00 HOUSE BILL NO. 256 01 "An Act relating to donations to the state; and relating to contributions from permanent 02 fund dividends to municipalities and state and municipal agencies." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 37.05 is amended by adding a new section to article 7 to read: 05 Sec. 37.05.805. Donations to the state. (a) Except as provided in (d) of this 06 section, the state may accept a donation for a public purpose from a person in 07 accordance with this section. 08 (b) The Department of Administration shall maintain records for all donations 09 made under this section and separately account for the donations under AS 37.05.142. 10 The records must reflect the amount of the donation, the date of the donation, the 11 donor's intent, if any, with respect to how the donation is to be used, and the state 12 agency that receives the donation. If the donation is appropriated to a state agency, the 13 state agency shall maintain a record of the manner in which the donation was 14 expended. 01 (c) Nothing in this section requires the state or a state agency to accept a 02 donation. 03 (d) A law enforcement agency may not accept a donation under this section. 04 (e) Donations shall be deposited in the general fund. The legislature may 05 appropriate donations to the appropriate state agency based on the donor's intent, if 06 any. 07 (f) If donations made under this section include the donor's intent with respect 08 to how the money is to be used, the donation shall be accounted for separately as a 09 designated program receipt under AS 37.05.146(b), and appropriations of the program 10 receipts are not made from the unrestricted general fund. 11 (g) The Department of Administration may adopt regulations under AS 44.62 12 (Administrative Procedure Act) to implement this section. 13 (h) In this section, "state agency" has the meaning given in AS 37.05.990 and 14 also includes the legislative and judicial branches. 15  * Sec. 2. AS 43.23.062(a) is amended to read: 16 (a) Notwithstanding AS 43.23.069, the Department of Revenue shall prepare 17 the electronic Alaska permanent fund dividend application to allow an applicant who 18 files electronically to direct that money be subtracted from the dividend payment and 19 contributed to a state agency or one or more of the educational organizations, 20 community foundations, [OR] charitable organizations, municipalities, or municipal  21 agencies that appear on the contribution list contained in the application. A 22 contribution to a state agency or [AN] organization, municipality, or municipal  23 agency may be $25, $50, $75, $100, or more, in increments of $50, up to the total 24 amount of the permanent fund dividend that the applicant is entitled to receive. If the 25 total amount of contributions elected by an applicant exceeds the amount of the 26 permanent fund dividend that the applicant is entitled to receive, contributions shall be 27 deducted from the dividend in the order of priority elected by the applicant on the 28 application until the entire amount of the dividend that the applicant is entitled to 29 receive is allocated for contribution. The electronic dividend application form must 30 include notice that seven percent of the money contributed will be used for 31 administrative costs incurred in implementing this section, and money from the 01 dividend fund will not be used for that purpose. 02  * Sec. 3. AS 43.23.062(b) is amended to read: 03 (b) The department shall list each educational organization, community 04 foundation, or charitable organization eligible under (c) and (d) of this section, [AND] 05 each university campus that applies under (l) of this section, each municipality or  06 municipal agency that applies under (o) of this section, and each state agency on 07 the contribution list. The department shall maintain an electronic database for the 08 contribution list that is accessible to the public and that permits searches by 09 organization, agency, and municipal name, geographic location, and type. The 10 department shall provide a statement of the contributions made by an individual that is 11 suitable for federal income tax purposes to each individual who elects to contribute 12 under (a) of this section. 13  * Sec. 4. AS 43.23.062(d) is amended to read: 14 (d) Except for each campus of the University of Alaska, a municipality, or a  15 municipal agency, the department may include an educational organization, 16 community foundation, or charitable organization on the contribution list for a current 17 dividend year only if the organization  18 (1) before March 31 of the qualifying year, files an application for 19 inclusion on the list for that dividend year on the form required by the department; 20 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 21 Revenue Code) as an educational or a charitable organization on the date of 22 application; 23 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 24 (Internal Revenue Code) as an educational or a charitable organization during the two 25 calendar years that immediately precede the year the application is filed; 26 (4) unless exempted under federal law, has a current Internal Revenue 27 Service Form 990 on file with the United States Department of the Treasury, Internal 28 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for 29 the current year, has on file that form for the immediately preceding year; 30 (5) is directed by a voluntary board of directors or local advisory 31 board, a majority of whose members are residents of the state; 01 (6) if a community foundation, provided in the state aid during the two 02 calendar years that immediately precede the year the application is filed, or, if an 03 education organization or charitable organization, provided in the state services during 04 the two calendar years that immediately precede the year the application is filed; 05 (7) receives at least $100,000 or five percent of its total annual 06 receipts, whichever is less, from contributions; 07 (8) has completed and provided to the department a financial audit 08 with an unqualified opinion conducted by an independent certified public accountant 09 for the fiscal year to which the Internal Revenue Service Form 990 required under (4) 10 of this subsection applies; this paragraph applies only to an organization that is 11 required by the federal government to complete a financial audit by an independent 12 certified public accountant; 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  * Sec. 5. AS 43.23.062(f) is amended to read: 16 (f) The department shall charge an application fee of $250 for each 17 educational organization, community foundation, or charitable organization that files 18 an application under (d) of this section, [OR] for each university campus that files an 19 application under (l) of this section, or for each municipality or municipal agency  20 that applies under (o) of this section. The application fees shall be separately 21 accounted for under AS 37.05.142. The annual estimated balance in the account 22 maintained under AS 37.05.142 for application fees collected under this subsection 23 may be appropriated for costs of administering this section. 24  * Sec. 6. AS 43.23.062(m) is amended to read: 25 (m) In addition to the application fee in (f) of this section, the department shall 26 withhold a coordination fee from each organization, foundation, [OR] university 27 campus, municipality, and municipal agency that receives contributions under this 28 section in the immediately preceding dividend year. The coordination fee for an 29 organization, foundation, or university campus that receives contributions under this 30 section shall be seven percent of the amount of contributions reported by the 31 department under (j) of this section for the organization, foundation, or university 01 campus for the immediately preceding dividend year. The coordination fee shall be 02 separately accounted for under AS 37.05.142 and shall be accounted for separately 03 from the application fee collected under (f) of this section. The annual estimated 04 balance in the account maintained under AS 37.05.142 for coordination fees collected 05 under this subsection may be appropriated for costs of administering this section. The  06 department may not withhold a coordination fee for contributions to a state  07 agency.  08  * Sec. 7. AS 43.23.062(n) is amended to read: 09 (n) In this section, 10 (1) "community foundation" means a nonprofit, autonomous, 11 philanthropic institution that is organized and operated primarily as a permanent 12 collection of endowed funds for the long-term benefit of a defined geographic area 13 within one or more municipalities, that has a long-term goal of increasing its 14 permanent unrestricted charitable endowment to benefit the area served, that primarily 15 provides benefits by making grants and may also provide other forms of charitable 16 services, that makes grants that are not limited to providing one type of benefit or to 17 serving one population segment, and that makes grants to multiple grantees; 18 (2) "state agency" has the meaning given in AS 18.60.545. 19  * Sec. 8. AS 43.23.062 is amended by adding a new subsection to read: 20 (o) A municipality and municipal agency shall apply separately to be listed on 21 the contribution list for the current dividend year in the manner prescribed by the 22 department.