FINAL BILL REPORT

HB 378

                                  C 122 L 87

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

SYNOPSIS AS ENACTED

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, 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".

SUMMARY:

State accounting requirements for state employee insurance plans are amended to comply with generally accepted accounting principles (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 includes only associated staffing and administrative expenses.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    49     0

EFFECTIVE:July 26, 1987