as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; classifying data; providing 1.3 procedures for issuance of warrant for certain tax 1.4 return information; changing procedures for 1.5 disposition of seized contraband; defining certain 1.6 property as contraband; changing and providing civil 1.7 penalties; providing for a criminal penalty; 1.8 appropriating money; amending Minnesota Statutes 2000, 1.9 sections 16D.08, subdivision 2; 270A.11; 270B.02, 1.10 subdivisions 2 and 3; 270B.03, subdivision 6; 270B.16; 1.11 289A.55, subdivision 9; 289A.60, subdivisions 1, 2, 7, 1.12 and by adding a subdivision; 296A.24, subdivisions 1 1.13 and 2; 297A.91; 297E.16, subdivisions 1 and 2; 1.14 297F.20, subdivision 3; 297F.21, subdivisions 1, 2, 1.15 and 3; 297G.20, subdivisions 3 and 4; and 626.11; 1.16 repealing Minnesota Statutes 2000, sections 289A.60, 1.17 subdivision 3; 296A.24, subdivision 3; 297E.16, 1.18 subdivision 3; 297F.21, subdivision 4; and 297G.20, 1.19 subdivision 5. 1.20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.21 ARTICLE 1 1.22 REVENUE DATA 1.23 Section 1. Minnesota Statutes 2000, section 270A.11, is 1.24 amended to read: 1.25 270A.11 [DATA PRIVACY.] 1.26 Private and confidential data on individuals may be 1.27 exchanged among the department, the taxpayer's rights advocate, 1.28 the attorney general, the claimant agency, and the debtor as 1.29 necessary to accomplish and effectuate the intent of sections 1.30 270A.01 to 270A.12, as provided by section 13.05, subdivision 4, 1.31 clause (b). The department may disclose to the claimant agency 1.32 only the debtor's name, address, social security number and the 2.1 amount of the refund, and in the case of a joint return, the 2.2 name of the debtor's spouse. Any person employed by, or 2.3 formerly employed by, a claimant agency who discloses any such 2.4 information for any other purpose, shall be subject to the civil 2.5 and criminal penalties of section 270B.18. Data collected by 2.6 the department from claimant agencies relating to claims filed 2.7 under this chapter are private data on individuals. 2.8 [EFFECTIVE DATE.] This section is effective the day 2.9 following final enactment. 2.10 Sec. 2. Minnesota Statutes 2000, section 270B.02, 2.11 subdivision 2, is amended to read: 2.12 Subd. 2. [PROTECTED NONPUBLIC DATA.] The following are 2.13 protected nonpublic data as defined in section 13.02, 2.14 subdivision 13: 2.15 (1) criteria for determining which computer processed 2.16 returns are selected for audit; 2.17 (2) criteria for determining which returns are selected for 2.18 an in-depth audit;and2.19 (3) criteria for determining which accounts receivable 2.20 balances below a stated amount are written off or canceled; and 2.21 (4) criteria or information used in determining which 2.22 alleged criminal violations of any law administered by the 2.23 commissioner are selected for criminal investigation. 2.24 [EFFECTIVE DATE.] This section is effective the day 2.25 following final enactment. 2.26 Sec. 3. Minnesota Statutes 2000, section 270B.02, 2.27 subdivision 3, is amended to read: 2.28 Subd. 3. [CONFIDENTIAL DATA ON INDIVIDUALS; PROTECTED 2.29 NONPUBLIC DATA.] (a) Except as provided in paragraph (b), the 2.30 name or existence of an informer, informer letters, and other 2.31unsoliciteddata, in whatever form, given to the department of 2.32 revenue by a person, other than the data subject, who informs 2.33 that a specific taxpayer is not or may not be in compliance with 2.34 tax laws, or nontax laws administered by the department of 2.35 revenue, including laws not listed in section 270B.01, 2.36 subdivision 8, are confidential data on individuals or protected 3.1 nonpublic data as defined in section 13.02, subdivisions 3 and 3.2 13. 3.3 (b) Data under paragraph (a) may be disclosed with the 3.4 consent of the informer or upon a written finding by a court 3.5 that the information provided by the informer was false and that 3.6 there is evidence that the information was provided in bad 3.7 faith. This subdivision does not alter disclosure 3.8 responsibilities or obligations under the rules of criminal 3.9 procedure. 3.10 [EFFECTIVE DATE.] This section is effective the day 3.11 following final enactment. 3.12 Sec. 4. Minnesota Statutes 2000, section 270B.03, 3.13 subdivision 6, is amended to read: 3.14 Subd. 6. [INVESTIGATIVE DATA.] For purposes of any law 3.15 administered by the department of revenue, including laws not 3.16 listed in section 270B.01, subdivision 8, investigative data 3.17 collected or created by the department of revenue in order to 3.18 prepare a case against a person, whether known or unknown, for 3.19 the commission of a crime is confidential or protected nonpublic 3.20 during an investigation. When the investigation becomes 3.21 inactive, as defined in section 13.82, subdivision 5, the 3.22classifications otherwise applicable under any other laws become3.23effectivedata is private or nonpublic. 3.24 [EFFECTIVE DATE.] This section is effective the day 3.25 following final enactment. 3.26 Sec. 5. Minnesota Statutes 2000, section 270B.16, is 3.27 amended to read: 3.28 270B.16 [DISCOVERY OF REVENUE DATA.] 3.29 Notwithstanding any law to the contrary, data collected by 3.30 the department of revenue are not subject to discovery or 3.31 subpoena in a legal action, other than an action or proceeding 3.32 in connection with tax administration, unless disclosure of the 3.33 data is authorized under this chapter or is made in response to 3.34 a duly issued search warrant accompanied by a separate judicial 3.35 order as required by section 626.11, subdivision 2. 3.36 [EFFECTIVE DATE.] This section is effective the day 4.1 following final enactment. 4.2 Sec. 6. Minnesota Statutes 2000, section 626.11, is 4.3 amended to read: 4.4 626.11 [ISSUANCE OF WARRANT.] 4.5 Subdivision 1. [PROCEDURE.] If the judge is satisfied of 4.6 the existence of the grounds of the application, or that there 4.7 is probable cause to believe their existence, the judge must 4.8 issue a signed search warrant, naming the judge's judicial 4.9 office, to a peace officer in the judge's county, to an agent of 4.10 the bureau of criminal apprehension, or to an agent of the 4.11 division of alcohol and gambling enforcement who is a licensed 4.12 peace officer as defined in section 626.84, subdivision 1, 4.13 paragraph (c). The warrant shall direct the officer or agent to 4.14 search the person or place named for the property or things 4.15 specified, and to retain the property or things in the officer's 4.16 or agent's custody subject to order of the court issuing the 4.17 warrant. 