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SF3064 (Legislative Session 94 (2025-2026))

Statutory authority elimination for state agencies to retain grant amounts for administrative costs

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to eliminate the existing statutory authority that allows Minnesota state agencies to retain a portion of grant funds for administrative costs.

Main Provisions

  • The bill repeals the provision in Minnesota Statutes Section 16B.98, subdivision 14, which permitted state agencies to hold back certain percentages of grant funds allocated by the legislature for administrative expenses.
  • Previously, under this statute, state agencies could retain up to 5% of the funds for general grant programs and up to 10% for competitively awarded grants to cover administrative costs.

Significant Changes to Existing Law

  • By repealing the specific subdivision, state agencies would no longer be able to allocate any portion of grant funds towards administrative costs unless otherwise specified by a separate appropriation.
  • This change affects all new grant programs enacted from July 1, 2023, onwards.
  • The previous statute did not apply to grants funded through state general obligation bonds, and this repeal continues to leave bond-funded grants unaffected.

Relevant Terms

  • State agencies
  • Administrative costs
  • Grant funds
  • Appropriation
  • Competitively awarded grants
  • Statutory authority

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 26, 2025SenateFloorActionIntroduction and first reading
March 26, 2025SenateFloorActionReferred toFinance

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [
        "The ability of state agencies to retain up to five percent for new grants and ten percent for competitively awarded grants."
      ],
      "summary": "This bill repeals the statutory authority for state agencies to retain grant amounts for administrative costs under section 16B.98, subdivision 14.",
      "modified": []
    },
    "citation": "16B.98",
    "subdivision": "subdivision 14"
  }
]

Sponsors