Arizona Anti-Trafficking and Border Recovery Act
AN ACT
to be known as the Arizona Anti-Trafficking and Border Recovery Act; establishing the Arizona Community Safety and Recovery Initiative; amending Titles 13, 23, 36 and 41, Arizona Revised Statutes; relating to drug demand reduction, criminal labor practices enforcement and workforce integration.
Be it enacted by the Legislature of the State of Arizona:
TITLE 36 AMENDMENTS – STATEWIDE BORDER RECOVERY INITIATIVE
Section 1. Title 36, Arizona Revised Statutes, is amended by adding Chapter 40, to be designated as sections 36-4101 through 36-4109, to read:
CHAPTER 40. STATEWIDE BORDER RECOVERY INITIATIVE
36-4101. Definitions
In this chapter, unless the context otherwise requires:
1. "Behavioral health crisis" means a situation in which an individual is experiencing a mental health or substance use disorder episode that severely impairs their judgment, behavior or ability to function in the community, and which may result in a risk of harm to self or others.
2. "Border-impacted county" means any county designated by the commission pursuant to section 36-4102, subsection D, based on objective data including rates of overdose deaths, substance use disorder prevalence, mental health crisis incidents, seizure of illicit narcotics, and limited treatment access. The designation shall recognize that the impacts of border-related drug trafficking extend to all regions of this state.
3. "Commission" means the Arizona Border Recovery and Public Safety Commission established by section 36-4102.
4. "Evidence-based treatment" means substance use disorder and mental health disorder interventions that are based on scientific evidence of effectiveness, including but not limited to medication-assisted treatment, cognitive behavioral therapy, contingency management and peer support services.
5. "Long-term rehabilitation center" means a state-operated, non-carceral residential facility providing evidence-based treatment for substance use disorders for a period of six months to two years.
6. "Mental health recovery center" means a state-operated, non-carceral residential facility providing comprehensive, evidence-based treatment and stabilization for individuals with severe mental health disorders, co-occurring substance use disorders or who are in a behavioral health crisis, as an alternative to incarceration or hospitalization.
7. "Mobile health clinic" means a self-contained, transportable medical unit capable of providing clinical services, including addiction prevention, treatment, mental health services and recovery services.
36-4102. Arizona Border Recovery and Public Safety Commission; membership; duties
A. The Arizona Border Recovery and Public Safety Commission is established consisting of:
1. The director of the Arizona department of health services or the director's designee.
2. The director of the Arizona health care cost containment system or the director's designee.
3. One sheriff from a county that borders Mexico, one sheriff from a rural county not bordering Mexico, and one sheriff from an urban county, appointed by the Arizona Sheriffs' Association.
4. Two physicians licensed in this state with experience in addiction medicine or psychiatry, one appointed by the Arizona Medical Association and one appointed by the Arizona Psychiatric Society.
5. Two representatives from recovery organizations, one from a faith-based organization and one from a peer-led organization, appointed by the governor.
6. Two members of the public, one appointed by the president of the senate and one appointed by the speaker of the house of representatives.
B. The commission shall:
1. Develop and implement the statewide border recovery initiative, prioritizing the disruption of cartel-driven addiction and the restoration of community safety.
2. Deploy mobile health clinics to border-impacted counties, with initial priority given to counties within one hundred miles of the international border.
3. Establish and operate long-term rehabilitation centers throughout this state pursuant to section 36-4105, with at least one center located in a county that borders Mexico.
4. Establish and operate mental health recovery centers throughout this state pursuant to section 36-4108, with at least one center located in a county that borders Mexico.
5. Prioritize services for fentanyl and methamphetamine addiction prevention, reversal and long-term treatment, recognizing these as the primary narcotics driving the border-related overdose crisis.
6. Coordinate with local law enforcement, health departments, treatment providers and the judiciary statewide to create a unified front against the public health consequences of border-related narcotics trafficking.
7. Develop standards for judicial diversion to treatment in coordination with the Arizona supreme court.
C. The commission shall meet at least quarterly, with no fewer than two meetings per year held in a county that borders Mexico.
D. Within ninety days after its establishment, the commission shall designate border-impacted counties based on objective data including overdose mortality rates, narcotics seizure data from the Arizona department of public safety, substance use disorder prevalence, mental health crisis incidents and availability of treatment services.
36-4103. Mobile health clinic services; requirements
A. Mobile health clinics deployed pursuant to this chapter shall provide:
1. Addiction prevention education and screening, with specific focus on fentanyl and methamphetamine risks.
2. Mental health crisis screening and stabilization.
3. Naloxone distribution and overdose response training.
4. Medication-assisted treatment for substance use disorders.
5. Assessment and referral to appropriate treatment levels, including long-term rehabilitation centers and mental health recovery centers.
