HF 1568

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to crimes; establishing Minnesota Financial
Crimes Oversight Council and Minnesota Financial
Crimes Task Force to combat identity theft and
investigate multijurisdictional financial crimes;
providing for the organization, duties, and membership
of the council; providing for forfeiture of seized
property; appropriating money; proposing coding for
new law in Minnesota Statutes, chapter 299A; repealing
Minnesota Statutes 2004, section 299A.68.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [299A.681] MINNESOTA FINANCIAL CRIMES
OVERSIGHT COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Oversight council established. new text end

new text begin The
Minnesota Financial Crimes Oversight Council is established to
provide guidance related to the investigation and prosecution of
identity theft and financial crime.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The council shall consist of the
following individuals or their designees:
new text end

new text begin (1) the commissioner of public safety;
new text end

new text begin (2) the attorney general;
new text end

new text begin (3) two chiefs of police, selected by the Minnesota Chiefs
of Police Association from police departments which participate
in the Minnesota Financial Crimes Task Force;
new text end

new text begin (4) two sheriffs, selected by the Minnesota Sheriffs
Association from sheriff departments which participate in the
Minnesota Financial Crimes Task Force;
new text end

new text begin (5) the United States attorney for the district of
Minnesota;
new text end

new text begin (6) one county attorney, selected by the Minnesota County
Attorneys Association;
new text end

new text begin (7) a representative from the United States Postal
Inspector's Office;
new text end

new text begin (8) a representative from a not-for-profit retail merchants
industry;
new text end

new text begin (9) a representative from a not-for-profit banking and
credit union industry;
new text end

new text begin (10) a representative from a not-for-profit association
representing senior citizens;
new text end

new text begin (11) the statewide commander described in subdivision 4;
and
new text end

new text begin (12) two additional members who shall be selected by the
council.
new text end

new text begin The council may adopt procedures to govern its conduct as
necessary and shall select a chair from among its members.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The council shall develop an overall
strategy to ameliorate the harm caused to the public by identity
theft and financial crime within the state of Minnesota. This
strategy may include the development of protocols and procedures
to investigate financial crimes and a structure for best
addressing these issues in a multijurisdictional manner.
Additionally, the council shall:
new text end

new text begin (1) establish a multijurisdictional statewide Minnesota
Financial Crimes Task Force to investigate major financial
crimes;
new text end

new text begin (2) choose a statewide commander who shall serve at the
pleasure of the council;
new text end

new text begin (3) assist the Department of Public Safety in developing an
objective grant application and review process that is free from
conflicts of interest;
new text end

new text begin (4) make funding recommendations to the commissioner of
public safety on grants to support efforts to combat identity
theft and financial crime;
new text end

new text begin (5) assist in developing a process to collect and share
information to improve the investigation and prosecution of
identity theft and financial crime;
new text end

new text begin (6) develop and approve an operational budget for the
office of the statewide commander and the council;
new text end

new text begin (7) establish fiscal procedures with the Department of
Public Safety on funding disbursements and allocation procedures
for approved council and task force operations and grants which
are funded under assessment fees collected in subdivision 9; and
new text end

new text begin (8) enter into such contracts as necessary to establish and
maintain a relationship with the retailers, financial
institutions, and other businesses to deal effectively with
identity theft and financial crime.
new text end

new text begin The task force described in clause (1) may consist of
members from local law enforcement agencies, federal law
enforcement agencies, state and federal prosecutor offices and
representatives from elderly victims, retail, and financial
institutions as described in subdivision 2, clauses (8), (9),
and (10).
new text end

new text begin Subd. 4. new text end

new text begin Statewide commander. new text end

new text begin The current task force
commander, serving under section 299A.68 shall transition the
current task force and remain in place as commander under the
council until July 1, 2008, at which time the commissioner of
public safety, upon the recommendation of the council, shall
appoint a statewide commander as chosen by the council. The
current commander shall be reappointed. The commander serving
in the unclassified service shall:
new text end

new text begin (1) coordinate and monitor all multijurisdictional identity
theft and financial crime enforcement activities;
new text end

new text begin (2) facilitate local efforts and ensure statewide
coordination with efforts to combat identity theft and financial
crime;
new text end

new text begin (3) facilitate training for personnel;
new text end

new text begin (4) monitor compliance with investigative protocols;
new text end

new text begin (5) implement an outcome evaluation and data quality
control process;
new text end

new text begin (6) be responsible for selection and removal for cause of
assigned task force investigators who are designated
participants under a memorandum of understanding and/or who
receive grant funding;
new text end

new text begin (7) provide supervision of task force investigators
assigned;
new text end

new text begin (8) submit a task force operational budget to the council
for approval; and
new text end

new text begin (9) submit quarterly task force activity reports to the
council.
new text end

new text begin Subd. 5. new text end

new text begin Participating officers; employment status. new text end

new text begin All
law enforcement officers selected to participate in the
Minnesota Financial Crimes Task Force must be licensed peace
officers as defined in section 626.84, subdivision 1, or
qualified federal law enforcement officers as defined in section
626.8453. Participating officers remain employees of the same
entity that employed them before joining any multijurisdictional
entity established under this section. Participating officers
are not employees of the state.
new text end

