Assigned to FS                                                                                                           FOR CAUCUS & FLOOR ACTION

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

REVISED

FACT SHEET FOR S.B. 1304

 

credit cards; community debts; exception

 

Purpose

 

            Requires credit card debts to have both spouses’ names on the account and both spouses to sign the application form in order for the debt to be communal.

 

Background

 

            Arizona is one of nine states with community property laws.  This means that any debt incurred during the marriage is the responsibility of both individuals.  Creditors may pursue either spouse for a debt incurred by one spouse.  The proposed legislation limits community debts involving credit cards.  It requires that both spouses sign the application form and that the accounts be issued in both spouses’ names in order for it to bind the community.

 

            The potential fiscal impact on credit card companies is unknown.

 

Provisions

 

1.      Restricts communal debts relating to credit cards, to those in which both spouses sign the application form and the accounts are issued in both names.

 

2.      Makes technical changes

 

3.      Provides for a general effective date.

 

Amendments Adopted by Committee

 

1.      Clarifies that both spouses’ names appear on the credit card account.

 

Senate Action

 

FS                    DPA                4-3-0

 

 

Prepared by Senate Staff

February 10, 2000