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HF2786 (Legislative Session 94 (2025-2026))

Requirements for grants from the Department of Education modified.

AI Generated Summary

Purpose of the Bill

The bill aims to establish stricter rules for awarding and maintaining education grants in Minnesota. These criteria ensure that grant funds are used responsibly and align with financial accountability standards.

Main Provisions

  • The bill specifies conditions under which the Minnesota Department of Education must not enter into or must terminate a grant agreement.
  • Grant agreements will be terminated if the recipient organization fails to meet certain financial documentation and compliance requirements.
  • The conditions mainly involve issues like filing requisite financial forms (IRS Form 990 or 990EZ), submitting necessary reports, maintaining tax-exempt status, and keeping administrative costs and employee compensations within specified limits.

Significant Changes to Existing Law

  • A new provision is added to the Minnesota Statutes (chapter 127A), requiring education grant recipients to fulfill several financial responsibility criteria.
  • Changes include mandatory termination of grants to organizations that fail to file required IRS forms, state reports, renewals, or that exceed administrative costs or compensation limits.
  • This measure excludes political subdivisions like school districts and charter schools from these limitations.

Relevant Terms

education grant, nonprofit organization, IRS Form 990, tax-exempt status, financial accountability, administrative costs, fraud investigation, school district, charter school.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toEducation Finance

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces a requirement for nonprofit organizations to file reports under section 309.53 or face grant termination."
      ],
      "removed": [],
      "summary": "This bill references section 309.53 in terms of reporting requirements for grant recipients, thereby emphasizing accountability.",
      "modified": []
    },
    "citation": "309.53",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Establishes a cap on nonprofit employee compensation relative to the governor's salary under section 15A.082."
      ],
      "removed": [],
      "summary": "This legislation references section 15A.082 to define the compensation limits for nonprofit employees receiving state grants.",
      "modified": []
    },
    "citation": "15A.082",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Excludes cooperative units under section 123A.24 subdivision 2 from the grant termination conditions."
      ],
      "removed": [],
      "summary": "This bill references section 123A.24 subdivision 2 to define exemptions from grant termination conditions.",
      "modified": []
    },
    "citation": "123A.24",
    "subdivision": "subdivision 2"
  }
]

Sponsors