Legislature(2015 - 2016)BUTROVICH 205

03/24/2015 08:30 AM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
-- Public Testimony --
+= SJR 3 CONST. AM: MEMBERSHIP OF JUDICIAL COUNCIL TELECONFERENCED
Moved SJR 3 Out of Committee
*+ SB 75 PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS TELECONFERENCED
Moved SB 75 Out of Committee
*+ HB 35 MARCH 27: GREAT ALASKA EARTHQUAKE DAY TELECONFERENCED
Scheduled but Not Heard
+= SB 22 MOTOR VEHICLE REG. TAX: COLLECTION COSTS TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
          SB 75-PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS                                                                     
                                                                                                                                
8:46:16 AM                                                                                                                    
CHAIR STOLTZE announced that  the first order of  business would                                                                
be SB 75.                                                                                                                       
                                                                                                                                
8:46:19 AM                                                                                                                    
SENATOR GARY STEVENS, Alaska State  Legislature, Juneau, Alaska,                                                                
sponsor of SB 75 sponsor, provided an overview as follows:                                                                      
                                                                                                                                
     SB  75 is  legislation  that  attempts to  expand  the                                                                     
     popular Permanent  Fund  Dividend's "Pick.Click.Give."                                                                     
     program. The idea  is to include  federally recognized                                                                     
     tribal governments and  it also subjects  those tribal                                                                     
     governments to those same rules, same regulations that                                                                     
     apply  to  all  other  entities,  $250  enrollment  is                                                                     
     currently applied to each of those participants.                                                                           
                                                                                                                                
8:47:06 AM                                                                                                                    
DOUG   LETCH,  Staff,   Senator  Gary   Stevens,  Alaska   State                                                                
Legislature, Juneau, Alaska, reiterated  that SB 75 is  straight                                                                
forward legislation  that would  add tribal  governments to  the                                                                
list    of    eligible    recipients.    He    explained    that                                                                
"Pick.Click.Give." was currently  reserved for 501(c)  nonprofit                                                                
organizations. He detailed that while tribes are  considered tax                                                                
exempt organizations that are eligible to receive tax deductible                                                                
donations under Internal Revenue Code (IRC) Section 7871 and are                                                                
listed in Revenue Procedure 2008-55, the tribes do not  meet the                                                                
current designation to participate in "Pick.Click.Give." without                                                                
a change in statute.                                                                                                            
                                                                                                                                
He  explained  that  SB 75  would  impact  potentially  the  229                                                                
federally recognized tribes in Alaska,  organizations that offer                                                                
a variety of  services to tribal members and residents of  their                                                                
villages. He  noted that the  tribes are  often the largest  and                                                                
many times  the sole  service providers in  villages that  offer                                                                
services  and  activities designed  for  the  benefit  of  their                                                                
community.  He detailed  that  activities are  generally  geared                                                                
towards youth development, low income families, the elderly, and                                                                
victims of violence. He said having the ability to be  listed in                                                                
Pick-Click-Give would make it easier for tribes to  access local                                                                
contributions  and   could  help  the   public  understand   the                                                                
importance of the tribal programs.                                                                                              
                                                                                                                                
He noted  that one of  the benefits from  the "Pick.Click.Give."                                                                
program  is  that  people make  donations  before  seeing  their                                                                
Permanent Fund  Dividend (PFD)  check. He opined  that making  a                                                                
donation is easier  when applying for a  PFD where the money  is                                                                
not missed on the other end. He said when the "Pick.Click.Give."                                                                
bill  was enacted  in 2008,  the program  has  made millions  of                                                                
dollars available to  eligible organizations over the years.  He                                                                
pointed out  that  $2.8 million  from some  27,000 Alaskans  was                                                                
donated the previous year. He said the Department of Revenue has                                                                
projected  that approximately  $3  million will  be  donated  to                                                                
eligible organizations  through the  "Pick.Click.Give." and  the                                                                
PFD  program  later   this  year.  He  summarized  that   tribal                                                                
governments would like the opportunity to participate as well.                                                                  
                                                                                                                                
8:47:35 AM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee meeting.                                                                              
                                                                                                                                
8:49:51 AM                                                                                                                    
SENATOR STEVENS  explained that the  idea came  from the  native                                                                
village of Afognak and noted their letter of support submission.                                                                
He  noted  that  a  letter of  support  was  received  from  the                                                                
Chickaloon Village  Traditional Council. He  added that  several                                                                
other tribal governments are expected to support the bill.                                                                      
                                                                                                                                
CHAIR STOLTZE stated that  he would like to have  the Department                                                                
of Revenue's position on the record prior to sending the bill on                                                                
its way.                                                                                                                        
                                                                                                                                
SENATOR  STEVENS  replied that  he  understood  Chair  Stoltze's                                                                
request.  He  said  Mr. Burnett,  Deputy  Commissioner  for  the                                                                
Department of Revenue, will be available later in the meeting.                                                                  
                                                                                                                                
