SENATE BILL REPORT
SHB 1577
As of March 13, 2023
Title: An act relating to municipal officers' beneficial interest in contracts.
Brief Description: Concerning municipal officers' beneficial interest in contracts.
Sponsors: House Committee on Local Government (originally sponsored by Representative Schmick).
Brief History: Passed House: 3/2/23, 96-0.
Committee Activity: Local Government, Land Use & Tribal Affairs: 3/14/23.
Brief Summary of Bill
  • Increases the annual and monthly value of certain contracts in which municipal officers may have a beneficial interest.
  • Limits the cities in which a municipal officer may have a beneficial interest in a contract let by the city to those with a population under 5000.
SENATE COMMITTEE ON LOCAL GOVERNMENT, LAND USE & TRIBAL AFFAIRS
Staff: Maggie Douglas (786-7279)
Background:

Generally, no municipal officer may be beneficially interested in any contract benefiting their office. A municipal officer may not accept, directly in indirectly, any compensation, gratuity, or reward in connection with a contract from any other person beneficially interested in the contact. Certain exceptions apply, including:

  • contracts in which the total volume of business does not exceed $1,500 in a calendar month; and
  • contracts by a second-class city or town, noncharter code city, or a county fair board in a county without a purchasing department in which the total volume of business may exceed $1,500 in a calendar month but must not exceed $18,000 in a given year.

 
The exceptions pertaining to contracts with municipal officers with beneficial interests do not apply to the letting of any contract by:

  • a county with a population of 125,000 or more;
  • a city with a population of 10,000 or more; or
  • an irrigation district encompassing more than 50,000 acres.
Summary of Bill:

The monthly value for contracts in which municipal officers may have a beneficial interest is increased from $1,500 to $3,000. The value of contracts in which municipal officers may have a beneficial interest for contracts let by a second-class city or town, noncharter code city, or a county fair board in a county without a purchasing department is increased to from $1,500 to $3,000 per month, and $18,000 to $36,000 per year.
 
The exceptions of contracts with municipal officers with beneficial interests do not apply to the letting of any contract by a city with a population of 5000 or more, rather than 10,000 or more.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.