Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR H.B. 2054
DIFI; financial enterprises; insurance; compact
Purpose
Modifies the license renewal deadline for consumer lenders, debt management companies,
escrow agents, advance fee loan brokers and sales finance companies. Makes various
administrative changes for the Department of Insurance and Financial Institution (DIFI), including
eliminating the state's opt-out of all uniform standards involving long-term care insurance
products.
Background
The Department of Insurance and Financial Institutions (DIFI) licenses and authorizes the
transaction of insurance business by insurers, producers and other enterprises and regulates
state-chartered financial entities, including consumer lenders, debt management companies, escrow
agents, advance fee loan brokers and sales finance companies. The Deputy Director of DIFI (Deputy
Director) has the authority and responsibility for the discharge of all duties of the Financial
Institutions Division (A.R.S. Title 6 and A.R.S. Title 20).
A consumer lender, debt management company and advance fee loan broker licensee or
registrant must submit a license or registration renewal application and pay the associated renewal
fee by June 30 each year. An escrow agent licensee must submit a license renewal application and
pay the associated renewal fee by September 30 of each year. A sales finance company licensee
must submit a license renewal application and pay the associated renewal fee by the license
continuation date prescribed by the initial licensing agency or DIFI. If a consumer lender, debt
management company, advance fee loan broker, escrow agent or sales finance company licensee
or registrant fails to submit a license or registration renewal application and associated renewal fee
within 30 days after the specific renewal deadline, the licensee's license automatically expires
(A.R.S §§ 6-604; 6-707; 6-815; 6-1305; and 44-282).
In 2014, the Legislature adopted the Interstate Insurance Product Regulation Compact
(IIPRC), which includes uniform standards governing asset-based insurance products like annuity,
life, disability income and long-term care insurance products through a multi-state commission.
Compacting states collaboratively develop uniform standards for the administration of asset-based
insurance products to protect consumers equally across the compacting states. When Arizona
adopted the IIPRC in 2014, the state opted-out of all uniform standards involving long-term care
insurance products (A.R.S § 20-3251; IIPRC).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation. FACT SHEET
H.B. 2054
Page 2
Provisions
DIFI Administration
1. Allows, rather than requires, the Director of DIFI to adopt rules necessary to enforce statute
relating to:
a) money transmission;
b) extended warranty insurer deposits with the State Treasurer;
c) domestic, foreign and alien insurers' additional free surplus; and
d) property and casualty insurance reporting requirements.
2. Eliminates the state's opt out of all uniform standards involving long-term care insurance
products.
3. Removes, from the Director of DIFI's annual reporting requirement, the requirement to report
on the total number of private passenger automobile insurance policies written by risk retention
groups.
Consumer Lenders
4. Modifies the consumer lender license year to begin on January 1, rather than July 1, and end
on December 31, rather than June 30.
5. Modifies the deadline, from June 30 of each year to December 30 of each year, by which a
consumer lender licensee must submit a license renewal application to the Deputy Director and
after which an applicant must pay late fees.
6. Prohibits a consumer lender licensee, if the Deputy Director does not receive the licensee's
renewal application by December 31, rather than June 30, from acting as a consumer lender.
7. Specifies that a consumer lender license automatically expires if the Deputy Director does not
receive the license renewal application and associated fee by January 31, rather than July 31.
Debt Management Companies
8. Modifies the expiration date, from June 30 of each year to December 31 of each year, for a
debt management company license.
9. Modifies the deadline, from June 30 of each year to December 31 of each year, by which a
debt management company licensee must submit a license renewal application.
Escrow Agents
10. Modifies the deadline, from September 30 of each year to December 31 of each year, by which
an escrow agent licensee must submit a license renewal application and renewal fee payment
and after which an applicant must pay late fees.
11. Suspends an escrow agent's license if the Deputy Director does not receive the license renewal
application by December 31, rather than September 30. FACT SHEET
H.B. 2054
Page 3
12. Specifies that an escrow agent license expires if the licensee does not submit a license renewal
application and renewal fee payment by January 31, rather than October 31.
Advance Fee Loan Brokers
13. Modifies the deadline, from June 30 of each year to December 31 of each year, by which a
registered advance fee loan broker must apply for registration renewal.
14. Suspends an advance fee loan broker's registration if the Deputy Director does not receive the
registration renewal application by December 31, rather than September 30.
15. Specifies that an advance fee loan broker registration expires if the registrant does not submit
a renewal application and renewal fee payment by January 31, rather than July 31.
Sales Finance Companies
16. Modifies the deadline for a sales finance company license renewal application and renewal fee
payment to December 31 of each year, rather than the license continuation date prescribed by
either the initial licensing department or DIFI.
17. Specifies that current, active sales finance company licensees do not have to renew the license
until December 31, 2025.
Miscellaneous
18. Applies the modified license renewal application deadlines for consumer lenders, escrow
agents, debt management companies, advance fee loan brokers and sales finance companies
retroactive to January 1, 2025.
19. Specifies that holders of current, active consumer lender, debt management company, escrow
agent or advance fee loan broker licenses that are subject to renewal by June 30, 2025, or
September 30, 2025, do not have to renew the license until December 31, 2025.
20. Removes references to the repealed Continuing Education Review Committee.
21. Makes technical and conforming changes.
22. Becomes effective on the general effective date, with retroactive provisions as noted.
House Action
COM 1/21/25 DP 10-0-0-0
3
rd
Read 2/6/25 59-0-1
Prepared by Senate Research
February 26, 2025
MG/AL/ci