Arizona financial service licensees, after the passage of Senate Bill 1394, will be required to have a separate license per business name in the state.
03/25/2022 1:45 P.M.
1.5 minute read
Arizona Gov. Doug Ducey has signed licensing legislation proposed by the Arizona’s Department of Insurance and Financial Institutions (DIFI).
S.B. 1394 amends Arizona Revised Statutes Title 6 and adds ARS Section 6-117. The new 6-117(A) states: ‘UNLESS OTHERWISE REQUIRED BY THIS TITLE OR RULES ADOPTED BY THE DEPARTMENT, AN ENTERPRISE OR A CONSUMER LENDER IS NOT REQUIRED TO OBTAIN A SEPARATE LICENSE WHEN DOING BUSINESS UNDER AN ASSUMED NAME OR A TRADE NAME…” (Emphasis added.)
Arizona Administrative Code R20-7-1519(C) states: “A collection agency shall not use a collection agency license to do business under more than one name. Each collection agency shall apply for and obtain a separate license for each business name it intends to use in Arizona.‘(Emphasis added.)
Therefore, a collection agency would still be required to obtain and hold a separate license for each name that the collection agency is doing business under.”
Senate Bill 1394, signed on March 23, will streamline decades-old licensing requirements for businesses that currently must obtain separate licenses for trade names or assumed names—sometimes referred to as “Doing Business As” or DBAs, according to a news release from DIFI.
Under the new legislation, consumers are still able to look up the licensee under a trade name and file complaints with DIFI against a company’s trade name. Licensees will save time and money by linking additional DBAs to a single license name without having to pay for and maintain multiple licenses. DIFI maintains all regulatory authority including the ability to investigate, examine and take action against the parent business.
ACA International’s licensing team is reviewing the bill to assist companies with any changes to their licenses, including those that have multiple licenses in Arizona.
The bill also will reduce the time DIFI currently spends on administrative functions for licensing DBAs, and frees up staff time to focus on swiftly processing new license applications and day-to-day license maintenance, according to the news release.
“Senate Bill 1394 reduces unnecessary regulation and allows DIFI to better leverage technology to fulfill its supervisory responsibilities,” said DIFI Director Evan Daniels. “This bill is a win for consumers, Arizona’s financial services industry, and DIFI. I appreciate [State Sen. David] Livingston’s sponsorship and Governor Ducey’s support for common sense legislation that benefits all stakeholders while creating more efficient state government.”
The bill will take effect 90 days after Arizona ends its current legislative session.
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