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1989 Minnesota Session Laws

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                         Laws of Minnesota 1989 

                        CHAPTER 326-S.F.No. 262 
           An act relating to protection of groundwater; 
          protecting sensitive areas; promoting and requiring 
          certain best management practices; providing financial 
          assistance for certain groundwater protection 
          activities; authorizing local government groundwater 
          and resource protection programs; establishing a 
          legislative water commission; providing for 
          determination of water research needs; developing a 
          water education curriculum; regulating wells, borings, 
          and underground drillings and uses; regulating water 
          conservation, water appropriations, and setting fees; 
          establishing regulations, enforcing violations, and 
          establishing civil and criminal penalties for 
          violations relating to pesticide, fertilizer, soil 
          amendment, and plant amendment manufacture, storage, 
          sale, use, and misuse; providing a mechanism to aid 
          cleanup and response to incidents relating to 
          agricultural chemicals; providing a task force 
          relating to sustainable agriculture; providing 
          penalties; appropriating money; amending Minnesota 
          Statutes 1988, sections 18B.01, subdivisions 5, 12, 
          15, 19, 21, 26, 30, and by adding subdivisions; 
          18B.04; 18B.07, subdivisions 2, 3, 4, and 6; 18B.08, 
          subdivisions 1, 3, and 4; 18B.26, subdivisions 1, 3, 
          5, and by adding a subdivision; 18B.31, subdivisions 
          1, 3, and 5; 18B.32, subdivision 2; 18B.33, 
          subdivisions 1, 3, and 7; 18B.34, subdivisions 1, 2, 
          and 5; 18B.36, subdivisions 1 and 2; 18B.37, 
          subdivisions 1, 2, 3, and 4; 40.42, by adding a 
          subdivision; 40.43, subdivisions 2 and 6; 43A.08, 
          subdivision 1; 105.41, subdivisions 1, 1a, 1b, 5, and 
          by adding a subdivision; 105.418; 110B.04, subdivision 
          6; 110B.35, subdivision 3; 115B.20; 116C.41, 
          subdivision 1, and by adding a subdivision; and 
          473.877, by adding a subdivision; proposing coding for 
          new law in Minnesota Statutes, chapters 3; 17; 18B; 
          and 40; proposing coding for new law as Minnesota 
          Statutes, chapters 18C; 18D; 18E; 103A; 103B; 103H; 
          and 103I; repealing Minnesota Statutes 1988, sections 
          17.711 to 17.73; 18A.49; 18B.15; 18B.16; 18B.18; 
          18B.19; 18B.20; 18B.21; 18B.22; 18B.23; 18B.25; 84.57 
          to 84.621; 105.51, subdivision 3; and 156A.01 to 
          156A.11. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1 

                              CHAPTER 103H 

                         GROUNDWATER PROTECTION 
    Section 1.  [103H.001] [DEGRADATION PREVENTION GOAL.] 
    It is the goal of the state that groundwater be maintained 
in its natural condition, free from any degradation caused by 
human activities.  It is recognized that for some human 
activities this degradation prevention goal cannot be 
practicably achieved.  However, where prevention is practicable, 
it is intended that it be achieved.  Where it is not currently 
practicable, the development of methods and technology that will 
make prevention practicable is encouraged. 
    Sec. 2.  [103H.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  
    Subd. 2.  [AGRICULTURAL CHEMICAL.] "Agricultural chemical" 
means a pesticide, fertilizer, plant amendment, or soil 
amendment.  
    Subd. 3.  [HEALTH RISK LIMITS.] "Health risk limits" means 
a concentration of a substance or chemical adopted by rule of 
the commissioner of health that is a potential drinking water 
contaminant because of a systemic or carcinogenic toxicological 
result from consumption.  
    Subd. 4.  [BEST MANAGEMENT PRACTICES.] "Best management 
practices" means practicable voluntary practices that are 
capable of preventing and minimizing degradation of groundwater, 
considering economic factors, availability, technical 
feasibility, implementability, effectiveness, and environmental 
effects.  Best management practices apply to schedules of 
activities; design and operation standards; restrictions of 
practices; maintenance procedures; management plans; practices 
to prevent site releases, spillage, or leaks; application and 
use of chemicals; drainage from raw material storage; operating 
procedures; treatment requirements; and other activities causing 
groundwater degradation. 
    Subd. 5.  [COMMON DETECTION.] "Common detection" means 
detection of a pollutant that is not due to misuse or unusual or 
unique circumstances, but is likely to be the result of normal 
use of a product or a practice. 
    Subd. 6.  [DEGRADATION.] "Degradation" means changing 
groundwater from its natural condition by human activities.  
    Subd. 7.  [FERTILIZER.] "Fertilizer" has the meaning given 
in article 6, section 2, subdivision 11.  
     Subd. 8.  [GROUNDWATER.] "Groundwater" means groundwater as 
defined in section 115.01, subdivision 21. 
    Subd. 9.  [PESTICIDE.] "Pesticide" has the meaning given in 
section 18B.01, subdivision 18.  
    Subd. 10.  [PLANT AMENDMENT.] "Plant amendment" has the 
meaning given in article 6, section 2, subdivision 25.  
    Subd. 11.  [POLLUTANT.] "Pollutant" means a chemical or 
substance for which a health risk limit has been adopted.  
    Subd. 12.  [POLLUTION.] "Pollution" means degradation of 
groundwater by a pollutant.  
    Subd. 13.  [SENSITIVE AREA.] "Sensitive area" means a 
geographic area defined by natural features where there is a 
significant risk of groundwater degradation from activities 
conducted at or near the land surface. 
    Subd. 14.  [SOIL AMENDMENT.] "Soil amendment" has the 
meaning given in article 6, section 2, subdivision 34. 
    Subd. 15.  [WATER RESOURCE PROTECTION REQUIREMENTS.] "Water 
resource protection requirements" means requirements adopted by 
rule for one or more pollutants intended to prevent and minimize 
pollution of groundwater.  Water resource protection 
requirements include design criteria, standards, operation and 
maintenance procedures, practices to prevent releases, spills, 
leaks, and incidents, restrictions on use and practices, and 
treatment requirements.  

