SF 3340

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/10/2025 09:26 a.m.

A bill for an act
relating to grants management; requiring certain state employees to receive training
and certification in grants management; requiring granting agencies to take certain
actions following failures by grantees; amending Minnesota Statutes 2024, sections
16B.97, subdivision 4, by adding a subdivision; 16B.98, subdivision 6, by adding
a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 16B.97, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Grants management responsibilities. new text end

new text begin For purposes of sections 16B.97 to
16B.991, "grants management responsibilities" means the requirement for an employee to
oversee or participate in any part of the process of awarding, monitoring, or closing a grant
subject to a grant agreement as described in subdivision 1. Grants management
responsibilities include:
new text end

new text begin (1) developing or issuing requests for proposal;
new text end

new text begin (2) providing technical review of funding proposals;
new text end

new text begin (3) providing support or assistance to applicants;
new text end

new text begin (4) assessing conflicts of interest;
new text end

new text begin (5) reviewing applications;
new text end

new text begin (6) performing a pre-award risk assessment;
new text end

new text begin (7) authorizing the distribution of money or other items of value;
new text end

new text begin (8) monitoring compliance with all regulatory and legal requirements;
new text end

new text begin (9) performing site inspections;
new text end

new text begin (10) making appropriate adjustments or disallowances;
new text end

new text begin (11) reviewing progress reports and evaluating grantee performance;
new text end

new text begin (12) performing a final review of completed awards;
new text end

new text begin (13) processing closeouts; and
new text end

new text begin (14) performing other duties required by or described in grants management policies
and procedures created by the commissioner.
new text end

Sec. 2.

Minnesota Statutes 2024, section 16B.97, subdivision 4, is amended to read:

Subd. 4.

Duties.

(a) The commissioner shall:

(1) create general grants management policies and procedures that are applicable to all
executive agencies. The commissioner 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 programs;

(2) provide a central point of contact concerning statewide grants management policies
and procedures;

new text begin (3) certify state employees who have demonstrated sufficient knowledge and
understanding of grants management policies and procedures;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end serve as a resource to executive agencies in such areas as training, evaluation,
collaboration, and best practices in grants management;

deleted text begin (4) deleted text end new text begin (5) new text end ensure grants management needs are considered in the development, upgrade,
and use of statewide administrative systems and leverage existing technology wherever
possible;

deleted text begin (5) deleted text end new text begin (6) new text end oversee and approve future professional and technical service contracts and other
information technology spending related to executive agency grants management systems
and activities;

deleted text begin (6) deleted text end new text begin (7) new text end provide a central point of contact for comments about executive agencies violating
statewide grants governance policies and about fraud and waste in grants processes;

deleted text begin (7) deleted text end new text begin (8) new text end forward received comments to the appropriate agency for further action, and may
follow up as necessary;

deleted text begin (8) deleted text end new text begin (9) new text end provide a single listing of all available executive agency competitive grant
opportunities and resulting grant recipients;

deleted text begin (9) deleted text end new text begin (10) new text end selectively review development and implementation of executive agency grants,
policies, and practices; deleted text begin and
deleted text end

deleted text begin (10) deleted text end new text begin (11) new text end selectively review executive agency compliance with best practices deleted text begin . deleted text end new text begin ; and
new text end

new text begin (12) maintain a list of grantees that have been:
new text end

new text begin (i) convicted of a crime involving the misuse of government funds;
new text end

new text begin (ii) suspended or debarred from grants programs; or
new text end

new text begin (iii) reported to the commissioner for intentional, serious, or repeated failures to comply
with the terms of a grant agreement and amendments.
new text end

(b) The commissioner may determine that 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 (c) In developing a grants management training curriculum and establishing a certification
for state employees, the commissioner must include an exam component that requires
participants to demonstrate grants management skills, knowledge of grants management
policies and procedures, and an understanding of grants management responsibilities. The
commissioner must establish continuing education requirements for state employees which
must be completed every three years to renew grants management certification.
new text end

Sec. 3.

Minnesota Statutes 2024, section 16B.98, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Grant management oversight; training and certification required. new text end

new text begin (a) A
granting agency must only assign grants management responsibilities to an employee who
has participated in grants management training and received certification from the
commissioner that the employee demonstrated sufficient knowledge and understanding of
grants management policies and procedures.
new text end

new text begin (b) The commissioner may approve a temporary exception of up to 30 days to the
requirements in paragraph (a) if a granting agency does not have an employee who has
received certification from the commissioner. The commissioner must require that any
employee exercising grants management responsibilities under an exception complete
training and receive certification within the period of the temporary exception and may
impose additional reporting and oversight requirements.
new text end

Sec. 4.

Minnesota Statutes 2024, section 16B.98, subdivision 6, is amended to read:

Subd. 6.

Grant administration.

new text begin (a) new text end A granting agency shall diligently administer and
monitor any grant it has entered into. A granting agency must report to the commissioner
at any time at the commissioner's request on the status of any grant to which the agency is
a party.

new text begin (b) Before a granting agency authorizes final payment to a grantee receiving a grant of
at least $50,000 but not more than $250,000, the granting agency must conduct at least one
unannounced, in-person monitoring visit. For grantees receiving a grant of more than
$250,000, the granting agency must conduct at least one unannounced, in-person monitoring
visit in each fiscal year that the grantee receives grant money.
new text end

new text begin (c) A granting agency must document any instance in which a grantee fails to comply
with the terms of a grant agreement and amendments, such as failing to provide timely
progress reports, submit required documentation, respond to requests for additional
documentation, or appear at announced or unannounced monitoring visits. If the granting
agency determines that the failure was unintentional or was neither serious nor part of a
pattern of similar conduct, the agency must notify the grantee of the failure and provide
technical assistance to prevent repeated failures. If the granting agency determines that the
failure was intentional or was either serious or part of a pattern of similar conduct, the
agency must notify the commissioner and take other appropriate action consistent with the
applicable grants management policies and procedures.
new text end

new text begin (d) If a granting agency finds or receives credible information that a grantee has
committed fraud or otherwise engaged in an unlawful use of public funds, the agency must:
new text end

new text begin (1) report the information to the commissioner and the appropriate law enforcement
agency;
new text end

new text begin (2) cooperate in any investigation and subsequent civil suit or criminal prosecution
regarding the suspected fraud or unlawful use of public funds;
new text end

new text begin (3) notify the appropriate law enforcement agency that it intends to stop or withhold
payments and may suspend or debar the grantee from eligibility to receive grants from the
agency; and
new text end

new text begin (4) unless otherwise directed by the law enforcement agency as part of a criminal
investigation, stop or withhold payment until there is a determination that the grantee did
not commit fraud or otherwise engage in an unlawful use of public funds.
new text end

new text begin (e) If a granting agency determines by a preponderance of the evidence that a grantee
engaged in an activity specified in Minnesota Rules, part 1230.1150, subpart 2, the agency
must suspend or debar the grantee from eligibility to receive state-issued grants for up to
three years. A grantee may obtain an administrative hearing pursuant to sections 14.57 to
14.62 before a suspension or debarment is effective by filing a written request for hearing
within 20 days of notification of suspension or debarment.
new text end