H-4141              _______________________________________________

                                                   HOUSE BILL NO. 1999

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representative Addison

Read first time 1/24/86 and referred to Committee on State Government.

AN ACT Relating to interest on unpaid public contracts; amending RCW 39.76.010 and 39.76.020; and creating a new section.

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

        Sec. 1.  Section 1, chapter 68, Laws of 1981 and RCW 39.76.010 are each amended to read as follows:

          (1) Except as provided in ((RCW 39.76.020)) this chapter, every state agency and unit of local government shall pay interest at the rate of one percent per month, but at least one dollar per month, on amounts due on ((written)) contracts for public works, personal services, goods and services, equipment, and travel, whenever the state agency or unit of local government fails to make timely payment.

          (2) For purposes of this section, payment shall be considered timely if:

          (a) A check or warrant is mailed or is available on the date specified for the amount specified in the applicable contract documents, if any, or, if no date is specified, within thirty days of receipt of a properly completed invoice or receipt of goods or services, whichever is later.

          (b) For any amount which is required to be withheld under state or federal law, a check or warrant is mailed or is available in the proper amount on the date the amount may be released under the applicable law.

(3) Agencies shall pay the interest amount required under this section along with and as part of the contract debt.  Agencies shall not require, as a precondition for payment of the interest, that demand for payment be made by the party to whom the interest is owed.

        Sec. 2.  Section 2, chapter 68, Laws of 1981 and RCW 39.76.020 are each amended to read as follows:

          RCW 39.76.010 does not apply to the following:

          (1) Interagency or intergovernmental transactions;

          (2) Amounts payable to employees or prospective employees of state agencies or local governmental units as reimbursement for expenses;

          (3) Belated claims for any time of delinquency after July 31 following the second year of the fiscal biennium;

          (4) Claims subject to a good faith dispute, when before the date of timely payment, notice of the dispute is:

          (a) Sent by certified mail;

          (b) Personally delivered; or

          (c) Sent in accordance with procedures in the contract;

          (5) Delinquencies due to natural disasters, disruptions in postal or delivery service, work stoppages due to labor disputes, power failures, or any other cause resulting from circumstances clearly beyond the control of the unit of local government or state agency;

          (6) Contracts entered before July 26, 1981; ((and))

          (7) Payment from any retirement system listed in RCW 41.50.030 and chapter 41.24 RCW; and

(8) Any fees and medical charges to which RCW 51.36.080 applies.

NEW SECTION. Sec. 3.     This act applies only to contracts entered into after the effective date of this act.