Purpose of the Bill

The purpose of this bill is to change how state agencies in Minnesota manage grant funds, specifically regarding their ability to retain a portion of grant money for administrative expenses.

Main Provisions

• The bill seeks to repeal an existing statute that permits state agencies to keep a portion of grant funds to cover administrative costs. Currently, agencies can retain up to 5% of appropriated grant funds and up to 10% of competitively awarded grant funds for administrative purposes.
• This change will affect new grant programs appropriated by the legislature on or after July 1, 2023.
• Exclusions from this change include grants funded by state general obligation bonds, where the statute's current provisions do not apply.

Significant Changes

• The bill eliminates the statutory authority for state agencies to withhold a portion of grant funds for administrative expenses. Previously, agencies could allocate a percentage of grant funding for administrative uses, which will no longer be allowed under this bill’s revisions.

Relevant Terms

• Minnesota Statutes
• State Agencies
• Administrative Costs
• Grant Management
• Competitively Awarded Grants
• General Obligation Bonds