Legislature(2007 - 2008)SENATE FINANCE 532
04/08/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB 2 | |
| SB 8 | |
| SB 212 | |
| HB 147 | |
| HB 166 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 212 | TELECONFERENCED | |
| += | SB 8 | TELECONFERENCED | |
| + | HB 2 | TELECONFERENCED | |
| + | HB 147 | TELECONFERENCED | |
| += | HB 166 | TELECONFERENCED | |
| + | HB 289 | TELECONFERENCED | |
| + | HB 307 | TELECONFERENCED | |
| + | HB 406 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 166(FIN)
"An Act relating to contributions from permanent fund
dividends to community foundations, to certain
educational organizations, and to certain other
charitable organizations; and providing for an
effective date."
Co-Chair Hoffman MOVED to ADOPT Senate Committee Substitute
for CSHB 166, work draft 25-LS0678\V as the working
document. There being NO OBJECTION, the Senate Committee
Substitute Version V was adopted.
KACI SCHROEDER, STAFF, REPRESENTATIVE THOMAS, provided an
overview of the committee substitute. The first change in
the new committee substitute Version V was in Section 1
which allows Alaskans to check off and contribute $25 to the
full dividend amount as a donation to charity. On page 2, it
states that the contribution can not be changed after the
application is filed and no money contributed by the
individual shall be used for administrative costs. Ms.
Schroeder continued that on page 2, Section (c) it further
clarifies the types of organizations that are eligible for
this program and on page 3 it lists the criteria that an
organization must meet before they are allowed to be put on
the permanent fund application. Page 4 clarifies that the
department may not use any contributions for administrative
costs but also states that the department can collect a $50
application fee. Ms. Schroeder noted that on page 4, (g) it
allows the department to circumvent the procurement code.
She signified that by January of each year the Legislature
would receive a report on how the program is working. She
cited that Section 2, page 5 deals with language requested
by the Department of Revenue. She noted the last change on
page 6 states that this will not apply to the 2008 dividend.
The program will begin in 2010 to give the department time
to implement the program.
10:39:09 AM
Senator Olson asked for the reasoning behind circumventing
the procurement quota.
Ms. Schroeder replied that it had been requested in the
House by Representative Coghill. The United Way was the only
known program ready to do this program now.
10:39:46 AM
DEBBIE RICHTER, DIRECTOR, DIVIDEND DIVISION noted she was
available for questions.
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE remarked that the department
neither supports nor opposes this bill. There is other
language in the bill that would eliminate paper and work
load for the department to allow staff to respond to
questions.
Co-Chair Stedman inquired if the department feels this is
administratively controllable.
10:42:14 AM
Ms. Richter remarked that the division has been working with
the United Way as the potential contractor for handling the
qualification of the agencies and they have expressed a
concern. They have offered an 800 number that would be
posted on their website for people call and ask questions.
Co-Chair Stedman requested the fiscal impact in the future.
10:43:01 AM
Mr. Burnett reported that the bill is written prohibiting
the division from using any Alaskan's dividend money to pay
for this program. Any money spent would be money that was
contractual from the Rasmussen Foundation or other private
sources. The fiscal note just gives spending authorization
for designated program receipts that are donated to the
state for this purpose.
Co-Chair Stedman inquired if it was expected that financial
support would still be there in three years or is this
funding just to start the program.
10:44:28 AM
Senator Elton questioned if the division is anticipating
that future costs will be funded by an application fee.
Mr. Burnett replied that the $50 application fee would not
be significant in terms of funding for this program. The
number of organizations would not be large enough. He
indicated that there would be, after successful two to three
years, some arrangement with the organizations receiving
this based on the costs. If the sunset is removed, then a
funding formula would need to be put into place at that
time.
10:45:50 AM
Senator Elton asked why the application fee was necessary.
Mr. Burnett replied that the department did not write the
bill or add the application fee as a funding source. The
application fee money would just offset some of the costs of
qualifying organizations rather than the ongoing costs.
Under this bill the Rasmussen foundation would pay the
administration costs for the first three years.
10:46:51 AM
Co-Chair Hoffman inquired why it was necessary to have four
thousand man hours to implement this legislation.
Ms. Richter replied that the eligibility technician
requested is to answer public response because the
department expects a significant increase in public contact
questioning the new information on the application. The
division is not able to handle the public response at this
time.
Co-Chair Hoffman signified that he does not see the division
receiving two thousand hours of inquiry for this program. He
noted that the Governor was looking for more efficiency in
government and this request did not reflect that philosophy.
Mr. Burnett agreed that the division may need less time and
effort but the fiscal note is an authorization to use money
given by the Rasmussen Foundation for this purpose. There
may not be a significant increase over time but only a short
term bump of inquiries. Any employees hired for this program
will be project specific employees not a permanent full time
part of the department until after this bill becomes a
permanent law.
10:49:23 AM
Senator Elton asked what kind of public contact the
department anticipates.
Ms. Richter replied that the department anticipates the
public will have many questions about the program in
general, such as whether their contributions are tax
deductable or if they can change their selection. The
division anticipates that if only one percent of the
applicants that apply for a dividend actually call the
division, this would be approximately six thousand phone
calls.
10:50:39 AM
Senator Thomas remarked that the division does anticipate
that the number of calls could be less than projected and
the three years of Rasmussen contributions in the first
three years will take care of that in the beginning stages.
He inquired if there are one thousand who regularly file
990s regularly.
Ms. Richter believed it to be two thousand.
10:52:00 AM
JEFF PARK, VICE PRESIDENT, RASMUSSEN FOUNDATION, responded
that the foundation would engage in working with the third
party provider, the United Way, and an outreach program to
inform the public about the purpose of the dividend check-
off. The fiscal note assumes that the department will be
taking on many of these new activities.
10:54:33 AM
Co-Chair Stedman requested an overview of the bill.
Mr. Parks remarked that this bill provides Alaskans with a
mechanism for making charitable donations to their favorite
non-profits. He addressed that the three year provision of
the program would be underwritten by the Rasmussen
Foundation. If the program were to continue beyond year
three it would require action by the Legislature.
10:55:49 AM
MIKE WALSH, VICE PRESIDENT, 4 ACRE GROUP testified via
teleconference and remarked he was available for questions.
10:56:38 AM
Co-Chair Hoffman MOVED to REPORT SCS CSHB 166 (FIN) out of
Committee with individual recommendations and an
accompanying fiscal. There being NO OBJECTION, it was so
ordered.
SCS CSHB 166 (FIN) was REPORTED out of Committee with no
recommendations and an accompanying new fiscal note from the
Department of Revenue.
AT EASE: 10:57:24 AM
RECONVENED: 10:59:14 AM
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