HB 166: "An Act relating to contributions from permanent fund dividends to community foundations, to certain educational organizations, and to certain other 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. 166 01 "An Act relating to contributions from permanent fund dividends to community 02 foundations, to certain educational organizations, and to certain other charitable 03 organizations that provide a positive youth development program, workforce 04 development, aid to the arts, or aid and services to the elderly, low-income individuals, 05 individuals in emergency situations, disabled individuals, or individuals with mental 06 illness; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 43.23 is amended by adding a new section to read: 09 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 10 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 11 permanent fund dividend application to allow an applicant who files electronically to 12 direct that money be subtracted from the dividend payment and contributed to one or 13 more of the campuses of the University of Alaska or to one or more educational
01 organizations, community foundations, or charitable organizations that appear on the 02 contribution list contained in the application. A contribution to an organization may be 03 $25, $50, $75, or $100 or may be 10 percent, 25 percent, 50 percent, or 100 percent of 04 the total dividend amount. If the total amount of contributions elected by an applicant 05 exceeds the amount of the permanent fund dividend that the applicant is entitled to 06 receive, contributions shall be deducted from the dividend in the order of priority 07 elected by the applicant on the application until the entire amount of the dividend that 08 the applicant is entitled to receive is allocated for contribution. The electronic dividend 09 application form must include notice that no money contributed will be used for 10 administrative costs incurred in implementing this section and that money from the 11 dividend fund will not be used for that purpose. 12 (b) The department shall list each campus of the University of Alaska and 13 shall list each other educational organization, community foundation, or charitable 14 organization eligible under (c) of this section on the contribution list by geographic 15 region in random order, and the order shall be changed each year. On the contribution 16 list, organizations shall also be grouped by type within each geographic region. The 17 department shall provide a statement of the contributions made by an individual that is 18 suitable for federal income tax purposes to each individual who elects to contribute 19 under (a) of this section. 20 (c) The department may not include an educational organization on the 21 contribution list unless the primary purpose of the organization is to provide 22 vocational training or postsecondary education. Other than a community foundation, 23 the department may not include a charitable organization on the contribution list for a 24 dividend year unless the primary purpose of the organization is to provide a positive 25 youth development program, workforce development, aid to the arts, or aid and 26 services to the elderly, low-income individuals, individuals in emergency situations, 27 disabled individuals, or individuals with mental illness. In addition, the educational 28 organization, community foundation, or charitable organization 29 (1) must apply for inclusion on the contribution list for the current 30 dividend year on the form required by the department before June 15 of the qualifying 31 year;
01 (2) must be exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 02 Revenue Code) as an educational or a charitable organization on the date of 03 application; 04 (3) must have been qualified for tax exempt status under 26 U.S.C. 05 501(c)(3) (Internal Revenue Code) as an educational or a charitable organization 06 during the two calendar years that immediately precede the year the application is 07 filed; 08 (4) must have a current Internal Revenue Service Form 990 on file 09 with the United States Department of the Treasury, Internal Revenue Service; 10 (5) must be directed by a voluntary board of directors or local advisory 11 board whose members are residents of the state; 12 (6) must have provided in the state aid or services of a type listed in 13 this subsection during the two calendar years that immediately precede the year the 14 application is filed; 15 (7) must receive at least $100,000 or five percent of its total annual 16 receipts, whichever is less, from contributions; 17 (8) must have completed and provided to the department a financial 18 audit with an unqualified opinion, conducted by an independent certified public 19 accountant for the fiscal year immediately preceding the year the application is filed if 20 the total annual budget of the organization exceeds $250,000 during that fiscal year; 21 and 22 (9) may not make grants or contributions to an organization that is 23 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 24 (d) Unless an appropriation specifically directs that the money be used for 25 costs incurred in implementing this section, the department may not use money from 26 the dividend fund for administrative costs incurred in implementing this section even 27 if it has been appropriated for costs of administering the dividend program. The 28 department may not use money contributed under (a) of this section for administrative 29 costs incurred in implementing this section. Contributions shall be distributed to each 30 organization as soon as practicable. 31 (e) The department may use an agent or enter into a contract under AS 36.30
01 for the implementation and operation of the contribution program under this section. 02 (f) A public agency that claims a dividend on behalf of an individual under 03 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 04 this section. 05 (g) The department may adopt regulations under AS 44.62 (Administrative 06 Procedure Act) to carry out the provisions of this section. If an organization disagrees 07 with an action of the department under this section and requests an administrative 08 hearing, the hearing shall be conducted by the office of administrative hearings 09 (AS 44.64.010). 10 (h) By January 20 of each year, the department shall submit a report to the 11 legislature identifying the organizations on the contribution list for the immediately 12 preceding year, together with the amount of contributions made to each of the 13 organizations. 14 (i) In this section, "community foundation" means a nonprofit, autonomous, 15 philanthropic institution that is organized and operated primarily as a permanent 16 collection of endowed funds for the long-term benefit of a defined geographic area 17 within one or more municipalities, that has a long-term goal of increasing its 18 permanent unrestricted charitable endowment to benefit the area served, that primarily 19 provides benefits by making grants and may also provide other forms of charitable 20 services, that makes grants that are not limited to providing one type of benefit or to 21 serving one population segment, and that makes grants to multiple grantees. 22 * Sec. 2. AS 43.23.062 is repealed December 31, 2010. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 26 permanent fund dividends for 2008, 2009, and 2010. 27 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).