Purpose of the Bill

This bill aims to update the management and oversight of state-issued grants in Minnesota. It seeks to enhance the transparency, accountability, and efficiency of grants by amending several sections of Minnesota Statutes 2024.

Main Provisions

• Definition and Scope: Clarifies what constitutes a grant agreement and specifies its application. A grant agreement is defined as a legal relationship focused on transferring resources to support public purposes instead of acquiring services for governmental use.
• Administrative Cost Limitation: Requires recipients of state grants to keep administrative costs necessary and reasonable. Granting agencies must negotiate limits on these costs to maximize the state's benefit from the funds.
• Mandatory Reporting of Violations: Obligates state employees to report any evidence of legal or rule violations related to grants. Reporting will be protected under the state's whistleblower protection laws.
• Grant Award Decisions: Provides agencies with a structured process to delay or deny grants if there are concerns about a grantee's ability to fulfill grant obligations. It includes a set period for grantees to contest decisions.
• Unilateral Termination: Grants the commissioner the authority to terminate grant agreements if continuing them would not serve agency purposes or benefit the state.

Significant Changes to Existing Law

• Changes from encouraging to requiring state employees to report violations related to grants, thus enhancing accountability.
• Adjusts the time frame for grantees to respond to agency concerns from 30 business days to 15 calendar days.
• Introduces procedures for contested case proceedings if an agency decides not to award a grant, ensuring transparency and due process.

Relevant Terms

state grants, grants management, administrative costs, legal relationship, state funds, grant violations, whistleblower protection, grant agreement termination, contested case.