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

                            CHAPTER 153-S.F.No. 1539 
                  An act relating to the environment; regulating limited 
                  well/boring contractors and the installation of 
                  vertical heat exchangers; amending Minnesota Statutes 
                  1998, sections 103I.005, subdivisions 12, 13, and 20; 
                  103I.101, subdivisions 2 and 5; 103I.105; 103I.205, 
                  subdivisions 2 and 4; 103I.301, subdivisions 2 and 3; 
                  103I.501; 103I.531; and 103I.641, subdivisions 1 and 3.
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 103I.005, 
        subdivision 12, is amended to read: 
           Subd. 12.  [LIMITED WELL WELL/BORING CONTRACTOR.] "Limited 
        well well/boring contractor" means a person with a limited well 
        well/boring contractor's license issued by the commissioner.  
           Sec. 2.  Minnesota Statutes 1998, section 103I.005, 
        subdivision 13, is amended to read: 
           Subd. 13.  [LIMITED WELL WELL/BORING SEALING CONTRACTOR.] 
        "Limited well well/boring sealing contractor" means a person 
        with a limited well well/boring sealing contractor's license 
        issued by the commissioner. 
           Sec. 3.  Minnesota Statutes 1998, section 103I.005, 
        subdivision 20, is amended to read: 
           Subd. 20.  [VERTICAL HEAT EXCHANGER.] "Vertical heat 
        exchanger" means an earth-coupled heating or cooling device 
        consisting of a sealed closed-loop piping system installed 
        vertically in the ground to transfer heat to or from the 
        surrounding earth with no discharge.  
           Sec. 4.  Minnesota Statutes 1998, section 103I.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] The commissioner shall:  
           (1) regulate the drilling, construction, modification, 
        repair, and sealing of wells and borings; 
           (2) examine and license well contractors, persons 
        constructing, repairing, and sealing vertical heat exchangers, 
        persons modifying or repairing well casings, well screens, or 
        well diameters; constructing, repairing, and sealing 
        unconventional wells such as drive point wells or dug wells; 
        constructing, repairing, and sealing dewatering wells; sealing 
        wells; installing well pumps or pumping equipment; and 
        excavating or drilling holes for the installation of elevator 
        shafts or hydraulic cylinders; 
           (3) register and examine monitoring well contractors; 
           (4) license explorers engaged in exploratory boring and 
        examine individuals who supervise or oversee exploratory boring; 
           (5) after consultation with the commissioner of natural 
        resources and the pollution control agency, establish standards 
        for the design, location, construction, repair, and sealing of 
        wells, elevator shafts, and borings within the state; and 
           (6) issue permits for wells, groundwater thermal devices, 
        vertical heat exchangers, and excavation for holes to install 
        elevator shafts or hydraulic cylinders.  
           Sec. 5.  Minnesota Statutes 1998, section 103I.101, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMMISSIONER TO ADOPT RULES.] The commissioner 
        shall adopt rules including:  
           (1) issuance of licenses for:  
           (i) qualified well contractors, persons modifying or 
        repairing well casings, well screens, or well diameters; 
           (ii) persons constructing, repairing, and sealing 
        unconventional wells such as drive points or dug wells; 
           (iii) persons constructing, repairing, and sealing 
        dewatering wells; 
           (iv) persons sealing wells; and 
           (v) persons installing well pumps or pumping equipment and 
        excavating holes for installing elevator shafts or hydraulic 
        cylinders; and 
           (vi) persons constructing, repairing, and sealing vertical 
        heat exchangers; 
           (2) issuance of registration for monitoring well 
        contractors; 
           (3) establishment of conditions for examination and review 
        of applications for license and registration; 
           (4) establishment of conditions for revocation and 
        suspension of license and registration; 
           (5) establishment of minimum standards for design, 
        location, construction, repair, and sealing of wells to 
        implement the purpose and intent of this chapter; 
           (6) establishment of a system for reporting on wells and 
        borings drilled and sealed; 
           (7) establishment of standards for the construction, 
        maintenance, sealing, and water quality monitoring of wells in 
        areas of known or suspected contamination; 
           (8) establishment of wellhead protection measures for wells 
        serving public water supplies; 
           (9) establishment of procedures to coordinate collection of 
        well data with other state and local governmental agencies; 
           (10) establishment of criteria and procedures for 
        submission of well logs, formation samples or well cuttings, 
        water samples, or other special information required for and 
        water resource mapping; and 
           (11) establishment of minimum standards for design, 
        location, construction, maintenance, repair, sealing, safety, 
        and resource conservation related to borings, including 
        exploratory borings as defined in section 103I.005, subdivision 
        9. 
