04/15/1994 09:05 AM Senate FIN

                                                                               
  SENATE BILL NO. 377                                                          
                                                                               
       An Act relating to state  agency fiscal procedures; and                 
       providing for an effective date.                                        
                                                                               
  Co-chair  Frank  directed that  SB  377  be brought  on  for                 
  discussion.  CHERYL FRASCA, Office of the Governor, remained                 
  before committee to provide a sectional review.                              
                                                                               
  Sec. 1.   Limits the life of a warrant from two years to one                 
  year.                                                                        
            After the  initial year, the  warrant would become                 
            stale  dated.   DON WANIE,  Director, Division  of                 
                                                                               
                                                                               
            Finance,  Dept.  of  Administration,  came  before                 
            committee.    He  noted  an  existing conflict  in                 
            statutes where AS 37.05. stale  dates a warrant at                 
            two years while AS 34.45.250  provides that such a                 
            warrant becomes  unclaimed property  at one  year.                 
            The intent of the proposed  bill is to bring stale                 
            dating  requirements  into  line   with  unclaimed                 
            property  provisions.   After  one year,  warrants                 
            would  be  submitted  to  unclaimed  property  for                 
            payment from a  trust within the Dept.  of Revenue                 
            rather than through the supplemental bill process.                 
                                                                               
                                                                               
  Sec. 2.   Allows payment of  obligations that  are not  more                 
  than                                                                         
            four (rather than two) years old from current year                 
            appropriations.                                                    
                                                                               
  Sec. 3.   Changes the  terminal leave statute as  it relates                 
  to                                                                           
            non-covered employees.  Under the present process,                 
            when a non-covered employee  terminates and cashes                 
            out  leave, the employee  receives credit  for any                 
            holidays  that  occur  during the  computed  leave                 
            time.  The proposed bill  amends that practice and                 
            would  not give credit for a  holiday or any other                 
            increase that  would have occurred  had employment                 
            not  been  terminated.   SHARON  BARTON, Director,                 
            Division  of  Administrative  Services,  Dept.  of                 
            Administration, further advised that  the employee                 
            would have to take payment for accrued leave in  a                 
            lump-sum manner rather than in installments.                       
                                                                               
  Sec. 4.   Changes  the time frame for stale dating permanent                 
  fund                                                                         
            dividend warrants to one year.                                     
                                                                               
  Sec. 5.   Relates to terminal  leave.  At the  present time,                 
  if an                                                                        
            employee were  to terminate with two  months leave                 
            on the books  and go back  to work at another  job                 
            within one month,  the employee must pay  back the                 
            other month of  leave.  The proposed  bill repeals                 
            that requirement.                                                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:50 a.m.