SENATE BILL REPORT

                            HB 1865

  AS REPORTED BY COMMITTEE ON LABOR & COMMERCE, APRIL 2, 1993

Brief Description:  Preventing check cashers and sellers from operating without a license.

SPONSORS: Representatives Mielke, Kremen, Zellinsky, Dorn, R. Meyers, Schmidt, Tate and Dellwo

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

SENATE COMMITTEE ON LABOR & COMMERCE

Majority Report:  Do pass. 

     Signed by Senators Moore, Chairman; Prentice, Vice Chairman; Amondson, Fraser, McAuliffe, Pelz, Sutherland, and Vognild.

Staff:  Benson Porter (786‑7470)

Hearing Dates: April 2, 1993

BACKGROUND:

In 1991, the Legislature adopted a comprehensive licensing statute for persons and organizations engaged in the business of cashing and selling checks.  Under the act, the Supervisor of Banking was granted authority to issue a cease and desist order to check cashers and sellers who violate the act.  The statute, however, limits this power to persons and organizations who already maintain the required license.  If a person or organization fails to obtain the necessary license, the Office of the Attorney General must bring a Consumer Protection Act claim against the offending person or organization.  The concern has been expressed that bringing such an action is a time consuming and expensive process for the enforcement of state licensing requirements.

SUMMARY:

The Supervisor of Banking may issue cease and desist orders or take other enforcement actions against any check casher or seller who is operating without the appropriate state license.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:  None

TESTIMONY AGAINST:  None

TESTIFIED:  No one