ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: FICO DPA/SE 7-0-0-0 | 3^rd Read 26-0-4-0 House: COM DPA 9-0-0-1

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SB 1034: money transmission; notice

Sponsor: Senator Shope, LD 16

House Engrossed

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. Instructs a licensee that engages in the business of receiving money for transmission on behalf of consumers for personal, family or household purposes to provide consumer fraud warnings that include specified information. (Sec. 1)

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

a) in a document provided directly to the consumer in person;

b) displayed prominently in the location in which the licensee or the licensee's authorized delegate engages in receiving money for transmission; 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 requirement to provide consumer fraud warnings does not apply to:

a) an electronic funds transfer where the monies are not transferred directly to another person and are not available for immediate use or that is made with a gift certificate; or

b) a licensee that can demonstrate they provide or require their authorized delegate to provide annual fraud prevention training to employees that covers the indicia of fraud associated with electronic money transfers. (Sec. 1)

c)

d)

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f)                         SB 1034

g) Initials PB     Page 0 House Engrossed

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