HF 1284

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; providing for management of state grants by the
commissioner of finance; proposing coding for new law in Minnesota Statutes,
chapter 16A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16A.90] GRANTS MANAGEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner duties. new text end

new text begin The commissioner is responsible for
coordinating state executive agency management of grants. In performing this
responsibility, the commissioner must:
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new text begin (1) identify and communicate to executive agencies best practices regarding grant
management functions, including selection and monitoring of grantees, compliance
review, and financial oversight;
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new text begin (2) train executive agencies on implementing the best practices, including training
on how to:
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new text begin (i) review granteesa?? financial information;
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new text begin (ii) conduct financial reconciliation reviews; and
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new text begin (iii) review financial audits;
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new text begin (3) require executive agencies to follow the best practices the commissioner
identifies;
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new text begin (4) coordinate executive agency efforts to increase consistency and efficiency in
grant management;
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new text begin (5) establish a statewide electronic grants management system;
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new text begin (6) create standard documents that can be used as the basis for requests for proposals,
contracts, and report forms for executive agency grants;
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new text begin (7) identify and make recommendations to executive agencies on what information
agencies should request and review before awarding grants;
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new text begin (8) selectively audit executive agency grants to ensure funds are spent as intended;
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new text begin (9) selectively review development and implementation of executive agency grants,
policies, and practices;
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new text begin (10) selectively review executive agency compliance with best practices; and
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new text begin (11) work with nonprofit organizations to help them be prepared to receive and
manage state grants.
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new text begin For purposes of this section, "executive agency" includes constitutional officers but
does not include the Minnesota State Colleges and Universities.
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new text begin Subd. 2. new text end

new text begin Standard grant contract. new text end

new text begin The commissioner must develop a standard
grant contract containing terms that executive agencies must use in entering into contracts
with grantees. Executive agencies may use additional terms specific to each grant
contract. The standard contract must include clauses regarding ownership of equipment
and intellectual property, data privacy, audits, liability, workers' compensation insurance,
contract cancellation, and satisfactory performance as a condition of payment.
new text end

new text begin Subd. 3. new text end

new text begin Financial reconciliation of grant expenditures. new text end

new text begin An executive agency
issuing a grant of more than $50,000 must conduct a financial reconciliation of a sample
of expenditures for the grant at least once during the grant contract period.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $....... for the fiscal year ending June 30, 2008, and $....... for the fiscal year ending
June 30, 2009, are appropriated from the general fund to the commissioner of finance for
purposes of section 1. The commissioner of finance must reduce other executive agency
budgets to reflect grant management duties formerly performed by those agencies that the
commissioner of administration will now perform.
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Sec. 3. new text begin EFFECTIVE DATE.
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new text begin Sections 1 and 2 are effective July 1, 2007. The statewide electronic grants
management system required by section 1 must be in operation by July 1, 2009.
new text end