Title: An act relating to the motor pool within the department of general administration.

Brief Description: Managing the motor pool within the department of general administration.

Sponsors: Representatives Alexander, Sommers, Romero and Hunt; by request of Department of General Administration.

Brief Summary of Bill

• The purchase of additional motor pool vehicles is funded through rental and mileage charges.

• Agencies are no longer reimbursed for vehicles transferred to the motor pool.

Majority Report: Do pass. Signed by 9 members: Representatives Haigh, Chair; Miloscia, Vice Chair; Armstrong, Ranking Minority Member; Shabro, Assistant Ranking Minority Member; Hunt, McDermott, Nixon, Tom and Wallace.

The Department of General Administration (GA) provides various services to state agencies including management and operation of motor vehicle transportation services. As part of this service, the GA furnishes transportation services to state agencies on a temporary or permanent basis and operates motor pools in Olympia, Seattle, and other locations. The GA determines rental and mileage fees sufficient to cover replacement of vehicles and actual total costs of motor pool operations and establishes guidelines, procedures and standards for fleet operation. The GA is responsible for the acquisition, operation, maintenance, storage, repair, and replacement of state motor vehicles under its control.

Passenger motor vehicles owned or acquired by state agencies may be purchased by or transferred to the GA with the consent of the agency. In certain circumstances, the GA may direct the transfer of an agency vehicle to the motor pool, or other appropriate disposition, upon finding that the vehicle is not required by the agency. No cash reimbursement is made to agencies for these vehicles if the vehicle was acquired without cost or purchased from general fund appropriations. The agency receives credits against future motor pool charges equal to the value of the vehicle. If the vehicle was originally purchased through dedicated, revolving, or trust funds, the agency may be paid outright if surplus funds are available in the general administration services account. Otherwise, a credit is applied toward future motor pool use.

Rental and mileage charges for state motor pool vehicles are set to include purchase of additional vehicles. Provisions for reimbursing state agencies for vehicles transferred to the GA are repealed.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: This bill converts the motor pool from an allocation method to a budgeted non-appropriated, fee for service model. It will allow the motor pool to purchase new vehicles from funds generated by fees. The bill also repeals the statute that gives agencies credits toward future motor pool use. This was an incentive, back when the motor pool was first set up, for agencies to turn over their vehicles to the motor pool. This practice leaves the motor pool short of funds when it comes time to replace the vehicles.

Persons Testifying: Representative Alexander, prime sponsor; and Robert Bippert, General Administration.

Majority Report: Do pass. Signed by 27 members: Representatives Sommers, Chair; Fromhold, Vice Chair; Sehlin, Ranking Minority Member; Pearson, Assistant Ranking Minority Member; Alexander, Anderson, Boldt, Buck, Chandler, Clements, Cody, Conway, Cox, Dunshee, Grant, Hunter, Kagi, Kenney, Kessler, Linville, McDonald, McIntire, Miloscia, Ruderman, Schual-Berke, Sump and Talcott.

Summary of Recommendation of Committee On Appropriations Compared to Recommendation of Committee On State Government:

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: This bill makes two changes in the motor pool without any fiscal impact. Most of the GA's programs run on a successful fee-for-service basis with budgeted, nonappropriated funding. However, the motor pool is a combination of both appropriated and nonappropriated funding. This bill would move us towards making the purchases of the vehicles budgeted, but nonappropriated. In addition, this bill would repeal a requirement enacted when the motor pool was first established. As an incentive for agencies to transfer their vehicles to the motor pool, GA must credit state agencies for the value of these vehicles and then provide them with credits to offset their motor pool charges. This creates a funding shortfall when we have to replace those vehicles. This bill would enable us to work under an existing statute to reach mutually agreeable arrangements with agencies when taking over their vehicles. The motor pool currently provides agencies with a cheap and effective way to rent vehicles at about 50 percent of the current market rental rate.