1.1                          A bill for an act
  1.2             relating to commerce; modifying the petroleum tank 
  1.3             release cleanup program in the department of commerce; 
  1.4             limiting the amount of the deductible required on 
  1.5             residential sites; establishing registration 
  1.6             requirements for consultants and contractors; amending 
  1.7             Minnesota Statutes 1994, sections 115C.09, subdivision 
  1.8             3; and 115C.11, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 115C.09, 
  1.11  subdivision 3, is amended to read: 
  1.12     Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
  1.13  Except as otherwise provided in paragraph (i), the board shall 
  1.14  reimburse a responsible person who is eligible under subdivision 
  1.15  2 from the account for 90 percent of the total reimbursable 
  1.16  costs on the first $250,000 and 75 percent on any remaining 
  1.17  costs in excess of $250,000 on a site. 
  1.18     Not more than $1,000,000 may be reimbursed for costs 
  1.19  associated with a single release, regardless of the number of 
  1.20  persons eligible for reimbursement, and not more than $2,000,000 
  1.21  may be reimbursed for costs associated with a single tank 
  1.22  facility. 
  1.23     (b) A reimbursement may not be made from the account under 
  1.24  this subdivision until the board has determined that the costs 
  1.25  for which reimbursement is requested were actually incurred and 
  1.26  were reasonable. 
  1.27     (c) A reimbursement may not be made from the account under 
  2.1   this subdivision in response to either an initial or 
  2.2   supplemental application for costs incurred after June 4, 1987, 
  2.3   that are payable under an applicable insurance policy, except 
  2.4   that if the board finds that the responsible person has made 
  2.5   reasonable efforts to collect from an insurer and failed, the 
  2.6   board shall reimburse the responsible person under this 
  2.7   subdivision. 
  2.8      (d) If the board reimburses a responsible person for costs 
  2.9   for which the responsible person has petroleum tank leakage or 
  2.10  spill insurance coverage, the board is subrogated to the rights 
  2.11  of the responsible person with respect to that insurance 
  2.12  coverage, to the extent of the reimbursement by the board.  The 
  2.13  board may request the attorney general to bring an action in 
  2.14  district court against the insurer to enforce the board's 
  2.15  subrogation rights.  Acceptance by a responsible person of 
  2.16  reimbursement constitutes an assignment by the responsible 
  2.17  person to the board of any rights of the responsible person with 
  2.18  respect to any insurance coverage applicable to the costs that 
  2.19  are reimbursed.  Notwithstanding this paragraph, the board may 
  2.20  instead request a return of the reimbursement under subdivision 
  2.21  5 and may employ against the responsible party the remedies 
  2.22  provided in that subdivision, except where the board has 
  2.23  knowingly provided reimbursement because the responsible person 
  2.24  was denied coverage by the insurer. 
  2.25     (e) Money in the account is appropriated to the board to 
  2.26  make reimbursements under this section.  A reimbursement to a 
  2.27  state agency must be credited to the appropriation account or 
  2.28  accounts from which the reimbursed costs were paid. 
  2.29     (f) The board shall reduce the amount of reimbursement to 
  2.30  be made under this section if it finds that the responsible 
  2.31  person has not complied with a provision of this chapter, a rule 
  2.32  or order issued under this chapter, or one or more of the 
  2.33  following requirements: 
  2.34     (1) at the time of the release the tank was in substantial 
  2.35  compliance with state and federal rules and regulations 
  2.36  applicable to the tank, including rules or regulations relating 
  3.1   to financial responsibility; 
  3.2      (2) the agency was given notice of the release as required 
  3.3   by section 115.061; 
  3.4      (3) the responsible person, to the extent possible, fully 
  3.5   cooperated with the agency in responding to the release; and 
  3.6      (4) if the responsible person is an operator, the person 
  3.7   exercised due care with regard to operation of the tank, 
  3.8   including maintaining inventory control procedures. 
  3.9      (g) The reimbursement shall be reduced as much as 100 
  3.10  percent for failure by the responsible person to comply with the 
  3.11  requirements in paragraph (f), clauses (1) to (4).  In 
  3.12  determining the amount of the reimbursement reduction, the board 
  3.13  shall consider:  
  3.14     (1) the likely environmental impact of the noncompliance; 
  3.15     (2) whether the noncompliance was negligent, knowing, or 
  3.16  willful; 
  3.17     (3) the deterrent effect of the award reduction on other 
  3.18  tank owners and operators; and 
  3.19     (4) the amount of reimbursement reduction recommended by 
  3.20  the commissioner. 
