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Senate Engrossed
undocumented aliens; financial services |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SENATE BILL 1421 |
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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:
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.
Sec. 2. Title 44, chapter 9, article 1, Arizona Revised Statutes, is amended by adding section 44-1209, to read:
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.
Sec. 3. Section 44-1362, Arizona Revised Statutes, is amended to read:
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.
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
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 1693o-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).
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.
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.
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.