Minnesota Legislature
HF 1745
as introduced - 93rd Legislature (2023 - 2024) Posted on 04/18/2024 08:06pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 02/14/2023 |
Current Version - as introduced
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A bill for an act
relating to state government; establishing the position of director of grants
management and oversight within the Department of Administration; requiring
standards related to grantmaking and grants management practices; requiring
reports; amending Minnesota Statutes 2022, sections 16B.97, subdivisions 2, 3,
4, 5; 16B.98, subdivisions 4, 5, 6, 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 16B.97, subdivision 2, is amended to read:
Subd. 2.
Grants governance.
new text begin The commissioner must appoint a director of grants
management and oversight. At a minimum, the director must have demonstrated professional
experience in auditing and legal compliance related to grantmaking within a large, complex
organization. new text end The deleted text begin commissionerdeleted text end new text begin directornew text end shall deleted text begin provide leadership and direction fordeleted text end new text begin oversee
the implementation of law andnew text end policy related to grants management in Minnesota deleted text begin in orderdeleted text end new text begin .
The director's responsibilities arenew text end tonew text begin : (1)new text end foster more consistent, streamlined interaction
between executive agencies, funders, and grantees that will enhance access to grant
opportunities and informationnew text begin ; (2) ensure compliance with laws relating to grantmaking
and the grants management process;new text end and deleted text begin lead to greater program accountability and
transparencydeleted text end new text begin (3) be a resource in ensuring public accountability and transparency in grant
programs administered by executive agenciesnew text end . The deleted text begin commissionerdeleted text end new text begin directornew text end has the duties
and powers stated in this sectionnew text begin and section 16B.98new text end . An executive agency must do what
the deleted text begin commissionerdeleted text end new text begin directornew text end requires under this section.
Sec. 2.
Minnesota Statutes 2022, section 16B.97, subdivision 3, is amended to read:
Subd. 3.
Discretionary powers.
The deleted text begin commissionerdeleted text end new text begin directornew text end has the authority to:
(1) review grants management practices and propose policy and procedure improvements
to the governor, legislature, executive agencies, and the federal government;
(2) sponsor, support, and facilitate innovative and collaborative grants management
projects with public and private organizations;
(3) review, recommend, and implement alternative strategies for grants management;
(4) collect and disseminate information, issue reports relating to grants management,
and sponsor and conduct conferences and studies; and
(5) participate in conferences and other appropriate activities related to grants
management issues.
Sec. 3.
Minnesota Statutes 2022, section 16B.97, subdivision 4, is amended to read:
Subd. 4.
Duties.
(a) The deleted text begin commissionerdeleted text end new text begin directornew text end shall:
(1) create general grants management policies and procedures that are applicable to all
executive agencies. The deleted text begin commissionerdeleted text end new text begin directornew text end may approve exceptions to these policies
and procedures for particular grant programs. Exceptions shall expire or be renewed after
five years. Executive agencies shall retain management of individual grants programsnew text begin ,
provided that the director determines the executive agency is compliant with the requirements
of law related to grantmaking and grants management in administering its programsnew text end ;
(2) provide a central point of contact concerning statewide grants management policies
deleted text begin anddeleted text end new text begin ,new text end proceduresnew text begin , and requirements of lawnew text end ;
(3) serve as a resource to executive agencies in such areas as training, evaluation,
collaboration, and best practices in grants management;
(4) ensure grants management needs are considered in the development, upgrade, and
use of statewide administrative systems and leverage existing technology wherever possible;
(5) oversee and approve future professional and technical service contracts and other
information technology spending related to executive agency grants management activitiesnew text begin ,
including verifying, in consultation with the legislative auditor, that information technology
systems used by executive branch agencies in administering grant programs meet the
requirements of this section and section 16B.98new text end ;
(6) provide a central point of contact for comments about executive agencies violating
statewide grants governance policies and about fraud and waste in grants processes;
(7) forward received comments to the deleted text begin appropriate agencydeleted text end new text begin legislative auditornew text end for further
action, and may follow up as necessary;
(8) provide a single listing of all available executive agency competitive grant
opportunities and resulting grant recipients;
(9) deleted text begin selectivelydeleted text end review development and implementation of executive agency grants,
policies, and practices; deleted text begin and
deleted text end
(10) deleted text begin selectivelydeleted text end review executive agency compliance with best practicesdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(11) in consultation with the legislative auditor, review executive agency compliance
with the requirements of law related to grantmaking and grants management;
new text end
new text begin
(12) review and approve or disapprove a grantee's request for waivers, deadline
extensions, or other variances from the terms of a written grant agreement; and
new text end
new text begin
(13) in consultation with the legislative auditor, provide a standardized form that granting
agencies may use to submit oversight reports to the governor and legislature regarding grant
activities, including details related to the number of grants awarded by the agency, how
each grant is being used, appropriate statistics demonstrating how the use of the grant
benefits the public, and specific details on the use of any funds retained by the granting
agency for costs associated with administering the grant.
