CSHB 166(FIN): "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(FIN) 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, $100, or more, in increments of 13 $50, up to the total amount of the permanent fund dividend that the applicant is 14 entitled to receive. If the total amount of contributions elected by an applicant exceeds
01 the amount of the permanent fund dividend that the applicant is entitled to receive, 02 contributions shall be deducted from the dividend in the order of priority elected by 03 the applicant on the application until the entire amount of the dividend that the 04 applicant is entitled to receive is allocated for contribution. The electronic dividend 05 application form must include notice that no money contributed will be used for 06 administrative costs incurred in implementing this section and that money from the 07 dividend fund will not be used for that purpose. 08 (b) The department shall list each campus of the University of Alaska and 09 shall list each other educational organization, community foundation, or charitable 10 organization eligible under (c) and (d) of this section on the contribution list by 11 geographic region in random order, and the order shall be changed each year. On the 12 contribution list, organizations shall also be grouped by type within each geographic 13 region. The department shall provide a statement of the contributions made by an 14 individual that is suitable for federal income tax purposes to each individual who 15 elects to contribute under (a) of this section. 16 (c) The department may not include on the contribution list an educational 17 organization, community foundation, or charitable organization that is the affiliate of a 18 group. For purposes of this subsection, 19 (1) "affiliate" means an organization or foundation that directly or 20 indirectly through one or more intermediaries controls, is controlled by, or is under 21 common control with, a group; 22 (2) "group" has the meaning given in AS 15.13.400(8)(B). 23 (d) The department may include an educational organization, community 24 foundation, or charitable organization on the contribution list for a current dividend 25 year only if the organization 26 (1) files an application for inclusion on the list for that dividend year 27 on the form required by the department before June 15 of the qualifying year; 28 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 29 Revenue Code) as an educational or a charitable organization on the date of 30 application; 31 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3)
01 (Internal Revenue Code) as an educational or a charitable organization during the two 02 calendar years that immediately precede the year the application is filed; 03 (4) has a current Internal Revenue Service Form 990 on file with the 04 United States Department of the Treasury, Internal Revenue Service; 05 (5) is directed by a voluntary board of directors or local advisory board 06 whose members are residents of the state; 07 (6) provided in the state aid or services during the two calendar years 08 that immediately precede the year the application is filed; 09 (7) receives at least $100,000 or five percent of its total annual 10 receipts, whichever is less, from contributions; 11 (8) has completed and provided to the department a financial audit 12 with an unqualified opinion, conducted by an independent certified public accountant 13 for the fiscal year immediately preceding the year the application is filed if the total 14 annual budget of the organization exceeds $250,000 during that fiscal year; and 15 (9) does not make grants or contributions to an organization that is 16 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 17 (e) Unless an appropriation specifically directs that the money be used for 18 costs incurred in implementing this section, the department may not use money from 19 the dividend fund for administrative costs incurred in implementing this section even 20 if it has been appropriated for costs of administering the dividend program. The 21 department may not use money contributed under (a) of this section for administrative 22 costs incurred in implementing this section. Contributions shall be distributed to each 23 organization as soon as practicable. 24 (f) The department may use an agent or enter into a contract for the 25 implementation and operation of the contribution program under this section. Before 26 executing a contract with a corporation or other organization, the organization must 27 provide a copy of its policies and procedures to the department. A contract entered 28 into under this subsection is exempt from AS 36.30 (State Procurement Code). 29 (g) A public agency that claims a dividend on behalf of an individual under 30 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 31 this section.
01 (h) The department may adopt regulations under AS 44.62 (Administrative 02 Procedure Act) to carry out the provisions of this section. If an organization disagrees 03 with an action of the department under this section and requests an administrative 04 hearing, the hearing shall be conducted by the office of administrative hearings 05 (AS 44.64.010). 06 (i) By January 20 of each year, the department shall submit a report to the 07 legislature identifying the organizations on the contribution list for the immediately 08 preceding year, together with the amount of contributions made to each of the 09 organizations. 10 (j) In this section, "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 * Sec. 2. AS 43.23.062 is repealed on 19 (1) December 31, 2010, if AS 43.23.062 first applies to the permanent fund 20 dividend for 2008; 21 (2) December 31, 2011, if AS 43.23.062 first applies to the permanent fund 22 dividend for 2009. 23 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY; NOTIFICATION. (a) The Department of Revenue shall make 26 every effort to implement AS 43.23.062, enacted by sec. 1 of this Act, so that it will apply to 27 the Alaska permanent fund dividends for 2008, 2009, and 2010. If the department fails to 28 implement AS 43.23.062 in time for it to apply to the 2008 dividends, AS 43.23.062 applies 29 to the dividends for 2009, 2010, and 2011. 30 (b) On December 30 of the last year that, under (a) of this section, AS 43.23.062 31 applies to dividends, the Department of Revenue shall notify the revisor of statutes that
01 AS 43.23.062 no longer applies. 02 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).