Legislature(2015 - 2016)BUTROVICH 205
03/24/2015 08:30 AM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB75 | |
| SJR3 | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 3 | TELECONFERENCED | |
| *+ | SB 75 | TELECONFERENCED | |
| *+ | HB 35 | TELECONFERENCED | |
| += | SB 22 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 75-PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS
8:46:16 AM
CHAIR STOLTZE announced that the first order of business would
be SB 75.
8:46:19 AM
SENATOR GARY STEVENS, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 75 sponsor, provided an overview as follows:
SB 75 is legislation that attempts to expand the
popular Permanent Fund Dividend's "Pick.Click.Give."
program. The idea is to include federally recognized
tribal governments and it also subjects those tribal
governments to those same rules, same regulations that
apply to all other entities, $250 enrollment is
currently applied to each of those participants.
8:47:06 AM
DOUG LETCH, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, reiterated that SB 75 is straight
forward legislation that would add tribal governments to the
list of eligible recipients. He explained that
"Pick.Click.Give." was currently reserved for 501(c) nonprofit
organizations. He detailed that while tribes are considered tax
exempt organizations that are eligible to receive tax deductible
donations under Internal Revenue Code (IRC) Section 7871 and are
listed in Revenue Procedure 2008-55, the tribes do not meet the
current designation to participate in "Pick.Click.Give." without
a change in statute.
He explained that SB 75 would impact potentially the 229
federally recognized tribes in Alaska, organizations that offer
a variety of services to tribal members and residents of their
villages. He noted that the tribes are often the largest and
many times the sole service providers in villages that offer
services and activities designed for the benefit of their
community. He detailed that activities are generally geared
towards youth development, low income families, the elderly, and
victims of violence. He said having the ability to be listed in
Pick-Click-Give would make it easier for tribes to access local
contributions and could help the public understand the
importance of the tribal programs.
He noted that one of the benefits from the "Pick.Click.Give."
program is that people make donations before seeing their
Permanent Fund Dividend (PFD) check. He opined that making a
donation is easier when applying for a PFD where the money is
not missed on the other end. He said when the "Pick.Click.Give."
bill was enacted in 2008, the program has made millions of
dollars available to eligible organizations over the years. He
pointed out that $2.8 million from some 27,000 Alaskans was
donated the previous year. He said the Department of Revenue has
projected that approximately $3 million will be donated to
eligible organizations through the "Pick.Click.Give." and the
PFD program later this year. He summarized that tribal
governments would like the opportunity to participate as well.
8:47:35 AM
SENATOR WIELECHOWSKI joined the committee meeting.
8:49:51 AM
SENATOR STEVENS explained that the idea came from the native
village of Afognak and noted their letter of support submission.
He noted that a letter of support was received from the
Chickaloon Village Traditional Council. He added that several
other tribal governments are expected to support the bill.
CHAIR STOLTZE stated that he would like to have the Department
of Revenue's position on the record prior to sending the bill on
its way.
SENATOR STEVENS replied that he understood Chair Stoltze's
request. He said Mr. Burnett, Deputy Commissioner for the
Department of Revenue, will be available later in the meeting.
CHAIR STOLTZE said the bill will be held until Mr. Burnett
addresses the committee.
8:52:24 AM
MELISSA BORTON, Tribal Administrator, Native Village of Afognak,
Kodiak, Alaska, explained the village's support for the bill as
follows:
We are one of ten federally recognized tribes located
on the island. My tribe, like many other tribes in
Alaska, hosts several different youth activities that
we fundraise for annually. In addition to youth
activities, we also provide social service programs,
tutoring programs, language revitalization programs,
substance abuse prevention, domestic violence
prevention, and child abuse and neglect prevention
programs. All of our tribe's programs are geared
toward the betterment of our community and the
development of our youth; sometimes that is specific
to our tribal members and sometimes it's for the
greater community, it's not always geared towards our
tribal members. We regularly get asked if we
participate in the "Pick.Click.Give." program because
Alaska residents are now appreciating how easy it is
to give portions of their PFD towards non-profits.
