Enrolled SB 171: Relating to the permanent fund dividend of an otherwise qualified individual who dies during the qualifying year, and relating to contributions from permanent fund dividends; and providing for an effective date.
00Enrolled SB 171 01 Relating to the permanent fund dividend of an otherwise qualified individual who dies during 02 the qualifying year, and relating to contributions from permanent fund dividends; and 03 providing for an effective date. 04 _______________ 05 * Section 1. AS 43.23.005(h) is amended to read: 06 (h) If an individual who would otherwise have been eligible for a permanent 07 fund dividend dies after applying for the dividend but before the dividend is paid, the 08 department shall pay the dividend to a personal representative of the estate or to a 09 successor claiming personal property under AS 13.16.680. If an individual who would 10 otherwise have been eligible for a dividend and who did not apply for the dividend 11 dies during the application period, a personal representative of the estate or a 12 successor claiming personal property under AS 13.16.680 may apply for and receive 13 the dividend. If an individual who received a dividend for the year immediately 14 before the qualifying year and who would otherwise have been eligible for a 15 dividend dies during the qualifying year after having been a state resident for at
01 least 180 days immediately before the date of death, notwithstanding (a)(1) - (3) 02 and (a)(6) of this section, a personal representative of the estate or a successor 03 claiming personal property under AS 13.16.680 may apply for and receive the 04 dividend. Notwithstanding AS 43.23.011, an [THE] application for a [THE] dividend 05 may be filed by the personal representative or the successor under this subsection at 06 any time before the end of the application period for the next dividend year. 07 * Sec. 2. AS 43.23.062(a) is amended to read: 08 (a) Notwithstanding AS 43.23.069, the Department of Revenue shall prepare 09 the electronic Alaska permanent fund dividend application to allow an applicant who 10 files electronically to direct that money be subtracted from the dividend payment and 11 contributed to one or more of the educational organizations, community foundations, 12 or charitable organizations that appear on the contribution list contained in the 13 application. A contribution to an organization may be $25, $50, $75, $100, or more, in 14 increments of $50, up to the total amount of the permanent fund dividend that the 15 applicant is entitled to receive. If the total amount of contributions elected by an 16 applicant exceeds the amount of the permanent fund dividend that the applicant is 17 entitled to receive, contributions shall be deducted from the dividend in the order of 18 priority elected by the applicant on the application until the entire amount of the 19 dividend that the applicant is entitled to receive is allocated for contribution. The 20 electronic dividend application form must include notice that 21 [(1) CONTRIBUTION CHANGES MAY NOT BE MADE AFTER 22 THE APPLICANT FILES THE ELECTRONIC PERMANENT FUND DIVIDEND 23 APPLICATION; AND 24 (2)] no money contributed will be used for administrative costs 25 incurred in implementing this section, and money from the dividend fund will not be 26 used for that purpose. 27 * Sec. 3. AS 43.23.062(b) is amended to read: 28 (b) The department shall list each campus of the University of Alaska and 29 shall list each other educational organization, community foundation, or charitable 30 organization eligible under (c) and (d) of this section on the contribution list. The 31 department shall maintain an electronic database for the contribution list that is
01 accessible to the public and that permits searches by organization name, 02 geographic location, and type [BY GEOGRAPHIC REGION IN RANDOM 03 ORDER, AND THE ORDER SHALL BE CHANGED EACH YEAR. ON THE 04 CONTRIBUTION LIST, ORGANIZATIONS SHALL ALSO BE GROUPED BY 05 TYPE WITHIN EACH GEOGRAPHIC REGION]. The department shall provide a 06 statement of the contributions made by an individual that is suitable for federal income 07 tax purposes to each individual who elects to contribute under (a) of this section. 08 * Sec. 4. AS 43.23.062(c) is amended to read: 09 (c) The department may not include a charitable organization, other than a 10 community foundation, on the contribution list for a dividend year unless the purpose 11 of the charitable organization is to provide services [PROGRAMS] for youth 12 development, workforce development, arts and culture, aid and services to the elderly, 13 low-income individuals, individuals in emergency situations, victims of crime, 14 disabled individuals, individuals with mental illness, primary, vocational, and higher 15 education, health and dental care, recreational facilities, child abuse and neglect, 16 economic development, food assistance, libraries, public broadcasting, recycling of 17 waste, animal rescue, and zoos. The department may not include on the contribution 18 list an educational organization, community foundation, or charitable organization that 19 is the affiliate of a group. For purposes of this subsection, 20 (1) "affiliate" means an organization or foundation that directly or 21 indirectly through one or more intermediaries controls, is controlled by, or is under 22 common control with, a group; 23 (2) "group" has the meaning given in AS 15.13.400(8)(B). 