This bill amends property taxation laws related to tax increment financing in Minnesota by allowing municipalities to stop payments to developers, contractors, or subcontractors if they are found to have violated state or municipal labor laws. The new legal language establishes a process for municipalities to make such findings, which includes holding a public hearing with prior notice, detailing the specific labor law violations, and allowing affected parties to file written objections.

Additionally, the bill provides a mechanism for those found to have violated labor laws to challenge the municipality's findings in district court. If the court determines that the municipality did not follow the required procedures or that the cited law was not violated, it will rule in favor of the challenger. The bill also stipulates that the prevailing party in such legal challenges is entitled to recover costs, including reasonable attorney fees. This new law will take effect the day after final enactment and will apply to all districts requesting certification thereafter.