SENATE BILL REPORT

SB 5661

BYSenators McCaslin and DeJarnatt; by request of Office of Financial Management

Revising computation of subsistence and travel expenses.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 14, 1989; February 20, 1989

Majority Report:  That Substitute Senate Bill No. 5661 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McCaslin, Chairman; Pullen, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  February 20, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 20, 1989

BACKGROUND:

State government spent $56 million in FY 87 for air travel, hotels, meals, car rental and in-state auto travel, according to the 1988 report of the Governor's Travel Management Task Force.

The Office of Financial Management (OFM) is responsible for setting rates of reimbursement to employees to cover travel expenses, lodging and meals.  The task force study and an Efficiency Commission study on motor vehicle operations made recommendations for change in two areas of the present method of reimbursement:

      -- Historically, the state has not allowed reimbursement for coffee and light refreshments at official meetings.  In 1986, however, an administrative policy was adopted by OFM to provide such refreshments at meetings where a majority of those attending are volunteers or members of unpaid advisory groups.  There is no specific authority for similar treatment of local officials or employees, private citizens, representatives from other countries, or state employees away from their normal workplaces.

      -- State employees should be encouraged to use private vehicles as an alternative to purchasing more state vehicles.  The statute allows mileage reimbursement up to the maximum provided for federal employees (now 22.5 cents).  OFM policy grants that rate for use of a private vehicle only if a state car is not available, and if it is both more advantageous and economical to the state.  Otherwise, the rate is 18 cents per mile.

OFM was encouraged to eliminate the lower rate and increase the higher rate to the amount equal to that allowed by the Internal Revenue Service as a federal deduction, now 24 cents per mile.

SUMMARY:

The Director of OFM may prescribe reimbursement procedures for meals, coffee and light refreshments served to officials or employees at meetings regardless of travel status if:

      -- The meeting is to conduct official state business or to provide formal training;

      -- The meals or refreshment are an integral part of the meeting or training session; and

      -- The affected agency head approves such payments in advance.

The Director of OFM may adopt additional requirements to prohibit abuse of authority.

Officials or employees may use privately-owned vehicles when it is found to be more advantageous or economical to the state than travel by other means.  The maximum mileage rate is amended to that set by the Internal Revenue Service.

EFFECT OF PROPOSED SUBSTITUTE:

Service of light refreshments or meals at a meeting or training session may only be provided for employees away from their workplaces.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: FOR:  Collum Liska, OFM; Skip Houser, Efficiency Commission; Mark Brown, WFSE