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116J.871 FINANCIAL ASSISTANCE LIMITATIONS; PREVAILING WAGE.
    Subdivision 1. Definitions. (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 (i) financial
assistance for rehabilitation of existing housing or (ii) financial assistance for new housing
construction in which total financial assistance at a single project site is less than $100,000.
(c) "Financial assistance" means (i) 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; (ii) 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;
or (iii) 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 purposes. Financial assistance does not include
payments by the state of aids and credits under chapter 273 or 477A to a political subdivision.
(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, Minnesota
Technology, Inc., and the Iron Range Resources and Rehabilitation Board.
    Subd. 2. Prevailing wage required. A state agency may provide financial assistance to
a person only if the person receiving or benefiting from the financial assistance certifies to
the commissioner of labor and industry that laborers and mechanics at the project site during
construction, installation, remodeling, and repairs for which the financial assistance was provided
will be paid the prevailing wage rate as defined in section 177.42, subdivision 6.
    Subd. 3. Prevailing wage; penalty. It is a misdemeanor for a person who has certified that
prevailing wages will be paid to laborers and mechanics under subdivision 2 to subsequently fail
to pay the prevailing wage. Each day a violation of this subdivision continues is a separate offense.
    Subd. 4. Notification. A state agency shall notify any person applying for financial
assistance from the state agency of the requirements under subdivision 2 and of the penalties
under subdivision 3.
    Subd. 5. Exception. Nothing in this section denies any financial assistance granted to or
qualified for by a person whose construction, installation, remodeling, or repairs commenced
prior to August 1, 1990.
History: 1990 c 604 art 10 s 7; 1991 c 322 s 19; 2004 c 206 s 52; 2004 c 228 art 1 s 72;
2005 c 10 art 3 s 5

Official Publication of the State of Minnesota
Revisor of Statutes