03/23/1994 02:41 PM Senate JUD

 SENATOR TAYLOR brought  CSHB 374(FIN)  (REIMBURSABLE SERVICE                  
 AGREEMENTS) before the committee as the next order of business.               
                                                                               
 RANDY WELKER, Legislative Auditor, Division of Legislative Audit,             
 explained the legislation is the result of an audit conducted last            
 year in the Department of Health and Social Services.  It was found           
 that the commissioner's office used reimbursable service agreements           
 (RSA's) to inappropriately increase the budget for the                        
 commissioner's office.  The legislation will provide some                     
 clarification on what the intended use of an RSA should be by                 
 putting the word "reimbursable" back in reimbursable service                  
 agreements and require the use of them to be based on an actual               
 cost of a service provided.  He added that there are a lot of                 
 legitimate uses for RSA's in acquiring services.                              
                                                                               
 Number 535                                                                    
                                                                               
 There being no further testimony on HB 374, SENATOR TAYLOR asked              
 for the pleasure of the committee.                                            
                                                                               
 SENATOR LITTLE moved that CSHB 374(FIN) be passed out of committee            
 with individual recommendations.  Hearing no objection, it was so             
 ordered.