ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

Senate: FICO DPA/SE 7-0-0-0 | 3rd Read 26-0-4-0

House: COM DPA 9-0-0-1

SB 1034: money transmission; notice

Sponsor: Senator Shope, LD 16

Caucus & COW

Overview

Directs money transmitters to display specified fraud warnings to consumers.

History

The Department of Insurance and Financial Institutions (DIFI) regulates money transmitter services. Individuals who engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission must obtain a money transmitter license (A.R.S. § 6-1207).

Money transmission means any of the following: 1) selling or issuing payment instruments to a person located in this state; 2) selling or issuing stored value to a person located in this state; and 3) receiving money for transmission from a person located in this state. Money transmission does not include providing solely online telecommunications services or network access (A.R.S. § 6-1201).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteInstructs a person that is in the business of money transmission to clearly and prominently display consumer fraud warnings that includes specified information as outlined. (Sec. 1)

2.   Requires, prior to the transmission of monies, the consumer fraud warnings to be:

a)   communicated directly to the consumer in person;

b)   displayed prominently in the place of business; or

c) through electronic transmission. (Sec. 1)

3.   Requires the written warnings to be in a type that contrasts with the background against which the written warning appears. (Sec. 1)

4.   Specifies the fraud warning requirements do not apply to an electronic funds transfer:

a)   where the monies are not transferred directly to another person and are not available for immediate use; or

b)   that is made with a gift certificate. (Sec. 1)

Amendments

Committee on Commerce

1.   Restates a licensee, rather than a person, that engages in money transmission on behalf of consumers for personal, family or household purposes must provide, rather than clearly and prominently display, consumer fraud warnings.

2.   Clarifies the consumer fraud warnings may be provided to the consumer in the location in which the licensee or an authorized delegate of the licensee engages in receiving money for transmission rather than in the place of business.

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6.                     SB 1034

7.   Initials PB           Page 0 Caucus & COW

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