Enhanced agency oversight of state grants required.

A bill for an act

relating to state government; requiring enhanced agency oversight of state grants;

amending Minnesota Statutes 2024, section 16B.97, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 16B.97, subdivision 4, is amended to read:

Subd. 4.

Duties.

(a) The commissioner shall:

(1) create general grants management policies and procedures that are applicable to all

executive agencies. The commissioner may approve exceptions to these policies and

procedures for particular grant programs. Exceptions shall expire or be renewed after five

years. Executive agencies shall retain management of individual grants programs;

(2) provide a central point of contact concerning statewide grants management policies

and procedures;

(3) serve as a resource to executive agencies in such areas as training, evaluation,

collaboration, and best practices in grants management;

(4) ensure grants management needs are considered in the development, upgrade, and

use of statewide administrative systems and leverage existing technology wherever possible;

(5) oversee and approve future professional and technical service contracts and other

information technology spending related to executive agency grants management systems

and activities;

(6) provide a central point of contact for comments about executive agencies violating

statewide grants governance policies and about fraud and waste in grants processes;

(7) forward received comments to the appropriate agency for further action, and may

follow up as necessary;

(8) provide a single listing of all available executive agency competitive grant

opportunities and resulting grant recipients;

(9) selectively review development and implementation of executive agency grants,

policies, and practices;
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and
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(10) selectively review executive agency compliance with best practices
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.
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;
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(11) ensure that executive agencies conduct one virtual monitoring visit for grants of

less than $50,000, annual in-person monitoring visits for grants of $50,000 to $250,000,

and biannual in-person monitoring visits for any grant over $250,000; and

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(12) ensure that executive agencies perform a financial reconciliation of grant

expenditures before final payment, with quarterly reconciliation required for any grant over

$500,000.

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(b) The commissioner may determine that it is cost-effective for agencies to develop

and use shared grants management technology systems. This system would be governed

under section
16E.01, subdivision 3
, paragraph (b).

Sec. 2.
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CONFORMING CHANGES TO GRANTS POLICIES.
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The commissioner of administration must update the commissioner's grants management

policies and procedures as necessary to conform with this act.

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Sec. 3.
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EFFECTIVE DATE.
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This act is effective August 1, 2026, and applies to grant agreements executed or amended

on or after that date.

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