H-1837.1                  _______________________________________________

                                                      HOUSE BILL 2068

                              _______________________________________________

State of Washington                              53rd Legislature                             1993 Regular Session

By Representatives Dellwo and Brown

Read first time 02/26/93.  Referred to Committee on Financial Institutions & Insurance.

Allowing institutions of higher education to accept certain checks.

          AN ACT Relating to employee check cashing by regional and state universities, The Evergreen State College, and the community and technical colleges; and adding a new section to chapter 28B.10 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28B.10 RCW to read as follows:

          (1) A regional and state university, The Evergreen State College, and a community and technical college may, at its option and after the approval by governing boards, accept in exchange for cash a payroll check, expense check, financial aid check, or personal check from a university student or employee in accordance with the following conditions:

          (a) The check must be drawn to the order of cash or bearer and be immediately payable by a drawee financial institution;

          (b) The person presenting the check to the university or college must produce identification that he or she is currently enrolled or employed at the university;

          (c) The payroll check, expense check, or financial aid check must have been issued by the university or college; and

          (d) The institution may establish a fee for the check cashing service that reflects the reasonable costs of providing this service.

          (2) If a personal check cashed under this section is dishonored by the drawee financial institution when presented for payment, the university or college, after giving notice of the dishonor to the student or employee and providing an opportunity for a brief adjudicative proceeding, may:

          (a) For a student, place a hold on the student's enrollment or transcript records, or both, until payment in full of the value of the dishonored check and reasonable collection fees and costs; and

          (b) For an employee, withhold from the next payroll check or expense check the full amount of the dishonored check plus a collection fee.  If the employee is no longer employed by the university or college at time of dishonor, then the university or college is authorized to pursue other legal collection efforts that are to be paid by the drawer or endorser of the dishonored check along with the full value of the check.

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