new text end
(b) new text begin No later than July 1, 2024, new text end the deleted text begin commissioner maydeleted text end new text begin director mustnew text end determine deleted text begin thatdeleted text end new text begin
whethernew text end it is cost-effective for agencies to develop and use shared grants management
technology systems. This system would be governed under section 16E.01, subdivision 3,
paragraph (b).new text begin If the director determines that a shared grants management technology system
would not be cost-effective, the director must propose an alternative enterprise-wide reporting
system for grants management that allows for public accountability, transparency, and
information sharing across all agencies. To the extent practical, the director must work with
the commissioner of management and budget to build appropriate grants management
functionality into any new statewide accounting system developed for use by agencies.
new text end
Sec. 4.
Minnesota Statutes 2022, section 16B.97, subdivision 5, is amended to read:
Subd. 5.
Data classification.
Data maintained by the deleted text begin commissionerdeleted text end new text begin directornew text end that identify
a person providing comments to the commissioner under subdivision 4, paragraph (a),
clauses (6) and (7), are private and nonpublic data but may be shared with the executive
agency that is the subject of the comments.
Sec. 5.
Minnesota Statutes 2022, section 16B.98, subdivision 4, is amended to read:
Subd. 4.
Reporting of violations.
A state employee who discovers evidence of violation
of laws or rules governing grants deleted text begin is encouraged todeleted text end new text begin mustnew text end report the violation or suspected
violation to the employee's supervisor, the deleted text begin commissioner or the commissioner's designeedeleted text end new text begin
director of grants management and oversightnew text end , or the legislative auditor. The legislative
auditor shall report to the Legislative Audit Commission if there are multiple complaints
about the same agency. The auditor's report to the Legislative Audit Commission under this
section must disclose only the number and type of violations alleged. An employee making
a good faith report under this section has the protections provided for under section 181.932,
prohibiting the employer from discriminating against the employee.
Sec. 6.
Minnesota Statutes 2022, section 16B.98, subdivision 5, is amended to read:
Subd. 5.
Creation and validity of grant agreements.
(a) A grant agreement is not valid
and the state is not bound by the grant unless:
(1) the grant has been executed by the head of the agency or a delegate who is party to
the grant;
(2) the accounting system shows an encumbrance for the amount of the grant in
accordance with policy approved by the commissioner except as provided in subdivision
11; and
(3) the grant agreement includes an effective date that references either section 16C.05,
subdivision 2, or 16B.98, subdivisions 5 and 7, as determined by the granting agency.
(b) The combined grant agreement and amendments must not exceed five years without
specific, written approval by the commissioner according to established policy, procedures,
and standards, or unless the commissioner determines that a longer duration is in the best
interest of the state.
(c) A fully executed copy of the grant agreement with all amendments and other required
records relating to the grant must be kept on file at the granting agency for a time equal to
that required of grantees in subdivision 8.
(d) Grant agreements must comply with policies established by the deleted text begin commissionerdeleted text end new text begin director
of grants management and oversightnew text end for minimum grant agreement standards and practices.
