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Committee reviews grants-management changes including debarment authority and appeals timeline; amendment adopted
Summary
Senate File 2578 would expand administrationauthority over grant suspensions and debarments to include potential grantees, streamline grant-denial appeals, allow reasonable administrative costs for grantees, and clarify capital-grant rules for nonprofits; committee adopted an A-1 amendment and laid the bill over.
Senate File 2578, a Department of Administration bill aimed at modifying grant-making statutes, was presented Thursday to the Minnesota Senate State and Local Government Committee. The committee adopted an A-1 amendment and laid the bill over for possible inclusion in a future omnibus bill.
Senator Jeong introduced the bill and said it would provide grantmakers across state agencies with clearer authority and processes. Stacey Christiansen, deputy commissioner at the Department of Administration, testified the changes are part of the governors anti-fraud package and would, among other things, expand suspension and debarment authority to potential grantees, allowing agencies to block entities convicted of certain serious crimes from receiving state grants in the future.
Christiansen told the committee the causes for debarment in the bill include offenses such as embezzlement, theft, bribery and falsification of records. The bill would also narrow mandatory reporting obligations by clarifying required reports relate specifically to violations involving grants, laws or rules.
On appeals, Christiansen said the bill streamlines timelines so agencies can award funds to alternate grantees more promptly when pre-award risk assessments reveal unresolved concerns. The bill updates state expectations around grantee administrative costs so those costs can be covered when reasonable and necessary, reflecting federal standards. Finally, Christiansen said the bill clarifies that general-fund capital grants to nonprofits follow the capital project rules in chapter 16A, aligning practice with the way agencies have administered recent general-fund capital grants.
Senator Kuran and other members praised the practical steps in the bill and emphasized the need for agencies to follow processes rigorously. The A-1 amendment was moved and adopted by voice vote. The committee laid the bill over for possible inclusion in an omnibus measure.