6. Basic primary care and behavioral health services.
B. Services shall be provided at no cost to Arizona residents.
C. Clinics shall operate in coordination with county sheriffs and local health departments to ensure security and community access, particularly in rural and border regions.
36-4104. Judicial diversion to treatment and stabilization
A. Notwithstanding any other law, any person charged with a nonviolent misdemeanor or low-level felony offense where the court finds, based on a clinical assessment, that the alleged conduct was primarily caused by a substance use disorder, mental health disorder or co-occurring disorders, may petition the court for diversion to a long-term rehabilitation center, a mental health recovery center or other approved treatment program.
B. On successful completion of the rehabilitation or recovery program, the court shall dismiss the charges with prejudice.
C. The commission shall develop statewide standards for judicial referral in coordination with the Arizona supreme court and the administrative office of the courts, including specific protocols for screening and assessment for mental health conditions.
36-4105. Establishment of long-term rehabilitation centers
A. The commission shall establish and operate long-term rehabilitation centers in regions throughout this state within two years after the effective date of this chapter, with at least one center in a county that borders Mexico and one in a rural region not bordering Mexico.
B. Each center shall:
1. Provide evidence-based treatment, including medication-assisted treatment, individual and group therapy, vocational training and life skills education.
2. Operate on a voluntary admission basis, with priority given to Arizona residents referred through mobile clinics, the judiciary or law enforcement.
3. Be staffed by licensed medical professionals, certified addiction counselors and peer support specialists.
4. Provide a secure, therapeutic environment that is distinct in appearance and function from a correctional facility.
5. Develop individualized aftercare plans including housing assistance, continued outpatient care and employment support.
C. Admission to a center does not constitute a conviction or incarceration, and residents retain all civil rights not specifically limited for treatment purposes.
D. The commission shall ensure geographic equity in service delivery, with particular attention to rural, border and tribal communities.
36-4106. Funding and public-private partnerships
A. The initiative shall be funded through annual legislative appropriations, federal grants, including medicaid reimbursement for eligible services, and private donations.
B. The commission may enter into public-private partnerships with nonprofit organizations, tribal nations and accredited treatment providers to operate centers, subject to state oversight and quality standards.
C. The commission shall pursue medicaid reimbursement and private insurance coverage for treatment services where applicable.
36-4107. Reporting requirements
The commission shall report annually to the governor and the legislature on:
1. The number of individuals served through mobile clinics and rehabilitation centers, disaggregated by county and border-impact status.
2. The types of services provided and treatment outcomes.
3. The quantities of naloxone distributed and reported overdose reversals.
4. Success rates for judicial diversion participants.
5. Reductions in emergency room visits, arrests and incarceration costs related to substance abuse and mental health crises statewide, with specific focus on border-impacted counties.
6. Economic impact, including cost savings from reduced law enforcement, corrections and hospitalization expenditures.
7. Progress toward geographic equity in service delivery, particularly in border and rural regions.
8. Data on diversion from incarceration and hospitalization via mental health recovery centers, including the number of individuals served, length of stay and post-discharge outcomes.
9. Reductions in county jail populations and state prison admissions attributable to the availability of diversion programs under this chapter.
36-4108. Establishment of mental health recovery centers
A. The commission shall establish and operate mental health recovery centers in regions throughout this state within two years after the effective date of this chapter. Centers shall be sited to ensure geographic equity, with particular attention to rural, border and tribal communities.
B. Each center shall:
1. Provide comprehensive, evidence-based treatment including psychiatric care, medication management, trauma-informed therapy and psychosocial rehabilitation.
2. Operate as a voluntary, alternative-to-incarceration and alternative-to-hospitalization facility. Priority admission shall be given to Arizona residents referred through:
(a) The judiciary pursuant to section 36-4104.
(b) Law enforcement or mobile crisis units as an alternative to arrest or emergency detention.
(c) Hospital emergency departments for step-down stabilization.
3. Be staffed by multidisciplinary teams including psychiatrists, psychologists, licensed clinical social workers, psychiatric nurses, certified peer support specialists and case managers.
4. Provide a secure, therapeutic and homelike environment that is distinct in appearance and function from a correctional or institutional facility.
5. Develop individualized discharge and aftercare plans in coordination with community-based providers, including assistance with housing, benefits and continued outpatient care.
C. Admission to a center does not constitute a conviction or incarceration. Residents retain all civil rights not specifically limited for clinical and safety purposes pursuant to individualized treatment plans.
