SENATE BILL REPORT

                  SHB 2410

              As Reported By Senate Committee On:

Commerce, Trade, Housing & Financial Institutions, February 24, 2000

Title:  An act relating to credit cards.

Brief Description:  Protecting credit card users.

Sponsors:  House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lovick, Bush, McIntire, O'Brien, Keiser, Edwards, Reardon, Haigh, Schual‑Berke, Scott, Stensen, Rockefeller, Kenney, Thomas, Morris, Wood, Regala, Hurst, Ogden, Ruderman and Kagi).

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  2/22/2000, 2/24/2000 [DP].

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Majority Report:  Do pass.

  Signed by Senators Prentice, Chair; Shin, Vice Chair; Benton, Deccio, Gardner, Hale, Heavey, Rasmussen, T. Sheldon, West and Winsley.

Staff:  Dave Cheal (786-7576)

Background:  Credit is regulated by both state and federal law.  Except for the Retail Sales Installment Act, there are few state statutes that specifically regulate credit cards.  State statutes that regulate credit in general may apply to credit cards, such as consumer protection provisions.

There are several federal provisions that regulate credit cards.  For instance, federal law requires that credit card lenders provide certain disclosures to consumers and follow certain requirements when changing contract terms, and provide protection for consumers whose cards are lost or stolen.  The federal statutes on credit cards generally do not preempt state laws on credit cards unless the state laws provide less consumer protection or unless they specifically contradict federal law.

Summary of Bill:  A merchant cannot list more than the last five digits of the credit card account number or print the credit card expiration date on an electronically printed credit card receipt.  Machines placed in service prior to July 1, 2001, have until July 1, 2004, to comply with this provision.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  July 1, 2001.

Testimony For:  Enactment of this bill will give consumers significant protection against unauthorized use of their credit cards.  Implementation will be made easier by the phase in period provided by the bill.  California has enacted a similar law.

Testimony Against:  None.

Testified:  Rep. John Lovick; Pam Eaton, WA Retail Assn (pro).