1.1 A bill for an act 1.2 relating to legacy; prohibiting payment of certain indirect costs from legacy funds; 1.3 amending Minnesota Statutes 2024, sections 16A.127, subdivision 8; 85.53, by 1.4 adding a subdivision; 97A.056, by adding a subdivision; 114D.50, by adding a 1.5 subdivision; 129D.17, by adding a subdivision. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 2024, section 16A.127, subdivision 8, is amended to read: 1.8 Subd. 8.Exemptions.(a) No statewide or agency indirect cost liability shall be accrued 1.9to any program, appropriation, or account that is specifically exempted from the liability in 1.10federal or state law, or if the commissioner determines the funds to be held in trust, or to 1.11be a pass-through, workshop, or seminar account. Accounts receiving proceeds from bond 1.12issues and general fund accounts are also exempt from this section. 1.13 (b) Except for the costs of the legislative auditor to conduct financial audits of federal 1.14funds, this section does not apply to the Board of Trustees of the Minnesota State Colleges 1.15and Universities. Receipts attributable to financial audits conducted by the legislative auditor 1.16of federal funds administered by the board shall be deposited in the general fund. 1.17 (c) The commissioner must not use this section to obtain money appropriated from the 1.18outdoor heritage, clean water, parks and trails, or arts and cultural heritage fund to pay for 1.19statewide or agency indirect costs. 1Section 1. REVISOR CKM/BM 25-0091612/04/24 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 529 NINETY-FOURTH SESSION Authored by Bliss02/13/2025 The bill was read for the first time and referred to the Committee on Legacy Finance 2.1 Sec. 2. Minnesota Statutes 2024, section 85.53, is amended by adding a subdivision to 2.2read: 2.3 Subd. 8.Overhead costs.Notwithstanding any law, policy, or guidance to the contrary, 2.4a recipient of money from the parks and trails fund must not use the money to pay for rent, 2.5lease payments, insurance, utilities, custodial services, building maintenance, or another 2.6overhead cost unless the recipient has documented the amount that specific overhead costs 2.7increased as a direct and necessary result of the recipient's responsibility to administer a 2.8program, project, or activity paid for with money from the parks and trails fund. The amount 2.9of money from the fund the recipient may use to pay for that specific overhead cost must 2.10not exceed the amount the recipient documented as the increase in the cost. 2.11 Sec. 3. Minnesota Statutes 2024, section 97A.056, is amended by adding a subdivision to 2.12read: 2.13 Subd. 25.Overhead costs.Notwithstanding any law, policy, or guidance to the contrary, 2.14a recipient of money from the outdoor heritage fund must not use the money to pay for rent, 2.15lease payments, insurance, utilities, custodial services, building maintenance, or another 2.16overhead cost unless the recipient has documented the amount that specific overhead costs 2.17increased as a direct and necessary result of the recipient's responsibility to administer a 2.18program, project, or activity paid for with money from the outdoor heritage fund. The amount 2.19of money from the fund the recipient may use to pay for that specific overhead cost must 2.20not exceed the amount the recipient documented as the increase in the cost. 2.21 Sec. 4. Minnesota Statutes 2024, section 114D.50, is amended by adding a subdivision to 2.22read: 2.23 Subd. 8.Overhead costs.Notwithstanding any law, policy, or guidance to the contrary, 2.24a recipient of money from the clean water fund must not use the money to pay for rent, lease 2.25payments, insurance, utilities, custodial services, building maintenance, or another overhead 2.26cost unless the recipient has documented the amount that specific overhead costs increased 2.27as a direct and necessary result of the recipient's responsibility to administer a program, 2.28project, or activity paid for with money from the clean water fund. The amount of money 2.29from the fund the recipient may use to pay for that specific overhead cost must not exceed 2.30the amount the recipient documented as the increase in the cost. 2Sec. 4. REVISOR CKM/BM 25-0091612/04/24 3.1 Sec. 5. Minnesota Statutes 2024, section 129D.17, is amended by adding a subdivision to 3.2read: 3.3 Subd. 7.Overhead costs.Notwithstanding any law, policy, or guidance to the contrary, 3.4a recipient of money from the arts and cultural heritage fund must not use the money to pay 3.5for rent, lease payments, insurance, utilities, custodial services, building maintenance, or 3.6another overhead cost unless the recipient has documented the amount that specific overhead 3.7costs increased as a direct and necessary result of the recipient's responsibility to administer 3.8a program, project, or activity paid for with money from the arts and cultural heritage fund. 3.9The amount of money from the fund the recipient may use to pay for that specific overhead 3.10cost must not exceed the amount the recipient documented as the increase in the cost. 3Sec. 5. REVISOR CKM/BM 25-0091612/04/24