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                            CHAPTER 308-H.F.No. 2391 
                  An act relating to commerce; petroleum tank release 
                  cleanup; regulating reimbursement; providing 
                  enforcement authority to the commissioner of commerce; 
                  making various technical changes; amending Minnesota 
                  Statutes 1994, sections 115C.02, by adding a 
                  subdivision; 115C.03, subdivision 8; 115C.06; and 
                  115C.09, as amended; Minnesota Statutes 1995 
                  Supplement, sections 115C.02, subdivision 11a; 
                  115C.092, subdivision 1; 115C.10, subdivision 1; 
                  115C.11, subdivision 1; and 115C.12; proposing coding 
                  for new law in Minnesota Statutes, chapter 115C; 
                  repealing Minnesota Statutes 1994, section 115C.11, 
                  subdivisions 3 and 4; Minnesota Statutes 1995 
                  Supplement, section 115C.11, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 115C.02, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [APPLICANT.] "Applicant" means a person eligible 
        under section 115C.09 to receive reimbursement from the fund. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        115C.02, subdivision 11a, is amended to read: 
           Subd. 11a.  [PREREMOVAL SITE ASSESSMENT.] "Preremoval site 
        assessment" means actions defined in section 115C.092 which are 
        taken by a registered consultant or the consultant's 
        subcontractor prior to the removal of a petroleum storage tank 
        in order to determine whether a release has occurred in the area 
        immediately surrounding the tank. 
           Sec. 3.  Minnesota Statutes 1994, section 115C.03, 
        subdivision 8, is amended to read: 
           Subd. 8.  [CLASSIFICATION OF DATA.] Except as otherwise 
        provided in this subdivision, data obtained from a person under 
        subdivision 6 or 7 is public data as defined in section 13.02.  
        Upon certification by the subject of the data that the data 
        relates to sales figures, processes or methods of production 
        unique to that person, or information that would tend to 
        adversely affect the competitive position of that person, the 
        commissioner shall classify the data as private or nonpublic 
        data as defined in section 13.02.  Data classified as private or 
        nonpublic under this subdivision may be disclosed when relevant 
        in a proceeding under sections 115C.03 to 115C.10 this chapter. 
           Sec. 4.  Minnesota Statutes 1994, section 115C.06, is 
        amended to read: 
           115C.06 [EFFECT ON OTHER LAW.] 
           Subdivision 1.  [ACTIONS UNDER CHAPTER 115B.] Sections 
        115C.03 to 115C.10 do This chapter does not limit any actions 
        initiated by the agency under chapter 115B.  
           Subd. 2.  [DUTY TO NOTIFY AND TAKE ACTION FOR RELEASE.] 
        Sections 115C.03 to 115C.10 do This chapter does not limit a 
        person's duty to notify the agency and take action related to a 
        release as provided in section 115.061. 
           Sec. 5.  Minnesota Statutes 1994, section 115C.09, as 
        amended by Laws 1995, chapter 240, article 1, sections 4, 5, 6, 
        and 7, is amended to read: 
           115C.09 [REIMBURSEMENT TO RESPONSIBLE AND OTHER PERSONS.] 
           Subdivision 1.  [REIMBURSABLE COSTS.] (a) The board shall 
        provide partial reimbursement to eligible responsible 
        persons applicants for reimbursable costs incurred after June 4, 
        1987.  
           (b) The following costs are reimbursable for purposes of 
        this section chapter:  
           (1) corrective action costs incurred by the responsible 
        person applicant and documented in a form prescribed by the 
        board, except the costs related to the physical removal of a 
        tank; 
           (2) costs that the responsible person is legally obligated 
        to pay as damages to third parties for bodily injury, property 
        damage, or corrective action costs incurred by a third party 
        caused by a release where the responsible person's liability for 
        the costs has been established by a court order, consent decree, 
        or a court-approved stipulation of settlement approved before 
        May 11, 1994, for which the responsible party has assigned its 
        rights to reimbursement under this section to a third-party 
        claimant; and 
           (3) up to 180 days worth of interest costs, associated with 
        the financing of corrective action and incurred by the applicant 
        in a written financing contract signed by the applicant and 
        executed after May 25, 1991, associated with the financing of 
        corrective action.  Interest costs are not eligible for 
        reimbursement to the extent they exceed two percentage points 
        above the adjusted prime rate charged by banks, as defined in 
        section 270.75, subdivision 5, at the time the financing 
        contract was executed; and 
           (4) preremoval site assessment costs incurred by the 
        applicant and eligible for reimbursement under section 115C.092. 
