Legislature(2003 - 2004)
04/24/2003 03:40 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HB 109-TREASURY WARRANTS/LAPSED APPROPRIATIONS
LINDA SYLVESTER, staff to Representative Bruce Weyhrauch,
explained this bill was introduced at the request of Governor
Murkowski and would help the Department of Administration by
updating certain accounting procedures.
State warrants currently become stale dated after two years and
claims for payment of these warrants must be done through the
supplemental budget process. HB 109 drops the time from two
years to six months and, instead of being handled through the
supplemental budget process, all stale dated checks would go to
the unclaimed property fund. The process would be expedited and
the funds could be presented to the claimant at any time. In
addition, miscellaneous claims that are older than one year are
also addressed and would no longer be paid from the supplemental
budget.
JOE THOMAS, State Accountant with the Department of
Administration, advised he was available to answer questions. HB
109 would expedite the payment process for stale dated warrants
and miscellaneous claims.
CHAIR GARY STEVENS asked if money from stale dated warrants is
transferred to the Unclaimed Property Section.
MR. THOMAS explained the current process is that a stale dated
warrant stays in the general fund. When a claim is made, money
must be appropriated for that claim to be paid. If HB 109
becomes law, monies from stale dated checks and miscellaneous
expenses would be turned over to the Unclaimed Property Section
and they would publish the names of those with unclaimed
property. The individual could then come forward and receive
payment.
CHAIR GARY STEVENS asked if the money stays in the Unclaimed
Property Section forever.
MR. THOMAS deferred the question to Rachel Lewis.
RACHEL LEWIS, Administrator of the Unclaimed Property Program,
said this bill brings the process in line with AS 34.45.230. Any
un-cashed state, local or municipal government checks should be
turned over to the Alaska Department of Revenue after one year.
This hasn't worked because the stale date for those checks was
two years. HB 109 would stale date checks after six months and
agencies would then get a list of stale dated warrants to
review. The Unclaimed Property Program would then receive a list
of names to publish and they would keep the data in perpetuity.
Not all unclaimed money is claimed and Alaska is able to use the
money until the claimant comes forward. She advised she
typically transfers 75 to 80 percent of the monies into the
general fund and the balance is kept to pay claims.
SENATOR FRED DYSON asked what this amounted to in a year.
MS. LEWIS replied approximately $3 million in cash and because
they are able to liquidate stocks and bonds after three years,
she probably sells $.5 million in securities every three years.
She estimated she transfers between $3 million and $5 million a
year into the general fund.
SENATOR DYSON asked if they receive other types of assets.
MS. LEWIS said they don't get tangible property other than safe
deposit contents.
CHAIR GARY STEVENS asked if interest accrues on unpaid warrants.
MS. LEWIS advised they only pay interest if they receive an
interest bearing account and they would pay interest on those
for up to ten years. Savings accounts are about the only
accounts of that type, but they do pay dividends and proceeds
from stocks that accrue while held in the original format.
CHAIR GARY STEVENS asked for a motion.
SENATOR GRETCHEN GUESS made a motion to move HB 109 from
committee with individual recommendations and attached zero
fiscal note. There being no objection, it was so ordered.
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