1889.E

AN ACT Relating to the internal organization and administration of the office of the state auditor; amending RCW 43.09.010, 43.09.170, 43.09.180, 43.09.200, 43.09.205, 43.09.220, 43.09.230, 43.09.240, 43.09.260, 43.09.265, 43.09.270, 43.09.280, 43.09.2801, 43.09.282, 43.09.290, 43.09.310, 43.09.330, 43.09.340, 43.09.410, 43.09.412, 43.09.414, 43.09.416, 43.09.418, 3.30.070, 3.62.020, 14.08.090, 35.02.132, 35.07.230, 35.21.270, 35.23.121, 35.23.535, 35.27.510, 35.33.031, 35.33.041, 35.33.075, 35.33.111, 35.34.050, 35.34.060, 35.34.120, 35.34.130, 35.34.190, 35.76.020, 35.76.030, 35.76.050, 35A.33.030, 35A.33.040, 35A.33.075, 35A.33.110, 35A.34.050, 35A.34.060, 35A.34.120, 35A.34.130, 35A.34.190, 35A.37.010, 36.22.140, 36.40.030, 36.40.040, 36.40.080, 36.40.220, 36.47.060, 36.68.530, 36.69.160, 36.80.080, 36.82.200, 40.14.070, 42.24.080, 42.24.090, 53.06.060, 56.08.110, 57.08.110, and 70.12.070; adding new sections to chapter 43.09 RCW; and repealing RCW 43.09.030, 43.09.040, 43.09.190, 43.09.250, and 43.09.300.

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

Sec. 1. RCW 43.09.010 and 1965 c 8 s 43.09.010 are each amended to read as follows:

The state auditor shall reside and keep his or her office at the seat of government. Before entering upon his or her duties he or she shall execute and deliver to the secretary of state a bond to the state in the sum of fifty thousand dollars, to be approved by the governor, conditioned for the faithful performance of all duties required ((~~of him~~)) by law. He or she shall take an oath of office before any person authorized to administer oaths, and file a copy thereof, together with ((~~his~~)) the required bond, in the office of the secretary of state.

NEW SECTION. Sec. 2. The state auditor may appoint deputies and assistant directors as necessary to carry out the duties of the office of the state auditor. These individuals serve at the pleasure of the state auditor and are exempt from the provisions of chapter 41.06 RCW as stated in RCW 41.06.070(1)(y).

NEW SECTION. Sec. 3. The state auditor may appoint and employ other assistants and personnel necessary to carry out the work of the office of the state auditor.

NEW SECTION. Sec. 4. The state auditor may contract with public accountants certified in Washington to carry out those portions of the duties of auditing state agencies and local governments as the state auditor may determine.

NEW SECTION. Sec. 5. The state auditor, his or her employees and every person legally appointed to perform such service, may issue subpoenas and compulsory process and direct the service thereof by any constable or sheriff, compel the attendance of witnesses and the production of books and papers before him or her at any designated time and place, and may administer oaths.

When any person summoned to appear and give testimony neglects or refuses to do so, or neglects or refuses to answer any question that may be put to him or her touching any matter under examination, or to produce any books or papers required, the person making such examination shall apply to a superior court judge of the proper county to issue a subpoena for the appearance of such person before him or her; and the judge shall order the issuance of a subpoena for the appearance of such person forthwith before him or her to give testimony; and if any person so summoned fails to appear, or appearing, refuses to testify, or to produce any books or papers required, he or she shall be subject to like proceedings and penalties for contempt as witnesses in the superior court. Willful false swearing in any such examination shall be perjury and punishable as such.

Sec. 6. RCW 43.09.170 and 1965 c 8 s 43.09.170 are each amended to read as follows:

The state auditor may administer all oaths required by law in matters pertaining to the duties of his or her office.

Sec. 7. RCW 43.09.180 and 1965 c 8 s 43.09.180 are each amended to read as follows:

The state auditor shall keep a seal of office for the identification of all papers, writings, and documents required by law to be certified by him or her, and copies authenticated and certified of all papers and documents lawfully deposited in his or her office shall be received in evidence with the same effect as the originals.

NEW SECTION. Sec. 8. State agencies and local governments shall immediately report to the state auditor's office known or suspected loss of public funds or assets or other illegal activity.

Sec. 9. RCW 43.09.200 and 1965 c 8 s 43.09.200 are each amended to read as follows:

The state auditor((~~, through such division,~~)) shall formulate, prescribe, and install a system of accounting and reporting for all local governments, which shall be uniform for every public institution, and every public office, and every public account of the same class.

The system shall exhibit true accounts and detailed statements of funds collected, received, and expended for account of the public for any purpose whatever, and by all public officers, employees, or other persons.

The accounts shall show the receipt, use, and disposition of all public property, and the income, if any, derived therefrom; all sources of public income, and the amounts due and received from each source; all receipts, vouchers, and other documents kept, or required to be kept, necessary to isolate and prove the validity of every transaction; all statements and reports made or required to be made, for the internal administration of the office to which they pertain; and all reports published or required to be published, for the information of the people regarding any and all details of the financial administration of public affairs.

Sec. 10. RCW 43.09.205 and 1987 c 120 s 4 are each amended to read as follows:

The state auditor((~~, through the division of municipal corporations,~~)) shall prescribe a standard form with which the accounts and records of costs of all local governments shall be maintained as required under RCW 39.04.070.

Sec. 11. RCW 43.09.220 and 1965 c 8 s 43.09.220 are each amended to read as follows:

Separate accounts shall be kept for every public service industry of every local government, which shall show the true and entire cost of the ownership and operation thereof, the amount collected annually by general or special taxation for service rendered to the public, and the amount and character of the service rendered therefor, and the amount collected annually from private users for service rendered to them, and the amount and character of the service rendered therefor.

Sec. 12. RCW 43.09.230 and 1993 c 18 s 2 are each amended to read as follows:

The state auditor shall require from every ((~~taxing district and other political subdivisions~~)) local government financial reports covering the full period of each fiscal year, in accordance with the forms and methods prescribed by the state auditor, which shall be uniform for all accounts of the same class.

Such reports shall be prepared, certified, and filed with the ((~~division~~)) state auditor within one hundred fifty days after the close of each fiscal year.

The reports shall contain accurate statements, in summarized form, of all collections made, or receipts received, by the officers from all sources; all accounts due the public treasury, but not collected; and all expenditures for every purpose, and by what authority authorized; and also: (1) A statement of all costs of ownership and operation, and of all income, of each and every public service industry owned and operated by a ((~~municipality~~)) local government; (2) a statement of the entire public debt of every ((~~taxing district~~)) local government, to which power has been delegated by the state to create a public debt, showing the purpose for which each item of the debt was created, and the provisions made for the payment thereof; (3) a classified statement of all receipts and expenditures by any public institution; and (4) a statement of all expenditures for labor relations consultants, with the identification of each consultant, compensation, and the terms and conditions of each agreement or arrangement; together with such other information as may be required by the state auditor.

The reports shall be certified as to their correctness by the state auditor, the state auditor's deputies, or other person legally authorized to make such ((~~certificate~~)) certification.