           (c) A cost for liability to a third party is incurred by 
        the responsible person when an order or consent decree 
        establishing the liability court-approved settlement is entered 
        that sets forth the specific costs attributed to the liability.  
        Except as provided in this paragraph, reimbursement may not be 
        made for costs of liability to third parties until all eligible 
        corrective action costs have been reimbursed.  If a corrective 
        action is expected to continue in operation for more than one 
        year after it has been fully constructed or installed, the board 
        may estimate the future expense of completing the corrective 
        action and, after subtracting this estimate from the total 
        reimbursement available under subdivision 3, reimburse the costs 
        for liability to third parties.  The total reimbursement may not 
        exceed the limit set forth in subdivision 3. 
           Subd. 2.  [RESPONSIBLE PERSON ELIGIBILITY.] (a) A 
        responsible person who has incurred reimbursable costs after 
        June 4, 1987, in response to a release, may apply to the board 
        for partial reimbursement under subdivision 3 and rules adopted 
        by the board. 
           Subd. 2a.  [APPLICATION FOR REIMBURSEMENT.] (a) The board 
        may consider applications for reimbursement at the following 
        stages:  
           (1) after the commissioner approves corrective actions 
        related to soil excavation and treatment or after the 
        commissioner determines that further soil excavation and 
        treatment should not be done.  Remedial investigation costs such 
        as soil borings monitoring wells, and well searches are 
        reimbursable at this stage, but corrective action costs relating 
        to the construction and installation of a comprehensive 
        corrective action design system are not; and 
           (2) after the commissioner determines that the corrective 
        actions described in clause (1) have been fully constructed, 
        installed, or completed; 
           (3) after the commissioner approves a comprehensive plan 
        for corrective action that will adequately address the entire 
        release, including groundwater contamination if necessary; 
           (4) after the commissioner determines that the corrective 
        action necessary to adequately address the release has been 
        fully constructed or installed; and 
           (5) periodically afterward as the corrective action 
        continues operation, but no, for corrective action costs related 
        to the construction and installation of a comprehensive 
        corrective action design system.  An applicant shall not submit 
        an application for reimbursement more frequently than four times 
        per 12-month period unless the application is for more than 
        $2,000 in reimbursement. 
           (b) The commissioner shall review a plan, and provide an 
        approval or disapproval to the responsible person applicant and 
        the board, within 60 days in the case of a plan submitted under 
        paragraph (a), clause (1), and within 120 days in the case of a 
        plan submitted under paragraph (a), clause (3) (2), or the 
        commissioner shall explain to the board why additional time is 
        necessary.  The board shall consider a complete application 
        within 60 days of submission of the application under paragraph 
        (a), clauses clause (1) and (2), and within 120 days of 
        submission of the application under paragraph (a), clauses (3) 
        and (4) clause (2), or the board shall explain for the record 
        why additional time is necessary.  For purposes of the preceding 
        sentence, board consideration of an application is timely if it 
        occurs at the regularly scheduled meeting following the 
        deadline.  Board staff may review applications submitted to the 
        board simultaneous to at the same time the commissioner's 
        commissioner consideration of considers the appropriateness of 
        the corrective action, but the board may not act on the 
        application until after the commissioner's approval is received. 
           (c) A reimbursement may not be made unless the board 
        determines that the commissioner has determined that the 
        corrective action was appropriate in terms of protecting public 
        health, welfare, and the environment. 
           Subd. 3.  [REIMBURSEMENTS; SUBROGATION; APPROPRIATION.] (a) 
        The board shall reimburse a responsible person who is eligible 
        under subdivision 2 an eligible applicant from the fund in the 
        following amounts: 
           (1) 90 percent of the total reimbursable costs on the first 
        $250,000 and 75 percent on any remaining costs in excess of 
        $250,000 on a site; or 
           (2) for corrective actions at a residential site used as a 
        permanent residence at the time the release was discovered, 92.5 
        percent of the total reimbursable costs on the first $100,000 
        and 100 percent of any remaining costs in excess of $100,000. 