                     PROTECTION OF SENSITIVE AREAS 
    Sec. 3.  [103H.101] [PROTECTION OF SENSITIVE AREAS.] 
    Subdivision 1.  [CRITERIA FOR DETERMINATION OF SENSITIVE 
AREAS.] The commissioner of natural resources in consultation 
with the Minnesota geological survey, soil and water 
conservation districts, local water planning authorities, and 
other interested parties shall develop specific criteria for 
identifying sensitive groundwater areas and adopt the criteria 
by rule.  
    Subd. 2.  [IDENTIFICATION OF SENSITIVE AREAS.] The 
commissioner of natural resources shall, in consultation with 
the Minnesota geological survey, identify the location of 
sensitive areas by mapping and other appropriate methods after 
consulting the Minnesota geological survey, soil and water 
conservation districts, and local water planning authorities.  
     Subd. 3.  [NOTIFICATION OF LOCATION OF SENSITIVE 
AREAS.] The commissioner of natural resources shall:  
     (1) notify political subdivisions with planning or zoning 
authority and provide maps and other materials that show where 
sensitive areas are located and indicate the type of risk of 
groundwater degradation that may occur from activities at or 
near the surface; and 
     (2) publish notification of sensitive areas in a newspaper 
of general circulation in the county where the sensitive areas 
are located.  
    Subd. 4.  [INFORMATION GATHERING.] The commissioner of 
natural resources shall coordinate the collection of state and 
local information to identify sensitive areas.  Information must 
be automated on or accessible to systems developed at the land 
management information center of the state planning agency. 
      Subd. 5.  [STATE PROTECTION OF SENSITIVE AREAS.] (a) The 
commissioner of agriculture for pollution resulting from 
agricultural chemicals and practices and the pollution control 
agency for other pollutants must consider the type of risk 
identified under subdivision 3 when adopting best management 
practices, water resource protection plans, and water resource 
protection requirements to prevent and minimize groundwater 
degradation in sensitive areas. 
     (b) To prevent and minimize groundwater degradation, state 
agencies must consider the type of risk identified under 
subdivision 3 when undertaking an activity within a sensitive 
area. 
     Subd. 6.  [ACTIONS BY REGULATING AUTHORITIES.] Upon 
adoption of a comprehensive local water plan as defined in 
chapter 110B or a water management plan under chapter 473, a 
regulating authority must take into account the plan and any 
geological assessments referenced in the plan when taking 
appropriate actions in sensitive areas.  
    Subd. 7.  [STATE AGENCIES.] Each state agency that has a 
program affecting activities that may cause or contribute to 
groundwater pollution shall identify and develop best management 
practices to ensure that the program is consistent with and is 
effective in achieving the goal of section 1.  For those 
activities which may cause or contribute to pollution of 
groundwater, but are not directly regulated by the state, best 
management practices shall be promoted through education, 
support programs, incentives, and other mechanisms. 
    Sec. 4.  [103H.105] [CONSERVATION EASEMENTS TO PROTECT 
SENSITIVE AREAS.] 
    (a) Agricultural land within a sensitive area identified in 
section 3, subdivision 2, or by the board of water and soil 
resources and land in or immediately surrounding a sinkhole is 
marginal agricultural land for purposes of section 40.43, 
subdivision 2, and is eligible for the conservation reserve 
program under section 40.43.  
    (b) Notwithstanding section 40.43, subdivision 2, clauses 
(2) and (5), and subdivision 4, the board of water and soil 
resources may authorize acquisition of hillside easements that 
restrict hillside pasturing or grazing of livestock.  
     Sec. 5.  [103H.111] [LIABILITY AFTER PROTECTION OF 
SENSITIVE AREA.] 
    (a) A landowner within a sensitive area, identified under 
section 3, has a complete defense to liability for degradation 
of groundwater caused by surface water from the sensitive area 
recharging groundwater if: 
    (1) the landowner's portion of the sensitive area is 
subject to a plan adopted by the soil and water conservation 
district to protect the groundwater from degradation through 
surface water recharge; 
    (2) the projects and practices required by the plan have 
been implemented and have been certified as having been 
implemented by the soil and water conservation district; 
    (3) the projects and practices required by the plan are 
maintained according to the plan; and 
    (4) the landowner has not allowed unlawful practices on the 
property that disrupt the projects and practices required by the 
plan. 
    (b) The soil and water conservation district's plan must 
include appropriate best management practices and water resource 
protection requirements. 
    Sec. 6.  [103H.151] [BEST MANAGEMENT PRACTICES.] 
    Subdivision 1.  [DEVELOPMENT BY POLLUTION CONTROL 
AGENCY.] Except as provided in subdivision 2 for agricultural 
chemicals and practices, the pollution control agency in 
consultation with local water planning authorities shall develop 
best management practices for the prevention of groundwater 
degradation for specific activity categories.  The pollution 
control agency shall contact and solicit comments from affected 
persons and businesses in developing the best management 
practices.  The pollution control agency must publish notice and 
also solicit comments and recommendations from state agencies 
and local governments affected by or regulating the activities.  
    Subd. 2.  [AGRICULTURAL CHEMICAL BEST MANAGEMENT 
PRACTICES.] The commissioner of agriculture in consultation with 
local water planning authorities shall develop best management 
practices for agricultural chemicals and practices.  The 
commissioner shall give public notice and contact and solicit 
comment from affected persons and businesses interested in 
developing the best management practices.  
    Subd. 3.  [EDUCATION AND PROMOTION.] The commissioners of 
the pollution control agency and agriculture, in conjunction 
with the board of water and soil resources, soil and water 
conservation districts, and the Minnesota extension service, 
must promote best management practices and provide education 
about how the use of best management practices will prevent, 
minimize, reduce, and eliminate the source of groundwater 
degradation.  The promotion and education shall include 
demonstration projects.  

