Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF10 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to labor and industry; providing for use of skilled and trained contractor
3	3		1.3 workforces at petroleum refineries; amending Minnesota Statutes 2022, section
4	4		1.4 177.27, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter
5	5		1.5 181.
6	6		1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7		1.7 Section 1. Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:
8	8		1.8 Subd. 4.Compliance orders.The commissioner may issue an order requiring an
9	9		1.9employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
10	10		1.10181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
11	11		1.11subdivision 2a, 181.722, 181.79, and 181.939 to 181.943, and 181.987, or with any rule
12	12		1.12promulgated under section 177.28. The commissioner shall issue an order requiring an
13	13		1.13employer to comply with sections 177.41 to 177.435 or 181.987 if the violation is repeated.
14	14		1.14For purposes of this subdivision only, a violation is repeated if at any time during the two
15	15		1.15years that preceded the date of violation, the commissioner issued an order to the employer
16	16		1.16for violation of sections 177.41 to 177.435 or 181.987 and the order is final or the
17	17		1.17commissioner and the employer have entered into a settlement agreement that required the
18	18		1.18employer to pay back wages that were required by sections 177.41 to 177.435. The
19	19		1.19department shall serve the order upon the employer or the employer's authorized
20	20		1.20representative in person or by certified mail at the employer's place of business. An employer
21	21		1.21who wishes to contest the order must file written notice of objection to the order with the
22	22		1.22commissioner within 15 calendar days after being served with the order. A contested case
23	23		1.23proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15
24	24		1Section 1.
25		-	S0010-~~4 4th~~ EngrossmentSF10 REVISOR SS
	25	+	S0010-3 3rd EngrossmentSF10 REVISOR SS
26	26		SENATE
27	27		STATE OF MINNESOTA
28	28		S.F. No. 10NINETY-THIRD SESSION
29	29		(SENATE AUTHORS: SEEBERGER, Dziedzic, Klein, McEwen and Abeler)
30	30		OFFICIAL STATUSD-PGDATE
31	31		Introduction and first reading7201/04/2023
32	32		Referred to Labor
33	33		Author added Klein12701/10/2023
34	34		Authors added McEwen; Abeler18101/12/2023
35	35		Comm report: To pass as amended and re-refer to Judiciary and Public Safety190a01/17/2023
36	36		Rule 12.10: report of votes in committee190
37	37		Comm report: To pass as amended and re-refer to Labor1333a03/06/2023
38		-	Comm report: To pass as amended and re-refer to Finance1599a03/13/2023
39		-	Comm report: To pass213603/22/2023
40		-	Second reading2199
41		-	Special Order: Amended04/17/2023
42		-	Third reading Passed 2.1calendar days after being served with the order, the employer fails to file a written notice
	38	+	Comm report: To pass as amended and re-refer to Finance03/13/2023 2.1calendar days after being served with the order, the employer fails to file a written notice
43	39		2.2of objection with the commissioner, the order becomes a final order of the commissioner.
44	40		2.3 EFFECTIVE DATE.This section is effective January 1, 2024.
45	41		2.4 Sec. 2. [181.987] USE OF SKILLED AND TRAINED CONTRACTOR
46	42		2.5WORKFORCES AT PETROLEUM REFINERIES.
47	43		2.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
48	44		2.7the meanings given.
49	45		2.8 (b) "Contractor" means a vendor that enters into or seeks to enter into a contract with
50	46		2.9an owner or operator of a petroleum refinery to perform construction, alteration, demolition,
51	47		2.10installation, repair, maintenance, or hazardous material handling work at the site of the
52	48		2.11petroleum refinery. Contractor includes all contractors or subcontractors of any tier
53	49		2.12performing work as described in this paragraph at the site of the petroleum refinery.
54	50		2.13Contractor does not include employees of the owner or operator of a petroleum refinery.
55	51		2.14 (c) "Registered apprenticeship program" means an apprenticeship program registered
56	52		2.15with the Department of Labor and Industry under chapter 178 or with the United States
57	53		2.16Department of Labor Office of Apprenticeship or a recognized state apprenticeship agency
58	54		2.17under Code of Federal Regulations, title 29, parts 29 and 30.
