03/22/2004 01:42 PM House FIN

 HOUSE BILL NO. 494                                                                                                           
                                                                                                                                
         An   Act    relating       to   the    disbursement         of   money     by   the                                    
         state,     including       employment       compensation,         unemployment                                         
         payments,       and    permanent        fund    dividends,        and    to    bank                                    
         investments        and    deposits      by    the    state;     and    providing                                       
         for an effective date.                                                                                                 
                                                                                                                                
 Co-Chair      Harris      MOVED    to    ADOPT    Work     Draft    Version      Q   of   HB
    dated    3-17-04.       Co-Chair      Williams       OBJECTED      for    purposes                                      
 of discussion.                                                                                                                 
                                                                                                                                
 MS.     SUE    STANCLIFF,         STAFF      TO    REPRESENTATIVE           PETE     KOTT,                                     
 explained       the    changes     in    Version     Q.      She   noted     that    there                                     
 was    discussion       during     the    last    hearing     of   the    provision       in                                   
 Section      19   that     required      the    departments        to   do    electronic                                       
 disbursements.          This    version      makes    it    optional      and    suggests                                      
 that    the   departments        use   electronic       disbursement.        The    change                                     
 in   Section     14   relates     to   stale    dating     and   unclaimed       property                                      
 and it was recommended by the Department of Administration.                                                                    
                                                                                                                                
 Ms.   Stancliff       continued,       Version      Q  deletes      the   section      that                                    
 repealed       the   word     "warrant"       and    inserts      "warrant"       because                                      
 warrants      would     be  issued     and    should     be   kept   in   statute.      The                                    
 Alaska     Railroad       recommended        the   last     change.     She    explained                                       
 that      the     Railroad        is    not     required        to     do    electronic                                        
 disbursements         because      it   is   exempt     under     current      statutes,                                       
 so   the   work    draft    removed     the   Railroad      to   avoid    changing      two                                    
 other parts of the bill.                                                                                                       
                                                                                                                                
 Co-Chair       Harris     noted     that     every     year    at   budget      time    the                                    
 Legislature        takes    up   the   stale     dated    warrants,       and   he   asked                                     
 if   the   bill    addresses      that    issue.      Ms.   Stancliff       deferred      to                                   
 the Department of Administration.                                                                                              
                                                                                                                                
 MS.    KIM   GARNERO,       DIRECTOR,       DIVISION      OF   FINANCE,      DEPARTMENT                                        
 OF    ADMINISTRATION,          stated      that     last    year     the    Legislature                                        
 amended      Title     37.05.180      that     affects      stale    dated     warrants.                                       
 She    explained       that    starting       last    year    the    warrants       became                                     
 part    of   unclaimed       property.       The    unclaimed       property      program                                      
 holds    the    money    until     the   claim     has   come    forward     instead      of                                   
 letting      it  lapse     into    the   General      Fund   and    waiting     to   get   a                                   
 new    appropriation         in   the   stale     date    process.      She    said    that                                    
 it   works      well,     and    that    there      wouldn't      be    further      stale                                     
 dated warrant legislation.                                                                                                     
                                                                                                                                
 Ms.     Garnero      also     noted      that     last     year     the     Legislature                                        
 amended      the    miscellaneous         claims     portion      that     is   the    two-                                    
 year-old       bills.      She    said     that    these      currently       only     come                                    
 before      the    Legislature        if    they    are    large      and    the    agency                                     
 couldn't pay for them out of the current budget.                                                                               
                                                                                                                                
 Representative           Foster      MOVED     to    report       CSHB     494    out     of                                   
 Committee          with       individual           recommendations             and      the                                    
 accompanying        fiscal     notes.      There     being    NO   OBJECTION,       it  was                                    
 so ordered.                                                                                                                    
                                                                                                                                
 CSHB    494(FIN)      was   REPORTED      out   of   Committee      with    a  "do   pass"                                     
 recommendation and seven new fiscal impact notes.