MN Legislature

Accessibility menu

Session laws use visual text formatting such as stricken text to denote deleted language, and underlined text to denote new language. For users of the jaws screenreader it is recommended to configure jaws to use the proofreading scheme which will alter the pitch of the reading voice when reading stricken and underlined text. Instructions for configuring your jaws reader are provided by following this link.
If you can not or do not wish to configure your screen reader, deleted language will begin with the phrase "deleted text begin" and be followed by the phrase "deleted text end", new language will begin with the phrase "new text begin" and be followed by "new text end". Skip to text of Chapter 184.

Menu

Revisor of Statutes Menu

Authenticate

Pdf

1989 Minnesota Session Laws

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 184-H.F.No. 243 
           An act relating to the department of revenue; 
          recodifying information and disclosure provisions to 
          increase uniformity of treatment and comply with the 
          data privacy act; amending Minnesota Statutes 1988, 
          sections 60A.17, subdivision 20; 82.27, subdivision 7; 
          147.091, subdivision 7; 148.10, subdivision 5; 
          148B.06, subdivision 3; 150A.08, subdivision 9; 
          171.31; 176.186; 176.231, subdivision 9; 256.978; 
          270.052; 270.064; 270.66, subdivision 3; 270.72, 
          subdivision 4; 270.73, subdivision 1; 270A.11; 
          290.081; 290.174; 290.371, subdivision 5; 290.50, 
          subdivision 6; 290.523, subdivision 1; 290.91; 290.92, 
          subdivisions 5a, 17, and 26; 290A.112, subdivision 1; 
          297A.07; 326.20, subdivision 4; and 469.173, 
          subdivision 5; proposing coding for new law as 
          Minnesota Statutes, chapter 270B; repealing Minnesota 
          Statutes 1988, sections 13.70; 290.05, subdivision 7; 
          290.61; 290A.17; 291.48; and 297A.43. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
     Section 1.  [270B.01] [DEFINITIONS.] 
    Subdivision 1.  [WORDS, TERMS, AND PHRASES.] The 
definitions in this section apply to this chapter. 
    Subd. 2.  [RETURN.] "Return" means a tax or information 
return, declaration of estimated tax, or claim for refund under 
Minnesota tax laws that is filed with the commissioner.  
"Return" includes any amendment or supplement to those 
documents, including supporting schedules, attachments, or lists 
that are supplemental to, or part of, the return.  "Return" also 
includes any report, application, or other form required to be 
filed with the commissioner under Minnesota tax laws. 
    Subd. 3.  [RETURN INFORMATION.] "Return information" means 
a taxpayer's identity, the nature, source, or amount of the 
taxpayer's income, payments, receipts, deductions, exemptions, 
credits, assets, liabilities, net worth, tax liability, tax 
withheld, deficiencies, overassessments, or tax payments, 
whether the taxpayer's return was, is being, or will be examined 
or subject to other investigation or processing, or any other 
data, received by, recorded by, prepared by, given to, or 
collected by the commissioner with respect to the determination 
of the existence, possible existence, or amount of liability of 
any person under Minnesota tax laws for any tax, penalty, 
interest, fine, forfeiture, or other imposition, or offense.  
"Return information" includes the failure to file any return 
required to be filed with the commissioner under Minnesota tax 
laws.  The term does not include data in a form that cannot be 
associated with, or otherwise identify, directly or indirectly, 
a particular taxpayer. 
    Subd. 4.  [TAX ADMINISTRATION.] "Tax administration" means: 
    (1) the administration, management, conduct, direction, and 
supervision of the execution and application of Minnesota tax 
laws; and 
    (2) the development and formulation of state tax policy 
relating to the existing or proposed tax laws and related 
statutes. 
    "Tax administration" includes assessment, collection, 
enforcement, litigation, publication, and statistical gathering 
functions under existing or proposed tax laws and related 
statutes. 
    Subd. 5.  [TAXPAYER IDENTITY.] "Taxpayer identity" means 
the name of a person with respect to whom a return is filed, or 
the person's mailing address, or the person's taxpayer 
identifying number. 
    Subd. 6.  [INSPECTED; INSPECTION.] "Inspected" and 
"inspection" mean any examination of a return or return 
information. 
    Subd. 7.  [DISCLOSURE.] "Disclosure" means the making known 
to any person in any manner whatever a return or return 
information. 
    Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
chapter only, "Minnesota tax laws" means the taxes administered 
by or paid to the commissioner under chapters 290, 290A, 291, 
and 297A, and includes any laws for the assessment, collection, 
and enforcement of those taxes.  
    Subd. 9.  [COMMISSIONER.] "Commissioner" means the 
commissioner of revenue.  
    Subd. 10.  [PERSON.] "Person" includes individuals, 
fiduciaries, estates, trusts, partnerships, and corporations. 
    Subd. 11.  [TAXPAYER.] "Taxpayer" means a person required 
to file, or who files, a return with the commissioner under 
Minnesota tax laws. 
    Subd. 12.  [DEPARTMENT OF REVENUE DATA.] "Department of 
revenue data" means data regarding tax administration collected, 
created, or maintained by the department of revenue. 
    Sec. 2.  [270B.02] [CLASSIFICATION OF DATA.] 
    Subdivision 1.  [GENERAL RULE.] Except as otherwise 
provided in this chapter, returns and return information are 
private data on individuals or nonpublic data as defined in 
section 13.02, subdivisions 9 and 12.  Except as authorized by 
this chapter, the department of revenue, the commissioner, an 
officer or employee or former officer or employee of the 
department of revenue, a person engaged or retained by the 
department on an independent contract basis, or a person who, 
under sections 270B.05 to 270B.15, is permitted to inspect 
returns or return information may not disclose returns or return 
information. 
    Subd. 2.  [PROTECTED NONPUBLIC DATA.] The following are 
protected nonpublic data as defined in section 13.02, 
subdivision 13: 
     (1) criteria for determining which computer processed 
returns are selected for audit; 
     (2) criteria for determining which returns are selected for 
an in-depth audit; and 
     (3) criteria for determining which accounts receivable 
balances below a stated amount are written off or canceled.  
    Subd. 3.  [CONFIDENTIAL DATA ON INDIVIDUALS; PROTECTED 
NONPUBLIC DATA.] (a) Except as provided in paragraph (b), names 
of informers, informer letters, and other unsolicited data, in 
whatever form, given to the department of revenue by a person, 
other than the data subject, that inform that a specific 
taxpayer is not or may not be in compliance with tax laws are 
confidential data on individuals or protected nonpublic data as 
defined in section 13.02, subdivisions 3 and 13. 
     (b) Data under paragraph (a) may be disclosed with the 
consent of the informer or upon a written finding by a court 
that the information provided by the informer was false and that 
there is evidence that the information was provided in bad 
faith.  This subdivision does not alter disclosure 
responsibilities or obligations under the rules of criminal 
procedure. 
    Subd. 4.  [PUBLIC DATA.] Information required to be filed 
by exempt individuals, corporations, organizations, estates, and 
trusts under section 290.05, subdivisions 1 and 4, is public 
data on individuals or public data not on individuals, as 
defined in section 13.02, subdivisions 14 and 15.  The 
commissioner may publish a list of organizations exempt from 
taxation under section 290.05, except that the name or address 
of any contributor to any organization that is or was exempt, or 
that has applied for tax exempt status, or any other information 
that could not be disclosed under section 6104 of the Internal 
Revenue Code of 1986, as amended through December 31, 1988, is 
classified as private data on individuals or nonpublic data as 
defined in section 13.02, subdivisions 9 and 12. 
     Subd. 5.  [MAINTAINING CLASSIFICATIONS.] Notwithstanding 
section 13.03, subdivision 7, returns and return information 
retain the classification designated under this chapter.  
Notwithstanding sections 13.03, subdivision 8, and 13.10, 
department of revenue data classified under this chapter as 
nonpublic data, protected nonpublic data, private data on 
individuals, or confidential data on individuals remain so 
classified. 
    Sec. 3.  [270B.03] [DISCLOSURE TO DATA SUBJECT.] 
