HB 2010
Initials PRB Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: COM DPA 10-0-0-0 | 3
rd
Read 56-0-4-0
Senate: FIN 6-0-1-0 | 3
rd
Read 26-4-0-0
HB 2010: banking; licensing; fees
Sponsor: Representative Livingston, LD 28
Senate Engrossed
Overview
Establishes a late fee for a consumer lender and premium finance company license renewal.
Removes restrictions relating to where a mortgage broker, mortgage banker and commercial
mortgage banker maintains records.
History
A person cannot engage in the business of advertising or soliciting to procure or make a consumer
lender loan without first obtaining a consumer lender license. The term of the license begins on
July 1 and ends on June 30 of each year. A licensee may obtain a license renewal by submitting
the renewal application and paying the renewal fee by June 30 (A.R.S. §§ 6-601, 6-603, 6-604).
A premium finance company is a person engaged in part or in whole in the business of financing
insurance premiums, entering into premium finance agreements with insureds or otherwise
acquiring premium finance agreements from insurance producers or other premium finance
companies. A person is prohibited from engaging in the business of a premium finance company
without first obtaining a license. The term of the license year begins on January 1 and ends on
December 31. In order to renew a license, licensees must submit a renewal application and the
required renewal fee by December 31 (A.R.S. §§ 6-1401, 6-1402, 6-1405).
Statute permits, after notifying the Deputy Director of the Department of Insurance and Financial
Institutions (DIFI), a mortgage broker, mortgage banker or commercial mortgage banker, who
operates two or more licensed places of businesses, to maintain records at their principal place
of business in this state. Additionally, with approval of the deputy director of DIFI, they may
maintain records outside this state (A.R.S. §§ 6-906, 6-946, 6-983).
Provisions
Consumer Lender License
1. Clarifies that a consumer lender license remains active until it either expires or is suspended,
revoked or terminated by the Director of DIFI. (Sec. 2)
2. Requires a consumer lender licensee to apply for and pay the renewal fee by June 30 each
year. (Sec. 2)
3. Includes a late fee of $25 for each day after June 30 that a renewal application is not received
by the Deputy Director of DIFI. (Sec. 2)
4. Prohibits a licensee from acting as a consumer lender until the license is renewed or a new
license is issued. (Sec. 2)
5. Stipulates the license automatically expires if the Deputy Director of DIFI does not receive the
renewal application and fee by July 31. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2010
Initials PRB Page 2 Senate Engrossed
6. Prevents an expired license from being renewed and allows for the issuance of a new license.
(Sec. 2)
Premium Finance Company License
7. Clarifies that a premium finance company license or permit remains active until it either
expires or is suspended, revoked or terminated by the Director of DIFI. (Sec. 10)
8. Requires a premium finance company licensee or permit holder to apply for and pay the
renewal fee by December 31 each year. (Sec. 10)
9. Includes a late fee of $25 for each day after December 31 that a renewal application is not
received by the Deputy Director of DIFI. (Sec. 10)
10. Prohibits a licensee or permit holder from acting as a premium finance company or branch
office until the license or permit is renewed or a new license or permit is issued. (Sec. 10)
11. Stipulates the license or permit automatically expires if the Deputy Director of DIFI does not
receive the renewal application and fee by January 31. (Sec. 10)
12. Prevents an expired license or permit from being renewed and allows for the issuance of a
new license or permit. (Sec. 10)
Miscellaneous
13. Allows the Deputy Director of DIFI to use the nationwide mortgage licensing system and
registry for all aspects of licensure relating to financial institutions, collection agencies and
sales finance companies. (Sec. 1)
14. Extends the deadline for applying for a debt management company license renewal, and
obtaining a license renewal without an investigation, from June 15 to June 30 of each year.
(Sec. 3, 4)
15. Removes language relating to restrictions as to where a mortgage broker, mortgage banker
and commercial mortgage banker may maintain records. (Sec. 5, 7, 8)
16. Increases the cap on the number of tests, from two to four, an applicant for a mortgage broker
license may take within a 12-month period. (Sec. 6)
17. Removes the approval requirement for a licensee that uses a computer or mechanical record
keeping system to not keep a written copy of records. (Sec. 7)
18. Removes the requirement for a mortgage broker, banker, consumer lender or registered
exempt person to request a loan originator's license. (Sec. 9)
19. Eliminates the requirement for DIFI to send the loan originator's license to the loan originator's
employer. (Sec. 9)
20. Changes the deadline for collection agencies renewal applications from January 1 to
December 31. (Sec. 11)
21. Modifies the real estate appraiser license or certificate renewal period by removing the 30
days after the expiration date grace period. (Sec. 12)
22. Removes the $5 fee for a duplicate registration certificate for property tax agents. (Sec. 13)
23. Makes technical changes. (Sec. 1, 3, 5, 6, 8, 9, 10)
Senate Amendments
1. Removes the requirement for DIFI to prepare an annual report on the medical loss ratio for
each Arizona dental insurer. HB 2010
Initials PRB Page 3 Senate Engrossed
2. Requires, beginning July 1, 2024, an Arizona dental insurer to annually file a dental loss ratio
report for the preceding calendar year with DIFI by July 1.
3. Prescribes information which must be included in the dental loss ratio report.
4. Instructs DIFI to post the reported dental loss ratios for each dental insurer on its website by
August 1 of each year.
5. Prohibits DIFI from posting the underlying claims, premiums and other data used to calculate
the dental loss ratios.
6. Includes definitions of pertinent terms.