HB2766 - 572R

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

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

START_STATUTE13-4296. 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.

(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_STATUTE41-710.03. 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.