    Subdivision 1.  [WHO MAY INSPECT.] Returns and return 
information must, on written request, be made open to inspection 
by or disclosure to the data subject.  For purposes of this 
chapter, the following are the data subject: 
    (1) in the case of an individual return, that individual; 
    (2) in the case of an income tax return filed jointly, 
either of the individuals with respect to whom the return is 
filed; 
    (3) in the case of a partnership return, any person who was 
a member of the partnership during any part of the period 
covered by the return; 
    (4) in the case of the return of a corporation or its 
subsidiary: 
    (i) any person designated by resolution of the board of 
directors or other similar governing body; 
    (ii) any officer or employee of the corporation upon 
written request signed by any officer and attested to by the 
secretary or another officer; 
    (iii) any bona fide shareholder of record owning one 
percent or more of the outstanding stock of the corporation; 
    (iv) if the corporation is a corporation that has made an 
election under section 1362 of the Internal Revenue Code of 
1986, as amended through December 31, 1988, any person who was a 
shareholder during any part of the period covered by the return 
during which an election was in effect; or 
    (v) if the corporation has been dissolved, any person 
authorized by state law to act for the corporation or any person 
who would have been authorized if the corporation had not been 
dissolved; 
    (5) in the case of an estate return: 
    (i) the personal representative or trustee of the estate, 
and 
    (ii) any heir at law, next of kin, or beneficiary of the 
estate, but only if the commissioner finds that the heir at law, 
next of kin, or beneficiary has a material interest that will be 
affected by information contained in the return; 
    (6) in the case of a trust return: 
    (i) the trustee or trustees, jointly or separately; and 
    (ii) any beneficiary of the trust, but only if the 
commissioner finds that the beneficiary has a material interest 
that will be affected by information contained in the return; 
and 
    (7) if liability has been assessed to a transferee under 
section 290.29, the transferee is the data subject with regard 
to the returns and return information relating to the assessed 
liability. 
    Subd. 2.  [INCAPACITATION.] If an individual is legally 
incapacitated under sections 525.539 to 525.61, or similar laws 
of another state, that individual's return and return 
information is, upon written request, open to inspection by or 
disclosure to the guardian or conservator appointed for the 
individual or the individual's estate. 
    Subd. 3.  [DECEASED INDIVIDUALS.] Notwithstanding section 
13.10, a return filed by or on behalf of a decedent is open to 
inspection by or disclosure to: 
    (1) the personal representative of the decedent's estate or 
trustee appointed under section 573.02, subdivision 3, or a 
similar law of another state; and 
    (2) any heir at law, next of kin, or beneficiary under the 
will of the decedent, or a donee of property, but only if the 
commissioner finds that the heir at law, next of kin, 
beneficiary, or donee has a material interest that will be 
affected by information contained in the return.  
    Subd. 4.  [TITLE 11 OF THE UNITED STATES CODE AND 
RECEIVERSHIP PROCEEDINGS.] (a) If the commissioner finds that 
the trustee or receiver, in that person's fiduciary capacity, 
has a material interest that will be affected by information 
contained in the return, a return is open to inspection by or 
disclosure to the trustee or receiver if: 
    (1) there is a trustee in a title 11 (United States 
Bankruptcy Code) case in which the debtor is the person with 
respect to whom the return is filed; or 
    (2) substantially all of the property of the person with 
respect to whom the return is filed is in the hands of a 
receiver. 
    (b) In an involuntary bankruptcy case of an individual, no 
disclosure may be made under paragraph (a) until the order for 
relief has been entered by the court having jurisdiction of the 
case, unless the court finds that disclosure is appropriate for 
purposes of determining whether an order for relief should be 
entered. 
    Subd. 5.  [ATTORNEY IN FACT.] Any return or return 
information to which this section applies is, upon written 
request, open to inspection by or disclosure to the attorney in 
fact duly authorized in a writing signed by the data subject or 
to the person or persons designated by the data subject in a 
written request for or consent to the disclosure. 
    Subd. 6.  [INVESTIGATIVE DATA.] Notwithstanding any law to 
the contrary, the disclosure of investigative data collected or 
created by the department of revenue in order to prepare a case 
against a person, whether known or unknown, for the commission 
of a crime is governed by section 13.82, subdivision 5, during 
an investigation.  When the investigation becomes inactive, as 
defined in section 13.82, subdivision 5, the previous 
classifications become effective. 
    Subd. 7.  [REQUESTS.] The commissioner may prescribe a form 
to be completed by the data subject requesting or authorizing 
inspection or disclosure of returns and return information.  
     Subd. 8.  [ACCESS TO DATA.] Section 13.03, subdivision 3, 
applies to requests for access to data under this section. 
    Sec. 4.  [270B.04] [STATISTICAL STUDIES.] 
    Subdivision 1.  [GENERAL RULE.] The commissioner may 
compile statistical studies from information derived from 
returns and return information and may disclose the results of 
those studies.  In addition, the commissioner may disclose 
statistical information from returns and return information to 
the governor, legislature, or another state agency to allow 
those governmental entities to conduct their own statistical 
studies. 
    Subd. 2.  [PROTECTION FROM DISCLOSURE.] Notwithstanding 
subdivision 1, the commissioner may not disclose the results of 
a study and may not disclose any statistical information if, as 
a result of that disclosure: 
    (1) the identity of a taxpayer who filed a return would be 
disclosed; 
    (2) the identity of a taxpayer could reasonably be 
associated with any of the information that was derived from the 
taxpayer's return; or 
    (3) the ability of the commissioner to obtain information 
from federal tax returns would, in the commissioner's judgment, 
be jeopardized in any manner. 
    Sec. 5.  [270B.05] [DISCLOSURE IN TAX PROCEEDING.] 
    Subdivision 1.  [JUDICIAL OR ADMINISTRATIVE PROCEEDING.] A 
return or return information may be disclosed in a judicial or 
administrative proceeding pertaining to or relating to tax 
administration as follows: 
    (1) if the taxpayer is a party to the proceeding, or the 
proceeding arose out of, or in connection with, a determination 
of the taxpayer's civil or criminal liability or the collection 
of the taxpayer's civil liability, with respect to a tax imposed 
under Minnesota tax laws; 
    (2) if the treatment of an item reflected on the return is 
directly related to the resolution of an issue in the 
proceeding; or 
    (3) if the return or return information directly relates to 
a transactional relationship between the taxpayer and a person 
who is a party to the proceeding when that relationship directly 
affects the resolution of an issue in the proceeding. 
    Subd. 2.  [GOVERNMENT LEGAL REPRESENTATIVES.] A return or 
return information may be inspected by or disclosed to the 
attorney general or other legal representatives of the state, 
county, or municipality in a proceeding involving or relating to 
tax administration as follows:  
    (1) if the taxpayer is or may be a party to the proceeding, 
or the proceeding arose out of, or in connection with, the 
determination of the taxpayer's civil or criminal liability or 
the collection of the taxpayer's civil liability with respect to 
any tax imposed under Minnesota tax laws; 
    (2) if the treatment of an item reflected on the return is 
or may be related to the resolution of an issue in the 
proceeding; or 
    (3) if the return or return information relates or may 
relate to a transactional relationship between the taxpayer and 
a person who is or may be a party to the proceeding when that 
relationship affects or may affect the resolution of an issue in 
the proceeding. 
    Sec. 6.  [270B.06] [DISCLOSURE IN INVESTIGATION.] 
    Subdivision 1.  [CRITERIA FOR DISCLOSURE.] In connection 
with official duties related to tax administration, the 
commissioner, the attorney general, or other legal 
representative of the state, county, or municipality may 
disclose returns or return information to the extent that the 
disclosure is necessary in obtaining information that is not 
otherwise reasonably available with respect to the correct 
determination of tax, liability for tax, or the amount to be 
collected, or with respect to the enforcement of another 
provision of the Minnesota tax laws. 
    Subd. 2.  [THIRD PARTY RETURNS.] The commissioner, the 
attorney general, or other legal representative of the state, 
county, or municipality may disclose pertinent return 
information of a third party to a taxpayer subject to an 
investigation pertaining to tax administration if the treatment 
of an item reflected on the third party return is or may be 
related to the resolution of an issue in the investigation. 
     Subd. 3.  [DISCLOSURE TO EMPLOYER.] The commissioner may 
disclose returns and return information of an employee to an 
employer for the purpose of and to the extent necessary to 
administer section 290.92, subdivision 5a. 
    Sec. 7.  [270B.07] [LICENSE CLEARANCE.] 
    Subdivision 1.  [DISCLOSURE TO LICENSING AUTHORITIES.] The 
commissioner may disclose return information with respect to 
returns filed under Minnesota tax laws to licensing authorities 
of the state or political subdivisions of the state to the 
extent necessary to enforce the license clearance programs under 
sections 60A.17, 82.27, 147.091, 148.10, 150A.08, and 270.72. 
    Subd. 2.  [DISCLOSURE TO COURT AND BOARD OF PROFESSIONAL 
RESPONSIBILITY.] The commissioner may disclose return 
information to the Minnesota Supreme Court and the board of 
professional responsibility regarding the amount of an 
uncontested delinquent tax due under the Minnesota tax law or 
the failure to file a tax return due under Minnesota tax laws by 
an attorney admitted to practice law in this state under chapter 
481. 
      Subd. 3.  [EXTENT OF DISCLOSURE.] Data that may be 
disclosed under this section are limited to the name, address, 
amount of delinquency, and whether a return has been filed by an 
applicant for a license, licensee, or attorney. 