4.18 Subd. 2. [EXCEPTION FOR TAX RETURN INFORMATION.] No search 4.19 warrant that relates to a nontax criminal investigation and 4.20 seeks tax returns or return information maintained by the 4.21 department of revenue and classified as not public data under 4.22 sections 270B.01 to 270B.19 may be issued unless the judge 4.23 determines at the time the warrant is applied for that the 4.24 following factors are present: 4.25 (1) there is reasonable cause to believe, based upon 4.26 information believed to be reliable, that a specific criminal 4.27 act has been committed; 4.28 (2) there is reasonable cause to believe that the return or 4.29 return information is or may be relevant to a matter relating to 4.30 the commission of that act; 4.31 (3) the return or return information is sought exclusively 4.32 for use in a state criminal investigation or proceeding 4.33 concerning that act; and 4.34 (4) the information sought to be disclosed cannot 4.35 reasonably be obtained, under the circumstances, from any other 4.36 source. 5.1 The determination of the judge shall be stated in a court 5.2 order separate from the search warrant, a copy of which must be 5.3 attached to the warrant at the time of issuance. 5.4 [EFFECTIVE DATE.] This section is effective the day 5.5 following final enactment. 5.6 ARTICLE 2 5.7 SEIZURES OF CONTRABAND 5.8 Section 1. Minnesota Statutes 2000, section 296A.24, 5.9 subdivision 1, is amended to read: 5.10 Subdivision 1. [SEIZURE.] The commissioner or authorized 5.11 agents may seize gasoline or special fuel being transported for 5.12 delivery in violation of section 296A.03, subdivision 1, and any 5.13 vehicle or other method of conveyance used for transporting the 5.14 gasoline or special fuel. Any untaxed motor vehicle fuel that 5.15 is received by a person other than a licensee is subject to 5.16 seizure along with the vehicle or other means of transportation 5.17 used to transport the motor vehicle fuel. Any motor vehicle 5.18 fuel, along with the transporting vehicle, brought into the 5.19 state of Minnesota by a transporter for use, distribution, 5.20 storage, or sale that is not supported by a manifest, bill of 5.21 lading, or invoice, reflecting the licensed distributor 5.22 responsible for the tax and/or fees is subject to seizure by the 5.23 Minnesota department of revenue. Property seized under this 5.24 subdivision is subject to forfeiture as provided insubdivisions5.25 subdivision 2and 3. 5.26 [EFFECTIVE DATE.] This section is effective for seizures 5.27 made on or after July 1, 2001. 5.28 Sec. 2. Minnesota Statutes 2000, section 296A.24, 5.29 subdivision 2, is amended to read: 5.30 Subd. 2. [DISPOSITION OF SEIZED PROPERTY.] (a) Within ten 5.31 days after the seizureof gasoline or special fuel, the person 5.32 making the seizure shalldeliverserve by certified mail an 5.33 inventory of the vehicle or property seizedtoon the person 5.34 from whom the seizure was made, if known, and on any person 5.35 known or believed to have any right, title, interest, or lien on 5.36 the vehicle or property, at the last known address, and file a 6.1 copy withthe office ofthe commissioner. The notice must 6.2 include an explanation of the right to demand a judicial 6.3 forfeiture determination. 6.4 (b) Withinten60 days after the date of service of the 6.5 inventory, which is the date of mailing, the person from whom 6.6 the vehicle or property was seized or any person claiming an 6.7 interest inthe propertyit may filewith the commissionera 6.8 demand for a judicial determination of whether the vehicle or 6.9 property was lawfully subject to seizure and forfeiture.The6.10commissioner, within 60 days of demand for a judicial6.11determination, shall begin an action in the district court of6.12the county where the seizure was made to determine the issue of6.13forfeiture.6.14(b) The action must be brought in the name of the state and6.15prosecuted by the county attorney or by the attorney6.16general.The demand must be in the form of a civil complaint 6.17 and must be filed with the court administrator in the county in 6.18 which the seizure occurred, together with proof of service of a 6.19 copy of the complaint on the commissioner of revenue, and the 6.20 standard filing fee for civil actions unless the petitioner has 6.21 the right to sue in forma pauperis under section 563.01. If the 6.22 value of the seized property or vehicle is $7,500 or less, the 6.23 claimant may file an action in conciliation court for its 6.24 recovery. If the value of the seized property or vehicle is 6.25 less than $500, the claimant does not have to pay the 6.26 conciliation court filing fee. 6.27 (c) The complaint must be captioned in the name of the 6.28 claimant as plaintiff and the seized property or vehicle as 6.29 defendant, and must state with specificity the grounds on which 6.30 the claimant alleges the property or vehicle was improperly 6.31 seized and the plaintiff's interest in the property or vehicle 6.32 seized. No responsive pleading is required of the commissioner 6.33 and no court fees may be charged for the commissioner's 6.34 appearance in the matter. The proceedings are governed by the 6.35 Rules of Civil Procedure. Notwithstanding any law to the 6.36 contrary, an action for the return of property or a vehicle 7.1 seized under this section may not be maintained by or on behalf 7.2 of any person who has been served with an inventory unless the 7.3 person has complied with this subdivision. The court shall hear 7.4 the action without a jury and shall try and determine the issues 7.5 of fact and law involved. 7.6(c)(d) When a judgment of forfeiture is entered, the 7.7 commissioner may, unless the judgment is stayed pending an 7.8 appeal, either: 7.9 (1) cause the forfeitedpropertygasoline or special fuel 7.10 to be destroyed; or 7.11 (2) causeitthe forfeited property in clause (1) or 7.12 vehicle to be sold at public auction as provided by 7.13 law.Proceeds of a sale, after deducting the expense of keeping7.14the gasoline or special fuel and costs of the sale, must be paid7.15into the state treasury. The commissioner shall reimburse7.16designees for costs incurred.After deducting the expense of 7.17 keeping the property and vehicle and the costs of the sale, the 7.18 commissioner shall pay from the funds collected all liens 7.19 according to their priority, which are established as being bona 7.20 fide and as existing without the lienor having any notice or 7.21 knowledge that the property or vehicle was being used or was 7.22 intended to be used for or in connection with any violation, and 7.23 shall pay the balance of the proceeds into the general fund. 7.24(d) If a demand for judicial determination is made and no7.25action is commenced as provided in this subdivision, the7.26property must be released by the commissioner and redelivered to7.27the person entitled to it.(e) If no demand for judicial 7.28 determination is made, the property or vehicle seized must be 7.29 considered forfeited to the state by operation of law and may be 7.30 disposed of by the commissioner as provided where there has been 7.31 a judgment of forfeiture.When the commissioner is satisfied7.32that a person from whom property is seized under this chapter7.33was acting in good faith and without intent to evade the tax,7.34the commissioner shall release the property seized, without7.35further legal proceedings.7.36 [EFFECTIVE DATE.] This section is effective for seizures 8.1 made on or after July 1, 2001. 