HF 1041

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

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing its 
  1.3             use for workforce development purposes; providing for 
  1.4             limitations; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 469. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [469.1751] [USE FOR WORKFORCE DEVELOPMENT.] 
  1.8      Subdivision 1.  [AUTHORIZATION.] A qualified authority may 
  1.9   establish an economic development district under this section to 
  1.10  finance workforce development.  An authority may exercise powers 
  1.11  under this section, notwithstanding any limitations in or lack 
  1.12  of authority to engage in these activities in the law creating 
  1.13  the authority. 
  1.14     Subd. 2.  [QUALIFIED AUTHORITY.] (a) An authority is a 
  1.15  qualified authority, if the municipality for the district meets 
  1.16  either of the following requirements: 
  1.17     (1) the unemployment rate for the municipality was at least 
  1.18  125 percent of the state unemployment rate; or 
  1.19     (2) the median household income for the municipality was 80 
  1.20  percent or less of the median household income for the state. 
  1.21     (b) Determination of unemployment rates and median 
  1.22  household incomes must be done using the most recent and 
  1.23  reliable data available at the time of approval of the tax 
  1.24  increment financing plan. 
  1.25     Subd. 3.  [EXEMPTIONS; FINDING REQUIREMENTS.] Establishment 
  2.1   of a district under this section is not subject to the finding 
  2.2   requirements under section 469.174, subdivision 12, or 469.175, 
  2.3   subdivision 3, clause (2). 
  2.4      Subd. 4.  [PERMITTED PURPOSES.] (a) Increment from a 
  2.5   district established under this section may be used to: 
  2.6      (1) provide customized job training for employees hired 
  2.7   after approval of the tax increment financing plan; and 
  2.8      (2) assist in recruiting or attracting new employees to 
  2.9   work for employers in the district. 
  2.10     (b) To carry out these purposes, increment may be paid to: 
  2.11     (1) an employer to reimburse the employer for expenses paid 
  2.12  or incurred for the purposes permitted under paragraph (a), 
  2.13  clause (2); or 
  2.14     (2) an accredited training organized under chapter 116L 
  2.15  that provides the services for employers located in the district.
  2.16     (c) Increment from a district established under this 
  2.17  section may only be used for the purposes specified in paragraph 
  2.18  (a) and for the administrative expenses required under section 
  2.19  469.176, subdivision 4h, paragraph (a).  The amount spent for 
  2.20  the purposes permitted under paragraph (a), clause (2), may not 
  2.21  exceed ten percent of the total increment for the district. 
  2.22     (d) Customized job training means providing job training 
  2.23  that meets the needs of an employer for specific jobs identified 
  2.24  by the employer and includes training provided under the 
  2.25  Minnesota job skills partnership program. 
  2.26     Subd. 5.  [DURATION LIMIT.] Notwithstanding the provisions 
  2.27  of section 469.176, subdivision 1b, increment from a district 
  2.28  established under this section may not be paid to an authority 
  2.29  after the earlier of: 
  2.30     (1) four years after the receipt by the authority of the 
  2.31  first increment; or 
  2.32     (2) completion of the workforce development activities 
  2.33  authorized in the tax increment financing plan. 
  2.34     Subd. 6.  [POOLING PROHIBITED.] Notwithstanding section 
  2.35  469.1763 or any other provision of this chapter, increments from 
  2.36  the district may only be spent on workforce development 
  3.1   activities for employers located within the area of the tax 
  3.2   increment financing district. 
  3.3      Subd. 7.  [PROHIBITION ON AMENDMENTS.] (a) Notwithstanding 
  3.4   the provisions of section 469.175 or any other law, an authority 
  3.5   may not amend a tax increment financing plan after its final 
  3.6   adoption by the municipality.  This prohibition applies to any 
  3.7   amendments that would: 
  3.8      (1) increase the area of the district; 
  3.9      (2) expand or otherwise change the permitted purposes for 
  3.10  which increment may be spent; 
  3.11     (3) increase the dollar amount of the increment or other 
  3.12  revenues that may be spent; 
  3.13     (4) authorize bonds to be issued or other debt to be 
  3.14  incurred; 
  3.15     (5) modify to whom increment may be paid; or 
  3.16     (6) increase the duration of the district. 
  3.17     (b) This subdivision does not prohibit amendments to the 
  3.18  plan to correct minor errors or oversights to be consistent with 
  3.19  the original intent of the plan as adopted by the authority and 
  3.20  approved by the municipality. 
  3.21     Subd. 8.  [EXPIRATION.] Authority to establish a tax 
  3.22  increment financing district under this section expires on 
  3.23  December 31, 2004.