24 * Sec. 5. AS 43.23.062(d) is amended to read: 25 (d) Except for each campus of the University of Alaska, the department may 26 include an educational organization, community foundation, or charitable organization 27 on the contribution list for a current dividend year only if the organization 28 (1) before March 31 [JUNE 15] of the qualifying year, files an 29 application for inclusion on the list for that dividend year on the form required by the 30 department; 31 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal
01 Revenue Code) as an educational or a charitable organization on the date of 02 application; 03 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 04 (Internal Revenue Code) as an educational or a charitable organization during the two 05 calendar years that immediately precede the year the application is filed; 06 (4) unless exempted under federal law, has a current Internal 07 Revenue Service Form 990 on file with the United States Department of the Treasury, 08 Internal Revenue Service, or, if the Internal Revenue Service has granted a filing 09 extension for the current year, has on file that form for the immediately preceding 10 [PRECEEDING] year; 11 (5) is directed by a voluntary board of directors or local advisory 12 board, a majority of whose members are residents of the state; 13 (6) if a community foundation, provided in the state aid during the 14 two calendar years that immediately precede the year the application is filed, or, 15 if an education organization or charitable organization, provided in the state 16 services during the two calendar years that immediately precede the year the 17 application is filed; 18 (7) receives at least $100,000 or five percent of its total annual 19 receipts, whichever is less, from contributions; 20 (8) has completed and provided to the department a financial audit 21 with an unqualified opinion conducted by an independent certified public accountant 22 for the fiscal year to which the Internal Revenue Service Form 990 required under (4) 23 of this subsection applies, or if the organization is exempted from filing Form 990, 24 for the fiscal year of the organization that ended immediately before the current 25 fiscal year; this paragraph applies only to an organization with a total annual budget 26 that exceeds $250,000 during the fiscal year to which the audit [INTERNAL 27 REVENUE SERVICE FORM 990] required under [(4) OF] this paragraph 28 [SUBSECTION] applies; and 29 (9) does not make grants or contributions to an organization that is 30 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 31 * Sec. 6. AS 43.23.062(f) is amended to read:
01 (f) The department shall charge [MAY ESTABLISH] an application fee of 02 $250 [NOT TO EXCEED $50] for each educational organization, community 03 foundation, or charitable organization that files an application under (d) of this section. 04 The application fees shall be separately accounted for under AS 37.05.142. The annual 05 estimated balance in the account maintained under AS 37.05.142 for application fees 06 collected under this subsection may be appropriated for costs of administering this 07 section. 08 * Sec. 7. AS 43.23.062(i) is amended to read: 09 (i) The department may adopt regulations under AS 44.62 (Administrative 10 Procedure Act) to carry out the provisions of this section. Notwithstanding this 11 subsection and other provisions of law, a state agency, including the department, 12 may not adopt regulations or otherwise impose requirements or procedures on 13 organizations to implement, interpret, make specific, or otherwise carry out the 14 provisions of this section unless required by the federal government. If an 15 organization disagrees with an action of the department under this section and requests 16 an administrative hearing, the hearing shall be conducted by the office of 17 administrative hearings (AS 44.64.010). 18 * Sec. 8. AS 43.23.062 is amended by adding a new subsection to read: 19 (l) A community foundation may not deposit contributions received under this 20 section into a fund that would be included in the definition of a donor advised fund 21 under 26 U.S.C. 4966(d)(2) (Internal Revenue Code). 22 * Sec. 9. Sections 4 and 6, ch. 41, SLA 2008, are repealed. 23 * Sec. 10. Sections 1 - 8 of this Act take effect January 1, 2011.