The 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. This new requirement emphasizes the importance of vendor risk management principles in the grants management process. Additionally, the bill maintains the existing duties of the commissioner, which include providing resources and support to executive agencies, overseeing grants management systems, and ensuring compliance with best practices.

Furthermore, the bill introduces an effective date for the new provisions, stating that they will take effect on July 1, 2027. This timeline allows for the necessary preparations and adjustments to be made by the relevant agencies to implement the new fraud risk rating system and corresponding management requirements.

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