Measure Would Restrict Fees Charged for Bounced Checks

Bank fees for bounced checks charged to consumers and businesses would be severely limited under legislation introduced in the state Assembly.

Assemblywoman Jackie Speier (D-South San Francisco), the author of the bill (AB 938), accused banks of charging more money than necessary for the actual cost of processing bad checks.

“An unintentional mistake in balancing your account can cause devastating bounced-check fees,” Speier said.

In 1989, Bank of America collected $489 million in bad-check charges, Security Pacific $391 million and Wells Fargo $246 million, she said.

Her bill would set a $1.50 maximum fee to the writer of a bounced check and $1 to the depositor of a bounced check. Some banks charge depositors and check writers $10 or more, arguing they must charge more to prevent excessive bounced checks.

Speier’s measure also is supported by the California Grocers Assn., which represents markets, which frequently receive bad checks.

ASSEMBLY

Bill Introductions

* Desalinated Water: AB 1013 by Assemblyman Steve Peace (D-La Mesa) would require the Department of Water Resources to prepare a plan to encourage the development of desalination facilities. The plan would be submitted to the governor and the Legislature before Jan. 1, 1994.

* Transportation Plan: AB 1020 by Assemblywoman Doris Allen (R-Cypress) would create a Commission on California Transportation Directions to develop a strategic plan for transportation through 2010.

* Bullet-Proof Vests: AB 1076 by Assemblyman Lloyd Connelly (D-Sacramento) would add three to five years to the prison terms of criminals convicted of felonies while wearing bullet-proof vests or other body armor. New York and New Jersey already have similar laws.

* Voter Registration: AB 997 by Assemblyman Xavier Becerra (D-Monterey Park) would require high school civics classes to provide students 18 and older with an opportunity to register to vote.

* Operation Desert Storm: AJR 23 by Assemblyman Gil Ferguson (R-Newport Beach) commends President Bush, the men and women of the U.S. armed forces and America’s allies for contributions to the liberation of Kuwait.

* High-Speed Train: ACR 27 by Assemblyman Jim Costa (D-Fresno) asks the Department of Transportation to study the feasibility of a high-speed train link between Los Angeles and Bakersfield.

SENATE

Bill Introductions

* Worker Literacy: SB 647 by Sen. Ralph Dills (D-Gardena) would require private employers with 25 or more workers to assist employees who request aid in enrolling in adult literacy education programs.

* Housing Bonds: SB 593 by President Pro Tem David A. Roberti (D-Los Angeles) would authorize a $500-million housing bond issue to be placed on the June, 1992, primary election ballot.

* Death Penalty: SB 584 by Sen. Art Torres (D-Los Angeles) would require the death penalty or life imprisonment without possibility of parole as the punishment for a first-degree murder conviction.

* Initiatives: SB 607-609 by Sen. Gary Hart (D-Santa Barbara) would require initiative petitions to include short pro and con arguements so people would have a better understanding of what they are signing. It also would require the secretary of state to produce a clearer and more inclusive ballot pamphlet and place a $50,000 cap on contributions to initiatives to prevent wealthy interests from dominating the process.

* More Initiatives: SCA 16 by Sen. Hart would establish an indirect initiative to supplement the initiative process. Indirect initiatives would be easier to qualify for the ballot, but would be submitted first to the Legislature for review and a vote.

* Campaign Contributions: SB 582 by Sen. Ken Maddy (R-Fresno) would limit campaign contributions to $1,000 from an individual and $2,500 from a political action committee per election. A federal court threw out similar limits in Proposition 73 because they were applied per fiscal year.

* Child Care: SB 583 by Sen. Torres would require the superintendent of public instruction to develop a state plan for the expansion of child care and development services and submit it to the Legislature and the governor by July, 1992.

* Homeless Veterans: SB 591 by Sen. Charles Calderon (D-Whittier) would require the Department of Veterans Affairs to study and report to the Legislature before Jan. 1, 1993, on the creation of a coordinated program to help homeless veterans.

Miscellaneous

* Earthquake Damage: Making state bridges, overpasses and elevated highways earthquake safe could cost as much as $3.4 billion. The estimate, issued this week by the state Department of Transportation, does not include toll spans such as the San Francisco-Oakland Bay Bridge, part of which fell during the Oct. 17, 1989, Loma Prieta earthquake. Two state legislators Wednesday proposed letting the state borrow against expected gasoline tax revenues eight years in the future so that seismic repairs won’t delay other highway projects. “The earthquake program will not suffer a delay, even without this legislation,” said Assemblyman Richard Katz (D-Sylmar), chairman of the Assembly Transportation Committee. “Without this legislation, there will be funding for the earthquake program but everything else will be delayed.”

Capital Fact

The official state rock is serpentine.