04/12/2012 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 302(FIN) am                                                                                             
                                                                                                                                
     "An  Act  requiring each  campus  of the  University  of                                                                   
     Alaska to apply to be included  on the contribution list                                                                   
     for   contributions  from   permanent  fund   dividends;                                                                   
     requiring  a university  to pay  an application  fee for                                                                   
     each campus  separately listed on the  contribution list                                                                   
     for  contributions from  permanent  fund dividends;  and                                                                   
     repealing  certain   audit  requirements   for  entities                                                                   
     receiving contributions from  permanent fund dividends."                                                                   
                                                                                                                                
9:07:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, introduced HB 302.  He explained                                                                   
that the  legislation  would repeal the  audit provision  for                                                                   
any  non-profit   with  a  total  budget  of   $250,000.  The                                                                   
provision  was problematic  because  the average  cost of  an                                                                   
audit  was $8000  to $12,000,  which  was significantly  more                                                                   
than the majority  of non-profits received through  the Pick,                                                                   
Click, Give  program. He provided  the example of  the Seward                                                                   
Senior  Citizen Centre,  which had been  receiving less  than                                                                   
$2000 per  year, but  the audit was  costing then  $8,000. He                                                                   
furthered that the Juneau Arts  Council had stopped using the                                                                   
program  because  it  was  not  cost  effective,  which  made                                                                   
regular  donors  think it  was  no  longer a  certified  non-                                                                   
profit. He referred to the Sponsor  Statement (copy on file):                                                                   
                                                                                                                                
     HB   302    allows   greater   participation    in   the                                                                   
     Pick.Click.Give  program by small non-profits  that meet                                                                   
     all  of the  eligibility requirements  for the  program,                                                                   
     but  cannot  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 groups with $250,000  annual budget                                                                   
     is  much greater  than the donations  received  by these                                                                   
     groups through  the Pick.Click.Give program.  This makes                                                                   
     participation    in   the   program    impractical   for                                                                   
     organizations  of this  size.  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.  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 the 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.  It  is  the                                                                   
     smaller  non-profits which  nourish Alaskan  communities                                                                   
     on  a personal level,  which open  pathways for  budding                                                                   
     artistic   talents    and   provide    the   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.                                                                         
                                                                                                                                
9:09:42 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman noted  the  one previously  published  zero                                                                   
fiscal note from the Department of Revenue (DOR).                                                                               
                                                                                                                                
CS HB 302 (FIN)  was HEARD and HELD in committee  for further                                                                   
consideration.