1.1 	A bill for an act
1.2 	relating to crimes; establishing Minnesota Financial
1.3 	Crimes Oversight Council and Minnesota Financial
1.4 	Crimes Task Force to combat identity theft and
1.5 	investigate multijurisdictional financial crimes;
1.6 	providing for the organization, duties, and membership
1.7 	of the council; providing for forfeiture of seized
1.8 	property; appropriating money; proposing coding for
1.9 	new law in Minnesota Statutes, chapter 299A; repealing
1.10 	Minnesota Statutes 2004, section 299A.68.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. [299A.681] MINNESOTA FINANCIAL CRIMES
1.13 	OVERSIGHT COUNCIL.
1.14 		Subdivision 1.Oversight council established. The
1.15 	Minnesota Financial Crimes Oversight Council is established to
1.16 	provide guidance related to the investigation and prosecution of
1.17 	identity theft and financial crime.
1.18 		Subd. 2.Membership. The council shall consist of the
1.19 	following individuals or their designees:
1.20 	(1) the commissioner of public safety;
1.21 	(2) the attorney general;
1.22 	(3) two chiefs of police, selected by the Minnesota Chiefs
1.23 	of Police Association from police departments which participate
1.24 	in the Minnesota Financial Crimes Task Force;
1.25 	(4) two sheriffs, selected by the Minnesota Sheriffs
1.26 	Association from sheriff departments which participate in the
1.27 	Minnesota Financial Crimes Task Force;
1.28 	(5) the United States attorney for the district of
2.1 	Minnesota;
2.2 	(6) one county attorney, selected by the Minnesota County
2.3 	Attorneys Association;
2.4 	(7) a representative from the United States Postal
2.5 	Inspector's Office;
2.6 	(8) a representative from a not-for-profit retail merchants
2.7 	industry;
2.8 	(9) a representative from a not-for-profit banking and
2.9 	credit union industry;
2.10 	(10) a representative from a not-for-profit association
2.11 	representing senior citizens;
2.12 	(11) the statewide commander described in subdivision 4;
2.13 	and 
2.14 	(12) two additional members who shall be selected by the
2.15 	council.
2.16 	The council may adopt procedures to govern its conduct as
2.17 	necessary and shall select a chair from among its members.
2.18 		Subd. 3.Duties. The council shall develop an overall
2.19 	strategy to ameliorate the harm caused to the public by identity
2.20 	theft and financial crime within the state of Minnesota.  This
2.21 	strategy may include the development of protocols and procedures
2.22 	to investigate financial crimes and a structure for best
2.23 	addressing these issues in a multijurisdictional manner.
2.24 	Additionally, the council shall:
2.25 	(1) establish a multijurisdictional statewide Minnesota
2.26 	Financial Crimes Task Force to investigate major financial
2.27 	crimes;
2.28 	(2) choose a statewide commander who shall serve at the
2.29 	pleasure of the council;
2.30 	(3) assist the Department of Public Safety in developing an
2.31 	objective grant application and review process that is free from
2.32 	conflicts of interest;
2.33 	(4) make funding recommendations to the commissioner of
2.34 	public safety on grants to support efforts to combat identity
2.35 	theft and financial crime;
2.36 	(5) assist in developing a process to collect and share
3.1 	information to improve the investigation and prosecution of
3.2 	identity theft and financial crime;
3.3 	(6) develop and approve an operational budget for the
3.4 	office of the statewide commander and the council;
3.5 	(7) establish fiscal procedures with the Department of
3.6 	Public Safety on funding disbursements and allocation procedures
3.7 	for approved council and task force operations and grants which
3.8 	are funded under assessment fees collected in subdivision 9; and 
3.9 	(8) enter into such contracts as necessary to establish and
3.10 	maintain a relationship with the retailers, financial
3.11 	institutions, and other businesses to deal effectively with
3.12 	identity theft and financial crime.
3.13 	The task force described in clause (1) may consist of
3.14 	members from local law enforcement agencies, federal law
3.15 	enforcement agencies, state and federal prosecutor offices and
3.16 	representatives from elderly victims, retail, and financial
3.17 	institutions as described in subdivision 2, clauses (8), (9),
3.18 	and (10).
