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.