SENATE BILL REPORT

SHB 1583

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of March 24, 2009

Title: An act relating to county auditors.

Brief Description: Modifying provisions relating to county auditors.

Sponsors: House Committee on Local Government & Housing (originally sponsored by Representatives Alexander, Simpson, Angel, Miloscia, Short and Nelson).

Brief History: Passed House: 2/27/09, 94-0.

Committee Activity: Government Operations & Elections: 3/23/09.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Staff: Sharon Swanson (786-7447)

Background: The county auditor records deeds and other written instruments. The auditor must also charge fees for service and act as clerk for the board of county commissioners. The county auditor is authorized to copy, preserve, and index documents filed with the county. Other duties of the county auditor include:

Summary of Bill: Numerous statutes are amended pertaining to the duties of county auditors in order to clarify existing law, deleting obsolete statutory provisions, streamlining county procedures, eliminating outdated practices and archaic language, and making technical corrections.

A specific reference to the statutory definition of "credit union" in a legal provision regarding charitable donations is added.

Technical procedural requirements pertaining to an auditor's duties to report annually on the status of a county's state fund account are eliminated, and the state auditor is authorized to create his or her own standards for such reporting by county auditors.

Statutory language specifically requiring that surcharges for the filing of written instruments be deposited in a county's general fund is eliminated.

Specified technical statutory requirements for elected county officials regarding how they must keep records of the inventory of a county's capitalized assets are deleted. Criminal penalties applicable to commissioners who willfully make any false or misleading statements regarding these county inventories are eliminated. The monetary penalties that may be assessed against a county official who fails to file the requisite capitalized asset inventory with the county auditor in a timely fashion are increased.

A charter county's chief financial officer, in lieu of a county auditor, is authorized to provide specified revenue and expenditure information to various county officials.

Technical changes to several statutes referencing a county's "chief financial officer" are clarified so as to modify the references to read "chief financial officer designated in a charter county."

A "chief financial officer designated in a charter county" is required to submit an annual budget to the board of county commissioners. Current law places this requirement only on a county auditor.

Statute is revised making a county official and/or auditor personally liable for liabilities incurred or payments made by him or her in excess of authorized budget appropriations. Provisions are deleted requiring that such county official or auditor pay penalties four times the amount of the unauthorized debt or expenditure.

The requirements imposed on county auditors and special purpose districts regarding reporting to the state auditor about newly created districts are simplified.

The following statutes in the RCW are repealed:

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: This bill revises many state laws pertaining to the regulation of county auditors and repeals numerous obsolete statutes regarding county auditor functions with respect to school districts. Most of the bill involves minor terminology revisions for the purpose of clarifying statutory language. Obsolete provisions allowing the imposition of criminal penalties against auditors who make errors are eliminated. This is a technical cleanup bill.

CON: Passage of this bill would be a big step backward in terms of accountability for our public officials. Citizens currently have the ability to protest corrupt practices. This bill removes a citizen's right to institute an action against an auditor independent of a prosecuting attorney.

Persons Testifying: PRO: Representative Alexander, prime sponsor; Brad Posenjak, Chelan County Auditor.

CON: Arthur West, citizen.