HF 2397

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; tax increment financing; 
  1.3             establishing rules for pooling by pre-1982 districts; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapter 469. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [469.1764] [PRE-1982 DISTRICTS; POOLING RULES.] 
  1.8      Subdivision 1.  [SCOPE; APPLICATION.] (a) This section 
  1.9   applies to a tax increment financing district or area added to a 
  1.10  district, if the request for certification of the district or 
  1.11  the area added to the district was made after July 31, 1979, and 
  1.12  before July 1, 1982. 
  1.13     (b) This section and any special law applying to the 
  1.14  district enacted before the effective date of this section are 
  1.15  the exclusive authority to spend tax increments on activities 
  1.16  located outside of the geographic area of a tax increment 
  1.17  financing district that is subject to this section. 
  1.18     Subd. 2.  [STATE AUDITOR NOTIFICATION.] By August 1, 1999, 
  1.19  the state auditor shall notify in writing each authority for 
  1.20  which the auditor has records that the authority has a district 
  1.21  subject to this section. 
  1.22     Subd. 3.  [RATIFICATION OF PAST SPENDING.] (a) The 
  1.23  following expenditures of increments on activities located 
  1.24  outside of the geographic area of a district subject to this 
  1.25  section are permitted: 
  2.1      (1) expenditures made before the earlier of (i) 
  2.2   notification by the state auditor or (ii) December 31, 1999; and 
  2.3      (2) expenditures to pay pre-existing outside-district 
  2.4   obligations. 
  2.5      Subd. 4.  [DECERTIFICATION REQUIRED.] (a) The provisions of 
  2.6   this subdivision apply to any tax increment financing district 
  2.7   subject to this section, if increments from the district were 
  2.8   used on activities located outside of the geographic area of the 
  2.9   district. 
  2.10     (b) After December 31, 1999, any tax increments received by 
  2.11  the authority from a district subject to this subdivision may be 
  2.12  expended only to pay:  
  2.13     (1) pre-existing in-district obligations; 
  2.14     (2) pre-existing outside-district obligations; and 
  2.15     (3) administrative expenses.  
  2.16     After all pre-existing obligations have been paid or 
  2.17  defeased, the district must be decertified and any remaining 
  2.18  increments distributed as excess increments under section 
  2.19  469.176, subdivision 2. 
  2.20     Subd. 5.  [DEFINITIONS.] (a) "Notification by the state 
  2.21  auditor" means the receipt by the authority or the municipality 
  2.22  of a written notification from the state auditor that its 
  2.23  expenditures of increments from the district on activities 
  2.24  located outside of the geographic area of the district were not 
  2.25  in compliance with state law. 
  2.26     (b) "Pre-existing outside district obligations" mean: 
  2.27     (1) bonds secured by increments from a district subject to 
  2.28  this section and used to finance activities outside the 
  2.29  geographic area of the district, if the bonds were issued and 
  2.30  the pledge of increment was made before the earlier of (i) 
  2.31  notification by the state auditor or (ii) May 1, 1999; or 
  2.32     (2) binding written agreements secured by the increments 
  2.33  from the district subject to this section and used to finance 
  2.34  activities outside the geographic area of the district, if the 
  2.35  agreement was entered before the earlier of (i) notification by 
  2.36  the state auditor or (ii) September 30, 1999. 
  3.1      (c) "Pre-existing in-district obligations" mean: 
  3.2      (1) bonds secured by increments from a district subject to 
  3.3   this section and not used to finance activities outside of the 
  3.4   geographic area of the district, if the bonds were issued and 
  3.5   the pledge of increments was made before May 1, 1999; and 
  3.6      (2) binding written agreements secured by increments from a 
  3.7   district subject to this section and not used to finance 
  3.8   activities outside of the geographic area of the district, if 
  3.9   the agreements were entered into and the pledge of increments 
  3.10  was made before September 1, 1999. 
  3.11     Sec. 2.  [EFFECTIVE DATE.] 
  3.12     Section 1 is effective the day following final enactment 
  3.13  and applies to districts for which the request for certification 
  3.14  was made after July 31, 1979, and before July 1, 1982.