                     GROUNDWATER QUALITY MONITORING 
    Sec. 7.  [103H.175] [GROUNDWATER QUALITY MONITORING.] 
    Subdivision 1.  [MONITORING RESULTS TO BE SUBMITTED TO THE 
ENVIRONMENTAL QUALITY BOARD.] The results of monitoring 
groundwater quality by state agencies and political subdivisions 
must be submitted to the state planning agency.  
    Subd. 2.  [COMPUTERIZED DATA BASE.] The state planning 
agency shall maintain a computerized data base of the results of 
groundwater quality monitoring in a manner that is accessible to 
the pollution control agency, department of agriculture, 
department of health, and department of natural resources.  The 
state planning agency shall assess the quality and reliability 
of the data and organize the data in a usable format. 

                           HEALTH RISK LIMITS 
    Sec. 8.  [103H.201] [HEALTH RISK LIMITS.] 
    Subdivision 1.  [PROCEDURE.] (a) If groundwater quality 
monitoring results show that there is a degradation of 
groundwater, the commissioner of health may promulgate health 
risk limits under subdivision 2 for substances degrading the 
groundwater.  
    (b) Health risk limits shall be determined by two methods 
depending on their toxicological end point.  
    (c) For systemic toxicants that are not carcinogens, the 
adopted health risk limits shall be derived using United States 
Environmental Protection Agency risk assessment methods using a 
reference dose, a drinking water equivalent, an uncertainty 
factor, and a factor for relative source contamination, which in 
general will measure an estimate of daily exposure to the human 
population, including sensitive subgroups, that is unlikely to 
result in deleterious effects during long-term exposure.  
    (d) For toxicants that are known or probable carcinogens, 
the adopted health risk limits shall be derived from a 
quantitative estimate of the chemical's carcinogenic potency 
published by the United States Environmental Protection Agency's 
carcinogen assessment group.  
    Subd. 2.  [ADOPTION.] (a) Health risk limits shall be 
adopted by rule.  
     (b) If the commissioner determines that emergency 
conditions exist and the public health and welfare require the 
health risk limits to be adopted as soon as possible, the 
commissioner shall promulgate the adopted health risk limits 
notwithstanding chapter 14 but the adopted health risk limits 
adopted under this paragraph are only effective for one year.  
    Subd. 3.  [REVIEW AND REVISION.] (a) The commissioner shall 
review each adopted health risk limit at least every four years. 
    (b) The commissioner may revise health risk limits under 
subdivision 2.  
    Subd. 4.  [ADOPTION OF EXISTING RECOMMENDED ALLOWABLE 
LIMITS.] (a) Notwithstanding and in lieu of subdivision 2, the 
commissioner may adopt recommended allowable limits established 
by the commissioner on or before May 1, 1989, as health risk 
limits under this subdivision.  Before a recommended allowable 
limit is adopted as an adopted health risk limit under this 
subdivision, the commissioner shall: 
    (1) publish in the State Register and disseminate through 
the Minnesota extension service and through soil and water 
conservation districts notice of intent to adopt a recommended 
allowable limit as an adopted health risk limit for specific 
substances and shall solicit information on the health impacts 
of the substance; 
     (2) publish the recommended allowable limit in the State 
Register and disseminate through the Minnesota extension service 
and through soil and water conservation districts allowing 60 
days for public comment; and 
    (3) publish the recommended allowable limit in the State 
Register and, at the same time, make available a summary of the 
public comments received and the commissioner's responses to the 
comments. 
    (b) A recommended allowable limit adopted by the 
commissioner as an adopted health risk limit under this 
subdivision may be challenged in the manner provided in sections 
14.44 and 14.45.  
    (c) After July 1, 1991, and before September 1, 1991, 25 or 
more persons may submit a written request for a public hearing 
as provided under section 14.25 for any health risk limits as 
adopted under this subdivision. 

