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Committee refers Payment Transparency Act to Labor after compromise amendment
Summary
The committee moved HF 1,2,3,4 (Payment Transparency Act) as amended to the Labor Committee. The bill would let subcontractors request payment information from public owners and submit timely invoices; subcontractors and legal advocates testified about delayed payments and the need for clearer access to payment data.
Representative Scott introduced the Payment Transparency Act (HF 1,2,3,4), saying the measure would increase transparency on public construction projects, allow subcontractors to submit timely invoices and help subcontractors use existing remedies to get paid sooner. He described months of stakeholder meetings that produced a compromise amendment.
Heather Hoffman, who identified herself as president of Commercial Drywall Incorporated, described long delays in receiving final payments on public projects and told the committee her company had completed work on one project in April 2025 and still had not been paid in full; she said the overdue amount on that job was about $30,000 and that late payments “erase margin” for small firms. Hoffman said the bill would not guarantee immediate payment but would at least allow subcontractors to submit invoices and request payment information.
Blake Nelson, a construction attorney, told the committee that subcontractors sometimes cannot submit invoices because general contractors require proprietary project-management software and then block or tightly restrict submissions. Nelson described the amendment adopted by public owners that makes the system reactive (subcontractors request payment information and public agencies have seven days to provide it) and said that change reflected significant stakeholder compromise.
Representatives of small cities and Hennepin County said the revised approach reduced administrative burdens but asked for clearer, streamlined verification methods so local staff can confirm a requestor is a subcontractor without undue hoops. Several members questioned the draft’s use of the phrase "void and unenforceable" for contractual clauses that prohibit invoice submission; Mr. Nelson said the language was chosen to prevent clauses that would block invoice submission from being enforced, but members suggested revisiting phrasing to ensure clarity and accessibility for small subcontractors.
After discussion and agreement to continue stakeholder work on remaining language points, the committee voted to refer HF 1,2,3,4, as amended, to the Labor Committee.
The committee recorded the motion and sent the bill forward; committee members indicated they expect additional amendments in later stops.