           Until the commissioner adopts rules under this chapter to 
        replace rules relating to wells and borings that were adopted 
        under chapter 156A, the rules adopted under chapter 156A shall 
        remain in effect. 
           Sec. 6.  Minnesota Statutes 1998, section 103I.105, is 
        amended to read: 
           103I.105 [ADVISORY COUNCIL ON WELLS AND BORINGS.] 
           (a) The advisory council on wells and borings is 
        established as an advisory council to the commissioner.  The 
        advisory council shall consist of 17 18 voting members.  Of the 
        17 18 voting members: 
           (1) one member must be from the department of health, 
        appointed by the commissioner of health; 
           (2) one member must be from the department of natural 
        resources, appointed by the commissioner of natural resources; 
           (3) one member must be a member of the Minnesota geological 
        survey of the University of Minnesota, appointed by the 
        director; 
           (4) one member must be a licensed exploratory borer; 
           (5) one member must be a licensed elevator shaft 
        contractor; 
           (6) two members must be members of the public who are not 
        connected with the business of exploratory boring or the well 
        drilling industry; 
           (7) one member must be from the pollution control agency, 
        appointed by the commissioner of the pollution control agency; 
           (8) one member must be from the department of 
        transportation, appointed by the commissioner of transportation; 
           (9) one member from the board of water and soil resources 
        appointed by its chair; 
           (10) one member must be a monitoring well contractor; and 
           (11) six members must be residents of this state appointed 
        by the commissioner, who are actively engaged in the well 
        drilling industry, with not more than two from the seven-county 
        metropolitan area and at least four from other areas of the 
        state who represent different geographical regions; and 
           (12) one member must be a licensed vertical heat exchanger 
        contractor or be certified by the International Ground Source 
        Heat Pump Association and appointed by the commissioner. 
           (b) An appointee of the well drilling industry may not 
        serve more than two consecutive terms.  
           (c) The appointees to the advisory council from the well 
        drilling industry must:  
           (1) have been residents of this state for at least three 
        years before appointment; and 
           (2) have at least five years' experience in the well 
        drilling business.  
           (d) The terms of the appointed members and the compensation 
        and removal of all members are governed by section 15.059, 
        except section 15.059, subdivision 5, relating to expiration of 
        the advisory council does not apply.  
           Sec. 7.  Minnesota Statutes 1998, section 103I.205, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EMERGENCY PERMIT AND NOTIFICATION EXEMPTIONS.] 
        The commissioner may adopt rules that modify the procedures for 
        filing a well notification or well permit if conditions occur 
        that:  
           (1) endanger the public health and welfare or cause a need 
        to protect the groundwater; or 
           (2) require the monitoring well contractor, limited 
        well well/boring contractor, or well contractor to begin 
        constructing a well before obtaining a permit or notification.  
           Sec. 8.  Minnesota Statutes 1998, section 103I.205, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LICENSE REQUIRED.] (a) Except as provided in 
        paragraph (b), (c), or (d), section 103I.401, subdivision 2, or 
        section 103I.601, subdivision 2, a person may not drill, 
        construct, repair, or seal a well or boring unless the person 
        has a well contractor's license in possession.  
           (b) A person may construct a monitoring well if the person: 
           (1) is a professional engineer registered under sections 
        326.02 to 326.15 in the branches of civil or geological 
        engineering; 
           (2) is a hydrologist or hydrogeologist certified by the 
        American Institute of Hydrology; 
           (3) is a professional engineer registered with the board of 
        architecture, engineering, land surveying, landscape 
        architecture, and interior design; 
           (4) is a geologist certified by the American Institute of 
        Professional Geologists; or 
           (5) meets the qualifications established by the 
        commissioner in rule. 