8.2 Sec. 3. Minnesota Statutes 2000, section 297A.91, is 8.3 amended to read: 8.4 297A.91 [SEIZURE; COURT REVIEW.] 8.5 Subdivision 1. [SEIZURE OF PROPERTY USED IN ILLEGAL 8.6 TRANSPORT.] (a) If the retailer does not have a sales or use tax 8.7 permit and has been engaging in transporting personal property 8.8 into the state without payment of the tax, the commissioner of 8.9 revenue or the commissioner's agents may seize in the name of 8.10 the state any truck, automobile, or means of transportation not 8.11 owned or operated by a common carrier, used in the illegal 8.12 importation and transportation of any tangible personal property 8.13 by a retailer or the retailer's agent or employee. The 8.14 commissioner may demand the forfeiture and sale of the truck, 8.15 automobile, or other means of transportation together with the 8.16 property being transported illegally, unless the owner 8.17 establishes to the satisfaction of the commissioner or the court 8.18 that the owner had no notice or knowledge or reason to believe 8.19 that the vehicle was used or intended to be used in any such 8.20 violation. 8.21 (b) Withintwoten days after the seizure, the person 8.22 making the seizure shalldeliverserve by certified mail an 8.23 inventory of the vehicle and property seizedtoon the person 8.24 from whom the seizure was made, if known, andtoon any person 8.25 known or believed to have any right, title, interest, or lien on 8.26 the vehicle or property, at the last known address. The person 8.27 making the seizure shall also file a copy of the inventory with 8.28 the commissioner. The notice must include an explanation of the 8.29 right to demand a judicial forfeiture determination. 8.30 Subd. 2. [COURT REVIEW OF FORFEITURE.] (a) Withinten60 8.31 days after the date of service of the inventory, which is the 8.32 date of mailing, the person from whom the vehicle and property 8.33 were seized or any person claiming an interest in the vehicle or 8.34 property may filewith the commissionera demand for a judicial 8.35 determination of the question of whether the vehicle or property 8.36 was lawfully subject to seizure and forfeiture.The9.1commissioner, within 30 days, shall institute an action in the9.2district court of the county where the seizure was made to9.3determine the issue of forfeiture.9.4 (b)The action must be brought in the name of the state and9.5prosecuted by the county attorney or the attorney general.The 9.6 demand must be in the form of a civil complaint and must be 9.7 filed with the court administrator in the county in which the 9.8 seizure occurred, together with proof of service or a copy of 9.9 the complaint on the commissioner of revenue, and the standard 9.10 filing fee for civil actions unless the petitioner has the right 9.11 to sue in forma pauperis under section 563.01. If the value of 9.12 the seized property or vehicle is $7,500 or less, the claimant 9.13 may file an action in conciliation court for its recovery. If 9.14 the value of the seized property or vehicle is less than $500, 9.15 the claimant does not have to pay the conciliation court filing 9.16 fee. 9.17 (c) The complaint must be captioned in the name of the 9.18 claimant as plaintiff and the seized property or vehicle as 9.19 defendant, and must state with specificity the grounds on which 9.20 the claimant alleges the property or vehicle was improperly 9.21 seized and the plaintiff's interest in the property or vehicle 9.22 seized. No responsive pleading is required of the commissioner, 9.23 and no court fees may be charged for the commissioner's 9.24 appearance in the matter. The proceedings are governed by the 9.25 Rules of Civil Procedure. Notwithstanding any law to the 9.26 contrary, an action for the return of property or a vehicle 9.27 seized under this subdivision may not be maintained by or on 9.28 behalf of any person who has been served with an inventory 9.29 unless the person has complied with this subdivision. The court 9.30 shall hear the action without a jury and shall determine the 9.31 issues of fact and law involved. If a judgment of forfeiture is 9.32 entered and is not stayed pending an appeal, the commissioner 9.33 may have the forfeited vehicle and property sold at public 9.34 auction as provided by law. 9.35 Subd. 3. [TREATMENT OF SEIZED PROPERTY.]If a demand for9.36judicial determination is made and no action is commenced as10.1provided in this subdivision, the vehicle and property must be10.2released by the commissioner and redelivered to the person10.3entitled to it.If no demand for judicial determination is 10.4 made, the vehicle and property seized are considered forfeited 10.5 to the state by operation of law and may be disposed of by the 10.6 commissioner as if there were a judgment of forfeiture. The 10.7 forfeiture and sale of the automobile, truck, or other means of 10.8 transportation, and of the property being transported illegally 10.9 in it, are a penalty for the violation of this chapter. After 10.10 deducting the expense of keeping the vehicle and property, the 10.11 fee for seizure, and the costs of the sale, the commissioner 10.12 shall pay liens from the funds collected. The commissioner 10.13 shall pay all liens, according to their priority, that are 10.14 establishedat the hearingas being bona fide and as existing 10.15 without the lienor having any notice or knowledge that the 10.16 vehicle or property was being used or was intended to be used 10.17 for or in connection with any such violationas specified in the10.18order of the court. The commissioner shall pay the balance of 10.19 the proceeds into the state treasury to be credited to the 10.20 general fund. The state is not liable for any liens in excess 10.21 of the proceeds from the sale after allowable deductions. A 10.22 sale under this section frees the vehicle and property sold from 10.23 all liens.The order of the district court may be appealed as10.24in other civil cases.10.25 [EFFECTIVE DATE.] This section is effective for seizures 10.26 made on or after July 1, 2001. 10.27 Sec. 4. Minnesota Statutes 2000, section 297E.16, 10.28 subdivision 1, is amended to read: 10.29 Subdivision 1. [SEIZURE.] Contraband may be seized by the 10.30 commissioner or by any sheriff or other police officer, 10.31 hereinafter referred to as the "seizing authority," with or 10.32 without process, and is subject to forfeiture as provided in 10.33subdivisionssubdivision 2and 3. 10.34 [EFFECTIVE DATE.] This section is effective for seizures 10.35 made on or after July 1, 2001. 