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Alaska State Legislature
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24th Alaska State Legislature
The 24th Alaska State Legislature
Alaska State Legislature's Representative Pete Kott
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Sponsor Statement for HB 494
Alaska State Legislature
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Last Updated:
March 22, 2004
Sue Stancliff 465-3777 (Jan-May)







"This legislation has the potential of saving the State of Alaska considerable funds when factoring in the reduction of check fraud, reissuing of lost or stolen checks, postage, check printing cost, reduced bank service fees, and reduced labor cost."
- Rep. Kott

 

"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."

HB 494 changes how the State of Alaska disburses funds. This change will save the state costs relating to issuing checks and warrants and resolve issues pertaining to time of disbursement and undistributed collections.

In February 2004, the State of Alaska issues approximately 81,000 checks: Unemployment Insurance Benefits Division, approximately 28,000; Division of Finance vendor and non-vendor, approximately 34,500; the Child Support Enforcement Division, approximately 13,000; Division of Retirement & Benefits, approximately 2,500; State of Alaska payroll, approximately 3,000. In 2003 the Permanent Fund Dividend Division issued 150,233 dividend checks.

This legislation has the potential of saving the State of Alaska considerable funds when factoring in the reduction of check fraud, reissuing of lost or stolen checks, postage, check printing cost, reduced bank service fees, and reduced labor cost. Additionally, it could correct a problem every state faces; undistributed collections in child support payments.

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