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SF3475 (Legislative Session 94 (2025-2026))

Responsible contractor requirements application authorization to recipients of state loans and grants over $50,000

Related bill: HF3093

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to establish responsible contractor requirements for recipients of state loans and grants that are $50,000 or more. It aims to ensure that applicants for substantial state-funded loans and grants meet specified financial and performance standards, enhancing accountability and reducing risks associated with state funding.

Main Provisions

  • Minimum Requirements for Loans: Applicants for state loans of $50,000 or more must submit a signed statement under oath certifying they meet the minimum standards defined in section 16C.285, subdivision 3. This is required at the time of application.
  • Pre-Award Risk Assessment for Grants: Before awarding a grant of $50,000 or more, agencies must conduct a risk assessment of potential grantees to evaluate their capability and financial health. Key factors include:
    • History of similar performance
    • Financial stability, shown through tax returns, financial statements, and, where applicable, nonprofit documentation like Form 990
    • Evidence of good standing with relevant authorities
    • Certification that applicant meets minimum requirements
    • Assurance that none of the principals have been convicted of felony financial crimes in the past ten years

Significant Changes to Existing Law

  • The bill mandates a comprehensive process to assess the financial and operational capability of applicants for both loans and grants, introducing a greater rigor than required previously.
  • It incorporates new requirements such as a sworn certification of meeting specific minimum requirement standards, and detailed financial scrutiny via documents like tax returns and internal financial controls.

Relevant Terms

  • Responsible contractor requirements
  • State loans and grants
  • Financial risk assessment
  • Applicant certification
  • Loan and grant application process

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 01, 2025SenateFloorActionIntroduction and first reading
May 01, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Addition of financial certification requirements and evidence of good standing."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation modifies the financial information required for determining the ability to perform under section 16B.981.",
      "modified": [
        "Updates to pre-award risk assessment procedures."
      ]
    },
    "citation": "16B.981",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of independent audit report requirements for compliance."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references audit requirements under section 309.53.",
      "modified": [
        ""
      ]
    },
    "citation": "309.53",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Certification requirements for meeting minimum standards."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the requirement standards under section 16C.285.",
      "modified": [
        ""
      ]
    },
    "citation": "16C.285",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Requirement to provide evidence of good standing with the secretary of state."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references good standing evidence requirements under chapter 317A.",
      "modified": [
        ""
      ]
    },
    "citation": "317A",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors