HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1634

Providing for forms of payments by local govts       Public Hrg: 2/21/97

Brief Title                                     (Not Heard)

Reps. D. Schmidt/Scott/Dunsee                        Staff Contact: Mike Spiro

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-5793

BACKGROUND:

A county, non-code city, town, or port district is authorized to pay by warrant any claims or other obligations of the county, non-code city, town, or port district. 

A code city, however, may pay by warrant or check the claims or other obligations of the code city which are payable out of solvent funds.  A code city must pay by warrant, and not by check, if the applicable fund is not solvent at the time payment is ordered.  When checks are used by the code city, the code city=s legislative body must designate the qualified public depositary from which checks are drawn and the officers authorized or required to sign the checks. 

SUMMARY:

A county, city, town, or port district may pay its claims or other obligations by warrant, check, or electronic draft.  A check or electronic draft may be used only if the fund out of which the check or electronic draft is payable is solvent at the time payment is ordered.  A warrant must be issued, however, if the fund is not solvent at the time payment is ordered. 

When payments are to be made by check or electronic draft, the appropriate legislative body must designate the qualified public depositary from which the checks or electronic drafts will be drawn and the officers authorized or required to sign the checks or authorize the electronic drafts when not otherwise specified by law.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.