State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1469: agency consolidation; department of insurance

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Transmitted to Governor

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteEstablishes the Department of Insurance and Financial Institutions (Department).

History

The Department of Financial Institutions has charge of the execution of the laws of this state relating to financial institutions and enterprises (A.R.S. § 6-110).  This department is responsible for the licensing, supervision and regulation of state-chartered financial institutions and enterprises to maintain the safety and soundness of the financial industry in Arizona. The Department of Financial Institutions also investigates complaints that are filed by consumers against licensed entities and directs appropriate remedial action if the violations are substantiated (www.dfi.az.gov).

The Arizona Automobile Theft Authority (AATA) is a state agency whose purpose is to deter vehicle theft. The AATA is funded solely by the Insurance Industry who pays AATA $1/year for every vehicle insured in Arizona. The AATA works with law enforcement and prosecution to provide grants for equipment, people and compensation for casework regarding vehicle theft. The AATA also works closely with insurance companies regarding trends of vehicle theft and the public to educate them about vehicle theft and the steps that need to be taken in order to deter it from their neighborhoods (www.aata.az.gov).

Provisions

1.       Amends the chapter heading of Arizona Revised Statutes Title 6, Chapter 1 to "FINANCIAL INSTITUTIONS DIVISION." (Sec. 2)

2.       Modifies the article heading of Arizona Revised Statutes Title 6, Chapter 1, Article 2 to "FINANCIAL INSTITUTIONS DIVISION." (Sec. 4)

3.       Establishes the Financial Institutions Division (Division) within the Department. (Sec. 5)

4.       Requires the Director of the Department (Director) to appoint a superintendent to assist the Director. (Sec. 5)

5.       Stipulates that the Director, instead of the superintendent, must appoint a deputy superintendent. (Sec. 7)

6.       Allows the Director to adopt rules for the administration of certain statutes. (Sec. 25)

7.       Repeals current sections of law to conform with the provisions of this Act. (Sec. 6, 26, 50, 53, 55)

8.       Establishes the AATA within the Department. (Sec. 56)

9.       States that all rules adopted by the Department of Financial Institutions will remain in effect until amended by the Department. (Sec. 67)

10.   Declares that the Department succeeds to the authority, powers, duties and responsibilities of the Department of Financial Institutions and the AATA. (Sec. 68)

11.   Stipulates that this Act does not alter the effect of any actions that were taken by the Department of Financial Institutions and the AATA before January 1, 2020. (Sec. 68)

12.   Prescribes that all administrative matters whether completed, pending or in process of the Department of Financial Institutions and the AATA on January 1, 2020 are transferred to and retain the same status with the Department. (Sec. 68)

13.   Specifies that all certificates and other indicia of qualification and authority that were issued by the Department of Financial Institutions and the AATA retain their validity as provided by law. (Sec. 68)

14.   Stipulates that all equipment, records and other property including appropriated monies that are unexpended and unencumbered on January 1, 2020 of the Department of Financial Institutions and the AATA are transferred to the Department. (Sec. 68)

15.   Directs Legislative Council to prepare proposed legislation to conform statute with the provisions of this Act for consideration in the Fifty-Fifth Legislature, First Regular Session. (Sec. 69)

16.   Adds a definition of administrator, director, division and superintendent of financial institutions. (Sec. 3, 18, 24)

17.   Contains an effective date of from and after June 30, 2020 except as otherwise provided in the Act. (Sec. 70)

18.   Makes technical and conforming changes. (Sec. 1, 3, 7-17, 19-24, 27-49, 51, 52, 54, 56-66)

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22.   Fifty-fourth Legislature                       SB 1469

23.   First Regular Session                            Version 4: Transmitted

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