10.36 Sec. 5. Minnesota Statutes 2000, section 297E.16, 11.1 subdivision 2, is amended to read: 11.2 Subd. 2. [INVENTORY; JUDICIAL DETERMINATION; APPEAL; 11.3 DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the 11.4 seizure of alleged contraband described in section 349.2125, 11.5 subdivision 1, the person making the seizure shallmake11.6availableserve by certified mail an inventory of the property 11.7 seizedtoon the person from whom the property was seized, if 11.8 known, and on any person known or believed to have any right, 11.9 title, interest, or lien in the property, at the last known 11.10 address, and file a copy with the commissioner or the director 11.11 of alcohol and gambling enforcement. The notice must include an 11.12 explanation of the right to demand a judicial forfeiture 11.13 determination. 11.14 (b) Withinten60 days after the date of service of the 11.15 inventory, which is the date of mailing, the person from whom 11.16 the property was seized or any person claiming an interest in 11.17 the property may filewith the seizing authoritya demand for 11.18 judicial determination of whether the property was lawfully 11.19 subject to seizure and forfeiture.Within 60 days after the11.20date of filing of the demand, the seizing authority must bring11.21an action in the district court of the county where seizure was11.22made to determine the issue of forfeiture. The action must be11.23brought in the name of the state and be prosecuted by the county11.24attorney or by the attorney general.The demand must be in the 11.25 form of a civil complaint and must be filed with the court 11.26 administrator in the county in which the seizure occurred, 11.27 together with proof of service of a copy of the complaint on the 11.28 commissioner of revenue or the director of alcohol and gambling 11.29 enforcement, and the standard filing fee for civil actions 11.30 unless the petitioner has the right to sue in forma pauperis 11.31 under section 563.01. If the value of the seized property is 11.32 $7,500 or less, the claimant may file an action in conciliation 11.33 court for recovery of the property. If the value of the seized 11.34 property is less than $500, the claimant does not have to pay 11.35 the conciliation court filing fee. 11.36 (c) The complaint must be captioned in the name of the 12.1 claimant as plaintiff and the seized property as defendant, and 12.2 must state with specificity the grounds on which the claimant 12.3 alleges the property was improperly seized and the plaintiff's 12.4 interest in the property seized. No responsive pleading is 12.5 required of the commissioner or director, and no court fees may 12.6 be charged for the commissioner's or director's appearance in 12.7 the matter. The proceedings are governed by the Rules of Civil 12.8 Procedure. Notwithstanding any law to the contrary, an action 12.9 for the return of property seized under this section may not be 12.10 maintained by or on behalf of any person who has been served 12.11 with an inventory unless the person has complied with this 12.12 subdivision. The court shall hear the action without a jury and 12.13 determine the issues of fact and law involved. 12.14 (d) If a judgment of forfeiture is entered, the seizing 12.15 authority may, unless the judgment is stayed pending an appeal, 12.16 either (1) cause the forfeited property, other than a vehicle, 12.17 to be destroyed; or (2) cause it to be sold at a public auction 12.18 as provided by law. The person making a sale, after deducting 12.19 the expense of keeping the property, the fee for seizure, and 12.20 the costs of the sale, shall pay all liens according to their 12.21 priority, which are established as being bona fide and as 12.22 existing without the lienor having any notice or knowledge that 12.23 the property was being used or was intended to be used for or in 12.24 connection with the violation. The balance of the proceeds must 12.25 be paid 70 percent to the seizing authority for deposit as a 12.26 supplement to its operating fund or similar fund for official 12.27 use, and 20 percent to the county attorney or other prosecuting 12.28 agency that handled the court proceeding, if there is one, for 12.29 deposit as a supplement to its operating fund or similar fund 12.30 for prosecutorial purposes. The remaining ten percent of the 12.31 proceeds must be forwarded within 60 days after resolution of 12.32 the forfeiture to the department of human services to fund 12.33 programs for the treatment of compulsive gamblers. If there is 12.34 no prosecuting authority involved in the forfeiture, the 20 12.35 percent of the proceeds otherwise designated for the prosecuting 12.36 authority must be deposited into the general fund. 13.1If demand for judicial determination is made and no action13.2is commenced by the seizing authority as provided in this13.3subdivision, the property must be released by the seizing13.4authority and delivered to the person entitled to it.(e) If no 13.5 demand for judicial determination is made, the property seized 13.6 is considered forfeited to the seizing authority by operation of 13.7 law and may be disposed of by the seizing authority as provided 13.8 where there has been a judgment of forfeiture.When the seizing13.9authority is satisfied that a person from whom property is13.10seized was acting in good faith and without intent to evade the13.11tax imposed by section 297E.02, the seizing authority shall13.12release the property seized without further legal proceedings. 13.13 [EFFECTIVE DATE.] This section is effective for seizures 13.14 made on or after July 1, 2001. 13.15 Sec. 6. Minnesota Statutes 2000, section 297F.21, 13.16 subdivision 1, is amended to read: 13.17 Subdivision 1. [CONTRABAND DEFINED.] The following are 13.18 declared to be contraband and therefore subject to civil and 13.19 criminal penalties under this chapter: 13.20 (a) Cigarette packages which do not have stamps affixed to 13.21 them as provided in this chapter, including but not limited to 13.22 (i) packages with illegible stamps and packages with stamps that 13.23 are not complete or whole even if the stamps are legible, and 13.24 (ii) all devices for the vending of cigarettes in which packages 13.25 as defined in item (i) are found, including all contents 13.26 contained within the devices. 13.27 (b) A device for the vending of cigarettes and all packages 13.28 of cigarettes, where the device does not afford at least partial 13.29 visibility of contents. Where any package exposed to view does 13.30 not carry the stamp required by this chapter, it shall be 13.31 presumed that all packages contained in the device are unstamped 13.32 and contraband. 13.33 (c) A device for the vending of cigarettes to which the 13.34 commissioner or authorized agents have been denied access for 13.35 the inspection of contents. In lieu of seizure, the 13.36 commissioner or an agent may seal the device to prevent its use 14.1 until inspection of contents is permitted. 14.2 (d) A device for the vending of cigarettes which does not 14.3 carry the name and address of the owner, plainly marked and 14.4 visible from the front of the machine. 