SF 564

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/24/2023 08:19am

A bill for an act
relating to economic development; prohibiting grants to nonprofit organizations
with highly compensated officers or employees; proposing coding for new law in
Minnesota Statutes, chapter 116L.

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

Section 1.

new text begin [116L.36] GRANTS PROHIBITED TO NONPROFIT ORGANIZATIONS
WITH HIGHLY COMPENSATED OFFICERS OR EMPLOYEES.
new text end

new text begin (a) A nonprofit organization that compensates an officer or employee in an amount
greater than 125 percent of the governor's salary in a 12-month period is not eligible to
receive a grant under any economic development or workforce development program
administered or overseen by the commissioner in the first fiscal year beginning, during, or
after that 12-month period or in the following fiscal year.
new text end

new text begin (b) The salary limit in paragraph (a) must be adjusted annually on January 1. The new
limit must equal the limit for the prior year increased by any increase to the governor's salary
and the percentage increase, if any, in the Consumer Price Index for all urban consumers
from October of the second prior year to October of the immediately prior year.
new text end

new text begin (c) 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

new text begin (d) This section does not apply to performance grants administered under section
116J.8747.
new text end