Z-1134.2          _______________________________________________

                                  HOUSE BILL 2810

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Wolfe, Beeksma and Thompson; by request of Department of Financial Institutions

Read first time 01/22/96.  Referred to Committee on Financial Institutions & Insurance.

Regulating check casher and check seller licenses and small loan endorsements.

     AN ACT Relating to the fees and period of duration for check casher and check seller licenses and small loan endorsements; and amending RCW 31.45.040 and 31.45.050.

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

     Sec. 1.  RCW 31.45.040 and 1995 c 18 s 5 are each amended to read as follows:

     (1) The director shall conduct an investigation of every applicant to determine the financial responsibility, experience, character, and general fitness of the applicant.  The director shall issue the applicant a license to engage in the business of cashing or selling checks, or both, or a small loan endorsement, if the director determines to his or her satisfaction that:

     (a) The applicant is financially responsible and appears to be able to conduct the business of cashing or selling checks or making small loans in an honest, fair, and efficient manner with the confidence and trust of the community; and

     (b) The applicant has the required bonds, or has provided an acceptable alternative form of financial security.

     (2) The director may refuse to issue a license or small loan endorsement if he or she finds that the applicant, or any person who is a director, officer, partner, agent, or substantial stockholder of the applicant, has been convicted of a felony in any jurisdiction or is associating or consorting with any person who has been convicted of a felony in any jurisdiction.  The term "substantial stockholder" as used in this subsection, means a person owning or controlling ten percent or more of the total outstanding shares of the applicant corporation.

     (3) No license or small loan endorsement may be issued to an applicant whose license to conduct business under this chapter had been revoked by the director within the twelve-month period preceding the application.

     (4) A license or small loan endorsement issued under this chapter shall be conspicuously posted in the place of business of the licensee.  The license is not transferable or assignable.

     (5) A license or small loan endorsement issued in accordance with this chapter remains in force and effect ((for a period of five years from the date it is issued unless earlier)) until surrendered, suspended, or revoked.  ((However, the initial small loan endorsement is effective until the next expiration date of the underlying license, unless earlier surrendered, suspended, or revoked.

     (6) The director's investigation and fees required under this chapter shall differentiate between check cashing and check selling and making small loans, and take into consideration the level of risk and potential harm to the public related to each such activity.))

     Sec. 2.  RCW 31.45.050 and 1995 c 18 s 6 are each amended to read as follows:

     (1) ((A license or small loan endorsement may be renewed upon the filing of an application containing such information as the director may require and by the payment of a)) Each applicant and licensee shall pay to the director an investigation fee and an annual assessment fee in an amount determined by rule of the director as necessary to cover the ((costs of supervision.  Such)) operation of the program.  In establishing the fees, the director shall differentiate between check cashing and check selling and making small loans, and consider at least the volume of business, level of risk, and potential harm to the public related to each activity.  The fees collected shall be deposited to the credit of the banking examination fund in accordance with RCW 43.320.110.  ((The director shall renew the license in accordance with the standards for issuance of a new license.))

     (2) If a licensee intends to do business at a new location, to close an existing place of business, or to relocate an existing place of business, the licensee shall provide written notification of that intention to the director no less than thirty days before the proposed establishing, closing, or moving of a place of business.

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