h_tra_2017a_2017-04-12t13:33:28z0 Hearing Summary

Date: 04/12/2017

Location: HCR 0112

01:34 PM -- HB17-1296



Representatives Nordberg and Kraft-Tharp introduced House Bill 17-1296. The bill, recommended by the Legislative Audit Committee, clarifies the criteria and requirements for the assignment of state-owned vehicles to state agencies and employees. Under this bill, the assignment of a vehicle to a state agency is only authorized when the agency's use of the vehicle is likely to meet the minimum required mileage for the vehicle's intended work, or if the agency can justify the need for a permanent assignment of a vehicle for a unique use.



State agency refers mainly to Executive Branch agencies, and it does not include Judicial or Legislative Branch agencies, or institutions of higher education. However, the definition of agency does include the State Board of Stock Inspection Commissioners. A state agency may assign a vehicle to an officer or employee of the agency for business and commuting purposes for the following reasons:



• assignment of the vehicle is necessary to conduct official and legitimate state business;

• the assignment either meets the federal Internal Revenue Service definition of qualified nonpersonal use or is the most cost efficient means of transportation; and

• assignment of the vehicle complies with any additional criteria established in rules adopted by the Department of Personnel and Administration (DPA).



The bill specifies that an officer or employee of an agency must pay income tax on the value of the fringe benefit of an assigned vehicle.



The authorization of a vehicle assignment must be submitted in writing to the Division of Central Services in DPA by the executive director of an agency or their designee. The director of the division must establish a program and adopt rules to annually to verify that the assignment of all state owned vehicles comply with state and federal law.



On or before September 1, 2019, the DPA is required to report to the Legislative Audit Committee on the implementation and enforcement of this bill.



01:42 PM -- Ms. Nina Frant, representing the Office of the State Auditor, testified in support of the bill. She answered several committee questions.



01:51 PM -- Mr. Bob Jaros, representing DPA, testified in support of the bill.



01:55 PM



Representatives Nordberg and Kraft-Tharp gave some closing remarks on the bill.