1.1                          A bill for an act 
  1.2             relating to tax increment financing; modifying the 
  1.3             election procedure for districts extended by special 
  1.4             law; amending Minnesota Statutes 1995 Supplement, 
  1.5             section 469.1782, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.8   469.1782, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [ELECTION.] (a) If a special law allows an 
  1.10  extension of the duration limit of an existing tax increment 
  1.11  financing district under section 469.176 or allows establishment 
  1.12  of a new district with a longer duration limit than permitted by 
  1.13  general law, the municipality must elect, by resolution, that 
  1.14  the district is subject to either: 
  1.15     (1) the adjustment to adjusted net tax capacity for the 
  1.16  school district under section 124.2131, subdivision 3a; or 
  1.17     (2) the reduction in state tax increment financing aid 
  1.18  under section 273.1399, subdivision 8.  
  1.19  This election is irrevocable, except for districts for which the 
  1.20  municipality receives a loan or grant under section 473.252 or 
  1.21  473.253 for use within the district, and must be made before the 
  1.22  extension is submitted by the municipality to the school 
  1.23  district for approval under subdivision 2.  If the municipality 
  1.24  fails to make an election before submitting the matter to the 
  1.25  school district, the municipality is deemed to have elected 
  2.1   clause (2).  
  2.2      (b) If the municipality receives a loan or grant under 
  2.3   section 473.252 or 473.253 for use within a district subject to 
  2.4   the provisions of this section, the municipality may amend the 
  2.5   election resolution to subject the district to the provisions of 
  2.6   section 273.1399, subdivision 6, paragraph (d).  The official 
  2.7   action to modify the resolution must be held within 45 days of 
  2.8   the award of the loan or grant.  The municipality must notify 
  2.9   the school district and county in which the district is located 
  2.10  in writing at least ten days prior to the meeting to adopt the 
  2.11  modified resolution. 
  2.12     Sec. 2.  [EFFECTIVE DATE.] 
  2.13     Section 1 is effective the day following final enactment.