Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 13, chapter 38, Arizona Revised Statutes, is amended by adding article 15, to read:
ARTICLE 15. ERRONEOUS CONVICTIONS
13-4005. Erroneous convictions; compensation
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 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) 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 the attorney general with a copy of the claim. The 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. The effective date of this section if the claimant was convicted, incarcerated and released from custody before the effective date of this section.
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. In the response, the attorney general may request the court to make findings of fact that there is evidence of misconduct on the part of a city or county employee.
E. If the attorney general does not object in the response, the court shall enter an order granting the erroneous conviction claim. If the attorney general objects, the court shall order and hold an evidentiary hearing. 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 there is evidence of misconduct on the part of a city or county employee. If not requested by the attorney general, the court, on its own motion, may find that there is evidence of misconduct on the part of a city or county employee.
F. If the court enters an order granting the claim, the court shall award compensation 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.
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 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 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.
3. $25,000 per year for each year the claimant spent on death row or, if the claimant was required to register pursuant to section 13-3821, for each year the claimant complied with the registration requirements.
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.
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 by section 41-710.03. 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 paid from the erroneous convictions fund within fourteen days after receipt. If the court made findings of fact that there was evidence of misconduct on the part of a city or county employee that resulted in the pardoning, reversal or vacating of a conviction, the city or county of conviction shall reimburse all payments made to the claimant from the erroneous convictions fund. For claims paid pursuant to subsection f of this section, The city or county shall make the reimbursement required by this subsection to the erroneous convictions fund within forty-five days of the payment from the erroneous convictions fund to the claimant. For claims paid pursuant to subsection I of this section, the city or county shall make the reimbursement required by this subsection to the erroneous convictions fund within fourteen days of 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 court 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.
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 under 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.
Sec. 2. Subject
to the requirements of article IV, part 1, section 1, Constitution of
Arizona, section 36-2856, Arizona Revised Statutes, is amended to read:
36-2856. Smart and safe
Arizona fund; disposition of monies; exemption
A. The smart and safe
Arizona fund is established consisting of all monies deposited pursuant to
sections 36-2853, 36-2854, 36-2859, 42-5452 and 42-5453,
private donations and interest earned on those monies. Monies in the fund are
continuously appropriated. Monies in the fund and its accounts may not be
transferred to any other fund except as provided in this section, do not revert
to the state general fund and are exempt from the provisions of section 35-190
relating to the lapsing of appropriations. The state treasurer shall
administer the fund.
B. All monies in the
smart and safe Arizona fund must first be spent, and the state treasurer shall
transfer monies from the fund, to pay:
1. The actual
reasonable costs incurred by the department to implement, carry out and enforce
this chapter and rules adopted pursuant to this chapter.
2. The actual
reasonable costs incurred by the department of revenue to impose and enforce
the tax authorized and levied by section 42-5452.
3. The actual
reasonable costs incurred by the supreme court and the department 
of public safety to process petitions for expungement and
expungement orders pursuant to section 36-2862 and to otherwise implement
section 36-2862.
4. The actual
reasonable costs incurred by the state treasurer to administer the fund.
5. Any other
mandatory expenditure of state revenues required by this chapter to implement
or enforce the provisions of this chapter.
C. The state
treasurer may prescribe forms necessary to make transfers from the smart and
safe Arizona fund pursuant to subsection B of this section.
D. Beginning
in fiscal year 2025-2026 through fiscal year 2029-2030, On or
before June 30 and December 31 of each year, the state treasurer shall transfer
$2,500,000 from the smart and safe Arizona fund to the department of health services for the
enforcement of this chapter. the department of health services shall
transfer the monies received pursuant to this subsection each year to the
department of public safety, which shall deposit the monies in the safe community enforcement fund
established by section 36-2856.01.
D. E. On
or before June 30 and December 31 of each year, the state treasurer shall
transfer all monies in the smart and safe Arizona fund in excess of the amounts
paid pursuant to subsection subsections B and D of this section as follows:
1. Thirty-three
percent to community college districts and provisional community college
districts, but not to community college tuition financing districts established
pursuant to section 15-1409, for the purposes of investing in and
providing workforce development programs, job training, career and technical
education, and science, technology, engineering and mathematics programs, as
follows:
(a) Fifteen percent
of the thirty-three percent divided equally between each community
college district.
(b) One-half of
one percent of the thirty-three percent divided equally between each
provisional community college district, if one or more provisional community
college districts exist.
(c) The remainder to
community college districts and provisional community colleges districts in
proportion to each district's full-time equivalent student enrollment
percentage of the total statewide audited full-time equivalent student
enrollment in the preceding fiscal year prescribed in section 15-1466.01.
2. 31.4 percent to
municipal police departments, municipal fire departments, fire districts and
joint powers authorities established pursuant to title 48, chapter 5 and county
sheriffs' departments in proportion to the number of members as defined in
section 38-842 for each such agency in the public safety personnel
retirement system established by title 38, chapter 5, article 4 and the public
safety personnel defined contribution retirement plan established pursuant to
title 38, chapter 5, article 4.1, for personnel costs.
3. 25.4 percent to
the Arizona highway user revenue fund established by section 28-6533.
4. Ten percent to the
justice reinvestment fund established by section 36-2863.
5. 0.2 percent to the
attorney general to use to enforce this chapter or to grant to localities to
enforce this chapter.
E. F. The
monies transferred and received pursuant to this section:
1. Are in addition to
any other appropriation, transfer or other allocation of monies and may not
supplant, replace or cause a reduction in other funding sources.
