SENATE BILL NO. 78 "An Act creating the education endowment fund and the dividend lottery fund; authorizing contributions from the permanent fund dividend to the dividend lottery fund; relating to transfers from the dividend lottery fund and the education endowment fund; relating to the definition of 'gambling'; and providing for an effective date." 9:07:33 AM Co-Chair MacKinnon relayed that the committee had heard SB 78 twice and had opened and closed public testimony. At the most recent hearing the committee had discussed prioritization of voluntary contributions from an individual's dividend check. Vice-Chair Bishop MOVED to ADOPT Amendment 1, 30-LS0534\M.2 (Martin, 4/12/17) (copy on file): Page 1, line 4, following "fund;": Insert "relating to the duties of the Department of Revenue;" Page 2, following line 20: Insert a new bill section to read: "* Sec. 2. AS 43 .23 .055 is amended to read: Sec. 43.23.055. Duties of the department. The department shall (1) annually pay permanent fund dividends from the dividend fund; (2) subject to AS 43.23.011 and [PARAGRAPH] (8) of this section, adopt regulations under AS 44.62 (Administrative Procedure Act) that establish procedures and time limits for claiming a permanent fund dividend; the department shall determine the number of eligible applicants by October 1 of the year for which the dividend is declared and pay the dividends by December 31 of that year; (3) adopt regulations under AS 44.62 (Administrative Procedure Act) that establish procedures and time limits for an individual upon emancipation or upon reaching majority to apply for permanent fund dividends not received during minority because the parent, guardian, or other authorized representative did not apply on behalf of the individual; (4) assist residents of the state, particularly in rural areas, who because of language, disability, or inaccessibility to public transportation 1need assistance to establish eligibility and to apply for permanent fund dividends; (5) use a list of individuals ineligible for a dividend under AS 43.23.005(d) provided annually by the Department of Corrections and the Department of Public Safety to determine the number and identity of those individuals; (6) adopt regulations that are necessary to implement AS 43.23.005(d); (7) adopt regulations that establish procedures for the parent, guardian, or other authorized representative of a disabled individual to apply for prior year permanent fund dividends not received by the disabled individual because no application was submitted on behalf of the individual; (8) adopt regulations that establish procedures for an individual to apply to have a dividend disbursement under AS 37.25.050(a)(2) reissued if it is not collected within two years after the date of its issuance; however, the department may not establish a time limit within which an application to have a disbursement reissued must be filed; (9) provide any information, upon request, contained in permanent fund dividend records to the child support services agency created in AS 25.27.0 10, or the child support enforcement agency of another state, for child support purposes authorized under law; if the information is contained in an electronic data base, the department shall provide the requesting agency with either (A) access to the data base; or (B) a copy of the information in the data base and a statement certifying its contents; (10) establish a fraud investigation unit for the purpose of assisting the (A) Department of Law in the prosecution of individuals who apply for or obtain a permanent fund dividend in violation of a provision in AS 11, by detecting and investigating those crimes; and (B) commissioner to detect and investigate the claiming or paying of permanent fund dividends that should not have been claimed by or paid to an individual and to impose the penalties and enforcement provisions under AS 43.13.035 (11) adopt regulations under AS 44.62 (Administrative Procedure Act) so that contributions under AS 43.23.062 are given a priority over donations under AS 43.23.064 if the total amount of contributions and donations elected by an applicant exceeds the amount of the permanent fund dividend that the applicant is entitled to receive. Renumber the following bill sections accordingly." Co-Chair MacKinnon OBJECTED for discussion. 9:08:18 AM JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, discussed Amendment 1 (copy on file). She stated that the amendment had been drafted at the request of the sponsor. She relayed that while the amendment was lengthy, it only effectively did one thing. She referred to page 2, line 29, which indicated that the amendment would prioritize the existing Pick Click Give program under AS 43.23.062 over the new raffle program proposed in the bill and enacted under AS 43.23.064. She explained that if a person had promised more of their dividend in voluntary reductions than they would receive, then the Pick Click Give program donations would be paid first, and the raffle tickets would be prioritized second. Co-Chair MacKinnon recalled that under voluntary contributions, the University of Alaska Scholars Program was the first item prompted. The second prompt for voluntary contributions was Pick Click Give. The third prompt would ask if the applicant wanted to support public education by participating in a raffle with a chance to win. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO further OBJECTION, Amendment 1 was ADOPTED. Co-Chair MacKinnon announced there was an amended committee substitute before the committee. She invited comments on the bill. She read the title of the bill and invited Senator Bishop to leave the committee with some final comments on the bill. Vice-Chair Bishop spoke to the bill as the sponsor. He thought people in the state prioritized education, which he had observed through emails, phone calls, and text messages during the budget process. He thought the bill was another tool by which state residents could voluntarily contribute towards education. He believed the concept would be popular with Alaskans. He thanked the body for hearing the bill. Senator Hughes thanked the sponsor for bringing the bill forward and for his responsiveness to the comments made in the the Senate Education Committee pertaining to the use of the word "raffle" rather than the word "lottery." She thought clarification was needed because the word "raffle" involved a defined group of people and a defined limited amount of time. She thought it was no different from going to a local chamber meeting and participating in a bucket raffle. It would be for a limited group of people for a limited time. She thought it was important to distinguish "raffle" from "lottery". She was thankful that the bill sponsor was willing to make a language adjustment. Vice-Chair Bishop appreciated his colleague's suggestion about having a ranking order of voluntary contributions. He reiterated the order of options. He looked forward to seeing how the bill functioned. Co-Chair MacKinnon directed attention to fiscal note 2, dated March 31, 2017. The fiscal note reflected a cost for software upkeep. 9:13:31 AM AT EASE 9:14:44 AM RECONVENED Co-Chair MacKinnon asked for committee support to amend fiscal note 2 from the Department of Revenue, OMB component 121. She wanted to amend the funding source to 1005 Program Receipts. She explained there was a percentage charge for the administration of the program. The funding source would no longer be undesignated general funds. She asked if she had member support to change the funding source to 1005 Program Receipts. There was no objection. The amendment to fiscal note 2 was ADOPTED. Co-Chair MacKinnon continued to discuss fiscal note 2. The projection for services was $4,400 in FY 19, $8,800 in FY 20, $13,100 in FY 21, $17,500 FY 22, and $21,900 in FY 23. Whether the costs would be realized depended on the activity of the people of Alaska. Vice-Chair Bishop MOVED to report CSSB 78(FIN) out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 78(FIN) was REPORTED out of committee with a "do pass" recommendation and with and with a new fiscal impact note by the Senate Finance Committee for the Department of Revenue; one previously published zero fiscal note: FN1 (LAW); and one previously published fiscal impact note: FN3 (REV). 9:16:36 AM AT EASE 9:18:52 AM RECONVENED