Bill > SF1123

This bill introduces comprehensive new requirements for fraud reporting, grant management, and organizational transparency across Minnesota state agencies. It mandates that state employees must immediately notify law enforcement and legislative committee chairs if they suspect fraud in any agency program, and requires each state agency to prominently post an organizational chart on their website with detailed contact information for key personnel. The bill significantly strengthens grant management oversight by requiring agencies to conduct unannounced in-person monitoring visits for grants over $50,000, perform financial reconciliations before disbursing funds, and withhold payments if grantees do not submit required progress reports. Additionally, the legislation imposes new pre-award risk assessment requirements for potential grantees, including detailed financial reviews and background checks, and introduces provisions that allow for immediate suspension of grant agreements if a recipient is charged with a criminal offense related to the grant. The bill also clarifies reporting requirements for state employees who discover potential violations, changing language from "encouraged to" report to "must" report violations, and establishes potential misdemeanor charges for state employees who knowingly violate the new grant management requirements. These measures are aimed at preventing fraud, increasing accountability, and ensuring more transparent and responsible use of state grant funds.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1123&ssn=0&y=2025