May 7, 2024
We’re in the final stages of the 2024 Legislative Session and there is much left to do. The Senator Mitchell distraction had slowed floor activity on the Senate side, but they have decided to push through this week, working on passing omnibus bills until 4:00 am on Monday evening/Tuesday morning.
The prevailing wage expansions that EDAM has been tracking this year continue to be in the mix in the Transportation, Labor, and Housing omnibus bills. The House and Senate take different approaches to these new prevailing wage requirements, with the House applying prevailing wage to all tax increment financed (TIF) projects as well as any projects utilizing low-income housing tax credits (LIHTC). The Senate version does not apply to TIF projects but does apply to LIHTC projects.
During the Senate floor debate on Monday night there was an amendment to have this new language only apply to the 7-county metro area. While it was not accepted, Senate Labor Committee Chair Jen McEwen did say she was open to continue discussions on this topic as the bill continues to move forward, so the conversation on these prevailing wage expansions will continue during the upcoming conference committee process.
EDAM will submit a letter to conferees and will facilitate member outreach to conferees as soon as they are officially named.
Senate Language:
(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; or (3) a reduction, credit, or abatement of a tax assessed under chapter 7A 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; or (4) allocations of low-income housing credits by all suballocators as defined under section 462A.222, for which tax credits are used for multifamily housing projects consisting of more than ten units. Financial assistance does not include payments by the state of aids and credits under chapter 273 or 477A to a political subdivision.
House Language:
(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; or (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 purposes; (4) tax increment financing pursuant to 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; or (5) allocations of low-income housing credits by all suballocators as defined under section 462A.222, for which tax credits are used for multifamily housing projects consisting of more than ten units. Financial assistance does not include payments by the state of aids and credits under chapter 273 or 477A to a political subdivision.