36-4109. Rulemaking
The commission may adopt rules necessary to carry out the provisions of this chapter.
TITLE 13 AMENDMENTS – CRIMINAL PENALTIES FOR LABOR EXPLOITATION
Section 2. Title 13, chapter 13, Arizona Revised Statutes, is amended by adding article 9, to be designated as sections 13-1381 through 13-1385, to read:
ARTICLE 9. CRIMINAL LABOR PRACTICES
13-1381. Definitions
In this article, unless the context otherwise requires:
1. "Labor contractor" means any person or entity engaged in the business of supplying workers to perform labor for another person or entity, including farm labor contractors, staffing agencies and any person who recruits or refers workers for employment.
2. "Worker" means any person performing labor or services, regardless of that person's immigration status.
13-1382. Aggravated labor trafficking; classification
A. A person commits aggravated labor trafficking if the person commits an offense under section 13-1307, labor trafficking, and the conduct involves one or more of the following aggravating factors:
1. The use or threatened use of a deadly weapon or dangerous instrument.
2. Infliction of serious physical injury on the victim.
3. The victim was under eighteen years of age.
4. The offense involved the knowing destruction, concealment, confiscation or withholding of the victim's passport, driver license or other government-issued identification document with the intent to impede the victim's freedom of movement or ability to leave employment.
5. The offense involved housing workers in conditions that violate state or local housing, health or safety codes and that place the workers' health or safety at serious risk.
B. Aggravated labor trafficking is a class 2 felony. The presence of each additional aggravating factor may be considered at sentencing for purposes of enhancement.
13-1383. Labor contractor fraud; classification; civil liability
A. A labor contractor commits labor contractor fraud if, with intent to defraud a worker or an employer, the contractor:
1. Charges or collects an unlawful fee from a worker for recruitment, referral, procurement of employment or any related service. For the purposes of this section, any fee charged to a worker for these services is presumed unlawful. This presumption may be rebutted by clear and convincing evidence that the fee is expressly permitted by federal law and was for a service that the worker voluntarily and knowingly contracted for.
2. Makes a materially false statement or promise to a worker concerning the terms, conditions or existence of employment.
3. Fails to provide a written contract to a worker, in a language understood by the worker, detailing the essential terms of employment including wage rate, hours, worksite location and housing address, if provided, within seventy-two hours after the worker's commencement of work.
B. Labor contractor fraud is a class 6 felony.
C. In addition to any criminal penalty, a person who violates this section is subject to a civil penalty of up to $10,000 for each violation, payable to this state, and is liable to the aggrieved worker for treble damages, costs and reasonable attorney fees.
13-1384. Sentencing considerations; asset forfeiture
A. In sentencing a person convicted of an offense under this article, the court shall consider ordering:
1. Restitution to each victim in an amount not less than three times the fair market value of the labor or services provided.
2. Forfeiture of any property used or intended to be used to commit or facilitate the commission of the offense.
B. Assets forfeited pursuant to this section shall be deposited in a restricted account administered by the attorney general to fund investigations, prosecutions and victim services related to labor trafficking and exploitation.
13-1385. Unlawful worker retaliation; classification; pilot program
A. An employer, labor contractor or any person acting on their behalf commits unlawful worker retaliation if the person, with the intent to retaliate for or prevent the reporting of a violation of law, knowingly:
1. Threatens to report or actually reports the worker or the worker's family member to a federal immigration agency.
2. Threatens to cause or attempts to cause the early termination or nonrenewal of the worker's federal nonimmigrant visa status.
3. Withholds or threatens to withhold any passport, employment authorization document or other federal immigration document.
B. Until July 1, 2030, this section shall be implemented as a pilot program and shall apply only in Maricopa, Pima and Yuma counties.
C. Unlawful worker retaliation is a class 3 felony.
D. For the purposes of this section, "employer" includes any person or entity that files or sponsors a petition or application for a worker's federal nonimmigrant visa status.
E. The attorney general shall conduct a biennial evaluation of the pilot program, assessing its effectiveness, prosecution rates and impact on worker reporting of violations. A report shall be submitted to the governor, the president of the senate and the speaker of the house of representatives by December 31, 2029.
TITLE 23 AMENDMENTS – AGRICULTURAL AND SEASONAL LABOR PROTECTIONS
Section 3. Title 23, chapter 2, Arizona Revised Statutes, is amended by adding article 9, to be designated as sections 23-391 through 23-393, to read:
ARTICLE 9. EMPLOYER AND CONTRACTOR RESPONSIBILITIES FOR SEASONAL LABOR
23-391. Joint liability for wage violations
A. An agricultural employer, as defined by the industrial commission, that contracts for labor or services with a labor contractor shall be jointly and severally liable for any unpaid wages, interest or civil penalties owed by that contractor to workers for work performed for the employer.