Their substance shall be published in an annual volume of comparative statistics at the expense of the state as a public document.

Sec. 13. RCW 43.09.240 and 1991 c 245 s 13 are each amended to read as follows:

Every public officer and employee of a local government shall keep all accounts of his or her office in the form prescribed and make all reports required by the state auditor. Any public officer or employee who refuses or willfully neglects to perform such duties shall be subject to removal from office in an appropriate proceeding for that purpose brought by the attorney general or by any prosecuting attorney.

Every public officer and employee, whose duty it is to collect or receive payments due or for the use of the public shall deposit such moneys collected or received by him or her with the treasurer of the ((~~taxing district~~)) local government once every twenty-four consecutive hours. The treasurer may in his or her discretion grant an exception where such daily transfers would not be administratively practical or feasible.

In case a public officer or employee collects or receives funds for the account of a ((~~taxing district~~)) local government of which he or she is an officer or employee, the treasurer shall, by Friday of each week, pay to the proper officer of the ((~~taxing district~~)) local government for the account of which the collection was made or payment received, the full amount collected or received during the current week for the account of the district.

NEW SECTION. Sec. 14. The state auditor has the power to examine all the financial affairs of every local government and its officers and employees.

Sec. 15. RCW 43.09.260 and 1991 sp.s. c 30 s 26 are each amended to read as follows:

((The state auditor, the chief examiner, and every state examiner shall have power by himself or herself or by any person legally appointed to perform the service, to examine into all financial affairs of every public office and officer.))

The examination of the financial affairs of all ((~~taxing districts~~)) local governments shall be made at such reasonable, periodic intervals as the state auditor shall determine. However, an examination of the financial affairs of all ((~~taxing districts~~)) local governments shall be made at least once in every three years, and an examination of individual local government health and welfare benefit plans and local government self-insurance programs shall be made at least once every two years. The term ((~~"taxing districts"~~)) local governments for purposes of ((~~RCW 43.09.190 through 43.09.285~~)) this chapter includes but is not limited to all counties, cities, and other political subdivisions, municipal corporations, and quasi-municipal corporations, however denominated.

The state auditor shall establish a schedule to govern the auditing of ((~~taxing districts~~)) local governments which shall include: A designation of the various classifications of ((~~taxing districts~~)) local governments; a designation of the frequency for auditing each type of ((~~taxing district~~)) local government; and a description of events which cause a more frequent audit to be conducted.

On every such examination, inquiry shall be made as to the financial condition and resources of the ((~~taxing district~~)) local government; whether the Constitution and laws of the state, the ordinances and orders of the ((~~taxing district~~)) local government, and the requirements of the ((~~division of municipal corporations~~)) state auditor have been properly complied with; and into the methods and accuracy of the accounts and reports.

((The state auditor, his or her deputies, every state examiner and every person legally appointed to perform such service, may issue subpoenas and compulsory process and direct the service thereof by any constable or sheriff, compel the attendance of witnesses and the production of books and papers before him or her at any designated time and place, and may administer oaths.

When any person summoned to appear and give testimony neglects or refuses so to do, or neglects or refuses to answer any question that may be put to him or her touching any matter under examination, or to produce any books or papers required, the person making such examination shall apply to a superior court judge of the proper county to issue a subpoena for the appearance of such person before him or her; and the judge shall order the issuance of a subpoena for the appearance of such person forthwith before him to give testimony; and if any person so summoned fails to appear, or appearing, refuses to testify, or to produce any books or papers required, he or she shall be subject to like proceedings and penalties for contempt as witnesses in the superior court. Willful false swearing in any such examination shall be perjury and punishable as such.))

A report of such examination shall be made ((~~in triplicate, one copy to be~~)) and filed in the office of ((~~the~~)) state auditor, and one ((in)) copy shall be transmitted to the ((~~auditing department of the taxing district reported upon, and one in the office of the attorney general~~)) local government. A copy of any report containing findings of noncompliance with state law shall be transmitted to the attorney general. If any such report discloses malfeasance, misfeasance, or nonfeasance in office on the part of any public officer or employee, within thirty days from the receipt of his or her copy of the report, the attorney general shall institute, in the proper county, such legal action as is proper in the premises by civil process and prosecute the same to final determination to carry into effect the findings of the examination.

It shall be unlawful for ((~~the county commissioners or any board or officer~~)) any local government or the responsible head thereof, to make a settlement or compromise of any claim arising out of such malfeasance, misfeasance, or nonfeasance, or any action commenced therefor, or for any court to enter upon any compromise or settlement of such action, without the written approval and consent of the attorney general and the state auditor.

Sec. 16. RCW 43.09.265 and 1979 ex.s. c 218 s 7 are each amended to read as follows:

The state auditor((~~, through the division of municipal corporations,~~)) shall review the tax levies of all ((~~municipal corporations~~)) local governments in the regular examinations under RCW 43.09.260.

Sec. 17. RCW 43.09.270 and 1993 c 315 s 1 are each amended to read as follows:

The expense of ((~~maintaining and operating the division of municipal corporations~~)) auditing local governments and those expenses directly related to ((~~the~~)) prescribing ((of)) accounting systems, training, maintenance of working capital including reserves for late and ((~~uncollectable~~)) uncollectible accounts and necessary adjustments to billings, and field audit supervision, shall be considered ((as)) expenses of auditing public accounts within the meaning of RCW 43.09.280 and 43.09.282, and shall be prorated for that purpose equally among all entities directly affected by such service.

Sec. 18. RCW 43.09.280 and 1979 c 71 s 2 are each amended to read as follows:

The expense of auditing public accounts shall be borne by each entity subject to such audit for the auditing of all accounts under its jurisdiction and the state auditor shall certify the expense of such audit to the fiscal or warrant-issuing officer of such entity, who shall immediately make payment to the ((~~division of municipal corporations~~)) state auditor. If the expense as certified is not paid by any ((~~taxing district~~)) local government within thirty days from the date of certification, the state auditor may certify the expense to the auditor of the county in which the ((~~taxing district~~)) local government is situated, who shall promptly issue his or her warrant on the county treasurer payable out of the current expense fund of the county, which fund, except as to auditing the financial affairs and making inspection and examination of the county, shall be reimbursed by the county auditor or chief financial officer out of the money due ((~~said taxing district~~)) the local government at the next monthly settlement of the collection of taxes and shall be transferred to the current expense fund.

Sec. 19. RCW 43.09.2801 and 1992 c 44 s 11 are each amended to read as follows:

(1) From July 1, 1992, to June 30, 1995, the state auditor shall charge an entity subject to an audit an additional ten cents per hour billed under RCW 43.09.270 and 43.09.280, to be deposited in the local government administrative ((~~hearing[s]~~)) hearings account.

(2) After June 30, 1995, the state auditor shall base the amount to be collected and deposited into the local government administrative ((~~hearing[s]~~)) hearings account on the funds remaining in the account on June 30, 1995, and the anticipated caseload for the future.

(3) The state auditor may exempt a local government that ((~~complies~~)) certifies that it is in compliance with RCW 42.41.050 from a charge added under subsection (1) or (2) of this section.

