The bill authorizes the city of Marshall to implement special rules regarding tax increment financing (TIF) that allow for the temporary use of increment funds collected from specific TIF districts (No. 1-1, No. 1-7, and No. 2-1) until December 31, 2027. Under the new provisions, the city can spend, loan, or invest these funds as long as the usage is outlined in a written spending plan adopted in accordance with existing state law. Any increment that remains unspent, loaned, or invested by the deadline must be returned to the respective TIF district, including any associated earnings or repayments.

Additionally, the bill specifies that the new rules will take effect once the governing body of the city of Marshall and its chief clerical officer fulfill the necessary compliance requirements outlined in Minnesota Statutes. This legislative change aims to provide the city with greater flexibility in managing its TIF resources while ensuring accountability through the requirement to return unutilized funds.