Purpose

• The bill aims to regulate the sale and purchase of hot mix asphalt and warm mix asphalt by requiring certain registrations for contractors and by establishing penalties for unregistered buyers and sellers. It adds new rules to protect public safety, ensure proper contractor oversight, and raise compliance through penalties.

Main Provisions

• Definition of eligible buyers and sellers

  • The term “person” includes individuals and a wide range of business entities (e.g., sole proprietors, LLCs, corporations, partnerships, and other legal or commercial entities).

• Illegal purchase penalties (unregistered buyers)

  • A person who buys hot mix or warm mix asphalt for commercial or retail paving without valid construction contractor registration is guilty of a gross misdemeanor.
  • Additional violations include falsely claiming to have a valid construction contractor registration or falsely stating that the asphalt is for personal use.

• Illegal sale penalties for sellers

  • The commissioner of labor and industry may levy civil penalties on sellers who sell asphalt to an unregistered purchaser, unless certain conditions are met.
  • Conditions that can allow a sale include:
  • The purchaser attests the asphalt is for personal use, and
  • The purchaser purchases no more than five tons in a single transaction and no more than ten tons in any 12-month period.
  • Fines are up to:
  • $1,000 per violation, or
  • $3,000 per violation if the seller knowingly or intentionally violated the rule or has a prior penalty.
  • Civil penalties can be collected through a civil action in a district court, and recovered penalties go to the state general fund.

• Protection for sellers refusing a sale

  • A seller who cites the prohibition on selling to unregistered purchasers as a reason for refusing a sale is protected from civil liability for that refusal.

• Enforcement and related statutory changes

  • The bill proposes coding for a new law in Minnesota Statutes Chapter 325F and amending Minnesota Statutes 2024 section 326B.701 to support the new registration and enforcement framework.

Significant Changes to Existing Law

• Adds a new requirement that construction contractors must be registered under section 326B.701 before purchasing or selling hot mix or warm mix asphalt for most commercial uses.
• Establishes criminal penalties for unregistered purchasers (gross misdemeanor) and civil penalties for sellers who sell to unregistered purchasers (with defined per-violation caps and conditions).
• Introduces a clear deposit/collection mechanism for civil penalties and directs recovered penalties to the general fund.
• Adds explicit protections for sellers who refuse sales based on registration status.

What this bill aims to accomplish

• Improve oversight of asphalt paving activities by tying purchases to contractor registration.
• Create deterrents against unregistered activity in the asphalt market through criminal and civil penalties.
• Provide a framework for enforcement and funding through the state general fund.

Relevant Terms - asphalt, hot mix asphalt, warm mix asphalt - construction contractor registration, section 326B.701 - person (definition for entities) - illegal purchase (unregistered purchaser) - illegal sale (seller of asphalt to unregistered purchaser) - gross misdemeanor - civil penalty, per-violation cap - district court, civil action - personal use attestation - purchaser thresholds (5 tons per sale, 10 tons per 12 months) - commissioner of labor and industry - general fund - knowingly/intentional violation - attestation, seller refusal to sell