  3.21     (h) A person may assign the right to receive reimbursement 
  3.22  to each lender who advanced funds to pay the costs of the 
  3.23  corrective action or to each contractor or consultant who 
  3.24  provided corrective action services.  An assignment must be made 
  3.25  by filing with the board a document, in a form prescribed by the 
  3.26  board, indicating the identity of the responsible person, the 
  3.27  identity of the assignee, the dollar amount of the assignment, 
  3.28  and the location of the corrective action.  An assignment signed 
  3.29  by the responsible person is valid unless terminated by filing a 
  3.30  termination with the board, in a form prescribed by the board, 
  3.31  which must include the written concurrence of the assignee.  The 
  3.32  board shall maintain an index of assignments filed under this 
  3.33  paragraph.  The board shall pay the reimbursement to the 
  3.34  responsible person and to one or more assignees by a multiparty 
  3.35  check.  The board has no liability to a responsible person for a 
  3.36  payment under an assignment meeting the requirements of this 
  4.1   paragraph. 
  4.2      (i) For corrective actions at residential sites, the 
  4.3   payment by the responsible person required by the board prior to 
  4.4   reimbursement shall be $2,500 plus five percent of the eligible 
  4.5   costs, but shall not exceed $7,500 per occurrence.  
  4.6      Sec. 2.  Minnesota Statutes 1994, section 115C.11, 
  4.7   subdivision 1, is amended to read: 
  4.8      Subdivision 1.  [REGISTRATION.] (a) All consultants and 
  4.9   contractors must register with the board in order to participate 
  4.10  in the petroleum tank release cleanup program.  In order to 
  4.11  register, consultants and contractors must meet and demonstrate 
  4.12  compliance with the following criteria: 
  4.13     (1) provide a signed statement to the board verifying 
  4.14  agreement to abide by this chapter and the rules adopted under 
  4.15  it and to include a signed statement with each claim that all 
  4.16  costs claimed by the consultant or contractor are a true and 
  4.17  accurate account of services performed; 
  4.18     (2) provide a signed statement that the consultant or 
  4.19  contractor shall make available for inspection and audit records 
  4.20  requested by the board for field or financial audits under the 
  4.21  scope of this chapter; 
  4.22     (3) certify knowledge of the requirements of this chapter 
  4.23  and the rules adopted under it; 
  4.24     (4) obtain and maintain professional liability coverage, 
  4.25  including pollution impairment liability, of no less than 
  4.26  $1,000,000 per claim, $1,000,000 annual aggregate, and a 
  4.27  deductible of no more than $100,000 per claim and that is 
  4.28  provided by a firm that has an A.M. Best rating of at least 
  4.29  "A-"; and 
  4.30     (5) submit to the board a certificate or certificates 
  4.31  verifying the existence of the required insurance coverage for 
  4.32  all consultants or contractors who performed work included in a 
  4.33  claim along with any request for reimbursement. 
  4.34     (b) The board must maintain a list of all registered 
  4.35  consultants and a list of all registered contractors including 
  4.36  an identification of the services offered. 
  5.1      (c) An applicant who applies for reimbursement must use a 
  5.2   registered consultant and contractor in order to be eligible for 
  5.3   reimbursement. 
  5.4      (d) The commissioner must inform any person who notifies 
  5.5   the agency of a release under section 115.061 that the person 
  5.6   must use a registered consultant or contractor to qualify for 
  5.7   reimbursement and that a list of registered consultants and 
  5.8   contractors is available from the board. 
  5.9      (e) Work performed by an unregistered consultant or 
  5.10  contractor is ineligible for reimbursement.  
  5.11     (f) Work performed by a consultant or contractor prior to 
  5.12  being removed from the registration list may be reimbursed by 
  5.13  the board. 
  5.14     (g) If the information in an application for registration 
  5.15  becomes inaccurate or incomplete in any material respect, the 
  5.16  registered consultant or contractor must promptly file a 
  5.17  corrected application with the board. 
  5.18     (h) Registration is effective on the date a complete 
  5.19  application is received by the board.  The board may reimburse 
  5.20  the cost of work performed by an unregistered contractor if the 
  5.21  contractor performed the work within 30 days of the effective 
  5.22  date of registration. 
  5.23     Sec. 3.  [EFFECTIVE DATE.] 
  5.24     Section 1 is effective retroactive to June 4, 1987.  
  5.25  Section 2 is effective as of August 1, 1995.