AZ HB2263

Expands grounds for early lease termination to include victims of sexual assault (section 13-1406) in addition to existing domestic violence protections, allowing termination with protective order or law enforcement report.

Modifies security deposit language in section 33-1321 to clarify that security cannot exceed "more than" one and one-half month's rent and that any fee or deposit not designated nonrefundable "is" refundable.

Establishes 60-day dispute period for tenants to challenge itemized deductions from security deposits after landlord provides the list, with undisputed amounts becoming final and waiving further tenant claims.

Requires landlord to provide tenant with move-in form documenting existing damages and written notification of right to be present at move-out inspection, with exceptions for evictions involving material breach and reasonable fear of violence.

Clarifies that a person named in a protective order or departmental report can be held civilly liable for economic losses caused by provoking early lease termination, including unpaid rent, termination fees, repair costs, and rent reductions.