HF3629 (Legislative Session 94 (2025-2026))
Provisions for grants management changed.
Related bill: SF4149
AI Generated Summary
Purpose
This bill changes how Minnesota state government manages grants. It creates a centralized framework and more formal oversight for how grants are awarded, tracked, and used by executive agencies, while keeping individual agencies responsible for running their own grant programs.
Main Provisions
Central grants management policies
- The commissioner must create general grants management policies and procedures that apply to all executive agencies.
- Exceptions can be approved for particular grant programs, but those exceptions must renew or expire after five years.
- Executive agencies keep day-to-day control of their own grant programs.
Central coordination and guidance
- The commissioner will serve as a central point of contact for statewide grants management policies and procedures.
- The commissioner provides guidance and support on training, evaluation, collaboration, and best practices in grants management.
- The commissioner helps ensure grants management needs are considered in the development or upgrade of statewide administrative systems and will leverage existing technology where possible.
- The commissioner oversees and approves certain contracts and IT spending related to grants management.
Oversight, comments, and transparency
- The commissioner provides a central channel for comments about violations of statewide grants governance policies and about fraud or waste in grants processes, and will forward these to the appropriate agency.
- The commissioner may follow up as needed.
- The bill requires a single listing of all available competitive grant opportunities and the resulting grant recipients.
- The commissioner may selectively review how agencies develop and implement grants policies and practices, and how well they comply with best practices.
Shared technology option
- The commissioner may determine that it is cost-effective for agencies to develop and use shared grants management technology systems, governed by another statute (section 16E.01, subdivision 3, paragraph b).
Data privacy and sharing
- Data identifying a person who provides comments to the commissioner under the grants-oversight provisions are private/nonpublic data, but may be shared with the subject executive agency.
Encumbrance flexibility (for noncompetitive grants)
- Agencies may allow a specifically named legislatively appropriated noncompetitive grant recipient to incur eligible expenses for up to 60 days before an encumbrance is established, based on an agreed work plan and budget.
Accountability for criminal conduct
- Any grant agreement covered by these provisions must be terminated immediately if the recipient is convicted of a criminal offense relating to a state grant.
- “Recipient” includes individuals, entities, board members, officers, executives, employees, agents with authority over or access to grant funds, or anyone with fiduciary responsibility related to the grant.
Significant Changes to Existing Law
- Establishes a new, centralized grants governance and policy framework led by a designated commissioner.
- Expands statewide oversight and transparency, including a central listing of grant opportunities and recipients.
- Allows for shared technology systems across agencies to manage grants, potentially standardizing processes.
- Adds privacy protections for comments submitted to the commissioner, with limited sharing to the relevant agency.
- Creates a new exception to encumbrance timing to allow pre-encumbrance spending for defined noncompetitive grants.
- Introduces a clear termination trigger for grant agreements tied to criminal convictions.
Implications and Practical Effects
- State agencies may spend time aligning their grants programs with centralized policies, and they may transition to shared technology systems.
- Grant applicants and recipients could experience more standardized rules and greater scrutiny.
- Agencies must handle comments and data with privacy in mind, while allowing some sharing for accountability.
- Noncompetitive grant recipients could see smoother early spending under the encumbrance exception, but only within the 60-day window and with a defined work plan and budget.
- Any person connected to a grant who is convicted of related crimes could lose funding immediately.
