The commissioner of management and budget, upon the written request of an employee of the board, may deduct from an employee's salary or wages the amount requested for payment to a nonprofit state college or university foundation meeting the requirements in subdivision 2. The commissioner shall issue a warrant for the deducted amount to the nonprofit foundation. The Penny Fellowship and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student Association shall be considered nonprofit state college and university foundations for purposes of this section.
A nonprofit state college or university foundation that desires to receive contributions through payroll deductions shall apply to the board for approval to participate in the payroll deduction plan. The board may approve the application for participation if the foundation:
(1) is tax exempt under section 501(c)3 of the Internal Revenue Code of 1986, as amended;
(2) qualifies for tax-deductible contributions under section 170 of the Internal Revenue Code of 1986, as amended;
(3) secures funding solely for distribution to a state college or university or for distribution to students in the form of scholarships; and
(4) has been incorporated according to chapter 317A for at least one calendar year before the date it applies to the board for approval.