1.1 	A bill for an act
1.2 	relating to state government; imposing certain conditions on nonprofit 
1.3 	organizations that receive a grant or a direct appropriation from the state;
1.4 	proposing coding for new law in Minnesota Statutes, chapter 16A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [16A.37] RECIPIENTS OF GRANTS AND APPROPRIATIONS.
1.7 	(a) This section applies to a nonprofit organization that receives a direct appropriation 
1.8 	of state funds or that receives a grant of state funds. As a condition of receiving the 
1.9 	direct appropriation or grant, the nonprofit organization must agree that during the period 
1.10 	covered by the appropriation or grant:
1.11 	(1) no officer or employee of the organization will receive a salary from the 
1.12 	nonprofit organization or a related organization that exceeds 95 percent of the salary of 
1.13 	the governor; and
1.14 	(2) if the nonprofit organization is a charitable organization, the organization must 
1.15 	spend at least 75 percent of its revenue for charitable purposes.
1.16 	(b) For purposes of this section:
1.17 	(1) "charitable organization" and "charitable purpose" have the meanings given 
1.18 	in section 309.50;
1.19 	(2) "nonprofit organization" includes a corporation, partnership, limited partnership, 
1.20 	limited liability company, joint venture, cooperative, association, or trust, wherever 
1.21 	incorporated, organized, or registered, if the entity is organized on a nonprofit basis.
1.22 	(3) "related organization" has the meaning given in section 317A.011, subdivision 
1.23 	18.

2.1 	EFFECTIVE DATE. This section is effective July 1, 2011, and applies to grant 
2.2 	agreements entered into and appropriations received after that date.