3.19 		Subd. 4.Statewide commander. The current task force
3.20 	commander, serving under section 299A.68 shall transition the
3.21 	current task force and remain in place as commander under the
3.22 	council until July 1, 2008, at which time the commissioner of
3.23 	public safety, upon the recommendation of the council, shall
3.24 	appoint a statewide commander as chosen by the council.  The
3.25 	current commander shall be reappointed.  The commander serving
3.26 	in the unclassified service shall:
3.27 	(1) coordinate and monitor all multijurisdictional identity
3.28 	theft and financial crime enforcement activities;
3.29 	(2) facilitate local efforts and ensure statewide
3.30 	coordination with efforts to combat identity theft and financial
3.31 	crime;
3.32 	(3) facilitate training for personnel;
3.33 	(4) monitor compliance with investigative protocols;
3.34 	(5) implement an outcome evaluation and data quality
3.35 	control process;
3.36 	(6) be responsible for selection and removal for cause of
4.1 	assigned task force investigators who are designated
4.2 	participants under a memorandum of understanding and/or who
4.3 	receive grant funding;
4.4 	(7) provide supervision of task force investigators
4.5 	assigned;
4.6 	(8) submit a task force operational budget to the council
4.7 	for approval; and 
4.8 	(9) submit quarterly task force activity reports to the
4.9 	council.
4.10 		Subd. 5.Participating officers; employment status. All
4.11 	law enforcement officers selected to participate in the
4.12 	Minnesota Financial Crimes Task Force must be licensed peace
4.13 	officers as defined in section 626.84, subdivision 1, or
4.14 	qualified federal law enforcement officers as defined in section
4.15 	626.8453.  Participating officers remain employees of the same
4.16 	entity that employed them before joining any multijurisdictional
4.17 	entity established under this section.  Participating officers
4.18 	are not employees of the state.
4.19 		Subd. 6.Jurisdiction and powers. Law enforcement
4.20 	officers participating in any multijurisdictional entity
4.21 	established under this section have statewide jurisdiction to
4.22 	conduct criminal investigations and have the same powers of
4.23 	arrest as those possessed by a sheriff.  The task force shall
4.24 	retain the assigned originating reporting number for case
4.25 	reporting purposes according to section 299A.68 and transferred
4.26 	to this section effective July 1, 2005.
4.27 		Subd. 7.Grants authorized. The commissioner of public
4.28 	safety, upon recommendation of the council, shall make grants to
4.29 	state and local units of government to combat identity theft and
4.30 	financial crime.  The commander, as funding permits, may prepare
4.31 	a budget to establish four regional districts and funding grant
4.32 	allocations programs outside the counties of Hennepin, Ramsey,
4.33 	Anoka, Washington, and Dakota.  The budget shall be reviewed and
4.34 	approved by the council and recommended to the commissioner of
4.35 	public safety to support these efforts.  The council account
4.36 	shall be transferred on or before each fiscal accounting
5.1 	calendar quarter during each year on a recurring basis to its
5.2 	fiscal agent under subdivision 3, clause (7).
5.3 		Subd. 8.Financial crimes oversight council funding
5.4 	account. The Minnesota Financial Crimes Oversight Council
5.5 	funding account is created in the state treasury.  Money
5.6 	received from assessments under subdivision 9 is deposited into
5.7 	the account.  Money in the account is earmarked for the council
5.8 	and must be used for investigation of identity theft and
5.9 	financial crimes.  All fees collected by the commissioner of
5.10 	public safety under this subdivision must be deposited in the
5.11 	state treasury and credited to the Minnesota Financial Crimes
5.12 	Oversight Council funding account within the Department of
5.13 	Public Safety.  Money in the account is appropriated to the
5.14 	council to administer this section.  Assessment of the funds
5.15 	shall begin July 1, 2005.
5.16 		Subd. 9.Assessment fees. (a) Each Minnesota state
5.17 	identification card or driver's license issued by the state of
5.18 	Minnesota shall be assessed a fee of $1.  A fee of $1 shall also
5.19 	be assessed for renewal, replacement, or reinstatement cards or
5.20 	licenses.  The persons collecting assessments shall remit all
5.21 	assessments to the commissioner of public safety for deposit
5.22 	into a special account earmarked for the Minnesota Financial
5.23 	Crimes Oversight Council.  The council account shall be
5.24 	transferred on or before each fiscal accounting calendar quarter
5.25 	during each year on a recurring basis to its fiscal agent
5.26 	established under subdivision 3, clause (7).