14.5 (e) A device including, but not limited to, motor vehicles, 14.6 trailers, snowmobiles, airplanes, and boats used with the 14.7 knowledge of the owner or of a person operating with the consent 14.8 of the owner for the storage or transportation of more than 14.9 5,000 cigarettes which are contraband under this subdivision. 14.10 When cigarettes are being transported in the course of 14.11 interstate commerce, or are in movement from either a public 14.12 warehouse to a distributor upon orders from a manufacturer or 14.13 distributor, or from one distributor to another, the cigarettes 14.14 are not contraband, notwithstanding the provisions of clause (a). 14.15 (f) A device including, but not limited to, motor vehicles, 14.16 trailers, snowmobiles, airplanes, and boats used with the 14.17 knowledge of the owner, or of a person operating with the 14.18 consent of the owner, for the storage or transportation of 14.19 untaxed tobacco products intended for sale in Minnesota other 14.20 than those in the possession of a licensed distributor on or 14.21 before the due date for payment of the tax under section 14.22 297F.09, subdivision 2. 14.23 (g) Cigarette packages or tobacco products obtained from an 14.24 unlicensed seller. 14.25(g)(h) Cigarette packages offered for sale or held as 14.26 inventory in violation of section 297F.20, subdivision 7. 14.27(h)(i) Tobacco products on which the tax has not been paid 14.28 by a licensed distributor. 14.29(i)(j) Any cigarette packages or tobacco products offered 14.30 for sale or held as inventory for which there is not an invoice 14.31 from a licensed seller as required under section 297F.13, 14.32 subdivision 4. 14.33(j)(k) Cigarette packages which have been imported into 14.34 the United States in violation of United States Code, title 26, 14.35 section 5754. All cigarettes held in violation of that section 14.36 shall be presumed to have entered the United States after 15.1 December 31, 1999, in the absence of proof to the contrary. 15.2 [EFFECTIVE DATE.] This section is effective for seizures 15.3 made on or after July 1, 2001. 15.4 Sec. 7. Minnesota Statutes 2000, section 297F.21, 15.5 subdivision 2, is amended to read: 15.6 Subd. 2. [SEIZURE.] Cigarettes, tobacco products, or other 15.7 property made contraband by subdivision 1 may be seized by the 15.8 commissioner or authorized agents or by any sheriff or other 15.9 police officer, with or without process, and are subject to 15.10 forfeiture as provided insubdivisionssubdivision 3and 4. 15.11 [EFFECTIVE DATE.] This section is effective for seizures 15.12 made on or after July 1, 2001. 15.13 Sec. 8. Minnesota Statutes 2000, section 297F.21, 15.14 subdivision 3, is amended to read: 15.15 Subd. 3. [INVENTORY; JUDICIAL DETERMINATION; APPEAL; 15.16 DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the 15.17 seizure of any alleged contraband, the person making the seizure 15.18 shallmake availableserve by certified mail an inventory of the 15.19 property seizedtoon the person from whom the seizure was made, 15.20 if known, and on any person known or believed to have any right, 15.21 title, interest, or lien in the property, at the last known 15.22 address, and file a copy with the commissioner. The notice must 15.23 include an explanation of the right to demand a judicial 15.24 forfeiture determination. 15.25 (b) Withinten60 days after the date of service of the 15.26 inventory, which is the date of mailing, the person from whom 15.27 the property was seized or any person claiming an interest in 15.28 the property may filewith the commissionera demand for a 15.29 judicial determination of the question as to whether the 15.30 property was lawfully subject to seizure and forfeiture.The15.31commissioner, within 60 days, shall institute an action in the15.32district court of the county where the seizure was made to15.33determine the issue of forfeiture.The demand must be in the 15.34 form of a civil complaint and must be filed with the court 15.35 administrator in the county in which the seizure occurred, 15.36 together with proof of service of a copy of the complaint on the 16.1 commissioner of revenue, and the standard filing fee for civil 16.2 actions unless the petitioner has the right to sue in forma 16.3 pauperis under section 563.01. If the value of the seized 16.4 property is $7,500 or less, the claimant may file an action in 16.5 conciliation court for recovery of the property. If the value 16.6 of the seized property is less than $500, the claimant does not 16.7 have to pay the conciliation court filing fee. 16.8 (c) The complaint must be captioned in the name of the 16.9 claimant as plaintiff and the seized property as defendant, and 16.10 must state with specificity the grounds on which the claimant 16.11 alleges the property was improperly seized and the plaintiff's 16.12 interest in the property seized. No responsive pleading is 16.13 required of the commissioner, and no court fees may be charged 16.14 for the commissioner's appearance in the matter. The 16.15 proceedings are governed by the Rules of Civil Procedure. 16.16 Notwithstanding any law to the contrary, an action for the 16.17 return of property seized under this section may not be 16.18 maintained by or on behalf of any person who has been served 16.19 with an inventory unless the person has complied with this 16.20 subdivision. The court shall decide whether the alleged 16.21 contraband is contraband, as defined in subdivision 1. 16.22(b) The action must be brought in the name of the state and16.23must be prosecuted by the county attorney or by the attorney16.24general.The court shall hear the action without a jury and 16.25 shall try and determine the issues of fact and law involved. 16.26(c)(d) When a judgment of forfeiture is entered, the 16.27 commissioner may, unless the judgment is stayed pending an 16.28 appeal, either: 16.29 (1) deliver the forfeitedpropertycigarette packages or 16.30 tobacco products to the commissioner of human services for use 16.31 by patients in state institutions; 16.32 (2) causeitthe property in clause (1) to be destroyed; or 16.33 (3) causeitthe forfeited property to be sold at public 16.34 auction as provided by law. 16.35 The person making a sale, after deducting the expense of keeping 16.36 the property, the fee for seizure, and the costs of the sale, 17.1 shall pay all liens according to their priority, which are 17.2 established as being bona fide and as existing without the 17.3 lienor having any notice or knowledge that the property was 17.4 being used or was intended to be used for or in connection with 17.5 the violation. The balance of the proceeds must be paid 75 17.6 percent to the department of revenue for deposit as a supplement 17.7 to its operating fund or similar fund for official use, and 25 17.8 percent to the county attorney or other prosecuting agency that 17.9 handled the court proceeding, if there is one, for deposit as a 17.10 supplement to its operating fund or similar fund for 17.11 prosecutorial purposes. If there is no prosecuting authority 17.12 involved in the forfeiture, the 25 percent of the proceeds 17.13 otherwise designated for the prosecuting authority must be 17.14 deposited into the general fund. 17.15(d) If a demand for judicial determination is made and no17.16action commenced as provided in this subdivision, the property17.17must be released by the commissioner and returned to the person17.18entitled to it.