HOUSE BILL REPORT

SHB 476

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Lux, Chandler and P. King) 

Revising regulations for banks and banking activities.

House Committe on Financial Institutions & Insurance

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (13)

     Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Day, Dellwo, Ferguson, P. King, Meyers, Niemi, Nutley, Silver and Winsley.

House Staff:John Conniff (786-7119)

AS PASSED HOUSE MARCH 16, 1987

BACKGROUND:

In 1981, in response to loss of deposits by financial institutions to money market mutual funds as a result of federal limitations on interest rates for savings accounts, the legislature authorized all state financial institutions to pay interest on deposit accounts. The federal limitations have since been removed and financial institutions are federally authorized to pay interest on deposit accounts without limitation as to interest paid on such accounts.

SUMMARY:

Directors of banks are no longer required to meet at least monthly but must meet at least quarterly.

Technical amendments are made to the bank code to conform with the interstate banking provisions adopted in 1985.

EFFECT OF SENATE AMENDMENT(S):  The State Land Bank Act is substantially expanded to grant the supervisor of banking broad regulatory authority to examine and monitor the bank for solvency.  These provisions parallel the regulatory powers of the supervisor in overseeing state banks.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.

VOTE ON FINAL PASSAGE:

     Yeas 94; Nays 1; Excused 3

Voting Nay:     Representative Locke

Excused:   Representatives Allen, Pruitt and C. Smith