59	55		2.18 (d) "Skilled and trained workforce" means a workforce in which each employee of the
60	56		2.19contractor or subcontractor of any tier working at the site of the petroleum refinery in an
61	57		2.20apprenticeable occupation in the building and construction trades meets one of the following
62	58		2.21criteria:
63	59		2.22 (1) is currently registered as an apprentice in a registered apprenticeship program in the
64	60		2.23applicable trade;
65	61		2.24 (2) has graduated from a registered apprenticeship program in the applicable trade;
66	62		2.25 (3) has completed all of the related instruction and on-the-job learning requirements
67	63		2.26needed to graduate from the registered apprenticeship program their employer participates
68	64		2.27in; or
69	65		2.28 (4) has at least five years of experience working in the applicable trade and is currently
70	66		2.29participating in journeyworker upgrade training in a registered apprenticeship program in
71	67		2.30the applicable trade or has completed any training identified as necessary by the registered
72	68		2.31apprenticeship training program for the employee to become a qualified journeyworker in
73	69		2.32the applicable trade.
74	70		2Sec. 2.
75		-	S0010-~~4 4th~~ EngrossmentSF10 REVISOR SS 3.1 (e) "Petroleum refinery" means a facility engaged in producing gasoline, kerosene,
	71	+	S0010-3 3rd EngrossmentSF10 REVISOR SS 3.1 (e) "Petroleum refinery" means a facility engaged in producing gasoline, kerosene,
76	72		3.2distillate fuel oils, residual fuel oil, lubricants, or other products through distillation of
77	73		3.3petroleum or through redistillation, cracking, or reforming of unfinished petroleum
78	74		3.4derivatives. Petroleum refinery includes fluid catalytic cracking unit catalyst regenerators,
79	75		3.5fluid catalytic cracking unit incinerator-waste heat boilers, fuel gas combustion devices,
80	76		3.6and indirect heating equipment associated with the refinery.
81		-	3.7 (f) "Apprenticeable occupation" means any trade, form of employment, or ~~apprenticeable~~
82		-	3.~~8occupation in the building and construction trades approved~~ by the commissioner of labor
83		-	3.~~9and industry or the United States Secretary~~ of Labor.
	77	+	3.7 (f) "Apprenticeable occupation" means any trade, form of employment, or occupation
	78	+	3.8approved for apprenticeship by the commissioner of labor and industry or the United States
	79	+	3.9Secretary of Labor.
84	80		3.10 (g) "OEM" means original equipment manufacturer and refers to organizations that
85	81		3.11manufacture or fabricate equipment for sale directly to purchasers or other resellers.
86	82		3.12 Subd. 2.Use of contractors by owner, operator; requirement.(a) An owner or operator
87	83		3.13of a petroleum refinery shall, when contracting with contractors for the performance of
88	84		3.14construction, alteration, demolition, installation, repair, maintenance, or hazardous material
89	85		3.15handling work at the site of the petroleum refinery, require that the contractors performing
90	86		3.16that work, and any subcontractors of any tier, use a skilled and trained workforce when
91	87		3.17performing that work at the site of the petroleum refinery. The requirement to use a safe
92	88		3.18and skilled workforce under this section shall apply to each contractor and subcontractor
93	89		3.19of any tier when performing construction, alteration, demolition, installation, repair,
94	90		3.20maintenance, or hazardous material handling work at the site of the petroleum refinery.
95	91		3.21 (b) The requirement under this subdivision applies only when each contractor and
96	92		3.22subcontractor of any tier is performing work at the site of the petroleum refinery.
97	93		3.23 (c) The requirement under this subdivision does not apply when an owner or operator
98	94		3.24contracts with contractors or subcontractors hired to install OEM equipment and to perform
99	95		3.25OEM work to comply with equipment warranty requirements.
100	96		3.26 (d) A contractor's workforce must meet the requirements of subdivision 1, paragraph
101	97		3.27(d), according to the following schedule:
102	98		3.28 (1) 30 percent by January 1, 2024;
103	99		3.29 (2) 45 percent by January 1, 2025; and
104	100		3.30 (3) 60 percent by January 1, 2026.
105	101		3.31 (e) If a contractor is required under a collective bargaining agreement to hire workers
106	102		3.32referred by a labor organization for the petroleum refinery worksite, and the labor
107	103		3.33organization is unable to refer sufficient workers for the contractor to comply with the
108	104		3Sec. 2.
