SENATE BILL REPORT

SB 6412

BYSenators von Reichbauer and Moore

Providing for the publication of the maximum interest rate that may be charged on retail installment contracts for the purchase of motor vehicles.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):January 29, 1988; February 2, 1988

Majority Report:  Do pass.

      Signed by Senators von Reichbauer, Chairman; West, Vice Chairman; Moore, Rasmussen, Sellar, Smitherman.

Senate Staff:Benson Porter (786-7470)

                  February 16, 1988

AS PASSED SENATE, FEBRUARY 16, 1988

BACKGROUND:

The State Treasurer is required to compute the maximum service charge allowed under a retail installment contract for personal property and submit this rate to the Code Reviser for publication in the Washington State Register for each calendar year.

During the 1987 session, a bill passed describing the computation of the service charge for a retail installment contract for the purchase of a motor vehicle.  However, the publication of this rate is not provided for in the retail installment contract rate publication statute.

SUMMARY:

The State Treasurer is required to compute the maximum charge for a motor vehicle retail installment contract on a quarterly basis and submit this rate to the Code Reviser for publication in the Washington State Register.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Steve Mullen, Washington Auto Dealers Association (for)