S-2029.1                   _______________________________________________

                                            SUBSTITUTE SENATE BILL 5796

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State of Washington                              53rd Legislature                             1993 Regular Session

By Senate Committee on Labor & Commerce (originally sponsored by Senators Moore and Pelz)

Read first time 03/02/93.

Prohibiting sellers of securities from charging customers due to a low number of transactions in an account or for transferring an account.

          AN ACT Relating to securities; adding a new section to chapter 21.20 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 21.20 RCW to read as follows:

          (1) Except as provided under subsection (2) of this section, it is unlawful for a broker-dealer, salesperson, investment adviser, or investment adviser salesperson to:

          (a) Charge a customer a fee based on the lack of or low number of transactions in a customer's account; or

          (b) Charge a customer a fee for transferring securities or closing or transferring an account.

          (2) A broker-dealer, salesperson, investment adviser, or investment adviser salesperson may impose a fee specified in subsection (1) of this section if the customer has previously signed a separate document that authorizes that fee, including the dollar amount, to be charged.  The separate document shall contain a disclosure in at least ten point type that contains the following or substantially similar language:  "Your authorization is necessary for the following fees to be charged.  If you do not sign this authorization, state law prohibits these fees."

NEW SECTION. Sec. 2.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

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