           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 fund under 
        this subdivision chapter until the board has determined that the 
        costs for which reimbursement is requested were actually 
        incurred and were reasonable. 
           (c) When an applicant has obtained responsible competitive 
        bids or proposals according to rules promulgated under this 
        chapter prior to June 1, 1995, the eligible costs for the tasks, 
        procedures, services, materials, equipment, and tests of the low 
        bid or proposal are presumed to be reasonable by the board, 
        unless the costs of the low bid or proposal are substantially in 
        excess of the average costs charged for similar tasks, 
        procedures, services, materials, equipment, and tests in the 
        same geographical area during the same time period. 
           (d) When an applicant has obtained a minimum of two 
        responsible competitive bids or proposals on forms prescribed by 
        the board and where the rules promulgated under this chapter 
        after June 1, 1995, designate maximum costs for specific tasks, 
        procedures, services, materials, equipment and tests, the 
        eligible costs of the low bid or proposal are deemed reasonable 
        if the costs are at or below the maximums set forth in the rules.
           (e) Costs incurred for change orders executed as prescribed 
        in rules promulgated under this chapter after June 1, 1995, are 
        presumed reasonable if the costs are at or below the maximums 
        set forth in the rules, unless the costs in the change order are 
        above those in the original bid or proposal or are 
        unsubstantiated and inconsistent with the process and standards 
        required by the rules. 
           (f) A reimbursement may not be made from the fund 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 applicant 
        has made reasonable efforts to collect from an insurer and 
        failed, the board shall reimburse the responsible person under 
        this subdivision applicant. 
           (g) If the board reimburses a responsible person an 
        applicant for costs for which the responsible person applicant 
        has petroleum tank leakage or spill insurance coverage, the 
        board is subrogated to the rights of the responsible person 
        applicant 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 an applicant of reimbursement 
        constitutes an assignment by the responsible person applicant to 
        the board of any rights of the responsible person applicant 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 applicant the 
        remedies provided in that subdivision, except where the board 
        has knowingly provided reimbursement because the responsible 
        person applicant was denied coverage by the insurer. 
           (h) Money in the fund is appropriated to the board to make 
        reimbursements under this section chapter.  A reimbursement to a 
        state agency must be credited to the appropriation account or 
        accounts from which the reimbursed costs were paid. 
           (i) The board may reduce the amount of reimbursement to be 
        made under this section chapter if it finds that the responsible 
        person applicant has not complied with a provision of this 
        chapter, a rule or order issued under this chapter, or one or 
        more of the following requirements: 
           (1) the agency was given notice of the release as required 
        by section 115.061; 
           (2) the responsible person applicant, to the extent 
        possible, fully cooperated with the agency in responding to the 
        release; and 
           (3) the state and federal rules and regulations applicable 
        to the condition or operation of the tank when the noncompliance 
        caused or failed to mitigate the release. 
           (j) The reimbursement may be reduced as much as 100 percent 
        for failure by the responsible person applicant to comply with 
        the requirements in paragraph (i), clauses (1) to (3).  In 
        determining the amount of the reimbursement reduction, the board 
        shall consider:  
           (1) the reasonable determination by the agency of the 
        environmental impact of the noncompliance; 
           (2) whether the noncompliance was negligent, knowing, or 
        willful; 
           (3) the deterrent effect of the award reduction on other 
        tank owners and operators; and 
           (4) the amount of reimbursement reduction recommended by 
        the commissioner. 
           (k) A person An applicant may assign the right to receive 
        reimbursement to each lender who advanced funds to pay the costs 
        of the corrective action or to each contractor or consultant who 
        provided corrective action services.  An assignment must be made 
        by filing with the board a document, in a form prescribed by the 
        board, indicating the identity of the responsible person 
        applicant, the identity of the assignee, the dollar amount of 
        the assignment, and the location of the corrective action.  An 
        assignment signed by the responsible person applicant is valid 
        unless terminated by filing a termination with the board, in a 
        form prescribed by the board, which must include the written 
        concurrence of the assignee.  The board shall maintain an index 
        of assignments filed under this paragraph.  The board shall pay 
        the reimbursement to the responsible person applicant and to one 
        or more assignees by a multiparty check.  The board has no 
        liability to a responsible person an applicant for a payment 
        under an assignment meeting the requirements of this paragraph. 
