SB 1202 — banking; fees; licensing

(c) For a member whose membership in ASRS commenced on or after July 1, 2011, the monthly average of compensation on which contributions were remitted during a period of sixty consecutive months during which a member receives the highest compensation within the last one hundred twenty months of credited service.

Any month for which no contributions are reported to ASRS or that falls within a period of nonpaid or partially paid leave of absence or sabbatical leave shall be excluded from the computation.

The sixty consecutive months may entirely precede, may be both before and after or may be completely after any excluded months.

If the member was employed for less than sixty consecutive months, the average monthly compensation shall be based on the total consecutive months worked.

"Board"Hold meansmembership in, pay dues to and attend the ASRSconvention boardof establishedthe innational sectionand 38-713.regional organizations of state officials occupying like offices or performing similar functions.

"Compensation"Cooperate means:with other regulatory agencies and professional associations to promote the efficient, safe and sound operation and regulation of interstate banking and branching activities, including the - 1 - S.B.

(a)1202 Forformulation membersof whoseinterstate membershipexamination beganpolicies onand orprocedures beforeand December 31, 2019, the grossdrafting amount paid to a member by an employer as salary or wages, including amounts that are subject to deferred compensation or tax shelter agreements, for services rendered to or for an employer, or that would have been paid to the member except for the member's election or a legal requirement that all or part of themodel grossrules amountand beagreements. used for other purposes, but does not include amounts paid in excess of compensation limits established in section 38-746.

Compensation includes amounts paid as salary or wages to a member by a second employer if the member meets the requirements prescribed in paragraph 23, subdivision (b) of this section with that second employer.

Compensation, as provided in paragraph 5, subdivision (b) or (c) of this section, does not include:

(i) Lump sum payments, on termination of employment, for accumulated vacation or annual leave, sick leave, compensatory time or any other form of termination pay whether the payments are made in one payment or by installments over a period of time.

-3- House Amendments to S.B.

1202 (ii) Damages, costs, attorney fees, interest or other penalties paid pursuant to a court order or a compromise settlement or agreement to satisfy a grievance or claim even though the amount of the payment is based in whole or in part on previous salary or wage levels, except that, if the court order or compromise settlement or agreement directs salary or wages to be paid for a specific period of time, the payment is compensation for that specific period of time.

If the amount directed to be paid is less than the actual salary or wages that would have been paid for the period if service had been performed, the contributions for the period shall be based on the amount of compensation that would have been paid if the service had been performed.

(iii) Payment, at the member's option, in lieu of fringe benefits that are normally paid for or provided by the employer.

(iv) Merit awards pursuant to section 38-613 and performance bonuses paid to assistant attorneys general pursuant to section 41-192.

(v) Amounts that are paid as salary or wages to a member for which employer contributions have not been paid.

(b) For a member whose membership began on or after January 1, 2020, only gross wages paid to a member by the employer for services rendered to the employer during the period considered as credited service, including amounts reported as wages and tips and other compensation on the member's federal form W-2 wage and tax statement, including pretax deductions, except for the following:

(i) Payments made for accrued leave that is not being used to replace regular work hours, whether paid in a lump sum or in installments.

(ii) Payments made on termination from employment, whether paid in a lump sum or in installments or as a bonus or an incentive for termination or retirement.

(iii) Employer-paid contributions that are made to, and any distributions from, plans, programs or arrangements qualified under section 117, 125, 129, 401, 403, 408 or 457 of the internal revenue code.

(iv) Payments for allowances.

-4- House Amendments to S.B.

1202 (v) Reimbursements for employee business expenses or employee personal expenses.

(vi) Employer-paid contributions for coverage under, or distributions from, an accident, health or life insurance plan, program or arrangement.

(vii) Payments made in lieu of any employer-paid insurance coverage.

(viii) Workers' compensation, unemployment compensation payments and disability payments.

(ix) Merit awards pursuant to section 38-613.

(x) Payments paid pursuant to a court order or settlement agreement to satisfy a claim even though the amount of the payment is based on previous salary or wage levels, except if the court order or settlement agreement directs salary or wages to be paid for a specific period of time, the payment is compensation for that specific period of time.

(xi) Payments made in the form of goods or services in lieu of gross wages.

(xii) Any other payment that is not reported as wages and tips and other compensation on the member's federal W-2 wage and tax statement for actual services rendered.

(xiii) Payments in excess of the section 401(a)(17) of the internal revenue code limits established in section 38-746.

(xiv) Payments for any other employment benefit.

(xv) Payments for which employer or employee contributions have not been paid.

"ContingentParticipate annuitant"in means the personnationwide namedmortgage bylicensing asystem memberand toregistry receiveestablished retirementby incomethe payablesecure followingand afair member'senforcement deathfor aftermortgage retirementlicensing asact providedof in2008 section(P.L. 38-760.

