 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
DIFI; continuation
Purpose
Continues the Department of Insurance and Financial Institutions (DIFI) for eight years.
Background
Established in 2020 by consolidating the Department of Financial Institutions and the Automobile Theft Authority into the Department of Insurance, DIFI is responsible for regulating the insurance industry, financial institutions, financial service professionals and business entities. DIFI registers and certifies state-chartered banks and credit unions and licenses financial and insurance professionals, including collection agencies, mortgage brokers, loan originators, premium finance companies and sales finance companies. DIFI conducts examinations on licensees and businesses and investigates fraud, deceptive practices, unprofessional conduct, claim delays and unfair claim settlement practices (A.R.S. Title 6).
The Automobile Theft Authority is established within DIFI and is responsible for distributing Automobile Theft Authority Fund monies to public agencies to establish, maintain and support programs that are designed to prevent automobile theft (A.R.S. § 41-3451).
The Senate Finance Committee of Reference (COR) held a public meeting on Monday, January 27, 2025, to review the Auditor General's Performance Audit and Sunset Review Report, consider DIFI's responses to the statutorily outlined sunset factors and receive public testimony. The COR recommended that DIFI be continued with revisions (COR Report). DIFI terminates on July 1, 2025, unless continued by the Legislature (A.R.S § 41-3025.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Continues, retroactive to July 1, 2025, DIFI until July 1, 2033.
2. Repeals, subject to voter approval, DIFI on January 1, 2034.
3. Contains a purpose statement.
4. Becomes effective on the general effective date, with a retroactive provision as noted.
House Action
COM 2/11/25 DP 10-0-0-0
3rd Read 2/20/25 47-11-2
Prepared by Senate Research
March 13, 2025
MG/AL/ci