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

1.8 	Section 1. [16A.37] RECIPIENTS OF GRANTS AND
1.9 	APPROPRIATIONS.
1.10 	(a) This section applies to a nonprofit organization that
1.11 	receives a direct appropriation of state funds or that receives
1.12 	a grant of state funds.  As a condition of receiving the direct
1.13 	appropriation or grant, the nonprofit organization must agree
1.14 	that during the period covered by the appropriation or grant:
1.15 	(1) no officer or employee of the organization will receive
1.16 	a salary from the nonprofit organization or a related
1.17 	organization that exceeds the salary of the governor; and 
1.18 	(2) if the nonprofit organization is a charitable
1.19 	organization, the organization must spend at least 75 percent of
1.20 	its revenue for charitable purposes.
1.21 	(b) For purposes of this section:
1.22 	(1) "charitable organization" and "charitable purpose" have
1.23 	the meanings given in section 309.50;
1.24 	(2) "nonprofit organization" includes a corporation,
1.25 	partnership, limited partnership, limited liability company,
1.26 	joint venture, cooperative, association, or trust, wherever
2.1 	incorporated, organized, or registered, if the entity is
2.2 	organized on a nonprofit basis.
2.3 	(3) "related organization" has the meaning given in section
2.4 	317A.011, subdivision 18.

2.5 	Sec. 2. EFFECTIVE DATE.
 2.6 	Section 1 is effective July 1, 2005, and applies to grant
2.7 	agreements entered into and appropriations received after that
2.8 	date.