6 www.azbankers.org The 2022 legislative session has adjourned … finally. The session dragged on, as expected, while the legislators and Governor hammered out a state budget. The budget was complicated by a massive revenue surplus, very narrow Republican majorities (not a single vote to spare), and election-year politics. The goal of a 100-day session was quickly abandoned, and ultimately the session dragged on to 166 days, just one week short of the new fiscal year. What was the result for Arizona’s banking industry? The efforts of the Arizona Bankers Association paid off, and the banking industry escaped the session unscathed. In fact, the Association had a few proactive victories. We were able to clean up the Foreign Country Money Judgements law to insert a savings clause. The lack of a savings clause was thoroughly discussed in litigation that came before the Arizona Supreme Court, and with the input from the Court’s decision, we were able to make the law better. Additionally, we had several victories in getting amendments to legislation on data breaches and money transmitters. However, our biggest victories came in the form of defensive wins. The biggest legislative challenges faced by the banking industry included efforts to eliminate the use of ESG factors (Environmental, Social Governance) in investment and banking decisions, as well as forced access laws relating to banking of the firearms industry. These bills were narrowly defeated because a few Republican members stood up for the right of a business to determine whom they choose to do business with in a competitive free market. Specifically, the proposed ESG legislation would have prohibited a financial institution “from discriminating against any person based on a political affiliation or other social credit, environmental, social, governance or similar values-based or impact criteria.” The bill broadly defined “discrimination” and would therefore have severely tied the hands of banks and large investors. Forced access legislation followed a similar narrative of “preventing discrimination” against firearms businesses. Despite the inability of the bill’s proponents to demonstrate actual harm or the inability to secure banking services, the bill advanced easily through committees but was finally held up before reaching the Senate floor. Under the Copper Dome Banks in Battle at the State Capitol … Big Fights Still to Come
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