1.1                          A bill for an act
  1.2             relating to tax increment financing; requiring 
  1.3             registration and providing for regulation of 
  1.4             consultants; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 469. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [469.1792] [TIF CONSULTANTS.] 
  1.8      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.9   section, the definitions under section 469.174 apply and the 
  1.10  following terms have the meanings given. 
  1.11     (b) "Act" means sections 273.1399 and 469.174 to 469.1791. 
  1.12     (c) "Commissioner" means the commissioner of revenue. 
  1.13     (d) "Consultant" means an individual, partnership, 
  1.14  association, private corporation, or any other legal entity that 
  1.15  provides consulting services. 
  1.16     (e) "Consulting services" include the rendering of 
  1.17  professional opinion, advice, or analysis regarding application 
  1.18  of the act for a municipality or authority, including legal, 
  1.19  accounting, and fiscal services. 
  1.20     Subd. 2.  [REGISTRATION.] (a) All consultants who provide 
  1.21  consulting services to municipalities or development authorities 
  1.22  must register with the commissioner.  In order to register, 
  1.23  consultants must meet and demonstrate compliance with the 
  1.24  following criteria: 
  1.25     (1) provide a signed statement agreeing to abide by the 
  2.1   act; 
  2.2      (2) provide a signed statement agreeing to make available 
  2.3   for inspection any records requested by the commissioner, state 
  2.4   auditor, or commissioner of commerce for field or financial 
  2.5   audits under the scope of the act; 
  2.6      (3) certify knowledge of the requirements of the act and 
  2.7   guidelines published by the state auditor; 
  2.8      (4) obtain and maintain professional liability coverage; 
  2.9   and 
  2.10     (5) agree to submit to the commissioner a certificate or 
  2.11  certificates verifying the existence of the required insurance 
  2.12  coverage. 
  2.13     (b) The commissioner shall maintain a list of all 
  2.14  registered consultants. 
  2.15     (c) All consulting services must be performed by registered 
  2.16  consultants.  A municipality or authority may not contract for 
  2.17  consulting services other than with registered consultants.  
  2.18  This requirement does not apply to employees of the municipality 
  2.19  or development authority.  Reimbursement for services performed 
  2.20  by an unregistered consultant does not qualify for payment using 
  2.21  tax increments.  Consulting services performed by a consultant 
  2.22  before the consultant's removal from the registration list may 
  2.23  be paid with tax increments. 
  2.24     (d) If the information in an application for registration 
  2.25  becomes inaccurate or incomplete in any material respect, the 
  2.26  registered consultant must promptly file a corrected application 
  2.27  with the commissioner. 
  2.28     (e) Registration is effective 30 days after a complete 
  2.29  application is received by the commissioner. 
  2.30     (f) Registration under this section remains in force until 
  2.31  voluntarily terminated by the registrant or until suspended or 
  2.32  revoked by the commissioner of revenue.  All registrants must 
  2.33  comply with registration criteria under this subdivision. 
  2.34     Subd. 3.  [CONSULTANT AND CONTRACTOR SANCTIONS.] (a) The 
  2.35  commissioner of commerce may, by order, revoke a registration, 
  2.36  censure or suspend a registrant and require payment of all costs 
  3.1   of proceedings resulting in an action instituted under this 
  3.2   section and impose a civil penalty of not more than $10,000 if 
  3.3   the commissioner of commerce finds: 
  3.4      (1) that the order is in the public interest; and 
  3.5      (2) that the registrant or, in the case of a registrant 
  3.6   that is not a natural person, any partner, officer, or director, 
  3.7   any person occupying a similar status or performing similar 
  3.8   functions, or any person directly or indirectly controlling the 
  3.9   registrant committed a violation enumerated in paragraph (b). 
  3.10     (b) A consultant violates the provisions of this section if 
  3.11  the consultant: 
  3.12     (1) has engaged in conduct that departs from or fails to 
  3.13  conform to the minimal standards of acceptable and prevailing 
  3.14  legal, accounting, or fiscal practices under the act within the 
  3.15  reasonable control of the consultant; 
  3.16     (2) has committed fraud, embezzlement, theft, forgery, 
  3.17  bribery, falsified or destroyed records, made false statements, 
  3.18  received stolen property, made false claims, or obstructed 
  3.19  justice; 
  3.20     (3) is the subject of an order revoking, suspending, 
  3.21  restricting, limiting, or imposing other disciplinary action 
  3.22  against the consultant's license or certification in this or 
  3.23  another state or jurisdiction; 
  3.24     (4) has failed to comply with any of the ongoing 
  3.25  obligations for registration; 
  3.26     (5) has failed to comply with any provision or order under 
  3.27  the act or chapter 45; 
  3.28     (6) has provided consulting services without having an 
  3.29  accurate and complete registration on file with the 
  3.30  commissioner; 
  3.31     (7) has been shown to be incompetent, untrustworthy, or 
  3.32  financially irresponsible; or 
  3.33     (8) has made or assisted another in making any material 
  3.34  misrepresentation or omission to the governing body or staff of 
  3.35  the authority or the municipality or to the commissioner or upon 
  3.36  reasonable request has withheld or concealed information from, 
  4.1   or refused to furnish information to, the authority, 
  4.2   municipality, commissioner, or the commissioner of commerce. 
  4.3      Subd. 4.  [ORDERS.] The commissioner of commerce may issue 
  4.4   an order requiring a registrant or applicant for registration to 
  4.5   show cause why the registration should not be revoked or 
  4.6   suspended, the registrant censured, the application denied, or 
  4.7   other sanction imposed under this section.  The order must be 
  4.8   calculated to give reasonable notice of the time and place for 
  4.9   hearing on the matter and must state the reasons for the entry 
  4.10  of the order.  The commissioner of commerce may, by order, 
  4.11  summarily suspend a registration pending final determination of 
  4.12  an order to show cause.  A hearing on the merits must be held 
  4.13  within 30 days of the issuance of the order of summary 
  4.14  suspension.  All hearings must be conducted under chapter 14.  
  4.15  After the hearing, the commissioner of commerce shall enter an 
  4.16  order disposing of the matter as the facts require.  If the 
  4.17  registrant or applicant for registration fails to appear at a 
  4.18  hearing after having been duly notified of it, the person is in 
  4.19  default and the proceeding may be determined against the 
  4.20  registrant or applicant for registration upon consideration of 
  4.21  the order to show cause, the allegations of which may be 
  4.22  considered to be true. 
  4.23     <b>[EFFECTIVE DATE.]</b> This section is effective for consulting 
  4.24  services provided after July 1, 2002.