SENATE BILL REPORT

                                    SB 6348

        AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE,

                               FEBRUARY 7, 1992

Brief Description:  Reimbursing financial institutions for producing records.

SPONSORS: Senators von Reichbauer, Vognild and Sellar

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  That Substitute Senate Bill No. 6348 be substituted therefor, and the substitute bill do pass. 

      Signed by Senators von Reichbauer, Chairman; Erwin, Vice Chairman; Moore, Owen, Pelz, Sellar, and Vognild.

Staff:  Traci Anderson (786‑7452)

Hearing Dates: February 4, 1992; February 7, 1992

BACKGROUND:

Financial institutions frequently receive judicial and administrative requests for copies of its records.  Financial institutions customarily charge a fee to cover the cost of producing such records.

It is reported that certain state and local government agencies are resistant to providing reimbursement to financial institutions for the cost of reproducing records requested by these agencies.

SUMMARY:

Financial institutions that receive judicial and administrative requests for copies of its records are entitled to be reimbursed by the requesting party for the cost of producing such records.  The reimbursement must be paid before the financial institution is obligated to produce the records.

EFFECT OF PROPOSED SUBSTITUTE:

The financial institutions covered under the provisions of this bill (banks, trust companies, credit unions, mutual savings banks, and savings and loan associations) are expanded to include nationally chartered banks, trust companies, credit unions, mutual savings banks, and savings and loan associations.  The original bill covered only state chartered financial institutions.

Financial institutions are entitled to be reimbursed for the reasonable costs of producing its records only when the cost of producing those records exceeds $25.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested January 30, 1992

TESTIMONY FOR:

It can be very costly for financial institutions to provide all of the documents requested by judicial or administrative agencies.  This bill would allow financial institutions to be reimbursed for the costs associated with producing these records.

TESTIMONY AGAINST:

Financial institutions and all citizens have an interest in facilitating the prosecution of criminals.  Financial institutions should not be paid to assist in the prosecution of such criminals.  In addition, the cost of reimbursing them for all requested records would be a budget buster for many agencies.

TESTIFIED:  PRO:  Trevor Sandison, Washington Bankers Association; Gary Gardner, Washington Credit Union League; CON:  Mike Redman, WAPA