Title: An act relating to payment of claims by checks or warrants.

Brief Description: Allowing second class cities and towns to pay claims by check or warrant.

Sponsors: Senators Haugen and McCaslin.

Brief History:

Committee Activity: Government Operations & Elections: 1/17/06. [DP]

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Majority Report: Do pass.Signed by Senators Kastama, Chair; Roach, Ranking Minority Member; Benton, Fairley, Haugen, McCaslin and Pridemore.

Staff: Cindy Fazio (786-7405)

Background: A second class city treasurer receives all money due the city and pays out city money on warrants issued by the clerk and countersigned by the mayor. The treasurer reconciles monthly with the city clerk, providing the clerk with receipts for money received and canceled warrants as evidence of money paid out.

A town's treasurer receives all money due the town and pays out the town's money on warrants signed by the mayor and countersigned by the clerk. The treasurer reconciles monthly with the clerk.

Summary of Bill: A second class city, or a town, may adopt a policy, by ordinance, that allows the city to pay claims or obligations out of solvent funds by using warrants or checks. When the fund from which the payment is to be drawn is insolvent, a warrant must be used. On checks, the legislative body must designate the qualified depository from which the check will be drawn and the officer authorized or required to sign the check.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This issue was raised by the State Auditor. This practice is being followed in the large cities. The Association of Washington Cities support the bill.

Testimony Against: None.

Who Testified: PRO: Senator Mary Margaret Haugen, Prime Sponsor; Dave Williams, Association of Washington Cities.

CON: No one.