Assigned to MAPS FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2759
nonprofits; facilitation; trafficking offenses; penalties
Purpose
Prohibits the Arizona Corporation Commission (ACC) from incorporating a corporation if
an officer, director or trustee has been convicted of specified trafficking offenses. Subjects a person
who facilitates, rather than just engages in, trafficking offenses to civil liability to the person
trafficked.
Background
Incorporation occurs and the corporate existence begins when the articles of incorporation
and certificate of disclosure are delivered to the ACC for filing. The certificate of disclosure must
set forth specified information regarding all persons who, at the time of the disclosure's delivery,
are officers, directors, trustees and incorporators, including whether any of the persons have been
convicted of a felony involving a transaction in securities, consumer fraud or antitrust, or an
offense for which the essential elements consisted of fraud, misrepresentation, theft by false
pretenses or restraint of trade or monopoly, in any state or federal jurisdiction within the five-year
period immediately preceding the execution of the certificate (A.R.S. §§ 10-3202 and 10-3203).
A person who engages in the trafficking of a person or who intentionally or knowingly
benefits from the trafficking of another person is civilly liable to the person trafficked for damages
that arise from the trafficking of that person, including actual damages, court costs, reasonable
attorney fees, exemplary damages and mental anguish. For the purposes of determining civil
liability, trafficking of a person means conduct that constitutes an offense under unlawfully
obtaining labor or services, sex trafficking, trafficking of persons for forced labor or services,
taking a child for the purpose of prostitution and child sex trafficking (A.R.S. § 12-722).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits the ACC from incorporating a corporation if an officer, director or trustee of the
corporation has been convicted of:
a) smuggling;
b) participating in or assisting a human smuggling organization;
c) unlawfully obtaining labor or services;
d) sex trafficking;
e) trafficking of persons for forced labor or services;
f) child sex trafficking; or
g) any federal immigration offense. FACT SHEET
H.B. 2759
Page 2
2. Subjects a person who facilitates the trafficking of a person or who intentionally or knowingly
benefits from a trafficking venture to civil liability for outlined damages to the person
trafficked.
3. Becomes effective on the general effective date.
House Action
JUD 2/15/23 DP 5-3-0-0
3
rd
Read 3/1/23 31-28-1
Prepared by Senate Research
March 20, 2023
ZD/sr