HF 4167

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; making technical and minor policy changes related to
calculation and administration of tax increment financing; modifying the
procedures for issuing tax increment financing bonds; amending Minnesota
Statutes 2004, sections 469.175, subdivision 4; 469.176, subdivision 1; 469.1763,
subdivisions 3, 4; 469.1771, subdivision 2a; 475.58, subdivision 1; Minnesota
Statutes 2005 Supplement, sections 469.175, subdivisions 2, 5; 469.1763,
subdivision 6; 469.177, subdivision 1.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 469.175, subdivision 2,
is amended to read:

Subd. 2.

Consultations; comment and filing.

(a) Before formation of a tax
increment financing district, the authority shall provide the county auditor and clerk of
the school board with the proposed tax increment financing plan for the district and the
authority's estimate of the fiscal and economic implications of the proposed tax increment
financing district. The authority must provide the proposed tax increment financing plan
and the information on the fiscal and economic implications of the plan to the county
auditor and the clerk of the school district board at least 30 days before the public hearing
required by subdivision 3. The information on the fiscal and economic implications may
be included in or as part of the tax increment financing plan. The county auditor and
clerk of the school board shall provide copies to the members of the boards, as directed
by their respective boards. The 30-day requirement is waived if the boards of the county
and school district submit written comments on the proposal and any modification of the
proposal to the authority after receipt of the information.

(b) For purposes of this subdivision, "fiscal and economic implications of the
proposed tax increment financing district" includes:

(1) an estimate of the total amount of tax increment that will be generated over the
life of the district;

(2) a new text begin narrative new text end description of the probable impact of the district on city-provided
services such as police and fire protection, public infrastructure, and deleted text begin borrowing costs deleted text end new text begin the
impact of any general obligation tax increment bonds new text end attributable to the district new text begin upon the
ability to issue other debt for general fund purposes new text end ;

(3) the estimated amount of tax increments over the life of the district that would
be attributable to school district levies, assuming the school district's share of the total
local tax rate for all taxing jurisdictions remained the same;

(4) the estimated amount of tax increments over the life of the district that would be
attributable to county levies, assuming the county's share of the total local tax rate for all
taxing jurisdictions remained the same; and

(5) deleted text begin any deleted text end additional information new text begin regarding the size, timing, or type of development in
the district new text end requested by the county or the school district that would enable it to determine
additional costs that will accrue to it due to the development proposed for the district. new text begin
If a county or school district has not adopted standard questions in a written policy on
information requested for fiscal and economic implications, a county or school district
must request additional information no later than 15 days after receipt of the tax increment
financing plan and the request does not require an additional 30 days of notice before
the public hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for proposed tax increment financing
plans provided after June 30, 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 469.175, subdivision 4, is amended to read:

Subd. 4.

Modification of plan.

(a) A tax increment financing plan may be modified
by an authority.

(b) The authority may make the following modifications only upon the notice and
after the discussion, public hearing, and findings required for approval of the original plan:

(1) any reduction or enlargement of geographic area of the project or tax increment
financing district that does not meet the requirements of paragraph (e);

(2) increase in amount of bonded indebtedness to be incurred;

(3) a determination to capitalize interest on the debt if that determination was not a
part of the original plan deleted text begin , or to increase or decrease the amount of interest on the debt to
be capitalized deleted text end ;

(4) increase in the portion of the captured net tax capacity to be retained by the
authority;

(5) increase in the estimate of the cost of the project, including administrative
expenses, that will be paid or financed with tax increment from the district; or

(6) designation of additional property to be acquired by the authority.

(c) If an authority changes the type of district to another type of district, this change
is not a modification but requires the authority to follow the procedure set forth in sections
469.174 to 469.179 for adoption of a new plan, including certification of the net tax
capacity of the district by the county auditor.

(d) If a redevelopment district or a renewal and renovation district is enlarged,
the reasons and supporting facts for the determination that the addition to the district
meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2),
or subdivision 10a, must be documented.

(e) The requirements of paragraph (b) do not apply if (1) the only modification is
elimination of parcels from the project or district and (2)(A) the current net tax capacity
of the parcels eliminated from the district equals or exceeds the net tax capacity of
those parcels in the district's original net tax capacity or (B) the authority agrees that,
notwithstanding section 469.177, subdivision 1, the original net tax capacity will be
reduced by no more than the current net tax capacity of the parcels eliminated from the
district. The authority must notify the county auditor of any modification that reduces or
enlarges the geographic area of a district or a project area.

