This bill proposes new regulations regarding the eligibility of nonprofit organizations for grants under economic development and workforce development programs in Minnesota. Specifically, it prohibits grants to any nonprofit organization that compensates an officer or employee more than 125 percent of the governor's salary within a 12-month period. This restriction will apply for the fiscal year in which the compensation exceeds the limit and the following fiscal year. Additionally, the bill mandates that the salary limit be adjusted annually based on changes to the governor's salary and the Consumer Price Index.

The bill also clarifies what constitutes compensation, including salary, bonuses, stock options, employee benefits, and retirement contributions. However, it specifies that these provisions do not apply to performance grants administered under a separate section of the law. Overall, the bill aims to ensure that public funds are not allocated to organizations with excessively compensated leadership, promoting accountability and responsible use of economic development resources.