MN HF754

Establishes a Director of Grants Management and Oversight position within the Department of Administration, appointed by the commissioner by October 1, 2025, requiring demonstrated experience in auditing and legal compliance related to grantmaking

Transfers grants governance authority from the commissioner to the new director, who will oversee implementation of grants management law and policy, ensure legal compliance, and review agency grant programs for compliance

Requires granting agencies to use director-approved technology systems, conduct in-person grantee site visits, collect financial documentation (including 5 years of balance sheets for grants of $500,000+), and submit annual reports on grant activities

Mandates agencies withhold payments from grantees who fail to submit required progress reports or financial reconciliations, and prohibits final payment until comprehensive expense reconciliation is received

Changes state employee reporting of grant law violations from voluntary ("encouraged to") to mandatory ("must report") to the director or legislative auditor, with whistleblower protections