Sec. 20. RCW 43.09.282 and 1982 c 206 s 2 are each amended to read as follows:

For the purposes of centralized funding, accounting, and distribution of the costs of the audits performed on ((~~taxing districts~~)) local governments by the state auditor, there is hereby created ((~~a fund~~)) an account entitled the municipal revolving ((~~fund~~)) account. The state treasurer shall be custodian of the ((~~fund~~)) account. All moneys received by the ((~~division of municipal corporations~~)) state auditor or by any officer or employee thereof shall be deposited with the state treasurer and credited to the municipal revolving ((~~fund~~)) account. Funds in the municipal revolving ((~~fund~~)) account will be spent only after appropriation by the legislature. Such appropriated funds shall be administered by the ((~~division of municipal corporations~~)) state auditor. The ((~~division of municipal corporations~~)) state auditor shall keep such records as are necessary to detail the auditing costs attributable to the various types of ((~~taxing districts~~)) local governments.

Sec. 21. RCW 43.09.290 and 1981 c 336 s 6 are each amended to read as follows:

For the purposes of RCW 43.09.290 through 43.09.340 and 43.09.410 through 43.09.418, post-audit means an ((~~annual~~)) audit of the books, records, funds, accounts, and financial transactions of a state ((~~department~~)) agency for a complete fiscal period; pre-audit means all other audits and examinations; state ((~~department~~)) agency means elective officers and offices, and every other office, officer, department, board, council, committee, commission, or authority((~~, or agency~~)) of the state government now existing or hereafter created, supported, wholly or in part, by appropriations from the state treasury or funds under its control, or by the levy, assessment, collection, or receipt of fines, penalties, fees, licenses, sales of commodities, service charges, rentals, grants-in-aid, or other income provided by law, and all state educational, penal, reformatory, charitable, eleemosynary, or other institutions, supported, wholly or in part, by appropriations from the state treasury or funds under its control.

Sec. 22. RCW 43.09.310 and 1981 c 217 s 1 are each amended to read as follows:

The state auditor((~~, through the division of departmental audits,~~)) shall annually audit the state-wide combined financial statements prepared by the office of financial management and make post-audits of state agencies. Post-audits of state agencies shall be made at such periodic intervals as is determined by the state auditor. Audits of combined financial statements shall include determinations as to the validity and accuracy of accounting methods, procedures and standards utilized in their preparation, as well as the accuracy of the financial statements themselves. A report shall be made of each such audit and post-audit upon completion thereof, and one copy shall be transmitted to the governor, one to the director of financial management, ((~~one to the attorney general,~~)) one to the state ((~~department~~)) agency audited, one to the legislative budget committee, one each to the standing committees on ways and means of the house and senate, one to the chief clerk of the house, one to the secretary of the senate, and at least one shall be kept on file in the office of the state auditor. ((~~For purposes of reporting the annual audit of state-wide combined financial statements, "state department audited" refers solely to the office of financial management.~~)) A copy of any report containing findings of noncompliance with state law shall be transmitted to the attorney general.

Sec. 23. RCW 43.09.330 and 1965 c 8 s 43.09.330 are each amended to read as follows:

((The state auditor, the chief examiner, and every state examiner of the division of departmental audits, for the purpose of making post-audits, may issue subpoenas and compulsory process and direct the service thereof by any constable or sheriff to compel the attendance of witnesses and the production of books and papers before him at any designated time and place, and may administer oaths.

If any person summoned neglects or refuses to appear, or neglects or refuses to answer any question that may be put to him touching any matter under audit, or to produce any books or papers required, the person making such audit shall apply to a superior court judge of the county where the hearing arose to issue a subpoena for the appearance of such person before him; and the judge shall order the issuance of a subpoena for the appearance of such person forthwith before him to give testimony; and if any person so summoned fails to appear, or appearing refuses to testify or to produce any books or papers required, he shall be subject to like proceedings and penalties for contempt as witnesses in the superior court. Wilful false swearing in any such examination shall be perjury and punishable as such.))

If any audit of a state agency discloses malfeasance, misfeasance, or nonfeasance in office on the part of any public officer or employee, within thirty days from the receipt of his or her copy of the report, the attorney general shall institute and prosecute in the proper county, appropriate legal action to carry into effect the findings of such post-audit. It shall be unlawful for any state ((~~department~~)) agency or the responsible head thereof, to make a settlement or compromise of any claim arising out of such malfeasance, misfeasance, or nonfeasance, or any action commenced therefor, or for any court to enter upon any compromise or settlement of such action without the written approval and consent of the attorney general and the state auditor.

Sec. 24. RCW 43.09.340 and 1979 c 151 s 93 are each amended to read as follows:

The governor ((~~may, from time to time~~)) shall, at least every two years, provide for a post-audit of the books, accounts, and records of the state auditor, and the funds under his or her control, to be made either by independent qualified public accountants or the director of financial management, as he or she may determine. The expense of making such audit shall be paid from appropriations made therefor from the general fund.

Sec. 25. RCW 43.09.410 and 1981 c 336 s 1 are each amended to read as follows:

An auditing services revolving ((~~fund~~)) account is hereby created in the state treasury for the purpose of a centralized funding, accounting, and distribution of the actual costs of the audits provided to state ((~~departments~~)) agencies by the state auditor.

Sec. 26. RCW 43.09.412 and 1987 c 165 s 1 are each amended to read as follows:

The amounts to be disbursed from the auditing services revolving ((~~fund~~)) account shall ((~~be transferred thereto by the state treasurer~~)) be paid from funds appropriated to any and all state ((~~departments~~)) agencies for auditing services or administrative expenses ((~~on a monthly basis~~)). State ((~~departments~~)) agencies operating in whole or in part from nonappropriated funds shall pay into the auditing services revolving ((~~fund~~)) account such funds as will fully reimburse funds appropriated to the state auditor ((~~for any auditing services provided activities financed by nonappropriated funds~~)) for auditing services provided.

The director of financial management shall allot all such funds to the state auditor for the operation of his or her office, pursuant to appropriation, in the same manner as appropriated funds are allocated to other state ((~~departments~~)) agencies headed by elected officers under chapter 43.88 RCW.

Sec. 27. RCW 43.09.414 and 1981 c 336 s 3 are each amended to read as follows:

Disbursements from the auditing services revolving ((~~fund~~)) account shall be made pursuant to vouchers executed by the state auditor or his or her designee in accordance with RCW 43.09.412.

Sec. 28. RCW 43.09.416 and 1987 c 165 s 2 are each amended to read as follows:

The state auditor shall keep such records as are necessary to facilitate proper allocation of costs to funds and accounts and state ((~~departments~~)) agencies served and the director of financial management shall prescribe appropriate accounting procedures to accurately allocate costs to funds and accounts and state ((~~departments~~)) agencies served. The billing rate shall be established based on costs incurred in the prior biennium and anticipated costs in the new biennium. Those expenses related to training, maintenance of working capital including reserves for late and uncollectible accounts, and necessary adjustments to billings, shall be considered as expenses of auditing public accounts. Working capital shall not exceed five percent of the auditing services revolving ((~~fund~~)) account appropriation. ((The director of the office of financial management shall establish a committee of at least three certified public accountants with private sector audit experience to prepare general guidelines governing procedures to be used in determining audit costs and standards for measuring auditor productivity. These proposed procedures and productivity standards shall be presented for review by the house and senate committees on ways and means prior to the 1982 regular session of the legislature.))

