Current through Register Vol. 24-24, December 15, 2024
(1) Under RCW 43.17. (section 2, chapter 85,
Laws of 1991), state agencies may waive the mandatory one percent per month
interest charge on past due receivables if any of the following criteria apply:
(a) It would not be cost effective to charge
interest on an individual debt or a class of debts. This includes, but is not
limited to, the following:
(i) Situations
where the cost of charging interest is expected to exceed the amount of
interest received;
(ii) Situations
where the cost of developing systems to charge interest is expected to exceed
the amount of interest received. The word "systems" in this context refers to
both computer systems and general systems of managing and processing
receivables.
(b) Late
payment was caused by the state, such as by providing incorrect information or
instructions, or by providing necessary forms and instructions too late for
timely payment when the forms or instructions had been ordered
timely.
(c) The delinquency was
caused by the death or serious illness of:
(i)
The person responsible for paying the debt; or
(ii) A person whose assistance was vital to
the payment, such as the accountant; or
(iii) A person in the immediate family of a
person in (i) or (ii) of this subsection.
(d) Payment was made on time, but to the
wrong governmental agency.
(e) The
delinquency was caused by the destruction by fire or other casualty of the
debtor's place of business, home, or records.
(f) Late payment was caused by natural
disasters, disruptions in postal or delivery service, power failures, work
stoppages due to labor disputes, or any other cause resulting from
circumstances clearly beyond the control of the debtor.
(g) The account is subject to good faith
dispute when, before the date of timely payment, notice of the dispute is:
(i) Sent by certified mail; or
(ii) Personally delivered; or
(iii) Sent in accordance with procedures in
the contract.
(h) The
debt is for public assistance or food stamp overpayments to individuals, where
the overpayments were not in whole or in part caused by the
recipients.
(i) Late payment on the
debt is the result of late payment by another payor, such as when a person
damages state property but does not know the amount of his or her personal
obligation to the state until the portion covered by the person's liability
insurance is known.
(j) The
charging of interest would damage international relations.
(2) Requests for waivers of interest under
criteria in subsection (1)(b), (c), (d), (e), and (f) of this section must be
in letter form, must contain all pertinent facts, must be accompanied by such
proof as is available, and must be received by the department within sixty days
of the incident. The burden of proving the facts is on the debtor.
Waivers under the remaining criteria in subsection (1) of this
section must be documented for the purpose of audits by the state auditor's
office.
(3) Each agency
must apply the criteria in subsection (1) of this section
consistently.
Statutory Authority: 1991 c 85 § 2. 91-18-028, §
82-06-010, filed 8/28/91,
effective 9/29/91.