‘Payment Transparency Act’ aims to help subcontractors get paid

Helping small businesses get paid on time and creating better working relationships is the crux of the so-called “Payment Transparency Act.”

Sponsored by Rep. Peggy Scott (R-Andover) and Sen. Ann Johnson Stewart (DFL-Wayzata) the new law aims to increase payment transparency on state agency and political subdivision construction projects, and give subcontractors not being paid the information necessary to enforce the Prompt Payment Act.

Taking effect Aug. 1, 2026, the law will require, upon written request from the contractor or subcontractor, state and local governments to provide within seven calendar days, and without charge, specified information regarding any project payment made by the public contracting agency, including date of payment and the amount. Public contracting agencies will also be required to make contact information available to subcontractors and provide that information on their website.

A contracting agency can request contractors and subcontractors use an automated internet-based system for requests if the agency has such a system.

HF1234/SF1714*/CH90

SF1714* / HF1234 / CH90