HOUSE BILL REPORT

HB 1421

BYRepresentatives Haugen, S. Wilson, Baugher, Vekich, Silver, May, Brough, Sanders, Schoon, Moyer, Nealey and Ferguson; by request of Office of State Auditor

Authorizing the state auditor to contract with certified public accountants.

House Committe on Local Government

Majority Report:  Do pass.  (14)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Butterfield, Dorn, Ferguson, Hine, Jones, Nealey, Nelson, Nutley, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE FEBRUARY 9, 1988

BACKGROUND:

The state constitution provides that the State Auditor is the "auditor of public accounts, and shall have such powers and perform such duties in connection therewith as may be prescribed by law."  The state constitution additionally provides that the Legislature can abolish the Office of State Auditor.

The supreme court in Yelle v. Bishop, 55 Wn.2d 286 (1959), held that the Legislature can alter or limit the powers of the Office of State Auditor and that no common-law duties or implied powers ascribe to the office.

The division of municipal corporations, within the State Auditor's Office, has been authorized to establish a uniform system of accounting and reporting for local governments and to audit local governments.

SUMMARY:

The State Auditor is authorized to contract with certified public accountants, that are certified in this state, to perform portions of the duties of the division of municipal corporations.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jack Heinricher, State Auditors Office; Gary Lowe, Washington Association of Counties; Representative Jean Silver.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This will allow the auditor to hire private certified public accountants to perform audits of governments in rural areas that are expensive for state auditors to reach.  This will allow the auditor to hire private certified public accountants to perform part of a very complicated audit when other personnel are not available.  This is similar to the power of the Attorney General to hire private attorneys.

House Committee - Testimony Against:      None Presented.