Sec. 29. RCW 43.09.418 and 1981 c 336 s 5 are each amended to read as follows:

In cases where there are unanticipated demands for auditing services or where there are insufficient funds on hand or available for payment through the auditing services revolving ((~~fund~~)) account or in other cases of necessity, the state auditor may request payment for auditing services directly from state ((~~departments~~)) agencies for whom the services are performed to the extent that revenues or other funds are available. Upon approval by the director of financial management the state ((~~department~~)) agency shall make the requested payment. The payment may be made on either an advance or reimbursable basis as approved by the director of financial management.

Sec. 30. RCW 3.30.070 and 1971 c 73 s 3 are each amended to read as follows:

The clerk of each district court shall keep uniform records of each case filed and the proceedings had therein including an accounting for all funds received and disbursed. Financial reporting shall be in such form as may be prescribed by the ((~~office of the~~)) state auditor((~~, division of municipal corporations~~)). The form of other records may be prescribed by the supreme court.

Sec. 31. RCW 3.62.020 and 1988 c 169 s 3 are each amended to read as follows:

(1) Except as provided in subsection (4) of this section, all costs, fees, fines, forfeitures and penalties assessed and collected in whole or in part by district courts, except costs, fines, forfeitures and penalties assessed and collected, in whole or in part, because of the violation of city ordinances, shall be remitted by the clerk of the district court to the county treasurer at least monthly, together with a financial statement as required by the ((~~division of municipal corporations~~)) state auditor, noting the information necessary for crediting of such funds as required by law.

(2) The county treasurer shall remit thirty-two percent of the money received under subsection (1) of this section except certain costs to the state treasurer. "Certain costs" as used in this subsection, means those costs awarded to prevailing parties in civil actions under RCW 4.84.010 or 36.18.040, or those costs awarded against convicted defendants in criminal actions under RCW 10.01.160, 10.46.190, or 36.18.040, or other similar statutes if such costs are specifically designated as costs by the court and are awarded for the specific reimbursement of costs incurred by the state or county in the prosecution of the case, including the fees of defense counsel. Money remitted under this subsection to the state treasurer shall be deposited as provided in RCW 43.08.250.

(3) The balance of the money received by the county treasurer under subsection (1) of this section shall be deposited in the county current expense fund.

(4) All money collected for county parking infractions shall be remitted by the clerk of the district court at least monthly, with the information required under subsection (1) of this section, to the county treasurer for deposit in the county current expense fund.

Sec. 32. RCW 14.08.090 and 1984 c 7 s 4 are each amended to read as follows:

Any bonds to be issued by any municipality pursuant to the provisions of this chapter shall be authorized and issued in the manner and within the limitation prescribed by the Constitution and laws of this state or the charter of the municipality for the issuance and authorization of bonds thereof for public purposes generally, secured by the revenues of the airport, a mortgage on facilities, or a general tax levy as allowed by law, if the plan and system resolution are approved by the secretary of transportation or the ((~~division of municipal corporations~~)) state auditor.

Sec. 33. RCW 35.02.132 and 1991 c 360 s 4 are each amended to read as follows:

The newly elected officials shall adopt an interim budget for the interim period or until January 1 of the following year, whichever occurs first. A second interim budget shall be adopted for any period between January 1 and the official date of incorporation. These interim budgets shall be adopted in consultation with the ((~~office of the~~)) state auditor((~~, division of municipal corporations~~)).

The governing body shall adopt a budget for the newly incorporated city or town for the period between the official date of incorporation and January 1 of the following year. The mayor or governing body, whichever is appropriate shall prepare or the governing body may direct the interim city manager to prepare a preliminary budget in detail to be made public at least sixty days before the official date of incorporation as a recommendation for the final budget. The mayor, governing body, or the interim city manager shall submit as a part of the preliminary budget a budget message that contains an explanation of the budget document, an outline of the recommended financial policies and programs of the city or town for the ensuing fiscal year, and a statement of the relation of the recommended appropriation to such policies and programs. Immediately following the release of the preliminary budget, the governing body shall cause to be published a notice once each week for two consecutive weeks of a public hearing to be held at least twenty days before the official date of incorporation on the fixing of the final budget. Any taxpayer may appear and be heard for or against any part of the budget. The governing body may make such adjustments and changes as it deems necessary and may adopt the final budget at the conclusion of the public hearing or at any time before the official date of incorporation.

Sec. 34. RCW 35.07.230 and 1965 c 7 s 35.07.230 are each amended to read as follows:

If any town fails for two successive years to hold its regular municipal election, or if the officers elected at the regular election of any town fail for two successive years to qualify and the government of the town ceases to function by reason thereof, the state auditor ((~~through the division of municipal corporations~~)) may petition the superior court of the county for an order, dissolving the town. In addition to stating the facts which would justify the entry of such an order, the petition shall set forth a detailed statement of the assets and liabilities of the town insofar as they can be ascertained.

Sec. 35. RCW 35.21.270 and 1984 c 7 s 20 are each amended to read as follows:

The city engineer or the city clerk of each city or town shall maintain records of the receipt and expenditure of all moneys used for construction, repair, or maintenance of streets and arterial highways.

To assist in maintaining uniformity in such records, the ((~~division of municipal corporations~~)) state auditor, with the advice and assistance of the department of transportation, shall prescribe forms and types of records to be so maintained.

Sec. 36. RCW 35.23.121 and 1965 c 7 s 35.24.120 are each amended to read as follows:

The city clerk shall keep a full and true record of every act and proceeding of the city council and keep such books, accounts and make such reports as may be required by ((~~the division of municipal corporations in the office of~~)) the state auditor. The city clerk shall record all ordinances, annexing thereto his or her certificate giving the number and title of the ordinance, stating that the ordinance was published and posted according to law and that the record is a true and correct copy thereof. The record copy with the clerk's certificate shall be prima facie evidence of the contents of the ordinance and of its passage and publication and shall be admissible as such evidence in any court or proceeding.

The city clerk shall be custodian of the seal of the city and shall have authority to acknowledge the execution of all instruments by the city which require acknowledgment.

The city clerk may appoint a deputy for whose acts he or she and his or her bondsmen shall be responsible, and he or she and his or her deputy shall have authority to take all necessary affidavits to claims against the city and certify them without charge.

The city clerk shall perform such other duties as may be required by statute or ordinance.

Sec. 37. RCW 35.23.535 and 1965 c 7 s 35.24.430 are each amended to read as follows:

No taxes shall be imposed for maintenance and operating charges of city owned water, light, power, or heating works or systems.

Rates shall be fixed by ordinance for supplying water, light, power, or heat for commercial, domestic, or irrigation purposes sufficient to pay for all operating and maintenance charges. If the rates in force produce a greater amount than is necessary to meet operating and maintenance charges, the rates may be reduced or the excess income may be transferred to the city's current expense fund.

