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HF 3684

Veterans affairs department standards established for legislatively directed competitive and direct grants, and report required.

2025-2026 Regular Session Introduced by Matt Bliss and 1 co-sponsor

Sets standardized, transparent rules for MDVA grants, including eligibility, scoring, reporting, and oversight to ensure funds serve Minnesota veterans and families.

Referred to Agriculture, Veterans, Broadband, and Rural Development
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Bill Summary · HF 3684

Summary of HF 3684 (2025-2026) – Minnesota

Purpose and intent

HF 3684 seeks to establish standardized requirements for legislatively directed competitive and direct grants issued by the Minnesota Department of Veterans Affairs (MDVA). The bill aims to ensure grant eligibility, appropriate use of funds, transparent reporting, and oversight. It also creates a clear framework for how grant amounts are determined and how abuses or fraud would be addressed, with a reporting mandate to the Legislature beginning in 2027.

Key provisions and changes

  • Definitions and eligibility (Section 1, Subd. 1–2):

    • Defines terms such as active service member, dependent child, immediate family member, and veteran.
    • Sets eligibility criteria for grant recipients:
    • Minnesota-based nonprofit organization
    • At least five years of operation
    • In good standing with the Minnesota Attorney General
    • Has a current IRS Form 990 on file
    • Some MDVA grant programs listed (related to other statutes) are exempt from these requirements.

  • Use of grant funds (Subd. 3):

    • Funds may be used to provide services to:
    • Minnesota veterans
    • Active service members
    • Immediate family members of Minnesota veterans or active service members
    • Immediate family members of a Minnesota veteran who died in the line of duty
    • If resources are insufficient, grantees must prioritize veterans with a service-connected disability.

  • Grant application scoring (Subd. 4):

    • MDVA must develop a scoring system evaluating applications based on demonstrated history of serving veterans.
    • The scoring system must include measurable outcomes for veterans previously served.

  • Grant amounts (Subd. 5):

    • Grant amounts are determined by the scoring system results.
    • Applicants cannot have the request for a designated grant amount used as a factor to influence the awarded amount.

  • Suspension and withhold authority (Subd. 6):

    • MDVA may suspend or withhold grant funds if:
    • Fraud is suspected or proven
    • Grantee is under criminal investigation
    • Grantee actions bring the state or MDVA into disrepute
    • Grantee cannot deliver required services

  • Reporting requirements (Subd. 7):

    • Beginning in 2027, grantees must annually (by February 15) report:
    • Purpose and amount of the grant
    • Previous grant amounts received
    • Other state/federal grants received in the most recent fiscal year
    • Number served (veterans, active service members, and immediate family)
    • Number who completed programming and criteria for success
    • Grantee’s charitable giving ratio
    • The MDVA may require additional reporting per grant agreement.
    • By March 1, 2027, the MDVA must report aggregated grantee data to legislative chairs and ranking minority members.

  • Administrative costs (Subd. 8):

    • The commissioner may retain up to 5% of the appropriated amount to fund administrative and compliance monitoring costs.

  • Interaction with other law (Subd. 9):

    • Grants under this section are in addition to, not a replacement for, other state grants management requirements (sections 16B.97–16B.991).

Who is affected

  • Eligible grantees: Minnesota-based nonprofits with at least five years of operation, good standing, and current IRS Form 990.
  • MDVA and the Minnesota Legislature: oversight, reporting, and performance measurement responsibilities.
  • Minnesota veterans, active service members, and their immediate family members: potential beneficiaries of funded programs, with prioritization for those with service-connected disabilities when resources are limited.

Procedural and timeline aspects

  • Effective reporting timeline starts in 2027:
    • Grantees submit annual reports by February 15.
    • MDVA compiles and reports aggregated data to lawmakers by March 1 of each year (covering the prior year).
  • Administrative cap: MDVA may retain up to 5% of grant funds for administration.
  • Grant review and award process to be guided by a new statewide scoring system (Subd. 4).

Notes

  • The bill text indicates an emphasis on accountability, outcomes, and transparency in the use of legislatively directed grants by MDVA.
  • It does not alter all existing grant programs but sets new standards for those designated under this section, with certain exemptions specified.

Compiled from official sources — confirm details with the bill’s official record.

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