04/15/2014 09:00 AM Senate FINANCE

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."                                                                                                           
                                                                                                                                
9:32:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PAUL   SEATON,  explained   that  legislation                                                                   
would allow  greater participation by small  non-profits. The                                                                   
current  audit requirement  was  more onerous  that what  was                                                                   
required  by   the  federal  government,  which   required  a                                                                   
certified public  accountant (CPA) audit that the  small non-                                                                   
profits  did  not  receive. This  bill  eases  the  financial                                                                   
burden  on these  organizations  and allows  Alaskans a  more                                                                   
complete   choice  of   organizations   by  eliminating   the                                                                   
financial audit  requirement. 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.                                                                   
Organizations  are also  required to  have an  audit if  they                                                                   
expend  $500,000 or  more in  federal  awards. 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.                                                                                                               
                                                                                                                                
Co-Chair Kelly  MOVED to ADOPT  the committee  substitute for                                                                   
SCS CS HB  75 (FIN), Work Draft 28-LS0323\Y  (Mischel/Martin,                                                                   
4/13/14). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
Co-Chair   Meyer    queried   the   changes   in    the   CS.                                                                   
Representative   Seaton  replied   that   there  were   three                                                                   
technical  changes. He  stated that sub-Section  A amended  a                                                                   
notice provision  on the  Permanent Fund  Dividend (PFD),  to                                                                   
say that the  7 percent coordination fee would  be deduction.                                                                   
He  announced  that sub-Section  E  removed  the  restriction                                                                   
that  the  money contributed  through  Pick.Click.Give  could                                                                   
not be used for implementing the section.                                                                                       
                                                                                                                                
Vice-Chair  Fairclough  queried   the  page  numbers  of  the                                                                   
changes. Representative Seaton deferred to this staff.                                                                          
                                                                                                                                
HEATHER  BEG, STAFF,  REPRESENTATIVE  PAUL SEATON,  explained                                                                   
the changes  in more detail. She  looked at page 2,  line 12,                                                                   
where "no  money" was  changed to "7  percent of  the money."                                                                   
The  second  change  was  on  page  4,  lines  5  through  8,                                                                   
deleting  the  section  that would  restrict  the  department                                                                   
from implementing the new change.                                                                                               
                                                                                                                                
9:37:31 AM                                                                                                                    
                                                                                                                                
JORDAN  MARSHALL,  STAFF,  RASMUSSEN  FOUNDATION,  ANCHORAGE,                                                                   
spoke in  support of  the legislation.  He offered  to answer                                                                   
questions.                                                                                                                      
                                                                                                                                
Co-Chair  Meyer asked  to hear  the  prepared testimony.  Mr.                                                                   
Marshall  announced  that the  Pick.Click.Give  program  gave                                                                   
Alaskans  a safe,  secure, and  simple way  to make  optional                                                                   
gifts  from to  Alaska non-profits.  The program  was in  its                                                                   
sixth  year and  had seen  over $10  million in  designations                                                                   
made by  Alaskans. He  stated that  $2.77 million was  raised                                                                   
in   2014.  There   were  many   opportunities  for   statute                                                                   
enhancements  to  ensure that  the  program can  continue  to                                                                   
thrive.   The  committee   substitute   would  make   already                                                                   
discussed  important enhancements.  He pointed  out that  the                                                                   
sustainability   filing  fee   portion   was  presented   for                                                                   
consideration  after  having  reached  out  to  participating                                                                   
non-profits.                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  wondered if  there was an  analysis of                                                                   
the non-profits  that were  shown in  the advertisement,  and                                                                   
whether  those organizations  saw a higher  level of  giving.                                                                   
Mr. Marshall responded  that there was a concerted  effort to                                                                   
highlight  certain types  of service  offerings, for  example                                                                   
aid and  comfort for the homeless.  He stated that  there was                                                                   
a small  uptick in support  for those types of  organizations                                                                   
after  they  were  featured in  the  marketing  campaign.  He                                                                   
stressed that  no specific organization was  ever highlighted                                                                   
in the full statewide outreach marketing program.                                                                               
                                                                                                                                
Vice-Chair  Fairclough wanted  to ensure  that the  marketing                                                                   
of the  program was  driven by issues.  She wondered  how the                                                                   
priorities  would be  shaped in  the  outreach. Mr.  Marshall                                                                   
responded  that  so  far,  the   state  had  no  interest  or                                                                   
influence over which  items were highlighted.  He agreed that                                                                   
there should be a rotation of the focus areas.                                                                                  
                                                                                                                                
Vice-Chair  Fairclough   understood  that  there   were  some                                                                   
efforts  in ensuring that  all issues  were highlighted.  Mr.                                                                   
Marshall  agreed. He stressed  that the  program website  had                                                                   
an   enhanced    outreach    mechanism,   so    participating                                                                   
organizations  could  upload  the  most  current  information                                                                   
about their organization.                                                                                                       
                                                                                                                                
9:45:55 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:46:38 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:47:00 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noted the  Senate Concurrent Resolution  that                                                                   
will follow the bill.                                                                                                           
                                                                                                                                
Co-Chair  Kelly MOVED  to REPORT  SCS  CSHB 75  (FIN) out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
SCS CSHB  75 (FIN) was REPORTED  out of committee with  a "do                                                                   
pass"   recommendation   and    with   previously   published                                                                   
indeterminate   fiscal   note:   FN2(REV);   and   previously                                                                   
published fiscal impact note: FN3(UA).                                                                                          
                                                                                                                                
9:47:46 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:51:31 AM                                                                                                                    
RECONVENED