Purpose of the Bill

The bill aims to enforce compliance with state and municipal labor laws in the context of property development projects. It seeks to ensure that developers, contractors, and subcontractors adhere to these laws by introducing a financial penalty for violations.

Main Provisions

• Stopping Payments: If a developer, contractor, or subcontractor violates labor laws during the development of a project approved by the municipality, the authority can halt payments related to the project's tax increment financing, which may include financing costs and accrued interest.

• Public Hearing Requirement: Before a finding of labor law violation is formally recognized, a public hearing must be held. This hearing must be publicly announced in a widely circulated newspaper 10 to 30 days before it occurs, and the notice should outline proposed findings from the hearing.

• Opportunity for Objection: Developers or related parties can file written objections to the labor violation findings prior to or during the public hearing.

• Legal Challenge: Both parties found guilty of a labor law violation and those whose payments have been halted may challenge the findings or decisions in district court within 30 days. The court can rule in favor of the challenger if it finds that proper procedures were not followed or if the labor law was not actually violated.

• Legal Costs: The party who prevails in a court challenge regarding these matters is entitled to recover costs, including reasonable attorney fees.

Significant Changes to Existing Law

This bill introduces a new legal framework within Minnesota Statutes chapter 469. It establishes specific procedures for addressing violations of labor laws by developers, contractors, and subcontractors, integrating a mechanism for halting financial benefits from tax increment financing if violations occur.

Relevant Terms

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