              EVALUATION AND COMMON DETECTION OF POLLUTION 
    Sec. 9.  [103H.251] [EVALUATION OF DETECTION OF 
POLLUTANTS.] 
    Subdivision 1.  [METHODS.] (a) The commissioner of 
agriculture for pollution resulting from agricultural chemicals 
and practices and the pollution control agency for other 
pollutants shall evaluate the detection of pollutants in 
groundwater of the state.  Evaluation of the detection may 
include collection technique, sampling handling technique, 
laboratory practices, other quality control practices, 
climatological conditions, and potential pollutant sources.  
     (b) If conditions indicate a likelihood of the detection of 
the pollutant or pollutant breakdown product to be a common 
detection, the commissioner of agriculture or the pollution 
control agency must begin development of best management 
practices and continue to monitor for the pollutant or pollutant 
breakdown products. 
    Subd. 2.  [ANALYSIS OF POLLUTION TREND.] The commissioner 
of agriculture for pollution resulting from agricultural 
chemicals and practices and the pollution control agency for 
other pollutants shall develop and implement groundwater 
monitoring and hydrogeologic evaluation following pollution 
detection to evaluate pollution frequency and concentration 
trend.  Assessment of the site-specific and pollutant-specific 
conditions and the likelihood of common detection must include 
applicable monitoring, pollutant use information, physical and 
chemical properties of the pollutant, hydrogeologic information, 
and review of information and data from other local, state, or 
federal monitoring data bases. 
    Sec. 10.  [103H.275] [MANAGEMENT OF POLLUTANTS WHERE 
GROUNDWATER IS POLLUTED.] 
    Subdivision 1.  [AREAS WHERE GROUNDWATER POLLUTION IS 
DETECTED.] (a) If groundwater pollution is detected, a state 
agency or political subdivision that regulates an activity 
causing or potentially causing a contribution to the pollution 
identified shall promote implementation of best management 
practices to prevent or minimize the source of pollution to the 
extent practicable.  
    (b) The pollution control agency, or for agricultural 
chemicals and practices, the commissioner of agriculture may 
adopt water source protection requirements under subdivision 2 
that are consistent with the goal of section 1 and are 
commensurate with the groundwater pollution if the 
implementation of best management practices have proven to be 
ineffective. 
    (c) The water resources protection requirements must be: 
    (1) designed to prevent and minimize the pollution to the 
extent practicable; 
    (2) designed to prevent the pollution from exceeding the 
health risk limits; and 
    (3) submitted to the legislative water commission. 
    Subd. 2.  [ADOPTION OF WATER RESOURCE PROTECTION 
REQUIREMENTS.] (a) The pollution control agency, or for 
agricultural chemicals and practices, the commissioner of 
agriculture shall adopt by rule water resource protection 
requirements that are consistent with the goal of section 1 to 
prevent and minimize the pollution to the extent practicable.  
The proposed rule must be submitted to the legislative water 
commission for review before adoption.  The water resource 
protection requirements must be based on the use and 
effectiveness of best management practices, the product use and 
practices contributing to the pollution detected, economic 
factors, availability, technical feasibility, implementability, 
and effectiveness.  The water resource protection requirements 
may be adopted for one or more pollutants or a similar class of 
pollutants.  A water resource protection requirement may not be 
adopted before January 1, 1991. 
    (b) Before the water resource protection requirements are 
adopted, the pollution control agency or the commissioner of 
agriculture for agricultural chemicals and practices must notify 
affected persons and businesses for comments and input in 
developing the water resource protection requirements.  
    (c) Unless the water resource protection requirements are 
