HF3093

Purpose of the Bill

The proposed legislation aims to establish responsible contractor requirements for recipients of state loans and grants in Minnesota. Specifically, this bill targets loans and grants of $50,000 or more and ensures that these recipients meet specific eligibility criteria to qualify for financial assistance.

Main Provisions

1. Responsible Contractor Requirements:

   • Recipients of state loans or grants that amount to $50,000 or more must certify under oath that they meet the minimum requirements set forth in section 16C.285, subdivision 3.
   • This certification must be submitted at the time of the loan application.

2. Risk Assessment for Grants:

   • Before awarding grants of $50,000 or more, state agencies must conduct a preaward risk assessment. This assessment evaluates whether the potential grantee can adequately perform the duties described in the grant.
   • The assessment involves reviewing the grantee's history of similar work, scale of operations, and any necessary organizational changes.

3. Financial and Operational Information:

   • Nonprofit organizations must provide recent IRS Form 990 or 990EZ, or approved financial statements if such forms are not required.
   • For-profit businesses must supply recent tax returns, current financial statements, bankruptcy-free certification, and disclose any asset liens.

4. Good Standing and Legal Compliance:

   • All applicants must show evidence of good standing with the Secretary of State.
   • A statement certifying that no current principal involved in the grant has been convicted of a felony financial crime in the past ten years is required.

Significant Changes to Existing Law

• The bill introduces a structured preaward risk assessment process for competitive grants over $50,000.
• It mandates additional financial documentation and certifications, which were not previously required in the existing statutes, thereby tightening the eligibility criteria for obtaining state financial assistance.

Relevant Terms

responsible contractor, state loans, state grants, financial assessment, nonprofit organizations, for-profit businesses, risk assessment, financial documentation, felony financial crime, state financial assistance.