1.1                          A bill for an act 
  1.2             relating to community development; providing 
  1.3             management and technical assistance to nonprofit 
  1.4             organizations; appropriating money; proposing coding 
  1.5             for new law in Minnesota Statutes, chapter 116J. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116J.621] [NONPROFIT ORGANIZATIONS; CAPACITY 
  1.8   BUILDING GRANTS.] 
  1.9      Subdivision 1.  [GRANTS BY COMMISSIONER.] The commissioner 
  1.10  may make grants to community foundations in the metropolitan 
  1.11  area, as defined in section 473.121, subdivision 2, that already 
  1.12  provide over $500,000 per year in grants to nonprofit 
  1.13  organizations, and to the six regional organizations selected 
  1.14  under section 116J.415, subdivision 3.  Grants must be allocated 
  1.15  in proportion to the number of nonprofits with budgets under 
  1.16  $2,000,000 in the grantee's area of service compared to the 
  1.17  number of such nonprofits in the state.  The metropolitan 
  1.18  grantees shall be selected on a request for proposal basis 
  1.19  designed to select grantees best suited to make the capacity 
  1.20  building grants described in subdivision 2.  The grants must be 
  1.21  used to provide grants to area nonprofit organizations for 
  1.22  capacity building.  
  1.23     Subd. 2.  [CAPACITY BUILDING GRANTS.] Foundations and 
  1.24  organizations receiving grants from the commissioner under 
  1.25  subdivision 1 must establish a competitive and open process for 
  2.1   grants to nonprofit organizations for capacity building and to 
  2.2   improve the management of the organization.  Grants may be in an 
  2.3   amount from $5,000 to $35,000.  Grants may be used for, among 
  2.4   other things: 
  2.5      (1) financial system development; 
  2.6      (2) board training and development; 
  2.7      (3) strategic planning; 
  2.8      (4) technology planning and upgrades; 
  2.9      (5) organizational development; and 
  2.10     (6) legal compliance review. 
  2.11     Sec. 2.  [APPROPRIATION; NONPROFIT ORGANIZATIONS GRANTS.] 
  2.12     $....... is appropriated from the general fund in fiscal 
  2.13  year 2002 to the commissioner of trade and economic development 
  2.14  for the purpose of section 1.  The commissioner shall select no 
  2.15  more than two community foundations to receive grants from the 
  2.16  appropriation in addition to grants to regional organizations.