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REFERENCE TITLE: consumer credit; military; federal law |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HB 2272 |
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Introduced by Representatives Butler: Andrade, DeGrazia, Lieberman, Powers Hannley, Rodriguez, Stahl Hamilton
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AN ACT
amending section 6‑122, Arizona Revised Statutes; Amending title 6, chapter 1, Arizona Revised Statutes, by adding article 6; amending title 6, chapter 5, article 2, Arizona Revised Statutes, by adding section 6‑640; amending title 6, chapter 14, article 1, Arizona Revised Statutes, by adding section 6-1420; amending title 44, Arizona Revised Statutes, by adding chapter 32; relating to consumer credit.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 6-122, Arizona Revised Statutes, is amended to read:
6-122. Deputy director; authority; duties
A. The superintendent deputy director has the authority and responsibility for the discharge of all duties imposed by law on the division.
B. The superintendent deputy director shall:
1. Examine or cause to be examined each financial institution annually, except financial institution holding companies, banks, savings and loan associations, credit unions and consumer lenders, and more frequently if the superintendent deputy director considers it necessary.
2. Examine or cause to be examined each bank, credit union and savings and loan association at the superintendent's deputy director's discretion but at least once in every twenty‑four month period.
3. Except as provided in paragraph 8 of this subsection, examine or cause to be examined the business and affairs of any enterprise and any consumer lender for the purpose of administering and enforcing this title at the superintendent's deputy director's discretion.
4. Examine or cause to be examined financial institution holding companies as frequently as the superintendent deputy director considers necessary to administer and enforce this title.
5. Notwithstanding paragraph 3 of this subsection, examine or cause to be examined the accounts held in trust by each escrow agent at least once in every two-year period and examine or cause to be examined each escrow agent at least once in every four-year period or more frequently if the superintendent deputy director considers it necessary.
6. Publish a consumer information brochure that includes:
(a) The finance charges permitted allowed by this state.
(b) The types of insurance that may be offered but that are not required by law to be purchased with the granting of a loan.
(c) Interest rate limitations on all lenders including amounts that may not be charged to borrowers.
(d) Consumer rights and means of recourse from unfair practitioners.
7. Make it a priority to encourage the growth of state‑chartered financial institutions in this state and by February 1 of each calendar year notify the governor, the president of the senate and the speaker of the house of representatives if the total number of state‑chartered banks or state‑chartered credit unions decreases during the prior calendar year.
8. Examine or cause to be examined enterprises, consumer lenders and premium finance companies at least once in every five‑year period to ensure compliance with 10 United States Code section 987 and 32 code of federal regulations part 232.
C. Notwithstanding subsection B, paragraph 5 of this section, an escrow agent shall be examined within twelve months when an escrow agent's license is transferred or assigned pursuant to section 6‑813 or when control of the license is otherwise acquired.
Sec. 2. Title 6, chapter 1, Arizona Revised Statutes, is amended by adding article 6, to read:
ARTICLE 6. COMPLIANCE WITH FEDERAL LAW
6-171. Compliance with federal law; military lending; enforcement by attorney general; definitions
C. For the purposes of this section, "Consumer credit" and "Covered member" have the same meanings prescribed in 32 code of Federal Regulations section 232.3.
Sec. 3. Title 6, chapter 5, article 2, Arizona Revised Statutes, is amended by adding section 6-640, to read:
6-640. Compliance with federal law; military lending; enforcement by attorney general; definitions
A. A Licensee that extends consumer credit to a covered member or dependent of the covered member shall comply with 10 United States code section 987 and 32 code of federal regulations part 232.
C. For the purposes of this section, "consumer credit" and "Covered member" have the same meanings prescribed in 32 Code of Federal Regulations section 232.3.
Sec. 4. Title 6, chapter 14, article 1, Arizona Revised Statutes, is amended by adding section 6-1420, to read:
6-1420. Compliance with federal law; military lending; enforcement by attorney general; definitions
A. A premium finance company that extends consumer credit to a covered member or dependent of the covered member shall comply with 10 United States code section 987 and 32 code of federal regulations part 232.
B. In addition to the penalties prescribed in section 6‑132, any violation of this article is an unlawful act or practice pursuant to section 44‑1522. The attorney general may investigate the act or practice and take appropriate action pursuant to title 44, chapter 10, article 7.
C. For the purposes of this section, "Consumer credit" and "Covered member" have the same meanings prescribed in 32 Code of Federal Regulations section 232.3.
Sec. 5. Title 44, Arizona Revised Statutes, is amended by adding chapter 32, to read:
CHAPTER 32
MILITARY LENDING
ARTICLE 1. GENERAL PROVISIONS
44-7501. Military lending; compliance with federal law; enforcement by attorney general; definitions
A. A creditor that extends consumer credit to a covered member or dependent of the covered member shall comply with 10 United States code section 987 and 32 code of federal regulations part 232.
B. Any violation of this article is an unlawful act or practice pursuant to section 44‑1522. The attorney general may investigate the act or practice and take appropriate action pursuant to chapter 10, article 7 of this title.
C. For the purposes of this section, "Consumer credit", "Covered member" and "creditor" have the same meanings prescribed in 32 Code of Federal Regulations section 232.3.