Z-808                 _______________________________________________

                                                   SENATE BILL NO. 5582

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

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

Read first time 1/27/89 and referred to Committee on   Governmental Operations.

AN ACT Relating to the authority of state agencies to charge interest on past due accounts receivable and other debts; and adding a new section to chapter 43.17 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 43.17 RCW to read as follows:

          (1) State agencies shall charge interest on unpaid accounts receivable and other debts owed to the state.  Interest charged under this section will accrue at the rate of one percent per month or fraction thereof, starting on (a) the due date, or (b) the date specified by regulation or contract.

          (2)  This  grant of authority may be used instead of, but not in addition to, any other statutory grant of authority to charge interest.

          (3) This grant of authority does not extend to accounts receivable from other governmental units.

          (4) The office of financial management may adopt rules defining criteria under which state agencies may waive interest, such as where collection would not be cost-effective.