SENATE BILL REPORT
SB 5474
As Reported By Senate Committee On:
Ways & Means, February 21, 2001
Title: An act relating to consolidating funds within the general administration services account.
Brief Description: Modifying provisions concerning the general administration services account.
Sponsors: Senators B. Sheldon, Winsley, Spanel, Long and Fraser; by request of Department of General Administration.
Brief History:
Committee Activity: Ways & Means: 2/20/01, 2/21/01 [DPS].
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: That Substitute Senate Bill No. 5474 be substituted therefor, and the substitute bill do pass.
Signed by Senators Brown, Chair; Constantine, Vice Chair; Fairley, Vice Chair; Fraser, Hewitt, Honeyford, Kline, Kohl‑Welles, Long, Parlette, Rasmussen, Regala, Rossi, Sheahan, B. Sheldon, Snyder, Spanel, Thibaudeau, Winsley and Zarelli.
Staff: Michael Groesch (786‑7434)
Background: The Department of General Administration (GA) provides various services to state agencies including: engineering and architectural services; facilities maintenance; property leasing; goods and services procurement; mail processing; operation of the state motor pool; and management of insurance claims against the state. The department generates revenues through rates or fees for services and conducts most of its operations through the General Administration Services Account. The account was created in Chapter 105, Laws of 1998 (Substitute House Bill 2394) and consolidated a number of internal service funds relating to the various services provided by GA. The various internal service activities remain distinct subaccounts within the General Administration Services Account. The expenditures from the subaccounts retain their status as either appropriated or non-appropriated expenditures from the period prior to the creation of the consolidated account. This resulted in a mixed fund where a portion of the fund is appropriated and the remaining parts of the fund are non-appropriated. Purchasing and contract administration remain appropriated subaccounts within the General Administration Services Account.
The purchasing and contract administration program negotiates contracts for goods and services with vendors. Once these contracts are negotiated, state agencies, institutions of higher education, political subdivisions, and qualified nonprofit organizations are able to purchase goods and services under the contracts. Payments for goods and services are made directly to the contractors. State agencies and institutions of higher education pay 1.5 percent of their total dollar usage of state contracts to GA. Participating political subdivisions and nonprofit organizations pay annual subscription fees to GA. These fees are deposited in the General Administration Services Account.
The State Energy Office was eliminated by Chapter 186, Laws 1996 (Fourth Substitute House Bill 2009) and the functions of the office moved to other state agencies. One of the functions moved to the Department of General Administration includes energy life cycle cost analysis.
Public agencies must conduct energy life cycle cost analyses (ELCCA) of their facilities. Any public agency may contract with GA for ELCCA services, but school districts are required to contract with GA for ELCCA services for any new construction project greater than 25,000 sq. ft. or any remodeling project greater than 50 percent of the replacement value of a facility. School districts and public agencies pay GA a flat $2,000 fee for each ELCCA analysis conducted.
Fees paid by school districts and other public agencies for ELCCA services are deposited into the Energy Efficiency Services Account. The Energy Efficiency Services Account is an appropriated account separate and distinct from the General Administration Services Account.
Summary of Substitute Bill: The requirement that purchasing and contract administration activities be subject to appropriation is removed. The director of the GA may authorize expenditures for these activities from the General Administration Services Account.
The Energy Efficiency Services Account is eliminated. Fees paid by school districts and other public agencies for ELCCA services are deposited into the General Administration Services Account and are not subject to appropriation.
Substitute Bill Compared to Original Bill: Language is added clarifying that the General Administration Services Account is a budgeted, non‑appropriated account with the exception of the cost of goods sold and the cost of stamps. Two additional statutory references to the Energy Efficiency Services Account that were not included in the original bill are amended.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: This is primarily a house‑keeping bill that will assist in streamlining record keeping and accounting.
Testimony Against: None.
Testified: Ron McQueen, Assistant Director, Department of General Administration (pro).