1.1 A bill for an act
1.2 relating to education; modifying requirements for grants from the Department of
1.3 Education; proposing coding for new law in Minnesota Statutes, chapter 127A.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [127A.205] EDUCATION GRANT TERMINATION.
1.6 (a) The commissioner of education must not enter into a grant agreement, or must
1.7terminate a grant agreement, if any of the following conditions apply:
1.8 (1) the recipient is a nonprofit organization that is required to file a Form 990 or Form
1.9990-EZ with the Internal Revenue Service, but has failed to do so. If the organization has
1.10not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the
1.11organization must provide the department its most recent financial statements or an audit
1.12approved within the previous 12 months;
1.13 (2) the recipient is required to file a report under section 309.53 and has not filed the
1.14report;
1.15 (3) the recipient fails to file an annual renewal and is administratively dissolved by the
1.16secretary of state;
1.17 (4) the recipient fails to maintain tax-exempt status under state or federal law;
1.18 (5) the recipient's administrative costs exceed 25 percent of its revenue;
1.19 (6) the salary and value of all other forms of compensation of an employee of the recipient
1.20exceeds 110 percent of the compensation of the governor as established under section
1.2115A.082; or
1Section 1.
REVISOR CR/LJ 25-0511503/20/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2786
NINETY-FOURTH SESSION
Authored by Bennett, Kresha, Scott, Bakeberg, Schwartz and others03/26/2025
The bill was read for the first time and referred to the Committee on Education Finance 2.1 (7) the commissioner knows, or has reason to know, that the recipient is the subject of
2.2an investigation or allegation of fraud, waste, or abuse, as defined in section 127A.21.
2.3 (b) This section does not apply to a grant to a political subdivision, including a school
2.4district, a cooperative unit under section 123A.24, subdivision 2, or a charter school.
2.5 EFFECTIVE DATE.This section is effective the day following final enactment.
2Section 1.
REVISOR CR/LJ 25-0511503/20/25