110-289;

122 Stat.

2810;

12 United States Code sections 5101 through 5116), or its successor, AND USE THE SYSTEM FOR ALL ASPECTS OF LICENSURE PURSUANT TO THIS TITLE, TITLE 32, CHAPTER 9 AND TITLE 44, CHAPTER 2.1.

The deputy director may allow the system to collect licensing fees on behalf of the deputy director, to collect a processing fee for the services of the system directly from each applicant for a license or licensee and to process and maintain records on behalf of the deputy director, including information collected pursuant to this section and section 6-123.01.

This paragraph does not affect the records disclosure requirements and limitations prescribed in section 6-129.01.

Sec.

2.

Section 6-604, Arizona Revised Statutes, is amended to read:

6-604.

Issuance of license;

license year;

renewal;

expiration;

requirements A.

If the deputy director finds no grounds for denial of a license, within one hundred twenty days after receiving a complete application, the deputy director shall grant the application and issue a license to the applicant.

B.

The license year for a licensee begins on July 1 and ends on June 30 of each year.

A LICENSE THAT IS ISSUED PURSUANT TO THIS CHAPTER REMAINS ACTIVE UNTIL THE LICENSE EXPIRES OR THE DIRECTOR SUSPENDS, REVOKES OR TERMINATES THE LICENSE.

C.

All licenses issued remain in full force until surrendered, revoked or suspended.

C.

A LICENSEE SHALL APPLY FOR RENEWAL AS PRESCRIBED BY THE DEPUTY DIRECTOR AND PAY THE RENEWAL FEE PRESCRIBED IN SECTION 6-126 NOT LATER THAN JUNE 30 OF EACH YEAR.

FOR EACH DAY AFTER JUNE 30 THAT THE RENEWAL APPLICATION IS NOT RECEIVED BY THE DEPUTY DIRECTOR, THE APPLICANT SHALL PAY A $25 LATE FEE IN ADDITION TO THE FEE PRESCRIBED IN SECTION 6-126.

IF THE DEPUTY DIRECTOR DOES NOT RECEIVE THE LICENSEE'S RENEWAL APPLICATION AND FEE ON OR BEFORE JUNE 30, THE LICENSEE MAY NOT ACT AS A CONSUMER LENDER UNTIL THE LICENSE IS RENEWED OR A NEW LICENSE IS ISSUED PURSUANT TO THIS ARTICLE.

IF THE DEPUTY DIRECTOR DOES NOT RECEIVE THE LICENSEE'S RENEWAL APPLICATION AND FEE ON OR BEFORE JULY 31, THE LICENSE AUTOMATICALLY EXPIRES.

THE HOLDER OF AN EXPIRED LICENSE MAY NOT BE ISSUED A RENEWAL LICENSE BUT MAY BE ISSUED A NEW LICENSE AS PROVIDED IN THIS ARTICLE.

D.

A license remains the property of this state.

On termination at the request of the licensee or revocation by the deputy director, the licensee shall immediately deliver the license to the deputy director.

- 2 - S.B.

1202 Termination of the license does not affect any other liability of the licensee.

E.

The licensee shall designate the principal location of the licensed office within or outside this state.

If a licensee wishes to maintain more than one office location the licensee shall first obtain a branch office license for each branch office from the deputy director.

The licensee shall submit an application in the form prescribed by the deputy director and pay the fee prescribed in section 6-126 for each branch office license.

If the deputy director determines that the applicant is qualified, the deputy director shall issue a branch office license indicating the address of the branch office.

F.

A licensee shall prominently display the consumer lender license in the office of the consumer lender and any branch office license in that branch office.

Sec.

3.

Section 6-706, Arizona Revised Statutes, is amended to read:

6-706.

Fees A.

An applicant, at the time of filing an application for a license under the terms of this article, shall pay to the deputy director the fee prescribed in section 6-126.

The fee for an agency license is the same as that THE FEE prescribed for a branch.

B.

Prior to June 15 ON OR BEFORE JUNE 30 of each year, each licensee may obtain a renewal of each license without investigation by payment of the fee prescribed in section 6-126.

The fee for renewal of an agency license is the same as that THE FEE prescribed for a branch.

Sec.

4.

Section 6-707, Arizona Revised Statutes, is amended to read:

6-707.

Issuance of license;

display;

renewal A.

On the filing of the application and the payment of the fees and the approval of the bond, or bonds, the deputy director shall investigate the facts, and if the deputy director finds that the financial responsibility and experience of the applicant are such as to command the confidence of the community to warrant belief that the business will be operated fairly and honestly and within the purposes of this article, the deputy director shall issue the applicant a license to do business as a debt management company.

B.

The license shall be kept conspicuously posted in the business office of the licensee.

The license is not transferable or assignable.

C.

Licenses expire on June 30 following the date of the issuance unless sooner surrendered, revoked or suspended but may be renewed by filing an application with the deputy director on or before June 15 30 each year.

The application for renewal shall be in the form prescribed by the deputy director and shall be accompanied by the fee prescribed in section 6-126.

A separate application shall be made for each initial license of a principal place of business, agency or branch office.

