HF 3093

as introduced - 94th Legislature (2025 - 2026) Posted on 04/07/2025 05:12pm

A bill for an act
relating to state government; applying responsible contractor requirements to
recipients of state loans and grants over $50,000; amending Minnesota Statutes
2024, sections 16A.06, by adding a subdivision; 16B.981, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 16A.06, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Minimum requirements. new text end

new text begin The commissioner must ensure that, at the time of
application for a loan of $50,000 or more that is funded fully or partially with state dollars,
the applicant submits a signed statement under oath certifying the applicant meets the
minimum requirements under section 16C.285, subdivision 3, where applicable. The
commissioner may delegate the duty under this section to other state agencies via interagency
agreements.
new text end

Sec. 2.

Minnesota Statutes 2024, section 16B.981, subdivision 2, is amended to read:

Subd. 2.

Financial information required; determination of ability to perform.

For
grants of $50,000 or more and subject to sections 16B.97 and 16B.98, before an agency
awards a competitive, legislatively named, single-source, or sole-source grant, the agency
must complete a preaward risk assessment to assess the risk that a potential grantee cannot
or would not perform the required duties. In making this assessment, the agency must review
the following information as applicable:

(1) the potential grantee's history of performing duties similar to those required by the
grant, whether the grant requires the potential grantee to perform services at a significantly
increased scale, and whether the grant will require significant changes to the operation of
the potential grantee's organization;

(2) for a potential grantee that is a nonprofit organization, the potential grantee's most
recent Form 990 or Form 990-EZ filed with the Internal Revenue Service. If the potential
grantee has not been in existence long enough or is not required to file Form 990 or Form
990-EZ, the potential grantee must demonstrate to the agency's satisfaction that the potential
grantee is exempt and must instead submit the potential grantee's most recent board-reviewed
financial statements and documentation of internal controls or, if there is no such board, by
the applicant's managing group;

(3) for a potential grantee that is a for-profit business, the potential grantee's most recent
federal and state tax returns, current financial statements, certification that the business is
not under bankruptcy proceedings, and disclosure of any liens on its assets. If a business
has not been in business long enough to have a tax return, the grantee must demonstrate to
the agency's satisfaction that the grantee has appropriate internal financial controls;

(4) evidence of good standing with the secretary of state under chapter 317A, or other
applicable law;

new text begin (5) a signed statement under oath submitted by the potential grantee certifying the
potential grantee meets the minimum requirements under section 16C.285, subdivision 3,
where applicable;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end if the potential grantee is required to complete an audit under section 309.53,
subdivision 3, the potential grantee's most recent audit report performed by an independent
third party in accordance with generally accepted accounting principles; and

deleted text begin (6) deleted text end new text begin (7) new text end certification, provided by the potential grantee, that none of its current principals
have been convicted of a felony financial crime in the last ten years. For this section, a
principal is defined as a public official, a board member, or staff with the authority to access
funds provided by this agency or determine how those funds are used.