B. Subsection A of this section does not apply if the agricultural employer can demonstrate, as an affirmative defense, that it has:
1. Verified the labor contractor possessed a valid certificate of registration as a farm labor contractor from the United States department of labor, if required by federal law, at the time of contracting.
2. Maintained, for a period of four years, payroll records received from the labor contractor documenting payment of wages to workers assigned to the employer's premises.
3. Not been found by a court or the industrial commission to have participated in, or had knowledge of, the labor contractor's wage violations.
C. For the purposes of this section, "agricultural employer" also includes any person or entity in the hospitality, construction, landscaping or food processing sectors that contracts for seasonal or temporary labor or services with a labor contractor. The joint liability provisions of this section shall apply to such employers.
23-392. Enhanced enforcement unit; rural outreach and visa holder protections
A. The industrial commission shall establish and fund a dedicated agricultural and seasonal worker enforcement unit.
B. The unit shall:
1. Investigate complaints of wage theft, unsafe working conditions and housing violations in the agricultural, hospitality, construction, landscaping and food processing sectors.
2. Conduct targeted, unannounced audits of labor contractors and employers in regions with historically high rates of violations.
3. Develop and distribute educational materials in relevant languages informing workers of their rights under state law.
4. Establish a multilingual hotline and online portal for reporting violations.
5. Coordinate with the attorney general and county attorneys for criminal referrals where appropriate.
6. Prioritize investigations involving workers recruited from outside the United States or who are participants in federal cultural exchange or training programs, due to their heightened vulnerability to exploitation and isolation from local support networks.
C. The unit shall maintain a regional office in a major agricultural county and shall conduct regular mobile office hours in rural counties.
23-393. Retaliation protection
A. It is unlawful for any employer, labor contractor or their agent to discharge, threaten, discriminate against or otherwise retaliate against a worker because the worker has:
1. Filed a complaint or instituted or caused to be instituted any proceeding under this article or related wage laws.
2. Testified or is about to testify in any such proceeding.
3. Exercised any right afforded by this article on behalf of himself, herself or others.
B. A worker who prevails in a civil action for retaliation under this section shall be awarded treble damages, reinstatement and reasonable attorney fees and costs.
TITLE 41 AMENDMENTS – WORKFORCE INTEGRATION PROGRAM
Section 4. Title 41, Arizona Revised Statutes, is amended by adding chapter 60, to be designated as sections 41-6001 through 41-6006, to read:
CHAPTER 60. ARIZONA WORKFORCE INTEGRATION PROGRAM
41-6001. Definitions
In this chapter, unless the context otherwise requires:
1. "Eligible individual" means an individual who is lawfully present in the United States with authorization to work, as verified through the federal systematic alien verification for entitlements program pursuant to 8 United States Code section 1324a.
2. "Office" means the office of workforce integration established by section 41-6002.
3. "Program" means the Arizona workforce integration program.
41-6002. Office of Workforce Integration; establishment; director
A. The office of workforce integration is established within the Arizona commerce authority.
B. The director of the Arizona commerce authority shall appoint a director for the office.
C. The director shall have experience in workforce development, education or economic development.
41-6003. Duties of the office
The office shall:
1. Coordinate with Arizona community colleges, career and technical education districts and nonprofit organizations to make English language acquisition and workplace communication courses accessible statewide, with a focus on online and rural delivery models.
2. Develop and distribute materials on Arizona employment law, worker rights and workplace safety standards.
3. Serve as a clearinghouse for information on the state process for the recognition of professional and occupational credentials earned in other countries or states.
4. Partner with industry associations and employers to promote workplace integration and mentorship.
5. Prioritize outreach and services in rural and high-need economic regions of this state.
6. Collaborate with the Arizona department of economic security and local workforce development boards to align services.
7. In coordination with the attorney general, develop and distribute a "know your rights" guide for temporary foreign workers and exchange visitors in Arizona. The guide shall be translated into commonly spoken languages and shall clearly explain state labor laws, the prohibition on document confiscation and retaliation, and how to safely report abuses to state authorities. The office shall partner with employers, industry associations and consular officials to ensure distribution.
41-6004. Arizona workforce readiness certificate
A. The office shall develop and issue an Arizona workforce readiness certificate to any eligible individual who:
1. Demonstrates proficiency in workplace English communication through a standardized assessment or successful completion of an approved course.
