HF 2786

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2025 11:32 a.m.

A bill for an act
relating to education; modifying requirements for grants from the Department of
Education; proposing coding for new law in Minnesota Statutes, chapter 127A.

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

Section 1.

new text begin [127A.205] EDUCATION GRANT TERMINATION.
new text end

new text begin (a) The commissioner of education must not enter into a grant agreement, or must
terminate a grant agreement, if any of the following conditions apply:
new text end

new text begin (1) the recipient is a nonprofit organization that is required to file a Form 990 or Form
990-EZ with the Internal Revenue Service, but has failed to do so. If the organization has
not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the
organization must provide the department its most recent financial statements or an audit
approved within the previous 12 months;
new text end

new text begin (2) the recipient is required to file a report under section 309.53 and has not filed the
report;
new text end

new text begin (3) the recipient fails to file an annual renewal and is administratively dissolved by the
secretary of state;
new text end

new text begin (4) the recipient fails to maintain tax-exempt status under state or federal law;
new text end

new text begin (5) the recipient's administrative costs exceed 25 percent of its revenue;
new text end

new text begin (6) the salary and value of all other forms of compensation of an employee of the recipient
exceeds 110 percent of the compensation of the governor as established under section
15A.082; or
new text end

new text begin (7) the commissioner knows, or has reason to know, that the recipient is the subject of
an investigation or allegation of fraud, waste, or abuse, as defined in section 127A.21.
new text end

new text begin (b) This section does not apply to a grant to a political subdivision, including a school
district, a cooperative unit under section 123A.24, subdivision 2, or a charter school.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end