FINAL BILL REPORT

SSB 5767

C 5 L 16 E 1

FULL VETO

VETO OVERRIDE

Synopsis as Enacted

Brief Description: Revising local government treasury practices and procedures.

Sponsors: Senate Committee on Government Operations & Security (originally sponsored by Senators Cleveland, Benton, Honeyford and Fraser).

Senate Committee on Government Operations & Security

House Committee on Local Government

Background: County treasurers have various duties and authorities relating to the receipt, processing, and disbursement of funds. County treasurers are the custodians of the county's funds and the administrators of the county's financial transactions. Additionally, county treasurers provide financial services to special purpose districts and other units of local government including receipt, disbursement, investment, and accounting of the funds for each of these entities. Usually, these entities submit information about bills to be paid to the county auditor, who then issues warrants and sends them to the county treasurer for payment.

County treasurers are authorized to accept electronic payments for the collection of taxes, assessments, fees, rates, and charges. Electronic payments are defined as those made by credit cards, charge cards, debit cards, smart cards, stored value cards, federal wire, and automatic clearinghouse system transactions, or other electronic communications. With limited exceptions, a person using an acceptable electronic payment form must bear the cost of processing the transaction in an amount determined by the treasurer. The cost determination must be based upon costs incurred by the treasurer and may not exceed the additional direct costs incurred by the county to accept the payment form.

Summary: County treasurers are authorized to accept electronic payments for transactions of any kind. Electronic payment includes a payment paid by credit cards, charge cards, debit cards, smart cards, stored value cards, federal wire, automatic clearinghouse system transactions, or other electronic communication. A county treasurer must determine the amount of the transaction processing cost for electronic payments. The costs must be based on costs incurred and may not exceed the additional direct costs incurred by the county to accept the payment. A county treasurer may absorb transaction fees for payments for taxes, interest, and penalties associated with taxes that are made by automatic clearinghouse system, federal wire, or other electronic communication. The county legislative authority, or the legislative authority of a district where the county serves as treasurer, may direct the county treasurer to not charge transaction fees for all payments made for a specific category of nontax payments if it is in the best interests of the county or district.

A local government officer may issue a duplicate warrant for the payment of money in the case of a lost or destroyed warrant under certain circumstances. The local government officer must obtain a written affidavit from the person requesting a duplicate warrant with:

• the date of issue;

• the number, amount, and the purpose of the original warrant; and

• whether it has been lost, destroyed, not received, or not paid.

If the original and the duplicate are both presented for payment as a result of forgery or fraud, the local government officer must endeavor to recover any losses suffered by the local government. The duplicate instrument is subject to the same provisions of law as the original instrument.

Votes on Final Passage:

Votes on Veto Override:

First Special Session