CSHB 496(FIN) am: "An Act relating to contributions from permanent fund dividends to campuses of the University of Alaska, certain educational organizations, community foundations, and certain other charitable organizations that provide a 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."
00 CS FOR HOUSE BILL NO. 496(FIN) am 01 "An Act relating to contributions from permanent fund dividends to campuses of the 02 University of Alaska, certain educational organizations, community foundations, and 03 certain other charitable organizations that provide a youth development program, 04 workforce development, aid to the arts, or aid and services to the elderly, low-income 05 individuals, individuals in emergency situations, disabled individuals, or individuals 06 with mental illness; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 43.23 is amended by adding a new section to read: 09 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 10 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 11 permanent fund dividend application to allow an applicant who files electronically to 12 direct that money be subtracted from the dividend payment and contributed to one or 13 more of the campuses of the University of Alaska or to one or more educational
01 organizations, community foundations, or charitable organizations that appear on the 02 contribution list contained in the application. A contribution may be $25, $50, $75, or 03 $100 or may be 10 percent, 25 percent, 50 percent, or 100 percent of the total dividend 04 amount. If the total amount of contributions elected by an applicant exceeds the 05 amount of the permanent fund dividend that the applicant is entitled to receive, 06 contributions shall be deducted from the dividend in the order of priority elected by 07 the applicant on the application until the entire amount of the dividend that the 08 applicant is entitled to receive is allocated for contribution. 09 (b) The department shall list each campus of the University of Alaska and 10 shall list each educational organization, community foundation, or charitable 11 organization eligible under (c) of this section on the contribution list in alphabetical 12 order. The department shall provide a statement of the contributions made by an 13 individual that is suitable for federal income tax purposes to each individual who 14 elects to contribute under (a) of this section. 15 (c) The department may not include an educational organization on the 16 contribution list unless the purpose of the organization is to provide vocational 17 training or postsecondary education. Other than a community foundation, the 18 department may not include a charitable organization on the contribution list for a 19 dividend year unless the purpose of the organization is to provide a youth development 20 program, workforce development, aid to the arts, or aid and services to the elderly, 21 low-income individuals, individuals in emergency situations, disabled individuals, or 22 individuals with mental illness. In addition, the educational organization, community 23 foundation, or charitable organization 24 (1) must apply for inclusion on the contribution list for the current 25 dividend year on the form required by the department before June 15 of the qualifying 26 year; 27 (2) must be exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 28 Revenue Code) as an educational or a charitable organization on the date of 29 application; 30 (3) must have been qualified for tax exempt status under 26 U.S.C. 31 501(c)(3) (Internal Revenue Code) as an educational or a charitable organization
01 during the two calendar years that immediately precede the year the application is 02 filed; 03 (4) must have a current Internal Revenue Service Form 990 on file 04 with the United States Department of the Treasury, Internal Revenue Service; 05 (5) must be directed by a voluntary board of directors or local advisory 06 board whose members are residents of the state; 07 (6) during the two calendar years that immediately precede the year the 08 application is filed, must have provided in the state aid or services of a type listed in 09 this subsection, or, for a community foundation, benefits to a defined geographic area; 10 (7) must receive at least $100,000 or five percent of its total annual 11 receipts, whichever is less, from contributions; 12 (8) must have completed and provided to the department a financial 13 audit with an unqualified opinion, conducted by an independent certified public 14 accountant for the fiscal year immediately preceding the year the application is filed if 15 the total annual budget of the organization exceeds $250,000 during that fiscal year; 16 and 17 (9) may not make grants or contributions to an organization that is 18 exempt from taxation under 26 U.S.C. 501(c)(4) or (6), except that a community 19 foundation may have used up to five percent of its funding for grants or contributions 20 to those organizations during the two consecutive years that immediately precede the 21 year the application is filed under (1) of this subsection. 22 (d) The department shall use an equal percentage of the total amount 23 contributed under (a) of this section to each organization for administrative costs 24 incurred in implementing this section. The amount remaining shall be distributed to 25 each organization as soon as practicable. 26 (e) The department may use an agent or enter into a contract under AS 36.30 27 for the implementation and operation of the contribution program under this section. 28 (f) A public agency that claims a dividend on behalf of an individual under 29 AS 43.23.015(e) may not elect to make contributions from the dividend under (a) of 30 this section. 31 (g) The department may adopt regulations under AS 44.62 (Administrative
