SB 1034
Initials PB Page 1 Caucus & COW
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
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. Instructs 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.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1034
Initials PB Page 2 Caucus & COW
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.