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28th Legislature(2013-2014)

Bill Text 28th Legislature


00 Enrolled HB 75                                                                                                          
01 Amending certain audit requirements for entities receiving contributions from permanent fund                            
02 dividends; requiring the three main campuses of the University of Alaska to apply to be                                 
03 included on the contribution list for contributions from permanent fund dividends; relating to                          
04 notice provided on the electronic dividend application form; relating to administrative costs                           
05 for administering the program of contributions from permanent fund dividends; relating to a                             
06 coordination fee for entities that receive contributions from permanent fund dividends; and                             
07 requiring the university to pay an application fee for each campus separately listed on the                             
08 contribution list for contributions from permanent fund dividends.                                                      
09                           _______________                                                                               
10    * Section 1. AS 43.23.062(a) is amended to read:                                                                   
11            (a)  Notwithstanding AS 43.23.069, the Department of Revenue shall prepare                                   
01       the electronic Alaska permanent fund dividend application to allow an applicant who                               
02       files electronically to direct that money be subtracted from the dividend payment and                             
03       contributed to one or more of the educational organizations, community foundations,                               
04       or charitable organizations that appear on the contribution list contained in the                                 
05       application. A contribution to an organization may be $25, $50, $75, $100, or more, in                            
06       increments of $50, up to the total amount of the permanent fund dividend that the                                 
07       applicant is entitled to receive. If the total amount of contributions elected by an                              
08       applicant exceeds the amount of the permanent fund dividend that the applicant is                                 
09       entitled to receive, contributions shall be deducted from the dividend in the order of                            
10       priority elected by the applicant on the application until the entire amount of the                               
11       dividend that the applicant is entitled to receive is allocated for contribution. The                             
12       electronic dividend application form must include notice that seven percent of the                            
13       [NO] money contributed will be used for administrative costs incurred in                                          
14       implementing this section, and money from the dividend fund will not be used for that                             
15       purpose.                                                                                                          
16    * Sec. 2. AS 43.23.062(b) is amended to read:                                                                      
17            (b)  The department shall list each [CAMPUS OF THE UNIVERSITY OF                                             
18       ALASKA AND SHALL LIST EACH OTHER] educational organization, community                                             
19       foundation, or charitable organization eligible under (c) and (d) of this section and                         
20       each university campus that applies under (m) of this section on the contribution                             
21       list. The department shall maintain an electronic database for the contribution list that                         
22       is accessible to the public and that permits searches by organization name, geographic                            
23       location, and type. The department shall provide a statement of the contributions made                            
24       by an individual that is suitable for federal income tax purposes to each individual                              
25       who elects to contribute under (a) of this section.                                                               
26    * Sec. 3. AS 43.23.062(d) is amended to read:                                                                      
27            (d)  Except for each campus of the University of Alaska, the department may                                  
28       include an educational organization, community foundation, or charitable organization                             
29       on the contribution list for a current dividend year only if the organization                                     
30                 (1)  before March 31 of the qualifying year, files an application for                                   
31       inclusion on the list for that dividend year on the form required by the department;                              
01                 (2)  is exempt from taxation under 26 U.S.C. 501(c)(3) (Internal                                        
02       Revenue Code) as an educational or a charitable organization on the date of                                       
03       application;                                                                                                      
04                 (3)  was qualified for tax exempt status under 26 U.S.C. 501(c)(3)                                      
05       (Internal Revenue Code) as an educational or a charitable organization during the two                             
06       calendar years that immediately precede the year the application is filed;                                        
07                 (4)  unless exempted under federal law, has a current Internal Revenue                                  
08       Service Form 990 on file with the United States Department of the Treasury, Internal                              
09       Revenue Service, or, if the Internal Revenue Service has granted a filing extension for                           
10       the current year, has on file that form for the immediately preceding year;                                       
11                 (5)  is directed by a voluntary board of directors or local advisory                                    
