SENATE BILL REPORT

SB 5370

BYSenators Garrett and Zimmerman; by request of Office of Financial Management

Renaming the state employees' insurance board revolving fund.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 19, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Cantu, Deccio, Kreidler, Lee, McDonald, Rasmussen, Rinehart, Saling, Talmadge, William.

Senate Staff:Charles Langen (786-7715)

                  February 19, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 18, 1987

BACKGROUND:

The funds submitted as premium payments for the employee insurance benefits provided by the State Employees' Insurance Board (SEIB) are deposited in the state employees' insurance revolving fund.  Premium payments to the insurance vendors and the administrative costs of the Board are expended from the fund.

Recent changes in Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) require that such premium payments be shown separately in agency accounts.

SUMMARY:

The state employees' insurance revolving fund is renamed the state employees' principal account within the State Treasury.  Insurance contributions from agencies, etc., dividends and refunds are deposited in it.  Premium payments and amounts specified by the Board for transfer to the state employees' insurance administrative account are expenditures from the account.  This complies with GAAP and GASB.

The state employees' insurance administrative account is created within the State Treasury.  Operating funds for SEIB are appropriated from this account.  All earnings of investments of balances from the state employees' insurance principal account are deposited therein.

Fiscal Note:      none requested

Senate Committee - Testified: No one