(e) If no demand for judicial determination is 17.19 made, the property seized is considered forfeited to the state 17.20 by operation of law and may be disposed of by the commissioner 17.21 as provided in the case of a judgment of forfeiture. 17.22 [EFFECTIVE DATE.] This section is effective for seizures 17.23 made on or after July 1, 2001. 17.24 Sec. 9. Minnesota Statutes 2000, section 297G.20, 17.25 subdivision 3, is amended to read: 17.26 Subd. 3. [SEIZURE.] Distilled spirits, wine, fermented 17.27 malt beverages, or other property made contraband by subdivision 17.28 1 may be seized by the commissioner of revenue or public safety 17.29 and their authorized agents or by any sheriff or other police 17.30 officer, with or without process, and are subject to forfeiture 17.31 as provided insubdivisionssubdivision 4and 5. 17.32 [EFFECTIVE DATE.] This section is effective for seizures 17.33 made on or after July 1, 2001. 17.34 Sec. 10. Minnesota Statutes 2000, section 297G.20, 17.35 subdivision 4, is amended to read: 17.36 Subd. 4. [INVENTORY; JUDICIAL DETERMINATION; APPEAL; 18.1 DISPOSITION OF SEIZED PROPERTY.] (a) Within ten days after the 18.2 seizure of alleged contraband, the person making the seizure 18.3 shallmake availableserve by certified mail an inventory of the 18.4 property seizedtoon the person from whom the property was 18.5 seized, if known, and on any person known or believed to have 18.6 any right, title, interest, or lien in the property, at the last 18.7 known address, and file a copy with both the commissioners of 18.8 revenue and public safety. The notice must include an 18.9 explanation of the right to demand a judicial forfeiture 18.10 determination. 18.11 (b) Withinten60 days after the date of service of the 18.12 inventory, which is the date of mailing, the person from whom 18.13 the property was seized or any person claiming an interest in 18.14 the property may filewith the seizing authoritya demand for 18.15 judicial determination of whether the property was lawfully 18.16 subject to seizure and forfeiture.Within 60 days after the18.17date of the filing of the demand, the seizing authority must18.18bring an action in the district court of the county where18.19seizure was made to determine the issue of forfeiture.The 18.20 demand must be in the form of a civil complaint and must be 18.21 filed with the court administrator in the county in which the 18.22 seizure occurred, together with proof of service of a copy of 18.23 the complaint on the commissioner of revenue or public safety, 18.24 and the standard filing fee for civil actions unless the 18.25 petitioner has the right to sue in forma pauperis under section 18.26 563.01. If the value of the seized property or vehicle is 18.27 $7,500 or less, the claimant may file an action in conciliation 18.28 court for recovery of the property. If the value of the seized 18.29 property is less than $500, the claimant does not have to pay 18.30 the conciliation court filing fee. 18.31 (c) The complaint must be captioned in the name of the 18.32 claimant as plaintiff and the seized property as defendant, and 18.33 must state with specificity the grounds on which the claimant 18.34 alleges the property was improperly seized and the plaintiff's 18.35 interest in the property seized. No responsive pleading is 18.36 required of the commissioner of revenue or public safety and no 19.1 court fees may be charged for either commissioner's appearance 19.2 in the matter. The proceedings are governed by the Rules of 19.3 Civil Procedure. Notwithstanding any law to the contrary, an 19.4 action for the return of property seized under this section may 19.5 not be maintained by or on behalf of any person who has been 19.6 served with an inventory unless the person has complied with 19.7 this subdivision. 19.8(b) The action must be brought in the name of the state and19.9must be prosecuted by the county attorney or by the attorney19.10general.The court shall hear the action without a jury and 19.11 determine the issues of fact and law involved. 19.12(c)(d) If a judgment of forfeiture is entered, the seizing 19.13 authority may, unless the judgment is stayed pending an appeal, 19.14 either: 19.15 (1) cause the forfeited property, other than a vehicle, to 19.16 be destroyed; or 19.17 (2) cause it to be sold at a public auction as provided by 19.18 law. 19.19 The person making a sale, after deducting the expense of 19.20 keeping the property, the fee for seizure, and the costs of the 19.21 sale, shall pay all liens according to their priority, which are 19.22 established as being bona fide and as existing without the 19.23 lienor having any notice or knowledge that the property was 19.24 being used or was intended to be used for or in connection with 19.25 the violation. The balance of the proceeds must be paid 75 19.26 percent to the seizing authority for deposit as a supplement to 19.27 its operating fund or similar fund for official use, and 25 19.28 percent to the county attorney or other prosecuting agency that 19.29 handled the court proceeding, if there is one, for deposit as a 19.30 supplement to its operating fund or similar fund for 19.31 prosecutorial purposes. If there is no prosecuting authority 19.32 involved in the forfeiture, the 25 percent of the proceeds 19.33 otherwise designated for the prosecuting authority must be 19.34 deposited into the general fund. 19.35(d) If demand for judicial determination is made and no19.36action is commenced by the seizing authority as provided in this20.1subdivision, the property must be released by the seizing20.2authority and delivered to the person entitled to it.(e) If no 20.3 demand is made, the property seized is considered forfeited to 20.4 the seizing authority by operation of law and may be disposed of 20.5 by the seizing authority as provided for a judgment of 20.6 forfeiture.When the seizing authority is satisfied that a20.7person from whom property is seized was acting in good faith and20.8without intent to evade the tax imposed by this chapter, the20.9seizing authority shall release the property seized without20.10further legal proceedings.20.11 [EFFECTIVE DATE.] This section is effective for seizures 20.12 made on or after July 1, 2001. 20.13 Sec. 11. [REPEALER.] 