5.27 	(b) The assessment fee increase generated under paragraph
5.28 	(a) must be transmitted to the commissioner of public safety who
5.29 	shall transfer funds generated, including any interest accrued,
5.30 	into the special account earmarked for the Minnesota Financial
5.31 	Crimes Oversight Council.  This money, including interest, shall
5.32 	be allocated quarterly to the Minnesota Financial Crimes
5.33 	Oversight Council for appropriations and released to the
5.34 	designated Minnesota Financial Crimes Task Force approved fiscal
5.35 	agent account for its use under this section.  The Minnesota
5.36 	Financial Crimes Oversight Council shall use any remaining money
6.1 	available at the end of the year to award grants in this section.
6.2 	Subd. 10.[VICTIMS' ASSISTANCE PROGRAM.] (a) The council
6.3 	may establish a victims' assistance program to assist victims of
6.4 	economic crimes and provide prevention and awareness programs.
6.5 	The council may retain outside services of not-for-profit
6.6 	organizations to assist in the development of delivery systems
6.7 	to aid victims of financial crimes.  Services to victims shall
6.8 	not include any financial assistance to victims, but are limited
6.9 	to helping victims obtain police assistance and giving direction
6.10 	to victims for protecting personal accounts and identities.
6.11 	Services include a victim 1-800 number, facsimile number, Web
6.12 	site, telephone service Monday through Friday, e-mail response,
6.13 	and interfaces to other helpful Web sites.  Information about
6.14 	victims gathered by the victim task force assistance program
6.15 	shall be covered by the Data Privacy Act under chapter 13.
6.16 	(b) The council may post or communicate through public
6.17 	service announcements in newspapers, radio, television, cable
6.18 	access, billboards, Internet, Web sites, and other normal
6.19 	advertising channels a financial reward of up to $2,000 for tips
6.20 	leading to the apprehension and successful prosecution of
6.21 	individuals committing economic crimes.  All rewards must meet
6.22 	the Minnesota Financial Crimes Oversight Council standards.  The
6.23 	release of funds shall be made to an individual whose
6.24 	information leads to the apprehension and prosecution of
6.25 	offenders committing economic or financial crimes against
6.26 	citizens or businesses in the state of Minnesota.  All rewards
6.27 	paid to an individual shall be reported to the Department of
6.28 	Revenue along with the individual's Social Security number.
6.29 		Subd. 11.Council and task force are
6.30 	permanent. Notwithstanding section 15.059, this section does
6.31 	not expire.
6.32 		Subd. 12.Funding. The Minnesota Financial Crimes
6.33 	Oversight Council may accept lawful grants and in-kind
6.34 	contributions from any federal source or legal business or
6.35 	individual not funded by this section for general operation
6.36 	support, including personnel costs.  These grants or in-kind
7.1 	contributions are not to be directed toward the case of a
7.2 	particular victim or business.  The council fiscal agent shall
7.3 	handle all funds approved by the council including in-kind
7.4 	contributions.
7.5 		Subd. 13.Forfeiture. Property seized by the task force
7.6 	established by the council is subject to forfeiture pursuant to
7.7 	sections 609.531, 609.5312, 609.5313, and 609.5315 if ownership
7.8 	cannot be established.  The council shall receive the proceeds
7.9 	from the sale of all property that it properly seizes and that
7.10 	is forfeited.
7.11 		Subd. 14.Transfer equipment from current minnesota
7.12 	financial crimes task force. All current equipment shall be
7.13 	transferred from the Minnesota Financial Crimes Task Force
7.14 	established under section 299A.68 to the Minnesota Financial
7.15 	Crimes Oversight Council established under this section for use
7.16 	by the Minnesota Financial Crimes Task Force formed under this
7.17 	section, effective July 1, 2005.

7.18 	Sec. 2. REPEALER.
 7.19 	Minnesota Statutes 2004, section 299A.68, is repealed.