HB 90-STATE TREASURY WARRANTS CHAIR SEATON announced that the first order of business was HOUSE BILL NO. 90, "An Act requiring warrants drawn by the Department of Administration against the state treasury to be negotiable instruments." 8:04:35 AM REPRESENTATIVE GRUENBERG, speaking on behalf of the House State Affairs Standing Committee, sponsor of HB 90, stated that the proposed legislation is the same as House Bill 373 from last year and would codify the supreme court's decision in National Bank of Alaska v. Univentures 1231 site 824 P.2d 1377 Alaska 1992. The bill would make treasury warrants negotiable instruments within the meaning of AS 45.03.104(a) in the Uniform Commercial Code. Representative Gruenberg explained that this will cure in statute a problem that had to be litigated up to the supreme court to ensure that treasury warrants were not dishonored in the technical commercial sense, so that financial institutions were not left "holding the bag" when people would negotiate [treasury warrants] and the state would refuse to honor them. 8:06:52 AM REPRESENTATIVE GRUENBERG, in response to a question from Representative Gardner, said he is not aware of anyone who would oppose this legislation. He said last year's bill passed through the House and resided in the Senate Rules Committee, where, he surmised, time ran out. In response to a comment by Representative Gatto, he said he hopes the House will pass the bill and it will make it through the Senate. He said [HB 90] is good business. 8:07:49 AM KIM GARNERO, Director, Division of Finance, Department of Administration, noted that since the supreme court decision the state has administered its warrants as negotiable instruments, thus, no administrative changes would be necessary as a result of HB 90. She offered to answer questions from the committee. 8:08:52 AM MICHELLE PREBULA, Cash Manager, Treasury Division, Department of Revenue, in response to a question from Representative Gatto, provided a brief description of her job and noted that there is a staff of six, including herself. In response to Chair Seaton regarding whether anything has been left out of the proposed legislation, she said she thinks HB 90 will do what the division wants it to and is a good bill. 8:10:17 AM MS. GARNERO noted that two years ago the legislature passed House Bill 109, which changed the warrant clearing process for stale dated warrants. She said, "This will be the final tweak necessary for it." 8:10:44 AM REPRESENTATIVE GRUENBERG noted that [HB 90] was basically drafted by the administration. 8:11:01 AM CHAIR SEATON, after ascertaining that there was no one to testify, closed public testimony. 8:11:16 AM REPRESENTATIVE GARDNER moved to report HB 90 out of committee with individual recommendations and the accompanying fiscal note. There being no objection, HB 90 was reported from the House State Affairs Standing Committee.