HF 3684
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/18/2026 12:27 p.m.
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A bill for an act
relating to veterans; establishing standards for legislatively directed competitive
and direct grants issued by the Department of Veterans Affairs; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 196.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[196.055] REQUIREMENTS FOR LEGISLATIVELY DIRECTED
COMPETITIVE AND DIRECT GRANTS.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Active service member" means a person currently serving in the uniformed services
of the United States of America:
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(1) on active duty who is a resident of the state or stationed in the state; or
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(2) in a reserve component who is a resident of the state.
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(c) "Commissioner" means the commissioner of veterans affairs.
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(d) "Dependent child" means a child under the age of 22 who is a biological or adopted
child of a veteran.
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(e) "Immediate family member" means a spouse or dependent child of a veteran.
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(f) "Veteran" means a person who is a resident of Minnesota and who served in the
armed forces of the United States of America.
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new text begin Subd. 2. new text end
new text begin Grantee eligibility. new text end
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(a) To be eligible to receive a legislatively directed
competitive or direct grant administered by the commissioner, the grantee must be:
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(1) a Minnesota-based nonprofit organization that has been operating for at least five
years;
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(2) be in good standing with the Office of the Attorney General; and
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(3) have a current federal tax form 990 on file with the federal Internal Revenue Service.
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(b) Grants made by the commissioner pursuant to sections 190.19, subdivision 2a, clauses
(5) and (6); 197.608; and 197.61 are exempt from the requirements of this section.
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new text begin Subd. 3. new text end
new text begin Limitations on use of grant money. new text end
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(a) A grantee may only use grant money
subject to this section to provide services to:
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(1) Minnesota veterans;
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(2) active service members;
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(3) immediate family members of a Minnesota veteran or active service member; and
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(4) immediate family members of a Minnesota veteran who died in the line of duty.
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(b) When there are insufficient resources to serve all eligible applicants, a grantee must
prioritize serving veterans with a service-connected disability.
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new text begin Subd. 4. new text end
new text begin Grant application scoring system. new text end
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The commissioner must develop a grant
application scoring system that evaluates a grant application based upon an applicant's
demonstrated history of serving veterans. The scoring system must include measurable
outcomes for veterans previously served by the applicant.
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new text begin Subd. 5. new text end
new text begin Grant amounts. new text end
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The commissioner shall determine the amount of each
legislatively directed competitive grant awarded based on the results of the scoring system
developed pursuant to subdivision 4. The commissioner may not use a grantee's request for
a designated grant amount as a factor to determine the amount of the grant awarded to the
grantee.
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new text begin Subd. 6. new text end
new text begin Suspension of grant money. new text end
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The commissioner may withhold an amount
awarded to a grantee if the commissioner determines that the grantee has committed fraud,
is under criminal investigation, has conducted itself in a manner that brings the state of
Minnesota or the Department of Veterans Affairs into disrepute, or is incapable of delivering
the services required under the grant agreement.
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new text begin Subd. 7. new text end
new text begin Reports. new text end
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(a) Beginning in 2027, by February 15 of each year a grantee must
submit a report to the commissioner that includes the following information:
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(1) a summary of the purpose of the grant;
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(2) the grant amount provided to the grantee;
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(3) the amount of previous grants issued by the commissioner to the grantee;
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(4) the amount of other state and federal grants received by the grantee in the most recent
fiscal year;
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(5) the number of veterans, active service members, and immediate family members
served by the grantee;
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(6) the number of veterans, active service members, and immediate family members
who successfully completed the grantee's programming and the criteria used to determine
successful completion of the programming; and
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(7) the grantee's charitable giving ratio.
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(b) The commissioner may require a grantee to report information in addition to the
required information under paragraph (a) if specified in the grantee's grant agreement with
the state.
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(c) Beginning in 2027, by March 1 of each year the commissioner must submit a report
on grantees that received legislatively directed competitive or direct grants from the agency
in the preceding year to the chairs and ranking minority members of the legislative
committees with jurisdiction over veterans affairs policy and finance. The report must
summarize the information and aggregate the data provided by grantees under paragraph
(a).
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new text begin Subd. 8. new text end
new text begin Administrative costs. new text end
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The commissioner may retain up to five percent of the
amount appropriated for legislatively directed competitive and direct grants to fund
administrative and compliance monitoring costs related to the grants.
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new text begin Subd. 9. new text end
new text begin Interaction with other law. new text end
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Notwithstanding any law to the contrary, the
requirements for grants established under this section are in addition to the applicable grants
management requirements imposed under sections 16B.97 to 16B.991.
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