           Subd. 3a.  [ELIGIBILITY OF OTHER PERSONS.] Notwithstanding 
        the provisions of subdivisions 1 to 3, the board shall provide 
        full reimbursement to a person who has taken corrective action 
        if the board or commissioner of commerce determines that A 
        person who has taken corrective action may apply to the board 
        for reimbursement under subdivision 3 if the board determines 
        that: 
           (1) the person took the corrective action in response to a 
        request or order of the commissioner made under this chapter; 
           (2) the commissioner has determined that the person was not 
        a responsible person under section 115C.02 as defined in this 
        chapter; and 
           (3) the costs for which reimbursement is requested were 
        actually incurred and were reasonable the board has determined 
        the person was not a volunteer under subdivision 3b; and 
           (4) the person incurs reimbursable costs on or after June 
        4, 1987. 
           Notwithstanding subdivision 3, paragraph (a), a person 
        eligible for reimbursement under this subdivision shall receive 
        100 percent of total reimbursable costs up to $1,000,000. 
           Subd. 3b.  [VOLUNTEER ELIGIBILITY.] (a) Notwithstanding 
        subdivisions 1 to 3, A person may apply to the board for partial 
        reimbursement under subdivision 3 who if the board determines 
        that: 
           (1) the person is not a responsible person under section 
        115C.02 as defined in this chapter; 
           (2) holds legal or equitable title to the property where a 
        release occurred; and 
           (3) incurs reimbursable costs on or after May 23, 1989. 
           (b) A person eligible for reimbursement under this 
        subdivision must, to the maximum extent possible, comply with 
        the same conditions and requirements of reimbursement as those 
        imposed by this section on a responsible person. 
           (c) The board may reduce the reimbursement to a person 
        eligible under this subdivision if the person acquired legal or 
        equitable title to the property from a responsible person who 
        failed to comply with the provisions of subdivision 3, paragraph 
        (i), except that the board may not reduce the 
        reimbursement under this provision to a mortgagee who acquires 
        title to the property through foreclosure or receipt of a deed 
        in lieu of foreclosure. 
           Subd. 3c.  [RELEASE AT REFINERIES AND TANK FACILITIES NOT 
        ELIGIBLE FOR REIMBURSEMENT.] (a) Notwithstanding other 
        provisions of subdivisions 1 to 3b, a Reimbursement may not be 
        made under this section chapter for costs associated with a 
        release:  
           (1) from a tank located at a petroleum refinery; or 
           (2) from a tank facility, including a pipeline terminal, 
        with more than 1,000,000 gallons of total petroleum storage 
        capacity at the tank facility.  
           (b) Paragraph (a), clause (2), does not apply to 
        reimbursement for costs associated with a release from a tank 
        facility:  
           (1) owned or operated by a person engaged in the business 
        of mining iron ore or taconite; 
           (2) owned by a political subdivision, a housing and 
        redevelopment authority, an economic development authority, or a 
        port authority that acquired the tank facility prior to May 23, 
        1989; or 
           (3) owned by a person: 
           (i) who acquired the tank facility prior to May 23, 1989; 
           (ii) who did not use the tank facility for the bulk storage 
        of petroleum; and 
           (iii) who is not affiliated with the party who used the 
        tank facility for the bulk storage of petroleum. 
           Subd. 3d.  [POLITICAL SUBDIVISION ELIGIBILITY.] (a) 
        Notwithstanding the provisions of subdivisions 1 to 3, A 
        political subdivision that has taken corrective action may apply 
        to the board for partial reimbursement under subdivision 3 where 
        the political subdivision if the board determines that: 
           (1) the political subdivision is not a responsible person 
        under section 115C.02 as defined by this chapter; and 
           (2) is not a volunteer under subdivision 3b; and 
           (3) incurs reimbursable costs on or after April 8, 1992. 
