This bill aims to combat wage theft in Minnesota by establishing requirements for responsible contractors when the Minnesota Housing Finance Agency (MHFA) provides financial assistance for the development of multiunit residential housing. It amends Minnesota Statutes 2023 Supplement, section 116J.871, to include new definitions and provisions related to economic development and financial assistance. Notably, it introduces a new section, 462A.051, which mandates that applicants for financial assistance disclose any past legal issues related to wage theft and ensure that all contractors and subcontractors meet responsible contractor criteria. Additionally, it requires the maintenance of a certified contractor list at the project site and outlines the responsibilities of recipients in the event of wage theft violations.

The bill also establishes a wage theft prevention plan that must be submitted to the Department of Labor and Industry for approval, detailing measures to prevent wage theft on the project. If a contractor is found to have failed to pay required wages, the recipient must correct the violation and may face disqualification from future financial assistance if violations persist. The MHFA is granted the authority to deny applications or withhold previously approved financial assistance if compliance with these new requirements is not met. The provisions of this bill will take effect for financial assistance provided after August 1, 2024, with certain exceptions for proposals initiated before that date.