BILL REQ. #:  H-0991.1 

Read first time 01/25/11.   Referred to Committee on Business & Financial Services.

     AN ACT Relating to procedures for written business contracts; and adding a new chapter to Title 19 RCW.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Authorized business representative" means a natural person authorized to conduct business on behalf of a business entity, including a limited liability company, corporation, or nonprofit corporation, registered in Washington or another state.
     (2) "Business payment contract" means a written agreement between two or more parties in which at least one party is an authorized business representative who, as consideration for the agreement, promises to personally pay a sum of money to the other party or parties to the agreement.

NEW SECTION.  Sec. 2   Any business payment contract must contain the following for each authorized business representative who is a party to the agreement:
     (1) A separate signature line, directly following and on the same page as any other signature line or lines that the authorized business representative must sign to signal his or her acceptance of the agreement;
     (2) The signature line must be directly preceded on the same page by the phrase, "By signing this contract you, the undersigned, agree to become PERSONALLY LIABLE for any sums due pursuant to this document, regardless of whether you are signing on behalf of a limited liability company, corporation, or nonprofit corporation." The phrase must be written in bold, fourteen-point or larger font in clearly visible ink.

NEW SECTION.  Sec. 3   It is the duty of any party to the business payment contract other than an authorized business representative to ensure that the requirements of section 1 of this act are met.

NEW SECTION.  Sec. 4   A business payment contract between a party or parties and an authorized business representative found not to meet the requirements of section 1 of this act is voidable by the authorized business representative.

NEW SECTION.  Sec. 5   This chapter applies to business payment contracts executed on or after January 1, 2012.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 19 RCW.