SF 1229

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; authorizing 
  1.3             certain elections for purposes of affordable housing 
  1.4             or remediation activities; amending Minnesota Statutes 
  1.5             2002, section 469.1792. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 469.1792, is 
  1.8   amended to read: 
  1.9      469.1792 [SPECIAL DEFICIT AUTHORITY.] 
  1.10     Subdivision 1.  [SCOPE.] This section applies only to an 
  1.11  authority with a preexisting district for which: 
  1.12     (1) the increments from the district were insufficient to 
  1.13  pay preexisting obligations as a result of the class rate 
  1.14  changes or the elimination of the state-determined general 
  1.15  education property tax levy under this act, or both; or 
  1.16     (2)(i) the development authority has a binding contract 
  1.17  with a person requiring the authority to pay to the person an 
  1.18  amount that may not exceed the increment from the district or a 
  1.19  specific development within the district; and 
  1.20     (ii) the authority is unable to pay the full amount under 
  1.21  the contract from the pledged increments or other increments 
  1.22  from the district that would have been due if the class rate 
  1.23  changes or elimination of the state-determined general education 
  1.24  property tax levy or both had not been made under Laws 2001, 
  1.25  First Special Session chapter 5; 
  2.1      (3) the authority amends its tax increment financing plan 
  2.2   to establish an affordable housing account to which increments 
  2.3   are pledged; or 
  2.4      (4) the authority amends its tax increment financing plan 
  2.5   to establish a hazardous substance, pollutant, or contaminant 
  2.6   remediation account to which increments are pledged. 
  2.7      Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  2.8   the following terms have the meanings given. 
  2.9      (b) "Affordable housing account" means an account in which 
  2.10  increment is deposited solely for affordable housing activities 
  2.11  as defined in section 469.174, subdivision 11.  
  2.12     (c) "Hazardous substance, pollutant, or contaminant 
  2.13  remediation account" means an account in which increment is 
  2.14  deposited solely for removal or remediation activities described 
  2.15  in section 469.174, subdivisions 16 to 19.  
  2.16     (d) "Preexisting district" means a tax increment financing 
  2.17  district for which the request for certification was made before 
  2.18  August 1, 2001. 
  2.19     (c) (e) "Preexisting obligation" means a bond or binding 
  2.20  contract that: 
  2.21     (1) was issued or approved before August 1, 2001, or was 
  2.22  issued pursuant to a binding contract entered into before August 
  2.23  1, 2001; 
  2.24     (2) is secured by increments from a preexisting district. 
  2.25     Subd. 3.  [ACTIONS AUTHORIZED.] (a) An authority with a 
  2.26  district qualifying under this section may take either or both 
  2.27  of the following actions for any or all of its preexisting 
  2.28  districts: 
  2.29     (1) the authority may elect that the original local tax 
  2.30  rate under section 469.177, subdivision 1a, does not apply to 
  2.31  the district; and 
  2.32     (2) the authority may elect the fiscal disparities 
  2.33  contribution will be computed under section 469.177, subdivision 
  2.34  3, paragraph (a), regardless of the election that was made for 
  2.35  the district. 
  2.36     (b) The authority may take action under this subdivision 
  3.1   only after the municipality approves the action, by resolution, 
  3.2   after notice and public hearing in the manner provided under 
  3.3   section 469.175, subdivision 2. 
  3.4      Subd. 4.  [EXPENDITURES FROM AFFORDABLE HOUSING 
  3.5   ACCOUNTS.] Increment from an affordable housing account may be 
  3.6   spent by an authority anywhere within its area of operation.  
  3.7   Notwithstanding the definition of a project under section 
  3.8   469.174, increments may be spent to assist housing that meets 
  3.9   the requirements under section 469.1761.  The limitation imposed 
  3.10  by section 469.1763, subdivision 2, does not apply to any 
  3.11  transfers of increment to the affordable housing account. 
  3.12     Subd. 5.  [EXPENDITURES FROM HAZARDOUS SUBSTANCE, 
  3.13  POLLUTANT, OR CONTAMINANT REMEDIATION ACCOUNT.] Increment from a 
  3.14  hazardous substance, pollutant, or contaminant remediation 
  3.15  account may be spent by an authority anywhere within its area of 
  3.16  operation.  Notwithstanding the definition of a project under 
  3.17  section 469.174, increments may be expended to remediation and 
  3.18  removal activities that meet the requirements of section 
  3.19  469.176, subdivision 4b or 4e.  The limitation imposed by 
  3.20  section 469.1763, subdivision 2, does not apply to any transfers 
  3.21  of increment to the hazardous substance, pollutant, or 
  3.22  contaminant remediation account. 
  3.23     [EFFECTIVE DATE.] This section is effective for actions 
  3.24  taken and resolutions approved after June 30, 2003.