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

CHAPTER 197--S.F.No. 2806

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 begin Except 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

Presented to the governor April 16, 2008

Signed by the governor April 17, 2008, 8:22 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes