Arizona Senate bill by Sen. Livingston updates licensing and regulation for financial and insurance sectors

Passed bill authored by State Sen. David Livingston seeks to amend Arizona statutes governing the Department of Insurance and Financial Institutions. Livingston’s legislation aims to establish consistent licensing and renewal processes, impose late fees for delayed renewals, and update regulatory standards for various financial and insurance-related businesses. The bill also intends to enhance regulatory efficiency and consumer protection through provisions for an interstate compact, according to the Arizona State House.

It passed both chambers as of June 19, clearing the House by a vote of 39-16 and the Senate by a vote of 29-0.

The bill, introduced as HB2054 on Jan. 8, ahead of the official start of the 57th Legislature’s first regular session on Jan. 13, was formally listed with the short title: ‘DIFI; financial enterprises; insurance; compact’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends several sections of the Arizona Revised Statutes related to the Department of Insurance and Financial Institutions. It establishes licensing and renewal processes for various financial enterprises, imposing a December 31 license expiration date. For late submissions beyond December 31, a $25 daily late fee will apply, with licenses expiring automatically if not renewed by January 31. Additionally, it amends licensing and regulatory requirements for sales finance companies, debt management firms, escrow agents, and insurance providers. The bill also introduces provisions for an interstate compact to enhance regulatory efficiency and consumer protection concerning insurance products. These changes are set to take effect retroactively starting January 1, 2025.

In the House, 24 Democrats and 15 Republicans voted in favor while 16 Republicans opposed it.

Meanwhile, in the Senate, 13 Democrats and 16 Republicans voted in favor, with no opposing votes.

Livingston introduced the bill in the Arizona House on Jan. 8 ahead of the official start of the 57th Legislature’s first regular session on Jan. 13.

Livingston graduated from Arizona State University in 1988 with a BS.

Livingston, a Republican, was elected to the Arizona State House in 2023 to represent the state’s 28th House District, replacing previous state representative Kelli Butler.

The bill was signed into law by Gov. Katie Hobbs on June 25.

In Arizona, the legislative process begins when a bill is introduced in either the House of Representatives or the Senate. It is then assigned to one or more committees for discussion and possible amendment. If approved by committee, the bill proceeds to floor debate and voting in both chambers. If both chambers pass the bill, it is sent to the governor, who may sign it into law, veto it, or allow it to become law without a signature. The Arizona Legislature convenes annually in regular session starting the second Monday in January. Lawmakers introduce hundreds of bills each session, though only a portion make it into law. You can learn more about the legislative process on the Arizona State Legislature website.