BILL REQ. #:  S-4422.1 

Read first time 01/22/08.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to refund anticipation loans; and amending RCW 19.265.010 and 19.265.020.

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

Sec. 1   RCW 19.265.010 and 2005 c 471 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Borrower" means a taxpayer who receives the proceeds of a refund anticipation loan.
     (2) "Department" means the department of financial institutions.
     (3) "Director" means the director of the department of financial institutions.
     (4) "Facilitator" means a person who receives or accepts for delivery an application for a refund anticipation loan, delivers a check in payment of refund anticipation loan proceeds, or in any other manner acts to allow the making of a refund anticipation loan. "Facilitator" does not include a bank, thrift, savings association, industrial bank, or credit union, operating under the laws of the United States or this state, an affiliate that is a servicer for such an entity, any retailer who acts only as a distributor and collector of information or materials for a facilitator, or any person who acts solely as an intermediary and does not deal with a taxpayer in the making of the refund anticipation loan.
     (5) "Lender" means a person who extends credit to a borrower in the form of a refund anticipation loan.
     (6) "Person" means an individual, a firm, a partnership, an association, a corporation, or other entity.
     (7) "Refund anticipation loan" means a loan borrowed by a taxpayer from a lender based on the taxpayer's anticipated federal income tax refund.
     (8) "Refund anticipation loan fee" means the charges, fees, or other consideration imposed by the lender for a refund anticipation loan. This term does not include any charge, fee, or other consideration usually imposed by the facilitator in the ordinary course of business for nonloan services, such as fees for tax return preparation and fees for electronic filing of tax returns.
     (9) "Refund anticipation loan fee schedule" means a listing or table of refund anticipation loan fees charged by the facilitator or the lender for three or more representative refund anticipation loan amounts. The schedule shall list separately each fee or charge imposed, as well as a total of all fees imposed, related to the making of refund anticipation loans. The schedule shall also include, for each representative loan amount, the estimated annual percentage rate calculated under the guidelines established by the federal truth in lending act, 15 U.S.C. Sec. 1601 et seq.
     (10) "Taxpayer" means an individual who files a federal income tax return.

Sec. 2   RCW 19.265.020 and 2005 c 471 s 3 are each amended to read as follows:
     (1) No person may individually, or in conjunction or cooperation with another person act as a facilitator unless that person is:
     (a) A tax preparer or works for a person that engages in the business of tax preparation;
     (b) Accepted by the internal revenue service as an authorized IRS e-file provider; and
     (c) Registered with the department as a facilitator. The director may prescribe the registration form.
     (2) A person is registered as a facilitator by providing the department, on or before December 31st of each year with:
     (a) A list of authorized IRS e-file providers in the state of Washington for the current tax filing year; and
     (b) A thirty-five dollar processing fee for each authorized e-file provider on the list.
     (3)(a) A person registered as a facilitator must establish policies and procedures to ensure a retailer who is acting as a distributor and collector of information or materials:
     (i) Appropriately safeguards and protects an applicant's personal private financial information; and
     (ii) Acts solely in a clerical role and does not provide any counseling regarding refund anticipation loan products.
     (b) The director may adopt rules necessary to implement this subsection.
     (4) After the December 31st deadline, a facilitator may amend the registration required in subsection (2) of this section to reflect additions or deletions of office locations or e-file providers authorized by the internal revenue service.
     (((4))) (5) The department shall make available to the public a list of all facilitators registered under this section.
     (((5))) (6) This section does not apply to a person doing business as a bank, thrift, savings association, industrial bank, or credit union, operating under the laws of the United States or this state, an affiliate that is a servicer for such an entity, or any person who acts solely as an intermediary and does not deal with a taxpayer in the making of the refund anticipation loan.
     (((6))) (7) This chapter shall preempt and be exclusive of all local acts, statutes, ordinances, and regulations relating to refund anticipation loans. This subsection shall be given retroactive and prospective effect.