CS FOR HOUSE BILL NO. 75(FIN) "An Act amending certain audit requirements for entities receiving contributions from permanent fund dividends; requiring the three main campuses of the University of Alaska to apply to be included on the contribution list for contributions from permanent fund dividends; and requiring the university to pay an application fee for each campus separately listed on the contribution list for contributions from permanent fund dividends." 9:32:11 AM REPRESENTATIVE PAUL SEATON, explained that legislation would allow greater participation by small non-profits. The current audit requirement was more onerous that what was required by the federal government, which required a certified public accountant (CPA) audit that the small non- profits did not receive. This bill eases the financial burden on these organizations and allows Alaskans a more complete choice of organizations by eliminating the financial audit requirement. This does not remove financial accountability. All Pick.Click.Give donation recipients must be 501(c)(3) tax-exempt organizations, which are required to file the form 990 annually with the IRS. Organizations are also required to have an audit if they expend $500,000 or more in federal awards. Entities that expend less than $500,000 in federal funds still must still make their records available for review by the federal government. This bill further requires each campus of University of Alaska to pay the $250 application fee to participate in the program, just as all other eligible organizations do. Co-Chair Kelly MOVED to ADOPT the committee substitute for SCS CS HB 75 (FIN), Work Draft 28-LS0323\Y (Mischel/Martin, 4/13/14). There being NO OBJECTION, it was so ordered. Co-Chair Meyer queried the changes in the CS. Representative Seaton replied that there were three technical changes. He stated that sub-Section A amended a notice provision on the Permanent Fund Dividend (PFD), to say that the 7 percent coordination fee would be deduction. He announced that sub-Section E removed the restriction that the money contributed through Pick.Click.Give could not be used for implementing the section. Vice-Chair Fairclough queried the page numbers of the changes. Representative Seaton deferred to this staff. HEATHER BEG, STAFF, REPRESENTATIVE PAUL SEATON, explained the changes in more detail. She looked at page 2, line 12, where "no money" was changed to "7 percent of the money." The second change was on page 4, lines 5 through 8, deleting the section that would restrict the department from implementing the new change. 9:37:31 AM JORDAN MARSHALL, STAFF, RASMUSSEN FOUNDATION, ANCHORAGE, spoke in support of the legislation. He offered to answer questions. Co-Chair Meyer asked to hear the prepared testimony. Mr. Marshall announced that the Pick.Click.Give program gave Alaskans a safe, secure, and simple way to make optional gifts from to Alaska non-profits. The program was in its sixth year and had seen over $10 million in designations made by Alaskans. He stated that $2.77 million was raised in 2014. There were many opportunities for statute enhancements to ensure that the program can continue to thrive. The committee substitute would make already discussed important enhancements. He pointed out that the sustainability filing fee portion was presented for consideration after having reached out to participating non-profits. Vice-Chair Fairclough wondered if there was an analysis of the non-profits that were shown in the advertisement, and whether those organizations saw a higher level of giving. Mr. Marshall responded that there was a concerted effort to highlight certain types of service offerings, for example aid and comfort for the homeless. He stated that there was a small uptick in support for those types of organizations after they were featured in the marketing campaign. He stressed that no specific organization was ever highlighted in the full statewide outreach marketing program. Vice-Chair Fairclough wanted to ensure that the marketing of the program was driven by issues. She wondered how the priorities would be shaped in the outreach. Mr. Marshall responded that so far, the state had no interest or influence over which items were highlighted. He agreed that there should be a rotation of the focus areas. Vice-Chair Fairclough understood that there were some efforts in ensuring that all issues were highlighted. Mr. Marshall agreed. He stressed that the program website had an enhanced outreach mechanism, so participating organizations could upload the most current information about their organization. 9:45:55 AM AT EASE 9:46:38 AM RECONVENED 9:47:00 AM Co-Chair Meyer noted the Senate Concurrent Resolution that will follow the bill. Co-Chair Kelly MOVED to REPORT SCS CSHB 75 (FIN) out of committee with individual recommendations and the accompanying fiscal notes. SCS CSHB 75 (FIN) was REPORTED out of committee with a "do pass" recommendation and with previously published indeterminate fiscal note: FN2(REV); and previously published fiscal impact note: FN3(UA). 9:47:46 AM AT EASE 9:51:31 AM RECONVENED