[atlas:bill]

AN ACT Relating to licensing and regulating money transmitters and currency exchangers; creating new sections; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that it is important for the state to establish a system of licensure and regulation to ensure the safe and sound operation of money transmission and currency exchange businesses, to ensure that these businesses are not used for criminal purposes, to promote confidence in the state's financial system, and to protect the public interest. The legislature also finds that the creation of an effective regulatory scheme will require careful consideration of the current practices of small community-based money transmission or currency exchange businesses, the role such businesses play in local communities, as well as an assessment of the needs and practices of corporate financial institutions. To achieve these ends in a manner that both serves the general public interest and that is sensitive to the needs of smaller communities, the legislature intends to study current business practices regarding both money transmission and currency exchange in this state, and examine pertinent regulatory schemes and policies in other jurisdictions.

NEW SECTION. Sec. 2. (1) A joint legislative task force on licensing and regulating money transmitters and currency exchangers is established. The joint task force shall consist of ten members of the legislature appointed by the speaker of the house of representatives and the president of the senate as follows:

(a) Three members from the majority caucus and two members from the minority caucus of the house of representatives, with at least one member from each caucus being a member of the house financial institutions and insurance committee; and

(b) Three members from the majority caucus and two members from the minority caucus of the senate, with at least one member from each caucus being a member of the senate labor, commerce and financial institutions committee.

(2) The joint task force shall, when necessary, receive technical assistance from the department of financial institutions, and the department shall make staff available for this purpose. The department shall cooperate with the task force, maintain a liaison representative who is a nonvoting member, and provide appropriate technical or other assistance to small businesses or local, immigrant, or ethnic communities to comply with federal registration requirements dealing with money transmitters and currency exchangers.

(3) The joint task force may, when necessary, consult with individuals from the public and private sector or ask such persons to establish an advisory committee.

(4) The staff of senate committee services and the office of program research of the house of representatives shall provide administrative and clerical assistance to the joint task force.

NEW SECTION. Sec. 3. The joint task force shall review, but not be limited to, the following issues:

(1) Make recommendations for a system of licensure that is in compliance with federal laws and regulations, and that is responsive to the particular statutory framework of licensure for other money service industries in Washington state;

(2) Identify the barriers to licensing, either directly or as an affiliate, that may exist for small community-based businesses or local, immigrant, or ethnic communities which may not typically use traditional financial depository institutions;

(3) Identify how money transmission and currency exchange licensing regulations in other states have affected small community-based businesses or local, immigrant, or ethnic communities which may not typically use traditional financial depository institutions in those states, and how other states have addressed issues around technical assistance and access to traditional financial institutions that these businesses and communities face; and

(4) Recommend implementation of a regulatory scheme that will minimize adverse impact on small community-based businesses or local, immigrant, or ethnic communities that may not typically use traditional financial depository institutions, and that will minimize disruption to the legitimate purposes for which money transmission and currency exchange services currently operate in these communities.

NEW SECTION. Sec. 4. The joint task force shall meet as and when it sees fit in order to properly carry out the functions and duties set forth in this act.

NEW SECTION. Sec. 5. All expenses of the joint task force, including travel, shall be paid jointly by the senate and the house of representatives.

NEW SECTION. Sec. 6. The joint task force shall report its findings and recommendations to the legislature by December 1, 2002.

NEW SECTION. Sec. 7. This act expires July 1, 2003.