Purpose of the Bill

The bill aims to enforce compliance with labor laws by contractors and subcontractors involved in municipal development projects. It allows authorities to stop financial payments to those who violate these laws.

Main Provisions

• Stopping Payments: If a municipality determines that a developer, contractor, or subcontractor has violated state or municipal labor laws, they can cease payment of tax increment financing to the infringing party. This includes stopping payments for project development costs and any related interest.

• Public Hearing Requirement: Before any legal ruling on labor law violations, a public hearing must be conducted. This hearing requires a published notice in a local newspaper at least 10 days before the hearing date. The notice must detail the proposed findings of the labor law violation.

• Right to Object: During or before this public hearing, associated developers, property owners, or note holders can file written objections to the alleged violations.

• District Court Challenge: Entities affected by the stopped payments or accused of labor violations have the right to challenge the findings in district court. They can seek relief or damages within 30 days of the municipality's decision or of the payment cessation.

Significant Changes to Existing Law

The bill introduces a new section (section 469.1767) in the Minnesota Statutes which formalizes the procedure for handling labor law violations in the context of public development projects funded through tax increment financing. This section clarifies the process for public hearings and legal challenges, and it lays out the consequences for labor law non-compliance, specifically the stopping of payments.

Relevant Terms

• Property taxation
• Tax increment financing
• Labor law violations
• Public hearing
• Legal challenge
• Equitable relief