HOUSE BILL REPORT

                  HB 1112

             As Reported By House Committee On:

                       Appropriations

Title:  An act relating to clarifying and streamlining use of funds within the department of general administration.

Brief Description:  Clarifying and streamlining the use of funds within the department of general administration.

Sponsors:  Representatives Silver, Sommers, Romero, Wolfe, Huff, Stevens, Johnson, Brumsickle and Mason; by request of Department of General Administration.

Brief History:

  Committee Activity:

Appropriations:  2/2/95, 2/23/95 [DP].

HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report:  Do pass.  Signed by 29 members:  Representatives Silver, Chairman; Clements, Vice Chairman; Huff, Vice Chairman; Pelesky, Vice Chairman; Sommers, Ranking Minority Member; Valle, Assistant Ranking Minority Member; Basich; Beeksma; Brumsickle; Carlson; Chappell; Cooke; Crouse; Dellwo; Foreman; Hargrove; Hickel; Jacobsen; Lambert; Lisk; McMorris; Poulsen; Reams; Rust; Sehlin; Sheahan; Talcott; Thibaudeau and Wolfe.

Staff:  Dan Chang (786-7191).

Background:    The Division of Risk Management provides self-insurance and brokered commercial insurance to state agencies.  Funds appropriated by these agencies to pay insurance premiums pass through the risk management account (fund 546) in the form of non-appropriated funds and are paid to commercial insurers.  Fund 546 is currently designated as an "appropriated" fund.

The Division of Commodity Redistribution is responsible for reutilizing state and federal surplus goods.  The division currently operates from five fund sources:  general fund-state, general fund-federal, the central stores revolving account (fund 425), the surplus property purchase revolving account (fund 430), and the donable foods revolving account (fund 435).

Summary of Bill:  This bill makes two changes in the funding structure of the Department of General Administration.

First, the bill makes a technical change to designate pass-through funds associated with commercial insurance purchases in the risk management account as non-appropriated.

Second, the bill broadens the acquisition authority of the surplus property revolving fund to allow the acquisition of state or local surplus property in addition to federal surplus property.   This will allow fund 425 and fund 435 to be consolidated into fund 430.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  HB 1112 would clarify the risk management account and increase efficiency and effectiveness by combining three funds into one.

Testimony Against:  None.

Testified:  Mark Feldhausen, General Administration.