SF 832

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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:

Section 1.

new text begin [16A.37] RECIPIENTS OF 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. 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:
new text end

new text begin (1) no 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; and
new text end

new text begin (2) if the nonprofit organization is a charitable
organization, the organization must spend at least 75 percent of
its revenue for charitable purposes.
new text end

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

new text begin (1) "charitable organization" and "charitable purpose" 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 entity is
organized on a nonprofit basis.
new text end

new text begin (3) "related organization" has the meaning given in section
317A.011, subdivision 18.
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 appropriations received after that
date.
new text end