This amendment changes how money and staff are handled for specific state offices by adding funds to some areas while cutting funding or jobs in others.
HB383
HB383: Funding State Ancillary Services
In one sentence
This law sets aside money to run specific state programs that provide services like insurance and risk management for the fiscal year starting July 1, 2026.
What it does
- Establishes or reestablishes special accounts called ancillary funds (also known as internal service funds, auxiliary accounts, or enterprise funds) for certain state agencies to use as working capital.
- Requires that money in these funds be used only when deposited from fees and other revenue sources into the state treasury.
- Allows the Commissioner of Administration to move staff, assets, functions, and funds between departments if it saves costs or improves efficiency through resource optimization.
- Mandates that agencies with budgets of $30 million or more must have an internal audit team led by a chief audit executive who follows specific global standards.
- Sets rules for handling leftover money from these funds at the end of the fiscal year, including returning unspent cash to the state treasurer if the fund is not renewed.
Who it affects
- State departments and agencies that run business-like services, such as insurance or risk management programs.
- The Office of Group Benefits, which manages health and life insurance for state employees.
- The Office of Risk Management, which handles self-insurance claims and legal defense costs for the state.
Limits and unknowns
- The law does not apply to the Department of Culture, Recreation and Tourism or elected officials listed in Schedule 04.
- Any unspent cash balances as of June 30, 2027, must be returned to the state treasurer by August 14, 2027, unless the fund is renewed for the next year.
- Program descriptions included in the bill are not part of the actual law.
Plain language
Terms to know
- Ancillary funds
- Special accounts used by agencies to pay for services they provide, such as internal support or insurance programs. They are also called internal service funds, auxiliary accounts, or enterprise funds.
- Working capital
- The amount of money an agency has available after subtracting what it owes (current liabilities) from the assets it owns right now (current assets).
- Chief audit executive
- A leader in charge of checking if a large state agency is following rules and managing its money correctly, who must report directly to the head of the agency.
Official record
Sources
Official summary
APPROPRIATIONS/ANCILLARY: Provides for the ancillary expenses of state government
Official activity
Bill history
- Effective date: 07/01/2026.H
- Signed by the Governor. Becomes Act No. 906.H
- Sent to the Governor for executive approval.H
- Signed by the President of the Senate.S
- Enrolled and signed by the Speaker of the House.H
- Read by title, roll called, yeas 98, nays 0, Senate amendments concurred in.H
- Scheduled for concurrence on 05/29/2026.H
- Received from the Senate with amendments.H
- Rules suspended. Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.S
- Read by title; made Special Order of the Day No. 5 for 5/26.S
- Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.S
- Rules suspended. Reported with amendments. Rules suspended. Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.S
- Read second time by title and referred to the Committee on Finance.S
- Received in the Senate. Read first time by title and placed on the Calendar for a second reading.S
- Read third time by title, roll called on final passage, yeas 104, nays 0. Finally passed, title adopted, ordered to the Senate.H
- Made Special Order of the day No. 6 for 04/16/2026.H
- Read by title, amended, ordered engrossed, passed to 3rd reading.H
- Reported with amendments (20-0).H
- Read by title, under the rules, referred to the Committee on Appropriations.H
- First appeared in the Interim Calendar on 2/27/2026.H
Changes
Amendments
6 stored
This amendment changes the official name for internal audit rules used by state auditors to 'Global Internal Audit Standards'.
This amendment changes the bill to require using Global Internal Audit Standards instead of the Practice of Internal Auditing.
This amendment records that the House voted to agree with changes made by the Senate to a bill about state government expenses.
This amendment adds $100 million for state employee benefits and a small payment to prison workers while removing several other funding amounts from the bill.
This amendment adds $100 million for state employee benefits and a small pay raise for prison officers while removing several other funding amounts from the bill.