1.1 A bill for an act
1.2 relating to labor and industry; providing for use of skilled and trained contractor
1.3 workforces at petroleum refineries; amending Minnesota Statutes 2022, section
1.4 177.27, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter
1.5 181.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:
1.8 Subd. 4.Compliance orders.The commissioner may issue an order requiring an
1.9employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
1.10181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
1.11subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.987, or with any rule
1.12promulgated under section 177.28. The commissioner shall issue an order requiring an
1.13employer to comply with sections 177.41 to 177.435 or 181.987 if the violation is repeated.
1.14For purposes of this subdivision only, a violation is repeated if at any time during the two
1.15years that preceded the date of violation, the commissioner issued an order to the employer
1.16for violation of sections 177.41 to 177.435 or 181.987 and the order is final or the
1.17commissioner and the employer have entered into a settlement agreement that required the
1.18employer to pay back wages that were required by sections 177.41 to 177.435. The
1.19department shall serve the order upon the employer or the employer's authorized
1.20representative in person or by certified mail at the employer's place of business. An employer
1.21who wishes to contest the order must file written notice of objection to the order with the
1.22commissioner within 15 calendar days after being served with the order. A contested case
1.23proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15
1Section 1.
23-01381 as introduced12/22/22 REVISOR SS/RC
SENATE
STATE OF MINNESOTA
S.F. No. 10NINETY-THIRD SESSION
(SENATE AUTHORS: SEEBERGER and Dziedzic)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/04/2023
Referred to Labor 2.1calendar days after being served with the order, the employer fails to file a written notice
2.2of objection with the commissioner, the order becomes a final order of the commissioner.
2.3 EFFECTIVE DATE.This section is effective October 15, 2023.
2.4 Sec. 2. [181.987] USE OF SKILLED AND TRAINED CONTRACTOR
2.5WORKFORCES AT PETROLEUM REFINERIES.
2.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
2.7the meanings given.
2.8 (b) "Contractor" means a vendor that enters into or seeks to enter into a contract with
2.9an owner or operator of a petroleum refinery to perform construction, alteration, demolition,
2.10installation, repair, maintenance, or hazardous material handling work at the site of the
2.11petroleum refinery. Contractor includes all contractors or subcontractors of any tier
2.12performing work as described in this paragraph at the site of the petroleum refinery.
2.13Contractor does not include employees of the owner or operator of a petroleum refinery.
2.14 (c) "Registered apprenticeship program" means an apprenticeship program providing
2.15to each trainee combined classroom and on-the-job training under the direct and close
2.16supervision of a highly skilled worker in an occupation recognized as an apprenticeable
2.17occupation registered with the Department of Labor and Industry under chapter 178 or with
2.18the United States Department of Labor Office of Apprenticeship or a recognized state
2.19apprenticeship agency under Code of Federal Regulations, title 29, parts 29 and 30.
2.20 (d) "Skilled and trained workforce" means a workforce in which each employee of the
2.21contractor or subcontractor of any tier working at the site of the petroleum refinery meets
2.22one of the following criteria:
2.23 (1) are currently registered as apprentices in a registered apprenticeship program in the
2.24applicable trade;
2.25 (2) have graduated from a registered apprenticeship program in the applicable trade; or
2.26 (3) have completed all of the classroom training and work hour requirements needed to
2.27graduate from the registered apprenticeship program their employer participates in.
2.28 (e) "Petroleum refinery" means a facility engaged in producing and storing gasoline,
2.29kerosene, distillate fuel oils, residual fuel oil, lubricants, or other products through distillation
2.30of petroleum or through redistillation, cracking, or reforming of unfinished petroleum
2.31derivatives. Petroleum refinery includes fluid catalytic cracking unit catalyst regenerators,
2Sec. 2.
23-01381 as introduced12/22/22 REVISOR SS/RC 3.1fluid catalytic cracking unit incinerator-waste heat boilers, fuel gas combustion devices,
3.2and indirect heating equipment associated with the refinery.
3.3 (f) "Apprenticeable occupation" means any trade, form of employment, or occupation
3.4approved for apprenticeship by the commissioner of labor and industry or the United States
3.5Secretary of Labor.
3.6 (g) "OEM" means original equipment manufacturer and refers to organizations that
3.7manufacture or fabricate equipment for sale directly to purchasers or other resellers.
3.8 Subd. 2.Use of contractors by owner, operator; requirement.(a) An owner or operator
3.9of a petroleum refinery shall, when contracting with contractors for the performance of
3.10construction, alteration, demolition, installation, repair, maintenance, or hazardous material
3.11handling work at the site of the petroleum refinery, require that the contractors performing
3.12that work, and any subcontractors of any tier, use a skilled and trained workforce when
3.13performing all work at the site of the petroleum refinery.
3.14 (b) The requirement under this subdivision applies only when each contractor and
3.15subcontractor of any tier is performing work at the site of the petroleum refinery.
3.16 (c) The requirement under this subdivision does not apply to contractors or subcontractors
3.17hired to perform OEM work to comply with equipment warranty requirements.
3.18 (d) A contractor's workforce must meet the requirements of subdivision 1, paragraph
3.19(d) according to the following schedule:
3.20 (1) 65 percent by October 15, 2023;
3.21 (2) 75 percent by October 15, 2024; and
3.22 (3) 85 percent by October 15, 2025.
3.23 (e) An owner or operator, or contractor or subcontractor of an owner or operator, is
3.24exempt from this section if:
3.25 (1) the owner or operator or contractor or subcontractor has entered into a project labor
3.26agreement or collectively bargained maintenance agreement with a labor organization with
3.27a registered apprenticeship program; and
3.28 (2) all contracted work at the petroleum refinery that is subject to this section is also
3.29subject to a project labor agreement or collectively bargained maintenance agreement.
3.30 Subd. 3.Penalties.The Division of Labor Standards shall receive complaints of violations
3.31of this section. The commissioner of labor and industry shall fine an owner, operator,
3.32contractor, or subcontractor of any tier not less than $5,000 nor more than $10,000 for each
3Sec. 2.
23-01381 as introduced12/22/22 REVISOR SS/RC 4.1violation of the requirements in this section. Each shift on which a violation of this section
4.2occurs shall be considered a separate violation. This penalty is in addition to any penalties
4.3provided under section 177.27, subdivision 7. In determining the amount of a civil penalty
4.4under this subdivision, the appropriateness of the penalty to the size of the violator's business
4.5and the gravity of the violation shall be considered.
4.6 Subd. 4.Civil actions.A person injured by a violation of this section may bring a civil
4.7action for damages against an owner or operator of a petroleum refinery. The court may
4.8award to a prevailing plaintiff under this subdivision damages, attorney fees, costs,
4.9disbursements, and any other appropriate relief as otherwise provided by law.
4.10 EFFECTIVE DATE.This section is effective October 15, 2023.
4Sec. 2.
23-01381 as introduced12/22/22 REVISOR SS/RC