ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: APPROP DP 10-0-0-1

HB 2406: state treasurer; financial services

Sponsor:  Representative Cobb, LD 5

Caucus & COW

Overview

Stipulates which types of services the Arizona State Treasurer's Office is required to contract for on behalf of state agencies and which types of financial services require State Treasurer permission in order to be contracted for by state agencies.

History

State law mandates that the State Treasurer contract for banking services required by any state agency. A state agency is prohibited from contracting banking services without written permission from the State Treasurer.

State law requires the State Treasurer to select a servicing bank that:

1)    Conforms to the specifications set out by the offer;

2)    Supplies the required services; and

3)    Has the highest value to the state as determined by the state treasurer and the board of investment (A.R.S. § 35-315).

The state treasurer is responsible for the safekeeping of all securities acquired under Title 35, chapter 2, article 2 and those for which the State Treasurer is the lawful custodian. Securities may be deposited for safekeeping with any bank eligible to be the state servicing bank (A.R.S. § 35-317).

Provisions

1.    Changes the services for which the State Treasurer must contract for on behalf of state agencies from banking services to financial services

2.    Changes the services that require the State Treasurer's permission in order to be contracted for by state agencies from banking services to financial services.

3.    Delineates the following as financial services:

a)    Establishing bank accounts;

b)    Depository services;

c)    Electronic payment services;

d)    Providing merchant card equipment; and

e)    Payment processing and gateway services

4.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAllows a merchant servicer or payment service provider to provide payment processing and gateway services (Sec. 1).

5.    Defines financial services (Sec. 1).

6.    Defines payment processing and gateway services (Sec. 1).

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10.  Initials TG/JS                    Caucus & COW

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