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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1991 

                        CHAPTER 294-H.F.No. 181 
           An act relating to the environment; adding 
          reimbursement requirements for the petroleum tank 
          release cleanup account; providing for insurance 
          subrogation rights; amending Minnesota Statutes 1990, 
          sections 115C.04, subdivision 3; 115C.09, subdivision 
          3; and 115C.10, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1990, section 115C.04, 
subdivision 3, is amended to read: 
    Subd. 3.  [AGENCY COST RECOVERY.] Reasonable and necessary 
expenses incurred by the agency in taking a corrective action, 
including costs of investigating a release, administrative and 
legal expenses, and reimbursement costs described in subdivision 
1, paragraph (b), may be recovered in a civil action in district 
court brought by the attorney general against a responsible 
person.  The agency's certification of expenses is prima facie 
evidence that the expenses are reasonable and necessary.  If the 
responsible person has petroleum tank leakage or spill insurance 
coverage that insures against the liability provided in this 
section, the agency is subrogated to the rights of the 
responsible person with respect to that insurance coverage, to 
the extent of the expenses incurred by the agency and described 
in this subdivision.  The agency may request the attorney 
general to bring an action in district court against the insurer 
to enforce this subrogation right.  Expenses that are recovered 
under this section must be deposited in the account.  
    Sec. 2.  Minnesota Statutes 1990, section 115C.09, 
subdivision 3, is amended to read: 
    Subd. 3.  [REIMBURSEMENT.] (a) The board shall reimburse a 
responsible person who is eligible under subdivision 2 from the 
account for 90 percent of the portion of the total reimbursable 
costs or $1,000,000, whichever is less.  Not more than 
$1,000,000 may be reimbursed for costs associated with a single 
release, regardless of the number of persons eligible for 
reimbursement, and not more than $2,000,000 may be reimbursed 
for costs associated with a single tank facility. 
    (b) A reimbursement may not be made from the account under 
this subdivision until the board has determined that the costs 
for which reimbursement is requested were actually incurred and 
were reasonable. 
    (c) A reimbursement may not be made from the account under 
this subdivision in response to either an initial or 
supplemental application for costs incurred after June 4, 1987, 
that are payable under an applicable insurance policy, except 
that if the board finds that the responsible person has made 
reasonable efforts to collect from an insurer and failed, the 
board shall reimburse the responsible person under this 
subdivision. 
    (d) If the board reimburses a responsible person for costs 
for which the responsible person has petroleum tank leakage or 
spill insurance coverage, the board is subrogated to the rights 
of the responsible person with respect to that insurance 
coverage, to the extent of the reimbursement by the board.  The 
board may request the attorney general to bring an action in 
district court against the insurer to enforce the board's 
subrogation rights.  Acceptance by a responsible person of 
reimbursement constitutes an assignment by the responsible 
person to the board of any rights of the responsible person with 
respect to any insurance coverage applicable to the costs that 
are reimbursed.  Notwithstanding this paragraph, the board may 
instead request a return of the reimbursement under subdivision 
5 and may employ against the responsible party the remedies 
provided in that subdivision, except where the board has 
knowingly provided reimbursement because the responsible person 
was denied coverage by the insurer. 
    (e) Money in the account is appropriated to the board to 
make reimbursements under this section.  A reimbursement to a 
state agency must be credited to the appropriation account or 
accounts from which the reimbursed costs were paid. 
    Sec. 3.  Minnesota Statutes 1990, section 115C.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PAYMENT FROM THE ACCOUNT.] (a) If the cost 
of authorized actions under section 115C.03 exceeds the amount 
appropriated to the agency for the actions and amounts awarded 
to the agency from the federal government, the agency may apply 
to the board for money to pay for the actions from the account.  
The board shall pay the agency the cost of the proposed actions 
under section 115C.03 if the board finds that the conditions for 
the agency to be paid from the account have been met, and that 
an adequate amount exists in the account to pay for the 
corrective action.  If the board pays the agency for the cost of 
authorized actions for which a responsible person has petroleum 
tank leakage or spill insurance coverage, the board is 
subrogated to the agency's rights with respect to the 
responsible person and the responsible person's insurer, to the 
extent of the board's payment of costs for which the responsible 
person has insurance coverage, subject to the limitations on an 
agency cost recovery action set forth in section 115C.04, 
subdivision 3.  The board may request the attorney general to 
bring an action in district court against the responsible person 
or that person's insurer to enforce the board's subrogation 
rights.  Acceptance of a payment from the board by the agency 
constitutes an assignment to the board of the subrogation rights 
specified in this subdivision. 
    (b) Money in the account is appropriated to the board for 
the purpose of this subdivision.  
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1, 2, and 3 are effective the day following final 
enactment and apply to applications pending on or filed after 
that date. 
    Presented to the governor May 29, 1991 
    Signed by the governor June 1, 1991, 4:08 p.m.