SF3064

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