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SB1421 - 572R - S Ver
Senate Engrossed
undocumented aliens;
financial services
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1421
AN
ACT
amending title 6, chapter 1, article 2,
Arizona Revised Statutes, by adding section 6-118; amending title 44, chapter
9, article 1, Arizona Revised Statutes, by adding section 44-1209; amending
section 44-1362, Arizona Revised Statutes; amending Title 44, Arizona
Revised Statutes, by adding chapter 42; relating to financial services.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Title 6, chapter 1, article 2,
Arizona Revised Statutes, is amended by adding section 6-118, to read:
START_STATUTE
6-118.
Prohibited forms of identification
A financial institution doing business in this
state may not accept any of the following as a form of identification for the
purposes of opening a deposit account, loan account or safe deposit box or
receiving any other services from that financial institution:
1. A license or identification card
issued exclusively to an unauthorized alien or undocumented immigrant.
2. A license or identification card
that is substantially the same as a license or identification card issued to a
United States citizen or resident or an individual who is lawfully present in
the United States but that has markings indicating that the license or
identification card holder did not present proof of the holder's lawful
presence in the United States.
END_STATUTE
Sec. 2. Title 44, chapter 9, article 1, Arizona
Revised Statutes, is amended by adding section 44-1209, to read:
START_STATUTE
44-1209.
Loans; forms of identification
It is unlawful for a loan to be made to an
individual in this state if the application for the loan allows the use of an
individual taxpayer identification number issued by the internal revenue
service as a method of identifying the loan recipient.� After execution of an
otherwise lawful and binding loan agreement, a lender may lawfully request the
borrower's individual taxpayer identification number if the borrower is not
eligible to receive a social security number under federal law.
END_STATUTE
Sec. 3. Section 44-1362, Arizona Revised
Statutes, is amended to read:
START_STATUTE
44-1362.
Check cashing; receipts; notices; government payment instruments;
enforcement
A. A check casher may charge a fee for cashing a
payment instrument, and the check casher shall give a receipt to the customer
for each transaction.
B. A check casher shall display in a conspicuous
location in the check casher's principal place of business and each branch
office a complete and legible notice that is in English and Spanish and that
includes both of the following:
1. A schedule of all fees for both of the following:
(a) Cashing each type of payment instrument.
(b) Issuing an identification card.
2. A list of any identification that is acceptable
in lieu of the identification card provided by the check casher.
C. A check casher shall not charge a fee that is
more than three
per cent
percent
of
the face amount of the payment instrument or
five dollars
$5
, whichever is more, for cashing any payment instrument
issued by an agency of the United States or of this state or any political
subdivision of the United States or of this state.
D. A check casher
who is
operating
within the office of a labor pool, or the owner or operator of a labor pool,
shall not charge a day laborer for cashing a check that is issued by the labor
pool.
E. A check casher may not accept the
following as a form of identification:
1. A license or identification card
issued exclusively to an unauthorized alien or undocumented immigrant.
2. A license or identification card
that is substantially the same as a license or identification card issued to a
United States citizen or resident or an individual who is lawfully present in
the United States but that has markings indicating that the license or
identification card holder did not present proof of the holder's lawful
presence in the United States.
E.
F.
Any
act or practice in violation of this article is an unlawful act or practice
under section 44-1522.� The attorney general may investigate and take
appropriate action as prescribed in chapter 10, article 7 of this title.
END_STATUTE
Sec. 4. Title 44, Arizona Revised Statutes, is
amended by adding chapter 42, to read:
CHAPTER
42
FOREIGN
REMITTANCES OF MONIES
ARTICLE
1. GENERAL PROVISIONS
START_STATUTE
44-8041.
Definitions
In this chapter, unless the context otherwise
requires:
1. "Department" means the
DEPARTMENT of insurance and financial institutions.
2. "Foreign remittance
transfer" means a remittance transfer as defined in the electronic fund
transfer act (P.L. 90-321; 92 Stat. 3728; 15 United States code section 1693
o
-1) to a recipient that is located in a country other than the
United States.
3. "unauthorized alien"
means a person who is unlawfully present in the United States as prescribed in
the immigration and nationality act (66 Stat. 163; 8 United States code section
1101).
END_STATUTE
START_STATUTE
44-8042.
Foreign remittance transfers; prohibition; rules
A. A business entity that is
authorized to conduct foreign remittance transfers from within this state to
any country outside of the united states on behalf of an individual:
1. May not transfer the monies unless
the individual provides documentary proof that the individual is not an
unauthorized alien.
2. Each month shall provide to the
DEPARTMENT confirmation of the individuals who provided the documentary proof
required by paragraph 1 of this subsection.
B. The DEPARTMENT shall adopt rules
to administer this section, including which forms of documentation are
acceptable to verify an individual is not an unauthorized alien.
END_STATUTE
START_STATUTE
44-8043.
Enforcement; compliance audits
A. The DEPARTMENT may at any time
request a business entity to provide records of documentation that were used to
verify that the individual who requested the foreign remittance transfer was
not an unauthorized alien.
B. Any person who in good faith
believes that a business entity is violating this chapter may file a complaint
with the department.� On receipt of a valid complaint that is substantiated by
evidence, the DEPARTMENT shall notify the BUSINESS entity of the complaint and
the substantiated evidence, and the business entity shall pay the civil penalty
pursuant to section 44-8044.
C. Beginning July 1, 2027, the
DEPARTMENT shall conduct quarterly audits of BUSINESS entities at random to
ensure compliance with this chapter.
END_STATUTE
START_STATUTE
44-8044.
Violation; civil penalty
The department shall impose a civil penalty in
an amount equal to twenty-five percent of the dollar amount of the
foreign remittance transfer, excluding any fees or charges imposed by the
business entity, against A business entity that violates this chapter.
END_STATUTE