MN HF1397

Caps total annual compensation for executives with primary duties in executive, managerial, or administrative roles at nonprofit hospitals and affiliated medical entities at the current annual salary and expense allowance of the President of the United States (per U.S. Code, title 3, section 102).

Limits severance and postemployment payments for former executives at covered entities to the same annual presidential salary cap, with pro rata restrictions when multiple entities contribute to compensation.

Requires boards of directors to submit annual reports to the attorney general within three months of fiscal year-end, including names, titles, and detailed compensation breakdowns for the ten highest-paid executives and five highest-paid former employees receiving severance.

Authorizes the attorney general or state taxpayers to pursue civil penalties up to $500,000 per violation, revocation of tax-exempt status, and equitable relief, with each individual receiving excessive compensation in any year constituting a separate violation.

Exempts medical and health care professionals whose primary duties are at least 50 percent devoted to medical services, research, direct patient care, or other non-administrative work from the compensation limits.