HF 3422

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/05/2026 04:40 p.m.

A bill for an act
relating to state government; requiring enhanced agency oversight of state grants;
amending Minnesota Statutes 2024, section 16B.97, subdivision 4.

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

Section 1.

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;

(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 systems
and activities;

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

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

new text begin (11) ensure that executive agencies conduct one virtual monitoring visit for grants of
less than $50,000, annual in-person monitoring visits for grants of $50,000 to $250,000,
and biannual in-person monitoring visits for any grant over $250,000; and
new text end

new text begin (12) ensure that executive agencies perform a financial reconciliation of grant
expenditures before final payment, with quarterly reconciliation required for any grant over
$500,000.
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).

Sec. 2. new text begin CONFORMING CHANGES TO GRANTS POLICIES.
new text end

new text begin The commissioner of administration must update the commissioner's grants management
policies and procedures as necessary to conform with this act.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective August 1, 2026, and applies to grant agreements executed or amended
on or after that date.
new text end