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Bill

SF 4945

Tax-related data practices policy and technical provisions

2025-2026 Regular Session

Sets privacy, security, and access rules for tax data handling by state agencies and contractors to protect confidential information.

Referred to Taxes
#datapracticesandprivacy #taxation
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Bill Summary · SF 4945

Summary of SF 4945 (Minnesota, 2025-2026)

Title

Tax-related data practices policy and technical provisions

Purpose and intent

SF 4945 establishes policy requirements and technical standards related to the handling of tax-specific data by state agencies, contractors, and other entities that process tax information. The bill is designed to clarify how tax data must be collected, stored, shared, protected, and used, with an emphasis on privacy, security, and compliance with applicable Minnesota statutes and data practices principles. It aims to align data practices with tax administration needs while safeguarding confidential information.

Key provisions and changes

Data practices policy

  • Codifies or clarifies the general data practices framework applicable to tax data held by state agencies.
  • Specifies rules governing access to, use of, and disclosure of tax-related information.
  • Addresses stewardship responsibilities to protect confidential tax data.

Access, use, and sharing

  • Sets criteria for who may access tax data (e.g., agency employees, contractors, external partners) and for what purposes.
  • Establishes limits on redissemination or further sharing of tax data.
  • May require minimum necessary use and data minimization when handling tax information.

Privacy and security standards

  • Introduces or reinforces security safeguards for tax data (e.g., encryption, access controls, incident response requirements).
  • Requires ongoing risk assessments and vulnerability management for systems handling tax data.
  • May specify requirements for breach notification or handling of security incidents involving tax information.

Data retention and disposal

  • Establishes retention periods for tax-related data and procedures for secure disposal when data is no longer needed.
  • Aligns retention with statutory tax administration needs and privacy requirements.

Technical provisions

  • Addresses standards for technical implementation, including system interoperability, data interchange, and compatibility with existing Minnesota data systems.
  • May include requirements for documentation, data mapping, and metadata related to tax data processing.

Oversight and compliance

  • Creates or references compliance monitoring mechanisms, audits, or reporting obligations related to tax data practices.
  • Establishes potential penalties or corrective actions for noncompliance with data practices provisions.

Who is affected

  • Minnesota state agencies that handle tax data (e.g., Department of Revenue and other entities involved in tax administration).
  • Contractors, vendors, and partner organizations working with tax data under state contracts.
  • Entities and individuals with authorized access to tax-related information.
  • Taxpayers and the general public may be indirectly affected through enhanced privacy protections and governed access to data.

Procedural and timeline notes

  • Status: Introduced and referred to the House or Senate Taxes Committee on April 7, 2026 (SF 4945). The action history shows introduction and first reading on that date.
  • Next steps typically include committee review, potential amendments, and floor consideration, followed by passage or rejection and eventual transmission to the other chamber.
  • Timelines will depend on committee schedules and legislative priorities for the 2025-2026 session.

Potential impact and considerations

  • Strengthened privacy and security for tax data could reduce risk of data breaches and improper disclosures.
  • Clarifies roles and responsibilities for agencies and contractors handling tax information.
  • May affect data-sharing practices within government and with authorized external partners.
  • Could influence compliance costs due to additional security, retention, and audit requirements.

This summary reflects the bill’s stated focus on tax data practices—privacy, security, access, and technical management—based on the provided title and action history. For a detailed understanding, review the bill’s full text and any fiscal notes or committee analyses once released.

Compiled from official sources — confirm details with the bill’s official record.

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