Complete separate accounts for municipal utilities must be kept under the system and on forms prescribed by the ((~~division of municipal corporations in the office of the~~)) state auditor.

The term "maintenance and operating charges," as used in this section includes all necessary repairs, replacement, interest on any debts incurred in acquiring, constructing, repairing and operating plants and departments and all depreciation charges. This term shall also include an annual charge equal to four percent on the cost of the plant or system, as determined by ((~~the division of municipal corporations in the office of~~)) the state auditor to be paid into the current expense fund, except that where utility bonds have been or may hereafter be issued and are unpaid no payment shall be required into the current expense fund until such bonds are paid.

Sec. 38. RCW 35.27.510 and 1965 c 7 s 35.27.510 are each amended to read as follows:

When any special fund of a public utility department of a town has retired all bond and warrant indebtedness and is on a cash basis, if a reserve or depreciation fund has been created in an amount satisfactory to ((~~the division of municipal corporations in the office of~~)) the state auditor and if the fixing of the rates of the utility is governed by contract with the supplier of water, electrical energy, or other commodity sold by the town to its inhabitants, and the rates are at the lowest possible figure, the town council may set aside such portion of the net earnings of the utility as it may deem advisable and transfer it to the town's current expense fund: PROVIDED, That no amount in excess of fifty percent of the net earnings shall be so set aside and transferred except with the unanimous approval of the council and mayor.

Sec. 39. RCW 35.33.031 and 1969 ex.s. c 95 s 3 are each amended to read as follows:

On or before the second Monday of the fourth month prior to the beginning of the city's or town's next fiscal year, or at such other time as the city or town may provide by ordinance or charter, the clerk shall notify in writing the head of each department of a city or town to file with the clerk within fourteen days of the receipt of such notification, detailed estimates of the probable revenue from sources other than ad valorem taxation and of all expenditures required by his or her department for the ensuing fiscal year. The notice shall be accompanied by the proper forms provided by the clerk, prepared in accordance with the requirements and classification established by ((~~the division of municipal corporations in the office of~~)) the state auditor. The clerk shall prepare the estimates for interest and debt redemption requirements and all other estimates, the preparation of which falls properly within the duties of his or her office. The chief administrative officers of the city or town shall submit to the clerk detailed estimates of all expenditures proposed to be financed from the proceeds of bonds or warrants not yet authorized, together with a statement of the proposed method of financing them. In the absence or disability of the official or person regularly in charge of a department, the duties herein required shall devolve upon the person next in charge of such department.

Sec. 40. RCW 35.33.041 and 1969 ex.s. c 95 s 4 are each amended to read as follows:

All estimates of receipts and expenditures for the ensuing year shall be fully detailed in the annual budget and shall be classified and segregated according to a standard classification of accounts to be adopted and prescribed by the state auditor ((~~through the division of municipal corporations~~)) after consultation with the Washington finance officers association, the association of Washington cities and the association of Washington city managers.

Sec. 41. RCW 35.33.075 and 1969 ex.s. c 95 s 10 are each amended to read as follows:

Following conclusion of the hearing, and prior to the beginning of the fiscal year, the legislative body shall make such adjustments and changes as it deems necessary or proper and after determining the allowance in each item, department, classification and fund, and shall by ordinance, adopt the budget in its final form and content. Appropriations shall be limited to the total estimated revenues contained therein including the amount to be raised by ad valorem taxes and the unencumbered fund balances estimated to be available at the close of the current fiscal year. Such ordinances may adopt the final budget by reference: PROVIDED, That the ordinance adopting such budget shall set forth in summary form the totals of estimated revenues and appropriations for each separate fund and the aggregate totals for all such funds combined.

A complete copy of the final budget as adopted shall be transmitted to ((~~the division of municipal corporations in the office of the state auditor, and to~~)) the association of Washington cities.

Sec. 42. RCW 35.33.111 and 1969 ex.s. c 95 s 16 are each amended to read as follows:

The ((~~division of municipal corporations in the office of the~~)) state auditor is empowered to make and install the forms and classifications required by this chapter to define what expenditures are chargeable to each budget class and to establish the accounting and cost systems necessary to secure accurate budget information.

Sec. 43. RCW 35.34.050 and 1985 c 175 s 8 are each amended to read as follows:

On or before the second Monday of the fourth month prior to the beginning of the city's or town's next fiscal biennium, or at such other time as the city or town may provide by ordinance or charter, the clerk shall notify in writing the head of each department of a city or town to file with the clerk within fourteen days of the receipt of such notification, detailed estimates of the probable revenue from sources other than ad valorem taxation and of all expenditures required by the department for the ensuing fiscal biennium. The notice shall be accompanied by the proper forms provided by the clerk, prepared in accordance with the requirements and classification established by ((~~the division of municipal corporations in the office of~~)) the state auditor. The clerk shall prepare the estimates for interest and debt redemption requirements and all other estimates, the preparation of which falls properly within the duties of the clerk's office. The chief administrative officers of the city or town shall submit to the clerk detailed estimates of all expenditures proposed to be financed from the proceeds of bonds or warrants not yet authorized, together with a statement of the proposed method of financing them. In the absence or disability of the official or person regularly in charge of a department, the duties required by this section shall devolve upon the person next in charge of such department.

Sec. 44. RCW 35.34.060 and 1985 c 175 s 9 are each amended to read as follows:

All estimates of receipts and expenditures for the ensuing fiscal biennium shall be fully detailed in the biennial budget and shall be classified and segregated according to a standard classification of accounts to be adopted and prescribed by the state auditor ((~~through the division of municipal corporations~~)) after consultation with the Washington finance officers association, the association of Washington cities, and the association of Washington city managers.

Sec. 45. RCW 35.34.120 and 1985 c 175 s 15 are each amended to read as follows:

Following conclusion of the hearing, and prior to the beginning of the fiscal biennium, the legislative body shall make such adjustments and changes as it deems necessary or proper and, after determining the allowance in each item, department, classification, and fund, shall by ordinance adopt the budget in its final form and content. Appropriations shall be limited to the total estimated revenues contained therein including the amount to be raised by ad valorem taxes and the unencumbered fund balances estimated to be available at the close of the current fiscal biennium. Such ordinances may adopt the final budget by reference. However, the ordinance adopting the budget shall set forth in summary form the totals of estimated revenues and appropriations for each separate fund and the aggregate totals for all such funds combined.

A complete copy of the final budget as adopted shall be transmitted to ((~~the division of municipal corporations in the office of~~)) the state auditor and to the association of Washington cities.

Sec. 46. RCW 35.34.130 and 1985 c 175 s 16 are each amended to read as follows:

The legislative authority of a city or town having adopted the provisions of this chapter shall provide by ordinance for a mid-biennial review and modification of the biennial budget. The ordinance shall provide that such review and modification shall occur no sooner than eight months after the start nor later than conclusion of the first year of the fiscal biennium. The chief administrative officer shall prepare the proposed budget modification and shall provide for publication of notice of hearings consistent with publication of notices for adoption of other city or town ordinances. City or town ordinances providing for a mid-biennium review and modification shall establish procedures for distribution of the proposed modification to members of the city or town legislative authority, procedures for making copies available to the public, and shall provide for public hearings on the proposed budget modification. The budget modification shall be by ordinance approved in the same manner as are other ordinances of the city or town.

