Bill > SF981

This bill establishes comprehensive fiscal safeguards and reporting requirements for nonprofit organizations receiving state grants in Minnesota. The legislation defines new eligibility criteria for nonprofit organizations seeking state funding, including requirements that organizations submit Internal Revenue Service Form 990 for the preceding two years, limit executive compensation to no more than the governor's annual salary, and ensure no state employees or elected officials serve as voting members on their governing boards. For nonprofits receiving more than 50 percent of their revenue from state funds, additional requirements include submitting certified financial audits and undergoing background checks for officers and board members. The bill mandates detailed grant applications specifying program goals, service areas, and measurable outcomes, and requires grant recipients to provide annual reports detailing fund usage, program outcomes, and expenses. If a grant recipient is found ineligible or if there are concerns about fraud or misuse of funds, the relevant state commissioner must promptly notify legislative committee chairs. The bill also expands audit provisions, allowing state auditors to examine a grantee's financial records for up to two years before and six years after a grant agreement. These new provisions aim to increase transparency, accountability, and responsible use of state grant funds by nonprofit organizations.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0981&ssn=0&y=2025