    Sec. 8.  [270B.08] [SALES TAX PERMITS.] 
    Subdivision 1.  [PERMIT INFORMATION.] The commissioner may 
disclose to any person making an inquiry regarding the issuance 
of a sales tax permit to a specific retailer whether a permit 
has been issued to the retailer, the name and address of the 
permit holder, the business name and location, the sales and use 
tax account number, and the date of issuance of the permit. 
    Subd. 2.  [REVOCATION.] When a taxpayer's sales tax permit 
has been revoked under section 297A.07, the commissioner may 
disclose data identifying the holder of the revoked permit and 
the basis for the revocation. 
    Sec. 9.  [270B.09] [CONTRACTS WITH THE STATE; SETOFF.] 
    The commissioner may disclose to the department of finance 
or any state agency making payment to a vendor as described in 
section 270.66 or 290.97 whether the vendor has an uncontested 
delinquent tax liability owed to the commissioner and the amount 
of any liability. 
    Sec. 10.  [270B.10] [INFORMATION IN PUBLIC RECORD.] 
    A return or return information that is a matter of public 
record is not subject to this chapter. 
    Sec. 11.  [270B.11] [DISCLOSURE TO LOCATE TAXPAYERS OWED 
REFUND.] 
    To locate the named payee on state warrants issued under 
the Minnesota tax laws and undeliverable by the United States 
postal service, the commissioner may publish in a newspaper of 
general circulation in this state, or make available to radio or 
television stations, a list of the name and the last known 
address of the payee as shown on the returns filed with the 
commissioner.  The list must not contain any additional 
information set forth on a return.  The commissioner may exclude 
the names of payees whose refunds are in an amount that is less 
than a minimal amount to be determined by the commissioner.  The 
publication or announcement must include instructions on how to 
claim the warrants. 
    Sec. 12.  [270B.12] [DISCLOSURE TO STATE AND FEDERAL 
AUTHORITIES.] 
    Subdivision 1.  [IRS; STATE RECIPROCITY.] Returns and 
return information may be open to inspection by or disclosure to 
the Internal Revenue Service, the Multistate Tax Commission, or 
to any state agency, body, or commission, or its legal 
representatives, that is charged under the laws of that state 
with the responsibility for administration of state tax laws.  
Inspection or disclosure is permitted to the extent that the 
state agency, body, or commission gives similar rights of 
inspection or disclosure to officials of this state.  The 
commissioner may enter into an agreement with the Internal 
Revenue Service or another state agency, body, or commission 
outlining procedures to implement the exchange of information 
under this section, but an agreement may provide for the 
disclosure of data only to the extent allowed under this 
section.  Inspection or disclosure is allowed only for the 
purpose of and to the extent necessary for the administration of 
tax laws. 
    Subd. 2.  [MUNICIPALITIES.] Sales and use tax returns and 
return information are open to inspection by or disclosure to 
the taxing officials of any municipality of the state of 
Minnesota that has a local sales or use tax, for the purpose of 
and to the extent necessary for the administration of the local 
sales and use tax. 
    Subd. 3.  [REQUEST FORM; NAMED INSPECTOR.] Inspections and 
disclosures permitted under subdivisions 1 and 2 are allowed 
only upon written request in a form prescribed by the 
commissioner and may be made only to the representatives of the 
agency, body, or commission named in the written request as the 
individuals who are to inspect or receive the returns or return 
information on behalf of the agency, body, or commission. 
    Subd. 4.  [DEPARTMENT OF PUBLIC SAFETY.] The commissioner 
may disclose return information to the department of public 
safety for the purpose of and to the extent necessary to 
administer section 270.73. 
    Subd. 5.  [PROTECTION OF RETURNS FROM IRS OR OTHER STATES.] 
Disclosure of returns and return information received by the 
commissioner from the Internal Revenue Service or another state 
or received by the Internal Revenue Service or another state 
from the commissioner is governed by the law applicable to the 
Internal Revenue Service or state that more stringently protects 
the information from disclosure. 
     Subd. 6.  [DEPARTMENT OF REVENUE EMPLOYEES; ATTORNEY 
GENERAL.] Returns and return information may be open to 
inspection by or disclosure to an employee of the department of 
revenue and the attorney general for the purpose of and to the 
extent necessary to administer tax laws. 
    Sec. 13.  [270B.13] [VENDORS HIRED FOR TAX ADMINISTRATION 
PURPOSES.] 
    Subdivision 1.  [ACCESS TO DATA.] Independent contractors 
and vendors performing services for the department of revenue in 
connection with the following activities have access to private 
data on individuals and nonpublic data to the extent necessary 
to perform that service:  (1) the processing of returns and the 
payment of tax; (2) developing, implementing, and using computer 
programs or equipment; (3) microfilming returns and return 
information; (4) preparing tax return labels; or (5) any other 
authorized services connected to tax administration. 
     Subd. 2.  [PROCEDURES TO PROTECT INFORMATION.] An 
independent contractor or a vendor performing services under 
subdivision 1 must establish procedures for safeguarding the 
information. 
    Sec. 14.  [270B.14] [DISCLOSURE FOR PURPOSES OTHER THAN TAX 
ADMINISTRATION.] 
    Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
SERVICES.] (a) On the request of the commissioner of human 
services, the commissioner shall disclose return information 
regarding taxes imposed by chapter 290, and claims for refunds 
under chapter 290A, to the extent provided in paragraph (b) and 
for the purposes set forth in paragraph (c). 
    (b) Data that may be disclosed are limited to data relating 
to the identity, whereabouts, employment, income, and property 
of a person owing or alleged to be owing an obligation of child 
support. 
    (c) The commissioner of human services may request data 
only for the purposes of carrying out the child support 
enforcement program and to assist in the location of parents who 
have, or appear to have, deserted their children.  Data received 
may be used only as set forth in section 256.978. 
    (d) The commissioner shall provide the records and 
information necessary to administer the supplemental housing 
allowance to the commissioner of human services.  
    Subd. 2.  [DISCLOSURE TO DEPARTMENT OF JOBS AND 
TRAINING.] (a) Data relating to individuals are treated as 
follows: 
    (1) Return information may be disclosed to the department 
of jobs and training to the extent provided in clause (2) and 
for the purposes provided in clause (3). 
    (2) The data that may be disclosed is limited to the amount 
of gross income earned by an individual, the total amounts of 
earnings from each employer, and the employer's name. 
    (3) Data may be requested pertaining only to individuals 
who have claimed benefits under sections 268.03 to 268.231 and 
only if the individuals are the subject of investigations based 
on other information available to the department of jobs and 
training.  Data received may be used only as set forth in 
section 268.12, subdivision 12, clause (d). 
     (b) Data pertaining to corporations or other employing 
units may be disclosed to the department of jobs and training to 
the extent necessary for the proper enforcement of chapter 268. 
    Subd. 3.  [ADMINISTRATION OF ENTERPRISE ZONE PROGRAM.] The 
commissioner may disclose return information relating to the 
taxes imposed by chapters 290 and 297A to the department of 
trade and economic development or a municipality receiving an 
enterprise zone designation under section 469.169 but only as 
necessary to administer the funding limitations under section 
469.169, subdivision 7. 
    Subd. 4.  [REVENUE RECAPTURE.] (a) The commissioner may 
disclose return information to a claimant agency as defined in 
section 270A.03, subdivision 2, with respect to returns filed 
under chapters 290 and 290A, as limited by paragraph (b) as 
necessary to accomplish the intent of chapter 270A. 
    (b) The commissioner may disclose to the claimant agency 
only the name, address, social security number and the amount of 
refund of a debtor, as defined in section 270A.03, subdivision 4.
    Subd. 5.  [CHILD SUPPORT DEBTORS.] The commissioner may 
disclose returns and return information with respect to returns 
filed under chapter 290, to the extent necessary to accomplish 
the intent of section 290.50, subdivision 6, providing for the 
withholding of income tax refunds from child support debtors 
pursuant to court order. 
     Subd. 6.  [BUSINESS ACTIVITIES REPORT.] The commissioner 
may disclose information regarding the filing of a report or a 
return to the extent provided in and for the purpose of section 
290.371. 
     Subd. 7.  [MINNESOTA RACING COMMISSION.] The commissioner 
may disclose return information relating to the taxes imposed by 
chapter 290 to the Minnesota racing commission with respect to 
an applicant or a holder of a license issued by the Minnesota 
racing commission or an owner of a horse entered in an event 
licensed by the Minnesota racing commission. 
    Subd. 8.  [EXCHANGE BETWEEN DEPARTMENTS OF JOBS AND 
TRAINING, LABOR AND INDUSTRY, AND REVENUE.] Notwithstanding any 
law to the contrary, the departments of jobs and training, labor 
and industry, and revenue may exchange information on a 
reciprocal basis.  Data that may be disclosed are limited to 
data used in determining whether a business is an employer or a 
contracting agent. 
