1.1 	A bill for an act
1.2 	relating to state government; imposing certain
1.3 	disclosure requirements on nonprofit organizations
1.4 	that receive a grant or a direct appropriation from
1.5 	the state and on health maintenance organizations
1.6 	contracting with the state; proposing coding for new
1.7 	law in Minnesota Statutes, chapter 16A.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. [16A.371] RECIPIENTS OF STATE GRANTS AND
1.10 	APPROPRIATIONS.
1.11 	(a) This section applies to a nonprofit organization that
1.12 	receives a direct appropriation of state funds or that receives
1.13 	a grant of state funds, if during the period covered by the
1.14 	appropriation or grant an officer or employee of the
1.15 	organization will receive a salary from the nonprofit
1.16 	organization or a related organization that exceeds the salary
1.17 	of the governor.  As a condition of receiving the direct
1.18 	appropriation or grant, a nonprofit organization covered by this
1.19 	section must agree that the organization will submit to the
1.20 	attorney general, during each year that the organization
1.21 	receives a direct appropriation or grant of state funds, a list
1.22 	of the total compensation of the three highest paid directors,
1.23 	officers, or employees of the organization.  The attorney
1.24 	general must make filings under this paragraph public in the
1.25 	same manner as annual reports filed under section 309.53.
1.26 	(b) This section also applies to a health maintenance
2.1 	organization, as defined in section 62D.02, subdivision 4, that
2.2 	has a contract to provide services to the state or to state
2.3 	employees, if an officer or employee of the organization
2.4 	receives a salary that exceeds the salary of the governor.  As a
2.5 	condition of the contract, the organization must agree that any
2.6 	written marketing materials directed to potential enrollees will
2.7 	include a list of the total compensation of the three highest
2.8 	paid directors, officers, or employees of the organization.
2.9 	(c) For purposes of this section:
2.10 	(1) "contribution" and "solicitation" have the meanings
2.11 	given in section 309.50;
2.12 	(2) "nonprofit organization" includes a corporation,
2.13 	partnership, limited partnership, limited liability company,
2.14 	joint venture, cooperative, association, or trust, wherever
2.15 	incorporated, organized, or registered, if the organization is
2.16 	organized on a nonprofit basis;
2.17 	(3) "related organization" has the meaning defined in
2.18 	section 317A.011, subdivision 18; and 
2.19 	(4) "total compensation" means salaries, fees, bonuses,
2.20 	fringe benefits, severance payments, and deferred compensation.

2.21 	Sec. 2. EFFECTIVE DATE.
 2.22 	Section 1 is effective July 1, 2005, and applies to grant
2.23 	agreements entered into and to appropriations received after
2.24 	that date.