SENATE BILL REPORT

SB 5213

BYSenators 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)

                  February 13, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 13, 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 open and current account, which is in writing.

SUMMARY:

The statute of limitations is extended to six years for contracts that are based on an open and current account, which is in writing.

EFFECT OF PROPOSED SUBSTITUTE:

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)