What’s in a name? In the case of the Arizona Department of Banking, not enough, say backers of a bill that would rename the department.

Supported by the Arizona Credit Union League, H2241 would change the department’s name to the Department of Financial Institutions.

“I think it better reflects what they do. They are doing more than just banking these days,” said the bill’s sponsor, Rep. Ted Carpenter, R-6.

The department regulates 19 separate entities that range from state-chartered banks to motor vehicle dealers and collection agencies.

The bill would also broaden the selection pool for the department’s superintendent position. The current qualifications for department superintendent are five years as an executive officer in the banking industry. Under the proposed legislation, the superintendent could be selected from any of the 19 institutions the department regulates.

Twenty-eight other states have changed the name of their banking departments to the Department of Financial Institutions, or something similar, including all of Arizona’s neighboring states.

“This is a problem because it’s a generic name,” said Susie Stevens, Arizona Credit Union League lobbyist. “The new name would be more reflective of what they are actually doing.”

Similar legislation failed last year because of concerns of the cost of changing the name on department materials, which was estimated at about $8,000. This bill has a delayed enactment date that would allow the department until Dec. 31, 2005, to phase out old letterhead, business cards and signage, with no additional costs.

The measure has been met with little opposition from the Banking Department, which remains neutral on the bill, said Kevin McCullogh, Arizona Department of Banking legislative liaison.

“We do regulate 19 other financial institutions and some of the other types of financial institutions are feeling left out,” Mr. McCullough said.

Mr. McCullough said the department doesn’t expect the change to have any financial impact on the department and said the move was “essentially changing the name on stationery.”

While the name change won’t have any major structural impact on the department, supporters of the bill say it will make it more consumer-friendly.

“We think it also provides some consumer benefits,” said Paul Cruikshank, general council for the Arizona Credit Union League. “The department regulates around 19 different entities, only one of which is state-chartered banks. We feel that with a name change it will be more likely that the public will know where to go if they have any issues with any of the other regulating entities there.”

The bill has moved out of the Committee on Financial Institutions and Insurance with unanimous support. —

Bob Purvis is the Don Bolles Fellow in the University of Arizona Journalism Department. He is spending the spring semester of his senior year covering rural and suburban issues at Legislature for the Journalism Department’s Community News Service, serving 80 newspapers around the state.