Grantee fraud risk rating system and corresponding grants management required.

A bill for an act

relating to state government; requiring a grantee fraud risk rating system and

corresponding grants management requirements; 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.
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The commissioner's policies and procedures must include a grantee

fraud risk rating system with corresponding grants management requirements that are

informed by the principles of vendor risk management.
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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; and

(10) selectively review executive agency compliance with best practices.

(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).

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EFFECTIVE DATE.

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This section is effective July 1, 2027.

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