SB 75: "An Act allowing federally recognized tribal governments to receive contributions from permanent fund dividends."
00 SENATE BILL NO. 75 01 "An Act allowing federally recognized tribal governments to receive contributions from 02 permanent fund dividends." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 43.23.062(a) is amended to read: 05 (a) Notwithstanding AS 43.23.069, the Department of Revenue shall prepare 06 the electronic Alaska permanent fund dividend application to allow an applicant who 07 files electronically to direct that money be subtracted from the dividend payment and 08 contributed to one or more of the educational organizations, community foundations, 09 [OR] charitable organizations, or federally recognized tribal governments that 10 appear on the contribution list contained in the application. A contribution to an 11 organization may be $25, $50, $75, $100, or more, in increments of $50, up to the 12 total amount of the permanent fund dividend that the applicant is entitled to receive. If 13 the total amount of contributions elected by an applicant exceeds the amount of the 14 permanent fund dividend that the applicant is entitled to receive, contributions shall be
01 deducted from the dividend in the order of priority elected by the applicant on the 02 application until the entire amount of the dividend that the applicant is entitled to 03 receive is allocated for contribution. The electronic dividend application form must 04 include notice that seven percent of the money contributed will be used for 05 administrative costs incurred in implementing this section, and money from the 06 dividend fund will not be used for that purpose. 07 * Sec. 2. AS 43.23.062(b) is amended to read: 08 (b) The department shall list each federally recognized tribal government 09 eligible under (c) of this section, educational organization, community foundation, or 10 charitable organization eligible under (c) and (d) of this section and each university 11 campus that applies under (l) of this section on the contribution list. The department 12 shall maintain an electronic database for the contribution list that is accessible to the 13 public and that permits searches by organization name, geographic location, and type. 14 The department shall provide a statement of the contributions made by an individual 15 that is suitable for federal income tax purposes to each individual who elects to 16 contribute under (a) of this section. 17 * Sec. 3. AS 43.23.062(c) is amended to read: 18 (c) The department may not include a charitable organization or federally 19 recognized tribal government, other than a community foundation, on the 20 contribution list for a dividend year unless the purpose of the charitable organization 21 or federally recognized tribal government is to provide services for youth 22 development, workforce development, arts and culture, aid and services to the elderly, 23 low-income individuals, individuals in emergency situations, victims of crime, 24 disabled individuals, individuals with mental illness, primary, vocational, and higher 25 education, health and dental care, recreational facilities, child abuse and neglect, 26 economic development, food assistance, libraries, public broadcasting, recycling of 27 waste, animal rescue, and zoos. The department may not include on the contribution 28 list an educational organization, community foundation, [OR] charitable organization, 29 or federally recognized tribal government that is the affiliate of a group. For 30 purposes of this subsection, 31 (1) "affiliate" means an organization or foundation that directly or
01 indirectly through one or more intermediaries controls, is controlled by, or is under 02 common control with, a group; 03 (2) "group" has the meaning given in AS 15.13.400(8)(B). 04 * Sec. 4. AS 43.23.062(d) is amended to read: 05 (d) Except for each campus of the University of Alaska and each federally 06 recognized tribal government, the department may include an educational 07 organization, community foundation, or charitable organization on the contribution list 08 for a current dividend year only if the organization 09 (1) before March 31 of the qualifying year, files an application for 10 inclusion on the list for that dividend year on the form required by the department; 11 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 12 Revenue Code) as an educational or a charitable organization on the date of 13 application; 14 (3) was qualified for tax exempt status under 26 U.S.C. 501(c)(3) 15 (Internal Revenue Code) as an educational or a charitable organization during the two 16 calendar years that immediately precede the year the application is filed; 17 (4) unless exempted under federal law, has a current Internal Revenue 18 Service Form 990 on file with the United States Department of the Treasury, Internal 19 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for 20 the current year, has on file that form for the immediately preceding year; 21 (5) is directed by a voluntary board of directors or local advisory 22 board, a majority of whose members are residents of the state; 23 (6) if a community foundation, provided in the state aid during the two 24 calendar years that immediately precede the year the application is filed, or, if an 25 education organization or charitable organization, provided in the state services during 26 the two calendar years that immediately precede the year the application is filed; 27 (7) receives at least $100,000 or five percent of its total annual 28 receipts, whichever is less, from contributions; 29 (8) has completed and provided to the department a financial audit 30 with an unqualified opinion conducted by an independent certified public accountant 31 for the fiscal year to which the Internal Revenue Service Form 990 required under (4)
01 of this subsection applies; this paragraph applies only to an organization that is 02 required by the federal government to complete a financial audit by an independent 03 certified public accountant; and 04 (9) does not make grants or contributions to an organization that is 05 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 06 * Sec. 5. AS 43.23.062(f) is amended to read: 07 (f) The department shall charge an application fee of $250 for each 08 educational organization, community foundation, [OR] charitable organization, or 09 federally recognized tribal government that files an application under (d) of this 10 section or for each university campus that files an application under (l) of this section. 11 The application fees shall be separately accounted for under AS 37.05.142. The annual 12 estimated balance in the account maintained under AS 37.05.142 for application fees 13 collected under this subsection may be appropriated for costs of administering this 14 section. 15 * Sec. 6. AS 43.23.062(m) is amended to read: 16 (m) In addition to the application fee in (f) of this section, the department shall 17 withhold a coordination fee from each organization, foundation, [OR] university 18 campus, or federally recognized tribal government that receives contributions under 19 this section in the immediately preceding dividend year. The coordination fee for an 20 organization, foundation, [OR] university campus, or federally recognized tribal 21 government that receives contributions under this section shall be seven percent of 22 the amount of contributions reported by the department under (j) of this section for the 23 organization, foundation, [OR] university campus, or federally recognized tribal 24 government for the immediately preceding dividend year. The coordination fee shall 25 be separately accounted for under AS 37.05.142 and shall be accounted for separately 26 from the application fee collected under (f) of this section. The annual estimated 27 balance in the account maintained under AS 37.05.142 for coordination fees collected 28 under this subsection may be appropriated for costs of administering this section.