HF 3682

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/23/2026 04:26 p.m.

A bill for an act
relating to state government; requiring a grantee fraud risk rating system and
corresponding grants management requirements; 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. new text begin The commissioner's policies and procedures must include a grantee
fraud risk rating system with corresponding grants management requirements that are
informed by the principles of vendor risk management. new text end 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; and

(10) selectively review executive agency compliance with best practices.

(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 EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2027.
new text end