- 3 - S.B.

1202 Sec.

5.

Section 6-906, Arizona Revised Statutes, is amended to read:

6-906.

Required accounting practices and records;

escrow of monies;

disclosure A.

Every mortgage broker shall keep and maintain at all times correct and complete records as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is conducting the licensee's business in accordance with this article.

If the mortgage broker operates two or more licensed places of business in this state, after notifying the deputy director, the mortgage broker may maintain such records at the mortgage broker's principal place of business in this state, except that a mortgage broker, with the approval of the deputy director, may maintain the records outside of this state.

For records kept outside this state, A mortgage broker shall make the records available to the deputy director in this state not more than three business days after demand and provide for the acceptance of collect calls or provide a toll free TOLL-FREE telephone number to borrowers to obtain information from the records if the licensed place of business in this state cannot readily provide the information requested by the borrowers.

Every mortgage broker shall maintain original documents or clearly legible copies of all mortgage loan transactions for not fewer LESS than five years after the date of the mortgage loan closing.

B.

Every mortgage broker shall observe generally accepted accounting principles and practices.

C.

A mortgage broker shall immediately deposit all monies received by the mortgage broker in an escrow account with an escrow agent licensed pursuant to chapter 7 of this title.

Withdrawals shall only be disbursed according to the terms of the escrow instructions.

The escrow agent shall not be the mortgage broker.

A mortgage broker, however, may accept an appraisal fee, which the mortgage broker shall only use to obtain an appraisal, a credit investigation fee and a fee in connection with an application for a mortgage loan.

The mortgage broker shall not commingle the appraisal fee or credit investigation fee with other monies of the mortgage broker.

A mortgage broker shall not accept any monies or documents in connection with an application for a mortgage loan in an amount of $200,000 or less, except as provided in this section and pursuant to a written agreement.

The parties shall sign the written agreement and the agreement shall contain terms pertaining to the disposition of the monies and documents, whether the loan is finally consummated or not, the term for which the agreement is to remain in force before return of the monies and documents for nonperformance can be required and an itemized list of all estimated costs to the borrower of obtaining the mortgage loan, including all costs charged by third parties.

The licensee shall preserve all agreements between the parties involved in the transaction and all contracts, agreements and escrow - 4 - S.B.

1202 instructions to or with the depository.

All documents provided by the borrower or at the expense of the borrower to the mortgage broker, including any appraisals, are the property of the borrower and shall, at the borrower's request, SHALL be returned to the borrower or transferred to any person designated by the borrower without further expense to the borrower if the loan is not consummated, provided that any such document is not prohibited by law from being transferred or returned.

D.

Before a mortgage loan closing on residential real property designed principally for the occupancy of from one to four families, a licensee shall fully comply, to the extent applicable, with the real estate lending disclosure requirements of title I of the consumer credit protection act (15 United States Code sections 1601 through 1666j), the real estate settlement procedures act (12 United States Code sections 2601 through 2617) and the regulations promulgated under those acts.

Sec.

6.

Section 6-908, Arizona Revised Statutes, is amended to read:

6-908.

Testing committee;

testing of applicants;

approval by deputy director;

definition A.

The deputy director shall establish a testing committee to create, periodically update and establish standards for passing a test for mortgage brokers.

The committee shall consist of five members appointed by the deputy director once every two years.

Four of the members shall be licensees appointed from nominations submitted by licensees and one of the members shall be an employee of the department.

Licensees who serve as members of the committee shall serve without expense to this state.

The test is subject to the approval of the deputy director.

B.

Each applicant for an original license, before issuance of the license, shall personally take and pass the written test given under the supervision of the department.

The test must reasonably examine the applicant's knowledge of:

1.

The obligations between principal and agent, the applicable canons of business ethics, the provisions of this article and the rules adopted under this article.

2.

The arithmetical computations common to mortgage brokerage.

3.

The principles of real estate lending.

4.

The general purposes and legal effect of mortgages, deeds of trust and security agreements.

C.

The department shall administer the test to applicants for licenses not less than once every six months.

The deputy director may contract for the testing of applicants.

The department or the department's contractor shall reasonably prescribe the time, place and conduct of testing and collect a fee for administration of the test to be assessed to all persons taking the test.

The fee is $50 per testing.

If the deputy director contracts for the testing of applicants, the testing fee OWED pursuant to this section is payable directly by the applicant - 5 - S.B.

1202 DIRECTLY to the contractor.

The deputy director may allow a contractor to charge a reasonable testing fee that is more than the fee prescribed in this subsection.

An applicant may not take the test more than two FOUR times within a twelve-month period.

D.

All tests shall be given, conducted and graded in a fair and impartial manner and without unfair discrimination between individuals tested.

The committee shall inform the applicant of the result of the test within thirty days.

E.

For testing purposes, the department shall prepare a handbook for mortgage brokers and distribute it to all applicants for a fee of not to exceed the actual cost of producing and distributing the handbook.

F.