           (b) A political subdivision eligible for reimbursement 
        under this subdivision may only apply for reimbursement if the 
        identified responsible person has failed to take a corrective 
        action ordered by the commissioner. 
           (c) A political subdivision eligible for reimbursement 
        under this subdivision must, to the maximum extent possible, 
        comply with the same conditions and requirements of 
        reimbursement as those imposed by this section on a responsible 
        person. 
           Subd. 4.  [REIMBURSEMENT DOES NOT AFFECT OTHER LIABILITY.] 
        The right to apply for reimbursement and the receipt of 
        reimbursement does not limit the liability of a responsible 
        person for damages or costs incurred by a person or the state as 
        a result of a release. 
           Subd. 5.  [RETURN OF REIMBURSEMENT.] (a) The board may 
        demand the complete or partial return of any reimbursement made 
        under this section chapter if the applicant for reimbursement:  
           (1) misrepresents or omits a fact relevant to a 
        determination made by the board or the commissioner under this 
        section chapter; 
           (2) fails to complete corrective action that the 
        commissioner determined at the time of the reimbursement to be 
        necessary to adequately address the release, unless the 
        reimbursement was made under subdivision 3a; 
           (3) fails to reimburse a person for agreed-to amounts for 
        corrective actions taken in response to a request by the 
        applicant; or 
           (4) has entered an agreement to settle or compromise any 
        portion of the incurred costs, in which case the amount returned 
        must be prorated in proportion to the amount of the settlement 
        or compromise. 
           (b) If a reimbursement under this subdivision chapter is 
        not returned upon demand by the board, the board may recover the 
        reimbursement, with administrative and legal expenses, in a 
        civil action in district court brought by the attorney general 
        against the applicant.  If the board's demand for return of the 
        reimbursement is based on willful actions of the applicant, the 
        applicant shall also forfeit and pay to the state a civil 
        penalty, in an amount to be determined by the court, of not more 
        than the full amount of the reimbursement. 
           Subd. 6.  [FRAUD.] If a person, with intent to defraud, 
        issues an invoice or other demand for payment with knowledge 
        that it is false in whole or in part, and with knowledge that it 
        is being submitted to the board for reimbursement:  
           (1) that person shall be considered to have presented a 
        false claim to a public body under section 609.465; and 
           (2) the board may demand that the person return any money 
        received as a result of a reimbursement made on the basis of the 
        false invoice or other demand for payment.  If the money is not 
        returned upon demand by the board, the board may recover the 
        money, with administrative and legal expenses, in a civil action 
        in district court brought by the attorney general against the 
        person.  The person shall also forfeit and pay to the state a 
        civil penalty, in an amount to be determined by the court, of 
        not more than the full amount of the money received by the 
        person on the basis of the false invoice or other demand for 
        payment.  
           Subd. 7.  [DUTY TO PROVIDE INFORMATION.] (a) A person who 
        submits an application to the board for reimbursement, or who 
        has issued invoices or other demands for payment which are the 
        basis of an application, shall furnish to the board copies of 
        any financial records which the board requests and which are 
        relevant to determining the validity of the costs listed in the 
        application, or shall make the financial records reasonably 
        available to the board for inspection and auditing.  The board 
        may obtain access to information required to be made available 
        under this subdivision chapter in the manner provided in section 
        115C.03, subdivision 7. 
           (b) After reimbursement has been granted, an agreement to 
        settle or compromise any portion of the incurred costs must be 
        reported to the board by the parties to the agreement. 
           Subd. 8.  [LIMITATION ON REIMBURSEMENT OBLIGATION.] The 
        amount of the state's obligation to make reimbursement under 
        this chapter is limited to the amount available.  
        Notwithstanding any other provisions of this chapter, there 
        shall be no obligation to the general fund to make a 
        reimbursement if there are not sufficient funds in the petroleum 
        tank fund. 
           Subd. 9.  [INSUFFICIENT FUNDS.] The board may not approve 
        an application for reimbursement if there are insufficient funds 
        available to pay the reimbursement. 
           Subd. 10.  [DELEGATION OF BOARD'S POWERS.] The board may 
        delegate to the commissioner of commerce its powers and duties 
        under this section chapter. 
