SENATE BILL REPORT

                   SB 5735

              As Reported By Senate Committee On:

             Government Operations, March 1, 1995

Title:  An act relating to the payment of fees to the county by credit card.

Brief Description:  Paying county fees by credit cards.

Sponsors:  Senators West, Winsley, McCaslin, Haugen, Deccio, Hochstatter, Palmer, Roach, Schow, Wood, Hale, Strannigan and Fraser.

Brief History:

Committee Activity:  Government Operations:  2/22/95, 3/1/95 [DPS].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 5735 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Diane Smith (786-7410)

Background:  There is no provision for a county to accept payment of any fees that it collects, on the state's or its own behalf, from its citizens who wish to pay by credit card.

Summary of Substitute Bill:  Counties are given the authority to choose to accept the payment by credit card or debit card of state or county fees under certain conditions.  Payment by credit card or debit card may be accepted if the bank or financial institution guarantees that the county is not charged for the service.  The other condition under which the county may accept payment by credit card or debit card is when the person seeking to pay by credit card agrees to pay the bank charges in addition to any fee incident to the use of the credit card.

Substitute Bill Compared to Original Bill:  The substitute bill includes debit cards in this authorization given to counties.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Bad checks are a costly problem which this bill would solve.  It would allow counties to negotiate with banks for the most advantageous contract provisions on fees.

Testimony Against:  None.

Testified:  Senator West, prime sponsor.