SF 4026

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/03/2026 09:13 a.m.

A bill for an act
relating to veterans; establishing standards for use of competitive 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.

new text begin [196.055] REQUIREMENTS FOR COMPETITIVE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Commissioner" means the commissioner of veterans affairs.
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new text begin (c) "Dependent child" means a child under the age of 22 who is a biological or adopted
child of a veteran.
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new text begin (d) "Immediate family member" means a spouse or dependent child of a veteran.
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new text begin (e) "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

new text begin To be eligible to receive a competitive grant administered
by the commissioner, the grantee must be:
new text end

new text begin (1) a Minnesota-based nonprofit organization that has been operating for at least five
years;
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new text begin (2) be in good standing with the Office of the Attorney General; and
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new text begin (3) have a current federal tax form 990 on file with the federal Internal Revenue Service.
new text end

new text begin Subd. 3. new text end

new text begin Limitations on use of grant money. new text end

new text begin A grantee may only use grant money
subject to this section to provide services to: (1) Minnesota veterans; (2) immediate family
members of a Minnesota veteran; or (3) immediate family members of a deceased Minnesota
veteran who died in the line of duty. If there are insufficient resources to serve all eligible
applicants, a grantee must serve veterans with physical, mental, or chemical health disabilities
before serving other eligible applicants.
new text end

new text begin Subd. 4. new text end

new text begin Grant application scoring system. new text end

new text begin The commissioner must develop a grant
application scoring system that evaluates grant applications 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

new text begin The commissioner shall determine the amount of each
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.
new text end

new text begin Subd. 6. new text end

new text begin Suspension of grant money. new text end

new text begin The commissioner may withhold amounts 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.
new text end

new text begin Subd. 7. new text end

new text begin Reports. new text end

new text begin (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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new text begin (1) a summary of the purpose of the grant;
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new text begin (2) the grant amount provided to the grantee;
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new text begin (3) the amount of previous grants issued by the commissioner to the grantee;
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new text begin (4) the amount of other state and federal grants received by the grantee in the most recent
fiscal year;
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new text begin (5) the number of veterans, active service members, and immediate family members
served by the grantee;
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new text begin (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 program; and
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new text begin (7) the grantee's charitable giving ratio.
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new text begin (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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new text begin (c) Beginning in 2027, by March 1 of each year the commissioner must submit a report
on grantees that received competitive 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).
new text end

new text begin Subd. 8. new text end

new text begin Administrative costs. new text end

new text begin The commissioner may retain up to five percent of the
amount appropriated for competitive grants to fund administrative and compliance monitoring
costs related to the grants.
new text end

new text begin Subd. 9. new text end

new text begin Interaction with other law. new text end

new text begin Notwithstanding any law to the contrary, the
requirements for competitive grants established in this section are in addition to the applicable
grants management requirements imposed under sections 16B.97 to 16B.991.
new text end