(f) The geographic area of a tax increment financing district may be reduced, but
shall not be enlarged after five years following the date of certification of the original net
tax capacity by the county auditor or after August 1, 1984, for tax increment financing
districts authorized prior to August 1, 1979.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts, regardless of when
the request for certification was made, and applies to plan amendments adopted after the
day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 469.175, subdivision 5, is
amended to read:

Subd. 5.

Annual disclosure.

An annual statement showing for each district the
information required to be reported under subdivision 6, paragraph (c), clauses (1), (2),
(3), (11), (12), (18), and (19); the amounts of tax increment received and expended in the
reporting period; and any additional information the authority deems necessary must be
published in a newspaper of general circulation in the municipality that approved the
tax increment financing plan. The annual statement must inform readers that additional
information regarding each district may be obtained from the authority, and must explain
how the additional information may be requested. The authority must publish the annual
statement for a year no later than August 15 of the next year. The authority must identify
the newspaper of general circulation in the municipality to which the annual statement has
been or will be submitted for publication and provide a copy of the annual statement to the
county board, the county auditor, deleted text begin the school board, deleted text end the state auditor, and, if the authority is
other than the municipality, the governing body of the municipality on or before August
1 of the year in which the statement must be published.

The disclosure requirements imposed by this subdivision apply to districts certified
before, on, or after August 1, 1979.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for disclosures required to be
provided after June 30, 2006.
new text end

Sec. 4.

Minnesota Statutes 2004, section 469.176, subdivision 1, is amended to read:

Subdivision 1.

Duration of tax increment financing districts.

(a) Subject to the
limitations contained in subdivisions 1a to 1f, any tax increment financing district as to
which bonds are outstanding, payment for which the tax increment and other revenues
have been pledged, shall remain in existence at least as long as the bonds continue to be
outstanding. The municipality may, at the time of approval of the initial tax increment
financing plan, provide for a shorter maximum duration limit than specified in subdivisions
1a to 1f. The specified limit applies in place of the otherwise applicable limit new text begin , unless the
authority modifies the plan following the procedures under section 469.175, subdivision 4,
paragraph (b) new text end .

(b) The tax increment pledged to the payment of the bonds and interest thereon may
be discharged and the tax increment financing district may be terminated if sufficient funds
have been irrevocably deposited in the debt service fund or other escrow account held in
trust for all outstanding bonds to provide for the payment of the bonds at maturity or date
of redemption and interest thereon to the maturity or redemption date.

(c) For bonds issued pursuant to section 469.178, subdivisions 2 and 3, the full
faith and credit and any taxing powers of the municipality or authority are pledged to the
payment of the bonds until the principal of and interest on the bonds has been paid in full.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts, regardless of when
the request for certification was made, and applies to plan amendments adopted after the
day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2004, section 469.1763, subdivision 3, is amended to read:

Subd. 3.

Five-year rule.

(a) Revenues derived from tax increments are considered
to have been expended on an activity within the district under subdivision 2 only if one
of the following occurs:

(1) before or within five years after certification of the district, the revenues are
actually paid to a third party with respect to the activity;

(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification, the revenues are spent
to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or
(ii) a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;

(3) binding contracts with a third party are entered into for performance of the
activity before or within five years after certification of the district and the revenues are
spent under the contractual obligation;

(4) costs with respect to the activity are paid before or within five years after
certification of the district and the revenues are spent to reimburse a party for payment
of the costs, including interest on unreimbursed costs; or

(5) expenditures are made for housing purposes as permitted by subdivision 2,
deleted text begin paragraph deleted text end new text begin paragraphs new text end (b) new text begin and (d) new text end .

(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
the original refunded bonds meet the requirements of paragraph (a), clause (2).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after April 30, 1990.
new text end

Sec. 6.

Minnesota Statutes 2004, section 469.1763, subdivision 4, is amended to read:

Subd. 4.

Use of revenues for decertification.

