I'm not sure about 2-strokes for AZ but I do know that AZ laws are pretty laxed for street legalizing.
1. DOT Tires (they may or may not check) I recommend the Michelin Baja (front and rear) only 18 inch available for rear

2. Head light (high and low beam)
3. Tail Light (with brake light, switch needed on rear brake master cylider)
4. Horn (any cheap, batter powered one will work - look on MTN Bike sites)
5. Mirror (mounted on left) fold down type are great
6. License Plate (with light)
7. Rear reflector (red)
8. Motorcycle endorced drivers license
9. Insurance