           Sec. 6.  Minnesota Statutes 1995 Supplement, section 
        115C.092, subdivision 1, is amended to read: 
           Subdivision 1.  [PREREMOVAL SITE ASSESSMENT; 
        REIMBURSEMENT.] (a) Preremoval site assessment costs which are 
        in compliance with the requirements of this chapter and with 
        rules promulgated under this chapter shall be reimbursable under 
        section 115C.09, subdivision 3.  The applicant shall obtain 
        written competitive proposals for the preremoval site assessment 
        on a form prescribed by the board utilizing, as appropriate, 
        tasks and costs established in rules promulgated under this 
        chapter governing the initial site assessment. 
           (b) If contamination is found at the site, the board shall 
        reimburse an applicant upon submission of the applicant's first 
        application for reimbursement under section 115C.09, subdivision 
        2.  If no contamination is found at the site, the board shall 
        reimburse the applicant upon provision by the applicant of 
        documentation that the tank or tanks have been removed from the 
        site. 
           (c) Notwithstanding any provision in this subdivision to 
        the contrary, the board shall not reimburse for a preremoval 
        site assessment which is done for the purposes of facilitating a 
        property transfer.  The board shall presume that a preremoval 
        site assessment is done for the purposes of facilitating a 
        property transfer if the property is transferred within three 
        months of incurring preremoval site assessment costs. 
           Sec. 7.  Minnesota Statutes 1995 Supplement, section 
        115C.10, subdivision 1, is amended to read: 
           Subdivision 1.  [PAYMENT FROM FUND; SUBROGATION; 
        APPROPRIATION.] (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 fund.  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 fund have been met, and that an adequate amount exists 
        in the fund 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 there is 
        insurance coverage, the board is subrogated to the agency's 
        rights with respect to the responsible person and the 
        responsible person's insurer insurance, to the extent of the 
        board's payment of costs for which the responsible person has 
        insurance coverage exists, 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, the applicant, or the 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 fund is appropriated to the board for the 
        purpose of this subdivision.  
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        115C.11, subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION.] (a) All consultants and 
        contractors who perform corrective action services must register 
        with the board.  In order to register, consultants must meet and 
        demonstrate compliance with the following criteria: 
           (1) provide a signed statement to the board verifying 
        agreement to abide by this chapter and the rules adopted under 
        it and to include a signed statement with each claim that all 
        costs claimed by the consultant are a true and accurate account 
        of services performed; 
           (2) provide a signed statement that the consultant shall 
        make available for inspection any records requested by the board 
        for field or financial audits under the scope of this chapter; 
           (3) certify knowledge of the requirements of this chapter 
        and the rules adopted under it; 
           (4) obtain and maintain professional liability coverage, 
        including pollution impairment liability; and 
           (5) agree to submit to the board a certificate or 
        certificates verifying the existence of the required insurance 
        coverage. 
           (b) The board must maintain a list of all registered 
        consultants and a list of all registered contractors. 
           (c) All corrective action services must be performed by 
        registered consultants and contractors. 
           (d) Reimbursement for corrective action services performed 
        by an unregistered consultant or contractor is subject to 
        reduction under section 115C.09, subdivision 3, paragraph (i). 
           (e) Corrective action services performed by a consultant or 
        contractor prior to being removed from the registration list may 
        be reimbursed without reduction by the board. 
           (f) If the information in an application for registration 
        becomes inaccurate or incomplete in any material respect, the 
        registered consultant or contractor must promptly file a 
        corrected application with the board. 
           (g) Registration is effective on the date 30 days after a 
        complete application is received by the board.  The board may 
        reimburse without reduction the cost of work performed by an 
        unregistered contractor if the contractor performed the work 
        within 30 60 days of the effective date of registration. 
           (h) Registration under this section remains in force until 
        voluntarily terminated by the registrant, or until suspended or 
        revoked by the commissioner of commerce.  All registrants must 
        comply with registration criteria under this section. 
           Sec. 9.  [115C.111] [CONSULTANT AND CONTRACTOR SANCTIONS; 
        ACTIONS BASED ON CONDUCT OCCURRING BEFORE EFFECTIVE DATE OF 
        SECTION.] 
