HF 961

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; imposing certain
disclosure requirements on nonprofit organizations
that receive a grant or a direct appropriation from
the state and on health maintenance organizations
contracting with 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.371] RECIPIENTS OF STATE 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, if during the period covered by the
appropriation or grant an officer or employee of the
organization will receive a salary from the nonprofit
organization or a related organization that exceeds the salary
of the governor. As a condition of receiving the direct
appropriation or grant, a nonprofit organization covered by this
section must agree that the organization will submit to the
attorney general, during each year that the organization
receives a direct appropriation or grant of state funds, a list
of the total compensation of the three highest paid directors,
officers, or employees of the organization. The attorney
general must make filings under this paragraph public in the
same manner as annual reports filed under section 309.53.
new text end

new text begin (b) This section also applies to a health maintenance
organization, as defined in section 62D.02, subdivision 4, that
has a contract to provide services to the state or to state
employees, if an officer or employee of the organization
receives a salary that exceeds the salary of the governor. As a
condition of the contract, the organization must agree that any
written marketing materials directed to potential enrollees will
include a list of the total compensation of the three highest
paid directors, officers, or employees of the organization.
new text end

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

new text begin (1) "contribution" and "solicitation" 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 organization is
organized on a nonprofit basis;
new text end

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

new text begin (4) "total compensation" means salaries, fees, bonuses,
fringe benefits, severance payments, and deferred compensation.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective July 1, 2005, and applies to grant
agreements entered into and to appropriations received after
that date.
new text end