SENATE BILL REPORT

SSB 5213

BYSenate Committee on Law & Justice (originally sponsored by Senators Pullen, Moore, Madsen, Nelson, McCaslin, Bluechel, Thorsness and Newhouse)

Extending the statute of limitations on written charge accounts.

Senate Committee on Law & Justice

Senate Hearing Date(s):January 31, 1989; February 13, 1989

Majority Report:  That Substitute Senate Bill No. 5213 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Madsen, Nelson, Newhouse, Thorsness.

Minority Report:  Do not pass.

      Signed by Senators Niemi, Talmadge.

Senate Staff:Dick Armstrong (786-7460)

                  March 6, 1989

AS PASSED SENATE, MARCH 3, 1989

BACKGROUND:

The period of time to commence an action on contracts is limited by statute.  The statute of limitations for actions based on a written agreement is six years.  The statute of limitations for actions based on a contract which is not in writing is three years. 

Persons engaged in many commercial businesses oftentimes do not enter into a written contract with customers.  It is suggested that the statute of limitations should be extended to six years for all actions based on an account receivable.

SUMMARY:

The statute of limitations is extended to six years for contracts that are based on an account receivable incurred in the ordinary course of business.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Ben Wood, Benita McCormick, Washington Collectors Association (pro)