For the purposes of this section "applicant" means a person who has submitted a completed application in the form prescribed by law, accompanied by a letter of inquiry to a surety company authorized to do business in this state regarding the procurement of a bond pursuant to section 6-903, to be issued on completion of all requirements for the granting of a license.

Sec.

7.

Section 6-946, Arizona Revised Statutes, is amended to read:

6-946.

Required accounting practices and records;

refundable deposits;

periodic impoundment payments;

disclosure A.

Every mortgage banker shall keep and maintain at all times correct and complete records clearly reflecting the financial condition of the business as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is conducting the licensee's business in accordance with this article.

If the mortgage banker operates two or more licensed places of business in this state, after notifying the deputy director, the mortgage banker may maintain the records at the mortgage banker's principal place of business in this state, except that a mortgage banker, with the approval of the deputy director, may maintain the records outside of this state.

A mortgage banker shall, for records kept outside of this state, make the records available to the deputy director in this state not more than three business days after demand and provide for the acceptance of collect calls or provide a toll free TOLL-FREE telephone number to borrowers to obtain information from the records if the licensed places of business in this state cannot readily provide the information requested by the borrowers.

Every mortgage banker shall maintain original documents, or clearly legible copies, of all mortgage banking loan transactions and mortgage loan transactions, unless the mortgage banking loan or mortgage loan is paid in full or the mortgage banking loan or mortgage loan and its servicing are sold, for not fewer LESS than two years after the date of the mortgage banking loan closing or the date of the last disbursement of monies by the licensee, whichever occurs last.

With the approval of the deputy director, A licensee that uses a computer or mechanical record - 6 - S.B.

1202 keeping RECORDKEEPING system is not required to keep a written copy of the records if the licensee is able to generate all information required by this section in a timely manner for examination or for other purposes.

B.

Every mortgage banker shall observe generally accepted accounting principles and practices.

C.

If a mortgage banker requires an advance or fee to be paid in connection with an application for a mortgage banking loan or mortgage loan, there shall be a written agreement.

The parties shall sign the written agreement, and the agreement shall contain terms pertaining to the payment of the fee or disposition of the advance or fee, whether the loan is finally consummated or not, and the term for which the agreement is to remain in force before return of the advance or fee for nonperformance can be required.

Advances or fees shall be immediately deposited in a trust account in a bank, savings bank or savings and loan association that is fully insured by the federal deposit insurance corporation or any successor agency and shall not be commingled with other monies.

The trust account shall designate the licensee as trustee and shall provide for withdrawal of the monies without previous notice.

Withdrawals shall only be disbursed according to the terms of the agreement.

A licensee who receives advances or fees shall preserve and on request make available to the deputy director all deposits, withdrawal receipts and statements of account rendered by the bank or savings and loan association.

The licensee shall further preserve all agreements between the parties involved in the transaction and all contracts, agreements and instructions to or with the depository and shall keep an accurate accounting of each separate bank account in which the trust funds have been deposited.

If the loan is declined by or on behalf of the lender or cancelled by the applicant, all documents provided by or at the expense of the applicant, including any appraisal, are the property of the applicant.

At the applicant's discretion, said documents shall be returned or transferred to any financial institution or enterprise so designated without additional consideration except for fees for which the applicant has previously contracted, provided that any such document is not prohibited by law from being transferred or returned.

D.

If periodic payments are to be collected from the mortgagor to provide for payments by the mortgagee of taxes, assessments, insurance premiums, ground rents or other current charges against the real estate security, the estimated payment amount stated to the mortgagor by the mortgage banker shall be such that the total of these payments collected for each category during the tax or other period will approximate the actual tax or other payment when due.

All such periodic payments of taxes, assessments, insurance premiums, ground rents and other current charges shall be accounted for annually to the borrower and, to the extent monies have been collected for payment, shall be paid promptly by the mortgage banker.

- 7 - S.B.

1202 E.

Before a mortgage banking loan closing on residential real property designed principally for the occupancy of from one to four families, a licensee shall fully comply, to the extent they apply, with the real estate lending disclosure requirements of title I of the consumer credit protection act (15 United States Code sections 1601 through 1666j), the real estate settlement procedures act (12 United States Code sections 2601 through 2617) and the regulations promulgated under those acts.

Sec.

8.

Section 6-983, Arizona Revised Statutes, is amended to read:

6-983.

Required accounting practices and records;

escrow of monies;

disclosure A.

A commercial mortgage banker shall keep and maintain at all times correct and complete records as prescribed by the deputy director that will enable the deputy director to determine whether the licensee is complying with this article.

If the commercial mortgage banker operates two or more licensed places of business in this state, after notifying the deputy director, the commercial mortgage banker may maintain such records at the commercial mortgage banker's principal place of business in this state, except that a commercial mortgage banker, with the approval of the deputy director, may maintain the records outside of this state.

