This bill amends property taxation laws related to tax increment financing in Minnesota by introducing new provisions that allow municipalities to stop payments to developers, contractors, or subcontractors if they are found to have violated state or municipal labor laws. The bill establishes a process for municipalities to make such findings, which includes a public hearing with prior notice, the requirement to cite specific labor laws violated, and the opportunity for 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 within 30 days. The court must rule in favor of the challenger if it determines that the required procedures were not followed or that the cited law was not violated. The prevailing party in these legal challenges is entitled to recover costs, including reasonable attorney fees. The new provisions will take effect the day after final enactment and will apply to all districts for which certification requests are made thereafter.