A complete copy of the budget modification as adopted shall be transmitted to ((~~the division of municipal corporations in the office of~~)) the state auditor and to the association of Washington cities.

Sec. 47. RCW 35.34.190 and 1985 c 175 s 22 are each amended to read as follows:

Sec. 48. RCW 35.76.020 and 1965 c 7 s 35.76.020 are each amended to read as follows:

The state auditor((~~, through the division of municipal corporations,~~)) shall formulate, prescribe, and install a system of cost accounting and reporting for each city having a population of more than eight thousand, according to the last official census, which will correctly show all street expenditures by functional categories. The system shall also provide for reporting all revenues available for street purposes from whatever source including local improvement district assessments and state and federal aid.

Sec. 49. RCW 35.76.030 and 1965 c 7 s 35.76.030 are each amended to read as follows:

Consistent with the intent of this chapter as stated in RCW 35.76.010, the state auditor, from and after July 1, 1965, ((~~through the division of municipal corporations,~~)) is authorized and directed to prescribe accounting and reporting procedures for street expenditures for cities and towns having a population of eight thousand or less, according to the last official census.

Sec. 50. RCW 35.76.050 and 1984 c 7 s 22 are each amended to read as follows:

The ((~~division of municipal corporations~~)) state auditor shall annually make a cost-audit examination of street records for each city and town and make a written report thereon to the legislative body of each city and town. The expense of the examination shall be paid out of that portion of the motor vehicle fund allocated to the cities and towns and withheld for use by the state department of transportation under the terms of RCW 46.68.110(1).

Sec. 51. RCW 35A.33.030 and 1967 ex.s. c 119 s 35A.33.030 are each amended to read as follows:

On or before the second Monday of the fourth month prior to the beginning of the city's next fiscal year, or at such other time as the city may provide by ordinance or charter, the clerk shall notify in writing the head of each department of a code city to file with the clerk within fourteen days of the receipt of such notification, detailed estimates of the probable revenue from sources other than ad valorem taxation and of all expenditures required by his or her department for the ensuing fiscal year. The notice shall be accompanied by the proper forms provided by the clerk, prepared in accordance with the requirements and classification established by the ((~~division of municipal corporations in the office of the~~)) state auditor. The clerk shall prepare the estimates for interest and debt redemption requirements and all other estimates, the preparation of which falls properly within the duties of his or her office. The chief administrative officers of the city shall submit to the clerk detailed estimates of all expenditures proposed to be financed from the proceeds of bonds or warrants not yet authorized, together with a statement of the proposed method of financing them. In the absence or disability of the official or person regularly in charge of a department, the duties herein required shall devolve upon the person next in charge of such department.

Sec. 52. RCW 35A.33.040 and 1967 ex.s. c 119 s 35A.33.040 are each amended to read as follows:

Sec. 53. RCW 35A.33.075 and 1969 ex.s. c 81 s 3 are each amended to read as follows:

A complete copy of the final budget as adopted shall be transmitted to ((~~the division of municipal corporations in the office of~~)) the state auditor, and to the association of Washington cities.

Sec. 54. RCW 35A.33.110 and 1967 ex.s. c 119 s 35A.33.110 are each amended to read as follows:

Sec. 55. RCW 35A.34.050 and 1985 c 175 s 37 are each amended to read as follows:

On or before the second Monday of the fourth month prior to the beginning of the city's next fiscal biennium, or at such other time as the city may provide by ordinance or charter, the clerk shall notify in writing the head of each department of a city to file with the clerk within fourteen days of the receipt of such notification, detailed estimates of the probable revenue from sources other than ad valorem taxation and of all expenditures required by the department for the ensuing fiscal biennium. The notice shall be accompanied by the proper forms provided by the clerk, prepared in accordance with the requirements and classification established by the ((~~division of municipal corporations in the office of the~~)) state auditor. The clerk shall prepare the estimates for interest and debt redemption requirements and all other estimates, the preparation of which falls properly within the duties of the clerk's office. The chief administrative officers of the city shall submit to the clerk detailed estimates of all expenditures proposed to be financed from the proceeds of bonds or warrants not yet authorized, together with a statement of the proposed method of financing them. In the absence or disability of the official or person regularly in charge of a department, the duties required by this section shall devolve upon the person next in charge of such department.

Sec. 56. RCW 35A.34.060 and 1985 c 175 s 38 are each amended to read as follows:

Sec. 57. RCW 35A.34.120 and 1985 c 175 s 44 are each amended to read as follows:

A complete copy of the final budget as adopted shall be transmitted to ((~~the division of municipal corporations in the office of~~)) the state auditor and to the association of Washington cities.

Sec. 58. RCW 35A.34.130 and 1985 c 175 s 45 are each amended to read as follows:

The legislative authority of a city having adopted the provisions of this chapter shall provide by ordinance for a mid-biennial review and modification of the biennial budget. The ordinance shall provide that such review and modification shall occur no sooner than eight months after the start nor later than conclusion of the first year of the fiscal biennium. The chief administrative officer shall prepare the proposed budget modification and shall provide for publication of notice of hearings consistent with publication of notices for adoption of other city ordinances. City ordinances providing for a mid‑biennium review and modification shall establish procedures for distribution of the proposed modification to members of the city legislative authority, procedures for making copies available to the public, and shall provide for public hearings on the proposed budget modification. The budget modification shall be by ordinance approved in the same manner as are other ordinances of the city.

Sec. 59. RCW 35A.34.190 and 1985 c 175 s 51 are each amended to read as follows:

Sec. 60. RCW 35A.37.010 and 1983 c 3 s 62 are each amended to read as follows:

Code cities shall establish such funds for the segregation, budgeting, expenditure and accounting for moneys received for special purposes as are required by general law applicable to such cities' activities and the officers thereof shall pay into, expend from, and account for such moneys in the manner provided therefor including but not limited to the requirements of the following:

(1) Accounting funds as required by RCW 35.37.010;

(2) Annexation and consolidation fund as required by chapters 35.10 and 35.13 RCW;

(3) Assessment fund as required by RCW 8.12.480;

(4) Equipment rental fund as authorized by RCW 35.21.088;

(5) Current expense fund as required by RCW 35.37.010, usually referred to as the general fund;

(6) Local improvement guaranty fund as required by RCW 35.54.010;

(7) An indebtedness and sinking fund, together with separate funds for utilities and institutions as required by RCW 35.37.020;

(8) Local improvement district fund and revolving fund as required by RCW 35.45.130 and 35.48.010;

(9) City street fund as required by chapter 35.76 RCW and RCW 47.24.040;

(10) Firemen's relief and pension fund as required by chapters 41.16 and 41.18 RCW;

(11) Policemen's relief and pension fund as required by RCW 41.20.130 and 63.32.030;

(12) First class cities' employees retirement and pension system as authorized by chapter 41.28 RCW;

(13) Applicable rules of the ((~~division of municipal corporations office of~~)) state auditor. ((~~RCW 43.09.190 through 43.09.282.~~))

Sec. 61. RCW 36.22.140 and 1963 c 4 s 36.22.140 are each amended to read as follows:

Each county auditor or chief financial officer shall be ex officio deputy ((~~supervisor~~)) of the ((~~division of municipal corporations~~)) state auditor for the purpose of accounting and reporting on municipal corporations and in such capacity shall be under the direction of the ((~~chief supervisor~~)) state auditor, but he or she shall receive no additional salary or compensation by virtue thereof and shall perform no duties as such, except in connection with county business.

