SF 2164

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

  1.1                          A bill for an act 
  1.2             relating to taxation; specifying the time during which 
  1.3             the state auditor may examine tax increment financing 
  1.4             district records; amending Minnesota Statutes 2000, 
  1.5             section 469.1771, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 469.1771, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [ENFORCEMENT.] (a) The owner of taxable 
  1.10  property located in the city, town, school district, or county 
  1.11  in which the tax increment financing district is located may 
  1.12  bring suit for equitable relief or for damages, as provided in 
  1.13  subdivisions 2, 3, and 4, arising out of a failure of a 
  1.14  municipality or authority to comply with the provisions of 
  1.15  sections 469.174 to 469.179, or related provisions of this 
  1.16  chapter.  The prevailing party in a suit filed under the 
  1.17  preceding sentence is entitled to costs, including reasonable 
  1.18  attorney fees. 
  1.19     (b) The state auditor may examine and audit political 
  1.20  subdivisions' use of tax increment financing.  Without previous 
  1.21  notice, the state auditor may examine or audit accounts and 
  1.22  records on a random basis as the auditor deems to be in the 
  1.23  public interest.  Examinations and audits by the state auditor 
  1.24  are limited to activities and events occurring after June 30, 
  1.25  1995, except in the case of a request by the governing body of 
  2.1   the municipality that established the district or a petition 
  2.2   from a resident of a political subdivision in which the district 
  2.3   is located requesting the examination or audit on the basis of 
  2.4   evidence of fraud.  The state auditor must conclude any final 
  2.5   audit of a district that has been decertified under section 
  2.6   469.177, subdivision 12, within three years of receipt by the 
  2.7   state auditor of the last financial report relating to the 
  2.8   district by the political subdivision.  If the state auditor 
  2.9   finds evidence that an authority or municipality has violated a 
  2.10  provision of the law for which a remedy is provided under this 
  2.11  section, the state auditor shall forward the relevant 
  2.12  information to the county attorney.  The county attorney may 
  2.13  bring an action to enforce the provisions of sections 469.174 to 
  2.14  469.179 or related provisions of this chapter, for matters 
  2.15  referred by the state auditor or on behalf of the county.  If 
  2.16  the county attorney determines not to bring an action or if the 
  2.17  county attorney has not brought an action within 12 months after 
  2.18  receipt of the initial notification by the state auditor of the 
  2.19  violation, the county attorney shall notify the state auditor in 
  2.20  writing. 
  2.21     (c) If the state auditor finds an authority is not in 
  2.22  compliance with sections 469.174 to 469.179 or related 
  2.23  provisions of law, the auditor shall notify the governing body 
  2.24  of the municipality that approved the tax increment financing 
  2.25  district of its findings.  The governing body of the 
  2.26  municipality must respond in writing to the state auditor within 
  2.27  60 days after receiving the notification.  Its written response 
  2.28  must state whether the municipality accepts, in whole or part, 
  2.29  the auditor's findings.  If the municipality does not accept the 
  2.30  findings, the statement must indicate the basis for its 
  2.31  disagreement.  The state auditor shall annually summarize the 
  2.32  responses it receives under this section and send the summary 
  2.33  and copies of the responses to the chairs of the committees of 
  2.34  the legislature with jurisdiction over tax increment financing. 
  2.35     (d) The state auditor shall notify the attorney general in 
  2.36  writing and provide supporting materials for a violation found 
  3.1   by the auditor, if the: 
  3.2      (1) auditor receives notification from the county attorney 
  3.3   under paragraph (b) or receives no notification for a 12-month 
  3.4   period after initially notifying the county attorney and the 
  3.5   state auditor confirms with the county attorney or the 
  3.6   municipality that no action has been brought regarding the 
  3.7   matter; and 
  3.8      (2) municipality or development authority have not 
  3.9   eliminated or resolved the violation to the satisfaction of the 
  3.10  state auditor. 
  3.11  The auditor shall provide the municipality and development 
  3.12  authority a copy of the notification sent to the attorney 
  3.13  general.