For records kept outside this state, A commercial mortgage banker shall make the records available to the deputy director in this state not more than three business days after demand and shall provide for the acceptance of collect calls or provide a toll free TOLL-FREE telephone number to borrowers to obtain information from the records if the licensed place of business in this state cannot readily provide the information requested by the borrowers.

A commercial mortgage banker shall maintain original documents or clearly legible copies of all commercial mortgage loan transactions for at least two years after the date of the commercial mortgage loan closing.

B.

A commercial mortgage banker shall observe generally accepted accounting principles and practices.

C.

If a commercial mortgage banker requires an advance or fee to be paid in connection with an application for a commercial mortgage loan, there shall be a written agreement.

The parties shall sign the written agreement, and the agreement shall contain terms pertaining to the payment of the fee or disposition of the advance or fee, whether the loan is finally consummated or not, and a term for which the agreement is to remain in force before return of the advance or fee for nonperformance can be required.

The licensee shall immediately deposit advances or fees in a trust account in a bank, savings bank or savings and loan association that is fully insured by the federal deposit insurance corporation or any successor agency, and the advances or fees shall not be commingled with other monies.

The trust account shall designate the licensee as trustee and shall provide for withdrawing the monies without previous notice.

- 8 - S.B.

1202 Withdrawals shall only be disbursed according to the terms of the agreement.

A licensee who receives advances or fees shall preserve and on request make available to the deputy director all deposits, withdrawal receipts and statements of account rendered by the bank, savings bank or savings and loan association.

The licensee shall further preserve all agreements between the parties involved in the transaction and all contracts, agreements and instructions to or with the depository and shall keep an accurate accounting of each separate bank account in which the trust monies have been deposited.

If the loan is declined by or on behalf of the lender or canceled by the applicant, all documents provided by or at the expense of the applicant, including any appraisal, are the property of the applicant.

At the applicant's discretion, the documents shall be returned or transferred to any designated financial institution or enterprise without additional consideration except for fees for which the applicant has previously contracted, if the document is not prohibited by law from being transferred or returned.

D.

If periodic payments are to be collected from the mortgagor to provide for payments by the mortgagee of taxes, assessments, insurance premiums, ground rents or other current charges against the real estate security, the estimated payment amount stated to the mortgagor by the commercial mortgage banker shall be such that the total of these payments collected for each category during the tax or other period will approximate the actual tax or other payment when due.

The licensee shall annually account to the borrower for all such periodic payments of taxes, assessments, insurance premiums, ground rents and other current charges and, to the extent monies have been collected for payment, shall pay them promptly.

Sec.

"CreditedSection service"6-991.04, means,Arizona subjectRevised toStatutes, sectionis 38-739,amended the number of years standing to theread: member's credit on the books of ASRS during which the member made the required contributions.

-5-6-991.04. House Amendments to S.B.

1202Issuance 10.of license;

"Currentnotice annualfrom compensation"employing meansmortgage thebroker, greatermortgage of:banker or consumer lender or registered exempt person;

(a)renewal; Annualized compensation of the typical pay period amount immediately before the date of a request to ASRS to purchase credited service pursuant to section 38-743, 38-744 or 38-745.

Theinactive typicalstatus; pay period amount shall be determined by taking the five pay periods immediately before the date of a request, disregarding the highest and lowest compensation amount pay periods and averaging the three remaining pay periods.

(b)address Annualizedchange; compensation of the partial year, disregarding the first compensation amount pay period, if the member has less than twelve months total compensation on the date of a request to purchase credited service pursuant to section 38-743, 38-744 or 38-745.

(c)fee TheA. sum of the twelve months of compensation immediately before the date of a request to ASRS to purchase credited service pursuant to section 38-743, 38-744 or 38-745.

(d) The sumdeputy ofdirector, theon thirty-sixdetermining monthsthat ofan compensationapplicant immediatelyis beforequalified theand datehas ofpaid athe requestrequired tofees, ASRSshall toissue purchasea creditedloan serviceoriginator's pursuantlicense to sectionthe 38-743,applicant 38-744evidenced orby 38-745a dividedcontinuous bycertificate. three.

(e)The Ifdeputy thedirector membershall hasgrant retired one or moredeny timesa fromlicense ASRS,within theone averagehundred monthlytwenty compensationdays thatafter wasreceiving used for calculating the member'scompleted lastapplication pensionand benefitfees. times twelve.

An applicant who has been denied a license may not reapply for a license before one year after the date of the previous application.

B.

On issuance of the license, the deputy director shall keep the loan originator's license until a mortgage broker or mortgage banker licensed pursuant to this chapter or a consumer lender employs the loan originator and the employer provides a written notice that the employer has hired the loan originator or until an exempt person who is registered - 9 - S.B.

1202 pursuant to section 6-912 provides a written notice that the exempt person has engaged the loan originator on an exclusive contract with the exempt person.

The employer shall provide the notice before the loan originator begins working for the employer.

Exempt persons who are registered pursuant to section 6-912 shall provide the notice before the loan originator begins work under the exclusive contract with the exempt person.