    Subd. 9.  [REQUESTS FOR DATA.] Requests for data under this 
section must be in the form the commissioner prescribes. 
    Subd. 10.  [PROCEDURES TO PROTECT INFORMATION.] A state 
agency or municipality receiving department of revenue data 
under this chapter must establish procedures for safeguarding 
the information. 
    Sec. 15.  [270B.15] [DISCLOSURE TO LEGISLATIVE AUDITOR.] 
    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 3.98. 
    Sec. 16.  [270B.16] [DISCOVERY OF REVENUE DATA.] 
    Notwithstanding any law to the contrary, data collected by 
the department of revenue are not subject to discovery in a 
legal action, other than an action or proceeding in connection 
with tax administration, unless disclosure of the data is 
authorized under this chapter.  
    Sec. 17.  [270B.17] [REMEDIES.] 
    The civil remedies provided in section 13.08 are available 
to remedy violations of any provision of this chapter.  
    Sec. 18.  [270B.18] [CRIMINAL PENALTIES.] 
    Subdivision 1.  [UNAUTHORIZED WILLFUL DISCLOSURE.] A person 
willfully making a disclosure not authorized by this chapter is 
guilty of a gross misdemeanor. 
    Subd. 2.  [UNAUTHORIZED COMPUTER DATA ACCESS.] In addition 
to the computer crimes provided in sections 609.87 to 609.89, a 
person who intentionally and without authority attempts to or 
does penetrate property or a computer program or programs, as 
defined in section 609.87, containing department of revenue 
data, is guilty of a gross misdemeanor.  
    Subd. 3.  [PUBLIC EMPLOYEE VIOLATIONS.] A willful violation 
of this chapter by a public employee constitutes just cause for 
suspension without pay or dismissal of the public employee. 
    Sec. 19.  [270B.19] [RULES.] 
    The commissioner may adopt rules necessary for the 
enforcement and administration of this chapter consistent with 
its provisions.  
    Sec. 20.  [REPEALER.] 
    Minnesota Statutes 1988, sections 13.70; 290.05, 
subdivision 7; 290.61; 290A.17; 291.48; and 297A.43 are repealed.
    Sec. 21.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1989, and applies to all 
department of revenue data created, collected, or maintained on, 
before, or after that date. 

                                ARTICLE 2
    Section 1.  Minnesota Statutes 1988, section 60A.17, 
subdivision 20, is amended to read:  
    Subd. 20.  [TAX CLEARANCE CERTIFICATE.] (a) The 
commissioner may not issue or renew a license under this section 
if the commissioner of revenue notifies the commissioner and the 
licensee or applicant for a license that the licensee or 
applicant owes the state delinquent taxes in the amount of $500 
or more.  The commissioner may issue or renew the license only 
if (1) the commissioner of revenue issues a tax clearance 
certificate and (2) the commissioner of revenue or the licensee 
or applicant forwards a copy of the clearance to the 
commissioner.  The commissioner of revenue may issue a clearance 
certificate only if the licensee or applicant does not owe the 
state any uncontested delinquent taxes. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
    (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
    (c) In lieu of the notice and hearing requirements of 
subdivisions 6c and 6d, when a licensee or applicant is required 
to obtain a clearance certificate under this subdivision, a 
contested case hearing must be held if the licensee or applicant 
requests a hearing in writing to the commissioner of revenue 
within 30 days of the date of the notice provided in paragraph 
(a).  The hearing must be held within 45 days of the date the 
commissioner of revenue refers the case to the office of 
administrative hearings.  Notwithstanding any law to the 
contrary, the licensee or applicant must be served with 20 days' 
notice in writing specifying the time and place of the hearing 
and the allegations against the licensee or applicant.  The 
notice may be served personally or by mail. 
    (d) The commissioner shall require all licensees or 
applicants to provide their social security number and Minnesota 
business identification number on all license applications.  
Upon request of the commissioner of revenue, the commissioner 
must provide to the commissioner of revenue a list of all 
licensees and applicants, including the name and address, social 
security number, and business identification number.  The 
commissioner of revenue may request a list of the licensees and 
applicants no more than once each calendar year.  
Notwithstanding sections 290.61 and 297A.43, the commissioner of 
revenue may release information necessary to accomplish the 
purpose of this subdivision.  
    Sec. 2.  Minnesota Statutes 1988, section 82.27, 
subdivision 7, is amended to read:  
    Subd. 7.  [TAX CLEARANCE CERTIFICATE.] (a) In addition to 
the provisions of subdivision 1, the commissioner may not issue 
or renew a license if the commissioner of revenue notifies the 
commissioner and the licensee or applicant for a license that 
the licensee or applicant owes the state delinquent taxes in the 
amount of $500 or more.  The commissioner may issue or renew the 
license only if (1) the commissioner of revenue issues a tax 
clearance certificate and (2) the commissioner of revenue or the 
licensee or applicant forwards a copy of the clearance to the 
commissioner.  The commissioner of revenue may issue a clearance 
certificate only if the licensee or applicant does not owe the 
state any uncontested delinquent taxes. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
    (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
    (c) In lieu of the notice and hearing requirements of 
subdivisions 3, 4, 5, and 6, when a licensee or applicant is 
required to obtain a clearance certificate under this 
subdivision, a contested case hearing must be held if the 
licensee or applicant requests a hearing in writing to the 
commissioner of revenue within 30 days of the date of the notice 
provided in paragraph (a).  The hearing must be held within 45 
days of the date the commissioner of revenue refers the case to 
the office of administrative hearings.  Notwithstanding any law 
to the contrary, the licensee or applicant must be served with 
20 days' notice in writing specifying the time and place of the 
hearing and the allegations against the licensee or applicant.  
The notice may be served personally or by mail. 
    (d) The commissioner shall require all licensees or 
applicants to provide their social security number and Minnesota 
business identification number on all license applications.  
Upon request of the commissioner of revenue, the commissioner 
must provide to the commissioner of revenue a list of all 
licensees and applicants, including the name and address, social 
security number and business identification number.  The 
commissioner of revenue may request a list of the licensees and 
applicants no more than once each calendar year.  
Notwithstanding sections 290.61 and 297A.43, the commissioner of 
revenue may release information necessary to accomplish the 
purpose of this subdivision.  
    Sec. 3.  Minnesota Statutes 1988, section 147.091, 
subdivision 7, is amended to read:  
    Subd. 7.  [TAX CLEARANCE CERTIFICATE.] (a) In addition to 
the provisions of subdivision 1, the board may not issue or 
renew a license if the commissioner of revenue notifies the 
board and the licensee or applicant for a license that the 
licensee or applicant owes the state delinquent taxes in the 
amount of $500 or more.  The board may issue or renew the 
license only if (1) the commissioner of revenue issues a tax 
clearance certificate and (2) the commissioner of revenue or the 
licensee or applicant forwards a copy of the clearance to the 
board.  The commissioner of revenue may issue a clearance 
certificate only if the licensee or applicant does not owe the 
state any uncontested delinquent taxes. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
    (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
    (c) In lieu of the notice and hearing requirements of 
subdivision 1, when a licensee or applicant is required to 
obtain a clearance certificate under this subdivision, a 
contested case hearing must be held if the licensee or applicant 
requests a hearing in writing to the commissioner of revenue 
within 30 days of the date of the notice provided in paragraph 
(a).  The hearing must be held within 45 days of the date the 
commissioner of revenue refers the case to the office of 
administrative hearings.  Notwithstanding any law to the 
contrary, the licensee or applicant must be served with 20 days' 
notice in writing specifying the time and place of the hearing 
and the allegations against the licensee or applicant.  The 
notice may be served personally or by mail. 
    (d) The board shall require all licensees or applicants to 
provide their social security number and Minnesota business 
identification number on all license applications.  Upon request 
of the commissioner of revenue, the board must provide to the 
commissioner of revenue a list of all licensees and applicants, 
including the name and address, social security number, and 
business identification number.  The commissioner of revenue may 
request a list of the licensees and applicants no more than once 
each calendar year.  Notwithstanding sections 290.61 and 
297A.43, the commissioner of revenue may release information 
necessary to accomplish the purpose of this subdivision.  
    Sec. 4.  Minnesota Statutes 1988, section 148.10, 
subdivision 5, is amended to read: 
    Subd. 5.  [TAX CLEARANCE CERTIFICATE.] (a) In addition to 
the grounds provided in subdivision 1, the board may not issue 
or renew a license to practice chiropractic if the commissioner 
of revenue notifies the board and the licensee or applicant for 
a license that the licensee or applicant owes the state 
delinquent taxes in the amount of $500 or more.  The board may 
issue or renew the license only if (1) the commissioner of 
revenue issues a tax clearance certificate and (2) the 
commissioner of revenue or the licensee or applicant forwards a 
copy of the clearance to the board.  The commissioner of revenue 
may issue a clearance certificate only if the licensee or 
applicant does not owe the state any uncontested delinquent 
taxes. 
