HF 187

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; prohibiting modification and 
  1.3             limiting expenditures of certain tax increment 
  1.4             financing districts; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 469. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [469.1792] [CERTAIN DISTRICTS; LIMITATIONS.] 
  1.8      Subdivision 1.  [TAX INCREMENT FINANCING PLAN MODIFICATION 
  1.9   PROHIBITED.] Notwithstanding any other law to the contrary, no 
  1.10  tax increment financing district the certification of which was 
  1.11  requested before May 1, 1990, may modify its tax increment 
  1.12  financing plan after April 30, 2001. 
  1.13     Subd. 2.  [LIMITS ON USE OF TAX INCREMENT REVENUES.] (a) 
  1.14  After April 30, 2001, revenues derived from tax increments by a 
  1.15  tax increment financing district the certification of which was 
  1.16  requested before May 1, 1990, may be expended on an activity as 
  1.17  defined under section 469.1763, subdivision 2, only if one of 
  1.18  the following occurs: 
  1.19     (1) on or before April 30, 2002, the revenues are actually 
  1.20  paid to a third party with respect to the activity; 
  1.21     (2) bonds, the proceeds of which must be used to finance 
  1.22  the activity, are issued and sold to a third party on or before 
  1.23  April 30, 2002, the revenues are spent to repay the bonds, and 
  1.24  the proceeds of the bonds either are, on the date of issuance, 
  1.25  reasonably expected to be spent on or before April 30, 2002, or 
  2.1   are deposited in a reasonably required reserve or replacement 
  2.2   fund; 
  2.3      (3) binding contracts with a third party are entered into 
  2.4   for performance of the activity on or before April 30, 2002, and 
  2.5   the revenues are spent under the contractual obligation; or 
  2.6      (4) costs with respect to the activity are paid on or 
  2.7   before April 30, 2002, and the revenues are spent to reimburse a 
  2.8   party for payment of the costs, including interest on 
  2.9   unreimbursed costs. 
  2.10     (b) For purposes of this section, bonds include subsequent 
  2.11  refunding bonds if the original refunded bonds meet the 
  2.12  requirements of paragraph (a), clause (2). 
  2.13     (c) Nothing in this section shall be deemed to extend the 
  2.14  duration of a district beyond the earlier of: 
  2.15     (1) the duration limit of the district as established in 
  2.16  its tax increment financing plan; or 
  2.17     (2) the duration limit of the district as established by 
  2.18  law. 
  2.19     Subd. 3.  [USE OF REVENUES FOR DECERTIFICATION.] (a) For 
  2.20  any tax increment financing district subject to subdivision 2, 
  2.21  any revenues derived from tax increments paid by properties in 
  2.22  the district that remain after the expenditures permitted under 
  2.23  subdivision 2 must be used only to pay: 
  2.24     (1) outstanding bonds, as defined in subdivision 2, 
  2.25  paragraphs (a), clause (2), and (b); 
  2.26     (2) contractual obligations, as defined in subdivision 2, 
  2.27  paragraph (a), clauses (3) and (4); or 
  2.28     (3) credit enhanced bonds as defined in section 469.1763, 
  2.29  subdivision 5, to which the revenues derived from tax increments 
  2.30  are pledged, but only to the extent that revenues of the 
  2.31  district for which the credit enhanced bonds were issued are 
  2.32  insufficient to pay the bonds and to the extent that the 
  2.33  increments from the applicable pooling percent share for the 
  2.34  district are insufficient. 
  2.35     (b) When the outstanding bonds have been defeased and when 
  2.36  sufficient money has been set aside to pay contractual 
  3.1   obligations as defined in subdivision 2, paragraph (a), clauses 
  3.2   (3) and (4), the district must be decertified and the pledge of 
  3.3   tax increment discharged. 
  3.4      [EFFECTIVE DATE.] This section is effective the day 
  3.5   following final enactment for districts for which the request 
  3.6   for certification was made before May 1, 1990.