HOUSE BILL REPORT

SSB 5287

As Reported by House Committee On:

Appropriations

Title: An act relating to eliminating accounts and funds.

Brief Description: Eliminating accounts and funds.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Hill and Hargrove; by request of Office of Financial Management).

Brief History:

Committee Activity:

Appropriations: 3/18/13, 3/25/13 [DPA].

Majority Report: Do pass as amended. Signed by 30 members: Representatives Hunter, Chair; Ormsby, Vice Chair; Alexander, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Wilcox, Assistant Ranking Minority Member; Buys, Cody, Dahlquist, Dunshee, Fagan, Green, Haigh, Haler, Harris, Hudgins, Hunt, Jinkins, Kagi, Maxwell, Morrell, Parker, Pedersen, Pettigrew, Pike, Ross, Schmick, Seaquist, Springer, Sullivan and Taylor.

Staff: Dave Johnson (786-7154).

Background:

In addition to the State General Fund, which may be expended for any lawful purpose, the state maintains several hundred funds and accounts that are dedicated to particular statutory purposes. These accounts generally fall into one of three categories: (1) accounts located in the State Treasury, which require appropriation by the Legislature; (2) accounts held in the custody of the State Treasurer, which may or may not require legislative appropriation; and (3) accounts located in state agencies and institutions of higher education, known as local accounts.

The Personnel Service Fund is an internal service fund used to support the provision of various personnel related services and programs. Examples of programs or services include statewide personnel administration, as well as training and recruitment. The account is appropriated. By statute, only the Office of Financial Management (OFM) and the Department of Enterprise Services (DES) are authorized to expend from the account. In the current biennium, expenditures from the account are made by the OFM, the DES, and the Public Employment Relations Commission.

The Enterprise Services Account is an internal service fund used to support the provision of various services and programs administered by the DES. Examples of programs and services include building and grounds, motor pool, facilities, and surplus property. Expenditures from the account may be either appropriated on nonappropriated. By statute, only the DES is authorized to expend from the account. In the current biennium, expenditures from the account are made by the DES.

Governor Gregoire, in her budget proposal, proposes to shift expenditure authority for certain activities from the appropriated Personnel Service Fund to the nonappropriated Enterprise Services Account. Her budget proposal would also shift expenditure authority from the nonappropriated Public Printing Revolving Account and the nonappropriated Data Processing Revolving Account to the nonappropriated Enterprise Services Account. Finally, Governor Gregoire assumed that the Enterprise Services Account would become entirely nonappropriated. Taken together, these changes net to zero.

The Department of Health may accept donations, grants, gifts, or other forms of voluntary contributions to support activities related to the creation and maintenance of the health care declarations registry and statewide public education campaigns related to the existence of the registry. Any funds received for that purpose are deposited into the appropriated Health Care Declarations Registry Account.

The Health Care Authority (HCA) is authorized to implement a self-funded or self-insured method of providing insurance coverage to subsidized enrollees of the basic health plan. To date, the HCA has not authorized such a method.

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Summary of Amended Bill:

The following accounts are eliminated:

• Freight Congestion Relief Account;

• Public Transportation Systems Account;

• Puyallup Tribal Settlement Account;

• Basic Health Plan Self-Insurance Reserve Account;

• Decontamination Account;

• Satellite System Management Account;

• Real Estate Excise Tax Electronic Technology Account;

• Health Care Declarations Registry Account;

• Rural Health Access Account;

• Manufacturing Innovation and Modernization Account;

• Public Printing Revolving Account; and

• Special Personnel Litigation Settlement Account.

Any residual balance of funds remaining in the Public Printing Revolving Account will be transferred to the Enterprise Services Account. Any residual balance of funds remaining in the Puyallup Tribal Settlement Account will be transferred to the Motor Vehicle Fund. Any residual balance of funds remaining in any other account abolished by the bill will be transferred to the State General Fund. Various statutory references to these accounts are eliminated or modified.

In addition to eliminating the Public Printer Revolving Account, a number of accounts are restructured or modified to implement policy changes proposed in Governor Gregoire's budget:

• The Personnel Service Fund may be used only by the OFM rather than by the OFM and the DES.

• The Enterprise Services Account may not be used for information technology activities.

• Funds related to services provided by the DES but held in the Personnel Services Account are transferred to the Enterprise Services Account.

Any donations, grants, gifts, or other forms of voluntary contributions to support activities related to the health care declarations registry will be deposited into the State General Fund. Those funds may be spent only with an appropriation.

Authorization for the HCA to implement a self-funded or self-insured method of providing insurance coverage to subsidized enrollees is eliminated.

The State Treasurer, the OFM, and the Code Reviser must review and recommend repeal or decodification of obsolete capital construction accounts and bond authorization statutes. Their recommendations will be submitted to the 2015 Legislature.

Amended Bill Compared to Substitute Bill:

The substitute bill makes the entirety of the Enterprise Services Account nonappropriated. The amended bill does not include that provision. The amended bill directs certain funds be transferred from the Personnel Service Fund to the Enterprise Services Account. The substitute bill does not include that provision.

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Appropriation: None.

Fiscal Note: Available.

Effective Date of Amended Bill: The bill contains an emergency clause and takes effect on June 30, 2013, except for section 4 relating to investment earnings, which is subject to a contingent effective date for technical reasons unrelated to the bill.

Staff Summary of Public Testimony:

(In support) This is a bill requested by the OFM. If the committee sees fit to move this bill forward, the OFM would support the same amendments as were in House Bill 1829.

(Opposed) None.

Persons Testifying: Shane Esquibel, Office of Financial Management.

Persons Signed In To Testify But Not Testifying: None.