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Minnesota Legislature

Office of the Revisor of Statutes

SF 2806

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to economic development; clarifying conflict of interest rules for local
economic development authorities; providing criminal penalties; amending
Minnesota Statutes 2006, section 469.098.

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

Section 1.

Minnesota Statutes 2006, section 469.098, is amended to read:


469.098 CONFLICT OF INTEREST.

new text begin Subdivision 1. new text end

new text begin Disclosure; criminal penalty. new text end

deleted text beginExcept as authorized in section
471.88 a commissioner, officer, or employee of an authority must not acquire any financial
interest, direct or indirect, in any project or in any property included or planned to be
included in any project, nor shall the person have any financial interest, direct or indirect,
in any contract or proposed contract for materials or service to be furnished or used in
connection with any project.
deleted text end new text begin(a) Before taking an action or making a decision which could
substantially affect the commissioner's or an employee's financial interests or those of an
organization with which the commissioner or an employee is associated, a commissioner
or employee of an authority shall:
new text end

new text begin (1) prepare a written statement describing the matter requiring action or decision and
the nature of the potential conflict of interest; and
new text end

new text begin (2) submit the statement to the commissioners of the authority.
new text end

new text begin (b) The disclosure under paragraph (a) shall be entered upon the minutes of the
authority at its next meeting. The disclosure statement must be submitted no later than
one week after the employee or commissioner becomes aware of the potential conflict of
interest. However, no disclosure statement is required if the effect on the commissioner or
employee of the decision or act will be no greater than on other members of the business,
profession, or occupation or if the effect on the organization with which the commissioner
or employee is affiliated is indirect, remote, and insubstantial.
new text end

new text begin (c) A potential conflict of interest is present if the commissioner or employee knows
or has reason to know that the organization with which the commissioner or employee is
affiliated is, or is reasonably likely to become, a participant in a project or development
which will be affected by the action or decision.
new text end

new text begin (d) Any individual who knowingly fails to submit a statement required by this
subdivision or submits a statement which the individual knows contains false information
or omits required information is guilty of a misdemeanor.
new text end

new text begin Subd. 2. new text end

new text begin Effect of disclosure; criminal penalty. new text end

new text begin (a) If an employee has a potential
conflict of interest, the employee's superior shall immediately assign the matter to another
employee who does not have a potential conflict of interest.
new text end

new text begin (b) A commissioner who has a potential conflict of interest shall not attempt to
influence an employee in any matter related to the action or decision in question, shall not
take part in the action or decision, and shall not be counted toward a quorum during the
portion of any meeting of the authority in which the action or decision is to be considered.
new text end

new text begin (c) Any individual who knowingly violates this subdivision is guilty of a
misdemeanor.
new text end

new text begin Subd. 3. new text end

new text begin Conflicts forbidden; criminal penalty. new text end

new text begin A commissioner or employee
of an authority who knowingly takes part in any manner in making any sale, lease, or
contract in the commissioner's or employee's official capacity in which the commissioner
or employee has a personal financial interest is guilty of a misdemeanor.
new text end

new text begin Subd. 4. new text end

new text begin Agent or attorney. new text end

new text begin For one year after termination of a position as a
commissioner or employee of an authority, no former commissioner or former employee
of an authority shall appear personally before any court or governmental department
or agency as agent or attorney for anyone other than the authority in connection with
any proceeding, application, request for ruling or other determination, contract, claim,
controversy, charge, accusation, arrest, or other particular matter in which the authority is
substantially interested, and with respect to which the commissioner or employee took any
action or made any decision as a commissioner or employee of the authority at any time
within a period of one year prior to the termination of that position.
new text end

new text begin Subd. 5. new text end

new text begin Limitations. new text end

new text begin With respect to each program established by the authority
to provide financial assistance or financing for real property other than rental assistance
programs, an employee or commissioner may not receive such financial assistance or
financing more than once.
new text end

new text begin Subd. 6. new text end

new text begin Injunction. new text end

new text begin The county attorney may seek an injunction in the district
court to enforce the provisions of this section.
new text end

new text begin Subd. 7. new text end

new text begin Exceptions. new text end

new text begin The exceptions in section 471.88 apply to this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
except for the criminal penalties, which are effective June 1, 2008, and apply to crimes
committed on or after that date.
new text end