txt

HB 256: "An Act relating to donations to the state; and relating to contributions from permanent fund dividends to municipalities and state and municipal agencies."

00                             HOUSE BILL NO. 256                                                                          
01 "An Act relating to donations to the state; and relating to contributions from permanent                                
02 fund dividends to municipalities and state and municipal agencies."                                                     
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 37.05 is amended by adding a new section to article 7 to read:                                     
05            Sec. 37.05.805. Donations to the state. (a) Except as provided in (d) of this                              
06       section, the state may accept a donation for a public purpose from a person in                                    
07       accordance with this section.                                                                                     
08            (b)  The Department of Administration shall maintain records for all donations                               
09       made under this section and separately account for the donations under AS 37.05.142.                              
10 The records must reflect the amount of the donation, the date of the donation, the                                      
11 donor's intent, if any, with respect to how the donation is to be used, and the state                                   
12 agency that receives the donation. If the donation is appropriated to a state agency, the                               
13 state agency shall maintain a record of the manner in which the donation was                                            
14       expended.                                                                                                         
01            (c)  Nothing in this section requires the state or a state agency to accept a                                
02       donation.                                                                                                         
03            (d)  A law enforcement agency may not accept a donation under this section.                                  
04            (e)  Donations shall be deposited in the general fund. The legislature may                                   
05       appropriate donations to the appropriate state agency based on the donor's intent, if                             
06       any.                                                                                                              
07 (f)  If donations made under this section include the donor's intent with respect                                       
08 to how the money is to be used, the donation shall be accounted for separately as a                                     
09 designated program receipt under AS 37.05.146(b), and appropriations of the program                                     
10       receipts are not made from the unrestricted general fund.                                                         
11 (g)  The Department of Administration may adopt regulations under AS 44.62                                              
12       (Administrative Procedure Act) to implement this section.                                                         
13 (h)  In this section, "state agency" has the meaning given in AS 37.05.990 and                                          
14       also includes the legislative and judicial branches.                                                              
15    * Sec. 2. AS 43.23.062(a) is amended to read:                                                                      
16 (a)  Notwithstanding AS 43.23.069, the Department of Revenue shall prepare                                              
17 the electronic Alaska permanent fund dividend application to allow an applicant who                                     
18 files electronically to direct that money be subtracted from the dividend payment and                                   
19 contributed to a state agency or one or more of the educational organizations,                                      
20 community foundations, [OR] charitable organizations, municipalities, or municipal                                  
21 agencies that appear on the contribution list contained in the application. A                                       
22 contribution to a state agency or [AN] organization, municipality, or municipal                                 
23 agency may be $25, $50, $75, $100, or more, in increments of $50, up to the total                                   
24 amount of the permanent fund dividend that the applicant is entitled to receive. If the                                 
25 total amount of contributions elected by an applicant exceeds the amount of the                                         
26 permanent fund dividend that the applicant is entitled to receive, contributions shall be                               
27 deducted from the dividend in the order of priority elected by the applicant on the                                     
28 application until the entire amount of the dividend that the applicant is entitled to                                   
29 receive is allocated for contribution. The electronic dividend application form must                                    
30 include notice that seven percent of the money contributed will be used for                                             
31 administrative costs incurred in implementing this section, and money from the                                          
01       dividend fund will not be used for that purpose.                                                                  
02    * Sec. 3. AS 43.23.062(b) is amended to read:                                                                      
03 (b)  The department shall list each educational organization, community                                                 
04 foundation, or charitable organization eligible under (c) and (d) of this section, [AND]                            
05 each university campus that applies under (l) of this section, each municipality or                                 
06 municipal agency that applies under (o) of this section, and each state agency on                                   
07 the contribution list. The department shall maintain an electronic database for the                                     
08 contribution list that is accessible to the public and that permits searches by                                         
09 organization, agency, and municipal name, geographic location, and type. The                                        
10 department shall provide a statement of the contributions made by an individual that is                                 
11 suitable for federal income tax purposes to each individual who elects to contribute                                    
12       under (a) of this section.                                                                                        
13    * Sec. 4. AS 43.23.062(d) is amended to read:                                                                      
14 (d)  Except for each campus of the University of Alaska, a municipality, or a                                       
15 municipal agency, the department may include an educational organization,                                           
16 community foundation, or charitable organization on the contribution list for a current                                 
17       dividend year only if the organization                                                                          
18 (1)  before March 31 of the qualifying year, files an application for                                                   