(e) The attorney general deleted text begin maydeleted text end new text begin mustnew text end periodically review and evaluate a sample of state
agency grants to ensure compliance with applicable laws.
Sec. 7.
Minnesota Statutes 2022, section 16B.98, subdivision 6, is amended to read:
Subd. 6.
Grant administration.
A granting agency shall diligently administer and
monitor any grant it has entered into.new text begin At a minimum, a granting agency must:
new text end
new text begin
(1) administer a grant utilizing a grants management technology system approved by
the director of grants management and oversight;
new text end
new text begin
(2) require each grantee to identify all grants the grantee has received or applied to
receive from an executive agency;
new text end
new text begin
(3) independently determine whether the grantee has previously received grants or
entered contracts with a state agency, record that information in the grants management
technology system, and review any outcomes reported by a state agency related to a grantee's
performance under a prior grant or contract;
new text end
new text begin
(4) identify a program manager for each grant and identify the program manager in the
grants management technology system;
new text end
new text begin
(5) collect appropriate documentation, as determined by the director of grants management
and oversight, sufficient to verify that providing a grant to a proposed grantee is reasonable
and appropriate given the grantee's level of financial health and sophistication, including
at a minimum, an audit report or IRS form 990, and the proposed grantee's balance sheets
from the most recent fiscal year or, if the proposed grant has a value of $500,000 or more,
the proposed grantee's balance sheets covering the most recent five fiscal years, and record
that information in the grants management technology system;
new text end
new text begin
(6) conduct either an unannounced or scheduled in-person meeting with a grantee, at
the grantee's offices or worksite, to verify that the grant is being used for its intended
purposes;
new text end
new text begin
(7) submit to the director of grants management and oversight for approval any request
made by a grantee for a waiver, deadline extension, or other variance from the terms of a
written grant agreement;
new text end
new text begin
(8) ensure that the job description of any employee of an agency with responsibilities
related to grantmaking or grants management includes those duties, that the employee is
properly and regularly trained on these duties, and that these duties are incorporated in the
annual review of the employee's job performance, and where appropriate, remedial action
is taken in the event an employee fails to adequately fulfill the duties;
new text end
new text begin
(9) subject to review and approval by the director of grants management and oversight,
in consultation with the legislative auditor, establish internal controls for conducting ongoing
oversight of grants administered by the agency, along with policies and procedures for
remedial action when these controls are not followed; and
new text end
new text begin
(10) using the standardized form established by the director of grants management and
oversight, submit an annual report to the governor and the legislative committees with
jurisdiction over the agency's budget detailing the agency's grant activity in the prior year.
new text end
Sec. 8.
Minnesota Statutes 2022, section 16B.98, subdivision 7, is amended to read:
Subd. 7.
Grant payments.
new text begin (a) new text end Payments to the grantee may not be issued until the grant
agreement is fully executed. Encumbrances for grants issued by June 30 may be certified
for a period of one year beyond the year in which the funds were originally appropriated as
provided by section 16A.28, subdivision 6.
new text begin
(b) An executive agency must withhold payments on a grant if a grantee has not submitted
each required progress report, financial reconciliation, or other report required by the terms
of the grant agreement, or if the executive agency determines that the grantee no longer
qualifies to receive the grant.
new text end
new text begin
(c) An executive agency must not make final payment on a grant until it has received
all annual financial reconciliations required by the terms of the grant agreement, in addition
to a comprehensive reconciliation of all expenses, reimbursements, and other uses of the
grant funds that demonstrate to the granting agency that the grantee is prepared to receive
a final grant payment on the grant.
new text end
Sec. 9. new text begin DIRECTOR OF GRANTS MANAGEMENT AND OVERSIGHT;
TRANSITION.
new text end
new text begin
The commissioner must appoint a director of grants management and oversight as
required by this act no later than October 1, 2023. The commissioner must engage with the
public and private sector to recruit highly qualified applicants and make a final appointment
through an open and competitive process. The appointed director's responsibilities must
include the work and mission of the existing Office of Grants Management, in addition to
the new duties prescribed by this act.
new text end