FINAL BILL REPORT

SB 5579

                              C 100 L 89

BYSenators McCaslin, Lee, DeJarnatt and Rasmussen; by request of Office of Financial Management

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

Senate Committee on Governmental Operations

House Committe on State Government

SYNOPSIS AS ENACTED

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:

State agencies may report past due accounts to credit reporting agencies if it is determined that such reporting is cost- effective and does not violate confidentiality or other legal requirements.

Within 35 days after a debt is satisfied, the state agency must notify the credit bureau.  OFM is required to make a cost-benefit study of creating a central debtor identification system.  Agencies could identify persons with overdue debts, and the state could withhold any future payments to those individuals until the debts are paid.

VOTES ON FINAL PASSAGE:

     Senate   47    0

     House 93  1 (House amended)

     Senate   46    0 (Senate concurred)

EFFECTIVE:July 23, 1989