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Committee reviews Administrative Services provisions including Bridges House fund, audit set-asides and surplus distribution changes
Summary
The committee reviewed DAS provisions in HB 2, including establishing a Bridges House special account, authority to waive audit set-asides for federal grants, a reduced working-capital reserve for White—s Farm surplus distribution, and a clause allowing DAS to pay fines or interest imposed on the state (with DOJ concurrence).
The committee reviewed several Department of Administrative Services (DAS) provisions included in House Bill 2 and raised questions about drafting, capitalization, and the purpose of new provisions.
Members discussed a Bridges House Special Account established in the state treasury to accept gifts, grants and other funds for the care of the Bridges House (the historic governor-related property). Legislators asked that the text consistently capitalize "Bridges House" to avoid confusion with general bridge-related language and requested clarification about who is authorized to accept gifts; committee members said the governor—s office language appears to designate the governor as the accepting official.
The panel examined language requiring agencies that receive federal grant funds to set aside an indirect-cost portion into a separate account to pay for audits of federal grants; the bill would allow the commissioner of administrative services to waive those set-aside requirements for the audit subdivision in limited circumstances. Members asked whether the waiver authority is constrained to audit-related costs within the statute or if it applies more broadly; staff said the provision appears tied to audit funding under the federal-grant audit subdivision and that additional clarification can be provided.
Lawmakers also reviewed a change to the White's Farm (surplus distribution) working-capital reserve, reducing the permitted reserve from six months of operation to three months and making the fund continually appropriated and non-lapsing; members debated whether three months of operating reserve is sufficient given lumpy and unpredictable auction receipts and asked DAS to comment on typical income volatility.
A new paragraph in the DAS section permits DAS to expend funds to pay penalties, fines, interest or other costs imposed on the state by the retirement system or the IRS, provided DAS seeks concurrence with the Department of Justice before processing such payments. Several members flagged that clause as notable and asked staff whether the administration anticipates material fines or interest assessments; staff said the paragraph was proposed by the governor—s office and the committee asked for historical context if any material payments had occurred.
Committee members recorded no formal objections but asked DAS and the governor—s office for clarifying language on capitalization, the scope of the audit-set-aside waiver, and historical context for any anticipated fines or penalties.
