HOUSE BILL REPORT

                  HB 2144

                    As Passed Legislature

Title:  An act relating to the insurance commissioner's designated depositary.

Brief Description:  Designating depositaries.

Sponsors:  Representatives Smith, L. Thomas, Wolfe, Sullivan, Wensman and Anderson.

Brief History:

Committee Activity:

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

Floor Activity:

Passed House:  2/2/98, 97-0.

Passed Legislature.

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 9 members:  Representatives L. Thomas, Chairman; Smith, Vice Chairman; Zellinsky, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benson; DeBolt; Keiser and Wensman.

Minority Report:  Without recommendation.  Signed by 2 members:  Representatives Constantine and Sullivan.

Staff:  Charlie Gavigan (786-7340).

Background:  The insurance commissioner may designate any solvent trust company or financial institution domiciled in Washington State as a depositary to hold deposits of securities for the commissioner.  All funds deposited must be insured by the Federal Deposit Insurance Corporation.

Summary of Bill:  Solvent financial institution means any national or state-chartered bank or trust company, savings bank, or branches of these institutions.  The financial institution need not be domiciled in Washington State, but must have trust powers in Washington.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This bill allows an out-of-state bank with a Washington branch to be a depositary for the insurance commissioner.  It updates the insurance code to be consistent with interstate branching.

Testimony Against:  None.

Testified:  Meara Nisbet, Washington Bankers Association (supports).