ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

House: COM DPA 10-0-0-0

HB 2066: banks; financial institutions; personal information

Sponsor: Representative Carter, LD 15

House Engrossed

Overview

Requires banks and financial institutions to destroy a former customer's personal information.

History

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAll banks must keep their corporate and business records in accordance with the Deputy Director of the Department of Insurance and Financial Institutions' (DIFI) regulations. These regulations include: 1) the classification of records; 2) the establishment of allowable methods for effective and economical conservation of information contained in such records if the originals were destroyed in accordance with regulation; and 3) the prescribing of the minimal period of time for preservation of each record or a permitted substitute (A.R.S. § 6-242).

DIFI rules provide a retention schedule for certain bank records. Further, a bank may comply with a preemptive federal regulation, even if the regulation requires a shorter retention period (A.A.C. R20-4-214).

In accordance with the Bank Secrecy Act, banks are required to maintain various types of records for at least five years.  Records relating to the identity of a bank customer must be maintained for five years after the account is closed.

Provisions

1.   Directs banks and financial institutions to destroy all personal information that belonged to a former customer or client within 10 years of ending the business relationship, unless an applicable law requires a retention period that exceeds 10 years. (Sec. 1)

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5.                     HB 2066

6.   Initials PRB           Page 0 House Engrossed

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