HOUSE BILL REPORT

                  SB 5696

             As Reported By House Committee On:

                      State Government

 

Title:  An act relating to divisions of the department of retirement systems.

 

Brief Description:  Authorizing the department of retirement systems to be divided into three divisions.

 

Sponsors:  Senators Haugen, Newhouse and Spanel; by request of Department of Retirement Systems.

 

Brief History:

  Reported by House Committee on:

State Government, March 31, 1993, DP.

 

HOUSE COMMITTEE ON STATE GOVERNMENT

 

Majority Report:  Do pass.  Signed by 9 members:  Representatives Anderson, Chair; Veloria, Vice Chair; Reams, Ranking Minority Member; Vance, Assistant Ranking Minority Member; Campbell; Conway; Dyer; King; and Pruitt.

 

Staff:  Bonnie Austin (786-7135).

 

Background:  The Department of Retirement Systems (DRS) was created in 1976 with two divisions:  operations (retirement services); and fiscal and administrative services.  DRS was reorganized in 1984, and a new division of information services was added.  Each of these divisions is headed by an assistant director.

 

In 1992, the state auditor discovered that the authorizing statute for DRS only allows for the creation of two divisions within DRS.  Although the Legislature has impliedly ratified the 1984 change in the last four biennial budgets, the statute is inconsistent with the current organization of the department.

 

The Division of Information Services is currently working on two major information systems projects, and a third one is proposed in the governor's 1993-95 biennial budget.  The department fears that services would be negatively impacted if it were forced to reorganize back into two divisions to meet the requirements of the original statute.

 

Summary of Bill:  The director of DRS may organize the department into three divisions, each headed by an assistant director.

 

Fiscal Note:  Available.

 

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

 

Testimony For:  None.

 

Testimony Against:  None.

 

Witnesses:  None.