SF 2364

as introduced - 91st Legislature (2019 - 2020) Posted on 03/15/2019 09:09am

A bill for an act
relating to state government; precluding grants to nonprofits with highly paid
officers or employees; amending Minnesota Statutes 2018, section 16B.97, by
adding subdivisions.

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

Section 1.

Minnesota Statutes 2018, section 16B.97, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Grants prohibited to nonprofit organizations with highly compensated
officers or employees. new text end

new text begin A tax-exempt organization under section 501(c)(3) of the Internal
Revenue Code that compensates an officer or employee in an amount greater than $500,000
in a 12-month period is not eligible to receive a grant under any program or from any state
agency in the first fiscal year beginning during or after that 12-month period or in the
following fiscal year. Compensation for purposes of this section includes salary, bonuses,
the present value of stock options, the value of employee benefits, employer contributions
to retirement or deferred compensation plans on behalf of the officer or employee, and any
other compensation or benefit of value.
new text end

Sec. 2.

Minnesota Statutes 2018, section 16B.97, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Disclosure after appropriation to nonprofit organizations with highly
compensated officers or employees. new text end

new text begin If an amount is appropriated by law to an organization
that is tax-exempt under section 501(c)(3) of the Internal Revenue Code, the organization
must notify the commissioner of management and budget within three months of enactment
of the appropriation if the organization has compensated or will compensate an officer or
employee more than $500,000 in any 12-month period during the time beginning 12 months
before the effective date of the appropriation and ending 12 months after the effective date
of the appropriation. The commissioner of management and budget must report any
notification received under this subdivision to the chairs and ranking minority members of
the committees in the house of representatives and the senate with jurisdiction over finance.
Compensation for purposes of this section includes salary, bonuses, the present value of
stock options, the value of employee benefits, employer contributions to retirement or
deferred compensation plans on behalf of the officer or employee, and any other
compensation or benefit of value.
new text end