HB 1270 -
By Senator Berkey
OUT OF ORDER 04/12/2007
On page 2, after line 29, insert the following:
"NEW SECTION. Sec. 2 A new section is added to chapter 30.04 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent.
NEW SECTION. Sec. 3 A new section is added to chapter 31.04 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent.
NEW SECTION. Sec. 4 A new section is added to chapter 31.12 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent.
NEW SECTION. Sec. 5 A new section is added to chapter 31.45 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent.
NEW SECTION. Sec. 6 A new section is added to chapter 32.08 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent.
NEW SECTION. Sec. 7 A new section is added to chapter 33.12 RCW
to read as follows:
(1) A creditor, as defined in 10 U.S.C. Sec. 987(i)(5) as it exists
on April 1, 2007 may consider whether any person is a covered member or
dependent, as defined in 10 U.S.C. Sec. 987(i)(1) and (2) as each
exists on April 1, 2007, in connection with an application for or an
extension of consumer credit, as defined in 10 U.S.C. Sec. 987(i)(6) as
it exists on April 1, 2007.
(2) Notwithstanding any other provision of law, it shall not be an
unfair practice or a denial of civil rights for a creditor, as defined
in 10 U.S.C. Sec. 987(i)(5) as it exists on April 1, 2007, to refuse to
offer, to deny, to offer different terms and conditions, or to
otherwise place restrictions upon an extension of consumer credit, as
defined in 10 U.S.C. Sec. 987(i)(6) as it exists on April 1, 2007,
offered to or entered into with a covered member or dependent because
such person is a covered member or dependent, as defined in 10 U.S.C.
Sec. 987(i)(1) and (2) as each exists on April 1, 2007. Nothing in
this subsection permits any such creditor to refuse to offer, to deny,
to offer different terms and conditions, or to otherwise place
restrictions upon an extension of consumer credit, to a covered member
or dependent, based upon status protected by chapter 49.60 RCW other
than the honorably discharged veteran or military status of the covered
member or dependent."
HB 1270 -
By Senator Berkey
OUT OF ORDER 04/12/2007
On page 1, line 1 of the title, after "Relating to the" strike the remainder of the title and insert "extension of credit; amending RCW 31.04.125; adding a new section to chapter 30.04 RCW; adding a new section to chapter 31.04 RCW; adding a new section to chapter 31.12 RCW; adding a new section to chapter 31.45 RCW; adding a new section to chapter 32.08 RCW; and adding a new section to chapter 33.12 RCW."
EFFECT: The John Warner National Defense Authorization Act for
Fiscal Year 2007 and the Talent Amendment thereto (10 U.S.C. Sec. 987)
prohibit creditors from imposing an annual percentage rate of interest
greater than 36% with respect to consumer credit extended to active
duty service members and their dependents.
Using the definitions from this federal act, this amendment:
(1) Allows creditors to consider an applicant's military status in
connection with an application for consumer credit; and
(2) Allows creditors to refuse, deny, or restrict consumer credit
to active duty service members and their dependents without violating
laws concerning unfair practices or civil rights.
The creditors covered by this amendment are those licensed as
banks, trust companies, credit unions, check cashers and sellers,
mutual savings banks, savings and loan associations, and those doing
business under the Consumer Loan Act.