20.14 Minnesota Statutes 2000, sections 296A.24, subdivision 3; 20.15 297E.16, subdivision 3; 297F.21, subdivision 4; and 297G.20, 20.16 subdivision 5, are repealed. 20.17 [EFFECTIVE DATE.] This section is effective for seizures 20.18 made on or after July 1, 2001. 20.19 ARTICLE 3 20.20 CIVIL PENALTY REFORM 20.21 Section 1. Minnesota Statutes 2000, section 289A.60, 20.22 subdivision 1, is amended to read: 20.23 Subdivision 1. [PENALTY FOR FAILURE TO PAY TAX.] (a)If a20.24tax other than a withholding or sales or use tax is not paid20.25within the time specified for payment, a penalty must be added20.26to the amount required to be shown as tax. The penalty is three20.27percent of the tax not paid on or before the date specified for20.28payment of the tax if the failure is for not more than 30 days,20.29with an additional penalty of three percent of the amount of tax20.30remaining unpaid during each additional 30 days or fraction of20.3130 days during which the failure continues, not exceeding 2420.32percent in the aggregate.If a corporate franchise, fiduciary 20.33 income, mining company, estate, partnership, S corporation, or 20.34 nonresident entertainer tax is not paid within the time 20.35 specified for payment, a penalty of six percent is added to the 20.36 unpaid tax, except that if a corporation or mining company meets 21.1 the requirements of section 289A.19, subdivision 2, the penalty 21.2 is not imposed. 21.3 (b) For the taxes listed in paragraph (a), in addition to 21.4 the penalty in that paragraph, whether imposed or not, if a 21.5 return or amended return is filed after the due date, without 21.6 regard to extensions, and any tax reported as remaining due is 21.7 not remitted with the return or amended return, a penalty of 21.8 five percent of the tax not paid is added to the tax. If the 21.9 commissioner issues an order assessing additional tax for a tax 21.10 listed in paragraph (a), and the tax is not paid within 60 days 21.11 after the mailing of the order or, if appealed, within 60 days 21.12 after final resolution of the appeal, a penalty of five percent 21.13 of the tax is added to the tax. 21.14 (c)If an individual files a state individual income tax21.15return and pays all of the state individual income tax with the21.16filing of a return within six months of the date the return is21.17due and the amount paid by the due date of the return is at21.18least 90 percent of the amount of tax due, as shown on the21.19return, the individual is presumed to have reasonable cause for21.20the late payment.If an individual income tax is not paid 21.21 within the time specified for payment, a penalty of four percent 21.22 is added to the unpaid tax. There is a presumption of 21.23 reasonable cause for the late payment if the individual: (i) 21.24 pays by the due date of the return at least 90 percent of the 21.25 amount of tax, after credits other than withholding and 21.26 estimated payments, shown owing on the return; (ii) files the 21.27 return within six months after the due date; and (iii) pays the 21.28 remaining balance of the reported tax when the return is filed. 21.29 (d) If the commissioner issues an order assessing 21.30 additional individual income tax, and the tax is not paid within 21.31 60 days after the mailing of the order or, if appealed, within 21.32 60 days after final resolution of the appeal, a penalty of four 21.33 percent of the unpaid tax is added to the tax. 21.34(b)(e) If a withholding or sales or use tax is not paid 21.35 within the time specified for payment, a penalty must be added 21.36 to the amount required to be shown as tax. The penalty is five 22.1 percent of the tax not paid on or before the date specified for 22.2 payment of the tax if the failure is for not more than 30 days, 22.3 with an additional penalty of five percent of the amount of tax 22.4 remaining unpaid during each additional 30 days or fraction of 22.5 30 days during which the failure continues, not exceeding 15 22.6 percent in the aggregate. 22.7 [EFFECTIVE DATE.] This section is effective for tax years 22.8 beginning after December 31, 2000, and for estate tax returns 22.9 due after January 1, 2002. 22.10 Sec. 2. Minnesota Statutes 2000, section 289A.60, 22.11 subdivision 2, is amended to read: 22.12 Subd. 2. [PENALTY FOR FAILURE TO MAKE AND FILE RETURN.] If 22.13 a taxpayer fails to make and file areturn other than an income22.14tax return of an individual, a withholding return, or sales or22.15use tax return, within the time prescribed or an extension, a22.16penalty is added to the tax. The penalty is three percent of22.17the amount of tax not paid on or before the date prescribed for22.18payment of the tax including any extensions if the failure is22.19for not more than 30 days, with an additional five percent of22.20the amount of tax remaining unpaid during each additional 3022.21days or fraction of 30 days, during which the failure continues,22.22not exceeding 23 percent in the aggregate.22.23If a taxpayer fails to file an individual income tax return22.24within six months after the date prescribed for filing of the22.25return, a penalty of ten percent of the amount of tax not paid22.26by the end of that six-month period is added to the tax.22.27If a taxpayer fails to file a withholding or sales or use22.28 tax return within the time prescribed, including an extension, a 22.29 penalty of five percent of the amount of tax nottimelypaid by 22.30 the end of that period is added to the tax. 22.31 [EFFECTIVE DATE.] This section is effective for tax years 22.32 beginning after December 31, 2000, and for estate tax returns 22.33 due after January 1, 2002. 22.34 Sec. 3. Minnesota Statutes 2000, section 289A.60, is 22.35 amended by adding a subdivision to read: 22.36 Subd. 2a. [PENALTIES FOR EXTENDED DELINQUENCY.] (a) If an 23.1 individual income tax is not paid within 180 days after the date 23.2 of filing of a return or, in the case of taxes assessed by the 23.3 commissioner, within 180 days after the assessment date or, if 23.4 appealed, within 180 days after final resolution of the appeal, 23.5 an extended delinquency penalty of five percent of the tax 23.6 remaining unpaid is added to the amount due. 23.7 (b) If a corporate franchise, fiduciary income, mining 23.8 company, estate, partnership, S corporation, or nonresident 23.9 entertainer tax return is not filed within 30 days after written 23.10 demand for the filing of a delinquent return, an extended 23.11 delinquency penalty of five percent of the tax not paid prior to 23.12 the demand is added to the tax, or in the case of an individual 23.13 income tax return, a minimum penalty of $100 or the five percent 23.14 penalty is imposed, whichever amount is greater. 23.15 [EFFECTIVE DATE.] This section is effective for tax years 23.16 beginning after December 31, 2000, and for estate tax returns 23.17 due after January 1, 2002. 23.18 Sec. 4. [APPROPRIATION.] 