FINAL BILL REPORT

HB 1703

                                   C 30 L 90

BYRepresentatives R. Fisher, McLean and Anderson; by request of Office of Financial Management

Revising computation of subsistence and travel expenses.

House Committe on State Government

Rereferred House Committee on Appropriations

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

Travel Expenses.  The Office of Financial Management (OFM) establishes travel expense and mileage reimbursement schedules for state employees, officials, and members of boards, commissions, or committees.  Reimbursement for meals or lodging is granted only when employees are on official business away from the city where their official work station is located. Generally, reimbursement for coffee or light refreshments has not been granted, nor have agencies been allowed to pay for coffee or light refreshments at official meetings or gatherings.

In 1988, a Travel Management Task Force studied the state's travel costs and made recommendations that included reimbursing employees for coffee, meals, or light refreshments at any approved meetings away from the workplace.

Mileage Reimbursement.  Employees traveling on official business may use a state car, public transportation, or, when it is more advantageous and economical for the state, a private vehicle.  The rate of reimbursement for mileage is not to exceed the 22.5 cents per mile rate used by the federal government for its employees.

In 1988, the Efficiency and Accountability Commission in its study of state motor vehicles recommended encouraging employees to travel in personal vehicles rather than state cars, in part by reimbursing mileage at the 24 cents per mile rate used by the Internal Revenue Service for standard business mileage deductions.

SUMMARY:

The director of the Office of Financial Management (OFM) may prescribe reasonable allowances for reimbursing employees or officials who attend an official meeting or training session away from their regular workplace where meals, coffee, or light refreshments are an integral part of the meeting, even if the employee or official is not in travel status (i.e. away from his or her city of work).  The employee's agency head must give prior approval to the reimbursement.

Upon approval of the agency head, an agency may serve coffee or light refreshments at an official meeting if such refreshments are an integral part of the meeting.  The director of OFM must adopt requirements to prevent agency abuse of this authority.

State employees or officials may be reimbursed for approved travel in a privately owned vehicle when it is either more advantageous or more economical for the state.  Current law requires that use of a private vehicle be both advantageous and economical.  The maximum mileage reimbursement rate is no longer the 22.5 cents per mile rate used by the federal government for federal employees, but is increased to the 24 cents per mile rate allowed by the Internal Revenue Service for unsubstantiated mileage deductions.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    46     0

EFFECTIVE:June 7, 1990