SENATE BILL REPORT

SB 5579

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

Senate Hearing Date(s):February 14, 1989; February 20, 1989

Majority Report:  Do pass.

      Signed by McCaslin, Chairman; Pullen, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  April 7, 1989

House Committe on State Government

AS PASSED SENATE, MARCH 9, 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:

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.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Bob Jacobs, Office of Financial Management (pro)

HOUSE AMENDMENT:

This is the OFM request bill which allows state agencies to report overdue accounts to credit bureaus (credit reporting agencies).

The two changes in the House striking amendment are exactly the same as moved out of the Senate committee in House Bill 1580:

      -- Within 35 days after a debt is satisfied, the state agency must notify the credit bureau.

      -- A new section is added requiring OFM to study the possibility of creating an offset system.  A central file would identify persons with overdue debts, and the state could withhold any future payment to those individuals until the debt is paid.