1.2relating to taxation; authorizing the disclosure of certain data to the state
1.3auditor for purposes of job opportunity building zone audits; requiring qualified
1.4businesses to file a report of job opportunity building zone tax benefits;amending
1.5Minnesota Statutes 2006, sections 268.19, subdivision 1; 270B.15; 289A.12, by
1.6adding a subdivision; 469.3201.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:
1.9    Subdivision 1. Use of data. (a) Except as otherwise provided by this section, data
1.10gathered from any person pursuant to the administration of the Minnesota Unemployment
1.11Insurance Law are private data on individuals or nonpublic data not on individuals as
1.12defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant
1.13to a district court order or section 13.05. A subpoena shall not be considered a district
1.14court order. These data may be disseminated to and used by the following agencies
1.15without the consent of the subject of the data:
1.16(1) state and federal agencies specifically authorized access to the data by state
1.17or federal law;
1.18(2) any agency of any other state or any federal agency charged with the
1.19administration of an unemployment insurance program;
1.20(3) any agency responsible for the maintenance of a system of public employment
1.21offices for the purpose of assisting individuals in obtaining employment;
1.22(4) human rights agencies within Minnesota that have enforcement powers;
1.23(5) the Department of Revenue only to the extent necessary for its duties under
1.24Minnesota laws;
2.1(6) public and private agencies responsible for administering publicly financed
2.2assistance programs for the purpose of monitoring the eligibility of the program's
2.3recipients;
2.4(7) the Department of Labor and Industry and the Division of Insurance Fraud
2.5Prevention in the Department of Commerce on an interchangeable basis with the
2.6department for uses consistent with the administration of their duties under Minnesota law;
2.7(8) local and state welfare agencies for monitoring the eligibility of the data subject
2.8for assistance programs, or for any employment or training program administered by those
2.9agencies, whether alone, in combination with another welfare agency, or in conjunction
2.10with the department or to monitor and evaluate the statewide Minnesota family investment
2.11program by providing data on recipients and former recipients of food stamps or food
2.12support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
2.13under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
2.14(9) local and state welfare agencies for the purpose of identifying employment,
2.15wages, and other information to assist in the collection of an overpayment debt in an
2.16assistance program;
2.17(10) local, state, and federal law enforcement agencies for the sole purpose of
2.18ascertaining the last known address and employment location of a person who is the
2.19subject of a criminal investigation;
2.20(11) the federal Immigration and Naturalization Service shall have access to data on
2.21specific individuals and specific employers provided the specific individual or specific
2.22employer is the subject of an investigation by that agency; and
2.23(12) the Department of Health solely for the purposes of epidemiologic
2.24investigations.; and
2.25(13) the state auditor to the extent necessary to conduct audits of job opportunity
2.26building zones as required under section 469.3201.
2.27(b) Data on individuals and employers that are collected, maintained, or used by the
2.28department in an investigation pursuant to section 268.182 are confidential as to data on
2.29individuals and protected nonpublic data not on individuals as defined in section 13.02,
2.30subdivisions 3 and 13 , and must not be disclosed except pursuant to statute or district
2.31court order or to a party named in a criminal proceeding, administrative or judicial, for
2.32preparation of a defense.
2.33(c) Data gathered by the department pursuant to the administration of the Minnesota
2.34unemployment insurance program must not be made the subject or the basis for any
2.35suit in any civil proceedings, administrative or judicial, unless the action is initiated by
2.36the department.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.

3.2    Sec. 2. Minnesota Statutes 2006, section 270B.15, is amended to read:
3.3270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR AND STATE
3.4AUDITOR.
3.5(a) Returns and return information must be disclosed to the legislative auditor to the
3.6extent necessary for the legislative auditor to carry out sections 3.97 to 3.979.
3.7(b) The commissioner must disclose return information, including the report
3.8required under section 289A.12, subdivision 15, to the state auditor to the extent necessary
3.9to conduct audits of job opportunity building zones as required under section 469.3201.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.

3.11    Sec. 3. Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision
3.12to read:
3.13    Subd. 15. Report of job opportunity zone benefits; penalty for failure to file
3.14report. (a) By October 15 of each year, every qualified business, as defined under section
3.15469.310, subdivision 11, must file with the commissioner, on a form prescribed by the
3.16commissioner, a report listing the tax benefits under section 469.315 received by the
3.17business for the previous year.
3.18(b) The commissioner shall send notice to each business that fails to timely submit
3.19the report required under paragraph (a). The notice shall demand that the business submit
3.20the report within 60 days. Where good cause exists, the commissioner may extend
3.21the period for submitting the report as long as a request for extension is filed by the
3.22business before the expiration of the 60-day period. The commissioner shall notify the
3.23commissioner of the Department of Employment and Economic Development and the
3.24appropriate job opportunity subzone administrator whenever notice is sent to a business
3.25under this paragraph.
3.26(c) A business that fails to submit the report as required under paragraph (b) is no
3.27longer a qualified business under section 469.310, subdivision 11, and is subject to the
3.28repayment provisions of section 469.319.
3.29EFFECTIVE DATE.This section is effective beginning with reports required to be
3.30filed October 15, 2008.

4.1    Sec. 4. Minnesota Statutes 2006, section 469.3201, is amended to read:
4.2469.3201 JOBZ EXPENDITURE LIMITATIONS; AUDITS STATE
4.3AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND
4.4BUSINESS SUBSIDY AGREEMENTS.
4.5The Tax Increment Financing, Investment and Finance Division of the Office of the
4.6State Auditor must annually audit the creation and operation of all job opportunity building
4.7zones and business subsidy agreements entered into under Minnesota Statutes, sections
4.8469.310 to 469.320. To the extent necessary to perform this audit, the state auditor may
4.9request from the commissioner of revenue tax return information of taxpayers who are
4.10eligible to receive tax benefits authorized under section 469.315. To the extent necessary
4.11to perform this audit, the state auditor may request from the commissioner of employment
4.12and economic development wage detail report information required under section 268.044
4.13of taxpayers eligible to receive tax benefits authorized under section 469.315.
4.14EFFECTIVE DATE.This section is effective the day following final enactment.