HF 1505

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to tax increment financing; applying the 
  1.3             five-year rule to pre-1990 districts; providing time 
  1.4             limitations; amending Minnesota Statutes 2000, 
  1.5             sections 469.1763, by adding a subdivision; 469.1771, 
  1.6             by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 469.1763, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 7.  [PRE-1990 DISTRICTS.] (a) For a district for 
  1.11  which the request for certification was made before May 1, 1990, 
  1.12  expenditures are made for permitted project costs under section 
  1.13  469.176, subdivision 4, only if the amounts are spent within the 
  1.14  time limits provided by subdivision 3, paragraph (a), clauses 
  1.15  (1) through (4).  For purposes of applying the provisions of 
  1.16  subdivision 3, the date of certification of a district for which 
  1.17  the request for certification was made before May 1, 1990, is 
  1.18  deemed to be July 1, 2001.  After July 1, 2006, the district is 
  1.19  subject to the provisions of subdivision 4. 
  1.20     (b) This subdivision does not apply to: 
  1.21     (1) a district if the county board approves, by resolution, 
  1.22  a request by the authority to exempt the district from this 
  1.23  subdivision by no later than July 1, 2005; 
  1.24     (2) a housing district; or 
  1.25     (3) a soils condition district or a redevelopment district, 
  1.26  authorized by a special law that requires increments from the 
  2.1   district to be spent only on: 
  2.2      (i) activities within the district; or 
  2.3      (ii) bonds issued before or binding contracts entered into 
  2.4   before passage of the special legislation (and bonds issued to 
  2.5   refund them); or 
  2.6      (iii) administrative expenses. 
  2.7      [EFFECTIVE DATE.] This section is effective for districts 
  2.8   for which the request for certification was made after June 30, 
  2.9   1982. 
  2.10     Sec. 2.  Minnesota Statutes 2000, section 469.1771, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 7.  [TIME LIMITATION; AUDITS, ACTIONS.] (a) The 
  2.13  authority of the state auditor to begin an audit or examination 
  2.14  under this section ends 3-1/2 years after the time for filing of 
  2.15  the final annual disclosure and report for the district as 
  2.16  prescribed by section 469.175, subdivision 6b, or the filing of 
  2.17  the final annual disclosure and report, whichever is later.  An 
  2.18  audit or examination is begun by providing an initial notice of 
  2.19  noncompliance.  
  2.20     (b) No action may be commenced under this section more than 
  2.21  one year after the time to begin an audit or examination under 
  2.22  paragraph (a).  This limitation does not apply to an action in 
  2.23  tax court under subdivision 2b, if the action is commenced 
  2.24  within one year after the receipt by the attorney general of the 
  2.25  notification from the state auditor. 
  2.26     [EFFECTIVE DATE.] This section is effective January 1, 
  2.27  2002, and applies to all tax increment financing districts, 
  2.28  regardless of when the request for certification was made, and 
  2.29  to actions commenced after January 1, 2002.