CSHB 166(STA): "An Act relating to contributions from permanent fund dividends to community foundations, to certain educational organizations, and to certain other charitable organizations; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 166(STA) 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; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.23 is amended by adding a new section to read: 06 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 07 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 08 permanent fund dividend application to allow an applicant who files electronically to 09 direct that money be subtracted from the dividend payment and contributed to one or 10 more of the educational organizations, community foundations, or charitable 11 organizations that appear on the contribution list contained in the application. A 12 contribution to an organization may be $25, $50, $75, or $100 or may be 10 percent, 13 25 percent, 50 percent, or 100 percent of the total dividend amount. If the total amount 14 of contributions elected by an applicant exceeds the amount of the permanent fund
01 dividend that the applicant is entitled to receive, contributions shall be deducted from 02 the dividend in the order of priority elected by the applicant on the application until 03 the entire amount of the dividend that the applicant is entitled to receive is allocated 04 for contribution. The electronic dividend application form must include notice that no 05 money contributed will be used for administrative costs incurred in implementing this 06 section and that money from the dividend fund will not be used for that purpose. 07 (b) The department shall list each campus of the University of Alaska and 08 shall list each other educational organization, community foundation, or charitable 09 organization eligible under (c) and (d) of this section on the contribution list by 10 geographic region in random order, and the order shall be changed each year. On the 11 contribution list, organizations shall also be grouped by type within each geographic 12 region. The department shall provide a statement of the contributions made by an 13 individual that is suitable for federal income tax purposes to each individual who 14 elects to contribute under (a) of this section. 15 (c) The department may not include on the contribution list an educational 16 organization, community foundation, or charitable organization that is the affiliate of a 17 group. For purposes of this subsection, 18 (1) "affiliate" means an organization or foundation that directly or 19 indirectly through one or more intermediaries controls, is controlled by, or is under 20 common control with, a group; 21 (2) "group" has the meaning given in AS 15.13.400(8)(B). 22 (d) The department may include an educational organization, community 23 foundation, or charitable organization on the contribution list for a current dividend 24 year only if the organization 25 (1) files an application for inclusion on the list for that dividend year 26 on the form required by the department before June 15 of the qualifying year; 27 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 28 Revenue Code) as an educational or a charitable organization on the date of 29 application; 30 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 31 (Internal Revenue Code) as an educational or a charitable organization during the two
01 calendar years that immediately precede the year the application is filed; 02 (4) has a current Internal Revenue Service Form 990 on file with the 03 United States Department of the Treasury, Internal Revenue Service; 04 (5) is directed by a voluntary board of directors or local advisory board 05 whose members are residents of the state; 06 (6) provided in the state aid or services during the two calendar years 07 that immediately precede the year the application is filed; 08 (7) receives at least $100,000 or five percent of its total annual 09 receipts, whichever is less, from contributions; 10 (8) has completed and provided to the department a financial audit 11 with an unqualified opinion, conducted by an independent certified public accountant 12 for the fiscal year immediately preceding the year the application is filed if the total 13 annual budget of the organization exceeds $250,000 during that fiscal year; and 14 (9) does not make grants or contributions to an organization that is 15 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 16 (e) Unless an appropriation specifically directs that the money be used for 17 costs incurred in implementing this section, the department may not use money from 18 the dividend fund for administrative costs incurred in implementing this section even 19 if it has been appropriated for costs of administering the dividend program. The 20 department may not use money contributed under (a) of this section for administrative 21 costs incurred in implementing this section. Contributions shall be distributed to each 22 organization as soon as practicable. 23 (f) The department may use an agent or enter into a contract for the 24 implementation and operation of the contribution program under this section. Before 25 executing a contract with a corporation or other organization, the organization must 26 provide a copy of its policies and procedures to the department. A contract entered 27 into under this subsection is exempt from AS 36.30 (State Procurement Code). 28 (g) A public agency that claims a dividend on behalf of an individual under 29 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 30 this section. 31 (h) The department may adopt regulations under AS 44.62 (Administrative
01 Procedure Act) to carry out the provisions of this section. If an organization disagrees 02 with an action of the department under this section and requests an administrative 03 hearing, the hearing shall be conducted by the office of administrative hearings 04 (AS 44.64.010). 05 (i) By January 20 of each year, the department shall submit a report to the 06 legislature identifying the organizations on the contribution list for the immediately 07 preceding year, together with the amount of contributions made to each of the 08 organizations. 09 (j) In this section, "community foundation" means a nonprofit, autonomous, 10 philanthropic institution that is organized and operated primarily as a permanent 11 collection of endowed funds for the long-term benefit of a defined geographic area 12 within one or more municipalities, that has a long-term goal of increasing its 13 permanent unrestricted charitable endowment to benefit the area served, that primarily 14 provides benefits by making grants and may also provide other forms of charitable 15 services, that makes grants that are not limited to providing one type of benefit or to 16 serving one population segment, and that makes grants to multiple grantees. 17 * Sec. 2. AS 43.23.062 is repealed December 31, 2010. 18 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 21 permanent fund dividends for 2008, 2009, and 2010. 22 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).