(a) In each year beginning with the
sixth year following certification of the district, if the applicable in-district percent of the
revenues derived from tax increments paid by properties in the district exceeds the amount
of expenditures that have been made for costs permitted under subdivision 3, an amount
equal to the difference between the in-district percent of the revenues derived from tax
increments paid by properties in the district and the amount of expenditures that have
been made for costs permitted under subdivision 3 must be used and only used to pay or
defease the following or be set aside to pay the following:

(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);

(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4); deleted text begin or
deleted text end

(3) credit enhanced bonds to which the revenues derived from tax increments are
pledged, but only to the extent that revenues of the district for which the credit enhanced
bonds were issued are insufficient to pay the bonds and to the extent that the increments
from the applicable pooling percent share for the district are insufficient deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) the amount provided by the tax increment financing plan to be paid under
subdivision 2, paragraphs (b) and (d).
new text end

(b) new text begin The district must be decertified and the pledge of tax increment discharged
new text end when the outstanding bonds have been defeased and when sufficient money has been set
aside to pay new text begin , based on the increment to be collected through the end of the calendar year,
the following amounts:
new text end

new text begin (1) new text end contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and
(4) deleted text begin , the district must be decertified and the pledge of tax increment discharged. deleted text end new text begin ;
new text end

new text begin (2) the amount specified in the tax increment financing for activities qualifying under
subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds; and
new text end

new text begin (3) the additional expenditures permitted by the tax increment financing plan for
housing activities under an election under subdivision 2, paragraph (d), that have not
been funded with the proceeds of bonds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification was made after April 30, 1990.
new text end

Sec. 7.

Minnesota Statutes 2005 Supplement, section 469.1763, subdivision 6, is
amended to read:

Subd. 6.

Pooling permitted for deficits.

(a) This subdivision applies only to
districts for which the request for certification was made before August 1, 2001, and
without regard to whether the request for certification was made prior to August 1, 1979.

(b) The municipality for the district may transfer available increments from another
tax increment financing district located in the municipality, if the transfer is necessary to
eliminate a deficit in the district to which the increments are transferred. new text begin The municipality
may transfer increments as provided by this subdivision without regard to whether the
transfer or expenditure is authorized by the tax increment financing plan for the district
from which the transfer is made. new text end A deficit in the district for purposes of this subdivision
means the lesser of the following two amounts:

(1)(i) the amount due during the calendar year to pay preexisting obligations of
the district; minus

(ii) the total increments collected or to be collected from properties located within
the district that are available for the calendar year including amounts collected in prior
years that are currently available; plus

(iii) total increments from properties located in other districts in the municipality
including amounts collected in prior years that are available to be used to meet the
district's obligations under this section, excluding this subdivision, or other provisions of
law (but excluding a special tax under section 469.1791 and the grant program under Laws
1997, chapter 231, article 1, section 19, or Laws 2001, First Special Session chapter 5); or

(2) the reduction in increments collected from properties located in the district for
the calendar year as a result of the changes in class rates in Laws 1997, chapter 231, article
1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001, First
Special Session chapter 5, or the elimination of the general education tax levy under
Laws 2001, First Special Session chapter 5.

The authority may compute the deficit amount under clause (1) only (without regard
to the limit under clause (2)) if the authority makes an irrevocable commitment, by
resolution, to use increments from the district to which increments are to be transferred and
any transferred increments are only used to pay preexisting obligations and administrative
expenses for the district that are required to be paid under section 469.176, subdivision
4h, paragraph (a).

(c) A preexisting obligation means:

(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a
binding contract requiring the issuance of bonds entered into before July 1, 2001, and
bonds issued to refund such bonds or to reimburse expenditures made in conjunction with
a signed contractual agreement entered into before August 1, 2001, to the extent that the
bonds are secured by a pledge of increments from the tax increment financing district; and

(2) binding contracts entered into before August 1, 2001, to the extent that the
contracts require payments secured by a pledge of increments from the tax increment
financing district.

(d) The municipality may require a development authority, other than a seaway port
authority, to transfer available increments including amounts collected in prior years that
are currently available for any of its tax increment financing districts in the municipality to
make up an insufficiency in another district in the municipality, regardless of whether the
district was established by the development authority or another development authority.
This authority applies notwithstanding any law to the contrary, but applies only to a
development authority that:

(1) was established by the municipality; or

(2) the governing body of which is appointed, in whole or part, by the municipality
or an officer of the municipality or which consists, in whole or part, of members of
the governing body of the municipality. The municipality may use this authority only
after it has first used all available increments of the receiving development authority to
eliminate the insufficiency and exercised any permitted action under section 469.1792,
subdivision 3, for preexisting districts of the receiving development authority to eliminate
the insufficiency.

