Bill > SF3474

This bill establishes a new legal mechanism for municipalities to stop tax increment financing (TIF) payments to developers, contractors, or subcontractors who are found to have violated state or municipal labor laws. Under the proposed law, a municipality must first hold a public hearing with at least 10 days' notice, during which they must provide specific details about the alleged labor law violation, including citations and supporting facts. If the municipality determines a labor law violation has occurred, it can halt all payments related to the project's development, including interest accrued through project financing. The bill also provides a process for challenging such findings, allowing the accused party to file a lawsuit within 30 days of the municipality's finding or payment stoppage. If a court determines that either the procedural requirements were not followed or no labor law was actually violated, it must rule in the challenger's favor. Additionally, the prevailing party in such a lawsuit is entitled to recover costs, including reasonable attorney fees. The bill would become effective immediately after enactment and would apply to all TIF districts for which certification requests are made after that date.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3474&ssn=0&y=2025