The notice shall be from an officer or other person authorized by the employer or registered exempt person.

The notice shall contain a request for the loan originator's license and shall be dated, signed and notarized.

On receipt of the request, the deputy director shall forward the loan originator's license to the employing mortgage broker, mortgage banker, consumer lender or registered exempt person.

C.

Licenses shall be issued for a one-year period.

D.

A loan originator shall apply for renewal on forms prescribed by the deputy director.

The application shall include original certificates evidencing the loan originator's successful completion of eight continuing education units during the preceding one-year period by a continuing education provider approved by the deputy director.

E.

A loan originator shall pay the renewal fee every year on or before December 31.

Licenses not renewed by December 31 are suspended, and the licensee shall not act as a loan originator until the license is renewed or a new license is issued pursuant to this article.

A person may renew a suspended license by paying the renewal fee plus a dollar amount to be determined by the deputy director for each day after December 31 that a license renewal fee is not received by the deputy director.

F.

Licenses that are not renewed by January 31 of each year expire.

A license shall not be granted to the holder of an expired license except as provided in this article for the issuance of an original license.

G.

From December 1 through December 31 of each renewal period, a licensee may request inactive status for the following license period.

The license shall be placed on inactive status after the licensee pays to the deputy director the inactive status renewal fee and surrenders the license to the deputy director.

During inactive status, an inactive licensee shall not act as a loan originator.

The license expires if the licensee violates this subsection.

H.

At renewal, an inactive licensee may return to active status by doing all of the following:

1.

Providing the deputy director with evidence that the licensee has met the requirements of section 6-991.03, subsection B.

2.

Making a written request to the deputy director for reactivation.

3.

Paying the annual licensing fee.

4.

Providing the deputy director with proof that the licensee meets all other requirements for acting as a loan originator.

- 10 - S.B.

1202 I.

The mortgage broker, mortgage banker, consumer lender or registered exempt person shall keep and maintain at the principal place of business in this state the loan originator's license during the loan originator's employment or exclusive contract term.

A copy of the loan originator's license shall be available for public inspection during regular business hours.

J.

A loan originator shall immediately notify the deputy director of a change in the loan originator's residence address.

The deputy director shall endorse the change of address on the license for a fee to be determined by the deputy director.

K.

Within five business days after any licensee's employment termination, the employing mortgage broker, mortgage banker, consumer lender or registered exempt person shall do both of the following:

1.

Notify the deputy director of the licensee's termination.

2.

Return the license to the deputy director.

L.

An applicant for a loan originator license who is currently registered with the nationwide mortgage licensing system and registry established by the secure and fair enforcement for mortgage licensing act of 2008 (P.L.

110-289;

122 Stat.

2810;

12 United States Code sections 5101 through 5116) or its successor may be granted a temporary license for a period OF not to exceed MORE THAN one hundred eighty days.

M.

The deputy director shall establish a process for loan originators to challenge information that the deputy director enters into the nationwide mortgage licensing system and registry.

Sec.

10.

Section 6-1405, Arizona Revised Statutes, is amended to read:

6-1405.

Issuance of license or branch office permit;

license year;

renewal;

expiration;

requirements A.

If no grounds for denial of a license or branch office permit are found to exist, the deputy director shall, within one hundred twenty days of AFTER receiving a complete application, SHALL grant the application and issue a license or branch office permit to the applicant.

B.

The license or branch office permit year for a licensee begins January 1 and ends December 31 of each year.

A LICENSE OR PERMIT THAT IS ISSUED PURSUANT TO THIS CHAPTER REMAINS ACTIVE UNTIL THE LICENSE OR PERMIT EXPIRES OR THE DIRECTOR SUSPENDS, REVOKES OR TERMINATES THE LICENSE OR PERMIT.

C.

All licenses and branch office permits issued shall remain in full force and effect until surrendered, revoked or suspended.

C.

A LICENSEE OR PERMIT HOLDER SHALL APPLY FOR RENEWAL AS PRESCRIBED BY THE DEPUTY DIRECTOR AND PAY THE RENEWAL FEE PRESCRIBED IN SECTION 6-126 NOT LATER THAN DECEMBER 31 OF EACH YEAR.

FOR EACH DAY AFTER DECEMBER 31 THAT THE RENEWAL APPLICATION IS NOT RECEIVED BY THE DEPUTY DIRECTOR, THE APPLICANT SHALL PAY A $25 LATE FEE IN ADDITION TO THE FEE PRESCRIBED IN SECTION 6-126.

IF THE DEPUTY DIRECTOR DOES NOT RECEIVE THE - 11 - S.B.

1202 LICENSEE'S OR PERMIT HOLDER'S RENEWAL APPLICATION AND FEE ON OR BEFORE DECEMBER 31, THE LICENSEE OR PERMIT HOLDER MAY NOT ACT AS A PREMIUM FINANCE COMPANY OR BRANCH OFFICE UNTIL THE LICENSE OR PERMIT IS RENEWED OR A NEW LICENSE OR PERMIT IS ISSUED PURSUANT TO THIS CHAPTER.

