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.
S0010-2 2nd EngrossmentSF10 REVISOR SS
SENATE
STATE OF MINNESOTA
S.F. No. 10NINETY-THIRD SESSION
(SENATE AUTHORS: SEEBERGER, Dziedzic, Klein, McEwen and Abeler)
OFFICIAL STATUSD-PGDATE
Introduction and first reading7201/04/2023
Referred to Labor
Author added Klein12701/10/2023
Authors added McEwen; Abeler18101/12/2023
Comm report: To pass as amended and re-refer to Judiciary and Public Safety190a01/17/2023
Rule 12.10: report of votes in committee190
Comm report: To pass as amended and re-refer to Labor03/06/2023 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 registered
2.15with the Department of Labor and Industry under chapter 178 or with the United States
2.16Department of Labor Office of Apprenticeship or a recognized state apprenticeship agency
2.17under Code of Federal Regulations, title 29, parts 29 and 30.
2.18 (d) "Skilled and trained workforce" means a workforce in which each employee of the
2.19contractor or subcontractor of any tier working at the site of the petroleum refinery meets
2.20one of the following criteria:
2.21 (1) is currently registered as an apprentice in a registered apprenticeship program in the
2.22applicable trade;
2.23 (2) has graduated from a registered apprenticeship program in the applicable trade; or
2.24 (3) has completed all of the related instruction and on-the-job learning requirements
2.25needed to graduate from the registered apprenticeship program their employer participates
2.26in.
2.27 (e) "Petroleum refinery" means a facility engaged in producing gasoline, kerosene,
2.28distillate fuel oils, residual fuel oil, lubricants, or other products through distillation of
2.29petroleum or through redistillation, cracking, or reforming of unfinished petroleum
2.30derivatives. Petroleum refinery includes fluid catalytic cracking unit catalyst regenerators,
2.31fluid catalytic cracking unit incinerator-waste heat boilers, fuel gas combustion devices,
2.32and indirect heating equipment associated with the refinery.
2Sec. 2.
S0010-2 2nd EngrossmentSF10 REVISOR SS 3.1 (f) "OEM" means original equipment manufacturer and refers to organizations that
3.2manufacture or fabricate equipment for sale directly to purchasers or other resellers.
3.3 Subd. 2.Use of contractors by owner, operator; requirement.(a) An owner or operator
3.4of a petroleum refinery shall, when contracting with contractors for the performance of
3.5construction, alteration, demolition, installation, repair, maintenance, or hazardous material
3.6handling work at the site of the petroleum refinery, require that the contractors performing
3.7that work, and any subcontractors of any tier, use a skilled and trained workforce when
3.8performing all work at the site of the petroleum refinery.
3.9 (b) The requirement under this subdivision applies only when each contractor and
3.10subcontractor of any tier is performing work at the site of the petroleum refinery.
3.11 (c) The requirement under this subdivision does not apply when an owner or operator
3.12contracts with contractors or subcontractors hired to perform OEM work to comply with
3.13equipment warranty requirements.
3.14 (d) An owner or operator's contracted workforce must meet the requirements of
3.15subdivision 1, paragraph (d) according to the following schedule:
3.16 (1) 65 percent by October 15, 2023;
3.17 (2) 75 percent by October 15, 2024; and
3.18 (3) 85 percent by October 15, 2025.
3.19 Subd. 3.Penalties.(a) The Division of Labor Standards shall receive complaints of
3.20violations of this section. The commissioner of labor and industry shall fine an owner or
3.21operator, contractor, or subcontractor of any tier not less than $5,000 nor more than $10,000
3.22for each violation of the requirements in this section.
3.23 (b) An owner or operator shall be found in violation of this section, and subject to fines
3.24and other penalties, for failing to:
3.25 (1) require a skilled and trained workforce in its contracts and subcontracts as required
3.26by subdivision 2, paragraph (a); or
3.27 (2) enforce the requirement of use of a skilled and trained workforce as required by
3.28subdivision 2, paragraph (a).
3.29 (c) A contractor or subcontractor shall be found in violation of this section, and subject
3.30to fines and other penalties, if the contractor or subcontractor fails to use a skilled and trained
3.31workforce as required by subdivision 2, paragraph (a).
3Sec. 2.
S0010-2 2nd EngrossmentSF10 REVISOR SS 4.1 (d) Each shift on which a violation of this section occurs shall be considered a separate
4.2violation. This fine is in addition to any penalties provided under section 177.27, subdivision
4.37. In determining the amount of a fine under this subdivision, the appropriateness of the
4.4fine to the size of the violator's business and the gravity of the violation shall be considered.
4.5 EFFECTIVE DATE.This section is effective October 15, 2023.
4Sec. 2.
S0010-2 2nd EngrossmentSF10 REVISOR SS