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.
S0010-4 4th 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 Labor1333a03/06/2023
Comm report: To pass as amended and re-refer to Finance1599a03/13/2023
Comm report: To pass213603/22/2023
Second reading2199
Special Order: Amended04/17/2023
Third reading Passed 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 January 1, 2024.
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 in an
2.20apprenticeable occupation in the building and construction trades meets one of the following
2.21criteria:
2.22 (1) is currently registered as an apprentice in a registered apprenticeship program in the
2.23applicable trade;
2.24 (2) has graduated from a registered apprenticeship program in the applicable trade;
2.25 (3) has completed all of the related instruction and on-the-job learning requirements
2.26needed to graduate from the registered apprenticeship program their employer participates
2.27in; or
2.28 (4) has at least five years of experience working in the applicable trade and is currently
2.29participating in journeyworker upgrade training in a registered apprenticeship program in
2.30the applicable trade or has completed any training identified as necessary by the registered
2.31apprenticeship training program for the employee to become a qualified journeyworker in
2.32the applicable trade.
2Sec. 2.
S0010-4 4th EngrossmentSF10 REVISOR SS 3.1 (e) "Petroleum refinery" means a facility engaged in producing gasoline, kerosene,
3.2distillate fuel oils, residual fuel oil, lubricants, or other products through distillation of
3.3petroleum or through redistillation, cracking, or reforming of unfinished petroleum
3.4derivatives. Petroleum refinery includes fluid catalytic cracking unit catalyst regenerators,
3.5fluid catalytic cracking unit incinerator-waste heat boilers, fuel gas combustion devices,
3.6and indirect heating equipment associated with the refinery.
3.7 (f) "Apprenticeable occupation" means any trade, form of employment, or apprenticeable
3.8occupation in the building and construction trades approved by the commissioner of labor
3.9and industry or the United States Secretary of Labor.
3.10 (g) "OEM" means original equipment manufacturer and refers to organizations that
3.11manufacture or fabricate equipment for sale directly to purchasers or other resellers.
3.12 Subd. 2.Use of contractors by owner, operator; requirement.(a) An owner or operator
3.13of a petroleum refinery shall, when contracting with contractors for the performance of
3.14construction, alteration, demolition, installation, repair, maintenance, or hazardous material
3.15handling work at the site of the petroleum refinery, require that the contractors performing
3.16that work, and any subcontractors of any tier, use a skilled and trained workforce when
3.17performing that work at the site of the petroleum refinery. The requirement to use a safe
3.18and skilled workforce under this section shall apply to each contractor and subcontractor
3.19of any tier when performing construction, alteration, demolition, installation, repair,
3.20maintenance, or hazardous material handling work at the site of the petroleum refinery.
3.21 (b) The requirement under this subdivision applies only when each contractor and
3.22subcontractor of any tier is performing work at the site of the petroleum refinery.
3.23 (c) The requirement under this subdivision does not apply when an owner or operator
3.24contracts with contractors or subcontractors hired to install OEM equipment and to perform
3.25OEM work to comply with equipment warranty requirements.
3.26 (d) A contractor's workforce must meet the requirements of subdivision 1, paragraph
3.27(d), according to the following schedule:
3.28 (1) 30 percent by January 1, 2024;
3.29 (2) 45 percent by January 1, 2025; and
3.30 (3) 60 percent by January 1, 2026.
3.31 (e) If a contractor is required under a collective bargaining agreement to hire workers
3.32referred by a labor organization for the petroleum refinery worksite, and the labor
3.33organization is unable to refer sufficient workers for the contractor to comply with the
3Sec. 2.
S0010-4 4th EngrossmentSF10 REVISOR SS 4.1applicable percentage provided in subdivision 2, paragraph (d), within 48 hours of the
4.2contractor's request excluding Saturdays, Sundays, and holidays, the contractor shall be
4.3relieved of the obligation to comply with the applicable percentage and shall use the
4.4maximum percentage of a skilled and trained workforce that is available to the contractor
4.5from the labor organization's referral procedure. The contractor shall comply with the
4.6applicable percentage provided in subdivision 2, paragraph (d), once the labor organization
4.7is able to refer sufficient workers for the contractor to comply with the applicable percentage.
4.8 (f) This section shall not apply to a contractor to the extent that an emergency makes
4.9compliance with this section impracticable for the contractor because the emergency requires
4.10immediate action by the contractor to prevent harm to public health or safety or to the
4.11environment. The requirements of this section shall apply to the contractor once the
4.12emergency ends or it becomes practicable for the contractor to obtain a skilled and trained
4.13workforce for the refinery worksite, whichever occurs sooner.
4.14 (g) An owner or operator is exempt from this section if:
4.15 (1) the owner or operator has entered into a project labor agreement with a council of
4.16building trades labor organizations requiring participation in registered apprenticeship
4.17programs, or all contractors and subcontractors of any tier have entered into bona fide
4.18collective bargaining agreements with labor organizations requiring participation in registered
4.19apprenticeship programs; and
4.20 (2) all contracted work at the petroleum refinery that is subject to this section is also
4.21subject to the project labor agreement or collective bargaining agreements requiring
4.22participation in such registered apprenticeship programs.
4.23 Subd. 3.Penalties.(a) The Division of Labor Standards shall receive complaints of
4.24violations of this section. The commissioner of labor and industry shall fine an owner or
4.25operator, contractor, or subcontractor of any tier not less than $5,000 nor more than $10,000
4.26for each violation of the requirements in this section. An owner or operator, contractor, or
4.27subcontractor of any tier shall be considered an employer for purposes of section 177.27.
4.28 (b) An owner or operator shall be found in violation of this section, and subject to fines
4.29and other penalties, for failing to:
4.30 (1) require a skilled and trained workforce in its contracts and subcontracts as required
4.31by subdivision 2, paragraph (a); or
4.32 (2) enforce the requirement of use of a skilled and trained workforce as required by
4.33subdivision 2, paragraph (a).
4Sec. 2.
S0010-4 4th EngrossmentSF10 REVISOR SS 5.1 (c) A contractor or subcontractor shall be found in violation of this section, and subject
5.2to fines and other penalties, if the contractor or subcontractor fails to use a skilled and trained
5.3workforce as required by subdivision 2, paragraph (a).
5.4 (d) Each shift on which a violation of this section occurs shall be considered a separate
5.5violation. This fine is in addition to any penalties provided under section 177.27, subdivision
5.67. In determining the amount of a fine under this subdivision, the appropriateness of the
5.7fine to the size of the violator's business and the gravity of the violation shall be considered.
5.8 EFFECTIVE DATE.This section is effective January 1, 2024, and applies to contracts
5.9entered into, extended, or renewed on or after that date. Existing contracts entered into
5.10before January 1, 2024, must be renegotiated to comply with section 2 by January 1, 2025.
5Sec. 2.
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