FINAL BILL REPORT

                           SSB 5176

                          C 342 L 93

                      SYNOPSIS AS ENACTED

Brief Description:  Concerning the cashing of government issued checks or warrants.

SPONSORS: Senate Committee on Labor & Commerce (originally sponsored by Senators Vognild, Pelz, Moore, Wojahn and Fraser)

SENATE COMMITTEE ON LABOR & COMMERCE

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

BACKGROUND:

While some financial institutions will not cash a government issued check or public assistance check for a noncustomer, those institutions that will cash such checks sometimes charge a fee for the service.  Some institutions charge a fixed fee, ranging from less than $1 to $7.  Other institutions charge a fee of approximately 2 percent of the face amount of the check.  In addition to financial institutions, check cashers also cash government issued checks for a fee ranging from 2 to 5 percent of the check's face amount depending upon the type of check and whether the person can provide identification.

Some interest has been expressed in requiring qualified public depositaries to cash certain government issued checks.  Qualified public depositaries are those financial institutions approved by the Washington Public Deposit Protection Commission to accept public funds and include many commercial banks, savings banks, and savings and loan associations.

SUMMARY:

In conjunction with the State Treasurer's office and the Department of Social and Health Services, the Supervisor of Banking and the Supervisor of Savings and Loan are directed to study methods to inexpensively transfer government funds to persons receiving public assistance.  The supervisors are to prepare a report containing their findings and recommendations and provide the report to the Legislature by January 1, 1994.

VOTES ON FINAL PASSAGE:

Senate    33   16

House     97   0   (House amended)

Senate    32   14   (Senate concurred)

EFFECTIVE:July 25, 1993