H-3920              _______________________________________________

                                                   HOUSE BILL NO. 1979

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Todd, Jacobsen, Unsoeld, Vekich, Crane, Lux, Wang and Wineberry

Read first time 1/24/86 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to financial institutions; adding a new section to chapter 46.20 RCW; and creating new sections.

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

NEW SECTION. Sec. 1.     The legislature finds that the fees charged by some financial institutions to cash noncustomer government checks and warrants impose a hardship on citizens who receive financial assistance from the state or federal government.

          The legislature recognizes that in an era of deregulation and increased competition, some services offered by financial institutions may no longer be provided free of charge to the public.  Nevertheless, the legislature encourages financial institutions to assist in the attainment of public policy objectives involving fund transfers between the government and its citizens by providing check-cashing services at little or no cost to recipients of government checks and warrants.

          The legislature further encourages financial institutions to develop checking accounts which provide basic services at minimal cost so that recipients of government checks and warrants can avoid check-cashing fees by becoming customers of the financial institution.  The legislature encourages financial institutions to refrain from imposing unnecessary delays on a depositor's ability to withdraw funds deposited by check, and in particular, to refrain from imposing delays beyond the time required to receive credit for the checks on social security and other government checks deposited into established accounts.

NEW SECTION. Sec. 2.     (1) By January 1, 1987, the supervisors of banking and savings and loan associations shall report to the legislature on efforts made by financial institutions to provide basic checking services at low cost and to remove or lower fees charged for cashing government checks for noncustomers. The supervisors shall report on financial institutions' policies in delaying the availability of funds for withdrawal by a customer who has deposited funds by check.

          (2) The report shall contain:

          (a) A current list, prepared by the supervisor of banking, of the basic checking accounts offered and fees imposed for cashing government checks for noncustomers by state and federal commercial banks and savings banks doing business in Washington;

          (b) A current list, prepared by the supervisor of savings and loan associations, of the basic checking accounts offered and fees imposed for cashing government checks for noncustomers by state and federal savings and loan associations doing business in Washington; and

          (c) Information regarding the policies of financial institutions doing business in Washington in making funds deposited by check available for withdrawal by the depositor.

          (3) The report shall be transmitted to the governor, the speaker of the state house of representatives, the president of the senate, and the chairmen of the financial institutions committees of each house of the legislature.

NEW SECTION. Sec. 3.  A new section is added to chapter 46.20 RCW to read as follows:

          In addition to the use of identicards prescribed under RCW 46.20.185, identicards may also be used to establish proof of identity for purposes of the presentment of checks and other negotiable instruments.