Bill > HF2

This bill strengthens fraud reporting and grants management requirements for state agencies in Minnesota. It creates new mandates for state employees to immediately report suspected fraud to their supervisor, agency head, or the legislative auditor, with protections against workplace discrimination for good faith reporting. The bill requires state agencies to post organizational charts on their websites with leadership contact information and imposes more rigorous oversight for grant programs. Specifically, agencies must now conduct unannounced monitoring visits for grants over $50,000, withhold funds from grantees who do not submit required progress reports, and perform more comprehensive pre-award risk assessments for potential grantees. The bill also introduces requirements for grantees to disclose organizational leadership information on their websites and mandates immediate suspension of grant agreements if a recipient is charged with a criminal offense related to the grant, with termination if convicted. Additionally, the bill requires enhanced financial scrutiny for new or unproven grantees, including reviews of financial statements, internal controls, and potential compensation discrepancies. These changes aim to prevent fraud, improve transparency, and increase accountability in state grant management.

Budget and Finance, Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0002&ssn=0&y=2025