SENATE BILL REPORT

ESHB 2801

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Forner, Vekich, Smith, Cole, Walker, Bowman, Leonard, Prentice, Fuhrman, May, Brough, Ferguson, Betrozoff, Winsley, Chandler, Wolfe, Horn, Moyer, Brumsickle, Silver, Nealey, Youngsman, Miller and Wood)

Clarifying the definition of collection agencies.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 19, 1990

Majority Report:  Refer to Committee on Financial Institutions & Insurance with no recommendation.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Saling, Smitherman, Warnke, Williams.

Senate Staff:Forrest Bathurst (786-7429)

                  February 19, 1990

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 23, 1990

Majority Report:  Do pass as amended.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; McCaslin, McMullen, Moore, Rasmussen, Smitherman, West.

Senate Staff:Gerard S. Poliquin (786-7403)

                  February 28, 1990

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 23, 1990

BACKGROUND:

Collection agencies are currently regulated by the Department of Licensing.

There are no exceptions in the statutes for accountants or bookkeepers that provide limited month end billing services to clients.  Accountants and bookkeepers that mail month-end statement of accounts payable for clients may potentially be considered collection agencies under current statutes.

SUMMARY:

Accountants, bookkeepers and others that mail monthly statements of accounts payable for a client, providing they make no additional collection efforts for the client and do not collect money for the client, are not considered a collection agency. 

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

Language was added to clarify the parties and activities which are exempted from the collection agency statute.

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  No one

Senate Committee - Testified: FINANCIAL INSTITUTIONS & INSURANCE: Hannah Murphy, Washington Accountants Association; J. Boldt, Washington Society of CPAs; Ben Wood, Jr., Washington Collectors Association; Glenn Groefsema, Washington Accountants Association; Virginia Miller, Washington Accountants Association; Darrel Stoner, Washington Accountants Association