SENATE BILL REPORT
ESHB 2637
AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 25, 1994
Brief Description: Developing a plan to increase collection of state‑held bad debt.
SPONSORS: House Committee on State Government (originally sponsored by Representatives Karahalios, Reams, Foreman, Kessler, Roland, Brough, Zellinsky, B. Thomas, Linville, Eide, Springer, G. Fisher, R. Johnson, Finkbeiner, Rayburn, Hansen, Mastin, Patterson, Brown, Chandler, Morris, Flemming, Forner, Wolfe, Campbell, Johanson, Quall, Horn, Romero, Schoesler, Moak, Fuhrman, Dyer, Wood, L. Thomas, Tate, Mielke, Backlund and Long)
HOUSE COMMITTEE ON STATE GOVERNMENT
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: Do pass.
Signed by Senators Rinehart, Chairman; Quigley, Vice Chairman; Anderson, Bauer, Cantu, Gaspard, Hargrove, Ludwig, McDonald, Moyer, Owen, Pelz, Snyder, Spanel, Sutherland, Talmadge, West and Wojahn.
Staff: Steve Jones (786‑7715)
Hearing Dates: February 24, 1994; February 25, 1994
BACKGROUND:
Agencies of state and local government are authorized to contract with licensed collection agencies to collect debt owed to the state or local government. A debt may be assigned to a collection agency only after an attempt has been made to notify the debtor.
SUMMARY:
The Office of Financial Management (OFM) is directed to develop a plan, involving the use of contracts with private collection agencies, to increase the collection of state debts where state employees have spent at least nine months trying to recover the debt. The plan may include the sale of state-held debt or the payment of a percentage of the receipts. The use of delinquency fees may also be considered. OFM shall submit its recommendations to the Legislature by October 15, 1994.
Appropriation: none
Revenue: none
Fiscal Note: available
TESTIMONY FOR:
The Office of Financial Management has been studying methods to increase collections of accounts receivable. OFM supports the legislation.
TESTIMONY AGAINST: None
TESTIFIED: Mike Cheney, Office of Financial Management