           Subdivision 1.  [APPLICATION.] This section applies to 
        administrative actions based on conduct that occurred before the 
        effective date of this section. 
           Subd. 2.  [AUTHORITY.] The commissioner of commerce may by 
        order censure, suspend, or revoke a registrant and require 
        payment of all costs of proceedings resulting in an action 
        instituted under this subdivision and impose a civil penalty of 
        not more than $10,000 if the commissioner of commerce finds:  
        (i) that the order is in the public interest; and (ii) that the 
        registrant or, in the case of a registrant that is not a natural 
        person, any partner, officer, or director, any person occupying 
        a similar status or performing similar functions, or any person 
        directly or indirectly controlling the registrant: 
           (1) has engaged in conduct that departs from or fails to 
        conform to the minimal standards of acceptable and prevailing 
        engineering, hydrogeological, or other technical practices 
        within the reasonable control of the consultant or contractor; 
           (2) has participated in a kickback scheme prohibited under 
        section 115C.045; 
           (3) has engaged in conduct likely to deceive or defraud, or 
        demonstrated a willful or careless disregard for public health 
        or the environment; 
           (4) has committed fraud, embezzlement, theft, forgery, 
        bribery, falsified or destroyed records, made false statements, 
        received stolen property, made false claims, or obstructed 
        justice; 
           (5) is the subject of an order revoking, suspending, 
        restricting, limiting, or imposing other disciplinary action 
        against the contractor's or consultant's license or 
        certification in another state or jurisdiction; or 
           (6) if the person is a consultant, has failed to comply 
        with any of the ongoing obligations for registration as a 
        consultant in section 115C.11, subdivision 1. 
           Subd. 3.  [AMOUNT OF CIVIL PENALTY.] The civil penalty that 
        may be imposed under subdivision 2 shall be in an amount that 
        the commissioner of commerce determines will deprive the 
        consultant or contractor of any economic advantage gained by 
        reason of the consultant's or contractor's conduct or to 
        reimburse the board for the cost of the investigation and 
        proceeding. 
           Sec. 10.  [115C.112] [CONSULTANT AND CONTRACTOR SANCTIONS; 
        ACTIONS BASED ON CONDUCT OCCURRING ON AND AFTER EFFECTIVE DATE 
        OF SECTION.] 
           The commissioner of commerce may by order deny a 
        registration, censure, suspend, or revoke a registrant and 
        require payment of all costs of proceedings resulting in an 
        action instituted under this section and impose a civil penalty 
        of not more than $10,000 if the commissioner of commerce finds:  
        (i) that the order is in the public interest; and (ii) that the 
        registrant or, in the case of a registrant that is not a natural 
        person, any partner, officer, or director, any person occupying 
        a similar status or performing similar functions, or any person 
        directly or indirectly controlling the registrant: 
           (1) has engaged in conduct that departs from or fails to 
        conform to the minimal standards of acceptable and prevailing 
        engineering, hydrogeological, or other technical practices 
        within the reasonable control of the consultant or contractor; 
           (2) has participated in a kickback scheme prohibited under 
        section 115C.045; 
           (3) has engaged in conduct likely to deceive or defraud, or 
        demonstrating a willful or careless disregard for public health 
        or the environment; 
           (4) has committed fraud, embezzlement, theft, forgery, 
        bribery, falsified or destroyed records, made false statements, 
        received stolen property, made false claims, or obstructed 
        justice; 
           (5) is the subject of an order revoking, suspending, 
        restricting, limiting, or imposing other disciplinary action 
        against the contractor's or consultant's license or 
        certification in another state or jurisdiction; 
           (6) if the person is a consultant, has failed to comply 
        with any of the ongoing obligations for registration as a 
        consultant in section 115C.11, subdivision 1; 
           (7) has failed to comply with any provision or any rule or 
        order under this chapter or chapter 45; 
           (8) has engaged in anticompetitive activity; 
           (9) has performed corrective action without having an 
        accurate and complete registration on file with the board or has 
        allowed another to perform corrective action when that party 
        does not have a complete registration on file with the board; 
           (10) has been shown to be incompetent, untrustworthy, or 
        financially irresponsible; or 
           (11) has made or assisted another in making any material 
        misrepresentation or omission to the board, commissioner, 
        commissioner of commerce, or upon reasonable request has 
        withheld or concealed information from, or refused to furnish 
        information to, the board, commissioner, or commissioner of 
        commerce. 
