as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
A bill for an act
relating to state government; imposing certain
conditions on nonprofit organizations that receive a
grant or a direct appropriation from the state;
proposing coding for new law in Minnesota Statutes,
chapter 16A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) This section applies to a nonprofit organization that
receives a direct appropriation of state funds or that receives
a grant of state funds. As a condition of receiving the direct
appropriation or grant, the nonprofit organization must agree
that during the period covered by the appropriation or grant:
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(1) no officer or employee of the organization will receive
a salary from the nonprofit organization or a related
organization that exceeds the salary of the governor; and
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(2) if the nonprofit organization is a charitable
organization, the organization must spend at least 75 percent of
its revenue for charitable purposes.
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(b) For purposes of this section:
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(1) "charitable organization" and "charitable purpose" have
the meanings given in section 309.50;
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(2) "nonprofit organization" includes a corporation,
partnership, limited partnership, limited liability company,
joint venture, cooperative, association, or trust, wherever
incorporated, organized, or registered, if the entity is
organized on a nonprofit basis.
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(3) "related organization" has the meaning given in section
317A.011, subdivision 18.
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Section 1 is effective July 1, 2005, and applies to grant
agreements entered into and appropriations received after that
date.
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