HF 2176

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; authorizing the disclosure of certain data to the state
auditor for purposes of job opportunity building zone audits; requiring qualified
businesses to file a report of job opportunity building zone tax benefits; amending
Minnesota Statutes 2006, sections 268.19, subdivision 1; 270B.15; 289A.12, by
adding a subdivision; 469.3201.

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

Section 1.

Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as otherwise provided by this section, data
gathered from any person pursuant to the administration of the Minnesota Unemployment
Insurance Law are private data on individuals or nonpublic data not on individuals as
defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant
to a district court order or section 13.05. A subpoena shall not be considered a district
court order. These data may be disseminated to and used by the following agencies
without the consent of the subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) human rights agencies within Minnesota that have enforcement powers;

(5) the Department of Revenue only to the extent necessary for its duties under
Minnesota laws;

(6) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's
recipients;

(7) the Department of Labor and Industry and the Division of Insurance Fraud
Prevention in the Department of Commerce on an interchangeable basis with the
department for uses consistent with the administration of their duties under Minnesota law;

(8) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(9) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(10) local, state, and federal law enforcement agencies for the sole purpose of
ascertaining the last known address and employment location of a person who is the
subject of a criminal investigation;

(11) the federal Immigration and Naturalization Service shall have access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; deleted text begin and
deleted text end

(12) the Department of Health solely for the purposes of epidemiologic
investigations deleted text begin . deleted text end new text begin ; and
new text end

new text begin (13) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation pursuant to section 268.182 are confidential as to data on
individuals and protected nonpublic data not on individuals as defined in section 13.02,
subdivisions 3 and 13, and must not be disclosed except pursuant to statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department pursuant to the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 270B.15, is amended to read:

270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR new text begin AND STATE
AUDITOR new text end .

new text begin (a) new text end Returns and return information must be disclosed to the legislative auditor to the
extent necessary for the legislative auditor to carry out sections 3.97 to 3.979.

new text begin (b) The commissioner must disclose return information, including the report
required under section 289A.12, subdivision 15, to the state auditor to the extent necessary
to conduct audits of job opportunity building zones as required under section 469.3201.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Report of job opportunity zone benefits; penalty for failure to file
report. new text end

new text begin (a) By October 15 of each year, every qualified business, as defined under section
469.310, subdivision 11, must file with the commissioner, on a form prescribed by the
commissioner, a report listing the tax benefits under section 469.315 received by the
business for the previous year.
new text end

new text begin (b) The commissioner shall send notice to each business that fails to timely submit
the report required under paragraph (a). The notice shall demand that the business submit
the report within 60 days. Where good cause exists, the commissioner may extend
the period for submitting the report as long as a request for extension is filed by the
business before the expiration of the 60-day period. The commissioner shall notify the
commissioner of the Department of Employment and Economic Development and the
appropriate job opportunity subzone administrator whenever notice is sent to a business
under this paragraph.
new text end

new text begin (c) A business that fails to submit the report as required under paragraph (b) is no
longer a qualified business under section 469.310, subdivision 11, and is subject to the
repayment provisions of section 469.319.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with reports required to be
filed October 15, 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 469.3201, is amended to read:

469.3201 deleted text begin JOBZ EXPENDITURE LIMITATIONS; AUDITS deleted text end new text begin STATE
AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND
BUSINESS SUBSIDY AGREEMENTS new text end .

The Tax Increment Financing, Investment and Finance Division of the Office of the
State Auditor must annually audit the creation and operation of all job opportunity building
zones and business subsidy agreements entered into under Minnesota Statutes, sections
469.310 to 469.320. new text begin To the extent necessary to perform this audit, the state auditor may
request from the commissioner of revenue tax return information of taxpayers who are
eligible to receive tax benefits authorized under section 469.315. To the extent necessary
to perform this audit, the state auditor may request from the commissioner of employment
and economic development wage detail report information required under section 268.044
of taxpayers eligible to receive tax benefits authorized under section 469.315.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end