Legislature(2017 - 2018)SENATE FINANCE 532
02/20/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB8 | |
| SB154 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 8 | TELECONFERENCED | |
| + | SB 154 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 8
"An Act allowing federally recognized tribal
governments to receive contributions from permanent
fund dividends."
9:04:58 AM
SENATOR STEVENS, SPONSOR, spoke to SB 8. He relayed that
the bill was "remarkably simple." He reported that the bill
allowed federally recognized tribal governments to receive
contributions from the Permanent Fund Dividends (PFD)
through the popular Pick.Click.Give. program.
DOUG LETCH, STAFF, SENATOR GARY STEVENS, addressed the
bill. He related that the bill granted native non-profit
organizations the opportunity to participate in the
Pick.Click.Give. program. Currently, the program was
reserved for 501(c)(3) non-profit organizations. Tribal
governments were tax exempt organizations but were not
designated as 501(c)(3). He elaborated that SB 8 required
the Department of Revenue (DOR) to allow federally
recognized tribal governments to appear on the
Pick.Click.Give. eligible recipients list. Subsequently,
the tribal entities would be subject to the same
regulations and $250 fees currently applied to the
program's participants. The idea was derived from native
organizations in Kodiak. He noted letters of support in the
members bill packet. The sponsor had not encountered any
opposition to the bill. He reminded the committee that
Since 2009, Pick.Click.Give. offered Alaskans an easier way
to help hundreds of nonprofits fulfill their missions
through direct contributions from their PFDs. The result
was millions of dollars donated to eligible organizations
over the years. The addition of federally recognized tribal
governments to the list of Pick.Click.Give. recipients
extended the program's reach, while opening another avenue
of fundraising for these important organizations.
9:07:25 AM
Co-Chair MacKinnon requested that Mr. Letch proved a
sectional analysis.
Mr. Letch addressed the Sectional Analysis:
Section I. Adds federally recognized tribal
governments to AS 43.23.062(a), allowing federally
recognized tribal governments to receive contributions
from permanent fund dividends.
Section 2. Amends AS 43.23.062(b), requiring the
department to place federally recognized tribal
governments on the contribution list.
Section 3. Amends AS 43.23.062(c) to state that the
department may not add a federally recognized tribal
government to the contribution list unless the purpose
of the federally recognized tribal government meets
one of the purposes listed.
Section 4. Amends AS 43.23.062(d) to exempt federally
recognized tribal governments from various
requirements that other educational and charitable
organizations must meet under the section.
Section 5. Adds federally recognized tribal
governments to AS 43.23.062(t), which requires an
application fee to be placed on the permanent fund
dividend contribution list.
Section 6. Adds federally recognized tribal
governments to AS 43.23.062(m), which allows the
department to withhold a coordination tee from each
entity that receives contributions from permanent
fund dividends.
Section 7. Adds new subsection (o) to AS 43.23.062
stating that a person who claims a dividend on behalf
of an unemancipated minor under AS 43.23.00S(c) when
the minor is the subject of an adoption or
guardianship proceeding pending in a tribal court may
not elect to contribute from the minor's dividend to a
federally recognized tribal government under (a) of
this section.
9:09:35 AM
Co-Chair MacKinnon OPENED public testimony.
LAURIE WOLF, PRESIDENT, FORAKER GROUP, testified in support
of the bill. She articulated that the Foraker Group was a
statewide nonprofit organization with the purpose to
strengthening nonprofits including tribal governments
across the state. The group worked with thousands of
nonprofits statewide, which included small remote rural
communities. The group provided education, facilitation,
and planning services. She emphasized that the group was
non-partisan. She had been involved in the Pick.Click.Give
program since its inception. The program was implemented by
the Foraker Group, Rasmussen Foundation, United Way of
Anchorage, and DOR. Currently the program was run by the
Alaska Community Foundation. The unique program had three
goals; to grow the number of donors, to increase the amount
of donations to nonprofits, and to raise awareness of the
power of individual philanthropy.
9:13:01 AM
Ms. Wolf continued her testimony. She reported that the
"implementation partners" of the program had wanted to
include tribal entities lacking 501(c)(3) status as
eligible participants. She understood the impetus of the
legislation was to assist tribes provide services for youth
development, workforce development, arts and culture, and
services for the elderly and low income individuals. She
emphasized that the group was not opposed to clarifying the
statutes to allow the participation of tribal governments
in the program.
Senator von Imhof asked about the difference between a
501(c)(3) nonprofit, which was not politically active;
versus the 501(c)(4), that had the liberty to engage in
political action. She asked about the designated
differences and what the status of tribal organizations
were. Ms. Wolf qualified that she was not an attorney and
could not provide a precise definition of the terms. She
acknowledged that Alaskan tribes were independent
governments, and many had filed for 501(c)(3) status and
some carried 501(c)(4) status. She indicated that the
tribal organization was required to meet the criteria
established by the program for 501(c)(3) organizations to
provide human resource and service needs across the state
to qualify. Regardless of their tax status the program's
criteria must be met to qualify for Pick.Click.Give. under
the bill. Senator von Imhof understood that the tribal
organization was required to meet the fundamental criteria
of a 501(c)(3) to qualify under the bill. She relayed that
currently one could access the annual financial income for
any 501(c)(3) nonprofit with the Form 990. She asked
whether the same ability would exist with the non-501(c)(3)
tribal governments that qualified for Pick.Click.Give under
the bill to determine if they were good stewards of the
money. Ms. Wolf was uncertain of the answer. She did not
know what the filing requirements were for tribal
governments. She offered to provide the information later.
