Assigned to JUD FOR COMMITTEE ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session FACT SHEET FOR H.B. 2722 strategic actions; public participation Purpose Expands the applicability of motions to dismiss strategic actions against public participation and allows a court to quash, rather than only dismiss, a strategic action against public participation. Background A defending party may file a motion to dismiss a legal action involving a party's exercise of the right to petition. The court must grant the motion unless the non-moving party can show that the moving party's exercise of the right to petition did not contain any reasonable factual support or arguable basis in law, and that the moving party's acts caused actual compensable injury to the responding party. At the request of the moving party, the court must determine whether the lawsuit was brought to deter or prevent the moving party from exercising constitutional rights, and thereby brought for an improper purpose, such as causing unnecessary delay or needless increase in the cost of litigation. The moving party must be awarded reasonable attorney fees if the motion to dismiss is granted. Statute governing the ability of a party to file a motion to dismiss an action brought in this manner does not: 1) affect, limit or preclude the right of the moving party to any remedy otherwise authorized by law; 2) apply to an enforcement action that is brought in the name of this state or a political subdivision of this state; 3) create any privileges or immunities or otherwise affect, limit or preclude any privileges or immunities authorized by law; or 4) limit or preclude a legislative or executive body or a public agency from enforcing the rules of procedure and rules of order of the body or agency (A.R.S. § 12-752). Exercise of the right to petition means any written or oral statement that falls within the constitutional protection of free speech and that is made as part of an initiative, referendum or recall effort or that is all of the following: 1) made before or submitted to a legislative or executive body or any other governmental proceeding; 2) made in connection with an issue that is under consideration or review by a legislative or executive body or any other governmental proceeding; and 3) made for the purpose of influencing a governmental action, decision or result (A.R.S. § 12-751). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Repeals statute defining exercise of the right to petition, governmental proceeding and legal action. FACT SHEET H.B. 2722 Page 2 2. Allows a person to file a motion to dismiss or quash, rather than only dismiss, an action that involves, in addition to the person's right to petition, the person's constitutional right of speech, right to freely associate or right to peaceably assemble. 3. Requires the court to grant the motion to dismiss or quash unless: a) if the responding party is a state actor, the responding party shows that the legal action in question is supported by clearly established law and that the trier of fact, on undisputed material facts, could not reasonably find that the responding party acted in order to deter, prevent or retaliate against the moving party's exercise of constitutional rights; or b) if the responding party is not a state actor, the responding party shows that the legal action in question is justified by existing law or by reasonable argument for extending or modifying existing law. 4. Removes the existing exception to a court being required to grant a motion to dismiss based on a finding that the moving party's exercise of the right to petition did not contain any reasonable factual support or any arguable basis in law. 5. Removes the requirement that the court, at the request of the moving party, determine whether an action was brought to deter or prevent the moving party from exercising constitutional rights and is thereby brought for an improper purpose. 6. Stipulates that a moving party is encouraged to pursue additional damages, in addition to additional sanctions, if a court finds that an action was brought to deter, prevent or retaliate against the exercise of constitutional rights or is otherwise brought for an improper purpose. 7. Reduces, from 90 days to 60 days, the time period within which a motion to dismiss or quash may be filed after the service of the complaint or other document on which the motion is based. 8. Removes the requirement that the court, when possible, give calendar preference to strategic actions and conduct an expedited hearing after a motion to dismiss has been filed. 9. Requires the court to schedule a hearing on a motion to dismiss or quash within 30 days after service of the motion, unless docket conditions require a later hearing or a court rule specifically provides otherwise. 10. Requires all discovery proceedings in an action to be stayed on the filing of a notice of motion to dismiss or quash, unless a court rule specifically provides otherwise. 11. Requires the stay of discovery to remain in effect until notice of entry of the order ruling on the motion. 12. Allows the court to order that specified discovery be conducted on noticed motion and for good cause shown. 13. States that, if the court denies a motion to dismiss or quash, the denial and the court's supporting findings are not admissible in evidence at any later stage of the case or in any subsequent action. FACT SHEET H.B. 2722 Page 3 14. States that the burden of proof or degree of proof that is otherwise applicable is not affected by the findings in any later stage of the case or in any subsequent proceeding. 15. States that an order granting or denying a motion to dismiss or quash is appealable. 16. Requires the court of appeals to expedite any appeal unless the court, for good cause shown, finds that expedited review is not feasible under the circumstances, or a court rule specifically provides otherwise. 17. Expands the applicability of statute relating to strategic actions against public participation to enforcement actions brought by the state or its political subdivisions. 18. Removes language stating that statute relating to strategic actions against public participation does not create any privileges or immunities or otherwise affect, limit or preclude any privileges or immunities authorized by law. 19. Defines legal action as: a) any civil action, claim, cross-claim or counterclaim for damages other than nominal damages; b) any criminal prosecution; and c) any written investigative demand of a public meeting or proceeding or other compulsory legal process or any regulatory or administrative action by a state actor. 20. States that a legal action does not include a motion to dismiss or quash a strategic action against public participation. 21. Defines state actor as: a) the state and any of its political subdivisions; b) any branch, department, board, bureau, commission, council or committee of an entity of the state or its political subdivisions; and c) any officer, employee or other agent of the state or its political subdivisions who is acting in the officer's, employee's or agent's official capacity. 22. Contains a severability clause. 23. Makes technical and conforming changes. 24. Becomes effective on the general effective date. House Action JUD 2/16/22 DPA 5-3-0-2 3 rd Read 2/22/22 40-19-1 Prepared by Senate Research March 8, 2022 ZD/sr