ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
FINANCE AND COMMERCE
DATE: February 8, 2024
SUBJECT: Strike everything amendment to S.B. 1034, relating to money transmission; notice
Purpose
Requires a person who engages in the business of money transmission to display consumer
fraud warnings as outlined and establishes civil penalties.
Background
The Department of Insurance and Financial Institutes (DIFI) governs management of
money transmission licensure and regulations. Money transmission is the act of: 1) selling or
issuing payment instruments to a person located in Arizona; 2) selling or issuing stored value to a
person located in Arizona; or 3) receiving money for transmission from a person located in
Arizona. Money transmission does not include the act of providing solely online telecommunications
services or network access (A.R.S. § 6-1201).
The Attorney General (AG) enforces the Consumer Fraud Act (Act) by investigating
consumer complaints, filing enforcement actions against persons who have violated the Act and
providing consumer fraud education programs intended to rectify violations or alleged violations
of the Act. In an enforcement action, the AG may obtain from a person found in violation of the
Act civil penalties, restitution payments and court orders to prevent the person from continuing
the fraud (A.R.S. §§ 44-1524; 44-1527; 44-1530 and 44-1531.02).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a person who engages in the business of money transmission to clearly and
prominently display consumer fraud warnings that include:
a) the risks of consumer fraud and how to find additional information about consumer fraud
regarding money transmission;
b) information about the dangers of transmitting money to unknown persons or to persons
whom the sender cannot verify;
c) information about how to stop a money transmission, if an option is available; and
d) information that warns the sender that monies may not be returned once the money
transmission is complete.
2. Requires the consumer fraud warnings to be:
a) communicated directly to the consumer in person;
b) displayed prominently in the place of business using a font size that is large enough to read
in a type that contrasts with the background; or
c) displayed prominently in any electronic notice using a font that is large enough to read in
a type that contrasts with the background.
ALANNA BENDEL
ASSISTANT RESEARCH ANALYST
MOLLY GRAVER
LEGISLATIVE RESEARCH ANALYST
FINANCE AND COMMERCE COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1034
Page 3
3. Specifies that the consumer fraud warning requirements do not apply to:
a) an electronic funds transfer where monies are not transferred directly to another person
and are not available for immediate use; or
b) an electronic funds transfer that is made with a gift certificate.
4. Imposes a civil penalty of up to $250 for each violation of the prescribed consumer fraud
warning requirements.
5. Becomes effective on the general effective date.