Purpose of the Bill

The bill aims to amend the laws governing grants management for state government in Minnesota. It seeks to streamline processes, strengthen accountability, and ensure proper use of state funds by modifying existing statutes.

Main Provisions

• Grant Agreement Definitions: The bill updates the definition of a "grant agreement" and "grantee" to clearly outline the relationship and responsibilities involved with state-issued grants. It does not apply to certain types of grants like general obligation grants and capital project grants.

• Limitation of Administrative Costs: Grantees must agree to keep administrative costs necessary and reasonable. Granting agencies are responsible for negotiating these costs to ensure maximum benefit from the state funds.

• Reporting Violations: State employees who find evidence of grant-related legal violations are required to report such findings. Protections are provided for employees who report in good faith, preventing employer discrimination.

• Grant Awarding Authority: Agencies have the authority to require additional information from potential grantees if there's a concern about their ability to fulfill grant duties. They must allow a specified time for grantees to respond and can decide not to award a grant if concerns remain.

• Appeal Process for Grant Denial: If a grant is not awarded, the grantee can contest the decision, and the agency must review any additional information provided. The final decision may be challenged as a contested case under specific conditions.

• Unilateral Grant Termination: The commissioner is given the authority to terminate grant agreements unilaterally if the continuation is not in the best interest of the state or does not serve agency purposes.

Significant Changes to Existing Law

• The bill introduces a mandatory reporting requirement for state employees who discover grant-related violations.
• It adjusts the timeline and process for agencies to communicate with potential grantees and respond to concerns.
• The bill outlines clear steps and opportunities for grantees to contest denied grants.
• It grants the commissioner more authority to terminate grants unilaterally if necessary.

Relevant Terms

grants management, grant agreement, grantee, administrative costs, violation reporting, agency authority, grant termination, contested case, legislative process, state funds, unilateral termination, accountability.