CHAIR  STOLTZE said  the bill  will be  held  until Mr.  Burnett                                                                
addresses the committee.                                                                                                        
                                                                                                                                
8:52:24 AM                                                                                                                    
MELISSA BORTON, Tribal Administrator, Native Village of Afognak,                                                                
Kodiak, Alaska, explained the village's support for the bill  as                                                                
follows:                                                                                                                        
                                                                                                                                
     We are one of  ten federally recognized tribes located                                                                     
     on the  island. My  tribe, like many  other tribes  in                                                                     
     Alaska, hosts several different youth  activities that                                                                     
     we  fundraise  for  annually.  In  addition  to  youth                                                                     
     activities, we  also provide social  service programs,                                                                     
     tutoring programs,  language revitalization  programs,                                                                     
     substance   abuse   prevention,    domestic   violence                                                                     
     prevention, and  child  abuse  and neglect  prevention                                                                     
     programs.  All  of our  tribe's  programs  are  geared                                                                     
     toward  the  betterment  of  our   community  and  the                                                                     
     development of our  youth; sometimes that  is specific                                                                     
     to  our tribal  members  and  sometimes it's  for  the                                                                     
     greater community, it's not always geared  towards our                                                                     
     tribal  members.   We  regularly  get   asked  if   we                                                                     
     participate in the  "Pick.Click.Give." program because                                                                     
     Alaska residents are  now appreciating how easy it  is                                                                     
     to  give portions  of their  PFD towards  non-profits.                                                                     
     However,  as   you  know,   the  current   legislation                                                                     
     restricts  our  eligibility.  Tribes  under  IRS  Code                                                                     
     Section 7871  are afforded the  same rights as  states                                                                     
     and are  eligible to accept  charitable contributions.                                                                     
     However, because we  aren't a  501(c)(3) organization,                                                                     
     this  often times  limits  our  ability to  apply  for                                                                     
     certain  foundation   grants  and   also  limits   our                                                                     
     fundraising  through  certain  crowdfunding  websites.                                                                     
     Tribes having  the ability  to be  listed as  eligible                                                                     
     organizations under  "Pick.Click.Give." would give  us                                                                     
     another avenue  to  fund our  various programs,  bring                                                                     
     awareness to the  greater Alaskan community about  the                                                                     
     importance of tribal programs,  and further strengthen                                                                     
     the  relationship between  the  state  government  and                                                                     
     Alaska tribes.                                                                                                             
                                                                                                                                
MS. BORTON  summarized that  the Native Village  of Afognak  had                                                                
discussions with the Rasmuson Foundation as well as  a scheduled                                                                
meeting with the Alaska Federation of Natives to solicit support                                                                
for the bill.                                                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if  contributions  to  a  federally                                                                
recognized tribe are tax deductible.                                                                                            
                                                                                                                                
MS. BORTON answered  yes. She noted that donations are  accepted                                                                
from  private  and  corporate contributors.  She  said  she  has                                                                
verified with the  Internal Revenue Service's tribal liaison  in                                                                
Anchorage that contributions to a federally recognized tribe are                                                                
tax deductible.                                                                                                                 
                                                                                                                                
8:55:25 AM                                                                                                                    
CHAIR  STOLTZE closed  public testimony  and announced  that  he                                                                
would set SB 75 aside until  the Department of Revenue testifies                                                                
to get their position on record.                                                                                                
                                                                                                                                
          SB 75-PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS                                                                     
                                                                                                                                
9:54:48 AM                                                                                                                    
VICE  CHAIR HUGGINS  called  the  committee back  to  order  and                                                                
announced that SB 75 was back before the committee.                                                                             
                                                                                                                                
9:55:29 AM                                                                                                                    
DOUG LETCH,  Staff, Senator  Stevens, Alaska State  Legislature,                                                                
Juneau, Alaska, stated that  Mr. Barnett from the  Department of                                                                
Revenue was present to answer questions that to be  entered into                                                                
the record.                                                                                                                     
                                                                                                                                
JERRY  BURNETT,   Deputy  Commissioner,  Alaska  Department   of                                                                
Revenue, Juneau, Alaska.                                                                                                        
                                                                                                                                
MR.  LETCH  explained that  Chair  Stoltze wanted  to  hear  the                                                                
department's  position  on  SB   75.  He  said  there  was   the                                                                
indeterminate fiscal note, which explained that the new entrants                                                                
to the program  would pay the $250  fee and be subjected to  the                                                                
same terms as the current participants.                                                                                         
                                                                                                                                
VICE CHAIR HUGGINS  pointed out that particular emphasis was  on                                                                
the fiscal note.                                                                                                                
                                                                                                                                
