SF 2827

as introduced - 91st Legislature (2019 - 2020) Posted on 04/12/2019 09:00am

A bill for an act
relating to environment; providing reimbursement to owners of private drinking
water wells for mitigation of agricultural chemicals; modifying the membership
of the Agricultural Chemical Response Compensation Board; appropriating money
for private well mitigation; amending Minnesota Statutes 2018, sections 18E.02,
subdivision 5; 18E.03, subdivision 2; 18E.05, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapter 18E.

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

Section 1.

Minnesota Statutes 2018, section 18E.02, subdivision 5, is amended to read:

Subd. 5.

Eligible person.

"Eligible person" means:

(1) a responsible party or an owner of real property, but does not include the state, a
state agency, or a political subdivision of the state, except as provided in clause (2); common
carriers, as defined by section 218.011, subdivision 10; motor carriers as defined by section
221.012, subdivision 25, while transporting agricultural chemicals except as provided in
clause (3); or the federal government or an agency of the federal government;

(2) the owners of municipal airports in Minnesota where a licensed aerial pesticide
applicator has caused an incident through storage, handling, or distribution operations for
agricultural chemicals if (i) the commissioner has determined that corrective action is
necessary and (ii) the commissioner determines, and the Agricultural Chemical Response
Compensation Board concurs, that based on an affirmative showing made by the owner, a
responsible party cannot be identified or the identified responsible party is unable to comply
with an order for corrective action; deleted text begin or
deleted text end

(3) a person involved in a transaction relating to real property who is not a responsible
party or owner of the real property and who voluntarily takes corrective action on the
property in response to a request or order for corrective action from the commissioner deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) the owner of a private well used primarily for drinking water when:
new text end

new text begin (i) the level of agricultural chemical in the well's water exceeds a health risk limit adopted
by the commissioner of health; and
new text end

new text begin (ii) this contamination is not the result of an incident covered under section 18E.04.
new text end

Sec. 2.

Minnesota Statutes 2018, section 18E.03, subdivision 2, is amended to read:

Subd. 2.

Expenditures.

(a) Money in the agricultural chemical response and
reimbursement account may only be used:

(1) to pay for the commissioner's responses to incidents under chapters 18B, 18C, and
18D that are not eligible for payment under section 115B.20, subdivision 2;

(2) to pay for emergency responses that are otherwise unable to be funded;

(3) to reimburse and pay corrective action costs under section 18E.04; deleted text begin and
deleted text end

(4) new text begin to reimburse mitigation costs under section 18E.045; and
new text end

new text begin (5) new text end to reimburse the commissioner for board staff and other administrative costs and the
commissioner's incident response program costs related to eligible incident sites, up to
$450,000 per fiscal year.

(b) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make payments as provided in this subdivision.

Sec. 3.

new text begin [18E.045] REIMBURSEMENT OF COSTS FOR PRIVATE DRINKING
WATER WELL MITIGATION.
new text end

new text begin Subdivision 1. new text end

new text begin Reimbursement of mitigation costs. new text end

new text begin The commissioner shall reimburse
an eligible person, as defined in section 18E.02, subdivision 5, clause (4), from the
agricultural chemical response and reimbursement account for the reasonable and necessary
costs incurred by the eligible person to mitigate agricultural chemical contamination so that
the well water no longer exceeds the applicable health risk limit or limits.
new text end

new text begin Subd. 2. new text end

new text begin Reimbursement conditions. new text end

new text begin (a) On request by an eligible person, the board
must reimburse the eligible person for the reasonable and necessary mitigation costs incurred
by the eligible person as provided under subdivision 4 if the board determines:
new text end

new text begin (1) the eligible person pays the first $100 of the mitigation costs;
new text end

new text begin (2) the eligible person provides the board with a sworn affidavit and other convincing
evidence that the eligible person is unable to pay additional mitigation costs; and
new text end

new text begin (3) the eligible person submits an application for reimbursement to the board, along with
associated invoices, within three years of performance of the eligible mitigation work.
new text end

new text begin (b) An eligible person is not eligible for reimbursement and must refund amounts
reimbursed under this section if false statements or misrepresentations are made in the
affidavit or other evidence submitted to the board to show an inability to pay mitigation
costs.
new text end

new text begin (c) The board may reimburse the eligible person and one or more designees by multiparty
check.
new text end

new text begin Subd. 3. new text end

new text begin Ineligibility for reimbursement. new text end

new text begin Contamination due to pesticides that are
sanitizers or disinfectants that are exempt from surcharges are ineligible for reimbursement
under this section.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement payments; appropriation. new text end

new text begin (a) The board shall pay a person
that is eligible for reimbursement under subdivisions 1 and 2 from the agricultural chemical
response and reimbursement account for 80 percent of the total reasonable and necessary
mitigation costs greater than $100 and less than or equal to $20,000.
new text end

new text begin (b) A reimbursement payment must not be made until the board has determined that the
costs are reasonable and the payment is for the reimbursement of costs that were actually
incurred.
new text end

new text begin (c) The board may make periodic reimbursements as mitigation costs are incurred upon
receipt of sufficient invoices for the mitigation costs.
new text end

new text begin (d) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make reimbursement payments as directed by the board
under this subdivision.
new text end

new text begin Subd. 5. new text end

new text begin Reimbursement decisions; appeal. new text end

new text begin (a) The board may issue a letter of intent
on whether a person is eligible for reimbursement. The letter is not binding on the board.
new text end

new text begin (b) The board must issue an order granting or denying a request within 30 days following
the board meeting at which the board votes to grant or deny a request for reimbursement
under this section.
new text end

new text begin (c) After an initial request for reimbursement is made, notwithstanding subdivisions 1
to 4, the board may deny additional requests for reimbursement.
new text end

new text begin (d) A person may appeal the board's decision under paragraph (b) as a contested case
hearing under chapter 14. A request for a contested case hearing must be submitted in writing
to the board within 30 days of receipt of the notification of denial issued under paragraph
(b).
new text end

Sec. 4.

Minnesota Statutes 2018, section 18E.05, subdivision 1, is amended to read:

Subdivision 1.

Membership.

(a) The Agricultural Chemical Response Compensation
Board is created to consist of the commissioner of agriculture, the commissioner of
commerce, new text begin the commissioner of health, new text end and three private industry members consisting of:
one representative of agricultural chemical manufacturers and wholesalers; one representative
of farmers; and one representative of dealers who sell the agricultural chemicals at retail.
The governor shall appoint the private industry members. Appointment, vacancies, removal,
terms, and payment of compensation and expenses of members, but not expiration of the
board itself, are governed by section 15.0575.

(b) The commissioner of agriculture shall provide staff to support the activities of the
board.

(c) The board shall adopt rules regarding its practices and procedures, the application
form and procedures for determining eligibility for and the amount of reimbursement, and
procedures for investigation of claims.

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $500,000 in fiscal year 2020 is appropriated from the clean water fund to the
commissioner of health for private well mitigation and to upgrade substandard private wells
that are contaminated by contaminants that are not agricultural chemicals.
new text end