Relevant Terms - grants management - grants governance policies - executive agencies - commissioner - central point of contact - fraud and waste - competitive grant opportunities - grant recipients - best practices - shared grants management technology systems - work plan - budget - encumbrance - encumbrance exception - legislatively appropriated noncompetitive grant recipient - private data - nonpublic data - fiduciary responsibility - termination for criminal conviction - recipients - performance and compliance review - statewide administrative systems
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 23, 2026 | House | Action | Introduction and first reading, referred to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Creates general grants management policies and procedures applicable to all executive agencies.",
"Authorizes the commissioner to approve exceptions to these policies for certain grant programs, with exceptions expiring or being renewed after five years.",
"Retains executive agencies’ management of individual grants programs.",
"Establishes a central point of contact for statewide grants management policies and procedures.",
"Position the commissioner as a resource for training, evaluation, collaboration, and best practices in grants management.",
"Requires consideration of grants management needs in the development, upgrade, and use of statewide administrative systems; leverages existing technology where possible.",
"Oversees and approves future professional and technical service contracts and other information technology spending related to executive agency grants management systems.",
"Provides a central channel for comments about statewide grants governance violations and about fraud and waste in grants processes; forwards comments to the appropriate agency and may follow up as necessary.",
"Maintains a single listing of all available executive agency competitive grant opportunities and resulting grant recipients.",
"Selectively reviews development and implementation of executive agency grants policies and practices and compliance with best practices."
],
"removed": [],
"summary": "This bill amends Minnesota Statutes, section 16B.97, subdivision 4 to create general grants management policies and centralized oversight for executive agencies.",
"modified": [
"Centralizes grants governance and expands the commissioner’s role in policy development, oversight, and interagency coordination."
]
},
"citation": "16B.97",
"subdivision": "4"
},
{
"analysis": {
"added": [
"Data identifying a person providing comments to the commissioner under subdivision 4, paragraph a, clauses 6 and 7, is private and nonpublic data.",
"Data may be shared with the executive agency that is the subject of the comments."
],
"removed": [],
"summary": "This bill adds a data classification for comments provided to the commissioner under subdivision 4, affecting privacy and data sharing.",
"modified": [
"Clarifies privacy and data sharing provisions for comments in the grants governance process."
]
},
"citation": "16B.97",
"subdivision": "5"
},
{
"analysis": {
"added": [
"Encumbrance exception allowing incurring eligible expenses up to 60 days prior to encumbrance for a named legislatively appropriated noncompetitive grant recipient.",
"Requires an agreed-upon work plan and budget."
],
"removed": [],
"summary": "The bill adds an encumbrance exception allowing a specifically named legislatively appropriated noncompetitive grant recipient to incur eligible expenses before encumbrance, under an approved work plan and budget.",
"modified": [
"Provides pre-encumbrance spending flexibility for noncompetitive grant recipients."
]
},
"citation": "16B.98",
"subdivision": "11"
},
{
"analysis": {
"added": [
"Immediate termination of a grant agreement if the recipient is convicted of a criminal offense relating to a state grant.",
"Recipient includes individuals, entities, and key personnel of entities including board members, officers, executives, employees, or agents with authority over or access to grant funds and any individual in a fiduciary position related to the grant."
],
"removed": [],
"summary": "The bill strengthens accountability by requiring termination of a grant agreement if the recipient is convicted of a criminal offense related to a state grant, and defines who counts as a recipient.",
"modified": [
" strengthens grant accountability by tying eligibility to criminal conduct and clarifies the scope of who is a recipient."
]
},
"citation": "16B.991",
"subdivision": "1"
},
{
"analysis": {
"added": [
"Cross-reference to 16E.01 Subdivision 3, Paragraph (b) for governance of the shared grants management technology system."
],
"removed": [],
"summary": "The bill cross-references 16E.01, subdivision 3, paragraph (b) for governance of the shared grants management technology system; no substantive policy change is proposed.",
"modified": [
"No substantive change to 16E.01; text relies on existing governance provisions."
]
},
"citation": "16E.01",
"subdivision": "3 paragraph b"
},
{
"analysis": {
"added": [
"Cross-reference to 16C.05 Subd. 2, Par. a, Cl. 3 for legal basis related to encumbrance-related requirements."
],
"removed": [],
"summary": "The bill cross-references 16C.05, subdivision 2, paragraph (a), clause 3 for governance related to encumbrances; no substantive change is introduced.",
"modified": [
"No substantive change; linkage to existing 16C.05 provisions."
]
},
"citation": "16C.05",
"subdivision": "2 paragraph a clause 3"
}
]Progress through the legislative process
In Committee