This bill aims to enhance payment transparency in public contracts by amending existing Minnesota statutes related to retainage and payment notifications. It introduces a new provision that states any contract, management system, or procedure that restricts, delays, or prohibits a party from submitting an invoice is contrary to public policy and is void and unenforceable. Additionally, it mandates that public contracting agencies must notify contractors and subcontractors of every tier about any payments made, including details such as the payment amount, date, recipient, and reasons for any withholding of payment. This notification must be provided within three business days of the payment, and no fees can be charged for this notice.

The bill also clarifies the terms surrounding retainage, stipulating that retainage on public improvement contracts cannot exceed five percent and must be released no later than 60 days after substantial completion. Contractors are required to pay remaining retainage to subcontractors within ten days of receiving payment, unless there is a dispute regarding the work. The bill reinforces the prohibition against withholding retainage for warranty work and ensures that any amounts withheld must be paid within specified timeframes after completion of work or submission of final paperwork.

Statutes affected:
Introduction: 15.72, 337.10