HF 3093 Minnesota House · 2025-2026 Regular Session

Minimum eligibility criteria enhanced for state grants, and sworn certification of compliance required.

HF 3093 requires state agencies to verify that organizations receiving state loans or grants over $50,000 meet specific financial and operational standards before funding is approved. It mandates applicants to submit an oath certifying compliance with minimum requirements (Section 16C.285), and agencies must conduct a risk assessment reviewing past performance, financial documents (like tax returns or Form 990), good standing with the Secretary of State, and certification that principals have no recent felony financial convictions. This applies to both nonprofit and for-profit recipients of state funds exceeding $50,000. The bill adds these verification steps to existing state funding processes without creating new funding or altering eligibility criteria.

Bill status in committee 1 of 4 stages cleared

Introduction

Apr 2025

Committee Review

Floor Vote

Governor

Introduced Apr 3, 2025 Last action May 11, 2026

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What changed between versions

Introduction → 1st Engrossment · 6 edits · Apr 7, 2026

MODERATE

This bill updates the state's grant regulations to enhance eligibility criteria and verification processes for recipients of grants over $50,000. It shifts the primary focus from loan requirements to grant requirements, introducing stricter background checks, financial compliance standards, and definitions of related entities to prevent fraud. The changes also establish a formal process for agencies to deny grants when risks are identified and provide a mechanism for legislative review of legislatively named grants that are not awarded.

Scope change

The bill's scope was narrowed from applying to both state loans and grants to applying specifically to state grants and business subsidies of $50,000 or more.

SCOPE

The bill title and text were changed to apply only to grants and business subsidies, removing the previous requirement that applicants for state loans submit sworn statements.

DEFINITION

A new definition for 'related entity' was added to include firms controlled by potential grantees, subsidiaries, and entities sharing significant characteristics like ownership, addresses, or employees.

ELIGIBILITY

New minimum eligibility criteria require grantees to be in good standing with the Secretary of State, possess valid tax IDs, be compliant with labor laws, and have no recent felony convictions for financial crimes.

REQUIREMENT

Grantees must now submit a sworn certification under oath confirming compliance with all new eligibility criteria before receiving a grant.

ENFORCEMENT

Agencies are authorized to deny grants or terminate agreements if a grantee fails to certify compliance or makes a false statement under oath.

TIMELINE

A new provision allows agencies to delay awarding legislatively named grants until the next legislative session if they cannot verify the grantee's ability to perform the work.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 7, 2026

Lower · Passed

Committee report, to adopt as amended and re-refer to Ways and Means

lower

Apr 3, 2025

Introduced

Introduction and first reading, referred to State Government Finance and Policy

lower

1 primary · 4 co-sponsors