1.1 A bill for an act
1.2 relating to state government;
establishing a payroll reporting portal and database;
1.3 modifying prevailing wage
notice requirements; appropriating money;amending
1.4 Minnesota Statutes 2024,
section 177.43, subdivision 3; proposing coding for new
1.5 law in Minnesota Statutes,
chapter 16C.
1.6 BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [16C.37]
PAYROLL REPORTING PORTAL AND DATABASE.
1.8 Subdivision
1.Database and portals. (a) By October 1, 2027, the commissioner
must
1.9 establish and
maintain:
1.10 (1) a database to
securely store certified payroll information; and
1.11 (2) a reporting portal
accessible on the Internet for contractors to submit certified payroll
1.12 information to be stored
in the database.
1.13 (b) The reporting portal
must accept certified payroll forms provided by the commissioner
1.14 that are fillable and
designed to accept electronic signatures. The reporting portal must
1.15 accept data uploads and
electronic data transfers.
1.16 Subd. 2.Commissioner's
duties. By October 1, 2027, the commissioner must establish
1.17 processes and
requirements for registrations and authorizations under this section.
1.18 Subd. 3.Project
owner registration. Beginning October 1, 2028, for construction
1.19 contracts entered into
on or after that date, a project owner on a project subject to state
1.20 prevailing wage
requirements must register through the reporting portal as a project owner.
1.21 A city of the first
class or a county with a population greater than 500,000 is not required
1.22 to register if that city
or county:
2.1 (1) administers a
program that requires contractors and subcontractors through contracts
2.2 the city or county
awards, irrespective of whether the contract is financed in whole or in
2.3 part by state funds,
to furnish prevailing wage payroll data required under section 177.30;
2.4 (2) collects certified
payrolls from covered contractors during the contractor's performance
2.5 of the contract;
2.6 (3) reviews payroll
documents submitted by the contractor to ensure employee wages
2.7 and benefits conform
to the wage determination schedule specified in the contract; and
2.8 (4) refers noncompliance
by the contractor to the municipality's prevailing wage
2.9 compliance authority.
2.10 Subd. 4.Project
registration. (a) Beginning January 1, 2028, all projects owned by
the
2.11 Metropolitan Council or
the state that are subject to state prevailing wage requirements,
2.12 including but not
limited to the requirements under sections 177.41, 177.42, 177.43, and
2.13 116J.871, subdivisions 2
and 3, must be registered by the project owner through the portal.
2.14 The database must assign
a unique identifying project number for each registered project.
2.15 (b) Work on a project
subject to state prevailing wage requirements must not begin until
2.16 the project is
registered in the database through the reporting portal.
2.17 (c) Highway construction
projects owned by the Department of Transportation are not
2.18 subject to the project
registration requirements under this subdivision.
2.19 Subd. 5.Payroll
reporting; notice to project owners. (a) A contractor performing
2.20 work on a project
subject to state prevailing wage requirements, including but not limited
2.21 to the requirements
under sections 177.41, 177.42, 177.43, and 116J.871, subdivisions 2
2.22 and 3, must report the
certified payment information required under sections 177.30,
2.23 paragraph (a), clause
(6), and 177.43, subdivision 3, to the commissioner by entering the
2.24 required information
through the reporting portal.
2.25 (b) The commissioner
must notify the project owner when a report is made by a contractor
2.26 under this section.
2.27 Subd. 6.Fulfillment
of other prevailing wage reporting requirements. Submission
2.28 of certified payrolls
under this section fulfills the contractor reporting requirements under
2.29 sections 177.30,
paragraph (a), clause (6), and 177.43, subdivision 3, but does not diminish
2.30 the prevailing wage
enforcement authority of the commissioner of labor and industry.
2.31 Subd. 7.Local
governments and project owner opt-in. Local units of government and
2.32 project owners may opt
in to participation in the reporting portal and database created under
3.1 this section for the
purpose of collecting certified payroll data in compliance with a local
3.2 prevailing wage
ordinance or labor standards policy.
3.3 Subd.
8.Error correction. The commissioner must establish a process
allowing
3.4 contractors to correct
or amend submitted certified payroll data. The system must clearly
3.5 identify a corrected
submission and maintain version history.
3.6 Subd.
9.Effect on prevailing wage enforcement and administration. Nothing
in this
3.7 section diminishes or
alters the responsibilities of the commissioner of labor and industry
3.8 to provide
enforcement, training, and outreach under section 177.43.
3.9 Subd.
10.Access to data unaffected. Nothing in this section affects the
status or
3.10 classification of data
collected or maintained in a database under this section or through
3.11 fulfillment of
prevailing wage requirements or alters access to data through a request for
3.12 data under section
13.43, subdivision 19.
3.13 Subd.
11.Stakeholder engagement. By September 1, 2026, the commissioner
must
3.14 obtain input from
stakeholder groups, including but not limited to the commissioner of
3.15 labor, contractors,
contractor associations, minority contractor associations, building and
3.16 construction trade
unions, and local government organizations regarding the features and
3.17 implementation of the
database and portals, types of software that might be used in the
3.18 database and portals
required under this section, and on issues of data integrity and security.
3.19 EFFECTIVE DATE. This
section is effective July 1, 2026.
3.20 Sec. 2. Minnesota Statutes
2024, section 177.43, subdivision 3, is amended to read:
3.21 Subd. 3.Contract
requirements. The contract must specifically state the prevailing
3.22 wage rates, prevailing hours of
labor, and hourly basic rates of pay. The contracting authority
3.23 shall incorporate into its
proposals and all contracts the applicable wage determinations for
3.24 the contract along with
contract language provided by the commissioner of labor and industry
3.25 to notify the contractor and
all subcontractors of the applicability of sections 177.41 to
3.26 177.44, including a
statement affirming that it is the sole responsibility of the project owner
3.27 to ensure that all
contractors on the project owner's project comply with the applicable
3.28 prevailing wage
reporting requirements under sections 177.30, paragraph (a), clause (6),
3.29 and 177.43, subdivision
3. Failure to incorporate the determination or provided contract
3.30 language into the contracts
shall make the contracting authority liable for making whole
3.31 the contractor or subcontractor
for any increases in the wages paid, including employment
3.32 taxes and reasonable
administrative costs based on the appropriate prevailing wage due to
3.33 the laborers or mechanics
working on the project. The contract must also provide that the
4.1 contracting agency shall
demand, and the contractor and subcontractor shall furnish to the
4.2 contracting agency, copies of
any or all payrolls not more than 14 days after the end of each
4.3 pay period. The payrolls must
contain all the data required by section 177.30. The contracting
4.4 authority may examine all
records relating to wages paid laborers or mechanics on work to
4.5 which sections 177.41 to
177.44 apply.
4.6 EFFECTIVE DATE.
This section is effective July 1, 2027, and applies to contracts
4.7 entered into on or
after that date.
4.8 Sec. 3. APPROPRIATION;
PAYROLL REPORTING PORTAL AND DATABASE.
4.9 $1,958,000 in fiscal year 2027 is appropriated from the
general fund to the commissioner
4.10 of administration for
informational technology costs and administration of the payroll
4.11 reporting portal and
database established under Minnesota Statutes, section 16C.37. The
4.12 base for this
appropriation is $1,381,000 in fiscal year 2028 and each fiscal year
thereafter.
