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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.