12       board, a majority of whose members are residents of the state;                                                    
13                 (6)  if a community foundation, provided in the state aid during the two                                
14       calendar years that immediately precede the year the application is filed, or, if an                              
15       education organization or charitable organization, provided in the state services during                          
16       the two calendar years that immediately precede the year the application is filed;                                
17                 (7)  receives at least $100,000 or five percent of its total annual                                     
18       receipts, whichever is less, from contributions;                                                                  
19                 (8)  has completed and provided to the department a financial audit                                     
20       with an unqualified opinion conducted by an independent certified public accountant                               
21       for the fiscal year to which the Internal Revenue Service Form 990 required under (4)                             
22       of this subsection applies [, OR IF THE ORGANIZATION IS EXEMPTED FROM                                             
23       FILING FORM 990, FOR THE FISCAL YEAR OF THE ORGANIZATION THAT                                                     
24       ENDED IMMEDIATELY BEFORE THE CURRENT FISCAL YEAR]; this                                                           
25       paragraph applies only to an organization that is required by the federal                                     
26       government to complete a financial audit by an independent certified public                                   
27       accountant [WITH A TOTAL ANNUAL BUDGET THAT EXCEEDS $250,000                                                  
28       DURING THE FISCAL YEAR TO WHICH THE AUDIT REQUIRED UNDER                                                          
29       THIS PARAGRAPH APPLIES]; and                                                                                      
30                 (9)  does not make grants or contributions to an organization that is                                   
31       exempt from taxation under 26 U.S.C. 501(c)(4) or (6).                                                            
01    * Sec. 4. AS 43.23.062(e) is amended to read:                                                                      
02            (e)  Unless an appropriation specifically directs that the money be used for                                 
03       costs incurred in implementing this section, the department may not use money from                                
04       the dividend fund for administrative costs incurred in implementing this section, even                            
05       if it has been appropriated for costs of administering the dividend program. [THE                                 
06       DEPARTMENT MAY NOT USE MONEY CONTRIBUTED UNDER (a) OF THIS                                                        
07       SECTION FOR ADMINISTRATIVE COSTS INCURRED IN IMPLEMENTING                                                         
08       THIS SECTION.] Contributions shall be distributed to each organization as soon as                                 
09       practicable.                                                                                                      
10    * Sec. 5. AS 43.23.062(f) is amended to read:                                                                      
11            (f)  The department shall charge an application fee of $250 for each                                         
12       educational organization, community foundation, or charitable organization that files                             
13       an application under (d) of this section or for each university campus that files an                          
14       application under (m) of this section. The application fees shall be separately                               
15       accounted for under AS 37.05.142. The annual estimated balance in the account                                     
16       maintained under AS 37.05.142 for application fees collected under this subsection                                
17       may be appropriated for costs of administering this section.                                                      
18    * Sec. 6. AS 43.23.062 is amended by adding new subsections to read:                                               
19            (m)  The University of Alaska shall apply separately for each of the three main                              
20       campuses to be listed on the contribution list for the current dividend year in the                               
21       manner prescribed by the department. The University of Alaska may apply for each                                  
22       campus other than the three main campuses to be listed on the contribution list for the                           
23       current dividend year in the manner prescribed by the department.                                                 
24            (n)  In addition to the application fee in (f) of this section, the department shall                         
25       withhold a coordination fee from each organization, foundation, or university campus                              
26       that receives contributions under this section in the immediately preceding dividend                              
27       year. The coordination fee for an organization, foundation, or university campus that                             
28       receives contributions under this section shall be seven percent of the amount of                                 
29       contributions reported by the department under (j) of this section for the organization,                          
30       foundation, or university campus for the immediately preceding dividend year. The                                 
31       coordination fee shall be separately accounted for under AS 37.05.142 and shall be                                
01       accounted for separately from the application fee collected under (f) of this section.                            
02       The annual estimated balance in the account maintained under AS 37.05.142 for                                     
03       coordination fees collected under this subsection may be appropriated for costs of                                
04       administering this section.                                                                                       
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