Sec. 62. RCW 36.40.030 and 1963 c 4 s 36.40.030 are each amended to read as follows:

The estimates required in RCW 36.40.010 and 36.40.020 shall be submitted on forms provided by the county auditor or chief financial officer and classified according to the classification established by the ((~~division of municipal corporations~~)) state auditor. The county auditor or chief financial officer shall provide such forms. He or she shall also prepare the estimates for interest and debt redemption requirements and any other estimates the preparation of which properly falls within the duties of his or her office.

Each such official shall file his or her estimates within the time and in the manner provided in the notice and form and the county auditor or chief financial officer shall deduct and withhold as a penalty from the salary of each official failing or refusing to file such estimates as herein provided, the sum of ten dollars for each day of delay: PROVIDED, That the total penalty against any one official shall not exceed fifty dollars in any one year.

In the absence or disability of any official the duties required herein shall devolve upon the official or employee in charge of the office, department, service, or institution for the time being. The notice shall contain a copy of this penalty clause.

Sec. 63. RCW 36.40.040 and 1973 c 39 s 1 are each amended to read as follows:

Upon receipt of the estimates the county auditor or chief financial officer shall prepare the county budget which shall set forth the complete financial program of the county for the ensuing fiscal year, showing the expenditure program and the sources of revenue by which it is to be financed.

The revenue section shall set forth the estimated receipts from sources other than taxation for each office, department, service, or institution for the ensuing fiscal year, the actual receipts for the first six months of the current fiscal year and the actual receipts for the last completed fiscal year, the estimated surplus at the close of the current fiscal year and the amount proposed to be raised by taxation.

The expenditure section shall set forth in comparative and tabular form by offices, departments, services, and institutions the estimated expenditures for the ensuing fiscal year, the appropriations for the current fiscal year, the actual expenditures for the first six months of the current fiscal year including all contracts or other obligations against current appropriations, and the actual expenditures for the last completed fiscal year.

All estimates of receipts and expenditures for the ensuing year shall be fully detailed in the annual budget and shall be classified and segregated according to a standard classification of accounts to be adopted and prescribed by the state auditor ((~~through the division of municipal corporations~~)) after consultation with the Washington state association of counties and the Washington state association of ((~~elected~~)) county officials.

The county auditor or chief financial officer shall set forth separately in the annual budget to be submitted to the ((~~board of~~)) county ((~~commissioners~~)) legislative authority the total amount of emergency warrants issued during the preceding fiscal year, together with a statement showing the amount issued for each emergency, and the board shall include in the annual tax levy, a levy sufficient to raise an amount equal to the total of such warrants: PROVIDED, That the board may fund the warrants or any part thereof into bonds instead of including them in the budget levy.

Sec. 64. RCW 36.40.080 and 1963 c 4 s 36.40.080 are each amended to read as follows:

Upon the conclusion of the budget hearing the ((~~board of~~)) county ((~~commissioners~~)) legislative authority shall fix and determine each item of the budget separately and shall by resolution adopt the budget as so finally determined and enter the same in detail in the official minutes of the board, a copy of which budget shall be forwarded to the ((~~division of municipal corporations~~)) state auditor.

Sec. 65. RCW 36.40.220 and 1963 c 4 s 36.40.220 are each amended to read as follows:

The ((~~division of municipal corporations~~)) state auditor may make such rules, classifications, and forms as may be necessary to carry out the provisions in respect to county budgets, define what expenditures shall be chargeable to each budget account, and establish such accounting and cost systems as may be necessary to provide accurate budget information.

Sec. 66. RCW 36.47.060 and 1969 ex.s. c 5 s 5 are each amended to read as follows:

The financial records of the Washington state association of county officials shall be subject to audit by the ((~~Washington~~)) state ((~~division of municipal corporations~~)) auditor.

Sec. 67. RCW 36.68.530 and 1981 c 210 s 11 are each amended to read as follows:

The governing body of each park and recreation service area shall annually compile a budget for each service area in a form prescribed by the state ((~~division of municipal corporations~~)) auditor for the ensuing calendar year which shall, to the extent that anticipated income is actually realized, constitute the appropriations for the service area. The budget may include an amount to accumulate a reserve for a stated capital purpose. In compiling the budget, all available funds and anticipated income shall be taken into consideration, including contributions or contractual payments from school districts, cities, or towns, county or any other governmental entity, gifts and donations, special tax levy, fees and charges, proceeds of bond issues, and cumulative reserve funds.

Sec. 68. RCW 36.69.160 and 1963 c 4 s 36.69.160 are each amended to read as follows:

The board of park and recreation commissioners of each park and recreation district shall annually compile a budget, in form prescribed by the state ((~~division of municipal corporations~~)) auditor, for the ensuing calendar year, and which shall, to the extent that anticipated income is actually realized, constitute the appropriations for the district. The budget may include an amount to accumulate a reserve for a stated capital purpose. In compiling the budget, all available funds and anticipated income shall be taken into consideration, including contributions or contractual payments from school districts, cities or towns, county, or any other governmental unit; gifts and donations; special tax levy; assessments; fees and charges; proceeds of bond issues; cumulative reserve funds.

Sec. 69. RCW 36.80.080 and 1985 c 120 s 3 are each amended to read as follows:

The ((~~division of municipal corporations~~)) state auditor shall annually make a cost-audit examination of the books and records of the county road engineer and make a written report thereon to the county legislative authority. The expense of the examination shall be paid from the county road fund.

Sec. 70. RCW 36.82.200 and 1963 c 4 s 36.82.200 are each amended to read as follows:

The board shall hold such hearing at the time and place designated in the notice, and it may be continued from day to day until concluded but not to exceed a total of five days. Upon the conclusion of the hearing the board shall fix and determine the supplemental budget and by resolution adopt it as finally determined and enter it in detail in the official minutes of the board, ((~~copies~~)) a copy of which supplemental budget shall be forwarded((~~, one~~)) to the director ((~~and one to the division of municipal corporations~~)).

Sec. 71. RCW 40.14.070 and 1982 c 36 s 6 are each amended to read as follows:

County, municipal, and other local government agencies may request authority to destroy noncurrent public records having no further administrative or legal value by submitting to the division of archives and records management lists of such records on forms prepared by the division. The archivist ((~~and the chief examiner of the division of municipal corporations of the office of~~)), a representative appointed by the state auditor, and a representative appointed by the attorney general shall constitute a committee, known as the local records committee, which shall review such lists and which may veto the destruction of any or all items contained therein.

