00 HOUSE BILL NO. 496 01 "An Act relating to contributions from permanent fund dividends to certain educational 02 organizations and to certain charitable organizations that provide a positive youth 03 development program, workforce development, aid to the arts, or aid and services to the 04 elderly, low-income individuals, individuals in emergency situations, disabled 05 individuals, or individuals with mental illness; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07  * Section 1. AS 43.23 is amended by adding a new section to read: 08 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 09 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 10 permanent fund dividend application to allow an applicant who files electronically to 11 direct that money be subtracted from the dividend payment and contributed to one or 12 more of the campuses of the University of Alaska or to one or more educational or 13 charitable organizations that appear on the contribution list contained in the 01 application. A contribution to an organization may be $50, $75, or $100 or may be 10 02 percent, 25 percent, 50 percent, or 100 percent of the total dividend amount. If the 03 total amount of contributions elected by an applicant exceeds the amount of the 04 permanent fund dividend that the applicant is entitled to receive, contributions shall be 05 deducted from the dividend in the order of priority elected by the applicant on the 06 application until the entire amount of the dividend that the applicant is entitled to 07 receive is allocated for contribution. 08 (b) The department shall list each campus of the University of Alaska and 09 each qualified educational or charitable organization on the contribution list in random 10 order, and the order shall be changed each year. The department shall provide a 11 statement of the contributions made by an individual that is suitable for federal income 12 tax purposes to each individual who elects to contribute under (a) of this section. 13 (c) The department may not include an educational organization on the 14 contribution list unless the primary purpose of the organization is to provide 15 vocational training or postsecondary education, and the organization applies for 16 inclusion on the contribution list for the current dividend year on the form required by 17 the department before September 1 of the qualifying year. The department may not 18 include a charitable organization on the contribution list for a dividend year unless the 19 primary purpose of the organization is to provide a positive youth development 20 program, workforce development, aid to the arts, or aid and services to the elderly, 21 low-income individuals, individuals in emergency situations, disabled individuals, or 22 individuals with mental illness, and the organization 23 (1) applies for inclusion on the contribution list for the current 24 dividend year on the form required by the department before September 1 of the 25 qualifying year; 26 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 27 Revenue Code) as a charitable organization on the date of application; 28 (3) qualified for tax exempt status under 26 U.S.C. 501(c)(3) (Internal 29 Revenue Code) as a charitable organization during the two calendar years that 30 immediately precede the year the application is filed; 31 (4) has a current Internal Revenue Service Form 990 on file with the 01 United States Department of the Treasury, Internal Revenue Service; 02 (5) is directed by a voluntary board of directors or local advisory board 03 who are residents of the state; 04 (6) has provided in the state aid or services of a type listed in this 05 subsection during the two calendar years that immediately precede the year the 06 application is filed; 07 (7) receives at least $100,000 or five percent of its total annual receipts 08 from contributions, whichever is less; 09 (8) has completed and provides to the department a financial audit with 10 an unqualified opinion, conducted by an independent certified public accountant for 11 the fiscal year immediately preceding the year the application is filed if the total 12 annual budget of the organization exceeds $250,000 during that fiscal year; and 13 (9) does not make grants or contributions to an organization that is 14 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 15 (d) The department shall use an equal percentage of the total amount 16 contributed under (a) of this section to each organization for administrative costs 17 incurred in implementing this section. The amount remaining shall be distributed to 18 each organization as soon as practicable. 19 (e) The department may use an agent or enter into a contract under AS 36.30 20 for the implementation and operation of the contribution program under this section. 21 (f) A public agency that claims a dividend on behalf of an individual under 22 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 23 this section. 24 (g) By January 20 of each year, the department shall submit a report to the 25 legislature identifying the educational and charitable organizations on the contribution 26 list for the immediately preceding year, together with the amount of contributions 27 made to each of the organizations. 28  * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 31 permanent fund dividends for 2007, 2008, and 2009. 01  * Sec. 3. AS 43.23.062 is repealed December 31, 2009. 02  * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).