H-0991.2  _______________________________________________

                          HOUSE BILL 1431

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Dunshee, Radcliff, Wolfe and Ruderman

Read first time 01/25/1999.  Referred to Committee on Financial Institutions & Insurance.

Assisting customers of financial institutions with the year 2000 computer issue.

    AN ACT Relating to possible impacts of the year 2000 computer issue on financial accounts; creating a new section; providing an expiration date; and declaring an emergency.

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

NEW SECTION. Sec. 1.  (1) The legislature finds that financial institutions play a major role in the economy of this state and in the financial security and well-being of citizens of this state.  While financial institutions are making significant strides in reducing the likelihood of potential adverse impacts from the year 2000 computer issue, customers of these institutions likely will be concerned about potential adverse impacts and what records they should maintain to ensure their account balances are accurate should there be problems with records due to the year 2000 computer issue.

    (2) Every bank, savings bank, savings and loan, and credit union shall provide a written notice to all its customers with Washington addresses disclosing:

    (a) Whether the financial institution is considered year 2000 compliant by its regulating agency or, if no specific finding is made by its regulating agency, whether the financial institution has complied with all directives or recommendations by its regulating agency related to the year 2000 issue; and

    (b) What records, receipts, or other information its customers should keep so that should any year 2000 problems occur the customers can be sure their account balances will be correct after any year 2000  problems are resolved.

    (3) The notice required under subsection (2) of this section shall be mailed no later than November 1, 1999.

    (4) The department of financial institutions may provide technical assistance, model notices, or other assistance to financial institutions to comply with this section.

    (5) This section expires July 1, 2000.

NEW SECTION. Sec. 2.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

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