HOUSE BILL REPORT

                  SB 6007

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to the limitation on the operating expenses of mutual savings banks.

Brief Description:  Eliminating the operating expenses limitation on mutual savings banks.

Sponsors:  Senators Winsley and Finkbeiner.

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  3/27/97 [DP].

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 11 members:  Representatives L. Thomas, Chairman; Smith, Vice Chairman; Zellinsky, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benson; Constantine; DeBolt; Keiser; Sullivan and Wensman.

Staff:  Charlie Gavigan (786-7340).

Background:   Mutual savings banks are limited by law to spending no more than 3 percent of average assets in any calendar year on operation and management expenses; the  limitation for smaller mutual savings banks, with under $500 million in deposits, is 6 percent of average assets.

Summary of Bill:  The statutory limitation regarding the operation and management expenses of mutual savings banks is repealed.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This bill removes an obsolete statute.

Testimony Against:  None.

Testified:  Senator Shirley Winsley, prime sponsor; and Lyle Jacobsen, Washington Savings League (supports).