A local government agency, as an alternative to submitting lists, may elect to establish a records control program based on recurring disposition schedules recommended by the agency to the local records committee. The schedules are to be submitted on forms provided by the division of archives and records management to the local records committee, which may either veto, approve, or amend the schedule. Approval of such schedule or amended schedule shall be by unanimous vote of the local records committee. Upon such approval, the schedule shall constitute authority for the local government agency to destroy the records listed thereon, after the required retention period, on a recurring basis until the schedule is either amended or revised by the committee.

Except as otherwise provided by law, no public records shall be destroyed until approved for destruction by the local records committee. Official public records shall not be destroyed unless:

(1) The records are six or more years old;

(2) The department of origin of the records has made a satisfactory showing to the state records committee that the retention of the records for a minimum of six years is both unnecessary and uneconomical, particularly where lesser federal retention periods for records generated by the state under federal programs have been established; or

(3) The originals of official public records less than six years old have been copied or reproduced by any photographic, photostatic, microfilm, miniature photographic, or other process approved by the state archivist which accurately reproduces or forms a durable medium for so reproducing the original.

An automatic reduction of retention periods from seven to six years for official public records on record retention schedules existing on June 10, 1982, shall not be made, but the same shall be reviewed individually by the local records committee for approval or disapproval of the change to a retention period of six years.

The state archivist may furnish appropriate information, suggestions, and guidelines to local government agencies for their assistance in the preparation of lists and schedules or any other matter relating to the retention, preservation, or destruction of records under this chapter. The local records committee may adopt appropriate regulations establishing procedures to be followed in such matters.

Records of county, municipal, or other local government agencies, designated by the archivist as of primarily historical interest, may be transferred to a recognized depository agency.

Sec. 72. RCW 42.24.080 and 1965 c 116 s 1 are each amended to read as follows:

All claims presented against any county, city, district or other municipal corporation or political subdivision by persons furnishing materials, rendering services or performing labor, or for any other contractual purpose, shall be audited, before payment, by an auditing officer elected or appointed pursuant to statute or, in the absence of statute, an appropriate charter provision, ordinance or resolution of the municipal corporation or political subdivision. Such claims shall be prepared for audit and payment on a form and in the manner prescribed by the ((~~division of municipal corporations in the~~)) state auditor((~~'s office~~)). The form shall provide for the authentication and certification by such auditing officer that the materials have been furnished, the services rendered or the labor performed as described, and that the claim is a just, due and unpaid obligation against the municipal corporation or political subdivision; and no claim shall be paid without such authentication and certification: PROVIDED, That the certificates as to claims of officers and employees of a county, city, district or other municipal corporation or political subdivision, for services rendered, shall be made by the person charged with the duty of preparing and submitting vouchers for the payment of services, and he or she shall certify that the claim is just, true and unpaid, which certificate shall be part of the voucher.

Sec. 73. RCW 42.24.090 and 1981 c 56 s 1 are each amended to read as follows:

No claim for reimbursement of any expenditures by officers or employees of any municipal corporation or political subdivision of the state for transportation, lodging, meals or any other purpose shall be allowed by any officer, employee or board charged with auditing accounts unless the same shall be presented in a detailed account: PROVIDED, That, unless otherwise authorized by law, the legislative body of any municipal corporation or political subdivision of the state may prescribe by ordinance or resolution the amounts to be paid officers or employees thereof as reimbursement for the use of their personal automobiles or other transportation equipment in connection with officially assigned duties and other travel for approved public purposes, or as reimbursement to such officers or employees in lieu of actual expenses incurred for lodging, meals or other purposes. The rates for such reimbursements may be computed on a mileage, hourly, per diem, monthly, or other basis as the respective legislative bodies shall determine to be proper in each instance: PROVIDED, That in lieu of such reimbursements, payments for the use of personal automobiles for official travel may be established if the legislative body determines that these payments would be less costly to the municipal corporation or political subdivision of the state than providing automobiles for official travel.

All claims authorized under this section shall be duly certified by the officer or employee submitting such claims on forms and in the manner prescribed by the ((~~division of municipal corporations in the office of the~~)) state auditor.

Sec. 74. RCW 53.06.060 and 1961 c 31 s 6 are each amended to read as follows:

The financial records of the Washington public ports association shall be subject to audit by the ((~~Washington state division of municipal corporations of the~~)) state auditor.

Sec. 75. RCW 56.08.110 and 1973 1st ex.s. c 195 s 62 are each amended to read as follows:

To improve the organization and operation of sewer districts, the commissioners of two or more such districts may form an association thereof, for the purpose of securing and disseminating information of value to the members of the association and for the purpose of promoting the more economical and efficient operation of the comprehensive plans of sewer systems in their respective districts. The commissioners of sewer districts so associated shall adopt articles of association, select such officers as they may determine, and employ and discharge such agents and employees as shall be deemed convenient to carry out the purposes of the association. Sewer district commissioners and their employees are authorized to attend meetings of the association. The expense of the association may be paid from the maintenance or general funds of the associated districts in such manner as shall be provided in the articles of association: PROVIDED, That the aggregate contributions made to the association by the district in any calendar year shall not exceed the amount which would be raised by a levy of two and one-half cents per thousand dollars of assessed value against the taxable property of the district. The financial records of such association shall be subject to audit by the ((~~Washington state division of municipal corporations of the~~)) state auditor.

Sec. 76. RCW 57.08.110 and 1973 1st ex.s. c 195 s 68 are each amended to read as follows:

To improve the organization and operation of water districts, the commissioners of two or more such districts may form an association thereof, for the purpose of securing and disseminating information of value to the members of the association and for the purpose of promoting the more economical and efficient operation of the comprehensive plans of water supply in their respective districts. The commissioners of water districts so associated shall adopt articles of association, select such officers as they may determine, and employ and discharge such agents and employees as shall be deemed convenient to carry out the purposes of the association. Water district commissioners and employees are authorized to attend meetings of the association. The expense of the association may be paid from the maintenance or general funds of the associated districts in such manner as shall be provided in the articles of association: PROVIDED, That the aggregate contributions made to the association by the district in any calendar year shall not exceed the amount which would be raised by a levy of two and one-half cents per thousand dollars of assessed value against the taxable property of the district. The financial records of such association shall be subject to audit by the ((~~Washington state division of municipal corporations of the~~)) state auditor.

Sec. 77. RCW 70.12.070 and 1991 c 3 s 316 are each amended to read as follows:

The public health pool fund shall be subject to audit by the ((~~division of departmental audits~~)) state auditor and shall be subject to check by the state department of health.

NEW SECTION. Sec. 78. The following acts or parts of acts are each repealed:

(1) RCW 43.09.030 and 1965 c 8 s 43.09.030;

(2) RCW 43.09.040 and 1965 c 8 s 43.09.040;

(3) RCW 43.09.190 and 1965 c 8 s 43.09.190;

(4) RCW 43.09.250 and 1988 c 52 s 1 & 1965 c 8 s 43.09.250; and

(5) RCW 43.09.300 and 1988 c 53 s 1 & 1965 c 8 s 43.09.300.

NEW SECTION. Sec. 79. Sections 2 through 5, 8, and 14 of this act are each added to chapter 43.09 RCW.