(e) The authority under this subdivision to spend tax increments outside of the area
of the district from which the tax increments were collected:

(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c,
4d, 4e, 4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the
other provisions of this section; and the percentage restrictions under subdivision 2 must
be calculated after deducting increments spent under this subdivision from the total
increments for the district; and

(2) applies notwithstanding the provisions of the Tax Increment Financing Act in
effect for districts for which the request for certification was made before June 30, 1982,
or any other law to the contrary.

(f) If a preexisting obligation requires the development authority to pay an amount
that is limited to the increment from the district or a specific development within the
district and if the obligation requires paying a higher amount to the extent that increments
are available, the municipality may determine that the amount due under the preexisting
obligation equals the higher amount and may authorize the transfer of increments
under this subdivision to pay up to the higher amount. The existence of a guarantee of
obligations by the individual or entity that would receive the payment under this paragraph
is disregarded in the determination of eligibility to pool under this subdivision. The
authority to transfer increments under this paragraph may only be used to the extent
that the payment of all other preexisting obligations in the municipality due during the
calendar year have been satisfied.

(g) For transfers of increments made in calendar year 2005 and later, the reduction in
increments as a result of the elimination of the general education tax levy for purposes of
paragraph (b), clause (2), for a taxes payable year equals the general education tax rate
for the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1,
for taxes payable in 2001, multiplied by the captured tax capacity of the district for the
current taxes payable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts, regardless of when
the request for certification was made, and applies retroactively to any transfer made
under subdivision 6.
new text end

Sec. 8.

Minnesota Statutes 2005 Supplement, section 469.177, subdivision 1, is
amended to read:

Subdivision 1.

Original net tax capacity.

(a) Upon or after adoption of a tax
increment financing plan, the auditor of any county in which the district is situated shall,
upon request of the authority, certify the original net tax capacity of the tax increment
financing district and that portion of the district overlying any subdistrict as described in
the tax increment financing plan and shall certify in each year thereafter the amount by
which the original net tax capacity has increased or decreased as a result of a change in tax
exempt status of property within the district and any subdistrict, reduction or enlargement
of the district or changes pursuant to subdivision 4.

(b) If the classification under section 273.13 of property located in a district changes
to a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.

(c) The amount to be added to the original net tax capacity of the district as a result of
previously tax exempt real property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant to section 273.18 or, if that
assessment was made more than one year prior to the date of title transfer rendering the
property taxable, the net tax capacity assessed by the assessor at the time of the transfer.
If improvements are made to tax exempt property after deleted text begin certification of deleted text end new text begin the municipality
approves new text end the district and before the parcel becomes taxable, the assessor shall, at the
request of the authority, separately assess the estimated market value of the improvements.
If the property becomes taxable, the county auditor shall add to original net tax capacity,
the net tax capacity of the parcel, excluding the separately assessed improvements. If
substantial taxable improvements were made to a parcel after certification of the district
and if the property later becomes tax exempt, in whole or part, as a result of the authority
acquiring the property through foreclosure or exercise of remedies under a lease or other
revenue agreement or as a result of tax forfeiture, the amount to be added to the original
net tax capacity of the district as a result of the property again becoming taxable is the
amount of the parcel's value that was included in original net tax capacity when the parcel
was first certified. The amount to be added to the original net tax capacity of the district
as a result of enlargements equals the net tax capacity of the added real property as most
recently certified by the commissioner of revenue as of the date of modification of the tax
increment financing plan pursuant to section 469.175, subdivision 4.

(d) If the net tax capacity of a property increases because the property no longer
qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the
Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan
Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is
improved or market value is increased after approval of the plat under section 273.11,
subdivision 14, 14a, or 14b, the increase in net tax capacity must be added to the original
net tax capacity.

(e) The amount to be subtracted from the original net tax capacity of the district
as a result of previously taxable real property within the district becoming tax exempt,
or a reduction in the geographic area of the district, shall be the amount of original net
tax capacity initially attributed to the property becoming tax exempt or being removed
from the district. If the net tax capacity of property located within the tax increment
financing district is reduced by reason of a court-ordered abatement, stipulation agreement,
voluntary abatement made by the assessor or auditor or by order of the commissioner of
revenue, the reduction shall be applied to the original net tax capacity of the district when
the property upon which the abatement is made has not been improved since the date of
certification of the district and to the captured net tax capacity of the district in each year
thereafter when the abatement relates to improvements made after the date of certification.
The county auditor may specify reasonable form and content of the request for certification
of the authority and any modification thereof pursuant to section 469.175, subdivision 4.