           A person must register with the commissioner as a 
        monitoring well contractor on forms provided by the commissioner.
           (c) A person may do the following work with a limited 
        well well/boring contractor's license in possession.  A separate 
        license is required for each of the five six activities:  
           (1) installing or repairing well screens or pitless units 
        or pitless adaptors and well casings from the pitless adaptor or 
        pitless unit to the upper termination of the well casing; 
           (2) constructing, repairing, and sealing drive point wells 
        or dug wells; 
           (3) installing well pumps or pumping equipment; 
           (4) sealing wells; or 
           (5) constructing, repairing, or sealing dewatering wells; 
        or 
           (6) constructing, repairing, or sealing vertical heat 
        exchangers.  
           (d) Notwithstanding other provisions of this chapter 
        requiring a license or registration, a license or registration 
        is not required for a person who complies with the other 
        provisions of this chapter if the person is:  
           (1) an individual who constructs a well on land that is 
        owned or leased by the individual and is used by the individual 
        for farming or agricultural purposes or as the individual's 
        place of abode; or 
           (2) an individual who performs labor or services for a 
        contractor licensed or registered under the provisions of this 
        chapter in connection with the construction, sealing, or repair 
        of a well or boring at the direction and under the personal 
        supervision of a contractor licensed or registered under the 
        provisions of this chapter.  
           Sec. 9.  Minnesota Statutes 1998, section 103I.301, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MONITORING WELLS.] The owner of the property 
        where a monitoring well is located must have the monitoring well 
        sealed when the well is no longer in use.  The owner must have a 
        well contractor, limited well well/boring sealing contractor, or 
        a monitoring well contractor seal the monitoring well.  
           Sec. 10.  Minnesota Statutes 1998, section 103I.301, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DEWATERING WELLS.] (a) The owner of the property 
        where a dewatering well is located must have the dewatering well 
        sealed when the dewatering well is no longer in use.  
           (b) A well contractor, limited well well/boring sealing 
        contractor, or limited dewatering well contractor shall seal the 
        dewatering well. 
           Sec. 11.  Minnesota Statutes 1998, section 103I.501, is 
        amended to read: 
           103I.501 [LICENSING AND REGULATION OF WELLS AND BORINGS.] 
           (a) The commissioner shall regulate and license:  
           (1) drilling, constructing, and repair of wells; 
           (2) sealing of wells; 
           (3) installing of well pumps and pumping equipment; 
           (4) excavating, drilling, and sealing of holes for the 
        installation of elevator shafts and hydraulic cylinders; and 
           (5) construction and sealing of environmental bore holes; 
        and 
           (6) construction, repair, and sealing of vertical heat 
        exchangers.  
           (b) The commissioner shall examine and license well 
        contractors, limited well well/boring contractors, and elevator 
        shaft contractors, and examine and register monitoring well 
        contractors.  
           (c) The commissioner shall license explorers engaged in 
        exploratory boring and shall examine persons who supervise or 
        oversee exploratory boring.  
           Sec. 12.  Minnesota Statutes 1998, section 103I.531, is 
        amended to read: 
           103I.531 [LIMITED WELL WELL/BORING CONTRACTOR'S LICENSE.] 
           Subdivision 1.  [APPLICATION.] (a) A person must file an 
        application and an application fee with the commissioner to 
        apply for a limited well well/boring contractor's license.  
           (b) The application must state the applicant's 
        qualifications for the license, the equipment the applicant will 
        use in the contracting, and other information required by the 
        commissioner.  The application must be on forms prescribed by 
        the commissioner.  
           Subd. 2.  [APPLICATION FEE.] The application fee for a 
        limited well well/boring contractor's license is $50.  The 
        commissioner may not act on an application until the application 
        fee is paid.  
           Subd. 3.  [EXAMINATION.] After the commissioner has 
        approved the application, the applicant must take an examination 
        given by the commissioner.  
