SCS CSHB 166(FIN) am S: "An Act relating to contributions from permanent fund dividends to community foundations, to certain educational organizations, and to certain other charitable organizations; relating to the execution upon permanent fund dividends; amending Rule 89, Alaska Rules of Civil Procedure; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 166(FIN) am S 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; relating to the execution upon permanent fund dividends; amending Rule 04 89, Alaska Rules of Civil Procedure; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.23 is amended by adding a new section to read: 07 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 08 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 09 permanent fund dividend application to allow an applicant who files electronically to 10 direct that money be subtracted from the dividend payment and contributed to one or 11 more of the educational organizations, community foundations, or charitable 12 organizations that appear on the contribution list contained in the application. A 13 contribution to an organization may be $25, $50, $75, $100, or more, in increments of 14 $50, up to the total amount of the permanent fund dividend that the applicant is 15 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 06 (1) contribution changes may not be made after the applicant files the 07 electronic permanent fund dividend application; and 08 (2) no money contributed will be used for administrative costs incurred 09 in implementing this section and money from the dividend fund will not be used for 10 that purpose. 11 (b) The department shall list each campus of the University of Alaska and 12 shall list each other educational organization, community foundation, or charitable 13 organization eligible under (c) and (d) of this section on the contribution list by 14 geographic region in random order, and the order shall be changed each year. On the 15 contribution list, organizations shall also be grouped by type within each geographic 16 region. The department shall provide a statement of the contributions made by an 17 individual that is suitable for federal income tax purposes to each individual who 18 elects to contribute under (a) of this section. 19 (c) Other than a community foundation, the department may not include a 20 charitable organization on the contribution list for a dividend year unless the purpose 21 of the charitable organization is to provide programs for youth development, 22 workforce development, arts and culture, aid and services to the elderly, low-income 23 individuals, individuals in emergency situations, victims of crime, disabled 24 individuals, individuals with mental illness, primary, vocational and higher education, 25 health and dental care, recreational facilities, child abuse and neglect, economic 26 development, food assistance, libraries, public broadcasting, recycling of waste, 27 animal rescue, and zoos. The department may not include on the contribution list an 28 educational organization, community foundation, or charitable organization that is the 29 affiliate of a group. For purposes of this subsection, 30 (1) "affiliate" means an organization or foundation that directly or 31 indirectly through one or more intermediaries controls, is controlled by, or is under
01 common control with, a group; 02 (2) "group" has the meaning given in AS 15.13.400(8)(B). 03 (d) Except for each campus of the University of Alaska, the department may 04 include an educational organization, community foundation, or charitable organization 05 on the contribution list for a current dividend year only if the organization 06 (1) files an application for inclusion on the list for that dividend year 07 on the form required by the department before June 15 of the qualifying year; 08 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 09 Revenue Code) as an educational or a charitable organization on the date of 10 application; 11 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 12 (Internal Revenue Code) as an educational or a charitable organization during the two 13 calendar years that immediately precede the year the application is filed; 14 (4) has a current Internal Revenue Service Form 990 on file with the 15 United States Department of the Treasury, Internal Revenue Service, or, if the Internal 16 Revenue Service has granted a filing extension for the current year, has on file that 17 form for the immediately previous year; 18 (5) is directed by a voluntary board of directors or local advisory board 19 whose members are residents of the state; 20 (6) provided in the state aid or services during the two calendar years 21 that immediately precede the year the application is filed; 22 (7) receives at least $100,000 or five percent of its total annual 23 receipts, whichever is less, from contributions; 24 (8) has completed and provided to the department a financial audit 25 with an unqualified opinion, conducted by an independent certified public accountant 26 for the fiscal year to which the Internal Revenue Service Form 990 required under (4) 27 of this subsection applies; this paragraph applies only to an organization with a total 28 annual budget that exceeds $250,000 during the fiscal year to which the Internal 29 Revenue Service Form 990 required under (4) of this subsection applies; and 30 (9) does not make grants or contributions to an organization that is 31 exempt from taxation under 26 U.S.C. 501(c)(4) or (6).