           Sec. 11.  [115C.113] [ORDERS.] 
           The commissioner of commerce may issue an order requiring a 
        registrant or applicant for registration to show cause why the 
        registration should not be revoked or suspended, the registrant 
        censured, the application denied, or other sanction imposed 
        under section 115C.111 or 115C.112.  The order must be 
        calculated to give reasonable notice of the time and place for 
        hearing on the matter, and must state the reasons for the entry 
        of the order.  The commissioner of commerce may by order 
        summarily suspend a registration pending final determination of 
        an order to show cause.  A hearing on the merits must be held 
        within 30 days of the issuance of the order of summary 
        suspension.  All hearings must be conducted under chapter 14.  
        After the hearing, the commissioner of commerce shall enter an 
        order disposing of the matter as the facts require.  If the 
        registrant or applicant for registration fails to appear at a 
        hearing after having been duly notified of it, the person shall 
        be considered in default, and the proceeding may be determined 
        against the registrant or applicant for registration upon 
        consideration of the order to show cause, the allegations of 
        which may be considered to be true. 
           Sec. 12.  Minnesota Statutes 1995 Supplement, section 
        115C.12, is amended to read: 
           115C.12 [APPEAL OF REIMBURSEMENT DETERMINATION.] 
           Subdivision 1.  [APPEAL FROM DETERMINATION OF COMMISSIONER 
        OF COMMERCE.] An applicant for reimbursement may appeal to the 
        board a reimbursement determination made by the commissioner of 
        commerce under authority delegated by the board according to 
        section 115C.09, subdivision 10, by submitting a written notice 
        setting forth the specific basis for the appeal.  The 
        commissioner of commerce shall send written notification of the 
        reimbursement determination by first class United States mail to 
        the applicant for reimbursement at the applicant's last known 
        address.  The applicant for reimbursement must file written 
        notice with the board of an appeal of a reimbursement 
        determination made by the commissioner of commerce within 60 
        days of the date that the commissioner of commerce sends written 
        notice to the applicant of the reimbursement determination.  The 
        board shall consider the appeal within 90 days of receipt of the 
        written notice of appeal by the applicant for 
        reimbursement.  The written notice must set forth the specific 
        basis for the appeal. 
           Subd. 2.  [APPEAL FROM DECISION OF THE BOARD.] (a) An 
        applicant for reimbursement may appeal a reimbursement 
        determination of the board as a contested case under chapter 
        14.  An applicant for reimbursement must provide written 
        notification to the board of a request for a contested case, 
        setting forth the specific basis for the appeal, within 30 days 
        of the date that the board makes a reimbursement determination. 
           (b) This subdivision applies to reimbursement 
        determinations made by the board as a result of an appeal to the 
        board under subdivision 1 and reimbursement determinations made 
        by the board when the board has not delegated its authority to 
        make reimbursement determinations. 
           (c) An appeal of a reimbursement determination may only be 
        made by an applicant as defined by this chapter. 
           Subd. 3.  [CONTESTED CASE; FINAL DECISION.] The final 
        decision in a contested case requested by an applicant under 
        subdivision 2 shall be made by the commissioner of commerce. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1994, section 115C.11, subdivisions 3 
        and 4; Minnesota Statutes 1995 Supplement, section 115C.11, 
        subdivision 2, are repealed. 
           Sec. 14.  [EFFECTIVE DATES.] 
           Sections 1 to 7 and 12 are effective the day after final 
        enactment and apply to applications for reimbursement pending on 
        or filed on or after that date.  Section 8 is effective the day 
        after final enactment and applies to all current and future 
        registrants.  Sections 9 to 11 are effective the day after final 
        enactment and apply to disciplinary actions pending on or 
        commenced on or after that date.  Section 13 is effective the 
        day following final enactment. 
           Presented to the governor March 12, 1996 
           Signed by the governor March 13, 1996, 2:33 p.m.