      (b) For purposes of this subdivision, the following terms 
have the meanings given. 
      (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
      (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
      (c) In lieu of the notice and hearing requirements of 
subdivisions 3 and 4, when a licensee or applicant is required 
to obtain a clearance certificate under this subdivision, a 
contested case hearing must be held if the licensee or applicant 
requests a hearing in writing to the commissioner of revenue 
within 30 days of the date of the notice provided in paragraph 
(a).  The hearing must be held within 45 days of the date the 
commissioner of revenue refers the case to the office of 
administrative hearings.  Notwithstanding any law to the 
contrary, the licensee or applicant must be served with 20 days' 
notice in writing specifying the time and place of the hearing 
and the allegations against the licensee or applicant.  The 
notice may be served personally or by mail. 
    (d) The board shall require all licensees or applicants of 
a license to practice chiropractic to provide their social 
security number and Minnesota business identification number on 
all license applications.  Upon request of the commissioner of 
revenue, the board must provide to the commissioner of revenue a 
list of all licensees and applicants for a license to practice 
chiropractic, including the name and address, social security 
number, and business identification number.  The commissioner of 
revenue may request a list of the licensees and applicants no 
more than once each calendar year.  Notwithstanding sections 
290.61 and 297A.43, the commissioner of revenue may release 
information necessary to accomplish the purpose of this 
subdivision.  
    Sec. 5.  Minnesota Statutes 1988, section 148B.06, 
subdivision 3, is amended to read: 
    Subd. 3.  [INFORMATION REQUIRED.] The boards shall require 
all regulated individuals or applicants to provide their social 
security number and Minnesota business identification number on 
all license or filing applications.  Upon request of the 
commissioner of revenue, the board must provide to the 
commissioner of revenue a list of all regulated individuals and 
applicants, including the name and address, social security 
number, and business identification number.  The commissioner of 
revenue may request a list of the individuals and applicants no 
more than once each calendar year.  Notwithstanding sections 
290.61 and 297A.43, the commissioner of revenue may release 
information necessary to accomplish the purpose of this 
subdivision.  
    Sec. 6.  Minnesota Statutes 1988, section 150A.08, 
subdivision 9, is amended to read:  
    Subd. 9.  [TAX CLEARANCE CERTIFICATE.] (a) In addition to 
the grounds provided in subdivision 1 and notwithstanding 
subdivision 3, the board may not issue or renew a license to 
practice dentistry if the commissioner of revenue notifies the 
board and the licensee or applicant for a license that the 
licensee or applicant owes the state delinquent taxes in the 
amount of $500 or more.  The board may issue or renew the 
license only if (1) the commissioner of revenue issues a tax 
clearance certificate and (2) the commissioner of revenue or the 
licensee or applicant forwards a copy of the clearance to the 
board.  The commissioner of revenue may issue a clearance 
certificate only if the licensee or applicant does not owe the 
state any uncontested delinquent taxes. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
    (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
    (c) In lieu of the notice and hearing requirements of 
subdivision 8, when a licensee or applicant is required to 
obtain a clearance certificate under this subdivision, a 
contested case hearing must be held if the licensee or applicant 
requests a hearing in writing to the commissioner of revenue 
within 30 days of the date of the notice provided in paragraph 
(a).  The hearing must be held within 45 days of the date the 
commissioner of revenue refers the case to the office of 
administrative hearings.  Notwithstanding any law to the 
contrary, the licensee or applicant must be served with 20 days' 
notice in writing specifying the time and place of the hearing 
and the allegations against the licensee or applicant.  The 
notice may be served personally or by mail. 
    (d) The board shall require all licensees or applicants for 
a license to practice dentistry to provide their social security 
number and Minnesota business identification number on all 
license applications.  Upon request of the commissioner of 
revenue, the board must provide to the commissioner of revenue a 
list of all licensees and applicants for a license to practice 
dentistry including the name and address, social security 
number, and business identification number.  The commissioner of 
revenue may request a list of the licensees and applicants no 
more than once each calendar year.  Notwithstanding sections 
290.61 and 297A.43, the commissioner of revenue may release 
information necessary to accomplish the purpose of this 
subdivision.  
    Sec. 7.  Minnesota Statutes 1988, section 171.31, is 
amended to read: 
    171.31 [PERSONS RECEIVING BENEFITS FOR BLINDNESS, DISCOVERY 
OF INFORMATION.] 
    The commissioner of public safety, in order to promote 
highway safety by restricting driving privileges to those 
persons meeting accepted visual acuity standards, may request 
and shall receive information concerning the identity and 
whereabouts of any person who has applied for or received any 
type of welfare, licensing or other benefits for the blind or 
nearly blind, from the records of all departments, boards, 
bureaus or other agencies of this state except the department of 
revenue, and they shall provide such information notwithstanding 
the provisions of section 268.12, subdivision 12, or any other 
existing law or rule to the contrary, except that section 290.61 
270B.02, subdivision 1, prohibits disclosure of information by 
the commissioner of revenue.  
    Sec. 8.  Minnesota Statutes 1988, section 176.186, is 
amended to read: 
    176.186 [RECORDS FROM OTHER STATE AGENCIES.] 
    Notwithstanding any other state law to the contrary except 
section 290.61 chapter 270B, the commissioner may obtain from 
the department of jobs and training, and office of the secretary 
of state, or any other state agency, upon request, names or 
lists of employers doing business in the state.  This 
information shall be treated by the commissioner in the manner 
provided by chapter 13 and shall be used only for insurance 
verification by the commissioner.  
    Sec. 9.  Minnesota Statutes 1988, section 176.231, 
subdivision 9, is amended to read: 
    Subd. 9.  [USES WHICH MAY BE MADE OF REPORTS.] Reports 
filed with the commissioner under this section may be used in 
hearings held under this chapter, and for the purpose of state 
investigations and for statistics.  These reports are available 
to the department of revenue for use in enforcing Minnesota 
income tax and property tax refund laws, and the information 
shall be protected as provided in section 290.61 or 290A.17 
chapter 270B. 
    The division or office of administrative hearings or 
workers' compensation court of appeals may permit the 
examination of its file by the employer, insurer, employee, or 
dependent of a deceased employee or any person who furnishes 
written authorization to do so from the employer, insurer, 
employee, or dependent of a deceased employee.  Reports filed 
under this section and other information the commissioner has 
regarding injuries or deaths shall be made available to the 
workers' compensation reinsurance association for use by the 
association in carrying out its responsibilities under chapter 
79.  
    Sec. 10.  Minnesota Statutes 1988, section 256.978, is 
amended to read:  
    256.978 [LOCATION OF PARENTS DESERTING THEIR CHILDREN, 
ACCESS TO RECORDS.] 
    The commissioner of human services, in order to carry out 
the child support enforcement program and to assist in the 
location of parents who have, or appear to have, deserted their 
children, may request information from the records of all 
departments, boards, bureaus or other agencies of this state, 
which shall, notwithstanding the provisions of section 290.61, 
268.12, subdivision 12, or any other law to the contrary, 
provide the information necessary for this purpose.  Employers 
and utility companies doing business in this state shall provide 
information upon written request by an agency responsible for 
child support enforcement regarding individuals owing or 
allegedly owing a duty to support.  A request for this 
information may be made to an employer when there is reasonable 
cause to believe that the subject of the inquiry is or was 
employed by the employer where the request is made.  The request 
must include a statement that reasonable cause exists.  
Information to be released by utility companies is restricted to 
place of residence.  Information to be released by employers is 
restricted to place of residence, employment status, and wage 
information.  Information relative to the identity, whereabouts, 
employment, income, and property of a person owing or alleged to 
be owing an obligation of support may be requested and used or 
transmitted by the commissioner pursuant to the authority 
conferred by this section.  The commissioner of human services 
may make such information available only to public officials and 
agencies of this state and its political subdivisions and other 
states of the union and their political subdivisions who are 
seeking to enforce the support liability of parents or to locate 
parents who have, or appear to have, deserted their children.  
Any person who, pursuant to this section, obtains information 
from the department of revenue the confidentiality of which is 
protected by law shall not divulge the information except to the 
extent necessary for the administration of the child support 
enforcement program or when otherwise authorized by law.  