However, as you know, the current legislation
restricts our eligibility. Tribes under IRS Code
Section 7871 are afforded the same rights as states
and are eligible to accept charitable contributions.
However, because we aren't a 501(c)(3) organization,
this often times limits our ability to apply for
certain foundation grants and also limits our
fundraising through certain crowdfunding websites.
Tribes having the ability to be listed as eligible
organizations under "Pick.Click.Give." would give us
another avenue to fund our various programs, bring
awareness to the greater Alaskan community about the
importance of tribal programs, and further strengthen
the relationship between the state government and
Alaska tribes.
MS. BORTON summarized that the Native Village of Afognak had
discussions with the Rasmuson Foundation as well as a scheduled
meeting with the Alaska Federation of Natives to solicit support
for the bill.
SENATOR WIELECHOWSKI asked if contributions to a federally
recognized tribe are tax deductible.
MS. BORTON answered yes. She noted that donations are accepted
from private and corporate contributors. She said she has
verified with the Internal Revenue Service's tribal liaison in
Anchorage that contributions to a federally recognized tribe are
tax deductible.
8:55:25 AM
CHAIR STOLTZE closed public testimony and announced that he
would set SB 75 aside until the Department of Revenue testifies
to get their position on record.
SB 75-PFD CONTRIBUTIONS TO TRIBAL GOVERNMENTS
9:54:48 AM
VICE CHAIR HUGGINS called the committee back to order and
announced that SB 75 was back before the committee.
9:55:29 AM
DOUG LETCH, Staff, Senator Stevens, Alaska State Legislature,
Juneau, Alaska, stated that Mr. Barnett from the Department of
Revenue was present to answer questions that to be entered into
the record.
JERRY BURNETT, Deputy Commissioner, Alaska Department of
Revenue, Juneau, Alaska.
MR. LETCH explained that Chair Stoltze wanted to hear the
department's position on SB 75. He said there was the
indeterminate fiscal note, which explained that the new entrants
to the program would pay the $250 fee and be subjected to the
same terms as the current participants.
VICE CHAIR HUGGINS pointed out that particular emphasis was on
the fiscal note.
MR. BURNETT explained that the fiscal note was indeterminate
because the Department of Revenue has no idea how many new
entities may come into the program. He specified that there will
be some costs associated with the bill, but each entrant will
pay a set $250 fee with 7 percent of the pledges withheld for a
management contract. He stated that who the department is taking
pledges on behalf of does not matter.
9:57:01 AM
VICE CHAIR HUGGINS asked Mr. Burnet to restate what the fiscal
note impact will be.
MR. BURNETT answered that depending on the number of new
entities, each entrant would pay a $250 fee. He said the
department will potentially have some additional costs depending
on how many entrants there are, but the fiscal impact is
covered.
VICE CHAIR HUGGINS asked hundreds, thousands, or tens of
thousands.
MR. BURNETT answered that the department is looking at probably
low thousands of dollars; but, it would be paid for by the new
entrants. He added that each year there are different numbers of
participants in the "Pick.Click.Give." program because
charitable organizations can come and go. He summarized that the
new entrants would just be handled the same as any other entity
that is covered in the program.
VICE CHAIR HUGGINS asked if Mr. Letch had any additional
comments.
MR. LETCH thanked the Native Village of Afognak for bringing the
idea forward.
SENATOR MCGUIRE thanked the bill sponsors for bringing the bill
forward. She commented that she has personal experience seeing
small community tribes providing social services and educational
services. She opined that small community tribes are more in
touch with community. She added that the donations are tax
deductible.
SENATOR MCGUIRE moved to report SB 75 from committee with
individual recommendations and attached fiscal note(s).
9:58:58 AM
VICE CHAIR HUGGINS announced that seeing no objection, SB 75 is
reported from the Senate State Affairs Standing Committee.