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HF 4994

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/25/2024 04:28pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to labor and industry; requiring a prevailing wage for certain financial
assistance; amending Minnesota Statutes 2023 Supplement, section 116J.871,
subdivision 1.


Section 1.

Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, is
amended to read:

Subdivision 1.


(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Economic development" means financial assistance provided to a person directly
or to a local unit of government or nonprofit organization on behalf of a person who is
engaged in the manufacture or sale of goods and services. Economic development does not
include (1) financial assistance for rehabilitation of existing housing; (2) financial assistance
for new housing construction in which total financial assistance at a single project site is
less than $100,000; or (3) financial assistance for the new construction of fully detached
single-family affordable homeownership units for which the financial assistance covers no
more than ten fully detached single-family affordable homeownership units. For purposes
of this paragraph, "affordable homeownership" means housing targeted at households with
incomes, at initial occupancy, at or below 115 percent of the state or area median income,
whichever is greater, as determined by the United States Department of Housing and Urban

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives $200,000 or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives $500,000 or more of
the loan proceeds; deleted text begin ordeleted text end (3) a reduction, credit, or abatement of a tax assessed under chapter
297A where the tax reduction, credit, or abatement applies to a geographic area smaller
than the entire state and was granted for economic development related purposesnew text begin ; or (4) tax
increment financing under section 469.174 provided that such tax increment financing (i)
provides financial assistance to a development that consists, in part or in whole, of 25 units
or more of multifamily housing, or (ii) provides $100,000 or more of financial assistance
to a development of any number of units of multifamily housing
new text end . Financial assistance does
not include payments by the state of aids and credits under chapter 273 or 477A to a political

(d) "Project site" means the location where improvements are made that are financed in
whole or in part by the financial assistance; or the location of employees that receive financial
assistance in the form of employment and training services as defined in section 116L.19,
subdivision 4
, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial assistance provided after
August 1, 2024, unless a request for proposal for a project covered under paragraph (c),
clause (4), was initiated prior to August 1, 2024.
new text end