A bill for an act
relating to state government; establishing the position of director of grants
management and oversight within the Department of Administration; requiring
standards related to grantmaking and grants management practices; requiring
reports; amending Minnesota Statutes 2022, sections 16B.97, subdivisions 2, 3,
4, 5; 16B.98, subdivisions 4, 5, 6, 7.

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

Section 1.

Minnesota Statutes 2022, section 16B.97, subdivision 2, is amended to read:


Subd. 2.

Grants governance.

new text begin The commissioner must appoint a director of grants
management and oversight. At a minimum, the director must have demonstrated professional
experience in auditing and legal compliance related to grantmaking within a large, complex
organization.
new text end The deleted text begin commissionerdeleted text end new text begin directornew text end shall deleted text begin provide leadership and direction fordeleted text end new text begin oversee
the implementation of law and
new text end policy related to grants management in Minnesota deleted text begin in orderdeleted text end new text begin .
The director's responsibilities are
new text end tonew text begin : (1)new text end foster more consistent, streamlined interaction
between executive agencies, funders, and grantees that will enhance access to grant
opportunities and informationnew text begin ; (2) ensure compliance with laws relating to grantmaking
and the grants management process;
new text end and deleted text begin lead to greater program accountability and
transparency
deleted text end new text begin (3) be a resource in ensuring public accountability and transparency in grant
programs administered by executive agencies
new text end . The deleted text begin commissionerdeleted text end new text begin directornew text end has the duties
and powers stated in this sectionnew text begin and section 16B.98new text end . An executive agency must do what
the deleted text begin commissionerdeleted text end new text begin directornew text end requires under this section.

Sec. 2.

Minnesota Statutes 2022, section 16B.97, subdivision 3, is amended to read:


Subd. 3.

Discretionary powers.

The deleted text begin commissionerdeleted text end new text begin directornew text end has the authority to:

(1) review grants management practices and propose policy and procedure improvements
to the governor, legislature, executive agencies, and the federal government;

(2) sponsor, support, and facilitate innovative and collaborative grants management
projects with public and private organizations;

(3) review, recommend, and implement alternative strategies for grants management;

(4) collect and disseminate information, issue reports relating to grants management,
and sponsor and conduct conferences and studies; and

(5) participate in conferences and other appropriate activities related to grants
management issues.

Sec. 3.

Minnesota Statutes 2022, section 16B.97, subdivision 4, is amended to read:


Subd. 4.

Duties.

(a) The deleted text begin commissionerdeleted text end new text begin directornew text end shall:

(1) create general grants management policies and procedures that are applicable to all
executive agencies. The deleted text begin commissionerdeleted text end new text begin directornew text end 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 programsnew text begin ,
provided that the director determines the executive agency is compliant with the requirements
of law related to grantmaking and grants management in administering its programs
new text end ;

(2) provide a central point of contact concerning statewide grants management policies
deleted text begin anddeleted text end new text begin ,new text end proceduresnew text begin , and requirements of lawnew text end ;

(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 activitiesnew text begin ,
including verifying, in consultation with the legislative auditor, that information technology
systems used by executive branch agencies in administering grant programs meet the
requirements of this section and section 16B.98
new text end ;

(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 deleted text begin appropriate agencydeleted text end new text begin legislative auditornew text end 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) deleted text begin selectivelydeleted text end review development and implementation of executive agency grants,
policies, and practices; deleted text begin and
deleted text end

(10) deleted text begin selectivelydeleted text end review executive agency compliance with best practicesdeleted text begin .deleted text end new text begin ;
new text end

new text begin (11) in consultation with the legislative auditor, review executive agency compliance
with the requirements of law related to grantmaking and grants management;
new text end

new text begin (12) review and approve or disapprove a grantee's request for waivers, deadline
extensions, or other variances from the terms of a written grant agreement; and
new text end

new text begin (13) in consultation with the legislative auditor, provide a standardized form that granting
agencies may use to submit oversight reports to the governor and legislature regarding grant
activities, including details related to the number of grants awarded by the agency, how
each grant is being used, appropriate statistics demonstrating how the use of the grant
benefits the public, and specific details on the use of any funds retained by the granting
agency for costs associated with administering the grant.
new text end

(b) new text begin No later than July 1, 2024, new text end the deleted text begin commissioner maydeleted text end new text begin director mustnew text end determine deleted text begin thatdeleted text end new text begin
whether
new text end 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).new text begin If the director determines that a shared grants management technology system
would not be cost-effective, the director must propose an alternative enterprise-wide reporting
system for grants management that allows for public accountability, transparency, and
information sharing across all agencies. To the extent practical, the director must work with
the commissioner of management and budget to build appropriate grants management
functionality into any new statewide accounting system developed for use by agencies.
new text end

Sec. 4.

Minnesota Statutes 2022, section 16B.97, subdivision 5, is amended to read:


Subd. 5.

Data classification.

Data maintained by the deleted text begin commissionerdeleted text end new text begin directornew text end that identify
a person providing comments to the commissioner under subdivision 4, paragraph (a),
clauses (6) and (7), are private and nonpublic data but may be shared with the executive
agency that is the subject of the comments.

Sec. 5.

Minnesota Statutes 2022, section 16B.98, subdivision 4, is amended to read:


Subd. 4.

Reporting of violations.