The Arizona Revised Statutes have been updated to include the revised sections from the 57th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 57th Legislature, 2nd Regular Session, which convenes in January 2026.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
12-3451. Definitions
In this chapter, unless the context otherwise requires:
1. "Action" means a civil action, administrative proceeding, claim or other cause of action.
2. "Foreign country of concern" includes the following:
(a) A foreign government listed in 15 Code of Federal Regulations section 791.4.
(b) A country designated as a threat to critical infrastructure by the federal government or the governor.
3. "Foreign entity of concern" means a partnership, association, corporation, organization or other combination of persons that meets any of the following:
(a) Is organized or incorporated in a foreign country of concern.
(b) Is owned or controlled by the government, a political subdivision or a political party of a foreign country of concern.
(c) Has a principal place of business in a foreign country of concern.
(d) Is owned, organized or controlled by or affiliated with a foreign organization that has either been:
(i) Placed on the federal office of foreign assets control specially designated nationals and blocked persons list.
(ii) Designated by the United States secretary of state as a foreign terrorist organization.
4. "Licensed health care provider" has the same meaning prescribed in section 12-561.
5. "Litigation financier" means a person that has entered into a litigation financing agreement with a party to an action or counsel of record for a party to an action.
6. "Litigation financing agreement" or "litigation financing" means any agreement creating a right to receive payment by anyone which is contingent in any respect on the outcome of an action or on the outcome of any matter within a portfolio that includes the action and that involves the same counsel or affiliated counsel, but excluding the following:
(a) A named party to the action if payments made to the named party are provided exclusively for personal and family use and are provided on condition that they are not to be used for legal filings, legal document preparation and drafting, appeals, creation of a litigation strategy, drafting testimony or other expenses directly related to litigation.
(b) A counsel of record, a law firm of record or any referring counsel for legal services or advancement of legal costs provided by counsel of record, where the services or costs are provided by a legal counsel of record in accordance with the rules of professional conduct adopted by the supreme court.
(c) A person with a preexisting contractual obligation to indemnify or defend a party to the action or a health insurer who has paid or is obligated to pay any sums for health care services rendered to an injured person under the terms of a health insurance policy, plan or agreement.
(d) A financial institution, as defined in section 6-101, for repayment of loans made directly to a party or a party's counsel when repayment of the loan is not contingent on the outcome of an action by settlement, judgment or otherwise or on the outcome of any matter within a portfolio that includes the action and involves the same counsel or affiliated counsel.
(e) Funding that is provided to a nonprofit organization, whether as a party or on behalf of a client or member of the organization, and irrespective of whether the nonprofit organization seeks an award of costs or attorney fees in providing pro bono representation.
(f) Funding provided by a nonprofit organization that is exempt from taxation under 501(c)(3) of the United States internal revenue code, by grant or otherwise, to support the pursuit of litigation.
(g) A person providing funding to a medical practice or facility solely for its receivables.
(h) Where there is no right to payment in excess of the funding actually provided.