HOUSE BILL REPORT

                  HB 1400

                    As Passed Legislature

Title:  An act relating to the bank statement rule.

Brief Description:  Removing a termination date in the bank statement rule.

Sponsors:  By House Committee on Financial Institutions & Insurance (originally sponsored by  Representatives Benson, L. Thomas, Wolfe, Zellinsky, Sheahan and Appelwick).

Brief History:

Committee Activity:

Financial Institutions & Insurance:  2/3/97, 2/6/97 [DP].

Floor Activity:

Passed House:  2/21/97, 95‑0.

Passed Legislature.

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:  In 1993, Uniform Commercial Code Articles 3 and 4 were substantially revised in accordance with recommendations of the National Conference of Commissioners on Uniform State Laws.  One of the provisions in Article 4 relates to information that must be provided on a bank statement of account.  A financial institution must either:  (1) provide the item paid or a copy of the item; or (2) provide information on the statement sufficient to allow the customer to reasonably define the item paid.  Until January 1, 1998, the statement provides sufficient information if it provides the check number, amount, date of payment, and a phone number the customer may call to request a copy of the check.

Summary of Bill:  After January 1, 1998, a bank statement of account provides sufficient information, as it does now, if it provides the check number, amount, the date of payment, and a phone number the customer may call to request a copy of the check.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This bill continues the current practice of allowing financial institutions to either send all checks paid to the customer or provide a detailed statement of account and provide copies of checks upon request, and eliminates the legal uncertainty that would result after January 1, 1998.

Testimony Against:  None.

Testified:  Stacey Augustine, The Washington Credit Union League (supports); and Gary Gardner, Boeing Credit Union (supports).