SENATE BILL REPORT

HB 378

BYRepresentatives Hankins, Walk and H. Sommers; by request of  Office of Financial Management

Renaming the state employees' insurance board revolving fund.

House Committe on State Government

Senate Committee on Ways & Means

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Deccio, Kreidler, McDonald, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Charles Langen (786-7715)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

The State Employees' Insurance Board (SEIB), in conjunction with the Department of Personnel, manages insurance plans for state employees.  The State Employees' Insurance Revolving Fund finances SEIB's expenses, which include the payment of insurance plan premiums to insurance providers, and staff salaries and other administrative costs.

In 1984 the Legislature enacted provisions requiring the Director of the Office of Financial Management to adopt a comprehensive budgeting, accounting, and reporting system that embodies national generally accepted accounting principles, known as "GAAP" (RCW 43.88.037).

SUMMARY:

State accounting requirements for state employee insurance plans are amended as follows to comply with GAAP:

The State Employees' Insurance Revolving Fund is renamed the "State Employees' Insurance Principal Account."  Monies in the existing Revolving Fund are divided between the Principal Account and a newly created "State Employees' Insurance Administrative Account."  The Principal Account includes only the principal activities of the existing Revolving Fund (payment of premiums to insurance providers), while the Administrative Account covers only associated staffing and administrative expenses.

Fiscal Note:      none requested

Senate Committee - Testified: No one