SF 2594

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2022 08:36am

A bill for an act
relating to labor and industry; requiring use of skilled and trained contractor
workforces at petroleum refineries; imposing civil penalties; proposing coding for
new law in Minnesota Statutes, chapter 181.

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

Section 1.

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 providing
to each trainee combined classroom and on-the-job training under the direct and close
supervision of a highly skilled worker in an occupation recognized as an apprenticeable
occupation 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 the employees of the
contractor or subcontractor of any tier working at the site of the petroleum refinery meet
one of the following criteria:
new text end

new text begin (1) are currently registered as apprentices in a registered apprenticeship program in the
applicable trade;
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new text begin (2) have graduated from a registered apprenticeship program in the applicable trade; or
new text end

new text begin (3) have completed all of the classroom training and work hour 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.
new text end

new text begin (f) "Apprenticeable occupation" means any trade, form of employment, or occupation
approved for apprenticeship by the United States Secretary of Labor or the commissioner
of labor and industry.
new text end

new text begin (g) "Original equipment manufacturer" or "OEM" means 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 or 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 to contractors or subcontractors
hired to perform OEM work to comply with equipment warranty requirements.
new text end

new text begin Subd. 3. new text end

new text begin Skilled and trained workforce compliance thresholds; timeline. new text end

new text begin A
contractor's workforce meets the requirements of this section if the following skilled and
trained workforce percentage thresholds are achieved by the dates provided as follows:
new text end

new text begin (1) by October 15, 2022, 65 percent of the contractor's workforce working at the site of
the petroleum refinery meets the definition of a skilled and trained workforce;
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new text begin (2) by October 15, 2023, 75 percent of the contractor's workforce working at the site of
the petroleum refinery meets the definition of a skilled and trained workforce; and
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new text begin (3) by October 15, 2024, 85 percent of the contractor's workforce working at the site of
the petroleum refinery meets the definition of a skilled and trained workforce.
new text end

new text begin Subd. 4. new text end

new text begin Penalties. new text end

new text begin The Division of Labor Standards shall receive complaints of violations
of this section. The commissioner of labor and industry shall fine an owner, 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. Each shift on which a violation of this section
occurs shall be considered a separate violation. This penalty is in addition to any penalties
provided under section 177.27, subdivision 7. In determining the amount of a civil penalty
under this subdivision, the appropriateness of the penalty to the size of the violator's business
and the gravity of the violation shall be considered.
new text end

new text begin Subd. 5. new text end

new text begin Civil actions. new text end

new text begin A person injured by a violation of this section may bring a civil
action for damages against an owner or operator of a petroleum refinery. The court may
award to a prevailing plaintiff under this subdivision damages, attorney fees, costs,
disbursements, and any other appropriate relief as otherwise provided by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 15, 2022.
new text end