HB 166-CONTRIBUTIONS FROM PERM. FUND DIVIDENDS 8:12:50 AM CHAIR LYNN announced that the first order of business was HOUSE BILL NO. 166, "An Act relating to contributions from permanent fund dividends to community foundations, to certain educational organizations, and to certain other charitable organizations that provide a positive youth development program, workforce development, aid to the arts, or aid and services to the elderly, low-income individuals, individuals in emergency situations, disabled individuals, or individuals with mental illness; and providing for an effective date." 8:13:07 AM REPRESENTATIVE JOHNSON moved to adopt the committee substitute (CS) for HB 166, Version 25-LS0678\C, Cook, as a work draft. There being no objection, Version C was before the committee. 8:13:38 AM KACI HOTCH, Staff to Representative Bill Thomas, Jr., Alaska State Legislature, reviewed the changes made in Version C, on behalf of Representative Thomas, prime sponsor of HB 166. The first change, she noted, opens the program up to all 501(c)(3) entities, with one exception shown on page 2, [lines 15-17], which read as follows: (c) The department may not include on the contribution list an educational organization, community foundation, or charitable organization that is the affiliate of a group. MS. HOTCH noted that clarification is made on page 2 that every 501(c)(3) that is eligible must reapply each year. She said that requirement will prevent the necessity of the state searching out a 501(c)(3) that it thinks may no longer be eligible. MS. HOTCH pointed to another change on page 3, line 24, which states that before a contract with a corporation or organization that will be managing the program is executed, a copy of that entity's policies and procedures must be on file with the Department of Revenue. Another change is found on page 3, line 26, which provides that the department can circumvent the procurement code if it desires to do so. 8:16:15 AM REPRESENTATIVE JOHNSON moved to report CSHB 166, Version 25- LS0678\C, Cook, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 166(STA) was reported out of the House State Affairs Standing Committee.