CERTIFICATION OF ENROLLMENT

                        HOUSE BILL 2069

                        53rd Legislature

                      1993 Regular Session

Passed by the House March 13, 1993   Yeas 94   Nays 2 Speaker of the        House of Representatives Passed by the Senate April 8, 1993   Yeas 47   Nays 0

CERTIFICATE I, Alan Thompson, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2069 as passed by the House of Representatives and the Senate on the dates hereon set forth.

President of the Senate

Chief Clerk

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                        State of Washington

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                                                      HOUSE BILL 2069

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                                                       Passed Legislature - 1993 Regular Session

State of Washington                              53rd Legislature                             1993 Regular Session

By Representatives Mielke and Zellinsky

Read first time 02/26/93.  Referred to Committee on Financial Institutions & Insurance.

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

          AN ACT Relating to check cashing by any institution of higher education; and adding a new section to chapter 28B.10 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 28B.10 RCW to read as follows:

          (1) Any institution of higher education may, at its option and after the approval by governing boards, accept in exchange for cash a payroll check, expense check, financial aid check, or personal check from a student or employee of that institution of higher education in accordance with the following conditions:

          (a) The check shall be drawn to the order of cash or bearer and be immediately payable by a drawee financial institution;

          (b) The person presenting the check to the institution of higher education shall produce identification that he or she is currently enrolled or employed at the institution of higher education; and

          (c) The payroll check, expense check, or financial aid check shall have been issued by the institution of higher education.

          (2) In the event that any personal check cashed under this section is dishonored by the drawee financial institution when presented for payment, the institution of higher education, after giving notice of the dishonor to the student or employee and providing an opportunity for a brief adjudicative proceeding, may:

          (a) In the case of a student, place a hold on the student's enrollment and transcript records until payment in full of the value of the dishonored check and reasonable collection fees and costs;

          (b) In the case of an employee, withhold from the next payroll check or expense check the full amount of the dishonored check plus a collection fee.  In the case that the employee no longer is employed by the institution of higher education at time of dishonor, then the institution of higher education may pursue other legal collection efforts that are to be paid by the drawer or endorser of the dishonored check along with the full value of the check.

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