SENATE 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

Rereferred House Committee on Appropriations

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 30, 1989; February 15, 1990

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Patrick, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  February 16, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 15, 1990

BACKGROUND:

The Office of Financial Management (OFM) is responsible for setting rates of reimbursement to employees to cover travel expenses, lodging and meals.  Recommendations for change have been made in two areas of the present method of reimbursement.

Historically, the state has not allowed reimbursement for coffee and light refreshments at official meetings.  In 1986, however, an administrative policy was adopted by OFM to provide such refreshments at meetings where a majority of those attending are volunteers or members of unpaid advisory groups.  A Governor's task force recommended adoption of specific authority for similar treatment of local officials or employees, private citizens, representatives from other countries, or state employees away from their normal workplaces.

According to an Efficiency Commission study, state employees should be encouraged to use private vehicles as an alternative to purchasing more state cars.  The statute allows mileage reimbursement up to the maximum provided for federal employees (now 24 cents).  OFM policy grants that rate for use of a private vehicle only if a state car is not available, and if it is both more advantageous and economical to the state. 

The study recommended that the reimbursement rate be increased to the amount allowed by the Internal Revenue Service as a federal deduction, now 26 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 meeting is in the same city as the employee's work station.  The employee's agency head must give prior approval to any such reimbursement.

The Director of Financial Management must adopt requirements to prevent 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.  The maximum mileage reimbursement rate is increased to the standard rate allowed by the Internal Revenue Service for deductions.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Ralph Munro, Secretary of State (pro); Mark Brown, Washington Federation of State Employees (pro)