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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 4070: nonprofits; facilitation; trafficking offenses; penalties
Sponsor: Representative Kolodin, LD 3
Committee on Judiciary
Overview
Restricts the Arizona Corporation Commission (ACC) from incorporating any nonprofit corporation if an officer, director or trustee of that corporation has been convicted of certain offenses and expands civil liability for those who facilitate or benefit from facilitating the trafficking of another person.
History
The ACC has any authority reasonably necessary to administer Arizona corporations and carry out its statutory duties, including certifying new corporations. Generally, statute does not impose specific eligibility requirements for corporate directors, officers or trustees and instead leaves qualifications to the corporation’s bylaws, except that professional corporations must have at least half of their directors, and the president, be licensed in Arizona or another state to provide the professional service stated in the articles of incorporation (A.R.S. §§ 10-130; 10-802; 10-2230).
A.R.S. § 12-722 outlines the parameters regarding a civil cause of action and available damages for trafficking victims who sue their traffickers or anyone who knowingly benefited from the trafficking venture.
Provisions
1. Restricts the ACC from incorporating any nonprofit corporation if an officer, director or trustee of that nonprofit corporation has been convicted of:
a. smuggling;
b. participating in or assisting a human smuggling organization;
c. trafficking of persons for or otherwise unlawfully obtaining labor or services;
d. sex trafficking or child sex-trafficking; or
e. any federal immigration offence. (Sec. 1)
2. Adds civil liability for any person who facilitates the trafficking of a person or who benefits from facilitating a venture that traffics a person. (Sec. 2)
3. Mandates that any person who facilitates the trafficking of a person or who benefits from facilitating a venture that traffics a person is jointly liable with any other person found liable for the entire amount of damages arising from the trafficking. (Sec. 2)
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Initials NM/NP HB 4070
2/12/2026 Page 0 Judiciary
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