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HF3093 (Legislative Session 94 (2025-2026))

Responsible contractor requirements to recipients of state loans and grants over $50,000 applied.

Related bill: SF3475

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to implement responsible contractor requirements for recipients of state loans and grants over $50,000 in Minnesota. It aims to ensure that applicants seeking financial assistance from the state meet specific standards before receiving funds.

Main Provisions

  • Application Requirements for Loans:

    • Applicants for state loans over $50,000 must submit a signed statement under oath certifying that they meet minimum requirements as outlined in Minnesota law (Section 16C.285, subdivision 3).
    • The responsibility for verifying these requirements can be delegated to other state agencies via interagency agreements.

  • Pre-award Risk Assessment for Grants:

    • For state grants over $50,000, agencies must conduct a pre-award risk assessment to evaluate whether a potential grantee can fulfill the grant’s requirements.
    • This assessment includes reviewing the grantee’s history with similar duties, financial health through financial statements and tax documents, and verifying the absence of felony financial crime convictions among principals.

Significant Changes to Existing Law

  • This bill amends existing Minnesota Statutes 2024 sections 16A.06 and 16B.981 by adding content that holds applicants to new standards when applying for significant financial amounts from the state.
  • It introduces a mandatory certification process to ensure compliance with responsible contractor standards, and it mandates thorough vetting processes for prospective grantees to minimize financial risk to the state.

Relevant Terms

  • Responsible contractor requirements
  • State loans and grants
  • Minimum requirements
  • Pre-award risk assessment
  • Financial accountability
  • Certification process

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 02, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 06, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Inclusion of evidence of good standing with the secretary of state under chapter 317A or other applicable law.",
        "Requirement for a signed statement certifying minimum requirements under section 16C.285 subdivision 3."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends financial information requirement for state grants over $50,000 under section 16B.981 subdivision 2.",
      "modified": [
        "Reorganizes the order of required information for grant assessment."
      ]
    },
    "citation": "16B.981",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References audit requirements regulated under section 309.53 for potential grantees.",
      "modified": [
        "Clarifies the necessity of audit reports in grant assessments."
      ]
    },
    "citation": "309.53",
    "subdivision": "subdivision 3"
  }
]

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