1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; prohibiting state 1.3 contracts with vendors reincorporated in tax haven 1.4 countries; amending Minnesota Statutes 2002, section 1.5 16C.03, by adding a subdivision. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 2002, section 16C.03, is 1.8 amended by adding a subdivision to read: 1.9 Subd. 17. [INELIGIBLE VENDORS.] (a) No agency may enter 1.10 into or renew any contract with a corporation or its subsidiary 1.11 or other affiliate if the corporation has reincorporated in a 1.12 tax haven country and the United States is the principal market 1.13 for the public trading of the corporation's stock. The 1.14 commissioner shall require each vendor submitting a bid or 1.15 contract or otherwise entering into a contract with an agency to 1.16 certify that the vendor is not ineligible under this 1.17 subdivision. Any person who submits a false certification under 1.18 this subdivision is subject to the penalties of perjury in 1.19 section 609.48. 1.20 (b) For the purposes of this subdivision, "tax haven 1.21 country" means any of the following: Barbados, Bermuda, British 1.22 Virgin Islands, Cayman Islands, Commonwealth of the Bahamas, 1.23 Cyprus, Gibraltar, Isle of Man, the Principality of 1.24 Liechtenstein, the Principality of Monaco, the Republic of the 1.25 Seychelles, and any other country that has no corporate income 2.1 tax or has an effective tax rate of less than ten percent on 2.2 income that does not arise in or is not derived from that 2.3 country. A tax haven country does not include any country that 2.4 is a signatory to a treaty that would contravene this provision. 2.5 (c) The commissioner may waive paragraph (a) when the 2.6 commissioner has made a written finding that the contract is 2.7 necessary to meet a compelling public interest. A "compelling 2.8 public interest" includes, but is not limited to, ensuring the 2.9 provision of essential services and ensuring the public health 2.10 and safety.