Committee advances Payment Transparency Act to help subcontractors get paid; SF 1714 sent to Labor
Loading...
Summary
Senate File 17 14, a bipartisan measure to improve payment transparency on public construction projects and allow subcontractors to submit invoices and request payment information, was recommended to the Labor Committee; stakeholders supported the goals but raised implementation and data-privacy concerns.
On March 5, 2026, the Senate State and Local Government Committee adopted an A5 amendment and recommended Senate File 17 14, the Payment Transparency Act, to the Senate Labor Committee.
Senator Johnson Stewart, the author, described the bill’s two main goals: ensure subcontractors can submit invoices in a timely way and establish a streamlined process for subcontractors to request payment information from public owners so they can pursue remedies under existing law. The author said the bill reflects extensive stakeholder negotiations and compromises.
Blake Nelson, a construction attorney and chair of the Minnesota Subcontractors Association, said the bill would stop practices in which contractors use project-management software to block invoice submissions and would give subcontractors a seven-day route to request payment information from public agencies. Heather Hoffman of Commercial Drywall described a project completed in April 2025 for which final payment was still delayed months later and said the measure would materially help small businesses manage cash flow.
Small-city leaders and the League of Minnesota Cities supported the bill’s intent but raised concerns about implementation burdens on city clerks, data-privacy protections under the Minnesota Government Data Practices Act, and the need to ensure requestors are verified contractors on projects. Sponsors said the A5 amendment narrowed the proposal to reduce burdens while retaining remedies for subcontractors.
There was no fiscal note available at the hearing; the author said one was requested and would be followed up. The committee approved the motion to recommend the bill to the Labor Committee.
Next steps: SF 1714 will be considered by the Senate Labor Committee, where stakeholders expect to continue fine-tuning implementation details and data-protection language.