IF THE DEPUTY DIRECTOR DOES NOT RECEIVE THE LICENSEE'S OR PERMIT HOLDER'S RENEWAL APPLICATION AND FEE ON OR BEFORE JANUARY 31, THE LICENSE OR PERMIT AUTOMATICALLY EXPIRES.

THE HOLDER OF AN EXPIRED LICENSE OR PERMIT MAY NOT BE ISSUED A RENEWAL LICENSE OR PERMIT BUT MAY BE ISSUED A NEW LICENSE OR PERMIT AS PROVIDED IN THIS CHAPTER.

D.

A license or branch office permit remains the property of this state.

On termination, at the request of the licensee or revocation by the deputy director, the licensee shall immediately deliver the license or branch office permit to the deputy director.

Sec.

"EarlySection retirement"32-1025, meansArizona retirementRevised beforeStatutes, ais member'samended normalto retirementread: date after five years of total credited service and attainment of age fifty.

32-1025.

Annual renewal of license;

suspension;

expiration A.

Except as provided in section 32-4301, a person desiring to secure renewal of a collection agency license shall file a financial statement, make a renewal application to the department and pay the fees prescribed in section 6-126 not later than January 1 DECEMBER 31 of each year on forms prescribed by the deputy director setting forth verified information to assist the deputy director in determining whether the applicant is in default of or in violation of the terms of this chapter and whether the applicant is still meeting the requirements of this chapter.

If the renewal applicant is unable to make a financial statement at the time of filing the application, the applicant may make a written request for an extension of time to file such financial report, and if the extension is granted the applicant shall file a financial statement not later than March 1.

B.

Licenses that are not renewed on or before January 1 DECEMBER 31 are suspended BY OPERATION OF LAW.

A licensee may renew a suspended license by submitting to the department the fees prescribed in section 6-126 along with a renewal application and any applicable late fee, as may be determined by the deputy director by rule, before January 31.

Licenses that are not renewed on or before January 31 expire.

Sec.

"EffectiveSection date"32-3619, meansArizona JulyRevised 1,Statutes, 1970,is exceptamended with respect to employersread: and members whose contributions to ASRS commence thereafter, the effective date of their membership in ASRS is as specified in the applicable joinder agreement.

32-3619.

Renewal of license or certificate;

fees A.

Except as otherwise provided in this section and in section 32-4301, to renew a registration certificate as a registered trainee appraiser or a license or certificate as a state-licensed or state-certified appraiser, the holder of a current, valid license or certificate shall apply and pay the prescribed fee to the deputy director not earlier than ninety days nor later than thirty days before the license or certificate expires.

With the application for renewal, the registered - 12 - S.B.

1202 trainee appraiser or the state-licensed or state-certified appraiser shall present evidence in the form prescribed by the deputy director of having completed the continuing education requirements for renewal specified in section 32-3625.

B.

The deputy director may accept a renewal application after the expiration date and within ninety days of the date of expiration but shall assess a delinquent renewal fee in addition to the renewal fee.

C.

An appraiser or registered trainee appraiser who fails to seek renewal within the time period specified in subsection A or B of this section must reapply for licensure or certification and meet all of the requirements of this chapter.

D.

An appraiser or registered trainee appraiser shall not engage in, advertise or purport to engage in real estate appraisal activity in this state after a license or certificate has expired and before the renewal of the expired license or certificate except as provided in section 41-1092.11.

Sec.

"Employer"Section means:32-3652, Arizona Revised Statutes, is amended to read:

(a)32-3652. This state.

(b)Registration; Participating political subdivisions.

(c)renewal; Participating political subdivision entities.

-6-fees HouseA. Amendments to S.B.

1202An 14.individual who wishes to act as a property tax agent shall apply for registration by submitting to the deputy director a completed application form prescribed by the deputy director with the initial registration fee.

"EmployerThe contributions"applicant meansshall allalso amountsfile paidwith intothe ASRSdeputy bydirector an employeraffidavit onstating behalfwhether the applicant has been convicted of a member.felony or any misdemeanor involving dishonesty or moral turpitude in this or any other state within the last ten years.

15.The deputy director may review the affidavit and issue or deny the registration based on its findings.

"FiscalB. year" means the period from July 1 of any year to June 30 of the following year.

16.Except as provided in section 32-4301, registration is valid for two years.

"InactiveAn member"individual meansmay renew a memberregistration whoby previouslysubmitting madeto contributionsthe todeputy ASRSdirector anda whorenewal satisfiesform eachprescribed ofby the following:deputy director with the renewal fee on or before the date the registration expires.

(a)C. Has not retired.

(b)An Isappraiser notwho eligibleis forlicensed activeor membershipcertified inpursuant ASRS.to this chapter may register and renew registration as a property tax agent without paying the fee prescribed by this section.

(c)D. Is not currently making contributions to ASRS.

