SF 2821

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; prohibiting state contracts with tax haven countries;
amending Minnesota Statutes 2004, section 16C.03, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 16C.03, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Ineligible vendors. new text end

new text begin (a) No agency may enter into or renew any contract
with a corporation or its subsidiary or other affiliate if the corporation is incorporated in a
tax haven country and the United States is the principal market for the public trading of
the corporation's stock. The commissioner shall require each vendor submitting a bid or
contract or otherwise entering into a contract with an agency to certify that the vendor is
not ineligible under this subdivision.
new text end

new text begin (b) For the purposes of this subdivision, "tax haven country" means any country that
has no corporate income tax or has an effective tax rate of less than ten percent on income
that does not arise in or is not derived from that country. A tax haven country does not
include any country that is a signatory to a treaty that would contravene this provision.
new text end

new text begin (c) The commissioner may waive paragraph (a) when the commissioner has made
a written finding that the contract is necessary to meet a compelling public interest. A
"compelling public interest" includes, but is not limited to, ensuring the provision of
essential services and ensuring the public health and safety.
new text end