AK HB244

Adds requirement that nonprofit corporations receiving state grants must spend at least 80 percent on persons and services for which the grant was made, and no more than 20 percent on fundraising, administrative, and operational costs.

Imposes a penalty equal to 10 percent of total grant money received during the fiscal year for corporations that violate the spending requirements; the administering department collects the penalty.

Exempts grants subject to conflicting federal requirements from the 80/20 spending rule.

Carves out technical and vocational education program grants, which must instead limit administrative costs to the lesser of 5 percent or the federal program limit, notwithstanding the general 80/20 rule.

Takes effect July 1, 2021, and applies only to grants made on or after the effective date.