(d)The Hasdeputy notdirector withdrawnshall contributionsissue a certificate of registration to an individual if the individual complies with this section and is not prohibited from ASRS.registering pursuant to section 32-3654.

17.E.

"Interest"A meansperson theshall assumednot actuarialact investmentas earningsa rateproperty approvedtax byagent if the board.person is not registered pursuant to this section.

18.F.

"InternalThe revenuedeputy code"director meansshall thecollect Unitedfrom Stateseach internalindividual revenuea codefee ofof: 1986, as amended.

19.1.

"Investment$200 manager" means the persons, companies, banks, insurance company investment funds, mutual fund companies, management or any combinations of those entities that are appointed by ASRS and that have responsibility and authority for investmentan ofinitial theregistration. monies of ASRS.

20.2.

"Late$100 retirement"for meansa retirementrenewal. after normal retirement.

21.3.

"Leave$5 of absence" means any unpaid leave authorized by the employer, including leaves authorized for sicknessa orduplicate disabilityregistration orcertificate. to pursue education or training.

22.- 13 -

"Life annuity" means equal monthly installments payable during the member's lifetime after retirement.

23.

"Member":

(a) Means any employee of an employer on the effective date.

(b) Means all employees of an employer who are eligible for membership pursuant to section 38-727 and who are engaged to work at least twenty weeks in each fiscal year and at least twenty hours each week.

(c) Means any person receiving a benefit under ASRS.

(d) Means any person who is a former active member of ASRS and who has not withdrawn contributions from ASRS pursuant to section 38-740.

-7- House Amendments to S.B.

1202 (e) Does not include any employee of an employer who is otherwise eligible pursuant to this article and who begins service in a limited appointment for not more than eighteen months on or after July 1, 1979.

If the employment exceeds eighteen months, the employee shall be covered by ASRS as of the beginning of the nineteenth month of employment.

In order to be excluded under this subdivision, classifications of employees designated by employers as limited appointments must be approved by the director.

(f) Does not include any leased employee.

For the purposes of section 414(n) of the internal revenue code, "leased employee" means an individual who:

(i) Is not otherwise an employee of an employer.

(ii) Pursuant to a leasing agreement between the employer and another person, performs services for the employer on a substantially full-time basis for at least one year.

(iii) Performs services under the primary direction or control of the employer.

(g) DOES NOT INCLUDE ANY EMPLOYEE OF A POLITICAL SUBDIVISION ENTITY THAT IS A STATEWIDE ORGANIZATION REPRESENTING CITIES AND TOWNS WHO IS HIRED ON OR AFTER THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION.

24.

"Member contributions" means all amounts paid to ASRS by a member.

25.

"Normal costs" means the sum of the individual normal costs for all active members for each fiscal year.

The normal cost for an individual active member is the cost that is assigned to the fiscal year, through June 29, 2016, using the projected unit credit method and, beginning June 30, 2016, using the actuarial cost method determined by the board pursuant to section 38-714.

26.

"Normal retirement age" means the age at which a member reaches the member's normal retirement date.

27.

"Normal retirement date" means the earliest of the following:

(a) For a member whose membership commenced before July 1, 2011:

-8- House Amendments to S.B.

1202 (i) A member's sixty-fifth birthday.

(ii) A member's sixty-second birthday and completion of at least ten years of credited service.

(iii) The first day that the sum of a member's age and years of total credited service equals eighty.

(b) For a member whose membership commenced on or after July 1, 2011:

(i) A member's sixty-fifth birthday.

(ii) A member's sixty-second birthday and completion of at least ten years of credited service.

(iii) A member's sixtieth birthday and completion of at least twenty-five years of credited service.

(iv) A member's fifty-fifth birthday and completion of at least thirty years of credited service.

28.

"Political subdivision" means any political subdivision of this state and includes a political subdivision entity.

29.

"Political subdivision entity" means an entity:

(a) That is located in this state.

(b) That is created in whole or in part by political subdivisions, including instrumentalities of political subdivisions.

(c) Where a majority of the membership of the entity is composed of political subdivisions.

(d) Whose primary purpose is the performance of a government-related service.

30.

"Retired member" means a member who is receiving retirement benefits pursuant to this article.

31.

"Service year" means fiscal year, except that:

(a) If the normal work year required of a member is less than the full fiscal year but is for a period of at least nine months, the service year is the normal work year.

(b) For a salaried member employed on a contract basis under one contract, or two or more consecutive contracts, for a total period of at -9- House Amendments to S.B.

1202 least nine months, the service year is the total period of the contract or consecutive contracts.

(c) In determining average monthly compensation pursuant to paragraph 5 of this section, the service year is considered to be twelve months of compensation.

32.

"State" means this state, including any department, office, board, commission, agency, institution or other instrumentality of this state.

33.

"Vested" means that a member is eligible to receive a future retirement benefit." Amend title to conform NEAL CARTER 1202CARTER.docx 03/22/2023 04:37 PM C:

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