H-1524              _______________________________________________

                                                    HOUSE BILL NO. 860

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Appelwick, B. Williams, Schoon, Grimm and Taylor

Read first time 2/11/87 and referred to Committee on Ways & Means.

AN ACT Relating to the collection 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) ((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) at least thirty days have elapsed from the time the notice was sent.)) All public bodies assigning their debts to agencies shall be in conformance with the collection agency act, chapter 19.16 RCW.

          (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) In the servicing and collection of any claim or debt due and owing to it, each public body may impose reasonable financing and late charges and reasonable costs and expenses incurred in the collection of the debts, including collection fees and collection costs, if provided in the agreement.

(5) Servicing of delinquencies by outside billing systems, precollection, or third party services in which public bodies retain control of their delinquencies shall not constitute assignment of debts.

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