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Show Wednesday, January 12, 1977 supplement to the National Enterprise Bill Will Curb Utahs Bad Check Mate Four pieces of legislation to be introduced by Sen. Richard Carling aim to reduce the volume of bad checks written in Utah. According to security personnel of several inter- states. For instance, of the four states in which Grand Central operates, Utah generated over 60 percent of returned checks processed by the store between August and November last year. Nevada generated only 15 percent; Idaho 21 percent and Wyoming 1.5 percent. Utahs bad check rate state grocery and retail stores, Utahns sign substantially more bad checks than do residents of surrounding h perduring that iod was even lower than usual, notes a security officer, since, in August, the store began subscribing to the local credit bureaus four-mont- Checkfax service. This ser- vice has practically cut k rate in Utahs half, the officer claims. The Salt Lake Clearing bad-chec- Utah Jobless Rate Below National Average UTAH AND PERCENT OF LABOR FORCE UNEMPLOYED Local labor market analysts do not expect the rate to drop much further during 1977 because higher levels of unemployment elsewhere in the nation will encourage more job seekers to immigrate to Utah. Also, they say, previously discouraged job hunters will be entering the labor market again because of a more inviting business climate. Job Service forecasts 23,000 new jobs will be created in the state during 1977, reflecting a more rapid growth rate than in 1976. U.S. UNEMPLOYMENT RATE (SEASONALLY ADJUSTED $205 million during 1976, estimates Fred Eberhard, director of the Clearing House. During December alone the institution processed $23.6 million in bad checks. Reasons for returning these checks vary, Eberhard said, from lack of endorsement or missing signature to insufficient funds. The aim of Carlings proposed legislation is to reduce the number of checks returned due to insufficient funds. As the law is now k writer written, a could be prosecuted in civil court only if the check is written for over $1,000. In Senate Bill 74, Carling proposes to lower that figure to $250.00, making the action a Class A misdemeanor. Writing a bad check for over $1,000 would be a second degree felony. In addition to lowering the figure liable for prosecution, Senate Bill 74 could extend liability of prosecution to more people, including those who write checks bad-chec- by Mary McMillan Gaber Utah's unemployment rate fell in December for the second consecutive month, down to 5.6 percent. Reflecting steady job growth among the states employers as well as a decline in the number of people filing claims for unemployment insurance, the rate is more than two percentage points below the December figure for the nation. Job Service estimated 8,000 newcomers migrated into Utah from outside the state during 1976, and about half of the immigrants found jobs. House processed bad checks amounting to over $800,000 per day, or approximately UTAH- - U.S.- - for money they dont have in their accounts. Now the law presumes that a person writing checks against a closed account intends to defraud. The proposed bill would assume the person writing checks against insufficient funds also intends to defraud, Carling explains. Easier Prosecution Another of Carlings bills aims to make it easier to prosecute for fraudulent use A third of credit cards. allows the State to prosecute the person signing a corporate check, rather than suing the corporation. A fourth bill, and probably the most controversial of the lot, proposes to allow merchants to prosecute , writers of bad' checks in criminal court as well as in civil court. This bill has not yet been numbered by the Senate. The controversial measure in the proposed law allows prosecutors to assume that if a check is returned by a bank stamped insufficient (See BILL, page 5b) Insurance Firms Oppose Legislation A Utah State Senate bill designed to give the Utah Insurance fttirwari ky Natiiui lama if Ecaaaaiie lutarck. Siarce: Utah Department if Enployment Sccarity Car Sales Continue Downward Slide Sales of foreign cars Domestic car sales deNovfollowed a similar trend. clined in Utah during conAfter reaching a record for ember for the second secutive month, according to the year of 1631 sales in figures compiled by the Utah September, foreign sales Automobile Dealers Associa- diminished by 18.2 percent in October and took a 41.7 tion. After reaching a high for percent dive in November, the year in September of 4155 sales, domestic car sales dipped by nearly 40 percent to 2743 in October and 2071 in November. The November figure is the second lowest of the year. Toyota (216), Pontiac (172) and Buick (160). See chart. Domnlic Can Sold I'lah 1976 Can Sold settling at a low of 777 sales, the bottom figure for the year. The five best-sellin- g cars in November were Chevrolet (617), Ford (346), Continued on page 3b ' (According to Utah Automobile Dralcn Association) Commission accessability to valuable insurance company reserve holdings is expected to meet resistance from various Utah insurance companies. Senate Bill 10 would give the insurance commission a lien on insurance company stocks and secured investments (not a popular idea with some companies) to cover all debts incurred by the company should it become insolvent and unable to pay claims. The bill applies insurance only to non-lif- e comand asks that policies panies give the Utah Insurance Commission access to prescribed stock investment notes at the equivilent value of 75 percent of premiums written by the company during the previous year. State representatives Wilford Black and Douglas Sonntag drafted and spon sored the bill after the Guarantee Trust Association Act was determined unconstitutional in Third District Court Under the last August. Guarantee Act, insurance companies operating in Utah were required to pool a prescribed amount of money to supplement companies that became insolvent. Judge Marcellus K. Snow said the Act was penalizing good companies by making them responsible for companies not managed properly and without adequate financial backing. That case has been appealed to the Utah Supreme Court. Sontag said that about 250 Utahns were left with unpaid claims during the past two years. The representative listed five companies that became insolvent in 1974 and 1975. Under the old Guarantee Act, some claims were paid by reserves (See FIRMS, page 4b) |