1.1 A bill for an act
1.2 relating to property taxation; tax increment financing; allowing an authority to
1.3 stop payments after finding that a developer, contractor, or subcontractor has
1.4 violated state or municipal labor law; proposing coding for new law in Minnesota
1.5 Statutes, chapter 469.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [469.1767] REMEDIES FOR LABOR LAW VIOLATIONS.
1.8 Subdivision 1.Remedies.If the municipality makes a finding, pursuant to the
1.9requirements of subdivision 2, that a developer, contractor, or subcontractor violated state
1.10or municipal labor laws in developing a project approved by the municipality, the authority
1.11may, notwithstanding any contract, note, or agreement to the contrary, stop payments of
1.12increment to a developer, property owner, or note holder for costs of activities incurred in
1.13developing the project, including payments for any interest accrued through the financing
1.14of such costs.
1.15 Subd. 2.Public notice, hearing, and discussion required.(a) The municipality shall
1.16make a finding of a labor law violation only after a public hearing thereon after published
1.17notice in a newspaper of general circulation in the municipality at least once not less than
1.18ten days nor more than 30 days prior to the date of the hearing. The notice must include the
1.19proposed findings to be adopted at the hearing.
1.20 (b) A finding of a labor law violation must include a citation to the labor law found to
1.21be violated and facts supporting the finding, including the dates, times, or locations of any
1.22alleged violations.
1Section 1.
REVISOR SS/RC 25-0535504/01/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 3193
NINETY-FOURTH SESSION
Authored by Coulter, Gomez, Norris and Pinto04/21/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 (c) Before the finding is adopted or at the hearing at which it is to be adopted, any
2.2developer, property owner, or note holder connected with the project may file a written
2.3objection with the clerk of the municipality.
2.4 Subd. 3.Challenge in district court.(a) Within 30 days after the municipality makes
2.5a finding under subdivision 2, any person or entity found to have violated a labor law may
2.6bring suit for equitable relief or for damages. Within 30 days after the authority stops
2.7payment under subdivision 1, any person or entity to whom payments are stopped may bring
2.8suit for equitable relief or for damages.
2.9 (b) A court hearing a challenge under paragraph (a) shall rule in favor of the challenger
2.10if it finds either that the procedures set forth in subdivision 2 were not followed or that the
2.11law cited in the finding was not violated.
2.12 (c) The prevailing party in a suit filed under this subdivision is entitled to costs, including
2.13reasonable attorney fees.
2.14 EFFECTIVE DATE.This section is effective the day following final enactment and
2.15applies to all districts for which the request for certification was made after the day following
2.16final enactment.
2Section 1.
REVISOR SS/RC 25-0535504/01/25