SENATE BILL REPORT

SB 6328

BYSenators McCaslin and Sutherland

Changing requirements for state agency use of credit reporting agencies.

Senate Committee on Governmental Operations

Senate Hearing Date(s):January 23, 1990; January 24, 1990

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Patrick, Sutherland.

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7495)

                  February 7, 1990

AS PASSED SENATE, FEBRUARY 6, 1990

BACKGROUND:

Last year, the Legislature adopted a request from the Office of Financial Management (OFM) that state agencies be authorized to use the services of credit reporting agencies (credit bureaus) in collecting past due accounts.  In implementing the legislation it was found that some individuals -- who might not currently owe money to the state -- have sufficiently overextended themselves with other loans to the point where they become poor risks for further credit.

The University of Washington reports that banks often seek full records of a person's indebtedness when considering loan applications.

SUMMARY:

State agencies are authorized to report all receivables -- not just past due accounts -- to credit reporting agencies.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Bob Jacobs, OFM (pro)