SB 6285 - DIGEST

(DIGEST AS ENACTED)

     Strengthens the regulation, supervision, and examination of business entities furnishing financial services to the people of the state.

     Streamlines and focuses regulation to reduce costs, increase effectiveness, and foster efficiency by eliminating requirements that are not necessary for the protection of the public.

     Does not restrict the ability of the director of financial institutions to implement prudent regulation, to prevent fraudulent practices, and to undertake necessary enforcement actions to protect the public and promote the public interest.

VETO MESSAGE ON SB 6285

                   April 1, 1994

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval as to section 50, Senate Bill No. 6285 entitled:

"AN ACT Relating to the strengthening and reform of the regulation of financial institutions and securities;"

     This is excellent legislation designed to simplify the regulation of financial institutions and securities while maintaining effective regulation to safeguard the state's financial markets.  It is another effort by the state to reform the regulatory structure to reduce paperwork and unnecessary costs for the state's businesses while continuing to safeguard the public and the solvency of financial institutions.

     Section 50 would eliminate an existing requirement for banks to publish statements of condition three times a year in local newspapers.  The section is intended to reduce the costs of such publication for commercial banks.  Statements of condition are prepared three times a year and are available from state-chartered banks and from the Department of Financial Institutions.

     However, the current statute protects the public right to know the status of state-chartered institutions without requiring the public to go to extra lengths to seek such information.  As such, it is a worthwhile requirement and should be maintained.  Therefore, I am vetoing section 50 of Senate Bill No. 6285.

     With the exception of section 50, Senate Bill No. 6285 is approved.

                   Respectfully submitted,

                   Mike Lowry

                   Governor