Arizona Revised Statutes § 44-1406 Investigation; Service Of Demand Sanctions; Confidentiality

44-1406. Investigation; service of demand sanctions; confidentiality

A. If the attorney general has reasonable cause to believe that a person has information or is in possession, custody or control of any document or other tangible object relevant to an investigation for a violation of this article, the attorney general may serve upon the person, before bringing any action in the superior court, a written demand to appear and be examined under oath, to answer written interrogatories under oath and to produce the document or object for inspection and copying. The demand shall:

1. Be served upon the person in the manner required for service of process in this state or by certified mail with return receipt requested.

2. Describe the nature of the conduct constituting the violation under investigation.

3. Describe the class or classes of documents or objects with sufficient definiteness to permit them to be fairly identified.

4. Contain a copy of the written interrogatories.

5. Prescribe a reasonable time at which the person must appear to testify, within which to answer the written interrogatories and within which the document or object must be produced, and advise the person that objections to or reasons for not complying with the demand may be filed with the attorney general on or before that time.

6. Specify a place for the taking of testimony or for production and designate a person who shall be custodian of the document or object.

7. Contain a copy of subsections B and C of this section.

B. If a person objects to or otherwise fails to comply with the written demand served upon him under subsection A, the attorney general may file an action in the superior court for an order to enforce the demand. Venue for the action to enforce the demand shall be in the county in which the person resides or in which the person maintains a place of business or in which the event giving rise to jurisdiction occurred or in which the event had an effect. Notice of hearing the action to enforce the demand and a copy of the action shall be served upon the person in the same manner as that prescribed in the Arizona rules of civil procedure. If the court finds that the demand is proper, that there is reasonable cause to believe there may have been a violation of this article and that the information sought or document or object demanded is relevant to the violation, it shall order the person to comply with the demand, subject to modifications the court may prescribe. If the person fails to comply with such order, the court may issue any of the following orders until the person complies with such order:

1. Adjudging the person in contempt of court.

2. Granting injunctive relief against the person to whom the demand is issued to restrain the conduct which is the subject of the investigation.

3. Granting such other relief as the court may deem proper.

C. The court may award to the attorney general taxable costs and reasonable attorney fees as determined by the court against the person failing to obey the order. Upon motion by the person and for good cause shown, the court may make any further order in the proceedings that justice requires to protect the person from unreasonable annoyance, embarrassment, oppression, burden or expense.

D. If the attorney general determines that disclosure to the respondent of the evidence relied on to establish reasonable cause is not in the best interests of the investigation, he may request that the court examine the evidence in camera. If the attorney general makes this request, the court may examine the evidence in camera and then make its determination.

E. Any procedure, testimony taken or material produced under this section shall be kept confidential by the attorney general before bringing an action against a person under this article for the violation under investigation unless any of the following applies:

1. Confidentiality is waived by the person whose testimony is disclosed.

2. Confidentiality is waived by the person who produced to the attorney general the material being disclosed.

3. The testimony or material is disclosed solely to the person, or the person's attorney, who testified or provided the material to the attorney general.

4. Disclosure is authorized by court order.

F. The attorney general may disclose the testimony or material to a person employed by this state, the United States or any other state, if before disclosure to another state or the United States the receiving official agrees in writing to comply with the confidentiality restrictions of this section.

G. An individual conducting an examination pursuant to this section may exclude from the place of examination any person, except the person being examined and the person's counsel.

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Last modified: October 13, 2016