On January 14, 2025, the Arizona Supreme Court’s Committee on Alternative Business Structures (ABS) proposed amendments to ACJA Section 7-209, which regulates ABS entities. The proposed changes include refinements to disciplinary measures, updates to compliance audit requirements, streamlined revocation procedures, and the removal of unnecessary merger and acquisition fees.

Key amendments include:

• Disciplinary Measures: Adjusting the period for lesser discipline from 10 years to 5 years.
• Compliance Audits: Introducing new audit requirements and oversight measures for Authorized Person additions and Compliance Lawyer changes.
• Revocation Updates: Extending the revocation timeframe from 3 to 5 years to align with Arizona Supreme Court Rule 64(d).

These amendments are open for public comment until February 25, 2025. ABS entities and stakeholders are encouraged to review the proposed changes and submit individual comments. The NALFA board is also considering submitting comments on behalf of its members.

For more details, visit the Arizona Judicial Branch website.