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HF 1171

as introduced - 87th Legislature (2011 - 2012) Posted on 03/16/2011 10:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/16/2011

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5
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A bill for an act
relating to state government; imposing certain conditions on nonprofit
organizations that receive a grant or a direct appropriation from the state;
proposing coding for new law in Minnesota Statutes, chapter 16A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16A.37] RECIPIENTS OF GRANTS AND APPROPRIATIONS.
new text end

new text begin (a) This section applies to a nonprofit organization that receives a direct appropriation
of state funds or that receives a grant of state funds. As a condition of receiving the
direct appropriation or grant, the nonprofit organization must agree that during the period
covered by the appropriation or grant:
new text end

new text begin (1) no officer or employee of the organization will receive a salary from the
nonprofit organization or a related organization that exceeds 95 percent of the salary of
the governor; and
new text end

new text begin (2) if the nonprofit organization is a charitable organization, the organization must
spend at least 75 percent of its revenue for charitable purposes.
new text end

new text begin (b) For purposes of this section:
new text end

new text begin (1) "charitable organization" and "charitable purpose" have the meanings given
in section 309.50;
new text end

new text begin (2) "nonprofit organization" includes a corporation, partnership, limited partnership,
limited liability company, joint venture, cooperative, association, or trust, wherever
incorporated, organized, or registered, if the entity is organized on a nonprofit basis.
new text end

new text begin (3) "related organization" has the meaning given in section 317A.011, subdivision
18.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011, and applies to grant
agreements entered into and appropriations received after that date.
new text end