HF 1498

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 08:47am

A bill for an act
relating to state grants; preventing the state from entering into a grant agreement
with grantees disclosing certain information; requiring the attorney general to
post federal tax information filed by charitable organizations on the attorney
general's charities database Web site; amending Minnesota Statutes 2014,
sections 16B.98, subdivision 5; 309.54, subdivision 1.

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

Section 1.

Minnesota Statutes 2014, section 16B.98, subdivision 5, is amended to read:

Subd. 5.

Creation and validity of grant agreements.

(a) A grant agreement is
not valid and the state is not bound by the grant unless:

(1) the grant has been executed by the head of the agency or a delegate who is
party to the grant;

(2) the accounting system shows an encumbrance for the amount of the grant in
accordance with policy approved by the commissioner except as provided in subdivision
11; and

(3) the grant agreement includes an effective date that references either section
16C.05, subdivision 2, or 16B.98, subdivisions 5 and 7, as determined by the granting
agency.

(b) The combined grant agreement and amendments must not exceed five years
without specific, written approval by the commissioner according to established policy,
procedures, and standards, or unless the commissioner determines that a longer duration is
in the best interest of the state.

(c) A fully executed copy of the grant agreement with all amendments and other
required records relating to the grant must be kept on file at the granting agency for a time
equal to that required of grantees in subdivision 8.

(d) Grant agreements must comply with policies established by the commissioner
for minimum grant agreement standards and practices.

(e) new text begin The grant agreement must include a certification from the grantee that the grantee
has not disclosed any information on Internal Revenue Service Form 990, Schedule J, part
I, line la, for the most recent federal taxable year.
new text end

new text begin (f) new text end The attorney general may periodically review and evaluate a sample of state
agency grants to ensure compliance with applicable laws.

Sec. 2.

Minnesota Statutes 2014, section 309.54, subdivision 1, is amended to read:

Subdivision 1.

Filed documents are public records new text begin ; posting of certain records on
Web site new text end .

new text begin (a) new text end Registration statements, annual reports, and other documents required to be
filed shall become public records in the Office of the Attorney General.

new text begin (b) The attorney general shall post the Internal Revenue Service Form 990 filed by a
charitable organization under section 309.53, subdivision 2, on the Web site containing the
charities database for at least three years from the date of filing. This requirement does not
apply to a charity that is exempt from taxation under section 501(c)(3) or 501(c)(4) of the
Internal Revenue Code and is a:
new text end

new text begin (1) charitable hospital;
new text end

new text begin (2) educational or research institution; or
new text end

new text begin (3) health care program.
new text end