces charges that are not dismissed before reaching a final decision.
loss of earnings
Money lost by an attorney during the time they face disciplinary actions, including investigations and appeals.

Limits and Unknowns

  • The bill does not specify how much money attorneys can claim for reputation damage or loss of earnings.
  • It is unclear if there will be any changes to the State Bar's budget due to this law.

Bill History

  1. 2026-03-17 House

    House minority caucus

  2. 2026-03-17 House

    House majority caucus

  3. 2026-03-16 House

    House consent calendar

  4. 2026-03-04 House

    House second read

  5. 2026-03-03 House

    House Rules: C&P

  6. 2026-03-03 House

    House Judiciary: DP

  7. 2026-03-03 House

    House first read

  8. 2026-02-25 House

    Transmitted to House

  9. 2026-02-25 Senate

    Senate third read passed

  10. 2026-02-25 Senate

    Senate committee of the whole

  11. 2026-01-27 Senate

    Senate minority caucus

  12. 2026-01-27 Senate

    Senate majority caucus

  13. 2026-01-26 Senate

    Senate consent calendar

  14. 2026-01-14 Senate

    Senate second read

  15. 2026-01-12 Senate

    Senate Rules: PFC

  16. 2026-01-12 Senate

    Senate Judiciary and Elections: DP

  17. 2026-01-12 Senate

    Senate first read

Official Summary Text

SB1039 - 572R - Senate Fact Sheet

Assigned to
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COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
S.B. 1039

attorney discipline
investigations; costs

Purpose

Allows an attorney who prevails in an attorney discipline matter to file
a claim against the State Bar of Arizona (SBA), if the attorney has suffered
damage to their reputation.

Background

If an attorney who is the subject of a discipline matter prevails, the
SBA is responsible for any attorney fees and court costs. Court costs include
the cost of all stages of the investigation and discipline process and, if
applicable, any court litigation and appeal (
A.R.S.
� 12-353
).

Formal attorney discipline matters are initiated by the SBA's filing of a
complaint with the disciplinary clerk of the Arizona Supreme Court. If the
matter is not settled,
a hearing is held before a
disciplinary panel consisting of the presiding disciplinary judge, a volunteer
attorney and a volunteer member of the public. The disciplinary panel issues a
decision following the hearing. The attorney who is the subject of the
disciplinary matter can choose to appeal the decision to the Arizona Supreme
Court.
Once the Arizona Supreme Court issues a ruling, the decision is
final, and no further appeals can be made. Sanctions issued in a disciplinary
matter can include an admonition, a reprimand, short-term or long-term
suspension, probation and disbarment (
SBA
).

Attorney discipline matter
means any charge that is not dismissed
by the SBA before the final disposition of the complaint by the presiding
disciplinary judge of the Arizona Supreme Court (
A.R.S.
� 12-353
).

There is no anticipated fiscal impact to the state General Fund
associated with this legislation.

Provisions

1.

Allows
an attorney that prevails in an
attorney discipline matter
to file a
claim against the SBA if the attorney suffers damage to their reputation.

2.

Entitles
an attorney that prevails in an
attorney discipline matter
to loss of
earnings, which are calculated during the time period covering all stages of
investigation, discipline and any court litigation and appeal.

3.

Makes
technical changes.

4.

Becomes
effective on the general effective date.

Prepared by Senate Research

January 12, 2026

ZD/MY/ci

Current Bill Text

Read the full stored bill text
SB1039 - 572R - S Ver

Senate Engrossed

attorney discipline
investigations; costs

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1039

AN
ACT

amending section 12-353, Arizona
Revised Statutes; relating to recovery of costs.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 12-353, Arizona Revised
Statutes, is amended to read:

START_STATUTE
12-353.

Recovery of costs; attorney discipline investigations; definition

A. In an attorney discipline matter, if an attorney
who is the subject of the charge prevails,
the following apply:

1.
In addition to any costs
that are awarded by statute, the state bar of Arizona is responsible to the
attorney for any attorney fees
, loss of earnings
and
court costs.� Court costs include the cost of all stages of the investigation
and discipline process and, if applicable, any court litigation and
appeal.
Loss of earnings are calculated during the
time period that covers all stages of the investigation and discipline process
and, if applicable, any court litigation and appeal.

2. The attorney may file a claim
against the state bar of Arizona if the attorney suffers damage to the
attorney's reputation.

B. For the purposes of this section, "attorney
discipline matter" means any charge that is not dismissed by the state bar
of Arizona before final disposition of the complaint by the presiding
disciplinary judge or the supreme court.
END_STATUTE