    Sec. 11.  Minnesota Statutes 1988, section 270.052, is 
amended to read:  
    270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 
    Notwithstanding sections 290.61 and 290A.17, Pursuant to 
section 270B.12, the commissioner may enter into an agreement 
with the Internal Revenue Service to identify taxpayers who have 
refunds due from the department of revenue and liabilities owing 
to the Internal Revenue Service, if the Internal Revenue Service 
agrees to identify taxpayers who have refunds due from the 
Internal Revenue Service and liabilities owing to the department 
of revenue.  In accordance with the procedures established in 
the agreement, the Internal Revenue Service may levy against the 
refunds to be paid by the department of revenue, and the 
department of revenue may levy against refunds to be paid by the 
Internal Revenue Service. 
    Sec. 12.  Minnesota Statutes 1988, section 270.064, is 
amended to read:  
    270.064 [REQUESTING ASSISTANCE IN CRIMINAL TAX 
INVESTIGATIONS.] 
    If the commissioner of revenue has reason to believe that a 
criminal violation of the state tax laws has occurred, the 
commissioner may request the attorney general or the prosecuting 
authority of any county to assist in a criminal tax 
investigation and may disclose return information to the 
prosecuting authority relevant to the investigation 
notwithstanding the provisions of section 290.61, 291.48, 
297A.43, or 297B.12. 
    Sec. 13.  Minnesota Statutes 1988, section 270.66, 
subdivision 3, is amended to read:  
    Subd. 3.  [AGENCIES SHALL MAINTAIN RECORDS.] 
Notwithstanding any provision to the contrary, every person, 
organization, or corporation doing business (hereafter called 
vendor) with the state of Minnesota or any of its departments, 
agencies, or educational institutions including the University 
of Minnesota (all hereafter called agency) shall provide that 
agency with their social security number or Minnesota tax 
identification number.  The agency shall maintain records of 
this information, and shall make these records available, on 
request, to the commissioner for the sole purpose of identifying 
people who have not filed state tax returns or who have not paid 
uncontested state tax liabilities (hereafter called delinquent 
taxpayer).  When an agency is notified by the commissioner that 
a vendor is a delinquent taxpayer, payments shall not be made by 
the agency to the vendor until the commissioner notifies the 
agency that the vendor no longer is a delinquent taxpayer.  
Furthermore, if the vendor has an uncontested delinquent tax 
liability, the setoff provided in subdivision 1 may be 
implemented.  The commissioner shall determine that a vendor no 
longer is a delinquent taxpayer when the vendor has filed all 
delinquent state tax returns, paid all uncontested state tax 
liabilities or entered into an agreement with the commissioner 
which provides for the payment of these liabilities.  The 
commissioner may notify an agency concerning a vendor, 
notwithstanding the provisions of section 290.61 or 297A.43.  
    Sec. 14.  Minnesota Statutes 1988, section 270.72, 
subdivision 4, is amended to read:  
    Subd. 4.  [LICENSING AUTHORITY; DUTIES.] All licensing 
authorities must require the applicant to provide the 
applicant's social security number and Minnesota business 
identification number on all license applications.  Upon request 
of the commissioner, the licensing authority must provide the 
commissioner with a list of all applicants, including the name, 
address, business name and address, social security number, and 
business identification number of each applicant.  The 
commissioner may request from a licensing authority a list of 
the applicants no more than once each calendar year.  
Notwithstanding sections 290.61 and 297A.43, the commissioner 
may release information necessary to accomplish the purpose of 
this section.  
    Sec. 15.  Minnesota Statutes 1988, section 270.73, 
subdivision 1, is amended to read:  
    Subdivision 1.  [POSTING, NOTICE.] Notwithstanding sections 
290.61 and 297A.43, Pursuant to section 270B.12, subdivision 4, 
the commissioner shall, by the 15th of each month, submit to the 
commissioner of public safety a list of all taxpayers who are 
required to withhold or collect the tax imposed by section 
290.92 or 297A.02 and who are 30 days or more delinquent in 
either filing a tax return or paying the tax.  At least ten days 
before notifying the commissioner of public safety, the 
commissioner of revenue shall notify the taxpayer of the 
intended action. 
    The commissioner of public safety shall post the list in 
the same manner as provided in section 340A.318, subdivision 3.  
The list will prominently show the date of posting.  If a 
taxpayer previously listed cures the delinquency by filing all 
returns and paying all taxes, the commissioner shall notify the 
commissioner of public safety within two business days that the 
delinquency was cured. 
    Sec. 16.  Minnesota Statutes 1988, section 270A.11, is 
amended to read:  
    270A.11 [DATA PRIVACY.] 
    Notwithstanding sections 290.61 and 290A.17, Private and 
confidential data on individuals may be exchanged among the 
department, the claimant agency, and the debtor as necessary to 
accomplish and effectuate the intent of sections 270A.01 to 
270A.12, as provided by section 13.05, subdivision 4, clause 
(b).  The department may disclose to the claimant agency only 
the debtor's name, address, social security number and the 
amount of the refund.  Any person employed by, or formerly 
employed by, a claimant agency who discloses any such 
information for any other purpose, shall be subject to the civil 
and criminal penalties of sections 13.09 and 290.61 section 
270B.18. 
    Sec. 17.  Minnesota Statutes 1988, section 290.081, is 
amended to read: 
    290.081 [INCOME OF NONRESIDENTS, RECIPROCITY.] 
    (a) The compensation received for the performance of 
personal or professional services within this state by an 
individual whose residence, place of abode, and place 
customarily returned to at least once a month is in another 
state, shall be excluded from gross income to the extent such 
compensation is subject to an income tax imposed by the state of 
residence; provided that such state allows a similar exclusion 
of compensation received by residents of Minnesota for services 
performed therein. 
    (b) When it is deemed to be in the best interests of the 
people of this state, the commissioner may determine that the 
provisions of clause (a) shall not apply.  As long as the 
provisions of clause (a) apply between Minnesota and Wisconsin, 
the provisions of clause (a) shall apply to any individual who 
is domiciled in Wisconsin.  
     (c) For the purposes of clause (a), whenever the Wisconsin 
tax on Minnesota residents which would have been paid Wisconsin 
without clause (a) exceeds the Minnesota tax on Wisconsin 
residents which would have been paid Minnesota without clause 
(a), or vice versa, then the state with the net revenue loss 
resulting from clause (a) shall receive from the other state the 
amount of such loss.  This provision shall be effective for all 
years beginning after December 31, 1972.  The data used for 
computing the loss to either state shall be determined on or 
before September 30 of the year following the close of the 
previous calendar year. 
    Interest shall be payable on all delinquent balances 
relating to taxable years beginning after December 31, 1977.  
The commissioner of revenue is authorized to enter into 
agreements with the state of Wisconsin specifying the 
reciprocity payment due date, conditions constituting 
delinquency, interest rates, and a method for computing interest 
due on any delinquent amounts. 
    If an agreement cannot be reached as to the amount of the 
loss, the commissioner of revenue and the taxing official of the 
state of Wisconsin shall each appoint a member of a board of 
arbitration and these members shall appoint the third member of 
the board.  The board shall select one of its members as chair.  
Such board may administer oaths, take testimony, subpoena 
witnesses, and require their attendance, require the production 
of books, papers and documents, and hold hearings at such places 
as are deemed necessary.  The board shall then make a 
determination as to the amount to be paid the other state which 
determination shall be final and conclusive. 
    Notwithstanding the provisions of section 290.61, The 
commissioner may furnish copies of returns, reports, or other 
information to the taxing official of the state of Wisconsin, a 
member of the board of arbitration, or a consultant under joint 
contract with the states of Minnesota and Wisconsin for the 
purpose of making a determination as to the amount to be paid 
the other state under the provisions of this section.  Prior to 
the release of any information under the provisions of this 
section, the person to whom the information is to be released 
shall sign an agreement which provides that the person will 
protect the confidentiality of the returns and information 
revealed thereby to the extent that it is protected under the 
laws of the state of Minnesota. 
    Sec. 18.  Minnesota Statutes 1988, section 290.174, is 
amended to read: 
    290.174 [INTERSTATE AUDITS.] 
    Article VIII of the multistate tax compact relating to 
interstate audits shall be in force in and with respect to the 
state of Minnesota.  For purposes of sections 290.61 and 297A.43 
chapter 270B, the Multistate Tax Commission will be considered 
to be a state for purposes of auditing corporate sales, excise, 
and income tax returns.  
    Sec. 19.  Minnesota Statutes 1988, section 290.371, 
subdivision 5, is amended to read: 
    Subd. 5.  [FAILURE TO FILE TIMELY REPORT.] (a) Any 
corporation required to file a notice of business activities 
report does not have any cause of action upon which it may bring 
suit under Minnesota law unless the corporation has filed a 
notice of business activities report.  
    (b) The failure of a corporation to file a timely report 
prevents the use of the courts in this state, except regarding 
activities and property described in section 290.015, 
subdivision 3, paragraph (b), for all contracts executed and all 
causes of action that arose at any time before the end of the 
last accounting period for which the corporation failed to file 
a required report.  
