The General Assembly Raised Bill No. 5255 aims to enhance oversight of state agency grants by implementing recommendations from the Auditors of Public Accounts. The bill introduces new definitions for "legislatively earmarked grants," "subawards," "subrecipients," and "state agencies," which clarify the roles and responsibilities associated with these grants. Effective October 1, 2026, the Secretary of the Office of Policy and Management is tasked with developing a standard contract template for these grants, establishing general requirements for grantees, and creating a training program for state agency employees on best practices related to grant management.

Starting January 1, 2027, all state agencies are required to utilize the developed contract template and ensure that relevant employees complete the training. Additionally, each agency must submit an annual report detailing all legislatively earmarked grant awards and subawards disbursed in the previous year, including evaluations and any concerns regarding recipients. The Secretary will compile these reports into a summary for the General Assembly's relevant committees. This bill seeks to improve accountability and monitoring of state grant funds, ensuring they are used effectively and in accordance with established guidelines.