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SB 8: "An Act allowing federally recognized tribal governments to receive contributions from permanent fund dividends."

00                              SENATE BILL NO. 8                                                                          
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.