1.1 A bill for an act
1.2 relating to state government; applying responsible contractor requirements to
1.3 recipients of state loans and grants over $50,000;amending Minnesota Statutes
1.4 2024, sections 16A.06, by adding a subdivision; 16B.981, subdivision 2.
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 16A.06, is amended by adding a subdivision
1.7 to read:
1.8 Subd. 13.Minimum requirements. The commissioner must ensure that, at the time of
1.9 application for a loan of $50,000 or more that is funded fully or partially with state dollars,
1.10 the applicant submits a signed statement under oath certifying the applicant meets the
1.11 minimum requirements under section 16C.285, subdivision 3, where applicable. The
1.12 commissioner may delegate the duty under this section to other state agencies via interagency
1.13 agreements.
1.14 Sec. 2. Minnesota Statutes 2024, section 16B.981, subdivision 2, is amended to read:
1.15 Subd. 2.Financial information required; determination of ability to perform. For
1.16 grants of $50,000 or more and subject to sections 16B.97 and 16B.98, before an agency
1.17 awards a competitive, legislatively named, single-source, or sole-source grant, the agency
1.18 must complete a preaward risk assessment to assess the risk that a potential grantee cannot
1.19 or would not perform the required duties. In making this assessment, the agency must review
1.20 the following information as applicable:
1.21 (1) the potential grantee's history of performing duties similar to those required by the
1.22 grant, whether the grant requires the potential grantee to perform services at a significantly
2.1 increased scale, and whether the grant will require significant changes to the operation of
2.2 the potential grantee's organization;
2.3 (2) for a potential grantee that is a nonprofit organization, the potential grantee's most
2.4 recent Form 990 or Form 990-EZ filed with the Internal Revenue Service. If the potential
2.5 grantee has not been in existence long enough or is not required to file Form 990 or Form
2.6 990-EZ, the potential grantee must demonstrate to the agency's satisfaction that the potential
2.7 grantee is exempt and must instead submit the potential grantee's most recent board-reviewed
2.8 financial statements and documentation of internal controls or, if there is no such board, by
2.9 the applicant's managing group;
2.10 (3) for a potential grantee that is a for-profit business, the potential grantee's most recent
2.11 federal and state tax returns, current financial statements, certification that the business is
2.12 not under bankruptcy proceedings, and disclosure of any liens on its assets. If a business
2.13 has not been in business long enough to have a tax return, the grantee must demonstrate to
2.14 the agency's satisfaction that the grantee has appropriate internal financial controls;
2.15 (4) evidence of good standing with the secretary of state under chapter 317A, or other
2.16 applicable law;
2.17 (5) a signed statement under oath submitted by the potential grantee certifying the
2.18 potential grantee meets the minimum requirements under section 16C.285, subdivision 3,
2.19 where applicable;
2.20 (5) (6) if the potential grantee is required to complete an audit under section 309.53,
2.21 subdivision 3, the potential grantee's most recent audit report performed by an independent
2.22 third party in accordance with generally accepted accounting principles; and
2.23 (6) (7) certification, provided by the potential grantee, that none of its current principals
2.24 have been convicted of a felony financial crime in the last ten years. For this section, a
2.25 principal is defined as a public official, a board member, or staff with the authority to access
2.26 funds provided by this agency or determine how those funds are used.
