MN HF2225

Adds new subdivision to Minnesota Statutes section 161.32 allowing the Department of Transportation Commissioner to make direct payments to employees of contractors for labor and materials if the employee was insufficiently compensated, provided sanctions have been initiated against the contractor, a surety claim was denied, and the contract has not been finalized.

Modifies payment bond claim procedures under section 574.31 by allowing claimants on Department of Transportation projects to file notice of claim prior to contract finalization and closeout, rather than strictly within 120 days of completing work.

Extends the deadline for filing lawsuits to enforce payment bond claims on Department of Transportation projects to prior to contract finalization and closeout, rather than limiting actions to one year from completion of work.

Allows claimants to extend bond claim deadlines through written stipulation with the surety or by sending a one-year extension notice via certified mail 90 days before expiration, with no objection from the surety within 30 days.

Section 1 is effective the day following final enactment for active and new contracts; Section 2 is effective August 1, 2014 for contracts executed on or after that date.