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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
state treasurer; financial services
Purpose
Requires the State Treasurer to contract for all other financial services, rather than banking services, required by any state agency and defines financial services.
Background
The State Treasurer must contract for banking services required by any state agency. A state agency may not contract for banking services without the written permission of the State Treasurer (A.R.S § 35-315).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the State Treasurer to contract for all other financial services, rather than all other banking services, required by any state agency.
2. Prohibits a state agency from contracting for financial services, rather than banking services, except with State Treasurer permission.
3. Allows a merchant servicer or payment service provider to provide payment processing and gateway services.
4. Defines financial services as banking and merchant services provided by a bank, credit union, financial institution, financial services company or financial technology company and includes:
a) establishing bank accounts;
b) depository services;
c) electronic payment services;
d) providing merchant card equipment; and
e) payment processing and gateway services.
5. Defines payment processing and gateway services as a payment gateway that facilitates a payment transaction by transferring information between a payment portal, including a website, mobile phone or interactive voice response service, and the front-end processor or acquiring bank.
6. Becomes effective on the general effective date.
House Action
APPROP 02/05/20 DP 10-0-0-1
3rd Read 02/19/20 60-0-0
Prepared by Senate Research
March 11, 2020
MG/AJS/gs