HF 3672 Minnesota House · 2025-2026 Regular Session

Recommendations of the legislative auditor regarding agency grant, inventory, and debt collection practices implemented.

HF 3672 requires Minnesota state agencies to implement recommendations from the Legislative Auditor related to grant management, inventory tracking, and debt collection. It mandates annual inventory training for agency staff handling state property (Sec. 4), requires agency commissioners to report annually on implementing auditor recommendations (Sec. 2), and clarifies oversight for state grant programs (Sec. 3). The bill directly affects all executive state agencies managing grants, assets, or debt collection. Key provisions include new penalties for withholding auditor information (Sec. 1), annual training requirements, and annual reporting on unaddressed recommendations. This is a procedural bill focused on strengthening accountability for existing state financial practices.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 25, 2026 Last action Apr 7, 2026

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What changed between versions

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

MODERATE

This bill updates Minnesota's grant and debt collection laws to improve oversight of state funds and ensure better debt recovery. Key changes include narrowing the definition of grants subject to oversight to exclude certain revenue payments, adding a specific exemption for the Department of Revenue, and requiring a focus on high-risk programs during audits. The bill also modifies training requirements for debt collectors and extends the effective date of several new provisions to January or July 2027.

Scope change

The scope of grant oversight was narrowed by excluding payments made by the commissioner of revenue under chapter 290C and general obligation grants, while adding a requirement to focus audit reviews on high-risk programs.

REQUIREMENT

Grant oversight requirements now apply only to transfers made through state agencies to nongovernmental entities, excluding general obligation grants and specific revenue department payments.

A new exemption was added stating that payments made by the commissioner of revenue under chapter 290C are not subject to the bill's grant management requirements.

The Legislative Auditor's review of grant practices must now specifically focus on high-risk grant programs and grantees.

Training for state employees collecting debts must now be developed jointly by the commissioners of Management and Budget and the Department of Revenue.

A provision allowing for the dismissal of public officials who knowingly submit documents violating privacy laws to the Legislative Auditor was removed.

Technical assistance provided to agencies failing to implement auditor recommendations is now explicitly limited by available resources.

TIMELINE

New sections regarding debt collection training, grant oversight exemptions, and reporting summaries are delayed until effective dates in January or July 2027.

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Full legislative history

Actions timeline

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Key actions

Committee

Apr 7, 2026

Lower · Passed

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

lower

Feb 25, 2026

Introduced

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

lower

1 primary · 1 co-sponsor