HF 1826

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 12:32pm

A bill for an act
relating to state government; contracts; grant management; amending Minnesota
Statutes 2014, sections 16B.97, subdivision 1; 16B.98, subdivisions 1, 11.

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

Section 1.

Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:

Subdivision 1.

Grant agreement.

(a) A grant agreement is a written instrument or
electronic document defining a legal relationship between a granting agency and a grantee
when the principal purpose of the relationship is to transfer cash or something of value
to the recipient to support a public purpose authorized by law instead of acquiring by
professional or technical contract, purchase, lease, or barter property or services for the
direct benefit or use of the granting agency.

(b) This section does not apply to new text begin general obligation grants as defined by section
16A.695 and new text end capital project grants to political subdivisions as defined by section 16A.86.

Sec. 2.

Minnesota Statutes 2014, section 16B.98, subdivision 1, is amended to read:

Subdivision 1.

Limitation.

new text begin (a) new text end As a condition of receiving a grant from
an appropriation of state funds, the recipient of the grant must agree to minimize
administrative costs. The granting agency is responsible for negotiating appropriate limits
to these costs so that the state derives the optimum benefit for grant funding.

new text begin (b) This section does not apply to general obligation grants as defined by section
16A.695 and also capital project grants to political subdivisions as defined by section
16A.86.
new text end

Sec. 3.

Minnesota Statutes 2014, section 16B.98, subdivision 11, is amended to read:

Subd. 11.

Encumbrance exception.

Notwithstanding subdivision 5, paragraph (a),
clause (2), or section 16C.05, subdivision 2, paragraph (a), clause (3), agencies may
permit a specifically named, legislatively appropriated, noncompetitive grant recipient to
incur eligible expenses based on an agreed upon work plan and budget for up to 60 days
prior to an encumbrance being established in the accounting system. deleted text begin For a grant funded
in whole or in part with state general obligation bond proceeds, an agency may permit
incurring of expenses under this subdivision only with prior approval of the commissioner
of management and budget.
deleted text end