SENATE BILL REPORT

SSB 6371

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Moore, Johnson, McMullen, West, McCaslin, Rasmussen, Sellar, Niemi and Conner)

Creating the department of financial institutions.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):January 11, 1990; January 26, 1990; February 2, 1990

Majority Report:  That Substitute Senate Bill No. 6371 be substituted therefor, and the substitute bill do pass.

      Signed by Senators von Reichbauer, Chairman; Fleming, McCaslin, McMullen, Moore, Rasmussen, Sellar, Smitherman.

Senate Staff:Benson Porter (786-7470)

                  February 13, 1990

AS PASSED SENATE, FEBRUARY 8, 1990

BACKGROUND:

State-chartered financial institutions and securities activities are regulated by two separate state agencies.  The Division of Banking and the Division of Savings and Loan within the Department of General Administration regulate state-chartered financial institutions.  Securities activities are overseen by the Securities Division within the Department of Licensing.

The Division of Banking charters, examines, and regulates various state-chartered depository institutions including commercial banks, savings banks, alien institutions, industrial loan companies, and consumer finance companies.  The Division of Savings and Loan charters, examines, and regulates state-chartered savings and loan associations and credit unions.  The Securities Division regulates various securities activities including the review and approval of securities registrations.

The regulation and maintenance of corporations are duties performed by the Secretary of State.  These duties primarily entail corporate filing requirements and other related activities.

SUMMARY:

A joint select committee comprised of the House and Senate Financial Institutions and Insurance Committees is created.  The committee is directed to review the costs and benefits associated with the consolidation of those state regulatory functions relating to financial institutions, corporations, securities, and other similar activities.

The committee is to report its findings to the Legislature by December 1, 1990.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Ralph Munro, Secretary of State