SF 3474

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/02/2025 09:54 a.m.

A bill for an act
relating to property taxation; tax increment financing; allowing an authority to
stop payments after finding that a developer, contractor, or subcontractor has
violated state or municipal labor law; proposing coding for new law in Minnesota
Statutes, chapter 469.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [469.1767] REMEDIES FOR LABOR LAW VIOLATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Remedies. new text end

new text begin If the municipality makes a finding, pursuant to the
requirements of subdivision 2, that a developer, contractor, or subcontractor violated state
or municipal labor laws in developing a project approved by the municipality, the authority
may, notwithstanding any contract, note, or agreement to the contrary, stop payments of
increment to a developer, property owner, or note holder for costs of activities incurred in
developing the project, including payments for any interest accrued through the financing
of such costs.
new text end

new text begin Subd. 2. new text end

new text begin Public notice, hearing, and discussion required. new text end

new text begin (a) The municipality shall
make a finding of a labor law violation only after a public hearing thereon after published
notice in a newspaper of general circulation in the municipality at least once not less than
ten days nor more than 30 days prior to the date of the hearing. The notice must include the
proposed findings to be adopted at the hearing.
new text end

new text begin (b) A finding of a labor law violation must include a citation to the labor law found to
be violated and facts supporting the finding, including the dates, times, or locations of any
alleged violations.
new text end

new text begin (c) Before the finding is adopted or at the hearing at which it is to be adopted, any
developer, property owner, or note holder connected with the project may file a written
objection with the clerk of the municipality.
new text end

new text begin Subd. 3. new text end

new text begin Challenge in district court. new text end

new text begin (a) Within 30 days after the municipality makes
a finding under subdivision 2, any person or entity found to have violated a labor law may
bring suit for equitable relief or for damages. Within 30 days after the authority stops
payment under subdivision 1, any person or entity to whom payments are stopped may bring
suit for equitable relief or for damages.
new text end

new text begin (b) A court hearing a challenge under paragraph (a) shall rule in favor of the challenger
if it finds either that the procedures set forth in subdivision 2 were not followed or that the
law cited in the finding was not violated.
new text end

new text begin (c) The prevailing party in a suit filed under this subdivision is entitled to costs, including
reasonable attorney fees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts for which the request for certification was made after the day following
final enactment.
new text end