(f) If a parcel of property contained a substandard building that was demolished
or removed and if the authority elects to treat the parcel as occupied by a substandard
building under section 469.174, subdivision 10, paragraph (b), the auditor shall certify the
original net tax capacity of the parcel using the greater of (1) the current net tax capacity
of the parcel, or (2) the estimated market value of the parcel for the year in which the
building was demolished or removed, but applying the class rates for the current year.

(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for improvements made to tax
exempt property made after June 30, 2006.
new text end

Sec. 9.

Minnesota Statutes 2004, section 469.1771, subdivision 2a, is amended to read:

Subd. 2a.

Suspension of distribution of tax increment.

(a) If an authority fails to
make a disclosure or to submit a report containing the information required by section
469.175, subdivisions 5 and 6, regarding a tax increment financing district within the
time provided in section 469.175, subdivisions 5 and 6, the state auditor shall mail to
the authority a written notice that it or the municipality has failed to make the required
disclosure or to submit a required report with respect to a particular district. The state
auditor shall mail the notice on or before the third Tuesday of August of the year in which
the disclosure or report was required to be made or submitted. The notice must describe
the consequences of failing to disclose or submit a report as provided in paragraph (b).
If the state auditor has not received a copy of a disclosure or a report described in this
paragraph on or before the deleted text begin third Tuesday of November deleted text end new text begin first day of October new text end of the year
in which the disclosure or report was required to be made or submitted, the state auditor
shall mail a written notice to the county auditor to hold the distribution of tax increment
from a particular district.

(b) Upon receiving written notice from the state auditor to hold the distribution of
tax increment, the county auditor shall hold:

(1) deleted text begin 25 deleted text end new text begin 100 new text end percent of the amount of tax increment that otherwise would be
distributed, if the distribution is made after the deleted text begin third Friday in November deleted text end new text begin first day of
October new text end but during the year in which the disclosure or report was required to be made or
submitted; or

(2) 100 percent of the amount of tax increment that otherwise would be distributed,
if the distribution is made after December 31 of the year in which the disclosure or report
was required to be made or submitted.

(c) Upon receiving the copy of the disclosure and all of the reports described in
paragraph (a) with respect to a district regarding which the state auditor has mailed to the
county auditor a written notice to hold distribution of tax increment, the state auditor shall
mail to the county auditor a written notice lifting the hold and authorizing the county
auditor to distribute to the authority or municipality any tax increment that the county
auditor had held pursuant to paragraph (b). The state auditor shall mail the written notice
required by this paragraph within five working days after receiving the last outstanding
item. The county auditor shall distribute the tax increment to the authority or municipality
within 15 working days after receiving the written notice required by this paragraph.

(d) Notwithstanding any law to the contrary, any interest that accrues on tax
increment while it is being held by the county auditor pursuant to paragraph (b) is not tax
increment and may be retained by the county.

(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision
11, tax increment being held by the county auditor pursuant to paragraph (b) is considered
distributed to or received by the authority or municipality as of the time that it would have
been distributed or received but for paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for disclosures and reports required
to be filed after December 30, 2006.
new text end

Sec. 10.

Minnesota Statutes 2004, section 475.58, subdivision 1, is amended to read:

Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable
wholly or partly from the proceeds of special assessments levied upon property specially
benefited by the improvement or by an improvement within the improvement program, or
deleted text begin of taxes levied upon the increased value of property within a district for the development of
which the improvement is undertaken deleted text end new text begin from tax increments, as defined in section 469.174,
subdivision 25 new text end , including obligations which are the general obligations of the municipality,
if the municipality is entitled to reimbursement in whole or in part from the proceeds of
such special assessments or deleted text begin taxes deleted text end new text begin tax increments new text end and not less than 20 percent of the cost of
the improvement or the improvement program is to be assessed against benefited property
or is to be paid from the proceeds of federal grant funds or a combination thereof, or is
estimated to be received from deleted text begin such taxes within the district deleted text end new text begin tax increments new text end ;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund liabilities pursuant to section 475.52,
subdivision 6;

(8) under a capital improvement plan under section 373.40; and

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g, paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end