04/22/2024 09:00 AM House FINANCE

HOUSE BILL NO. 45                                                                                                             
                                                                                                                                
     "An Act relating to contributions from permanent fund                                                                      
     dividends to the general and permanent funds."                                                                             
                                                                                                                                
10:00:20 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE MIKE  PRAX, SPONSOR, thanked  the committee                                                                      
for hearing the  bill. He provided an  introduction of the                                                                      
bill with prepared remarks:                                                                                                     
                                                                                                                                
     House Bill 45 would add a button to the electronic PFD                                                                     
     application process  to give  Alaskans the  choice of                                                                      
     donating all  or  a portion  of their  Permanent Fund                                                                      
     Dividend  directly  to   the  state's  general  fund.                                                                      
     Participants can donate in increments of 10 percent up                                                                     
     to the full amount of the PFD. Currently, in order to                                                                      
     return your PFD to the state, Alaskans must apply for                                                                      
     the dividend, receive  their dividend, and  return it                                                                      
     through the  U.S.  mail. Passage  of  this bill  will                                                                      
     greatly facilitate Alaskan's ability  to donate their                                                                      
     PFD to the state's general fund.                                                                                           
                                                                                                                                
Representative Prax relayed that a previous version of the                                                                      
                             nd                                                                                                 
bill was introduced in  the 32  Legislature as  HB 158 and                                                                      
was amended in  the House and had  22 cosponsors. The bill                                                                      
was reintroduced during the current legislature in the form                                                                     
previously  passed  by  the  House  Finance Committee.  He                                                                      
explained that the House  Ways and Means Committee amended                                                                      
HB 45  by making  some minor  changes that would  make the                                                                      
implementation of  the bill  go  more smoothly.  He stated                                                                      
there were numerous reasons why a person may choose to give                                                                     
some or  all of their  PFD back to the  state and Alaskans                                                                      
deserved to have  the option for doing so  in a simple and                                                                      
efficient manner.  He stated  that the bill  would provide                                                                      
that option.                                                                                                                    
                                                                                                                                
Co-Chair  Edgmon asked  if  the  sponsor's  staff had  any                                                                      
comments.                                                                                                                       
                                                                                                                                
RILEY NYE,  STAFF, REPRESENTATIVE MIKE  PRAX, reviewed the                                                                      
sectional explanation of changes (copy on file):                                                                                
                                                                                                                                
     Section 1                                                                                                                  
                                                                                                                                
     This was added in version B and is a new section that                                                                      
     amends AS 43.23.55 for the purpose of establishing the                                                                     
     following priority order for contributions under:                                                                          
     1. AS 43.23.130 (Education Raffle)                                                                                         
     2. AS 43.23.230 (Pick Click Give)                                                                                          
     3. AS 43.23.135 (AK General Fund Donation)                                                                                 
                                                                                                                                
     Section 2                                                                                                                  
                                                                                                                                
     This was section 1  in version A of  this bill and it                                                                      
     was  renumbered to  be  section 2  of  this committee                                                                      
     substitute version B.                                                                                                      
                                                                                                                                
     The following words  were Deleted  in this transition                                                                      
     from version A  to B--- "A  contribution to the state                                                                      
     general fund or  the principal of  the permanent fund                                                                      
     may be $25  or more, in increments of $25,  up to the                                                                      
     total amount of the  permanent fund dividend that the                                                                      
     applicant is entitled to receive."                                                                                         
                                                                                                                                
     On Page 3, lines 18-20 Insert---"A contribution to the                                                                     
     state general fund or  the principal of the permanent                                                                      
     fund may be 10  percent of the amount of the dividend                                                                      
     or more, in increments of 10 percent, up to the total                                                                      
     amount  of  the  permanent  fund  dividend  that  the                                                                      
     applicant is entitled to receive."                                                                                         
                                                                                                                                
     Also  in  this  section,  the  following  words  were                                                                      
     deleted,  "The  electronic  application must  include                                                                      
     notice that seven percent of the money contributed to                                                                      
     the  state  general  fund or  the  principal  of  the                                                                      
     permanent fund will be  used for administrative costs                                                                      
     incurred  in implementing  this  subsection and  that                                                                      
     money from the dividend fund will not be used for that                                                                     
     purpose."                                                                                                                  
                                                                                                                                
     On  Page  3, lines  26-28  the  following words  were                                                                      
     inserted,  "Money  from  a  contribution  under  this                                                                      
     subsection or from the dividend fund  may not be used                                                                      
     for administrative costs incurred in implementing this                                                                     
     subsection."                                                                                                               
                                                                                                                                
10:05:07 AM                                                                                                                   
                                                                                                                                
Co-Chair Edgmon thanked Representative Prax for the                                                                             
presentation.                                                                                                                   
                                                                                                                                
Representative Prax asked members to provide questions or                                                                       
suggested amendments to him ahead of time in order to                                                                           
expedite the hearing process.                                                                                                   
                                                                                                                                
HB 45 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Edgmon reviewed the schedule for the following                                                                         
meeting.