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CSSB 8(STA): "An Act allowing federally recognized tribal governments to receive contributions from permanent fund dividends."

00                       CS FOR SENATE BILL NO. 8(STA)                                                                     
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 the peace officer and firefighter survivors' fund or to one or more of the                               
09 educational organizations, community foundations, [OR] charitable organizations, or                                 
10 federally recognized tribal governments that appear on the contribution list                                        
11 contained in the application. A contribution to the peace officer and firefighter                                       
12 survivors' fund or to an organization may be $25, $50, $75, $100, or more, in                                           
13 increments of $50, up to the total amount of the permanent fund dividend that the                                       
14 applicant is entitled to receive. If the total amount of contributions elected by an                                    
01 applicant exceeds the amount of the permanent fund dividend that the applicant is                                       
02 entitled to receive, contributions shall be deducted from the dividend in the order of                                  
03 priority elected by the applicant on the application until the entire amount of the                                     
04 dividend that the applicant is entitled to receive is allocated for contribution. The                                   
05 electronic dividend application form must include notice that seven percent of the                                      
06 money contributed will be used for administrative costs incurred in implementing this                                   
07       section, and money from the dividend fund will not be used for that purpose.                                      
08    * Sec. 2. AS 43.23.062(b) is amended to read:                                                                      
09 (b)  The department shall list each federally recognized tribal government                                          
10 eligible under (c) of this section, educational organization, community foundation, or                              
11 charitable organization eligible under (c) and (d) of this section, each university                                     
12 campus that applies under (l) of this section, and the peace officer and firefighter                                    
13 survivors' fund on the contribution list. The department shall maintain an electronic                                   
14 database for the contribution list that is accessible to the public and that permits                                    
15 searches by organization or fund name, geographic location, and type. The department                                    
16 shall provide a statement of the contributions made by an individual that is suitable for                               
17 federal income tax purposes to each individual who elects to contribute under (a) of                                    
18       this section.                                                                                                     
19    * Sec. 3. AS 43.23.062(c) is amended to read:                                                                      
20 (c)  The department may not include a charitable organization or federally                                          
21 recognized tribal government, other than a community foundation, on the                                             
22 contribution list for a dividend year unless the purpose of the charitable organization                                 
23 or federally recognized tribal government is to provide services for youth                                          
24 development, workforce development, arts and culture, aid and services to the elderly,                                  
25 low-income individuals, individuals in emergency situations, victims of crime,                                          
26 disabled individuals, individuals with mental illness, primary, vocational, and higher                                  
27 education, health and dental care, recreational facilities, child abuse and neglect,                                    
28 economic development, food assistance, libraries, public broadcasting, recycling of                                     
29 waste, animal rescue, and zoos. The department may not include on the contribution                                      
30 list an educational organization, community foundation, [OR] charitable organization,                               
31 or federally recognized tribal government that is the affiliate of a group. For                                     
01       purposes of this subsection,                                                                                      
02                 (1)  "affiliate" means an organization or foundation that directly or                                   
03       indirectly through one or more intermediaries controls, is controlled by, or is under                             
04       common control with, a group;                                                                                     
05                 (2)  "group" has the meaning given in AS 15.13.400(8)(B).                                               
06    * Sec. 4. AS 43.23.062(d) is amended to read:                                                                      
07 (d)  Except for each campus of the University of Alaska and each federally                                          
08 recognized tribal government, the department may include an educational                                             
09 organization, community foundation, or charitable organization on the contribution list                                 
10       for a current dividend year only if the organization                                                              
11 (1)  before March 31 of the qualifying year, files an application for                                                   
12       inclusion on the list for that dividend year on the form required by the department;                              
13 (2)  is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal                                                        
14 Revenue Code) as an educational or a charitable organization on the date of                                             
15       application;                                                                                                      
16 (3)  was qualified for tax exempt status under 26 U.S.C. 501(c)(3)                                                      
17 (Internal Revenue Code) as an educational or a charitable organization during the two                                   
18       calendar years that immediately precede the year the application is filed;                                        
19 (4)  unless exempted under federal law, has a current Internal Revenue                                                  
20 Service Form 990 on file with the United States Department of the Treasury, Internal                                    
21 Revenue Service, or, if the Internal Revenue Service has granted a filing extension for                                 
22       the current year, has on file that form for the immediately preceding year;                                       
23 (5)  is directed by a voluntary board of directors or local advisory                                                    
24       board, a majority of whose members are residents of the state;                                                    
25 (6)  if a community foundation, provided in the state aid during the two                                                
26 calendar years that immediately precede the year the application is filed, or, if an                                    
27 education organization or charitable organization, provided in the state services during                                
28       the two calendar years that immediately precede the year the application is filed;                                
29 (7)  receives at least $100,000 or five percent of its total annual                                                     
30       receipts, whichever is less, from contributions;                                                                  
31 (8)  has completed and provided to the department a financial audit                                                     
01 with an unqualified opinion conducted by an independent certified public accountant                                     
02 for the fiscal year to which the Internal Revenue Service Form 990 required under (4)                                   
03 of this subsection applies; this paragraph applies only to an organization that is                                      
04 required by the federal government to complete a financial audit by an independent                                      
05       certified public accountant; and                                                                                  
06                 (9)  does not make grants or contributions to an organization that is                                   
07       exempt from taxation under 26 U.S.C. 501(c)(4) or (6).                                                            
08    * Sec. 5. AS 43.23.062(f) is amended to read:                                                                      
09            (f)  The department shall charge an application fee of $250 for each                                         
10 educational organization, community foundation, [OR] charitable organization, or                                    
11 federally recognized tribal government that files an application under (d) of this                                  
12 section or for each university campus that files an application under (l) of this section.                              
13 The application fees shall be separately accounted for under AS 37.05.142. The annual                                   
14 estimated balance in the account maintained under AS 37.05.142 for application fees                                     
15 collected under this subsection may be appropriated for costs of administering this                                     
16       section.                                                                                                          
17    * Sec. 6. AS 43.23.062(m) is amended to read:                                                                      
18 (m)  In addition to the application fee in (f) of this section, the department shall                                    
19 withhold a coordination fee from each organization, foundation, [OR] university                                         
20 campus, or federally recognized tribal government that receives contributions under                                 
21 this section in the immediately preceding dividend year. The coordination fee for an                                    
22 organization, foundation, [OR] university campus, or federally recognized tribal                                    
23 government that receives contributions under this section shall be seven percent of                                 
24 the amount of contributions reported by the department under (j) of this section for the                                
25 organization, foundation, [OR] university campus, or federally recognized tribal                                    
26 government for the immediately preceding dividend year. The coordination fee shall                                  
27 be separately accounted for under AS 37.05.142 and shall be accounted for separately                                    
28 from the application fee collected under (f) of this section. The annual estimated                                      
29 balance in the account maintained under AS 37.05.142 for coordination fees collected                                    
30 under this subsection may be appropriated for costs of administering this section. The                                  
31 department may not withhold a coordination fee for contributions to the peace officer                                   
01       and firefighter survivors' fund.                                                                                  
02    * Sec. 7. AS 43.23.062 is amended by adding a new subsection to read:                                              
03 (o)  A person who claims a dividend on behalf of an unemancipated minor                                                 
04 under AS 43.23.005(c) when the minor is the subject of an adoption or guardianship                                      
05 proceeding pending in a tribal court may not elect to make a contribution from the                                      
06 minor's dividend to a federally recognized tribal government under (a) of this section.