HF 2441

2nd Engrossment - 94th Legislature (2025 - 2026)

Posted on 05/11/2026 11:06 a.m.

A bill for an act
relating to state government; establishing a payroll reporting portal and database;
modifying prevailing wage notice requirements; appropriating money; amending
Minnesota Statutes 2024, section 177.43, subdivision 3; proposing coding for new
law in Minnesota Statutes, chapter 16C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16C.37] PAYROLL REPORTING PORTAL AND DATABASE.
new text end

new text begin Subdivision 1. new text end

new text begin Database and portals. new text end

new text begin (a) By October 1, 2027, the commissioner must
establish and maintain:
new text end

new text begin (1) a database to securely store certified payroll information; and
new text end

new text begin (2) a reporting portal accessible on the Internet for contractors to submit certified payroll
information to be stored in the database.
new text end

new text begin (b) The reporting portal must accept certified payroll forms provided by the commissioner
that are fillable and designed to accept electronic signatures. The reporting portal must
accept data uploads and electronic data transfers.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner's duties. new text end

new text begin By October 1, 2027, the commissioner must establish
processes and requirements for registrations and authorizations under this section.
new text end

new text begin Subd. 3. new text end

new text begin Project owner registration. new text end

new text begin Beginning October 1, 2028, for construction
contracts entered into on or after that date, a project owner on a project subject to state
prevailing wage requirements must register through the reporting portal as a project owner.
A city of the first class or a county with a population greater than 500,000 is not required
to register if that city or county:
new text end

new text begin (1) administers a program that requires contractors and subcontractors through contracts
the city or county awards, irrespective of whether the contract is financed in whole or in
part by state funds, to furnish prevailing wage payroll data required under section 177.30;
new text end

new text begin (2) collects certified payrolls from covered contractors during the contractor's performance
of the contract;
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new text begin (3) reviews payroll documents submitted by the contractor to ensure employee wages
and benefits conform to the wage determination schedule specified in the contract; and
new text end

new text begin (4) refers noncompliance by the contractor to the municipality's prevailing wage
compliance authority.
new text end

new text begin Subd. 4. new text end

new text begin Project registration. new text end

new text begin (a) Beginning January 1, 2028, all projects owned by the
Metropolitan Council or the state that are subject to state prevailing wage requirements,
including but not limited to the requirements under sections 177.41, 177.42, 177.43, and
116J.871, subdivisions 2 and 3, must be registered by the project owner through the portal.
The database must assign a unique identifying project number for each registered project.
new text end

new text begin (b) Work on a project subject to state prevailing wage requirements must not begin until
the project is registered in the database through the reporting portal.
new text end

new text begin (c) Highway construction projects owned by the Department of Transportation are not
subject to the project registration requirements under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Payroll reporting; notice to project owners. new text end

new text begin (a) A contractor performing
work on a project subject to state prevailing wage requirements, including but not limited
to the requirements under sections 177.41, 177.42, 177.43, and 116J.871, subdivisions 2
and 3, must report the certified payment information required under sections 177.30,
paragraph (a), clause (6), and 177.43, subdivision 3, to the commissioner by entering the
required information through the reporting portal.
new text end

new text begin (b) The commissioner must notify the project owner when a report is made by a contractor
under this section.
new text end

new text begin Subd. 6. new text end

new text begin Fulfillment of other prevailing wage reporting requirements. new text end

new text begin Submission
of certified payrolls under this section fulfills the contractor reporting requirements under
sections 177.30, paragraph (a), clause (6), and 177.43, subdivision 3, but does not diminish
the prevailing wage enforcement authority of the commissioner of labor and industry.
new text end

new text begin Subd. 7. new text end

new text begin Local governments and project owner opt-in. new text end

new text begin Local units of government and
project owners may opt in to participation in the reporting portal and database created under
this section for the purpose of collecting certified payroll data in compliance with a local
prevailing wage ordinance or labor standards policy.
new text end

new text begin Subd. 8. new text end

new text begin Error correction. new text end

new text begin The commissioner must establish a process allowing
contractors to correct or amend submitted certified payroll data. The system must clearly
identify a corrected submission and maintain version history.
new text end

new text begin Subd. 9. new text end

new text begin Effect on prevailing wage enforcement and administration. new text end

new text begin Nothing in this
section diminishes or alters the responsibilities of the commissioner of labor and industry
to provide enforcement, training, and outreach under section 177.43.
new text end

new text begin Subd. 10. new text end

new text begin Access to data unaffected. new text end

new text begin Nothing in this section affects the status or
classification of data collected or maintained in a database under this section or through
fulfillment of prevailing wage requirements or alters access to data through a request for
data under section 13.43, subdivision 19.
new text end

new text begin Subd. 11. new text end

new text begin Stakeholder engagement. new text end

new text begin By September 1, 2026, the commissioner must
obtain input from stakeholder groups, including but not limited to the commissioner of
labor, contractors, contractor associations, minority contractor associations, building and
construction trade unions, and local government organizations regarding the features and
implementation of the database and portals, types of software that might be used in the
database and portals required under this section, and on issues of data integrity and security.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 177.43, subdivision 3, is amended to read:

Subd. 3.

Contract requirements.

The contract must specifically state the prevailing
wage rates, prevailing hours of labor, and hourly basic rates of pay. The contracting authority
shall incorporate into its proposals and all contracts the applicable wage determinations for
the contract along with contract language provided by the commissioner of labor and industry
to notify the contractor and all subcontractors of the applicability of sections 177.41 to
177.44 new text begin , including a statement affirming that it is the sole responsibility of the project owner
to ensure that all contractors on the project owner's project comply with the applicable
prevailing wage reporting requirements under sections 177.30, paragraph (a), clause (6),
and 177.43, subdivision 3 new text end . Failure to incorporate the determination or provided contract
language into the contracts shall make the contracting authority liable for making whole
the contractor or subcontractor for any increases in the wages paid, including employment
taxes and reasonable administrative costs based on the appropriate prevailing wage due to
the laborers or mechanics working on the project. The contract must also provide that the
contracting agency shall demand, and the contractor and subcontractor shall furnish to the
contracting agency, copies of any or all payrolls not more than 14 days after the end of each
pay period. The payrolls must contain all the data required by section 177.30. The contracting
authority may examine all records relating to wages paid laborers or mechanics on work to
which sections 177.41 to 177.44 apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2027, and applies to contracts
entered into on or after that date.
new text end

Sec. 3. new text begin APPROPRIATION; PAYROLL REPORTING PORTAL AND DATABASE.
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new text begin $1,958,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of administration for informational technology costs and administration of the payroll
reporting portal and database established under Minnesota Statutes, section 16C.37. The
base for this appropriation is $1,381,000 in fiscal year 2028 and each fiscal year thereafter.
new text end