19       inclusion on the list for that dividend year on the form required by the department;                              
20 (2)  is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal                                                        
21 Revenue Code) as an educational or a charitable organization on the date of                                             
22       application;                                                                                                      
23 (3)  was qualified for tax exempt status under 26 U.S.C. 501(c)(3)                                                      
24 (Internal Revenue Code) as an educational or a charitable organization during the two                                   
25       calendar years that immediately precede the year the application is filed;                                        
26 (4)  unless exempted under federal law, has a current Internal Revenue                                                  
27 Service Form 990 on file with the United States Department of the Treasury, Internal                                    
28 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for                                 
29       the current year, has on file that form for the immediately preceding year;                                       
30 (5)  is directed by a voluntary board of directors or local advisory                                                    
31       board, a majority of whose members are residents of the state;                                                    
01 (6)  if a community foundation, provided in the state aid during the two                                                
02 calendar years that immediately precede the year the application is filed, or, if an                                    
03 education organization or charitable organization, provided in the state services during                                
04       the two calendar years that immediately precede the year the application is filed;                                
05 (7)  receives at least $100,000 or five percent of its total annual                                                     
06       receipts, whichever is less, from contributions;                                                                  
07 (8)  has completed and provided to the department a financial audit                                                     
08 with an unqualified opinion conducted by an independent certified public accountant                                     
09 for the fiscal year to which the Internal Revenue Service Form 990 required under (4)                                   
10 of this subsection applies; this paragraph applies only to an organization that is                                      
11 required by the federal government to complete a financial audit by an independent                                      
12       certified public accountant; and                                                                                  
13 (9)  does not make grants or contributions to an organization that is                                                   
14       exempt from taxation under 26 U.S.C. 501(c)(4) or (6).                                                            
15    * Sec. 5. AS 43.23.062(f) is amended to read:                                                                      
16 (f)  The department shall charge an application fee of $250 for each                                                    
17 educational organization, community foundation, or charitable organization that files                                   
18 an application under (d) of this section, [OR] for each university campus that files an                             
19 application under (l) of this section, or for each municipality or municipal agency                                 
20 that applies under (o) of this section. The application fees shall be separately                                    
21 accounted for under AS 37.05.142. The annual estimated balance in the account                                           
22 maintained under AS 37.05.142 for application fees collected under this subsection                                      
23       may be appropriated for costs of administering this section.                                                      
24    * Sec. 6. AS 43.23.062(m) is amended to read:                                                                      
25 (m)  In addition to the application fee in (f) of this section, the department shall                                    
26 withhold a coordination fee from each organization, foundation, [OR] university                                         
27 campus, municipality, and municipal agency that receives contributions under this                                   
28 section in the immediately preceding dividend year. The coordination fee for an                                         
29 organization, foundation, or university campus that receives contributions under this                                   
30 section shall be seven percent of the amount of contributions reported by the                                           
31 department under (j) of this section for the organization, foundation, or university                                    
01 campus for the immediately preceding dividend year. The coordination fee shall be                                       
02 separately accounted for under AS 37.05.142 and shall be accounted for separately                                       
03 from the application fee collected under (f) of this section. The annual estimated                                      
04 balance in the account maintained under AS 37.05.142 for coordination fees collected                                    
05 under this subsection may be appropriated for costs of administering this section. The                              
06 department may not withhold a coordination fee for contributions to a state                                         
07       agency.                                                                                                       
08    * Sec. 7. AS 43.23.062(n) is amended to read:                                                                      
09            (n)  In this section,                                                                                        
10 (1)  "community foundation" means a nonprofit, autonomous,                                                          
11 philanthropic institution that is organized and operated primarily as a permanent                                       
12 collection of endowed funds for the long-term benefit of a defined geographic area                                      
13 within one or more municipalities, that has a long-term goal of increasing its                                          
14 permanent unrestricted charitable endowment to benefit the area served, that primarily                                  
15 provides benefits by making grants and may also provide other forms of charitable                                       
16 services, that makes grants that are not limited to providing one type of benefit or to                                 
17       serving one population segment, and that makes grants to multiple grantees;                                   
18                 (2)  "state agency" has the meaning given in AS 18.60.545.                                          
19    * Sec. 8. AS 43.23.062 is amended by adding a new subsection to read:                                              
20 (o)  A municipality and municipal agency shall apply separately to be listed on                                         
21 the contribution list for the current dividend year in the manner prescribed by the                                     
22       department.