109		-	S0010-~~4 4th~~ EngrossmentSF10 REVISOR SS 4.1applicable percentage provided in subdivision 2, paragraph (d), within 48 hours of the
	105	+	S0010-3 3rd EngrossmentSF10 REVISOR SS 4.1applicable percentage provided in subdivision 2, paragraph (d), within 48 hours of the
110	106		4.2contractor's request excluding Saturdays, Sundays, and holidays, the contractor shall be
111	107		4.3relieved of the obligation to comply with the applicable percentage and shall use the
112	108		4.4maximum percentage of a skilled and trained workforce that is available to the contractor
113	109		4.5from the labor organization's referral procedure. The contractor shall comply with the
114	110		4.6applicable percentage provided in subdivision 2, paragraph (d), once the labor organization
115	111		4.7is able to refer sufficient workers for the contractor to comply with the applicable percentage.
116	112		4.8 (f) This section shall not apply to a contractor to the extent that an emergency makes
117	113		4.9compliance with this section impracticable for the contractor because the emergency requires
118	114		4.10immediate action by the contractor to prevent harm to public health or safety or to the
119	115		4.11environment. The requirements of this section shall apply to the contractor once the
120	116		4.12emergency ends or it becomes practicable for the contractor to obtain a skilled and trained
121	117		4.13workforce for the refinery worksite, whichever occurs sooner.
122	118		4.14 (g) An owner or operator is exempt from this section if:
123	119		4.15 (1) the owner or operator has entered into a project labor agreement with a council of
124	120		4.16building trades labor organizations requiring participation in registered apprenticeship
125	121		4.17programs, or all contractors and subcontractors of any tier have entered into bona fide
126	122		4.18collective bargaining agreements with labor organizations requiring participation in registered
127	123		4.19apprenticeship programs; and
128	124		4.20 (2) all contracted work at the petroleum refinery that is subject to this section is also
129	125		4.21subject to the project labor agreement or collective bargaining agreements requiring
130	126		4.22participation in such registered apprenticeship programs.
131	127		4.23 Subd. 3.Penalties.(a) The Division of Labor Standards shall receive complaints of
132	128		4.24violations of this section. The commissioner of labor and industry shall fine an owner or
133	129		4.25operator, contractor, or subcontractor of any tier not less than $5,000 nor more than $10,000
134	130		4.26for each violation of the requirements in this section. An owner or operator, contractor, or
135	131		4.27subcontractor of any tier shall be considered an employer for purposes of section 177.27.
136	132		4.28 (b) An owner or operator shall be found in violation of this section, and subject to fines
137	133		4.29and other penalties, for failing to:
138	134		4.30 (1) require a skilled and trained workforce in its contracts and subcontracts as required
139	135		4.31by subdivision 2, paragraph (a); or
140	136		4.32 (2) enforce the requirement of use of a skilled and trained workforce as required by
141	137		4.33subdivision 2, paragraph (a).
142	138		4Sec. 2.
143		-	S0010-~~4 4th~~ EngrossmentSF10 REVISOR SS 5.1 (c) A contractor or subcontractor shall be found in violation of this section, and subject
	139	+	S0010-3 3rd EngrossmentSF10 REVISOR SS 5.1 (c) A contractor or subcontractor shall be found in violation of this section, and subject
144	140		5.2to fines and other penalties, if the contractor or subcontractor fails to use a skilled and trained
145	141		5.3workforce as required by subdivision 2, paragraph (a).
146	142		5.4 (d) Each shift on which a violation of this section occurs shall be considered a separate
147	143		5.5violation. This fine is in addition to any penalties provided under section 177.27, subdivision
148	144		5.67. In determining the amount of a fine under this subdivision, the appropriateness of the
149	145		5.7fine to the size of the violator's business and the gravity of the violation shall be considered.
150	146		5.8 EFFECTIVE DATE.This section is effective January 1, 2024, and applies to contracts
151	147		5.9entered into, extended, or renewed on or after that date. Existing contracts entered into
152	148		5.10before January 1, 2024, must be renegotiated to comply with section 2 by January 1, 2025.
153	149		5Sec. 2.
154		-	S0010-~~4 4th~~ EngrossmentSF10 REVISOR SS
	150	+	S0010-3 3rd EngrossmentSF10 REVISOR SS