HOUSE BILL REPORT

                  SB 5084

             As Reported By House Committee On:

                 Children & Family Services

Title:  An act relating to modifying the procedure for determining the administrative costs allowed for the community public health and safety networks.

Brief Description:  Modifying the procedure for determining the administrative costs allowed for the community public health and safety networks.

Sponsors:  Senators Hargrove and Long.

Brief History:

  Committee Activity:

Children & Family Services:  3/10/99, 3/31/99 [DP].

                 Brief Summary of Bill

$The definition of "administration" is amended to exclude procurement, payroll processing, personnel functions, management, maintenance and operation of space and property, data processing and computer services, indirect costs and organizational planning, consultation, coordination, and training.

$Networks may spend 10 percent of their funds or $20,000 per biennium on administration, whichever is greater.

HOUSE COMMITTEE ON CHILDREN & FAMILY SERVICES

Majority Report:  Do pass.  Signed by 10 members:  Representatives D. Sommers, Republican Co-Chair; Tokuda, Democratic Co-Chair; Boldt, Republican Vice Chair; Kagi, Democratic Vice Chair; Campbell; Carrell; Dickerson; Eickmeyer; Kastama and Pflug.

Staff:  David Knutson (786-7146).

Background:

The family policy council created 53 community public health and safety networks in 1994.  Twenty-six of the networks did not meet the statutory presumption that they would contain at least 40,000 people within their boundaries.  Community public health and safety networks are limited to spending no more than 10 percent of the funds available to them for administrative purposes.  Many of the smaller networks have experienced difficulty maintaining fiscal accountability and staying within the 10 percent administrative cap.

  The statutory definition of  administrative costs includes procurement, payroll processing,   personnel functions, management, maintenance and operation of space and property, data processing and computer services, accounting, budgeting, auditing, indirect costs and organization planning, consultation, coordination, and training.

Summary of Bill:

The definition of  administrative costs is changed to drop references to procurement, payroll processing, personnel functions, management, maintenance and operation of space and property, data processing and computer services, indirect costs and organizational planning, consultation, coordination, and training.  The network must ensure that administrative costs, as defined, are kept at 10 percent of the funds available to the network, or $20,000 per biennium, whichever is greater.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Small networks have a difficult time complying with fiscal accountability requirements unless they spend at least $20,000 per biennium on administration.

Testimony Against: None.

Testified:  (In support)  Senator Jim Hargrove (prime sponsor);  Laura Porter, Family Policy Council;  Jeanette Greenfield, Northshore/Shoreline Community Health and Safety Network;  Ken Hoben, South King County Community Network;  and Bob O'Brien, Mason County Community Network.