HB 149-LOBBYING BY NONPROFITS CHAIR WEYHRAUCH announced that the next order of business was HOUSE BILL NO. 149, "An Act requiring nonprofit corporations under the Alaska Net Income Tax Act to provide prior public notice of lobbying expenditures and an annual report of lobbying expenditures to the Department of Revenue; providing for a civil penalty for failure to provide the notice; and providing for an effective date." [Before the committee is Version 23-LS0354\H, which had been amended at previous meetings. Although this document is entitled and referred to as a sponsor substitute, it was not officially such and thus the document only exists in the committee packet.] Number 0284 ROSEMARY HAGEVIG, Executive Director, Catholic Community Services (CCS), informed the committee that CCS is a social services organization that has been in business in Southeast Alaska for 30 years. She emphasized that CCS is concerned about the implications in this legislation in "all of its versions." She said that she is unable to determine after reading the sponsor statement, exactly what the rationale is for the changes that are proposed. MS. HAGEVIG stated that CCS has worked diligently on behalf of vulnerable senior citizens, and it has provided a wide range of services for families and children. Ms. Hagevig said that CCS's mission statement is clear. She noted that it is on file with the Department of Commerce, and is part of CCS's incorporating papers. She said she would read the mission statement for the record. It read as follows: Catholic Community Service advocates and offers social service opportunities for all Southeast Alaskans, emphasizing social justice and compassion. We accomplish this mission by fostering the self- sufficiency and dignity of individuals and families affirming diversity in culture, faith and way of life. MS. HAGEVIG pointed out that it is a two-prong mission: CCS provides services on the ground 24 hours a day, 7 days a week, and 365 days a year; it also has an obligation to advocate for the vulnerable people it serves. MS. HAGEVIG revealed that CCS receives funding through grants and contracts from the federal, state, and local governments, as well as from tribal organizations. She stated, "These are clearly restricted dollars and are never used for advocacy or lobbying." She said that CCS's contributors understand the scope of work it does and expects CCS to fulfill its mission. [House Bill 149] would seriously impede CCS's ability to fully meet its mission, she stated. She said she thinks that it's important for the committee to understand that the proposed legislation would have "really negative impacts in a very broad- brushed way for a number of organizations." Number 0525 REPRESENTATIVE SEATON noted that the federal law changed the limit a "501(c)(3)" [nonprofit organization] could spend from "an insignificant amount of this money," to 20 percent of its money. He asked Ms. Hagevig if she could foresee ever spending 20 percent of CCS's funds on lobbying. MS. HAGEVIG replied that that would be her fondest wish; however, an organization such as CCS would never ever have that kind of money available to it. She revealed that CCS spends a miniscule amount of its total budget on advocacy. She added that she cannot envision a time when CCS would "ever approach 20 percent." Number 0619 REPRESENTATIVE GRUENBERG said that, technically, there should be a CS before the committee; however, he indicated that there is a typo. He clarified that HB 149 "did not incorporate an amendment that the committee adopted." CHAIR WEYHRAUCH replied that the committee would have to deal with that another time. [HB 149 was heard and held.]