01 Procedure Act) to carry out the provisions of this section. If an organization disagrees 02 with an action of the department under this section and requests an administrative 03 hearing, the hearing shall be conducted by the office of administrative hearings 04 (AS 44.64.010). 05 (h) By January 20 of each year, the department shall submit a report to the 06 legislature identifying the organizations on the contribution list for the immediately 07 preceding year, together with the amount of contributions made to each of the 08 organizations. 09 (i) For purposes of this section, "community foundation" means an 10 organization that is a nonprofit, autonomous, philanthropic institution operated 11 primarily as a permanent collection of endowed funds for the long-term benefit of a 12 defined geographic area within one or more municipalities, that has a long-term goal 13 of increasing its permanent unrestricted charitable endowment to benefit the area 14 served, that primarily provides benefits by making grants and may also provide other 15 forms of charitable services, that makes grants that are not limited to providing one 16 type of benefit or to serving one population segment, and that makes grants to multiple 17 grantees. 18 * Sec. 2. AS 43.23.062 is repealed December 31, 2009. 19 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 22 permanent fund dividends for 2007, 2008, and 2009. 23 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TEMPORARY APPLICATION PROCESS. (a) Notwithstanding AS 43.23.062(c)(1), 26 as enacted in sec. 1 of this Act, on or before June 15, 2006, each organization, including a 27 community foundation, seeking inclusion on the contribution list for the 2007 permanent fund 28 dividend must submit to the Department of Revenue an affidavit signed by an officer or the 29 executive director of the organization attesting to the following: 30 (1) the name, address, and telephone number of the organization; 31 (2) the name, address, and telephone number of a person designated by the
01 organization whom the department may contact regarding the application; 02 (3) that, during 2004 and 2005, the organization provided aid or services in the 03 state of the type described in AS 43.23.062(c), enacted in sec. 1 of this Act, or, for a 04 community foundation, that the foundation provided benefits to a defined geographical area; 05 (4) that the funds received by the organization from 2007 permanent fund 06 dividend recipients will be used for one or more of the purposes set out in AS 43.23.062(c), 07 enacted in sec. 1 of this Act; 08 (5) the percentage of grants or contributions the organization made during 09 2004 and 2005 to an organization that is exempt from taxation under 26 U.S.C. 501(c)(4) or 10 (6) (Internal Revenue Code); 11 (6) that the organization is current in its filing of annual financial reports 12 required by state law; 13 (7) that the organization is directed by a voluntary board of directors or local 14 advisory board with members who are residents of the state; 15 (8) that the organization maintains on file the following documents and that it 16 will produce the documents at its own expense on the written request of the department: 17 (A) articles of incorporation and current bylaws; 18 (B) evidence of tax exemption on the date of application under 26 19 U.S.C. 501(c)(3) (Internal Revenue Code); 20 (C) evidence of tax exemption under 26 U.S.C. 501(c)(3) during 2004 21 and 2005; 22 (D) a current IRS Form 990 on file with the United States Department 23 of the Treasury, Internal Revenue Service; 24 (E) evidence that the organization received at least $100,000 or five 25 percent of its total annual receipts, whichever is less, from contributions in 2005; 26 (F) evidence that, during 2004 and 2005, the organization provided aid 27 or services in the state of the type described in AS 43.23.062(c), enacted in sec. 1 of 28 this Act, or, for a community foundation, that the foundation provided benefits to a 29 defined geographical area; and 30 (G) for an organization with a total annual budget that exceeded 31 $250,000 during fiscal year 2005, a current financial audit conducted by an
01 independent certified public accountant; 02 (9) that the organization will maintain all documents listed in (8) of this 03 subsection until at least June 15, 2009. 04 (b) After June 15, 2006, the Department of Revenue shall review all affidavits for 05 completeness and for compliance with eligibility standards under AS 43.23.062, enacted in 06 sec. 1 of this Act. The department may include employees of the entity with which the 07 department entered into a contract under AS 43.23.062(e), enacted in sec. 1 of this Act, to 08 assist in this review process. The department may request documents or information pertinent 09 to its review from the applicant organization. After reviewing the affidavits, the department 10 shall determine which applicants meet the requirements of AS 43.23.062, enacted in sec. 1 of 11 this Act, and (a) of this section and notify each organization of its decision in writing not later 12 than August 15, 2006. 13 (c) The department's written decision in (b) of this section constitutes a final agency 14 action. 15 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).