HF 394

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; imposing a moratorium on new state grants until
improved accountability measures and management practices are established.

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

Section 1. new text begin MORATORIUM ON STATE GRANTS.
new text end

new text begin An executive branch state agency may not award a new grant after the effective date
of this section until the commissioner of finance certifies that the state has taken adequate
steps to ensure effective management and improved accountability for state grants. These
steps must include:
new text end

new text begin (1) establishment of best practices for state agencies in selection and monitoring of
grantees, conducting compliance reviews, and providing financial oversight;
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new text begin (2) creation of a standard grants contract that includes clauses regarding ownership of
equipment and intellectual property, data privacy, audits, liability, workers' compensation
insurance, grounds for contract cancellation, and satisfactory performance as a condition
of payment; and
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new text begin (3) procedures to ensure that grants managers conduct financial reconciliations for
a sample of grant expenditures at least once during the grant period for all grants over
$50,000.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end