05/14/2003 08:04 AM House STA

HB 149-LOBBYING BY NONPROFITS                                                                                                 
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the next  order of  business was                                                               
HOUSE  BILL NO.  149,  "An Act  requiring nonprofit  corporations                                                               
under  the Alaska  Net Income  Tax  Act to  provide prior  public                                                               
notice of lobbying expenditures and  an annual report of lobbying                                                               
expenditures to the Department of  Revenue; providing for a civil                                                               
penalty for failure  to provide the notice; and  providing for an                                                               
effective date."   [Before the committee  is Version 23-LS0354\H,                                                               
which  had been  amended  at previous  meetings.   Although  this                                                               
document is entitled and referred  to as a sponsor substitute, it                                                               
was not officially such and thus  the document only exists in the                                                               
committee packet.]                                                                                                              
                                                                                                                                
Number 0284                                                                                                                     
                                                                                                                                
ROSEMARY   HAGEVIG,   Executive  Director,   Catholic   Community                                                               
Services  (CCS), informed  the  committee that  CCS  is a  social                                                               
services  organization that  has  been in  business in  Southeast                                                               
Alaska for 30 years.  She  emphasized that CCS is concerned about                                                               
the implications  in this legislation  in "all of  its versions."                                                               
She  said that  she  is  unable to  determine  after reading  the                                                               
sponsor statement, exactly what the  rationale is for the changes                                                               
that are proposed.                                                                                                              
                                                                                                                                
MS. HAGEVIG  stated that CCS  has worked diligently on  behalf of                                                               
vulnerable senior citizens,  and it has provided a  wide range of                                                               
services for families and children.   Ms. Hagevig said that CCS's                                                               
mission statement  is clear.  She  noted that it is  on file with                                                               
the Department  of Commerce, and  is part of  CCS's incorporating                                                               
papers.   She said she would  read the mission statement  for the                                                               
record.  It read as follows:                                                                                                    
                                                                                                                                
     Catholic Community Service  advocates and offers social                                                                    
     service  opportunities  for   all  Southeast  Alaskans,                                                                    
     emphasizing  social  justice  and   compassion.      We                                                                    
         accomplish this mission by fostering the self-                                                                         
      sufficiency and dignity of individuals and families                                                                       
     affirming diversity in culture, faith and way of life.                                                                     
                                                                                                                                
MS. HAGEVIG  pointed out  that it  is a  two-prong mission:   CCS                                                               
provides services  on the ground 24  hours a day, 7  days a week,                                                               
and 365  days a year; it  also has an obligation  to advocate for                                                               
the vulnerable people it serves.                                                                                                
                                                                                                                                
MS.  HAGEVIG revealed  that CCS  receives funding  through grants                                                               
and contracts from the federal,  state, and local governments, as                                                               
well  as  from tribal  organizations.    She stated,  "These  are                                                               
clearly restricted  dollars and  are never  used for  advocacy or                                                               
lobbying."    She said  that  CCS's  contributors understand  the                                                               
scope of  work it does  and expects  CCS to fulfill  its mission.                                                               
[House Bill  149] would seriously  impede CCS's ability  to fully                                                               
meet its  mission, she  stated.   She said  she thinks  that it's                                                               
important  for  the committee  to  understand  that the  proposed                                                               
legislation would have "really negative  impacts in a very broad-                                                               
brushed way for a number of organizations."                                                                                     
                                                                                                                                
Number 0525                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON noted  that  the federal  law changed  the                                                               
limit  a "501(c)(3)"  [nonprofit organization]  could spend  from                                                               
"an insignificant  amount of  this money," to  20 percent  of its                                                               
money.  He  asked Ms. Hagevig if she could  foresee ever spending                                                               
20 percent of CCS's funds on lobbying.                                                                                          
                                                                                                                                
MS.  HAGEVIG  replied  that  that  would  be  her  fondest  wish;                                                               
however, an organization  such as CCS would never  ever have that                                                               
kind of  money available to it.   She revealed that  CCS spends a                                                               
miniscule  amount of  its total  budget on  advocacy.   She added                                                               
that she cannot envision a time  when CCS would "ever approach 20                                                               
percent."                                                                                                                       
                                                                                                                                
Number 0619                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG said that,  technically, there should be                                                               
a CS before the committee; however,  he indicated that there is a                                                               
typo.    He  clarified  that  HB  149  "did  not  incorporate  an                                                               
amendment that the committee adopted."                                                                                          
                                                                                                                                
CHAIR WEYHRAUCH  replied that  the committee  would have  to deal                                                               
with that another time.                                                                                                         
                                                                                                                                
[HB 149 was heard and held.]