BILL REQ. #:  S-4472.1 

Read first time 01/25/08.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to assisting small business owners by capping the credit card transaction fee paid by such owners; and adding a new chapter to Title 19 RCW.

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

NEW SECTION.  Sec. 1   (1) A fee charged by a financial institution for the processing of a credit card transaction to a small business owner must be set at a percentage rate of no higher than the rate established in subsection (2) of this section.
     (2) By no later than January 2, 2009, the department of financial institutions must negotiate, on behalf of small business owners licensed within Washington state, a written agreement limiting the maximum transaction fee that financial institutions doing business with small business owners licensed in this state may charge such business owners for the processing of a credit card transaction.
     (a) The agreement must include a maximum percentage rate, as provided in (b) of this subsection (2), that financial institutions may charge small business owners licensed in the state of Washington.
     (b) The department of financial institutions must negotiate a maximum percentage rate that is no higher than the maximum percentage rate that is allowed to be charged to state agencies by financial institutions for the processing of similar credit card transactions. For the purposes of this subsection (2)(b), the department of general administration must notify the department of financial institutions of the maximum percentage rate that financial institutions are allowed to charge state agencies as of the effective date of this act, and annually every year thereafter.
     (c) The percentage rate established by agreement under this section must be adjusted annually to reflect any changes in the credit card transaction fee percentage rate charged to state agencies, as reported to the department of financial institutions by the department of general administration under subsection (2)(b) of this section.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Small business owner" has the same meaning as provided in RCW 19.85.020.
     (2) "Financial institution" has the same meaning as provided in RCW 31.45.010.

NEW SECTION.  Sec. 3   Sections 1 and 2 of this act constitute a new chapter in Title 19 RCW.