HOUSE BILL REPORT

                  HB 2069

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to check cashing by any institution of higher education.

Brief Description:  Allowing institutions of higher education to cash student's and employee's checks.

Sponsors:  Representatives Mielke and Zellinsky.

Brief History:

  Reported by House Committee on:

Financial Institutions & Insurance, March 1, 1993, DP.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 15 members:  Representatives Zellinsky, Chair; Scott, Vice Chair; Mielke, Ranking Minority Member; Dyer, Assistant Ranking Minority Member; Anderson; Dellwo; Grant; R. Johnson; Kessler; Kremen; Lemmon; R. Meyers; Reams; Schmidt; and Tate.

Staff:  John Conniff (786-7119).

Background: State colleges and universities have limited ability to cash student and employee checks.

Summary of Bill:  Any institution of higher education may, at its option and after the approval of the governing board, cash payroll checks, expense checks, financial aid checks, or personal checks for students and employees.

If a check is cashed and remains unpaid, the college or university may place a hold on a student's enrollment and transcripts until paid along with reasonable collection fees and costs.  In the case of employees, a college or university may withhold from the next payroll or expense check of the employee, the amount of the unpaid check plus a collection fee.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Witnesses:  None.