    (c) The court in which the issues arise has the power to 
excuse the corporation for its failure to file a report when 
due, and restore the corporation's cause of action under the 
laws of this state, if the corporation has paid all taxes, 
interest, and civil penalties due the state for all periods, or 
provided for payment of them by adequate security or bond 
approved by the commissioner.  
    (d) Notwithstanding the provisions of section 290.61, 
Pursuant to section 270B.14, subdivision 6, the commissioner may 
acknowledge whether or not a particular corporation has filed 
with the commissioner reports or returns required by this 
chapter if the acknowledgment: 
    (1) is to a party in a civil action; 
    (2) relates to the filing status of another party in the 
same civil action; and 
     (3) is in response to a written request accompanied by a 
copy of the summons and complaint in the civil action.  
    Sec. 20.  Minnesota Statutes 1988, section 290.50, 
subdivision 6, is amended to read:  
    Subd. 6.  [WITHHOLDING OF REFUNDS FROM CHILD SUPPORT 
DEBTORS.] Upon a finding by a court of this state that a person 
obligated to pay child support is delinquent in making payments, 
the amount of child support unpaid and owing including attorneys 
fees and costs incurred in ascertaining or collecting child 
support shall be withheld from a refund due the person under 
this section.  The public agency responsible for child support 
enforcement or the parent or guardian of a child for whom the 
support, attorneys fees and costs are owed may petition the 
district or county court for an order providing for the 
withholding of the amount of child support, attorneys fees and 
costs unpaid and owing as determined by court order.  The person 
from whom the refund may be withheld shall be notified of the 
petition pursuant to the rules of civil procedure prior to the 
issuance of an order pursuant to this subdivision.  The order 
may be granted on a showing to the court that required support 
payments, attorneys fees and costs have not been made when they 
were due.  
    On order of the court and on payment of $3 to the 
commissioner, the money shall be withheld by the commissioner 
from the refund due to the person obligated to pay and the 
amount withheld shall be remitted to the public agency 
responsible for child support enforcement or to the parent or 
guardian petitioning on behalf of the child, provided that any 
delinquent tax obligations of the taxpayer owed to the revenue 
department shall be satisfied first.  Any amount received by the 
responsible public agency or the petitioning parent or guardian 
in excess of the amount of public assistance expended for the 
benefit of the child to be supported, or the amount of any 
support, attorneys fees and costs that had been the subject of 
the claim pursuant to this subdivision which has been paid by 
the taxpayer prior to the diversion of the refund, shall be 
remitted to the person entitled to the money.  If the refund is 
based on a joint return, the portion of the refund that shall be 
remitted to the petitioner shall be the proportion of the total 
refund that equals the proportion of the total federal adjusted 
gross income of the spouses that is the federal adjusted gross 
income of the spouse who is delinquent in making the child 
support payments.  A petition filed pursuant to this subdivision 
shall be in effect with respect to any refunds due under this 
section until the support money, attorneys fees and costs have 
been paid in full or the court orders the commissioner to 
discontinue withholding the money from the refund due the person 
obligated to pay the support, attorneys fees and costs.  If a 
petition is filed pursuant to this subdivision and a claim is 
made pursuant to chapter 270A with respect to the same 
individual's refund and notices of both are received prior to 
the time when payment of the refund is made on either claim, the 
claim relating to the liability that accrued first in time shall 
be paid first; any amount of the refund remaining shall then be 
applied to the other claim.  The provisions of section 290.61 
shall not prohibit the exchange of information among the 
department, the petitioner, and the court to the extent 
necessary to accomplish the intent of this subdivision.  
    Sec. 21.  Minnesota Statutes 1988, section 290.523, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WILLFUL UNDERSTATEMENT OF LIABILITY.] If 
any part of any understatement of liability with respect to any 
return or claim for refund is due to a willful attempt in any 
manner to understate the liability for a tax by a person who is 
an income tax return preparer with respect to the return or 
claim, the person shall pay to the commissioner a penalty of 
$500 with respect to the return or claim.  The penalty under 
this section may not be assessed against the employer of an 
income tax preparer unless the employer was actively involved in 
the willful attempt to understate the liability for a tax.  This 
penalty shall be considered to be an income tax liability and 
may be assessed at any time as provided in section 290.49, 
subdivision 6.  In any proceeding involving the issue of whether 
or not an income tax return preparer has willfully attempted in 
any manner to understate the liability for tax, the burden of 
proof in respect of the issue shall be upon the commissioner, 
and the return of the taxpayer may be disclosed to the income 
tax return preparer notwithstanding section 290.61.  
    Sec. 22.  Minnesota Statutes 1988, section 290.91, is 
amended to read: 
    290.91 [DESTRUCTION OF RETURNS.] 
    The commissioner of revenue is hereby authorized to destroy 
all tax returns, required under this chapter or chapter 290A, 
including audit reports, orders and correspondence relating 
thereto, which have been on file in the commissioner's office 
for a period to be determined by the commissioner.  The 
commissioner may make copies of such returns, orders or 
correspondence by microfilm, photostat or other similar means 
and may immediately destroy the original documents from which 
such copies have been made.  Such copies, when certified to by 
the commissioner, shall be admissible in evidence in the same 
manner and be given the same effect as the original documents 
destroyed. 
    The commissioner may destroy correspondence and documents 
contained in the files of the division which do not relate 
specifically to any tax return. 
    Notwithstanding the above provisions (or the provisions of 
section 290.61 or 290A.17) the commissioner may, utilizing such 
safeguards as the commissioner in the commissioner's discretion 
deems necessary, (1) employ a commercial photographer for the 
purpose of developing microfilm of returns or other documents, 
or (2) employ a vendor for the purpose of obtaining the vendor's 
services an example of which is the preparation of income tax 
return labels. 
    Sec. 23.  Minnesota Statutes 1988, section 290.92, 
subdivision 5a, is amended to read: 
    Subd. 5a.  [VERIFICATION OF WITHHOLDING EXEMPTIONS; 
APPEAL.] (1) An employer shall submit to the commissioner a copy 
of any withholding exemption certificate or any affidavit of 
residency received from an employee on which the employee claims 
any of the following:  
    (a) a total number of withholding exemptions in excess of 
ten or a number prescribed by the commissioner, or 
    (b) a status that would exempt the employee from Minnesota 
withholding, including where the employee is a nonresident 
exempt from withholding under subdivision 4a, clause (3), except 
where the employer reasonably expects, at the time that the 
certificate is received, that the employee's wages under 
subdivision 1 from the employer will not then usually exceed 
$200 per week, or 
    (c) any number of withholding exemptions which the employer 
has reason to believe is in excess of the number to which the 
employee is entitled.  
     (2) Copies of exemption certificates and affidavits of 
residency required to be submitted by clause (1) shall be 
submitted to the commissioner within 30 days after receipt by 
the employer unless the employer is also required by federal law 
to submit copies to the Internal Revenue Service, in which case 
the employer may elect to submit the copies to the commissioner 
at the same time that the employer is required to submit them to 
the Internal Revenue Service.  
    (3) An employer who submits a copy of a withholding 
exemption certificate in accordance with clause (1) shall honor 
the certificate until notified by the commissioner that the 
certificate is invalid.  The commissioner shall mail a copy of 
any such notice to the employee.  Upon notification that a 
particular certificate is invalid, the employer shall not honor 
that certificate or any subsequent certificate unless instructed 
to do so by the commissioner.  The employer shall allow the 
employee the number of exemptions and compute the withholding 
tax as instructed by the commissioner in accordance with clause 
(4).  
    (4) The commissioner may require an employee to verify 
entitlement to the number of exemptions or to the exempt status 
claimed on the withholding exemption certificate or, to verify 
nonresidency.  The employee shall be allowed at least 30 days to 
submit the verification, after which time the commissioner 
shall, on the basis of the best information available to the 
commissioner, determine the employee's status and allow the 
employee the maximum number of withholding exemptions allowable 
under this chapter.  The commissioner shall mail a notice of 
this determination to the employee at the address listed on the 
exemption certificate in question or to the last known address 
of the employee.  Notwithstanding the provisions of section 
290.61, Pursuant to section 270B.06, the commissioner may notify 
the employer of this determination and instruct the employer to 
withhold tax in accordance with the determination. 
    However, where the commissioner has reasonable grounds for 
believing that the employee is about to leave the state or that 
the collection of any tax due under this chapter will be 
jeopardized by delay, the commissioner may immediately notify 
the employee and the employer, notwithstanding section 290.61, 
pursuant to section 270B.06, that the certificate is invalid, 
and the employer must not honor that certificate or any 
subsequent certificate unless instructed to do so by the 
commissioner.  The employer shall allow the employee the number 
of exemptions and compute the withholding tax as instructed by 
the commissioner. 
