01/30/2018 03:30 PM Senate STATE AFFAIRS

          SB 8-PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS                                                                      
                                                                                                                              
3:32:14 PM                                                                                                                    
CHAIR MEYER announced the consideration  of Senate Bill 8 (SB 8).                                                               
He  noted that  at a  previous hearing,  Senator Wilson  raised a                                                               
concern pertaining  to prohibition  of a guardian  contributing a                                                               
child's Permanent Fund Dividend (PFD) to a tribal government.                                                                   
                                                                                                                                
3:32:59 PM                                                                                                                    
DOUG  LETCH, Staff,  Senator Stevens,  Alaska State  Legislature,                                                               
Juneau,  Alaska, said  SB 8  is straight  forward legislation  to                                                               
allow    PFD   contributions    to   tribal    native   nonprofit                                                               
organizations. He  noted that an  amendment will be  offered that                                                               
addresses Senator  Wilson's question.  He disclosed  that Senator                                                               
Stevens  supports the  proposed amendment  by Senator  Wilson. He                                                               
noted that  Melissa Borton, Tribal  Administrator for  the Native                                                               
Village of  Afognak intends  to testify  from Kodiak.  He pointed                                                               
out that  the Native  Village of  Afognak was  one of  the tribal                                                               
organizations  in Kodiak  that approached  Senator Stevens  about                                                               
accessing the PFD's Pick.Click.Give program.                                                                                    
                                                                                                                                
3:35:11 PM                                                                                                                    
CHAIR MEYER opened public testimony.                                                                                            
                                                                                                                                
3:36:04 PM                                                                                                                    
NINA KEMPPEL,  President & CEO,  The Alaska  Community Foundation                                                               
(ACF),  Anchorage, Alaska,  testified  in support  of  SB 8.  She                                                               
explained  that  ACF  manages   the  Pick.Click.Give  program  in                                                               
concert  with other  partners including  the Rasmuson  Foundation                                                               
and  The Foraker  Group. She  said ACF  has no  inherent concerns                                                               
regarding  SB 8.  She noted  that there  was an  Internal Revenue                                                               
Service  (IRS) ruling  that  allows  federally recognized  tribal                                                               
organizations to receive charitable donations.                                                                                  
                                                                                                                                
3:37:24 PM                                                                                                                    
SARA  RACE, Director,  Permanent Fund  Dividend Division,  Alaska                                                               
Department of  Revenue, Juneau, Alaska, addressed  the division's                                                               
fiscal note  as to  how SB  8 could impact  the PFD  Division and                                                               
noted  that  SB  8  is  in  line  with  the  other  participating                                                               
organizations in  the Pick.Click.Give program where  7 percent of                                                               
the  contributions are  collected by  the PFD  Division to  cover                                                               
administrative costs.                                                                                                           
                                                                                                                                
CHAIR MEYER asked  how the division arrived at  the dollar amount                                                               
in their fiscal note.                                                                                                           
                                                                                                                                
MS. RACE explained  that the division has a  contract with United                                                               
Way for  the Pick.Click.Give  program's application  process. She                                                               
detailed that  United Way provided their  billing input regarding                                                               
programming hours for changes required for SB 8.                                                                                
                                                                                                                                
3:39:43 PM                                                                                                                    
CHAIR MEYER closed public testimony.                                                                                            
                                                                                                                                
3:39:56 PM                                                                                                                    
SENATOR  WILSON   moved  to  adopt   Amendment  1,   labeled  30-                                                               
LS0176\A.2.                                                                                                                     
                                                                                                                                
                      A M E N D M E N T 1                                                                                   
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                    BY SENATOR WILSON                                                                 
                                                                                                                                
                                                                                                                                
     Page 4, following line 28:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 7.  AS 43.23.062 is amended by  adding a new                                                                  
          subsection to read:                                                                                                   
                    (o) A  person who  claims a  dividend on                                                                    
          behalf   of    an   unemancipated    minor   under                                                                    
          AS 43.23.005(c)  when  the  minor is  the  subject                                                                    
          of   an   adoption  or   guardianship   proceeding                                                                    
          pending in a tribal court  may not elect to make a                                                                    
          contribution  from  the   minor's  dividend  to  a                                                                    
          federally recognized  tribal government  under (a)                                                                    
          of this section."                                                                                                     
                                                                                                                                
SENATOR WILSON  explained that the  amendment inserts a  new bill                                                               
section under page 4, [following  line 28]. He said the amendment                                                               
seeks to protect the unemancipated  minors  PFD when the minor is                                                               
the  subject  of an  adoption  or  guardianship proceeding  in  a                                                               
tribal  court. This  is  like  AS 47.10.15  for  a  PFD under  AS                                                               
43.23.15 where  the Office  of Children's  Services (OCS)  puts a                                                               
minor's PFD into  a trust until the minor turns  21 or reaches 18                                                               
and is emancipated. He summarized that  SB 8 would add a layer of                                                               
protection to  make sure a child's  PFD is not used  to help fund                                                               
tribal governments.                                                                                                             
                                                                                                                                
MR. LETCH  stated that Senator Stevens  supports Senator Wilson's                                                               
amendment because it clarifies the process.                                                                                     
                                                                                                                                
CHAIR MEYER  announced that seeing  no objection, Amendment  1 is                                                               
adopted.                                                                                                                        
                                                                                                                                
3:42:02 PM                                                                                                                    
SENATOR GIESSEL moved to report  SB 8, [CSSB 8(STA)], version 30-                                                               
LS0176\A    as   amended    from   committee    with   individual                                                               
recommendations and attached fiscal note.                                                                                       
                                                                                                                                
3:42:27 PM                                                                                                                    
CHAIR  MEYER  announced  that  being  no  objection,  the  motion                                                               
carried.