03/22/2007 08:00 AM House STATE AFFAIRS

HB 166-CONTRIBUTIONS FROM PERM. FUND DIVIDENDS                                                                                
                                                                                                                                
8:12:50 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN announced  that the first order of  business was HOUSE                                                               
BILL NO.  166, "An Act  relating to contributions  from permanent                                                               
fund dividends  to community foundations, to  certain educational                                                               
organizations,  and  to  certain other  charitable  organizations                                                               
that  provide a  positive  youth  development program,  workforce                                                               
development,  aid  to  the  arts,  or aid  and  services  to  the                                                               
elderly,   low-income  individuals,   individuals  in   emergency                                                               
situations,  disabled  individuals,  or individuals  with  mental                                                               
illness; and providing for an effective date."                                                                                  
                                                                                                                                
8:13:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to  adopt the  committee substitute                                                               
(CS)  for HB  166, Version  25-LS0678\C, Cook,  as a  work draft.                                                               
There being no objection, Version C was before the committee.                                                                   
                                                                                                                                
8:13:38 AM                                                                                                                    
                                                                                                                                
KACI  HOTCH, Staff  to Representative  Bill  Thomas, Jr.,  Alaska                                                               
State Legislature,  reviewed the  changes made  in Version  C, on                                                               
behalf of  Representative Thomas, prime  sponsor of HB 166.   The                                                               
first change,  she noted, opens  the program up to  all 501(c)(3)                                                               
entities,  with one  exception shown  on page  2, [lines  15-17],                                                               
which read as follows:                                                                                                          
                                                                                                                                
          (c)  The department may not include on the                                                                            
     contribution   list    an   educational   organization,                                                                    
     community foundation,  or charitable  organization that                                                                    
     is the affiliate of a group.                                                                                               
                                                                                                                                
MS. HOTCH noted  that clarification is made on page  2 that every                                                               
501(c)(3)  that is  eligible must  reapply each  year.   She said                                                               
that  requirement  will  prevent   the  necessity  of  the  state                                                               
searching  out  a 501(c)(3)  that  it  thinks  may no  longer  be                                                               
eligible.                                                                                                                       
                                                                                                                                
MS. HOTCH  pointed to another  change on  page 3, line  24, which                                                               
states that before a contract  with a corporation or organization                                                               
that will  be managing the  program is  executed, a copy  of that                                                               
entity's  policies  and  procedures  must be  on  file  with  the                                                               
Department of  Revenue. Another change  is found on page  3, line                                                               
26,  which  provides  that  the  department  can  circumvent  the                                                               
procurement code if it desires to do so.                                                                                        
                                                                                                                                
8:16:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  report CSHB  166, Version  25-                                                               
LS0678\C, Cook, out of  committee with individual recommendations                                                               
and the  accompanying fiscal  notes.   There being  no objection,                                                               
CSHB  166(STA)  was  reported  out of  the  House  State  Affairs                                                               
Standing Committee.