FINAL BILL REPORT

                 EHB 1228

                          C 85 L 91

                     Synopsis As Enacted

Brief Description:  Managing state government receivables.

By Representatives Brumsickle, Wang, Holland and Paris; by request of Office of Financial Management.

House Committee on Revenue

Senate Committee on Ways & Means

Background:  State agencies have several tools for collecting debts owed to the state.  Such debts are commonly referred to as "receivables."  Several agencies, including the Department of Revenue (DOR), the Department of Social and Health Services (DSHS), and Employment Security (ES) may assess interest on debts paid late.  DOR charges interest at the rate of 9 percent per year on late payment of taxes, while DSHS and ES charge interest of 1 percent per month on their receivables.  These agencies often assess penalties in addition to the interest.  State agencies may also inform credit reporting agencies of receivables that are past-due when such reporting is cost-effective and does not violate confidentiality.

Summary:  Except as otherwise provided by statute, state agencies may assess interest at the rate of 1 percent per month on receivables, starting from the date the receivables are due.  State agencies may inform credit reporting agencies of debts owed to the state before such receivables are due. 

EHB 1228 applies only to debts that become due on or after the effective date of the bill.

Votes on Final Passage:

House  96   0

Senate 46   1

Effective:    July 28, 1991