2. Are not considered
local revenues for the purposes of article IX, sections 20 and 21, Constitution
of Arizona.
Sec. 3. Subject
to the requirements of article IV, part 1, section 1, Constitution of
Arizona, title 36, chapter 28.2, Arizona Revised Statutes, is amended by adding
section 36-2856.01, to read:
36-2856.01. Safe community
enforcement fund; disposition of monies; reporting requirements
A. The
safe community enforcement fund is established consisting of monies deposited
pursuant to section 36-2856, subsection D. Monies in the fund
are continuously appropriated and are exempt from the provisions of section 35-190
relating to lapsing of appropriations. The department of public
safety shall administer the fund.
B. The
department of public safety shall use the monies deposited in the safe
community enforcement fund for agreements or contracts with cities, towns,
county sheriffs, county prosecutors or the attorney general for the enforcement
of this chapter. The
DEPARTMENT of public safety may use up to ten percent of the monies deposited
annually in the safe community enforcement fund for the enforcement of this
chapter.
C. The
Department of public SAFETY shall submit an expenditure plan for the monies in
the safe community enforcement fund to the joint legislative budget committee
for review each fiscal year.
D. The
department of public safety shall submit an expenditure plan to the joint
legislative budget committee for review BEFORE spending any monies that were
not identified in the department of public safety's previous expenditure
plans. Within thirty days after the last day of each calendar
quarter, the department of public safety shall provide a summary of quarterly
and year-to-date expenditures and progress to the joint legislative
budget committee.
E. The
safe community ENFORCEMENT fund monies distributed pursuant to this section may
not supplant or cause a reduction in other funding sources for the enforcement
of this chapter.
F. The
state treasurer shall transfer not more than five percent of the monies
transferred pursuant to section 36-2856, subsection d from the safe
community enforcement fund to pay the actual reasonable costs incurred by the
department of public safety to carry out this section.
Sec. 4. Delayed repeal
Section
36-2856.01, Arizona Revised Statutes, as added by this act, is repealed from
and after December 31, 2030.
Sec. 5. Subject
to the requirements of article IV, part 1, section 1, Constitution of Arizona,
section 36-2863, Arizona Revised Statutes, is amended to read:
36-2863. Justice
reinvestment fund; exemption; distribution; definition
A. The justice
reinvestment fund is established consisting of all monies deposited pursuant to
section 36-2856 and interest earned on those monies. Monies in the fund
are continuously appropriated. Monies in the fund and its accounts may not be
transferred to any other fund except as provided in this section, do not revert
to the state general fund, and are exempt from the provisions of section 35-190
relating to the lapsing of appropriations. The state treasurer shall administer
the fund.
B. All monies in the
justice reinvestment fund must first be spent, and the state treasurer shall
transfer monies from the fund, to pay:
1. The reasonable
costs incurred by the state treasurer to administer the fund.
2. The reasonable
administrative costs incurred by the department to carry out its duties
pursuant to this section.
c. On
or before june 30 of each year, the state treasurer shall transfer $2,500,000
to the erroneous convictions fund established by section 41-710.03.
C. d. On
or before June 30 and December 31 of each year, the state treasurer shall
transfer all monies in the justice reinvestment fund in
excess of the amounts paid pursuant to subsection subsections B and
C of this section as follows:
1. Thirty-five
percent to county public health departments, in proportion to the population of
each county according to the most recent United States decennial census, for
the purpose of providing justice reinvestment programs or distributing grants
to qualified nonprofit organizations to provide justice reinvestment programs
in that county.
2. Thirty-five
percent to the department for the purpose of distributing grants to qualified
nonprofit organizations that provide justice reinvestment programs in this
state.
3. Thirty percent to
the department for the purpose of addressing important public health issues
that affect this state.
D. E. Grants made pursuant to this section are
exempt from title 41, chapter 23, and each grantee shall provide the granting
agency with an annual report detailing the use of granted monies.
E. F. Monies transferred and received pursuant to
subsection C
D of this section are not considered local revenues for the
purposes of article IX, section 20, Constitution of Arizona.
F. G. The state
treasurer may prescribe forms necessary to make transfers pursuant to
subsection B of this section.
G. H. For the purposes of this section,
"justice reinvestment programs" means initiatives or programs that
focus on any of the following:
1. Public and
behavioral health, including evidence-based and evidence-informed substance use
prevention and treatment and substance use early intervention services.
2. Restorative
justice, jail diversion, workforce development, industry-specific technical
assistance or mentoring services for economically disadvantaged persons in
communities disproportionately impacted by high rates of arrest and incarceration.
3. Addressing the
underlying causes of crime, reducing drug-related arrests and reducing the
prison population in this state.
4. Creating or
developing technology and programs to assist with the restoration of civil
rights and the expungement of criminal records.
Sec. 6. Title 41, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 41-710.03, to read:
41-710.03. Erroneous convictions fund
A. The erroneous convictions fund is established consisting of monies deposited pursuant to section 36-2863, subsection c. 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 pursuant to title 13, chapter 38, article 15.
Sec. 7. Effective date
Title 13, chapter 38, article 15, Arizona Revised Statutes, as added by this act, is effective from and after December 31, 2025.
Sec. 8. Requirements for enactment;
three-fourths vote
Pursuant
to article IV, part 1, section 1, Constitution of Arizona, sections 36-2856 and
36-2863, Arizona Revised Statutes, as amended by this act, section 36-2856.01,
Arizona Revised Statutes, as added by this act, and section 36-2856.01,
Arizona Revised Statutes, as repealed by this act, are effective only on the
affirmative vote of at least three-fourths of the members of each house of the
legislature.