Legislature(2023 - 2024)DAVIS 106
02/08/2023 06:00 PM House WAYS & MEANS
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Audio | Topic |
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Start | |
HB45 | |
Presentation(s): Alaska's Economic Overview | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | HB 45 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+ | TELECONFERENCED |
HB 45-PFD CONTRIBUTIONS TO GENERAL FUND AND PF 6:02:23 PM CHAIR CARPENTER announced that the first order of business would be HOUSE BILL NO. 45, "An Act relating to contributions from permanent fund dividends to the general and permanent funds." 6:03:08 PM REPRESENTATIVE MIKE PRAX, Alaska State Legislature, prime sponsor, presented HB 45. He proceeded to read the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: House Bill 45 sets up a mechanism to give Alaskans the choice of donating all or portion of their Permanent Fund dividends (PFD) directly to the state's general fund. Participants can donate from a minimum of $25 to the full amount of their PFD in increments of $25. A donation to the State General fund, in some cases, can be counted as a charitable donation for federal tax purposes. It is advised, however, that Alaskan consult with a tax professional to verify how this may apply to them individually. Donations through HB 45 are subject to a seven percent administrative fee paid t the Permanent Fund Dividend Division. HB 158 also clarifies that donations mad through Pick.Click.Give. take priority over donations to the general fund if there I a shortfall. 6:06:47 PM RILEY NYE, Staff, Representative Mike Prax, Alaska State Legislature, on behalf of Representative Prax, prime sponsor, presented the sectional analysis for HB 45 [included in the committee packet], which read as follows [original punctuation provided]: HB 45 allows Alaskans to electronically donate their permanent fund dividend (PFD) to the general revenue fund through the Pick.Click.Give program in $25.00 increments. The bill amends AS 43.23 regarding the electronic application: The addition of section AS 43.23.135 (a) requires the electronic application to have a button to allow residents to donate their PFD in $25.00 increments to the general revenue fund. This enables Alaskans to donate $25.00, or greater amounts, of their PFD to the general revenue fund if they so choose. The next section (b) precludes a state agency "that can file on the behalf of a person" from donating to that same agency. The next section (c ) dictates that buttons that allow donations to the state be separated from the charitable group list posted in the Pick.Click.Give program so the state is not competing with charities. The passage of this bill will greatly facilitate Alaskans ability to donate their PFD to the state general revenue fund. Currently, Alaskans must apply for the dividend, receive the dividend, and then return it through the US mail. By putting a button on the electronic application process, Alaskans can easily donate $25.00 and additional increments of their PFD to the general revenue fund. HB 45 was originally introduced in the 32nd legislature as HB 158. It was amended in House Finance in that legislature. It enjoyed 22 co-sponsors and was in House Rules when the 32nd legislature ended sine die. It has been reintroduced in the 33rd legislature in the version that came out of House Finance. CHAIR CARPENTER invited questions from members of the committee. 6:08:45 PM REPRESENTATIVE MCCABE alluded to a discrepancy between the sponsor statement and the bill. The bill, he observed, stated that Alaskans could donate a portion of their permanent fund dividend (PFD) to the state's general fund (GF) or the principal of the Alaska Permanent Fund, whereas the sponsor statement only made reference to the GF. REPRESENTATIVE PRAX confirmed that both the GF and the principle were allowable options. 6:09:34 PM REPRESENTATIVE GROH inquired about the fiscal note, asking why it showed zero after the initial year of implementation. Additionally, he asked how many people took advantage of the option to donate all or a portion of their PFD. REPRESENTATIVE PRAX pointed out that the fiscal note reflected a cost of $113,800 for programming fees in FY 24, after which there were no projected costs due to the 7 percent deduction. CHAIR CARPENTER restated the second part of the question, asking how many people would participate in the program. REPRESENTATIVE PRAX said he did not know how many people may participate. He reported that 105 people wrote a check to the state in 2020 and suggested advertising the program if it proved viable. 6:12:03 PM REPRESENTATIVE GRAY asked whether there was a mechanism to avoid the 7 percent fee. REPRESENTATIVE PRAX directed the question to the Department of Revenue (DOR). REPRESENTATIVE GRAY considered a scenario in which a person wanted to donate his/her entire dividend. He asked whether there was an easier way to accomplish that donation without first receiving the dividend, counting it towards income, and paying taxes on it. REPRESENTATIVE PRAX concluded that there was not a workaround. He noted, however, that if a person decided not to apply for the PFD, his/her portion of the dividend would be distributed to all other recipients. 6:14:19 PM CHAIR CARPENTER announced that HB 45 would be held over.
Document Name | Date/Time | Subjects |
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HB 45 Version A.pdf.PDF |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 Sponsor Statement Version A.pdf.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 Sectional Analysis Version A.pdf.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 from HB 158 32nd Additional Info - Leg Legal Memo on Taxes and PFD Donations.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 PFD Deduction Priorities.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 Reference Materials Pick.Click.Give chart.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 Fiscal Note HB045-DOR-PFD-2-3-23.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
HB 45 Letter of Support.pdf |
HW&M 2/8/2023 6:00:00 PM HW&M 2/13/2023 6:00:00 PM |
HB 45 |
DOLWD_House Ways Means Committee_February 8 2023.pdf |
HW&M 2/8/2023 6:00:00 PM |