as introduced - 87th Legislature (2011 - 2012) Posted on 03/16/2011 10:00am
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:
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(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:
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(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
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(2) if the nonprofit organization is a charitable organization, the organization must
spend at least 75 percent of its revenue for charitable purposes.
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(b) For purposes of this section:
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(1) "charitable organization" and "charitable purpose" have the meanings given
in section 309.50;
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(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.
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(3) "related organization" has the meaning given in section 317A.011, subdivision
18.
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This section is effective July 1, 2011, and applies to grant
agreements entered into and appropriations received after that date.
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