Co-Chair MacKinnon asked for the information to be
delivered to her office for committee distribution.
9:17:35 AM
MARY BISHOP, SELF, FAIRBANKS (via teleconference), spoke in
opposition to the bill. She stated that while tribes were
endeavoring to carry out worthwhile programs for their
members, tribal governments had immunity from lawsuits for
activities like misuse of funds, unless a waiver of
sovereign immunity was signed. She mentioned a lawsuit
between two tribes in Southeast Alaska. She believed the
issue was problematic in relation to the bill. She
purported that tribes in the Lower 48 were often
politically active, and she saw no reason why tribal
governments in Alaska would not act similarly. She thought
the funds could be used for political purposes. She
encouraged the sponsor to amend the legislation to avoid
the stated issues.
9:19:45 AM
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon asked if there was a reason that the
bill was not limited to federally recognized tribes in
Alaska rather than all federally recognized tribes. Senator
Stevens answered in the negative. He furthered that the
purpose of the bill was specifically for Alaskan tribes. He
reminded the committee that the donated funds in question
were from individuals that received PFDs who could choose
how to distribute the funds however they desired.
Co-Chair MacKinnon did not see the distinction in the bill
and worried that lower 48 tribes could apply for the
program. Senator Stevens stated that he had no objection to
limiting the bill to Alaskan tribal governments only.
Senator Olsen voiced his support of the bill.
9:21:46 AM
Vice-Chair Bishop addressed the fiscal impact note, FN1
(REV), from DOR, allocated to the Permanent Fund Dividend
Division which was in the amount of $9,000 in FY 19. He
read from page 2 of the analysis:
Additional programming will be required on the PFD
application as well as the participation application
as tribal governments do not have the same
requirements as the other participants, nor are there
search options that fit their criteria. As fees are
collected, continued administrative costs will be
covered. However, since AS 43.23.062(e) states that
"the department may not use money from the dividend
fund for administrative costs incurred in implementing
this section, even if it has been appropriated for
costs of administering the dividend program" a onetime
amount of $9,000 will be necessary. This is an
estimate of 75 hours of programming at a rate of $120
per hour.
Senator von Imhof believed that non-profits that received
funds from Pick.Click.Give pay a 7 percent annual
administrative fee. She asked whether she was correct.
SARA RACE, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,
DEPARTMENT OF REVENUE, answered in the affirmative. She
informed committee members that participants in the program
pay an initial $250 application fee and subsequently, 7
percent annually was withheld from contributions for
administering the program. She asked if it would make sense
to extend the annual fee to any native entities that enter
the program via the bill. Ms. Race believed that the bill
contained a provision to collect the 7 percent assessment.
Senator von Imhof asked if the one-time fee was also
included in the bill. Ms. Race stated that the $250
application fee was included in the legislation.
Co-Chair MacKinnon appreciated the clarity.
9:25:03 AM
Co-Chair MacKinnon asked whether Ms. Race wanted to provide
comments on the bill. She referenced testimony that
suggested tribes should currently qualify, and the bill was
a clarification rather than a new provision. She also noted
the testimony about tribal sovereignty and the potential
difficulty in tracking how funds were spent. Ms. Race
understood that not all tribal governments had 501(c)(3)
status. She clarified that the tribal organizations were
subject to the same fees and requirements under the bill.
Therefore, from the administrative and agency standpoint
the tribal organizations would be like the other
organizations the program currently worked with. Co-Chair
MacKinnon asked if the bill should require that tribal
organizations gain 501(c)(3) status in order to
participate in the program. Ms. Race felt that she should
not speak to the question.
Senator Micciche inquired why Co-Chair MacKinnon was asking
the question. He favored the ability to check the financial
records of the tribal participants. Co-Chair MacKinnon
stated she was referencing the two previous speakers, one
of which had suggested that the bill address the legal
immunity issue. She referred to Senator von Imhof's
comments about the Form 990 disclosure that
501(c)(3)nonprofits were subject to. She commented that she
had asked the question to determine whether the state had
legal recourse if the contributions were misused. Senator
Micciche requested information regarding how many tribal
organizations that could potentially participate in the
program were 501(c)(3)nonprofits and how many were not.
Co-Chair MacKinnon asked the sponsor to find the answer.
9:28:38 AM
Senator von Imhof stated that the Pick.Click.Give program
was the "brain child of the Rasmussen Foundation," of which
she was a member. She emphasized that the original intent
of the program was to provide money to nonprofit
organizations designated by its 501(c)(3) status.
Co-Chair MacKinnon asked whether the administration had a
position on the bill and whether participation should
extend to all federal tribes or exclusively Alaskan tribes.
Ms. Race answered that the agency was neutral on the bill
but believed the tribes should be Alaskan.
Co-Chair MacKinnon stated that amendments to the bill were
due to her office by the following Thursday at 5:00 p.m.
SB 8 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 8 Sectional Analysis.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 8 |
| SB 8 Summary of Changes.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 8 |
| SB 8 Sponsor Statement.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 8 |
| SB 8 support letters.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 8 |
| SB 154 pick click give flow chart.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 154 |
| SB 154 Pick Click Give Program overview.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 154 |
| SB 154 Sectional Analysis, ver D.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 154 |
| SB 154 Sponsor Statement.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 154 |
| SB 8 - Opposition Bishop.pdf |
SFIN 2/20/2018 9:00:00 AM |
SB 8 |