H-914                _______________________________________________

 

                                                    HOUSE BILL NO. 701

                        _______________________________________________

 

State of Washington                              49th Legislature                              1985 Regular Session

 

By Representatives Lux, Zellinsky, Winsley, Crane, Vekich, Basich, Addison, Locke, Lewis, Niemi, Holland, D. Nelson, Patrick, Leonard, Nutley, Ebersole, Todd, Wang, Doty and Wineberry

 

 

Read first time 2/8/85 and referred to Committee on Financial Institutions & Insurance.

 

 


AN ACT Relating to financial institutions; and creating new sections.

 

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

 

          NEW SECTION.  Sec. 1.     After numerous hearings the legislature finds that the fees imposed by some financial institutions for the service of cashing government checks for noncustomers are high in comparison to the actual transaction costs and the losses caused by forged endorsements.  These high fees 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 may no longer be provided free of charge to the public.  Nevertheless, the legislature believes that financial institutions should assist in the attainment of public policy objectives involving fund transfers between the government and its citizens by providing check cashing services at minimum cost to recipients of government checks.  Rather than imposing new regulation on financial institutions, the legislature encourages financial institutions to remove or lower the fees charged for cashing government checks for noncustomers and to develop new accounts offering basic checking services at low cost.

 

          NEW SECTION.  Sec. 2.     (1) By January 1, 1986, 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.

          (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; and

          (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.

          (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.