SF 10

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/10/2023 03:59pm

A bill for an act
relating to labor and industry; providing for use of skilled and trained contractor
workforces at petroleum refineries; amending Minnesota Statutes 2022, section
177.27, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter
181.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 177.27, subdivision 4, is amended to read:

Subd. 4.

Compliance orders.

The commissioner may issue an order requiring an
employer to comply with sections 177.21 to 177.435, 181.02, 181.03, 181.031, 181.032,
181.101, 181.11, 181.13, 181.14, 181.145, 181.15, 181.172, paragraph (a) or (d), 181.275,
subdivision 2a, 181.722, 181.79, deleted text begin and deleted text end 181.939 to 181.943, new text begin and 181.987, new text end or with any rule
promulgated under section 177.28. The commissioner shall issue an order requiring an
employer to comply with sections 177.41 to 177.435 new text begin or 181.987 new text end if the violation is repeated.
For purposes of this subdivision only, a violation is repeated if at any time during the two
years that preceded the date of violation, the commissioner issued an order to the employer
for violation of sections 177.41 to 177.435 new text begin or 181.987 new text end and the order is final or the
commissioner and the employer have entered into a settlement agreement that required the
employer to pay back wages that were required by sections 177.41 to 177.435. The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of business. An employer
who wishes to contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order. A contested case
proceeding must then be held in accordance with sections 14.57 to 14.69. If, within 15
calendar days after being served with the order, the employer fails to file a written notice
of objection with the commissioner, the order becomes a final order of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 15, 2023.
new text end

Sec. 2.

new text begin [181.987] USE OF SKILLED AND TRAINED CONTRACTOR
WORKFORCES AT PETROLEUM REFINERIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Contractor" means a vendor that enters into or seeks to enter into a contract with
an owner or operator of a petroleum refinery to perform construction, alteration, demolition,
installation, repair, maintenance, or hazardous material handling work at the site of the
petroleum refinery. Contractor includes all contractors or subcontractors of any tier
performing work as described in this paragraph at the site of the petroleum refinery.
Contractor does not include employees of the owner or operator of a petroleum refinery.
new text end

new text begin (c) "Registered apprenticeship program" means an apprenticeship program registered
with the Department of Labor and Industry under chapter 178 or with the United States
Department of Labor Office of Apprenticeship or a recognized state apprenticeship agency
under Code of Federal Regulations, title 29, parts 29 and 30.
new text end

new text begin (d) "Skilled and trained workforce" means a workforce in which each employee of the
contractor or subcontractor of any tier working at the site of the petroleum refinery meets
one of the following criteria:
new text end

new text begin (1) is currently registered as an apprentice in a registered apprenticeship program in the
applicable trade;
new text end

new text begin (2) has graduated from a registered apprenticeship program in the applicable trade; or
new text end

new text begin (3) has completed all of the related instruction and on-the-job learning requirements
needed to graduate from the registered apprenticeship program their employer participates
in.
new text end

new text begin (e) "Petroleum refinery" means a facility engaged in producing gasoline, kerosene,
distillate fuel oils, residual fuel oil, lubricants, or other products through distillation of
petroleum or through redistillation, cracking, or reforming of unfinished petroleum
derivatives. Petroleum refinery includes fluid catalytic cracking unit catalyst regenerators,
fluid catalytic cracking unit incinerator-waste heat boilers, fuel gas combustion devices,
and indirect heating equipment associated with the refinery.
new text end

new text begin (f) "OEM" means original equipment manufacturer and refers to organizations that
manufacture or fabricate equipment for sale directly to purchasers or other resellers.
new text end

new text begin Subd. 2. new text end

new text begin Use of contractors by owner, operator; requirement. new text end

new text begin (a) An owner or operator
of a petroleum refinery shall, when contracting with contractors for the performance of
construction, alteration, demolition, installation, repair, maintenance, or hazardous material
handling work at the site of the petroleum refinery, require that the contractors performing
that work, and any subcontractors of any tier, use a skilled and trained workforce when
performing all work at the site of the petroleum refinery.
new text end

new text begin (b) The requirement under this subdivision applies only when each contractor and
subcontractor of any tier is performing work at the site of the petroleum refinery.
new text end

new text begin (c) The requirement under this subdivision does not apply when an owner or operator
contracts with contractors or subcontractors hired to perform OEM work to comply with
equipment warranty requirements.
new text end

new text begin (d) An owner or operator's contracted workforce must meet the requirements of
subdivision 1, paragraph (d) according to the following schedule:
new text end

new text begin (1) 65 percent by October 15, 2023;
new text end

new text begin (2) 75 percent by October 15, 2024; and
new text end

new text begin (3) 85 percent by October 15, 2025.
new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

new text begin (a) The Division of Labor Standards shall receive complaints of
violations of this section. The commissioner of labor and industry shall fine an owner or
operator, contractor, or subcontractor of any tier not less than $5,000 nor more than $10,000
for each violation of the requirements in this section.
new text end

new text begin (b) An owner or operator shall be found in violation of this section, and subject to fines
and other penalties, for failing to:
new text end

new text begin (1) require a skilled and trained workforce in its contracts and subcontracts as required
by subdivision 2, paragraph (a); or
new text end

new text begin (2) enforce the requirement of use of a skilled and trained workforce as required by
subdivision 2, paragraph (a).
new text end

new text begin (c) A contractor or subcontractor shall be found in violation of this section, and subject
to fines and other penalties, if the contractor or subcontractor fails to use a skilled and trained
workforce as required by subdivision 2, paragraph (a).
new text end

new text begin (d) Each shift on which a violation of this section occurs shall be considered a separate
violation. This fine is in addition to any penalties provided under section 177.27, subdivision
7. In determining the amount of a fine under this subdivision, the appropriateness of the
fine to the size of the violator's business and the gravity of the violation shall be considered.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 15, 2023.
new text end