SF2578 (Legislative Session 94 (2025-2026))
Grants management provisions modifications
Related bill: HF2919
AI Generated Summary
Purpose of the Bill
The bill aims to update and amend the existing laws related to the management and oversight of grants issued by the state of Minnesota. This involves clarifying definitions, setting conditions for grant agreements, and specifying procedures and obligations for both grant recipients and state agencies.
Main Provisions
Grant Agreement Definitions: Updates the definition of a grant agreement, emphasizing its role in transferring resources to support public purposes rather than acquiring goods or services for the agency's direct benefit.
Minimizing Administrative Costs: Requires grant recipients to ensure that administrative costs are necessary and reasonable. The state agency responsible for issuing the grant must negotiate these cost limits to maximize the benefit of grant funding.
Reporting Violations: Mandates that state employees report any suspected violations of laws or rules related to grants to their supervisors, commissioners, or the legislative auditor. Employees making good faith reports are protected from employer discrimination.
Grant Award Decisions: Provides agencies the authority to withhold grant awards if there are concerns about the grantee's ability to fulfill grant obligations. The grantee must be given an opportunity to address these concerns within 15 days. Agencies must inform the grantee of reasons for not awarding a grant and the process for contesting such a decision.
Legislatively Named Grants: If a grant specified by the legislature is not awarded, the agency must wait for legislative action before proceeding, allowing the legislature to reaffirm or redirect the grant funds.
Unilateral Termination Authority: Grants the commissioner the right to terminate any grant agreement if continuing the agreement does not serve agency purposes or is not in the best interests of the state.
Significant Changes
- Requires stricter reporting and oversight for potential violations of grant laws and rules.
- Changes the timeframe for grantees to respond to agency concerns from 30 business days to 15 calendar days.
- Allows state agencies more discretion in delaying or canceling grant awards if concerns about a grantee’s capabilities arise.
- Introduces a new process for dealing with contested cases regarding grant awards and allows termination of grant agreements if deemed not beneficial.
Relevant Terms
- Grants management
- Grant agreement
- Administrative costs
- Legislative auditor
- Grantee
- Unilateral termination
- Legally named grants
- Contested cases
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 16, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 16, 2025 | Senate | Floor | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 16A.695, which pertains to the management and utilization of general obligation bonds. The mentioned section is used to define grants that are excluded from the applicability of the amended sections.",
"modified": []
},
"citation": "16A.695",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section, 16A.86, is referenced to define capital project grants to political subdivisions. These grants are also excluded from the application of the newly amended sections.",
"modified": []
},
"citation": "16A.86",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references section 16A.642 regarding the sunset of appropriations. The section plays a role in exempting certain capital project grants from the provisions being amended.",
"modified": []
},
"citation": "16A.642",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 181.932 provides protection to employees who report violations. It is referenced to ensure that employees reporting grant violations are protected from employer discrimination.",
"modified": []
},
"citation": "181.932",
"subdivision": ""
},
{
"analysis": {
"added": [
"Clarification of exclusions for specific grants such as general obligations and capital projects."
],
"removed": [],
"summary": "Section 16B.97 involves grant agreement definitions, and the bill amends this section to refine definitions and clarify exclusions for specific grant types.",
"modified": [
"Redefinition of terms within the grant agreement context."
]
},
"citation": "16B.97",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 16B.98 deals with limitations on grant agreements and the management of administrative costs. The bill modifies the section to ensure negotiated limits for administrative costs for grant recipients.",
"modified": [
"Enhancement of conditions concerning administrative cost limitations."
]
},
"citation": "16B.98",
"subdivision": ""
},
{
"analysis": {
"added": [
"Detailed steps and timelines for agency decision challenges regarding grant awards."
],
"removed": [],
"summary": "Section 16B.981 provides agency authority related to not awarding grants if certain conditions are not met. The bill refines this authority and processes for appealing agency decisions.",
"modified": [
"Clarified agency authority and grantee response mechanisms."
]
},
"citation": "16B.981",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Section 16B.991 allows for termination of grant agreements when they no longer serve agency purposes. The bill reaffirms and details the conditions under which such terminations can occur.",
"modified": [
"Specification of commissioner authority for grant termination."
]
},
"citation": "16B.991",
"subdivision": ""
}
]