Purpose

This bill would create a regulated system for buying and selling hot mix and warm mix asphalt. It would require businesses that perform paving work to register as construction contractors, restrict sales of asphalt to unregistered buyers, and establish penalties for illegal purchases and sales. The goal is to ensure asphalt is used appropriately while strengthening oversight by the state.

Main provisions

• Definition of "person"

  • The bill broadly defines “person” to include individuals and various business structures (sole proprietors, LLCs, partnerships, corporations, unincorporated groups, etc.).

• Illegal purchase (unregistered buyers)

  • A person who is not registered as a construction contractor under section 326B.701 would be guilty of a gross misdemeanor if they:
  • purchase hot mix or warm mix asphalt for commercial or retail paving, or
  • falsely claim to a seller that they have valid construction contractor registration, or
  • falsely attest that the purchase is solely for personal use.

• Illegal sale (to unregistered buyers)

  • The commissioner of labor and industry may impose civil penalties on sellers who sell hot mix or warm mix asphalt to an unregistered purchaser unless the purchaser attests the asphalt is for personal use and the sale meets quantity limits:
  • No more than five tons in a single transaction.
  • No more than ten tons in any 12-month period.
  • Penalties:
  • Up to $1,000 per violation, or
  • Up to $3,000 per violation if the seller knowingly violated the rule or has been penalized previously.
  • Penalties can be collected through civil action in district court, and collected penalties go to the state general fund.

• Protection for sellers

  • A seller who cites these restrictions as the reason to refuse a sale is protected from civil liability for the refusal.

• Administrative context

  • The bill would amend Minnesota Statutes to incorporate these provisions into the existing framework, including references to 326B.701 and the broader 325F provisions.

Significant changes to existing law

• Establishes a new registration-and-purchase framework for asphalt by tying sales and purchases to a construction contractor registration requirement.
• Introduces criminal penalties (gross misdemeanor) for unregistered purchasers in the context of asphalt procurement.
• Creates a new set of civil penalties for sellers who violate the sale restrictions, with specific per-violation caps and conditions (attestation of personal use, transaction limits, knowledge standards).
• Allows penalties to be collected via civil action and directs funds to the general fund.
• Expands the statutory definitions around who is legally considered a “person” for purposes of asphalt transactions.

Enforcement and penalties (highlights)

• Unregistered purchaser: gross misdemeanor for commercial/retail purchases or false representations.
• Seller penalties: civil penalties up to $1,000 per violation, or up to $3,000 per violation if knowingly violated or previously penalized.
• Attestation and quantity limits: personal-use attestation required; caps of five tons per transaction and ten tons per 12-month period.
• Recovery and funds: penalties recovered through district court actions go to the general fund.
• Liability protection: sellers are protected from civil liability when refusing sales based on these provisions.

Definitions and key terms (from the bill)

• hot mix asphalt
• warm mix asphalt
• construction contractor registration
• section 326B.701
• gross misdemeanor
• civil penalty
• general fund
• purchaser attests
• personal use
• single transaction
• 12-month period
• commissioner of labor and industry
• Minnesota Statutes 2024 section 326B.701

Relevant terms

hot mix asphalt warm mix asphalt construction contractor registration gross misdemeanor civil penalty general fund purchaser attests personal use single transaction 12-month period commissioner of labor and industry Section 326B.701 Minnesota Statutes 2024 illegal purchase illegal sale paving industry regulation regulatory compliance