01 (e) Unless an appropriation specifically directs that the money be used for 02 costs incurred in implementing this section, the department may not use money from 03 the dividend fund for administrative costs incurred in implementing this section even 04 if it has been appropriated for costs of administering the dividend program. The 05 department may not use money contributed under (a) of this section for administrative 06 costs incurred in implementing this section. Contributions shall be distributed to each 07 organization as soon as practicable. 08 (f) The department may establish an application fee not to exceed $50 for each 09 educational organization, community foundation, or charitable organization that files 10 an application under (d) of this section. The application fees shall be separately 11 accounted for under AS 37.05.142. The annual estimated balance in the account 12 maintained under AS 37.05.142 for application fees collected under this subsection 13 may be appropriated for costs of administering this section. 14 (g) The department may use an agent or enter into a contract for the 15 implementation and operation of the contribution program under this section. Before 16 executing a contract with a corporation or other organization, the organization must 17 provide a copy of its policies and procedures to the department. A contract entered 18 into under this subsection is exempt from AS 36.30 (State Procurement Code). 19 (h) A public agency that claims a dividend on behalf of an individual under 20 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 21 this section. 22 (i) The department may adopt regulations under AS 44.62 (Administrative 23 Procedure Act) to carry out the provisions of this section. If an organization disagrees 24 with an action of the department under this section and requests an administrative 25 hearing, the hearing shall be conducted by the office of administrative hearings 26 (AS 44.64.010). 27 (j) By January 20 of each year, the department shall prepare a report 28 identifying the organizations on the contribution list for the immediately preceding 29 year, together with the amount of contributions made to each of the organizations, and 30 shall notify the legislature that the report is available. 31 (k) In this section, "community foundation" means a nonprofit, autonomous,
01 philanthropic institution that is organized and operated primarily as a permanent 02 collection of endowed funds for the long-term benefit of a defined geographic area 03 within one or more municipalities, that has a long-term goal of increasing its 04 permanent unrestricted charitable endowment to benefit the area served, that primarily 05 provides benefits by making grants and may also provide other forms of charitable 06 services, that makes grants that are not limited to providing one type of benefit or to 07 serving one population segment, and that makes grants to multiple grantees. 08 * Sec. 2. AS 43.23.065(a) is amended to read: 09 (a) Except as provided in (b) of this section, 20 percent of the annual 10 permanent fund dividend payable to an individual is exempt from levy, execution, 11 garnishment, attachment, or any other remedy for the collection of debt. No other 12 exemption applies to a dividend. Notwithstanding other laws, a writ of execution upon 13 a dividend that has not been delivered to the debtor may be served on the 14 commissioner by 15 (1) certified mail, return receipt requested; or 16 (2) a civilian process server, licensed by the commissioner of public 17 safety under AS 22.20.120, using electronic execution procedures as provided 18 under regulations adopted by the department [. UPON RECEIPT OF A WRIT BY 19 CERTIFIED MAIL, RETURN RECEIPT REQUESTED, THE COMMISSIONER 20 SHALL DELIVER THAT PORTION OF THE DIVIDEND EXECUTED UPON TO 21 THE COURT ALONG WITH THE CASE NAME AND NUMBER]. 22 * Sec. 3. AS 43.23.065(d) is amended to read: 23 (d) An assignment of or levy, execution, garnishment, attachment, or other 24 remedy for the collection of debt applied to a dividend for a year may not be accepted 25 by the department before April 1 of that same year. AS 09.38.080(c) and 09.38.085 do 26 not apply to a levy on a permanent fund dividend. Upon receipt of a writ of 27 execution in accordance with (a) of this section, or other court order, the 28 commissioner shall deliver that portion of the dividend executed upon to the 29 court along with the case name and number [THE DEPARTMENT SHALL 30 INCLUDE THE CASE NUMBER WITH A DIVIDEND OR PORTION OF A 31 DIVIDEND TRANSMITTED TO THE COURT IN RESPONSE TO A WRIT OF
01 EXECUTION OR OTHER COURT ORDER]. At the time payment is made to the 02 court, the department shall send to the individual at the address provided in the 03 individual's dividend application and to the court that issued the writ or order a notice 04 that contains 05 (1) notification that all or part of the individual's dividend has been 06 seized under a writ of execution or court order; 07 (2) the name and address of the court that issued the writ or order; 08 (3) the case number for which the writ or order was issued; 09 (4) the amount seized under the writ or order; and 10 (5) notification that the individual has 30 days from the date the notice 11 is mailed in which to file with the court an objection to the seizure if a mistake has 12 been made. 13 * Sec. 4. AS 43.23.062 is repealed on December 31, 2011. 14 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 INDIRECT COURT RULE AMENDMENT. The changes made by secs. 2 and 3 of 17 this Act have the effect of changing Rule 89, Alaska Rules of Civil Procedure, by allowing a 18 civilian process server licensed by the commissioner of public safety to execute upon a 19 permanent fund dividend issued under AS 43.23 by electronic means in accordance with 20 regulations adopted by the Department of Revenue and by establishing how the commissioner 21 of revenue shall deliver the portion of the dividend executed upon to the court. 22 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 25 permanent fund dividends for 2009, 2010, and 2011. 26 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 CONDITIONAL EFFECT. Sections 2, 3, and 5 of this Act take effect only if sec. 5 of 29 this Act receives the two-thirds majority vote of each house required by art. IV, sec. 15, 30 Constitution of the State of Alaska. 31 * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).