Bill > SF240

This bill proposes a new law that prohibits nonprofit organizations from receiving economic development or workforce development grants if they have officers or employees who are compensated more than 125 percent of the governor's salary in a 12-month period. The salary limit will be adjusted annually on January 1, taking into account increases in the governor's salary and the Consumer Price Index. Compensation is broadly defined to include salary, bonuses, stock options, employee benefits, retirement contributions, and other valuable compensation. The prohibition would apply to the fiscal year in which the high compensation occurs and the following fiscal year. Importantly, the bill does not apply to performance grants administered under a specific existing statute. The intent of this bill appears to be ensuring that state economic development funds are not used by nonprofit organizations that pay their top executives exceptionally high salaries, thereby promoting more responsible use of public funds.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0240&ssn=0&y=2025