04/15/2019 09:00 AM Senate FINANCE

SENATE BILL NO. 92                                                                                                            
                                                                                                                                
     "An Act relating to contributions from permanent fund                                                                      
     dividends to the general fund."                                                                                            
                                                                                                                                
9:20:15 AM                                                                                                                    
                                                                                                                                
JASMIN MARTIN, STAFF, SENATOR DAVID WILSON, introduced                                                                          
herself.                                                                                                                        
                                                                                                                                
9:20:48 AM                                                                                                                    
                                                                                                                                
SENATOR DAVID WILSON, SPONSOR explained the legislation. He                                                                     
stated that it provided a mechanism to donate an individual                                                                     
Permanent Fund Dividend to the General Fund.                                                                                    
                                                                                                                                
Senator Wilson explained the Sectional Analysis (copy on                                                                        
file):                                                                                                                          
                                                                                                                                
     Part (a)                                                                                                                   
          ?  Defines   the  parameters  and   increments  for                                                                   
          contributing to the general fund,                                                                                     
          ?     Establishes     that    donations     through                                                                   
          Pick.Click.Give.  take priority  over donations  to                                                                   
          the general fund if there is a shortfall, and;                                                                        
          ? Requires  a seven  percent administration  fee is                                                                   
          deducted from donations to the general fund.                                                                          
          page 1, lines 3  15 continuing on page 2, line 1                                                                      
     Part (b)                                                                                                                   
          ?  Notes  that  a  public   agency  that  claims  a                                                                   
          dividend   on  an   individual's   behalf  is   not                                                                   
          permitted   to   make   contributions   from   that                                                                   
          dividend.                                                                                                             
          page 2, lines 2-4                                                                                                     
     Part (c)                                                                                                                   
          ? Explicitly states that this is separate from                                                                        
          the Pick.Click.Give "button," or mechanism, in                                                                        
          the dividend application.                                                                                             
          page 2, lines 5-8                                                                                                     
                                                                                                                                
Senator Wilson explained the fiscal note.                                                                                       
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
Co-Chair  Stedman noted  that the credit  agencies looked  to                                                                   
the Permanent Fund  Dividend to collect funds  that were owed                                                                   
to different entities.  He wondered what would  occur, should                                                                   
there  be garnishments,  and whether  the  dividend could  be                                                                   
gifted   to  the   state   while   not  paying   one's   debt                                                                   
obligations.                                                                                                                    
                                                                                                                                
Co-Chair  von   Imhof  called   Ms.  Weske  to   address  the                                                                   
question.                                                                                                                       
                                                                                                                                
9:26:51 AM                                                                                                                    
                                                                                                                                
ANNE  WESKE,  DIRECTOR,  PERMANENT  FUND  DIVIDEND  DIVISION,                                                                   
replied that there  was a priority order for  PFD payments in                                                                   
the  payout, and  garnishments  were first  in that  priority                                                                   
order. One could not bypass a garnishment.                                                                                      
                                                                                                                                
Co-Chair  Stedman surmised  that the  people could not  avoid                                                                   
their obligations by giving their PFD to the state.                                                                             
                                                                                                                                
Ms. Weske replied in the affirmative.                                                                                           
                                                                                                                                
Senator Micciche  remarked that the  bill did not  change the                                                                   
current situation  in the  state. He  felt that there  should                                                                   
be a consideration for people  to donate their PFD tax free.                                                                    
                                                                                                                                
Co-Chair  von Imhof  looked  at  the Sponsor  Statement,  and                                                                   
remarked that  some cases  could be counted  as a  tax exempt                                                                   
contribution,  but  said  that   one  should  consult  a  tax                                                                   
professional.                                                                                                                   
                                                                                                                                
                                                                                                                                
Senator Micciche  agreed, and  commented on the  contribution                                                                   
based on one's tax bracket.                                                                                                     
                                                                                                                                
Co-Chair  von  Imhof  stated  that  there  could  be  further                                                                   
conversations about an amendment.                                                                                               
                                                                                                                                
Senator  Wilson stressed  that  people should  keep in  touch                                                                   
with a tax professional about their contribution.                                                                               
                                                                                                                                
9:31:29 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  wondered  whether   the  bill  was  created,                                                                   
because of Senator Wilson's concerns  from his constituents.                                                                    
                                                                                                                                
Senator  Wilson replied  that it  was in  response to  people                                                                   
around the state.                                                                                                               
                                                                                                                                
Co-Chair  von  Imhof  cautioned  that  tax  planning  was  an                                                                   
individual issue.                                                                                                               
                                                                                                                                
Senator  Micciche stressed  that  if someone  does not  apply                                                                   
for the dividend,  the dividend get split up  between all the                                                                   
people  that  apply.  He  stressed  that  participating  will                                                                   
always be related to one's tax bracket.                                                                                         
                                                                                                                                
Senator Wilson shared  that there was a new  program added to                                                                   
the PFD,  and asked  for how  that program  had affected  the                                                                   
other PFD charitable giving programs.                                                                                           
                                                                                                                                
Ms.  Weske shared  that the  education raffle  was added  the                                                                   
year  before, but  the numbers  for  Pick.Click.Give did  not                                                                   
decline,  nor  did  UA college  savings.  She  stressed  that                                                                   
there  was  an  additional  $1   million  for  the  education                                                                   
raffle.                                                                                                                         
                                                                                                                                
SB  92   was  HEARD  and   HELD  in  committee   for  further                                                                   
consideration.