AZ HB2434

Establishes a regulatory sandbox program administered by the Attorney General allowing companies to test innovative financial products and services for up to 24 months without state licensure requirements.

Limits sandbox participants to testing with no more than 10,000 Arizona consumers, with specific transaction limits for money transmitters ($2,500 individual transactions, $25,000 aggregate) and consumer lenders (up to $15,000 individual loans, $50,000 aggregate per consumer).

Requires sandbox participants to disclose to consumers that the product is a temporary test not endorsed by the state, provide their registration number, and inform consumers of the expected end date and how to file complaints with the Attorney General.

Participants must exit the sandbox after 24 months by ceasing operations or pursuing required state licensure, with possible one-year extensions to complete the licensing process.

Adds regulatory sandbox application fees to the consumer protection-consumer fraud revolving fund and requires the Attorney General to annually report on sandbox program results; program terminates July 1, 2028.