H-298                _______________________________________________

                                                    HOUSE BILL NO. 677

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Lux, Winsley, Barrett, Lewis, Locke, Sanders, P. King, Dellwo, Crane and Ballard

Read first time 2/8/85 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to collecting of public debts; and amending RCW 19.16.500.

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

        Sec. 1.  Section 1, chapter 65, Laws of 1982 and RCW 19.16.500 are each amended to read as follows:

          (1) Agencies, departments, taxing districts, political subdivisions of the state, counties, and incorporated cities may retain, by written contract, collection agencies licensed under this chapter for the purpose of collecting public debts owed by any person.

          (2) (a) No debt may be assigned to a collection agency unless (((a))) there has been an attempt to advise the debtor (i) of the existence of the debt and (ii) that the debt may be assigned to a collection agency for collection if the debt is not paid((, and)).

          (b) (i) Except as provided in (b)(ii) of this subsection, no debt may be assigned to a collection agency unless at least thirty days have elapsed from the time the notice was sent.

(ii) If the debt is based on a check dishonored by reason of stop payment order, closed account, or insufficient funds, the debt may be assigned to the collection agency at any time after seven days have elapsed from the time the notice was sent.

          (3) Collection agencies assigned debts under this section shall have only those  remedies and powers which would be available to them as assignees of private creditors.

          (4) For purposes of this section, the term debt shall include fines and other debts.