Legislature(2013 - 2014)SENATE FINANCE 532
04/14/2014 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB75 | |
| HB278 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 278 | TELECONFERENCED | |
| += | HB 75 | TELECONFERENCED | |
| += | SB 220 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 75(FIN)
"An Act amending certain audit requirements for
entities receiving contributions from permanent fund
dividends; requiring the three main campuses of the
University of Alaska to apply to be included on the
contribution list for contributions from permanent
fund dividends; and requiring the university to pay an
application fee for each campus separately listed on
the contribution list for contributions from permanent
fund dividends."
1:34:19 PM
HEATHER BEGGS, STAFF, REPRESENTATIVE PAUL SEATON, offered a
sponsor statement for HB 75:
HB 75 allows greater participation in the
Pick.Click.Give program by small non-profits that meet
all of the eligibility requirements for the program,
but do not participate due to the cost prohibitive
audit requirement.
The creation of the popular Pick.Click.Give program by
the 25th Alaska State Legislature gave Alaskans a
simple and convenient option to donate to charities
and non-profits of their choice. These organizations,
which provide important services to our communities,
rely on donations to function.
One criterion that must be met by organizations
wishing to participate often stops smaller Alaskan
charities and non-profits from applying. This is the
required financial audit for organizations with a
total budget of $250,000 or greater. The cost of the
required financial audit for smaller groups is much
greater than the donations received by these groups
through the Pick.Click.Give program, which makes
participation in the program impractical. Not only
does this mean that these smaller groups will not
receive donations through the program, some groups
have found that exclusion from the program gives their
supporters the mistaken impression that they are no
longer certified non-profits.
This bill eases the financial burden on these
organizations and allows Alaskans a more complete
choice of organizations by eliminating the financial
audit requirement for organizations that do not file a
federal audit. This does not remove financial
accountability. All Pick.Click.Give donation
recipients must be 501(c)(3) tax-exempt organizations,
which are required to file the form 990 annually with
the IRS. The IRS form 990 was overhauled in 2008, is a
public record and accessible online to donors. The
annual filing now requires disclosure of not only
detailed financial information, but governance
practices, policies, program services, and other
compliance measures. This rigorous test of
accountability is already required and provides a
complete picture of finance and management of a
nonprofit. Additionally, an audit is required of
organizations that expend $500,000 or more in federal
awards. These organizations will be required to submit
a copy of this audit to the state. Entities that
expend less than $500,000 in federal funds still must
still make their records available for review by the
federal government.
This bill further requires each campus of University
of Alaska to pay the $250 application fee to
participate in the program, just as all other eligible
organizations do.
The Pick.Click.Give program encourages Alaskans to
give back to their community by bringing the many
worthy state programs right to their doorstep. Smaller
non-profits nourish Alaskan communities on a personal
level, open pathways for budding artistic talents and
provide educational opportunities that fit just right
with community needs. These organizations deserve the
chance to connect through Pick.Click.Give to the
Alaskans they serve.
Ms. Beggs furthered that the bill would add a 7 percent
coordination fee, which would begin in 2015, and be used
for statewide marketing and outreach. The fee would be
withheld from the annual payment to an organization, and be
based on the contributions received through the program.
She said that the Rasmuson Foundation had initially
promised to fund the statewide outreach and marketing, but
only for the first 3 years of the program, which made a
plan for sustainability necessary. She said that non-
profits that had been surveyed had expressed the desire for
the marketing and outreach to continue and the percentage
fee had decidedly been the best solution to keeping the
program sustainable. She shared that there was a committee
substitute that had been drafted that would correct the
non-conforming sections of statute that the drafter had
discovered. She said that the lasted version of the bill
solved a number of oversights in the original legislation;
The University did not object to paying the application
fee, and a plan was being made for long-term
sustainability.
1:39:47 PM
Vice-Chair Fairclough noted that there had been a drafting
error in the latest version of the bill and that there
would be a corrected CS before the committee at a later
date.
1:40:08 PM
DAN DEBARTOLO, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,
DEPARTMENT OF REVENUE, testified that the legislation would
not make any fiscal changes to the operation of the
division. He said that the division supported the current
version of the bill. He relayed that once pledges were made
to the program the 7 percent would be taken out of the
distribution amount in October through December. He
explained that the money would be held in a separate
account and reported to the legislature as was required to
appropriate into the next year's budget. He related that
the division operated the program on the $250 fee and would
not be using donated monies to operate the program.
1:43:01 PM
CHRIS CHRISTENSEN III, ASSOCIATE VICE PRESIDENT FOR STATE
RELATIONS, UNIVERSITY OF ALASKA, testified that the
University had no issues with paying the application fee.
He noted that since the inception of the program the
donated amount had risen from $7,000 to $28,000. He shared
that for the last 2 years Exxon Mobile had matched all
raised funds.
Vice-Chair Fairclough related that one of the issues
pointed out by the non-profit community was that the
University could list all of its campuses in the program
and non-profits were restricted to one individual, specific
program. She noted that this gave the University the
advantage of a higher rate of visual recognition by donors.
She thought the issue should be considered by the
committee.
Mr. Christensen stated that he did not expect all of the
University campuses to be listed. He said that
approximately a half dozen of the campuses would not raise
as much money as the cost of the application fee. He
related that most people that gave to the University did
not was to give a check directly to the University, but
rather focus the donation on a specific campus or program.
He said that there had been proposals that University
programs be allowed to be listed, not just campuses
however; that could overburden the list of choices for
donors. He believed that there were 100's of charities on
the list, a dozen of which were related to the University.
Vice-Chair Fairclough OPENED public testimony.
There being none Vice-Chair Fairclough CLOSED public
testimony.
1:46:49 PM
Vice-Chair Fairclough directed the committee's attention to
the fiscal notes attached to the bill.
HB 75 was HEARD and HELD in committee for further
consideration.