           Subd. 4.  [ISSUANCE OF LICENSE.] If an applicant meets the 
        experience requirements established in rule, passes the 
        examination as determined by the commissioner, submits the bond 
        under subdivision 5, and pays the license fee under subdivision 
        6, the commissioner shall issue a limited well well/boring 
        contractor's license.  If the other conditions of this section 
        are satisfied, the commissioner may not withhold issuance of a 
        dewatering limited license based on the applicant's lack of 
        prior experience under a licensed well contractor. 
           Subd. 5.  [BOND.] (a) As a condition of being issued a 
        limited well well/boring contractor's license for constructing, 
        repairing, and sealing drive point wells or dug wells, sealing 
        wells or borings, or constructing, repairing, and sealing 
        dewatering wells, or constructing, repairing, and sealing 
        vertical heat exchangers, the applicant must submit a corporate 
        surety bond for $10,000 approved by the commissioner.  As a 
        condition of being issued a limited well well/boring 
        contractor's license for installing or repairing well screens or 
        pitless units or pitless adaptors and well casings from the 
        pitless adaptor or pitless unit to the upper termination of the 
        well casing, or installing well pumps or pumping equipment, the 
        applicant must submit a corporate surety bond for $2,000 
        approved by the commissioner.  The bonds required in this 
        paragraph must be conditioned to pay the state on unlawful 
        performance of work regulated by this chapter in this state.  
        The bonds are in lieu of other license bonds required by a 
        political subdivision of the state.  
           (b) From proceeds of a bond required in paragraph (a), the 
        commissioner may compensate persons injured or suffering 
        financial loss because of a failure of the applicant to properly 
        perform work or duties. 
           Subd. 6.  [LICENSE FEE.] The fee for a limited well 
        well/boring contractor's license is $50.  
           Subd. 7.  [VALIDITY.] A limited well well/boring 
        contractor's license is valid until the date prescribed in the 
        license by the commissioner.  
           Subd. 8.  [RENEWAL.] (a) A person must file an application 
        and a renewal application fee to renew the limited well 
        well/boring contractor's license by the date stated in the 
        license.  
           (b) The renewal application fee shall be set by the 
        commissioner under section 16A.1285.  
           (c) The renewal application must include information that 
        the applicant has met continuing education requirements 
        established by the commissioner by rule.  
           (d) At the time of the renewal, the commissioner must have 
        on file all properly completed well sealing reports, well 
        permits, vertical heat exchanger permits, and well notifications 
        for work conducted by the licensee since the last license 
        renewal. 
           Subd. 9.  [INCOMPLETE OR LATE RENEWAL.] If a licensee fails 
        to submit all information required for renewal in subdivision 8 
        or submits the application and information after the required 
        renewal date: 
           (1) the licensee must include an additional late fee set by 
        the commissioner under section 16A.1285; and 
           (2) the licensee may not conduct activities authorized by 
        the limited well well/boring contractor's license until the 
        renewal application, renewal application fee, and late fee, and 
        all other information required in subdivision 8 are submitted. 
           Sec. 13.  Minnesota Statutes 1998, section 103I.641, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] A person may not drill or 
        construct an excavation used to install a vertical heat 
        exchanger unless the person is a limited well/boring contractor 
        licensed for constructing, repairing, and sealing vertical heat 
        exchangers or a well contractor.  
           Sec. 14.  Minnesota Statutes 1998, section 103I.641, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PERMIT REQUIRED.] (a) A vertical heat exchanger 
        may not be installed without first obtaining a permit for the 
        vertical heat exchanger from the commissioner.  A limited 
        well/boring contractor licensed for constructing, repairing, and 
        sealing vertical heat exchangers or a well contractor must apply 
        for the permit on forms provided by the commissioner and must 
        pay the permit fee.  
           (b) As a condition of the permit, the owner of the property 
        where the vertical heat exchanger is to be installed must agree 
        to allow inspection by the commissioner during regular working 
        hours of department of health inspectors. 
           Sec. 15.  [EFFECTIVE DATE.] 
           Sections 13 and 14 are effective August 1, 2000. 
           Presented to the governor May 10, 1999 
           Signed by the governor May 13, 1999, 1:17 p.m.