FINAL BILL REPORT

                   SB 5931

                          C 344 L 95

                      Synopsis as Enacted

Brief Description:  Providing parity among financial institutions.

Sponsors:  Senators Prentice and Hale.

Senate Committee on Financial Institutions & Housing

House Committee on Financial Institutions & Insurance

Background:  All financial institutions must be chartered by either the state or the federal government.  State-chartered and federally-chartered institutions are subject to different regulations.

Summary:  When adopting rules governing the lending limits of state-chartered financial institutions, the Director of the Department of Financial Institutions is guided by rules governing lending limits of federally-chartered financial institutions.

The requirement that banks and trust companies publish call reports in newspapers is repealed.  However, the director must provide a copy of a call report, free of charge, to anyone who requests one.

State-chartered banks are authorized to conduct the same activities that national banks were authorized to conduct before August 31, 1994.  Any activities authorized by national banks after August 31, 1994 may be conducted by state-chartered banks only with the director's approval and only after the director has made affirmative findings that the activities would:  (1) serve the convenience and advantage of depositors, borrowers, or the public; and (2) maintain fair competition and parity between state-chartered and national banks.

Votes on Final Passage:

Senate    47 0

House     96 0 (House amended)

Senate    47 0 (Senate concurred)

Effective:  July 23, 1995