SENATE BILL REPORT

                   HB 1112

              As Reported By Senate Committee On:

             Government Operations, March 22, 1995

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:  Government Operations:  3/21/95, 3/22/95 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Hale, McCaslin and Winsley.

Staff:  Eugene Green (786-7405)

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:  Two changes are made in the funding structure of the Department of General Administration.

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

Second, the acquisition authority of the surplus property revolving fund is broadened to allow the acquisition of state or local surplus property in addition to federal surplus property.  This allows 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:  The risk management account would be clarified and efficiencies will be achieved by combining three funds into one.

Testimony Against:  None.

Testified:  Mark Feldhausen, GA (pro).