Legislature(2013 - 2014)HOUSE FINANCE 519
03/24/2014 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB134 | |
| HB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 278 | TELECONFERENCED | |
| + | HB 177 | TELECONFERENCED | |
| + | HB 134 | TELECONFERENCED | |
| + | HB 210 | TELECONFERENCED | |
| + | HB 202 | TELECONFERENCED | |
| + | HCR 15 | TELECONFERENCED | |
| += | HB 21 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 75 | TELECONFERENCED | |
HOUSE BILL NO. 75
"An Act repealing certain audit requirements for
entities receiving contributions from permanent fund
dividends; requiring each campus of the University of
Alaska to apply to be included on the contribution
list for contributions from permanent fund dividends;
and requiring a university to pay an application fee
for each campus separately listed on the contribution
list for contributions from permanent fund dividends."
9:54:46 AM
Representative Costello MOVED to ADOPT the proposed
committee substitute for HB 75 (FIN), 28-LS0323\O, Work
Draft (Martin 3/17/14).
Co-Chair Stoltze OBJECTED for discussion.
DANIEL GEORGE, STAFF, REPRESENTATIVE BILL STOLTZE,
explained the changes in the legislation. He stated that on
page 1, line 2 the title was changed to "requiring the
three main campuses of the university" instead of the
previous language, "requiring each campus of the university
to apply for contribution lists." He cited page 1, line 4
that previously read, "and requiring a university to pay an
application fee" that was changed to "and requiring the
university to pay an application fee." He stated that page
1, section 1 was new. He cited Section one language, "each
university campus that applied under (m) of this section…"
and explained that each university campus may apply for the
Pick, Click, and Give program rather than requiring each
campus to do so. He noted that page 2, Section 2 was new.
Previously the bill repealed the provision on page 2, line
29. The current bill amended the audit requirements in
Section 2, item (8) to read:
…this paragraph applies only to an organization that
is required by the federal government to complete a
financial audit by an independent certified public
accountant…
Mr. George indicated that the audit requirements only
applied to organizations that were required to have
financial audits by federal law. He offered that Section 3
was formerly Section 1 and was amended to require that each
campus that applied for the Pick, Click, and Give program
was charged the $250 fee. He added that Section 4 was
formerly Section 2 and specified that each campus of the
University of Alaska "shall" apply instead of "must." He
read the new additional language on page 3, lines 22
through 24,
…The University of Alaska may apply for each campus
other than the three main campuses to be listed on the
contribution list for the current dividend year in the
manner prescribed by the department.
Mr. George turned to page 3, subsection (n), lines 25
through page 4, line 5. He stated that the language was new
and read:
In addition to the application fee in (f) of this
section, the department shall withhold a coordination
fee from each organization, foundation, or university
campus that receives contributions under this section
in the immediately preceding dividend year. The
coordination fee for an organization, foundation, or
university campus that receives contributions under
this section shall be seven percent of the amount of
contributions reported by the department under (j) of
this section for the organization, foundation, or
university campus for the immediately preceding
dividend year. The coordination fee shall be
separately accounted for under AS 37.05.142 and shall
be accounted for separately from the application fee
collected under (f) of this section. The annual
estimated balance in the account maintained under AS
37.05.142 for coordination fees collected under this
subsection may be appropriated for costs of
administering this section.
DAN DEBARTOLO, DIRECTOR, PERMANENT FUND DIVIDEND,
DEPARTMENT OF REVENUE, explained that the operational cost
for the division's work was handled by the $250 fee. The
work carried out under the 7 percent coordination fee would
be contracted out to an eligible entity. The division could
not provide the services for 7 percent.
Co-Chair Austerman wondered why the repealer in Section 3
was unnecessary. He asked whether the reason was because
the provision was amended.
Mr. George answered in the affirmative. He explained that
rather than repealing the audit requirement altogether the
new provision in Section 2, item (8) required that if the
organization was required to provide an audit under federal
law the same audit could be submitted as part of its Pick,
Click, and Give program application.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered. The committee substitute (CS)
was adopted.
JORDAN MARSHALL, RASMUSON FOUNDATION, ANCHORAGE (via
teleconference), testified in favor of the changes in the
CS. He believed the CS made the program stronger and more
sustainable. He relayed that the program was in its 6th
year and funneled approximately $8 million to charitable
organizations. The program began as a three year pilot
program. He reported that the program had no fiscal impact
to the state. He felt that the CS would propel the
charitable program "toward long-term self-sufficiency." He
noted that the coordination fee ensured that participating
organizations sustained the program well into the future.
Co-Chair Stoltze noted the intent of the audit requirement
change was designed to "catch the large ones and not
overregulate the small ones."
Mr. DeBartolo replied that the previous requirements were
burdensome to the small organizations and demonstrated a
positive change.
Representative Costello reported that the bill had one new
zero fiscal note from the University of Alaska and one new
indeterminate fiscal note from the Department of Revenue.
10:05:19 AM
Representative Munoz MOVED to REPORT CSHB 75 (FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 75 (FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new indeterminate fiscal
note from the Department of Revenue and one new fiscal note
from the University.
Co-Chair Stoltze