SB 297: "An Act relating to contributions from permanent fund dividends to certain educational organizations and to certain 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."
00 SENATE BILL NO. 297 01 "An Act relating to contributions from permanent fund dividends to certain educational 02 organizations and to certain charitable organizations that provide a positive youth 03 development program, workforce development, aid to the arts, or aid and services to the 04 elderly, low-income individuals, individuals in emergency situations, disabled 05 individuals, or individuals with mental illness; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 43.23 is amended by adding a new section to read: 08 Sec. 43.23.062. Contributions from dividends. (a) Notwithstanding 09 AS 43.23.069, the Department of Revenue shall prepare the electronic Alaska 10 permanent fund dividend application to allow an applicant who files electronically to 11 direct that money be subtracted from the dividend payment and contributed to one or 12 more of the campuses of the University of Alaska or to one or more educational or 13 charitable organizations that appear on the contribution list contained in the
01 application. A contribution to an organization may be $10, $25, $75, or $100 or may 02 be 10 percent, 25 percent, 50 percent, or 100 percent of the total dividend amount. If 03 the total amount of contributions elected by an applicant exceeds the amount of the 04 permanent fund dividend that the applicant is entitled to receive, contributions shall be 05 deducted from the dividend in the order the organizations elected by the applicant 06 appear on the contribution list until the entire amount of the dividend that the applicant 07 is entitled to receive is allocated for contribution. 08 (b) The department shall list each campus of the University of Alaska and 09 each qualified educational or charitable organization on the contribution list in random 10 order, and the order shall be changed each year. The department shall provide a 11 statement of the contributions made by an individual that is suitable for federal income 12 tax purposes to each individual who elects to contribute under (a) of this section. 13 (c) The department may not include an educational organization on the 14 contribution list unless the primary purpose of the organization is to provide 15 vocational training, or preschool, elementary, secondary, or postsecondary education, 16 and the organization applies for inclusion on the contribution list for the current 17 dividend year on the form required by the department before September 1 of the 18 qualifying year. The department may not include a charitable organization on the 19 contribution list for a dividend year unless the primary purpose of the organization is 20 to provide a positive youth development program, workforce development, aid to the 21 arts, or aid and services to the elderly, low-income individuals, individuals in 22 emergency situations, disabled individuals, or individuals with mental illness, and the 23 organization 24 (1) applies for inclusion on the contribution list for the current 25 dividend year on the form required by the department before September 1 of the 26 qualifying year; 27 (2) is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal 28 Revenue Code) as a charitable organization on the date of application; 29 (3) qualified for tax exempt status under 26 U.S.C. 501(c)(3) (Internal 30 Revenue Code) as a charitable organization during the two calendar years that 31 immediately precede the year the application is filed;
01 (4) has a current Internal Revenue Service Form 990 on file with the 02 United States Department of the Treasury, Internal Revenue Service; 03 (5) is directed by a voluntary board of directors or local advisory board 04 who are residents of the state; 05 (6) has provided in the state aid or services of a type listed in this 06 subsection during the two calendar years that immediately precede the year the 07 application is filed; 08 (7) receives at least $100,000 or five percent of its total annual receipts 09 from contributions, whichever is less; 10 (8) has completed and provides to the department a financial audit 11 conducted by an independent certified public accountant for the fiscal year 12 immediately preceding the year the application is filed if the total annual budget of the 13 organization exceeds $250,000 during that fiscal year; and 14 (9) does not make grants or contributions to an organization that is 15 exempt from taxation under 26 U.S.C. 501(c)(4) or (6). 16 (d) The department shall use an equal percentage of the total amount 17 contributed under (a) of this section to each organization for administrative costs 18 incurred in implementing this section. The amount remaining shall be distributed to 19 each organization as soon as practicable. 20 (e) The department may use an agent or enter into a contract under AS 36.30 21 for the implementation and operation of the contribution program under this section. 22 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 APPLICABILITY. AS 43.23.062, enacted by sec. 1 of this Act, applies to the Alaska 25 permanent fund dividends for 2007, 2008, and 2009. 26 * Sec. 3. AS 43.23.062 is repealed December 31, 2009. 27 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).