The bill amends Minnesota Statutes 2023 Supplement, section 116J.871, subdivision 1, to establish a prevailing wage requirement for certain types of financial assistance related to economic development. It clarifies the definitions of "economic development" and "financial assistance," specifying that financial assistance includes grants, loans, and tax increment financing under certain conditions. Notably, the bill introduces a new clause that expands the definition of financial assistance to include tax increment financing for developments with 25 or more units of multifamily housing or those providing $100,000 or more in financial assistance for any number of multifamily housing units.

Additionally, the bill specifies that the new provisions will take effect for financial assistance provided after August 1, 2024, unless a request for proposal for a qualifying project was initiated before that date. This change aims to ensure that prevailing wage standards are applied to a broader range of economic development projects, thereby enhancing labor protections in the state.