Minneslate Logo

HF2568 (Legislative Session 94 (2025-2026))

Tax increment financing required to be included for the purposes of meeting the threshold for the responsible contractor law.

AI Generated Summary

Purpose of the Bill

This bill aims to modify how certain financial thresholds are calculated for construction contracts in Minnesota. The goal is to include tax increment financing (TIF) in the determination of whether a construction project meets the criteria for the "responsible contractor" law.

Main Provisions

  • The bill proposes an amendment to Minnesota Statutes 2024, section 16C.285, subdivision 2.
  • It specifies that tax increment financing should be included when calculating if a construction contract exceeds the $50,000 threshold.
  • This inclusion affects the assessment for determining eligible contractors who meet the criteria for being the lowest responsible bidder or for offering the best value.

Significant Changes to Existing Law

  • Previously, tax increment financing was not considered in determining whether a construction contract reached the financial threshold necessary to activate requirements under the responsible contractor law. This amendment mandates its inclusion.
  • The change primarily impacts publicly owned or financed projects where the contract value is estimated to exceed $50,000 and is awarded through specific selection methods.

Relevant Terms

  • Responsible contractor
  • Tax increment financing (TIF)
  • Lowest responsible bidder
  • Best value selection
  • Construction contract

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Requires tax increment financing to be included for determining the responsible contractor threshold."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies contracting requirements under Minnesota Statutes section 16C.285, subdivision 2.",
      "modified": [
        "Clarifies application in determining the $50,000 threshold for contracts, including tax increment financing."
      ]
    },
    "citation": "16C.285",
    "subdivision": "subdivision 2"
  }
]

Sponsors