This bill amends Minnesota Statutes 2024, section 16B.97, subdivision 4, to require the commissioner to establish a grantee fraud risk rating system as part of the general grants management policies and procedures applicable to all executive agencies. The new policies must be informed by vendor risk management principles and include corresponding grants management requirements. Additionally, the bill outlines the duties of the commissioner, which include providing resources for training and best practices, overseeing grants management systems, and ensuring compliance with statewide governance policies.

Furthermore, the bill appropriates $71,000 from the general fund for fiscal year 2027 to support the development of the fraud risk rating system, update existing policies, and create training content to enhance compliance. The base for this appropriation is set at $71,000 for fiscal year 2028, with no funding allocated for fiscal year 2029 and beyond. The effective date for the new provisions is July 1, 2027.

Statutes affected:
Introduction: 16B.97
1st Engrossment: 16B.97
2nd Engrossment: 16B.97