00                            HOUSE BILL NO. 244                                                                          
01 "An Act relating to the expenditure of state grant money by nonprofit corporations; and                                 
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 10.20 is amended by adding a new section to read:                                                  
05            Sec. 10.20.698. Expenditure of state grant money. (a) A corporation that                                   
06       receives money as a grant from the state shall spend                                                              
07                 (1)  at least 80 percent of the money on the persons and services for                                   
08       which the grant was made to the corporation; and                                                                  
09                 (2)  not more than 20 percent of the money on fundraising,                                              
10       administrative, and operational costs.                                                                            
11 (b)  A corporation that violates (a) of this section is subject to a penalty in an                                      
12 amount equal to 10 percent of the total amount of grant money the corporation                                           
13 received during the state fiscal year in which the violation occurred. The department                                   
14       administering the grant shall collect the penalty.                                                                

01            (c)  This section does not apply to a grant that is subject to federal                                       
02       requirements that conflict with this section.                                                                     
03    * Sec. 2. AS 23.15.820(a) is amended to read:                                                                      
04            (a)  The Alaska Workforce Investment Board shall                                                             
05                 (1)  administer the Alaska technical and vocational education program                                   
06       established in AS 23.15.820 - 23.15.850;                                                                          
07 (2)  facilitate the development of a statewide policy for a coordinated                                                 
08 and effective technical and vocational education training system in this state and, to                                  
09 the extent authorized by federal and state law, plan and coordinate federal, state, and                                 
10       local efforts in technical and vocational education programs;                                                     
11 (3)  adopt regulations under AS 44.62 (Administrative Procedure Act)                                                    
12 to carry out the purposes of AS 23.15.820 - 23.15.850, including regulations that set                                   
13 standards for the percentage of a grant that may be used for administrative costs; the                                  
14 regulations must clearly identify and distinguish between expenses that may be                                          
15 included in administrative costs and those that may not be included in administrative                                   
16 costs; notwithstanding AS 10.20.698, the percentage allowed for administrative costs                                
17 may not exceed the lesser of five percent or the amount permitted under the                                             
18       requirements of a federal program, if applicable;                                                                 
19 (4)  administer the grant program under AS 23.15.840 and establish                                                      
20 grant administration requirements including accounting procedures that apply to                                         
21       qualified entities and their grantees;                                                                            
22 (5)  facilitate the development and implementation of a statewide                                                       
23 policy and procedure that provides for the acceptance of credit or hours toward a                                       
24 degree or technical program offered by a vocational or technical training center in the                                 
25 state for an applicant who provides satisfactory evidence of successful completion of                                   
26 relevant military education, training, or service as a member of the armed forces of the                                
27 United States, the United States Reserves, the National Guard of any state, the                                         
28       Military Reserves of any state, or the Naval Militia of any state.                                                
29    * Sec. 3. AS 23.15.840(e) is amended to read:                                                                      
30 (e)  Notwithstanding AS 10.20.698, in [IN] making a grant under this section,                                       
31 the board shall require that the qualified entity and grantees of the qualified entity                                  

01 limit the amount of the grant proceeds spent on administration so that the total spent                                  
02 on administration from the proceeds of the technical and vocational education program                                   
03 account, including amounts spent by the board itself, does not exceed five percent. A                                   
04       training program funded by the board must                                                                         
05 (1)  meet the standards adopted by the board concerning the percentage                                                  
06       of a grant that may be spent on administrative costs;                                                             
07 (2)  be operated by an institution that holds a valid authorization to                                                  
08 operate issued under AS 14.48 if the program is a postsecondary educational program                                     
09 operated by a postsecondary educational institution subject to regulation under                                         
10       AS 14.48.                                                                                                         
11    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
12 read:                                                                                                                   
13       APPLICABILITY. (a) This Act applies to grants from the state that are made on or                                  
14 after the effective date of this Act.                                                                                   
15       (b)  The amount of the penalty in sec. 1 of this Act is based on the grant money that a                           
16 nonprofit corporation organized under AS 10.20 receives from a grant made on or after the                               
17 effective date of this Act and that is received during                                                                  
18            (1)  that part of a state fiscal year that begins on or after the effective date of                          
19 this Act; or                                                                                                            
20            (2)  a state fiscal year that begins on or after the effective date of this Act.                             
21    * Sec. 5. This Act takes effect July 1, 2021.