H-1272.1          _______________________________________________

                                  HOUSE BILL 1858

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By Representatives Bray, Roland and Haugen.

Read first time February 12, 1991.  Referred to Committee on Local Government.Authorizing cities and towns to cash employee checks, drafts, and warrants.

     AN ACT Relating to employee check, draft, or warrant cashing by cities and towns; adding a new section to chapter 35.21 RCW; and adding a new section to chapter 35A.40 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 35.21 RCW to read as follows:

     Any city or town is hereby authorized, at its option and after the adoption of the appropriate ordinance, to accept in exchange for cash a payroll check, draft, or warrant; expense check; or personal check from a city or town employee in accordance with the following conditions:

     (1) The check, warrant, or draft must be drawn to the order of cash or bearer and be immediately payable by a drawee financial institution; (2) The person presenting the check, draft, or warrant to the city or town must produce identification as outlined by the city or town in the authorizing ordinance;

     (3) The payroll check, draft, or warrant or expense check must have been issued by the city or town; and

     (4) Personal checks cashed pursuant to this authorization cannot exceed two hundred dollars.

     In the event that any personal check cashed for a city or town employee by the city or town under this section is dishonored by the drawee financial institution when presented for payment, the city or town is authorized, after notice to the drawer or endorser of the dishonor, to withhold from the drawer's or endorser's next payroll check, draft, or warrant the full amount of the dishonored check.

NEW SECTION. Sec. 2.  A new section is added to chapter 35A.40 RCW to read as follows:

     Any code city is hereby authorized, at its option and after the adoption of the appropriate ordinance, to accept in exchange for cash a payroll check, draft, or warrant; expense check; or personal check from a city employee in accordance with the following conditions:

     (1) The check, warrant, or draft must be drawn to the order of cash or bearer and be immediately payable by a drawee financial institution; (2) The person presenting the check, draft, or warrant to the city must produce identification as outlined by the city in the authorizing ordinance;

     (3) The payroll check, draft, or warrant or expense check must have been issued by the city; and

     (4) Personal checks cashed pursuant to this authorization cannot exceed two hundred dollars.

     In the event that any personal check cashed for a city employee by the city under this section is dishonored by the drawee financial institution when presented for payment, the city is authorized, after notice to the drawer or endorser of the dishonor, to withhold from the drawer's or endorser's next payroll check, draft, or warrant the full amount of the dishonored check.