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HB 496: "An Act relating to contributions from permanent fund dividends to certain educational organizations and to certain charitable organizations that provide a positive youth development program, workforce development, aid to the arts, or aid and services to the elderly, low-income individuals, individuals in emergency situations, disabled individuals, or individuals with mental illness; and providing for an effective date."

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).