    (5) The commissioner's determination under clause (4) shall 
be appealable to tax court in accordance with section 271.06, 
and shall remain in effect for withholding tax purposes pending 
disposition of any appeal. 
    Sec. 24.  Minnesota Statutes 1988, section 290.92, 
subdivision 17, is amended to read: 
    Subd. 17.  [RECIPROCAL ARRANGEMENT WITH OTHER STATES.] The 
commissioner may enter into an agreement with the commissioner 
or other taxing officials of another state for the 
interpretation and administration of the acts of their several 
states providing for the collection of income tax at source on 
wages for the purpose of promoting fair and equitable 
administration of such acts and to eliminate duplicate 
withholding.  Notwithstanding the provisions of section 290.61 
Pursuant to section 270B.12, subdivision 1, the commissioner may 
furnish information on a reciprocal basis to the taxing 
officials of another state in order to implement the purposes 
set forth above. 
    Sec. 25.  Minnesota Statutes 1988, section 290.92, 
subdivision 26, is amended to read: 
    Subd. 26.  [EXTENSION OF WITHHOLDING TO CERTAIN PAYMENTS 
WHERE IDENTIFYING NUMBER NOT FURNISHED OR INACCURATE.] (a) If, 
in the case of any reportable payment, (1) the payee fails to 
furnish the payee's social security account number to the payor, 
or (2) the commissioner notifies the payor that the social 
security account number furnished by the payee is incorrect, 
then the payor shall deduct and withhold from the payment a tax 
equal to ten percent of the payment.  
    (b)(1) In the case of any failure described in clause (a) 
(1), clause (a) shall apply to any reportable payment made by 
the payor during the period during which the social security 
account number has not been furnished.  
     (2) In any case where there is a notification described in 
clause (a)(2), clause (a) shall apply to any reportable payment 
made by the payor (i) after the close of the 30th day after the 
day on which the payor received the notification, and (ii) 
before the payee furnishes another social security account 
number.  
     (3)(i) Unless the payor elects not to have this 
subparagraph apply with respect to the payee, clause (a) shall 
also apply to any reportable payment made after the close of the 
period described in paragraph (1) or (2) (as the case may be) 
and before the 30th day after the close of the period.  
     (ii) If the payor elects the application of this 
subparagraph with respect to the payee, clause (a) shall also 
apply to any reportable payment made during the 30-day period 
described in paragraph (2). 
    (iii) The payor may elect a period shorter than the grace 
period set forth in subparagraph (i) or (ii) as the case may be. 
    (c) The provisions of section 3406 of the Internal Revenue 
Code of 1986, as amended through December 31, 1987, shall apply 
and shall govern when withholding shall be required and the 
definition of terms.  The term "reportable payment" shall 
include only those payments for personal services.  No tax shall 
be deducted or withheld under this subdivision with respect to 
any amount for which withholding is otherwise required under 
this section.  For purposes of this section, payments which are 
subject to withholding under this subdivision shall be treated 
as if they were wages paid by an employer to an employee and 
amounts deducted and withheld under this subdivision shall be 
treated as if deducted and withheld under subdivision 2a.  
    (d) Whenever the commissioner notifies a payor under this 
subdivision that the social security account number furnished by 
any payee is incorrect, notwithstanding section 290.61, the 
commissioner shall at the same time furnish a copy of the notice 
to the payor, and the payor shall promptly furnish the copy to 
the payee.  If the commissioner notifies a payor under this 
subdivision that the social security account number furnished by 
any payee is incorrect and the payee subsequently furnishes 
another social security account number to the payor, the payor 
shall promptly notify the commissioner of the other social 
security account number furnished.  
    Sec. 26.  Minnesota Statutes 1988, section 290A.112, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WILLFUL OVERSTATEMENT OF CLAIM.] If any 
part of an excessive claim with respect to any property tax 
refund return is due to a willful attempt in any manner to 
overstate the claim for relief allowed under this chapter by a 
person who is a property tax refund return preparer with respect 
to the return, the person shall pay to the commissioner a 
penalty of $500 with respect to the return.  The penalty under 
this section may not be assessed against the employer of a 
property tax refund return preparer unless the employer was 
actively involved in the willful attempt to overstate the claim 
for property tax refund.  This penalty shall be considered to be 
an income tax liability and may be assessed at any time as 
provided in section 290.49, subdivision 6.  In any proceeding 
involving the issue of whether or not a property tax refund 
return preparer has willfully attempted in any manner to 
overstate the property tax refund claim, the burden of proof in 
respect of the issue shall be upon the commissioner and the 
claim of the claimant may be disclosed to the property tax 
refund return preparer notwithstanding section 290A.17.  
    Sec. 27.  Minnesota Statutes 1988, section 297A.07, is 
amended to read: 
    297A.07 [REVOCATION OF PERMITS.] 
    Whenever any person fails to comply with any provision of 
sections 297A.01 to 297A.44 or any rule of the commissioner 
adopted under sections 297A.01 to 297A.44, the commissioner, 
upon hearing, after giving the person 30 days' notice in writing 
specifying the time and place of hearing and the reason for the 
proposed revocation and requiring the person to show cause why 
the permit or permits should not be revoked, may for reasonable 
cause, revoke or suspend any one or more of the permits held by 
such person.  The notice may be served personally or by mail in 
the manner prescribed for service of notice of a deficiency.  
The commissioner shall not issue a new permit after revocation 
except upon application accompanied by reasonable evidence of 
the intention of the applicant to comply with the aforementioned 
provisions and rules.  The commissioner may condition the 
issuance of a new permit to such applicant on the supplying of 
such security in addition to that authorized by section 297A.28 
as is reasonably necessary to insure compliance with the 
aforementioned provisions and rules.  
    Notwithstanding the provisions of section 297A.43, the 
commissioner may disclose information identifying the holder of 
a revoked permit and the basis for the revocation. 
    Sec. 28.  Minnesota Statutes 1988, section 326.20, 
subdivision 4, is amended to read:  
    Subd. 4.  [TAX CLEARANCE CERTIFICATE.] (a) Notwithstanding 
subdivisions 1 and 2, the board may not issue or renew a license 
under sections 326.165 to 326.231 if the commissioner of revenue 
notifies the board and the licensee or applicant for a license 
that the licensee or applicant owes the state delinquent taxes 
in the amount of $500 or more.  The board may issue or renew the 
license only if (1) the commissioner of revenue issues a tax 
clearance certificate and (2) the commissioner of revenue or the 
licensee or applicant forwards a copy of the clearance to the 
board.  The commissioner of revenue may issue a clearance 
certificate only if the licensee or applicant does not owe the 
state any uncontested delinquent taxes. 
    (b) For purposes of this subdivision, the following terms 
have the meanings given. 
    (1) "Taxes" are all taxes payable to the commissioner of 
revenue, including penalties and interest due on those taxes. 
    (2) "Delinquent taxes" do not include a tax liability if 
(i) an administrative or court action that contests the amount 
or validity of the liability has been filed or served, (ii) the 
appeal period to contest the tax liability has not expired, or 
(iii) the licensee or applicant has entered into a payment 
agreement to pay the liability and is current with the payments. 
    (c) When a licensee or applicant is required to obtain a 
clearance certificate under this subdivision, a contested case 
hearing must be held if the licensee or applicant requests a 
hearing in writing to the commissioner of revenue within 30 days 
of the date of the notice provided in paragraph (a).  The 
hearing must be held within 45 days of the date the commissioner 
of revenue refers the case to the office of administrative 
hearings.  Notwithstanding any law to the contrary, the licensee 
or applicant must be served with 20 days' notice in writing 
specifying the time and place of the hearing and the allegations 
against the licensee or applicant.  The notice may be served 
personally or by mail. 
    (d) The board shall require all licensees or applicants to 
provide their social security number and Minnesota business 
identification number on all license applications.  Upon request 
of the commissioner of revenue, the board must provide to the 
commissioner of revenue a list of all licensees and applicants, 
including the name and address, social security number, and 
business identification number.  The commissioner of revenue may 
request a list of the licensees and applicants no more than once 
each calendar year.  Notwithstanding sections 290.61 and 
297A.43, the commissioner of revenue may release information 
necessary to accomplish the purpose of this subdivision. 
    Sec. 29.  Minnesota Statutes 1988, section 469.173, 
subdivision 5, is amended to read:  
    Subd. 5.  [INFORMATION SHARING.] Notwithstanding the 
provisions of sections 290.61 and 297A.43 Pursuant to section 
270B.14, subdivision 3, the commissioner of revenue may share 
information with the commissioner or with a municipality 
receiving an enterprise zone designation, insofar as necessary 
to administer the funding limitations provided by section 
469.169, subdivision 7. 
    Sec. 30.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1989. 
    Presented to the governor May 16, 1989 
    Signed by the governor May 17, 1989, 6:40 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569