23.19 $545,000 in fiscal year 2002 and $25,000 in fiscal year 23.20 2003 is appropriated from the general fund to the commissioner 23.21 of revenue to implement sections 1 to 3. $520,000 of the 23.22 appropriation in fiscal year 2002 is for a one-time expenditure 23.23 related to system programming costs. This appropriation is 23.24 available for expenditure until June 30, 2003. 23.25 [EFFECTIVE DATE.] This section is effective July 1, 2001. 23.26 Sec. 5. [REPEALER.] 23.27 Minnesota Statutes 2000, section 289A.60, subdivision 3, is 23.28 repealed. 23.29 [EFFECTIVE DATE.] This section is effective for tax years 23.30 beginning after December 31, 2000, and for estate tax returns 23.31 due after January 1, 2002. 23.32 ARTICLE 4 23.33 CRIMINAL PENALTY 23.34 Section 1. Minnesota Statutes 2000, section 297F.20, 23.35 subdivision 3, is amended to read: 23.36 Subd. 3. [FALSE OR FRAUDULENT RETURNS; PENALTIES.] (a) A 24.1 person who files with the commissioner a return, report, or 24.2 other document, or who maintains or provides invoices subject to 24.3 review by the commissioner under this chapter, known by the 24.4 person to be fraudulent or false concerning a material matter, 24.5 is guilty of a felony. 24.6 (b) A person who knowingly aids or assists in, or advises 24.7 in the preparation or presentation of a return, report, invoice, 24.8 or other document that is fraudulent or false concerning a 24.9 material matter, whether or not the falsity or fraud is 24.10 committed with the knowledge or consent of the person authorized 24.11 or required to present the return, report, invoice, or other 24.12 document, is guilty of a felony. 24.13 [EFFECTIVE DATE.] This section is effective for crimes 24.14 occurring on or after July 1, 2001. 24.15 ARTICLE 5 24.16 MISCELLANEOUS 24.17 Section 1. Minnesota Statutes 2000, section 16D.08, 24.18 subdivision 2, is amended to read: 24.19 Subd. 2. [POWERS.] (a) In addition to the collection 24.20 remedies available to private collection agencies in this state, 24.21 the commissioner, with legal assistance from the attorney 24.22 general, may utilize any statutory authority granted to a 24.23 referring agency for purposes of collecting debt owed to that 24.24 referring agency. The commissioner may also delegate to the 24.25 enterprise the tax collection remedies in sections 270.06, 24.26 clauses (7) and (17), excluding the power to subpoena witnesses; 24.27 270.66; 270.69, excluding subdivisions 7 and 13; 270.70, 24.28 excluding subdivision 14; 270.7001 to 270.72; and 290.92, 24.29 subdivision 23, except that a continuous wage levy under section 24.30 290.92, subdivision 23, is only effective for 70 days, unless no 24.31 competing wage garnishments, executions, or levies are served 24.32 within the 70-day period, in which case a wage levy is 24.33 continuous until a competing garnishment, execution, or levy is 24.34 served in the second or a succeeding 70-day period, in which 24.35 case a continuous wage levy is effective for the remainder of 24.36 that period. A debtor who qualifies for cancellation of 25.1 collection costs under section 16D.11, subdivision 3, clause 25.2 (1), can apply to the commissioner for reduction or release of a 25.3 continuous wage levy, if the debtor establishes that the debtor 25.4 needs all or a portion of the wages being levied upon to pay for 25.5 essential living expenses, such as food, clothing, shelter, 25.6 medical care, or expenses necessary for maintaining employment. 25.7 The commissioner's determination not to reduce or release a 25.8 continuous wage levy is appealable to district court. The word 25.9 "tax" or "taxes" when used in the tax collection statutes listed 25.10 in this subdivision also means debts referred under this chapter. 25.11 (b) For debts other than state taxesor, child support, or 25.12 student loans, before any of the tax collection remedies listed 25.13 in this subdivision can be used, except for the remedies in 25.14 section 270.06, clauses (7) and (17), if the referring agency 25.15 has not already obtained a judgment or filed a lien, the 25.16 commissioner must first obtain a judgment against the debtor. 25.17 For student loans when the referring agency has not obtained a 25.18 judgment or filed a lien, before using the tax collection 25.19 remedies listed in this subdivision, except for the remedies in 25.20 section 270.06, clauses (7) and (17), the commissioner shall 25.21 give the debtor 30 days' notice in writing, which may be served 25.22 in any manner permitted in section 270.68 for service of a 25.23 summons and complaint. The notice must advise the debtor of the 25.24 debtor's right to request that the commissioner commence a court 25.25 action, and that if no such request is made within 30 days after 25.26 service of the notice, the commissioner may use these tax 25.27 collection remedies. If a timely request is made, the 25.28 commissioner shall obtain a judgment before using these tax 25.29 collection remedies. 25.30 [EFFECTIVE DATE.] This section is effective for student 25.31 loans referred to the commissioner for collection on or after 25.32 July 1, 2001. 25.33 Sec. 2. Minnesota Statutes 2000, section 289A.55, 25.34 subdivision 9, is amended to read: 25.35 Subd. 9. [INTEREST ON PENALTIES.] (a) A penalty imposed 25.36 under section 289A.60, subdivision 1, 2,3,2a, 4, 5, 6, or 21 26.1 bears interest from the date the return or payment was required 26.2 to be filed or paid, including any extensions, to the date of 26.3 payment of the penalty. 26.4 (b) A penalty not included in paragraph (a) bears interest 26.5 only if it is not paid within 60 days from the date of notice. 26.6 In that case interest is imposed from the date of notice to the 26.7 date of payment. 26.8 [EFFECTIVE DATE.] This section is effective for tax years 26.9 beginning after December 31, 2000, and for estate tax returns 26.10 due after January 1, 2002. 26.11 Sec. 3. Minnesota Statutes 2000, section 289A.60, 26.12 subdivision 7, is amended to read: 26.13 Subd. 7. [PENALTY FOR FRIVOLOUS RETURN.] Ifan individual26.14 a taxpayer files what purports to be a tax returnrequired by26.15chapter 290or a claim for refund but which does not contain 26.16 information on which the substantial correctness of 26.17 theassessmentpurported return or claim for refund may be 26.18 judged or contains information that on its face shows that the 26.19assessmentpurported return or claim for refund is substantially 26.20 incorrect and the conduct is due to a position that is frivolous 26.21 or a desire that appears on the purported return or claim for 26.22 refund to delay or impede the administration of Minnesota tax 26.23 laws, then the individual shall pay a penalty of $500. In a 26.24 proceeding involving the issue of whether or not a person is 26.25 liable for this penalty, the burden of proof is on the 26.26 commissioner. 26.27 [EFFECTIVE DATE.] This section is effective for returns or 26.28 claims for refunds filed on or after the day following final 26.29 enactment.