2. Completes an approved course on Arizona employment law and worker rights.
3. Completes training in an in-demand industry skill area, as identified by the Arizona office of economic opportunity.
B. The certificate may be presented to employers as evidence of skills and readiness.
C. The office shall make all coursework available through a cost-free online learning platform.
41-6005. Federal cooperation and verification
A. The office is authorized to cooperate with and seek grants from federal agencies, including the United States department of labor and the United States department of homeland security, for programs that assist eligible individuals with workforce integration, including individuals granted federal victim-based immigration relief.
B. All services under this chapter shall be preceded by verification of the individual's work authorization through the federal systematic alien verification for entitlements program or a subsequently enacted federal verification system.
C. All activities under this chapter must be conducted in a manner consistent with federal law.
41-6006. Reporting
The office shall report annually to the governor and the legislature on:
1. The number of individuals served, disaggregated by county.
2. Course completion rates and industry sectors of training.
3. Employment and wage outcomes for program participants, where measurable.
4. Progress toward statewide access, including rural participation rates.
Section 5. Joint Legislative Oversight Committee; establishment
A. The Arizona Community Safety and Recovery Oversight Committee is established consisting of five members of the senate, appointed by the president of the senate, and five members of the house of representatives, appointed by the speaker of the house of representatives. No more than three members from each chamber may be from the same political party.
B. The committee shall:
1. Meet at least quarterly during the first three years after the effective date of this act to review the implementation of all provisions.
2. Receive the annual reports required by sections 36-4107, 41-6006 and 13-1385.
3. Hold public hearings to receive testimony from state agencies, stakeholders and the public on program performance.
4. Submit a biennial report to the full legislature with findings and recommendations, including whether to continue, modify or terminate any provision of this act.
Section 6. Appropriation
The sum of $82,000,000 is appropriated from the state general fund in fiscal year 2027-2028 to the Arizona Community Safety and Recovery Initiative, to be allocated as follows:
1. $35,000,000 to the Arizona Border Recovery and Public Safety Commission for mobile health clinics and the establishment of both long-term rehabilitation centers and mental health recovery centers in multiple regions, with at least one of each center type located in a county that borders Mexico.
2. $18,000,000 to the Industrial Commission for the establishment and operation of the Agricultural and Seasonal Worker Enforcement Unit under Title 23, Article 9, including a dedicated $3,000,000 workforce development subcategory for scholarships and loan forgiveness for behavioral health professionals and labor law investigators who commit to three years of service in the new centers or enforcement unit.
3. $10,000,000 to the Attorney General for the prosecution of labor trafficking, unlawful worker retaliation and exploitation cases, victim services and the asset forfeiture restricted account established in section 13-1384, including funding for legal defense of the pilot provision in section 13-1385.
4. $7,000,000 to county sheriffs' departments statewide for specialized training in identifying labor trafficking and exploitation, and for investigative resources dedicated to these crimes. Allocation shall prioritize sheriffs' departments in border and rural counties.
5. $5,000,000 to the Arizona Commerce Authority for the Office of Workforce Integration and the Arizona Workforce Readiness Certificate program, including the development and distribution of the "Know Your Rights" guide.
6. $3,000,000 to the Administrative Office of the Courts for training judges, prosecutors and defense attorneys on the judicial diversion program and standards under Title 36, Chapter 40.
7. $4,000,000 to the Arizona Department of Administration for the development of integrated data systems to support the reporting and coordination requirements of this act between the commission, courts, law enforcement and the industrial commission.
All monies remaining unexpended and unencumbered on June 30, 2029, revert to the state general fund.
Section 7. Federal preemption and severability
A. Federal preemption savings clause: Notwithstanding any other provision of this act, no provision shall be construed to:
1. Confer, grant or regulate any immigration status, which is the exclusive purview of the federal government.
2. Require any state official to violate federal immigration law.
3. Apply to or regulate the terms of any federal nonimmigrant visa program, including but not limited to the H-2A, H-2B, H-1B, J-1 or other similar programs, except where state law of general applicability, such as laws prohibiting assault, fraud, wage theft or retaliation, applies to all persons and employers within this state.
B. Severability: If a provision of this act or its application to any person or circumstance is held invalid by a court of competent jurisdiction due to federal preemption or any other reason, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable. The legislature expressly declares that it would have enacted the remaining portions of this act, particularly Title 36, Chapter 40 and Title 23, Article 9, even if any other provision were found invalid.
Section 8. Short title
This act may be cited as the "Arizona Anti-Trafficking and Border Recovery Act".
Section 9. Effective date
This act is effective from and after December 31, 2027.
