18E.04 REIMBURSEMENT OR PAYMENT OF RESPONSE COSTS.
Subdivision 1. Reimbursement of response costs.
The commissioner shall reimburse
an eligible person from the agricultural chemical response and reimbursement account for the
reasonable and necessary costs incurred by the eligible person in taking corrective action as
provided in subdivision 4, if the board determines:
(1) the eligible person takes all reasonable action necessary to minimize and abate an
incident and the action is subsequently approved by the commissioner;
(2) the eligible person complies with any reasonable requests for corrective action issued
to the eligible person by the commissioner;
(3) the eligible person complied with corrective action orders if issued to the eligible person
by the commissioner; and
(4) the incident was reported as required in chapters 18B, 18C, and 18D.
Subd. 2. Payment of corrective action costs.
(a) On request by an eligible person, the
board may pay the eligible person for the reasonable and necessary cash disbursements for
corrective action costs incurred by the eligible person as provided under subdivision 4 if the
(1) the eligible person pays the first $1,000 of the corrective action costs;
(2) the eligible person provides the board with a sworn affidavit and other convincing
evidence that the eligible person is unable to pay additional corrective action costs;
(3) the eligible person continues to assume responsibility for carrying out the requirements
of corrective action orders issued to the eligible person or that are in effect;
(4) the incident was reported as required in chapters 18B, 18C, and 18D; and
(5) the eligible person submits an application for payment or reimbursement to the
department within three years of (i) incurring eligible corrective action costs, or (ii) approval of a
corrective action design, whichever is later.
(b) The eligible person must submit an application for payment or reimbursement of eligible
cost incurred prior to July 1, 2001, no later than June 1, 2004.
(c) An eligible person is not eligible for payment or reimbursement and must refund amounts
paid or reimbursed by the board if false statements or misrepresentations are made in the affidavit
or other evidence submitted to the commissioner to show an inability to pay corrective action
(d) The board may pay the eligible person and one or more designees by multiparty check.
Subd. 2a. Ineligibility for reimbursement or payment.
Pesticides that are sanitizers and
disinfectants and are exempt from surcharges are ineligible for reimbursement or payment under
Subd. 3. Partial reimbursement.
(a) If the unencumbered balance of the account drops
below $2,000,000, the board may only pay or reimburse an eligible person up to $100,000 within
the same fiscal year.
(b) If the board determines that an incident was caused by a violation of chapter 18B,
18C, or 18D, the board may reimburse or pay a portion of the corrective action costs of the
eligible person based on the culpability of the eligible person and the percentage of the costs not
attributable to the violation.
Subd. 4. Reimbursement payments.
(a) The board shall pay a person that is eligible for
reimbursement or payment under subdivisions 1, 2, and 3 from the agricultural chemical response
and reimbursement account for 80 percent of the total reasonable and necessary corrective action
costs greater than $1,000 and less than or equal to $350,000.
(b) A reimbursement or payment may not be made until the board has determined that the
costs are reasonable and are for a reimbursement of the costs that were actually incurred.
(c) The board may make periodic payments or reimbursements as corrective action costs are
incurred upon receipt of invoices for the corrective action costs.
(d) Money in the agricultural chemical response and reimbursement account is appropriated
to the commissioner to make payments and reimbursements directed by the board under this
(e) The board may not make reimbursement greater than the maximum allowed under
paragraph (a) for all incidents on a single site which:
(1) were not reported at the time of release but were discovered and reported after July 1,
(2) may have occurred prior to July 1, 1989, as determined by the commissioner.
(f) The board may only reimburse an eligible person for separate incidents within a single
site if the commissioner determines that each incident is completely separate and distinct in
respect of location within the single site or time of occurrence.
(g) Except for an emergency incident, the board may not reimburse or pay for more than 60
percent of the corrective action costs of an eligible person or for an incident within five years of a
previous incident at a single site resulting from a site recontamination.
(h) The deduction of $1,000 and 20 percent from the $350,000 remuneration may be waived
by the board if the incident took place on or after August 18, 2007, and was caused by flooding
associated with Presidential Declaration of Major Disaster DR-1717.
Subd. 5. Reimbursement or payment decisions.
(a) The board may issue a letter of intent on
whether a person is eligible for payment or reimbursement. The letter is not binding on the board.
(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 or for
payment under subdivision 1, 2, or 3.
(c) After an initial request is made for reimbursement, notwithstanding subdivisions 1 to
4, the board may deny additional requests for reimbursement.
(d) An eligible person adversely affected by the board's disapproval of a reimbursement or
payment application under paragraph (b) or a partial reimbursement under subdivision 3 may,
within 60 days of receipt of the board's order, request a hearing of determination before the board.
A request for a hearing must be made in writing and specify the grounds for the request.
(e) Within 30 days of the receipt of a request for hearing under paragraph (d), the eligible
person must be notified either as to the date of the hearing for determination or of the denial of
the request for a hearing. A hearing must be scheduled immediately following the next regularly
scheduled board meeting as determined by the notification letter.
(f) If a dispute related to the disapproval of a reimbursement is not resolved after a hearing
under paragraph (e) or if a request is denied, the eligible person may appeal the decision 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 the date of the hearing or within 30 days of the receipt of
notification of denial of the hearing request under paragraph (e).
Subd. 6. Subrogation.
(a) If a person other than a responsible party is paid or reimbursed
from the response reimbursement account as a condition of payment or reimbursement, the state
is subrogated to the rights of action the person paid or reimbursed has against the responsible
party. The commissioner shall collect the amounts from the responsible party and on request of
the commissioner on behalf of the board the attorney general shall bring an action to enforce
(b) Amounts collected under this subdivision must be credited to the agricultural chemical
response and reimbursement account.
History: 1989 c 326 art 8 s 4; 1990 c 597 s 14; 1991 c 355 s 3,4; 1993 c 367 s 24; 1995 c
182 s 2,3; 2000 c 477 s 22; 2000 c 488 art 3 s 10; 1Sp2001 c 2 s 38-40; 2002 c 373 s 13-15;
1Sp2007 c 2 art 3 s 5