MR.  BURNETT explained that  the fiscal  note was  indeterminate                                                                
because  the Department  of Revenue  has no  idea how  many  new                                                                
entities may come into the program. He specified that there will                                                                
be some  costs associated with the  bill, but each entrant  will                                                                
pay a set $250 fee with 7 percent of  the pledges withheld for a                                                                
management contract. He stated that who the department is taking                                                                
pledges on behalf of does not matter.                                                                                           
                                                                                                                                
9:57:01 AM                                                                                                                    
VICE CHAIR HUGGINS asked  Mr. Burnet to restate what the  fiscal                                                                
note impact will be.                                                                                                            
                                                                                                                                
MR.  BURNETT  answered that  depending  on  the  number  of  new                                                                
entities,  each entrant  would  pay  a  $250 fee.  He  said  the                                                                
department will potentially have some additional costs depending                                                                
on  how  many entrants  there  are,  but the  fiscal  impact  is                                                                
covered.                                                                                                                        
                                                                                                                                
VICE  CHAIR  HUGGINS  asked  hundreds,  thousands,  or  tens  of                                                                
thousands.                                                                                                                      
                                                                                                                                
MR. BURNETT answered that the department is  looking at probably                                                                
low thousands of dollars; but,  it would be paid for by the  new                                                                
entrants. He added that each year there are different numbers of                                                                
participants   in   the   "Pick.Click.Give."   program   because                                                                
charitable organizations can come and go. He summarized that the                                                                
new entrants would just be handled the same as  any other entity                                                                
that is covered in the program.                                                                                                 
                                                                                                                                
VICE  CHAIR  HUGGINS  asked if  Mr.  Letch  had  any  additional                                                                
comments.                                                                                                                       
                                                                                                                                
MR. LETCH thanked the Native Village of Afognak for bringing the                                                                
idea forward.                                                                                                                   
                                                                                                                                
SENATOR MCGUIRE thanked the bill sponsors for bringing  the bill                                                                
forward. She commented  that she has personal  experience seeing                                                                
small community tribes providing social services and educational                                                                
services. She  opined that  small community tribes  are more  in                                                                
touch  with community.  She added  that  the donations  are  tax                                                                
deductible.                                                                                                                     
                                                                                                                                
SENATOR  MCGUIRE moved  to  report  SB 75  from  committee  with                                                                
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
9:58:58 AM                                                                                                                    
VICE CHAIR HUGGINS announced that seeing no objection, SB 75  is                                                                
reported from the Senate State Affairs Standing Committee.                                                                      

Document Name Date/Time Subjects
SJR3 Opposition Document - Letter AFL-CIO 3-9-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3
SJR3 SSTA Emails of Opposition 3-22-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3
SJR3 SSTA Emails of Support 3-22-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3
SB75 Sponsor Statement.pdf SSTA 3/24/2015 8:30:00 AM
SB 75
SB75 Sectional Analysis.pdf SSTA 3/24/2015 8:30:00 AM
SB 75
SB75 Support Document - Letter Chickaloon Village Traditional Counci 3-23-15l.pdf SSTA 3/24/2015 8:30:00 AM
SB 75
SB75 Support Document - Letter Native Village of Afognak 3-23-15.pdf SSTA 3/24/2015 8:30:00 AM
SB 75
SB75 Fiscal Note DOR-PFD 3-23-15.pdf SSTA 3/24/2015 8:30:00 AM
SB 75
SJR3 SSTA Emails and Faxes of Opposition 3-23-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3
SB22 Sponsor Statement.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Sectional Analysis.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Fiscal Note DOA-DMV 2-4-15.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Sponsor's Additional Questions to DMV.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - Analysis of DMV Responses by Dan Moore.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - Commission Agents Cost to DMV (sponsor).pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - DMV Data Summary (sponsor).pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - DMV PCN Info (sponsor).pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - DMV-MVRT Information.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - DMV-MVRT Leasing Costs (sponsor).pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - Letter MOA Daniel Moore 2-2-15.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
SB22 Supporting Document - Municipality of Anchorage Supplemental Info SB 22.pdf SSTA 3/24/2015 8:30:00 AM
SB 22
HB35 Sponsor Statement.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Explaination of Changes in HSTA.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Fiscal Note DOA-DGS 1-30-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Facts and Figures.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Letter AK SHSC 2-4-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Letter Anchorage Mayor Sullivan 2-2-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Letter Chuck Volanti 1-26-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Letter PCI Armand Feliciano 2-2-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB35 Supporting Document - Letter Valdez Mayor Weaver 1-27-15.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
HB 35 Ver W.pdf SSTA 3/24/2015 8:30:00 AM
HB 35
SJR3 Opposition Document - Email Bud Carpeneti 3-24-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3
SJR3 SSTA Emails of Opposition 3-24-15.pdf SSTA 3/24/2015 8:30:00 AM
SJR 3