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 494 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 Stancliff continued, Version Q deletes the section that repealed the word "warrant" and inserts "warrant" because warrants would be issued and should be kept in statute.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.