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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
Senate: FIN DPA 8-1-1-0 | 3rd Read 26-4-0-0 |
SB 1463: DIFI; omnibus
Sponsor: Senator Livingston, LD 22
Committee on Government & Elections
Overview
Makes numerous conforming changes and additions to statute relating to the Department of Insurance and Financial Institutions.
History
Laws 2019, Chapter 252 established the Department of Insurance and Financial Institutions (DIFI). This department was the consolidation of the Arizona Automobile Theft Authority (AATA), the Department of Financial Institutions and the Department of Insurance. Effective July 1, 2020, DIFI assumed the responsibilities and duties of the consolidated departments and the AATA.
Laws 2020, Chapter 37 defined deputy director and superintendent as the deputy director of the Financial Institutions Division of DIFI. The deputy director is charged with assisting in the execution of the laws of this state relating to financial institutions and enterprises.
Both the 2019 and 2020 pieces of legislation directed the Legislative Council staff to prepare conforming legislation in the Fifty-fifth Legislature, First Regular Session.
Provisions
1. Transfers the responsibilities and duties of the superintendent of DIFI to the deputy director. (Sec. 1)
2. Modifies statute relating to application fees for financial institutions and enterprises as follows:
a) Removes the $500 fee to apply for money transmitter, collection agency or a deferred presentment company and for approval of the articles of incorporation of a business development corporation;
b) Repeals the fees related to moving an established office of an enterprise, issuing a duplicate or replacing a lost enterprise's license, changing a responsible person on a mortgage broker's commercial mortgage broker's license and changing an active manager on a collection agency license;
c) Exempts a loan originator or appraiser license from the fee for changing a licensee name;
d) Imposes a $300 fee plus $300 for each branch office for a premium finance company; and
e) Institutes a $50 fee for an advance fee loan broker. (Sec. 8)
3. Requires, on application for a license or permit for an enterprise or consumer lender, the applicant to pay the first year's annual assessment listed in statute, prorated according to the number of quarters remaining until the date of the next annual assessment or renewal.
a) Specifies that if the result of the application ends in a denial, DIFI must refund the prorated annual assessment that the applicant paid.
b) States that annual renewal fees are nonrefundable. (Sec. 8)
4. Exempts a consumer lender that paid on application from the collection of the first year's annual assessment or renewal fee for a financial institution. (Sec. 8)
5. Removes the $200 annual assessment and renewal fee for each branch office of a collection agency. (Sec. 8)
6. Imposes a $300 plus $300 for each branch office fee for a premium finance company and $25 for an advance fee loan broker for annual assessments and renewal fees. (Sec. 8)
7. Specifies that the account of receipts and disbursements from the DIFI Revolving Fund is to be distributed on or before the 15th day of February, May, August and November of each year. (Sec. 14)
8. Stipulates that the statutory requirements of consumer lenders do not apply to closed end loans of more than $50,000, rather than $10,000. (Sec. 148)
9. Clarifies that a consumer loan made pursuant to a consumer lender license is not a secondary motor vehicle finance transaction as defined in statute. (Sec. 148)
10. Directs a trust company applicant to, after approval or after addressing the deficiencies, file the approved or revised articles of incorporation with the corporation commission. (Sec. 186)
11. Allows the deputy director to contract for the testing of applicants for a mortgage broker license.
a) Specifies that if the testing is contracted out, the testing fee is payable directly by the applicant to the contractor.
b) Authorizes the deputy director to allow a contractor to charge a reasonable testing fee that is more than the $50 fee prescribed in statute. (Sec. 205)
12. Repeals statute relating to deferred presentment companies that terminated on July 1, 2010. (Sec. 268)
13. Allows each licensee for a premium finance company, prior to December 31 of each year to obtain a renewal of a license. (Sec. 276)
14. Specifies that monies collected from each insurer must be deposited in the state general fund for appropriation to the DIFI fraud unit. (Sec. 293)
15. Mandates that the uniform standards of professional appraisal practice as published by the Appraisal Standards Board are the standards for the appraisal practice in Arizona unless the deputy director objects. (Sec. 310)
16. Stipulates that an individual who is not a state-licensed or state-certified appraiser may provide clerical or administrative assistance in the preparation of an appraisal document. (Sec. 323)
17. Authorizes an individual who is a registered trainee appraiser to be involved in developing and reporting the appraisal if the statutory requirements are met. (Sec. 323)
18. Specifies that statute relating to appraisal management companies does not apply to a federally regulated appraisal management company or a department or unit within a financial institution that receives requests for the performance of real estate appraisals from the financial institution. (Sec. 338)
19. Requires the AATA to make grants awarded from the AATA Fund and the monies in such fund must only be used to pay the administrative expenses of the authority to make grant awards. (Sec. 352)
20. States that all monies appropriated to DIFI for the AATA must be used by DIFI exclusively for the operation of the AATA. (Sec. 352)
21. Asserts that monies appropriated from the AATA Fund that are included in the general appropriations act must be included within the following separate line items:
a) AATA operating lump sum appropriation;
b) Arizona vehicle theft task force; and
c) Local grants. (Sec. 352)
22. Instructs the director of DIFI to appoint an individual to operate the AATA in conjunction with operating the fraud unit established in statute. (Sec. 352)
23. Specifies that subject to generally applicable DIFI standards and procedures, DIFI must provide all administrative support for the AATA. (Sec. 352)
24. Modifies the following definitions:
a) Acquire;
b) Consumer loan; and
c) Control (Sec. 19, 58, 147)
25. Defines federally regulated appraisal management company. (Sec. 336)
26. Makes numerous technical and conforming changes. (Sec. 1-292, 294-309, 311-351, 353-355)
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Contains a retroactivity clause for
statute relating to the AATA of July 1, 2020. (Sec. 356)
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31. SB 1463
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