SENATE BILL REPORT

EHB 1580

BYRepresentatives R. Fisher, McLean, Holland, Silver, H. Sommers, Anderson, Winsley, P. King and Betrozoff; by request of Office of Financial Management

Authorizing state agencies to report past due accounts receivable to credit reporting agencies.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 30, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Conner, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 30, 1989

BACKGROUND:

There is no general provision of law allowing state agencies to report past due accounts receivable to credit bureaus, in order to improve credit performance.  Federal regulations require institutions of higher education to report delinquent borrowers of student loans, which is reported to have increased the collection rate.

SUMMARY:

Any state agency may report past due accounts receivable to credit reporting agencies if the agency feels such reporting is cost-effective and does not violate confidentiality or legal requirements.

The Office of Financial Management is to study the costs and benefits of establishing a central file of persons owing substantial amounts to the state and providing that such individuals are identified before any state payments are made to them.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

State agencies must notify credit bureaus within 35 days after a debt has been satisfied.

Senate Committee - Testified: Bob Jacobs, OFM (pro)