HOUSE BILL REPORT

EHB 1703

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

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Rector, Sayan and Silver.

House Staff:Barbara McLain (786-7135)

Rereferred House Committee on Appropriations

Majority Report:  Do pass as amended by Committee on State Government. (29)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Appelwick, Belcher, Bowman, Braddock, Brekke, Bristow, Brough, Dorn, Doty, Ebersole, Ferguson, Hine, Holland, May, McLean, Nealey, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Randy Acker (786-7136)

AS PASSED HOUSE JANUARY 19, 1990

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 refreshment has not been granted, nor have agencies been allowed to pay for coffee or light refreshment 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 rate used by the federal government for its employees (22.5 cents per mile).  Under an OFM rule, if a state car is not readily available, the mileage rate is 22.5 cents; if a state car is available, the rate drops to 18 cents.

Also 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 rate used by the Internal Revenue Service for standard business mileage deductions (24 cents per mile).

SUMMARY:

The Director of Financial Management 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 refreshment 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 any such 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 Financial Management is to 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 one used by the federal government for federal employees (22.5 cents per mile), but is increased to the rate allowed by the Internal Revenue Service for unsubstantiated mileage deductions (currently 24 cents per mile).

Fiscal Note:      Available.

House Committee ‑ Testified For:    (State Government) Paula O'Connor, Liquor Control Board; Mary Faulk, Department of Licensing; Collum Liska and Skip Houser, Office of Financial Management.

(Appropriations) Collum Liska and Skip Houser, Office of Financial Management.

House Committee - Testified Against:      (State Government) No one.

(Appropriations) No one.

House Committee - Testimony For:    (State Government) These changes increase efficiency of the way the state manages travel.  Present policies on employee reimbursement for meals or mileage sometimes pose a hardship and place the employee in an unfair position of subsidizing the state. Allowing agencies to serve coffee at official meetings represents a standard business practice.

(Appropriations) This bill implements recommendations from the Travel Management Task Force.  The changes will increase the efficiency with which the state manages travel by employees.

House Committee - Testimony Against:      (State Government) None.

(Appropriations) None.