The Arizona legislature passed Senate Bill 1238, in April of 2013.  Governor Brewer signed the bill on April 30, 2013.  SB 1238 provides for the creation of a new type of Arizona corporation called the “benefit corporation” beginning January 1, 2015.  As of the date of this post, 27 states have adopted benefit corporation statutes.

The benefit corporation is not a type of nonprofit corporation. An Arizona benefit corporation is a type of for profit corporation that seeks higher standards of corporate purpose, accountability, and transparency.  The Articles of Incorporation on an Arizona benefit corporation must state that the corporation is formed for a general public benefit.

An Arizona benefit corporation may also promote one or more “specific public benefits.”  Arizona Revised Statutes Section 10-2402.5 provides that “specific public benefits” include:

(a) Providing low-income or underserved individuals or communities with beneficial products or services.

(b) Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business.

(c) Protecting or restoring the environment.

(d) Improving human health.

(e) Promoting the arts, sciences or advancement of knowledge.

(f) Increasing the flow of capital to entities with a purpose to benefit society or the environment.

(g) Conferring any other particular benefit on society or the environment as specified in the benefit corporation’s articles of incorporation.