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SF3475 (Legislative Session 94 (2025-2026))

Responsible contractor requirements application authorization to recipients of state loans and grants over $50,000

Related bill: HF3093

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to establish responsible contractor requirements for recipients of state loans and grants that are $50,000 or more. It aims to ensure that applicants for substantial state-funded loans and grants meet specified financial and performance standards, enhancing accountability and reducing risks associated with state funding.

Main Provisions

  • Minimum Requirements for Loans: Applicants for state loans of $50,000 or more must submit a signed statement under oath certifying they meet the minimum standards defined in section 16C.285, subdivision 3. This is required at the time of application.
  • Pre-Award Risk Assessment for Grants: Before awarding a grant of $50,000 or more, agencies must conduct a risk assessment of potential grantees to evaluate their capability and financial health. Key factors include:
    • History of similar performance
    • Financial stability, shown through tax returns, financial statements, and, where applicable, nonprofit documentation like Form 990
    • Evidence of good standing with relevant authorities
    • Certification that applicant meets minimum requirements
    • Assurance that none of the principals have been convicted of felony financial crimes in the past ten years

Significant Changes to Existing Law

  • The bill mandates a comprehensive process to assess the financial and operational capability of applicants for both loans and grants, introducing a greater rigor than required previously.
  • It incorporates new requirements such as a sworn certification of meeting specific minimum requirement standards, and detailed financial scrutiny via documents like tax returns and internal financial controls.

Relevant Terms

  • Responsible contractor requirements
  • State loans and grants
  • Financial risk assessment
  • Applicant certification
  • Loan and grant application process

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 30, 2025SenateFloorActionIntroduction and first reading
April 30, 2025SenateFloorActionIntroduction and first reading
April 30, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Addition of financial certification requirements and evidence of good standing."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation modifies the financial information required for determining the ability to perform under section 16B.981.",
      "modified": [
        "Updates to pre-award risk assessment procedures."
      ]
    },
    "citation": "16B.981",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of independent audit report requirements for compliance."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references audit requirements under section 309.53.",
      "modified": [
        ""
      ]
    },
    "citation": "309.53",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Certification requirements for meeting minimum standards."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the requirement standards under section 16C.285.",
      "modified": [
        ""
      ]
    },
    "citation": "16C.285",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Requirement to provide evidence of good standing with the secretary of state."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references good standing evidence requirements under chapter 317A.",
      "modified": [
        ""
      ]
    },
    "citation": "317A",
    "subdivision": ""
  }
]

Sponsors