Bill Text: MN HF174 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Department of Revenue required to issue a request for proposals for a tax analytics and business intelligence contract, and money appropriated.
Spectrum: Partisan Bill (Republican 9-0)
Status: (Introduced - Dead) 2011-05-10 - Second reading [HF174 Detail]
Download: Minnesota-2011-HF174-Engrossed.html
1.2relating to state government; requiring the Department of Revenue to issue a
1.3request for proposals for a tax analytics and business intelligence contract;
1.4appropriating money.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. DEPARTMENT OF REVENUE; REQUEST FOR PROPOSALS.
1.7(a) The commissioner of revenue shall issue a request for proposals for a contract to
1.8implement a system of tax analytics and business intelligence tools to enhance the state's
1.9tax collection process and revenues by improving the means of identifying candidates
1.10for audit and collection activities and prioritizing those activities to provide the highest
1.11returns on auditors' and collection agents' time. The request for proposals must require
1.12that the system recommended and implemented by the contractor:
1.13(1) leverage the Department of Revenue's existing data and other available data
1.14sources to build models that more effectively and efficiently identify accounts for audit
1.15review and collections;
1.16(2) leverage advanced analytical techniques and technology such as pattern
1.17detection, predictive modeling, clustering, outlier detection and link analysis to identify
1.18suspect accounts for audit review and collections;
1.19(3) leverage a variety of approaches and analytical techniques to rank accounts and
1.20improve the success rate and the return on investment of department employees engaged
1.21in audit activities;
1.22(4) leverage technology to make the audit process more sustainable and stable, even
1.23with turnover of department auditing staff;
2.1(5) provide optimization capabilities to more effectively prioritize collections and
2.2increase the efficiency of employees engaged in collections activities; and
2.3(6) incorporate mechanisms to decrease wrongful auditing and reduce interference
2.4with Minnesota taxpayers who are fully complying with the laws.
2.5(b) Based on reasonable responses to the request for proposals, the commissioner
2.6shall enter into a contract for the services specified in paragraph (a) by October 1, 2011.
2.7(c) Incorporating the system of tax analytics and business intelligence tools under
2.8the contract in this section, the commissioner of revenue shall identify and collect tax
2.9liabilities from individuals and businesses that currently do not pay all taxes owed.
2.10The commissioner may enter into additional contracts and retain up to five percent
2.11administrative costs as necessary to implement this section. A contract may incorporate
2.12a vendor financing option. A contract shall not compensate the vendor based on a
2.13percentage of taxes assessed or collected.
2.14(d) $11,504,000 for the fiscal year ending June 30, 2012, and $23,269,000 for
2.15the fiscal year ending June 30, 2013, are appropriated from the general fund to the
2.16commissioner of revenue for purposes of this section. This initiative is expected to result
2.17in new general fund revenues of $133,000,000 for the biennium ending June 30, 2013.
2.18(e) The commissioner of revenue must report to the chairs of the house of
2.19representatives Ways and Means and senate Finance Committees by March 1, 2012, and
2.20January 15, 2013, on collection of additional revenue under this section.
2.21(f)(1) If the commissioner of revenue determines that the initiative under this section
2.22will result in new general fund revenues of less than $133,000,000 for the biennium
2.23ending June 30, 2013, the commissioner must notify the commissioner of management
2.24and budget of the amount of new general fund revenues anticipated under this section.
2.25(2) Upon receiving a notice from the commissioner of revenue under clause (1), the
2.26commissioner of management and budget must reduce general fund appropriations to
2.27executive agencies for agency operations for the biennium ending June 30, 2013, by an
2.28amount equal to the difference between $133,000,000 and the amount of new general fund
2.29revenues anticipated by the commissioner of revenue under the notice in clause (1).
2.30EFFECTIVE DATE.This section is effective the day following final enactment.
2.31 Sec. 2. APPROPRIATIONS MADE ONLY ONCE.
2.32If the appropriations made in this bill are enacted more than once in the 2011 regular
2.33session, these appropriations must be given effect only once.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
1.3request for proposals for a tax analytics and business intelligence contract;
1.4appropriating money.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. DEPARTMENT OF REVENUE; REQUEST FOR PROPOSALS.
1.7(a) The commissioner of revenue shall issue a request for proposals for a contract to
1.8implement a system of tax analytics and business intelligence tools to enhance the state's
1.9tax collection process and revenues by improving the means of identifying candidates
1.10for audit and collection activities and prioritizing those activities to provide the highest
1.11returns on auditors' and collection agents' time. The request for proposals must require
1.12that the system recommended and implemented by the contractor:
1.13(1) leverage the Department of Revenue's existing data and other available data
1.14sources to build models that more effectively and efficiently identify accounts for audit
1.15review and collections;
1.16(2) leverage advanced analytical techniques and technology such as pattern
1.17detection, predictive modeling, clustering, outlier detection and link analysis to identify
1.18suspect accounts for audit review and collections;
1.19(3) leverage a variety of approaches and analytical techniques to rank accounts and
1.20improve the success rate and the return on investment of department employees engaged
1.21in audit activities;
1.22(4) leverage technology to make the audit process more sustainable and stable, even
1.23with turnover of department auditing staff;
2.1(5) provide optimization capabilities to more effectively prioritize collections and
2.2increase the efficiency of employees engaged in collections activities; and
2.3(6) incorporate mechanisms to decrease wrongful auditing and reduce interference
2.4with Minnesota taxpayers who are fully complying with the laws.
2.5(b) Based on reasonable responses to the request for proposals, the commissioner
2.6shall enter into a contract for the services specified in paragraph (a) by October 1, 2011.
2.7(c) Incorporating the system of tax analytics and business intelligence tools under
2.8the contract in this section, the commissioner of revenue shall identify and collect tax
2.9liabilities from individuals and businesses that currently do not pay all taxes owed.
2.10The commissioner may enter into additional contracts and retain up to five percent
2.11administrative costs as necessary to implement this section. A contract may incorporate
2.12a vendor financing option. A contract shall not compensate the vendor based on a
2.13percentage of taxes assessed or collected.
2.14(d) $11,504,000 for the fiscal year ending June 30, 2012, and $23,269,000 for
2.15the fiscal year ending June 30, 2013, are appropriated from the general fund to the
2.16commissioner of revenue for purposes of this section. This initiative is expected to result
2.17in new general fund revenues of $133,000,000 for the biennium ending June 30, 2013.
2.18(e) The commissioner of revenue must report to the chairs of the house of
2.19representatives Ways and Means and senate Finance Committees by March 1, 2012, and
2.20January 15, 2013, on collection of additional revenue under this section.
2.21(f)(1) If the commissioner of revenue determines that the initiative under this section
2.22will result in new general fund revenues of less than $133,000,000 for the biennium
2.23ending June 30, 2013, the commissioner must notify the commissioner of management
2.24and budget of the amount of new general fund revenues anticipated under this section.
2.25(2) Upon receiving a notice from the commissioner of revenue under clause (1), the
2.26commissioner of management and budget must reduce general fund appropriations to
2.27executive agencies for agency operations for the biennium ending June 30, 2013, by an
2.28amount equal to the difference between $133,000,000 and the amount of new general fund
2.29revenues anticipated by the commissioner of revenue under the notice in clause (1).
2.30EFFECTIVE DATE.This section is effective the day following final enactment.
2.31 Sec. 2. APPROPRIATIONS MADE ONLY ONCE.
2.32If the appropriations made in this bill are enacted more than once in the 2011 regular
2.33session, these appropriations must be given effect only once.
2.34EFFECTIVE DATE.This section is effective the day following final enactment.