new text begin Subd. 6. new text end

new text begin Jurisdiction and powers. new text end

new text begin Law enforcement
officers participating in any multijurisdictional entity
established under this section have statewide jurisdiction to
conduct criminal investigations and have the same powers of
arrest as those possessed by a sheriff. The task force shall
retain the assigned originating reporting number for case
reporting purposes according to section 299A.68 and transferred
to this section effective July 1, 2005.
new text end

new text begin Subd. 7. new text end

new text begin Grants authorized. new text end

new text begin The commissioner of public
safety, upon recommendation of the council, shall make grants to
state and local units of government to combat identity theft and
financial crime. The commander, as funding permits, may prepare
a budget to establish four regional districts and funding grant
allocations programs outside the counties of Hennepin, Ramsey,
Anoka, Washington, and Dakota. The budget shall be reviewed and
approved by the council and recommended to the commissioner of
public safety to support these efforts. The council account
shall be transferred on or before each fiscal accounting
calendar quarter during each year on a recurring basis to its
fiscal agent under subdivision 3, clause (7).
new text end

new text begin Subd. 8. new text end

new text begin Financial crimes oversight council funding
account. new text end

new text begin The Minnesota Financial Crimes Oversight Council
funding account is created in the state treasury. Money
received from assessments under subdivision 9 is deposited into
the account. Money in the account is earmarked for the council
and must be used for investigation of identity theft and
financial crimes. All fees collected by the commissioner of
public safety under this subdivision must be deposited in the
state treasury and credited to the Minnesota Financial Crimes
Oversight Council funding account within the Department of
Public Safety. Money in the account is appropriated to the
council to administer this section. Assessment of the funds
shall begin July 1, 2005.
new text end

new text begin Subd. 9. new text end

new text begin Assessment fees. new text end

new text begin (a) Each Minnesota state
identification card or driver's license issued by the state of
Minnesota shall be assessed a fee of $1. A fee of $1 shall also
be assessed for renewal, replacement, or reinstatement cards or
licenses. The persons collecting assessments shall remit all
assessments to the commissioner of public safety for deposit
into a special account earmarked for the Minnesota Financial
Crimes Oversight Council. The council account shall be
transferred on or before each fiscal accounting calendar quarter
during each year on a recurring basis to its fiscal agent
established under subdivision 3, clause (7).
new text end

new text begin (b) The assessment fee increase generated under paragraph
(a) must be transmitted to the commissioner of public safety who
shall transfer funds generated, including any interest accrued,
into the special account earmarked for the Minnesota Financial
Crimes Oversight Council. This money, including interest, shall
be allocated quarterly to the Minnesota Financial Crimes
Oversight Council for appropriations and released to the
designated Minnesota Financial Crimes Task Force approved fiscal
agent account for its use under this section. The Minnesota
Financial Crimes Oversight Council shall use any remaining money
available at the end of the year to award grants in this section.
new text end

new text begin Subd. 10. new text end [VICTIMS' ASSISTANCE PROGRAM.] new text begin (a) The council
may establish a victims' assistance program to assist victims of
economic crimes and provide prevention and awareness programs.
The council may retain outside services of not-for-profit
organizations to assist in the development of delivery systems
to aid victims of financial crimes. Services to victims shall
not include any financial assistance to victims, but are limited
to helping victims obtain police assistance and giving direction
to victims for protecting personal accounts and identities.
Services include a victim 1-800 number, facsimile number, Web
site, telephone service Monday through Friday, e-mail response,
and interfaces to other helpful Web sites. Information about
victims gathered by the victim task force assistance program
shall be covered by the Data Privacy Act under chapter 13.
new text end

new text begin (b) The council may post or communicate through public
service announcements in newspapers, radio, television, cable
access, billboards, Internet, Web sites, and other normal
advertising channels a financial reward of up to $2,000 for tips
leading to the apprehension and successful prosecution of
individuals committing economic crimes. All rewards must meet
the Minnesota Financial Crimes Oversight Council standards. The
release of funds shall be made to an individual whose
information leads to the apprehension and prosecution of
offenders committing economic or financial crimes against
citizens or businesses in the state of Minnesota. All rewards
paid to an individual shall be reported to the Department of
Revenue along with the individual's Social Security number.
new text end

new text begin Subd. 11. new text end

new text begin Council and task force are
permanent. new text end

new text begin Notwithstanding section 15.059, this section does
not expire.
new text end

new text begin Subd. 12. new text end

new text begin Funding. new text end

new text begin The Minnesota Financial Crimes
Oversight Council may accept lawful grants and in-kind
contributions from any federal source or legal business or
individual not funded by this section for general operation
support, including personnel costs. These grants or in-kind
contributions are not to be directed toward the case of a
particular victim or business. The council fiscal agent shall
handle all funds approved by the council including in-kind
contributions.
new text end

new text begin Subd. 13. new text end

new text begin Forfeiture. new text end

new text begin Property seized by the task force
established by the council is subject to forfeiture pursuant to
sections 609.531, 609.5312, 609.5313, and 609.5315 if ownership
cannot be established. The council shall receive the proceeds
from the sale of all property that it properly seizes and that
is forfeited.
new text end

new text begin Subd. 14. new text end

new text begin Transfer equipment from current minnesota
financial crimes task force. new text end

new text begin All current equipment shall be
transferred from the Minnesota Financial Crimes Task Force
established under section 299A.68 to the Minnesota Financial
Crimes Oversight Council established under this section for use
by the Minnesota Financial Crimes Task Force formed under this
section, effective July 1, 2005.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 299A.68, is repealed.
new text end