SCS CSHB 75(FIN): "An Act amending certain audit requirements for entities receiving contributions from permanent fund dividends; requiring the three main campuses of the University of Alaska to apply to be included on the contribution list for contributions from permanent fund dividends; relating to notice provided on the electronic dividend application form; relating to administrative costs for administering the program of contributions from permanent fund dividends; relating to a coordination fee for entities that receive contributions from permanent fund dividends; and requiring the university to pay an application fee for each campus separately listed on the contribution list for contributions from permanent fund dividends."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 75(FIN) 01 "An Act amending certain audit requirements for entities receiving contributions from 02 permanent fund dividends; requiring the three main campuses of the University of 03 Alaska to apply to be included on the contribution list for contributions from permanent 04 fund dividends; relating to notice provided on the electronic dividend application form; 05 relating to administrative costs for administering the program of contributions from 06 permanent fund dividends; relating to a coordination fee for entities that receive 07 contributions from permanent fund dividends; and requiring the university to pay an 08 application fee for each campus separately listed on the contribution list for 09 contributions from permanent fund dividends." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 43.23.062(a) is amended to read: 12 (a) Notwithstanding AS 43.23.069, the Department of Revenue shall prepare
01 the electronic Alaska permanent fund dividend application to allow an applicant who 02 files electronically to direct that money be subtracted from the dividend payment and 03 contributed to one or more of the educational organizations, community foundations, 04 or charitable organizations that appear on the contribution list contained in the 05 application. A contribution to an organization may be $25, $50, $75, $100, or more, in 06 increments of $50, up to the total amount of the permanent fund dividend that the 07 applicant is entitled to receive. If the total amount of contributions elected by an 08 applicant exceeds the amount of the permanent fund dividend that the applicant is 09 entitled to receive, contributions shall be deducted from the dividend in the order of 10 priority elected by the applicant on the application until the entire amount of the 11 dividend that the applicant is entitled to receive is allocated for contribution. The 12 electronic dividend application form must include notice that seven percent of the 13 [NO] money contributed will be used for administrative costs incurred in 14 implementing this section, and money from the dividend fund will not be used for that 15 purpose. 16 * Sec. 2. AS 43.23.062(b) is amended to read: 17 (b) The department shall list each [CAMPUS OF THE UNIVERSITY OF 18 ALASKA AND SHALL LIST EACH OTHER] educational organization, community 19 foundation, or charitable organization eligible under (c) and (d) of this section and 20 each university campus that applies under (m) of this section on the contribution 21 list. The department shall maintain an electronic database for the contribution list that 22 is accessible to the public and that permits searches by organization name, geographic 23 location, and type. The department shall provide a statement of the contributions made 24 by an individual that is suitable for federal income tax purposes to each individual 25 who elects to contribute under (a) of this section. 26 * Sec. 3. AS 43.23.062(d) is amended to read: 27 (d) Except for each campus of the University of Alaska, the department may 28 include an educational organization, community foundation, or charitable organization 29 on the contribution list for a current dividend year only if the organization 30 (1) before March 31 of the qualifying year, files an application for 31 inclusion on the list for that dividend year on the form required by the department;
01 (2) is 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) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 05 (Internal Revenue Code) as an educational or a charitable organization during the two 06 calendar years that immediately precede the year the application is filed; 07 (4) unless exempted under federal law, has a current Internal Revenue 08 Service Form 990 on file with the United States Department of the Treasury, Internal 09 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for 10 the current year, has on file that form for the immediately preceding 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 two 14 calendar years that immediately precede the year the application is filed, or, if an 15 education organization or charitable organization, provided in the state services during 16 the two calendar years that immediately precede the year the application is filed; 17 (7) receives at least $100,000 or five percent of its total annual 18 receipts, whichever is less, from contributions; 19 (8) has completed and provided to the department a financial audit 20 with an unqualified opinion conducted by an independent certified public accountant 21 for the fiscal year to which the Internal Revenue Service Form 990 required under (4) 22 of this subsection applies [, OR IF THE ORGANIZATION IS EXEMPTED FROM 23 FILING FORM 990, FOR THE FISCAL YEAR OF THE ORGANIZATION THAT 24 ENDED IMMEDIATELY BEFORE THE CURRENT FISCAL YEAR]; this 25 paragraph applies only to an organization that is required by the federal 26 government to complete a financial audit by an independent certified public 27 accountant [WITH A TOTAL ANNUAL BUDGET THAT EXCEEDS $250,000 28 DURING THE FISCAL YEAR TO WHICH THE AUDIT REQUIRED UNDER 29 THIS PARAGRAPH 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 * Sec. 4. AS 43.23.062(e) is amended to read: 02 (e) Unless an appropriation specifically directs that the money be used for 03 costs incurred in implementing this section, the department may not use money from 04 the dividend fund for administrative costs incurred in implementing this section, even 05 if it has been appropriated for costs of administering the dividend program. [THE 06 DEPARTMENT MAY NOT USE MONEY CONTRIBUTED UNDER (a) OF THIS 07 SECTION FOR ADMINISTRATIVE COSTS INCURRED IN IMPLEMENTING 08 THIS SECTION.] Contributions shall be distributed to each organization as soon as 09 practicable. 10 * Sec. 5. AS 43.23.062(f) is amended to read: 11 (f) The department shall charge an application fee of $250 for each 12 educational organization, community foundation, or charitable organization that files 13 an application under (d) of this section or for each university campus that files an 14 application under (m) of this section. The application fees shall be separately 15 accounted for under AS 37.05.142. The annual estimated balance in the account 16 maintained under AS 37.05.142 for application fees collected under this subsection 17 may be appropriated for costs of administering this section. 18 * Sec. 6. AS 43.23.062 is amended by adding new subsections to read: 19 (m) The University of Alaska shall apply separately for each of the three main 20 campuses to be listed on the contribution list for the current dividend year in the 21 manner prescribed by the department. The University of Alaska may apply for each 22 campus other than the three main campuses to be listed on the contribution list for the 23 current dividend year in the manner prescribed by the department. 24 (n) In addition to the application fee in (f) of this section, the department shall 25 withhold a coordination fee from each organization, foundation, or university campus 26 that receives contributions under this section in the immediately preceding dividend 27 year. The coordination fee for an organization, foundation, or university campus that 28 receives contributions under this section shall be seven percent of the amount of 29 contributions reported by the department under (j) of this section for the organization, 30 foundation, or university campus for the immediately preceding dividend year. The 31 coordination fee shall be separately accounted for under AS 37.05.142 and shall be
01 accounted for separately from the application fee collected under (f) of this section. 02 The annual estimated balance in the account maintained under AS 37.05.142 for 03 coordination fees collected under this subsection may be appropriated for costs of 04 administering this section.