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 conditions under which retainage can be withheld and requires that all retainage be released no later than 60 days after substantial completion of the work. It specifies that contractors must pay remaining retainage to subcontractors within ten days of receiving payment from the public contracting agency, unless there is a dispute regarding the subcontractor's work. Furthermore, it prohibits withholding retainage for warranty work and outlines the requirements for notifying subcontractors about payment details, ensuring greater accountability and transparency in public contracting processes.

Statutes affected:
Introduction: 15.72, 337.10