to cover the entire state, the water resource protection 
requirements are only effective in areas designated by the 
commissioner of the pollution control agency by order or for 
agricultural chemicals and practices in areas designated by the 
commissioner of agriculture by order.  The procedures for 
issuing the order and the effective date of the order must be 
included in the water resource protection requirements rule.  
    (d) The water resource protection requirements rule must 
contain procedures for notice to be given to persons affected by 
the rule and order of the commissioner.  The procedures may 
include notice by publication, personal service, and other 
appropriate methods to inform affected persons of the rule and 
commissioner's order.  
    (e) A person who is subject to a water resource protection 
requirement may apply to the pollution control agency, or for 
agricultural chemicals and practices the commissioner of 
agriculture, and suggest an alternative protection requirement.  
Within 60 days after receipt, the agency or commissioner of 
agriculture must approve or deny the request.  If the pollution 
control agency or commissioner of agriculture approves the 
request, an order must be issued approving the alternative 
protection requirement.  
    (f) A person who violates a water resource protection 
requirement relating to pollutants, other than agricultural 
chemicals, is subject to the penalties for violating a rule 
adopted under chapter 116.  A person who violates a water 
resource protection requirement relating to agricultural 
chemicals and practices is subject to the penalties for 
violating a rule adopted under chapter 18D. 
    Sec. 11.  [103H.280] [AUTHORITY IS SUPPLEMENTAL.] 
    The authority of the pollution control agency and the 
commissioner of agriculture in this article is supplemental to 
other authority given by law and does not restrict other 
authorities. 
    Sec. 12.  [NITROGEN COMPOUNDS IN GROUNDWATER STUDY.] 
    The pollution control agency and the department of 
agriculture, in consultation with the board of water and soil 
resources and the Minnesota experiment station, shall prepare a 
report on nitrate and related nitrogen compounds in 
groundwater.  The report shall consider recommendations made by 
local government in comprehensive local water plans and shall 
incorporate the findings of the nitrogen fertilizer task force 
and utilize data developed by the Minnesota experiment station.  
This report shall be submitted to the legislative water 
commission by July 1, 1991.  The commission shall provide 
recommendations to the legislature by November 15, 1991, based 
upon this report. 
    The report shall be based on existing information and shall 
examine areas in which improvements in the state and local 
response to this problem are feasible.  The report shall address 
the following issues:  the determination of trends in nitrogen 
pollution; causative factors; the development of recommended 
best management practices to reduce and minimize the pollution; 
regulatory controls; the feasibility of proposed treatment and 
corrective or mitigative measures; and the economic impacts of 
proposed corrective measures. 

                               ARTICLE 2 

               WATER RESEARCH, INFORMATION, AND EDUCATION 
    Section 1.  [3.887] [LEGISLATIVE WATER COMMISSION.] 
    Subdivision 1.  [ESTABLISHMENT.] A legislative water 
commission is established.  
    Subd. 2.  [MEMBERSHIP.] (a) The legislative water 
commission shall consist of ten members appointed as follows: 
    (1) five members of the the senate with minority 
representation proportionate to minority membership in the 
senate to be appointed by the subcommittee on committees and to 
serve until their successors are appointed; and 
    (2) five members of the house of representatives with 
minority representation proportionate to minority membership in 
the house to be appointed by the speaker of the house and to 
serve until their successors are appointed.  
    (b) Vacancies shall be filled in the same manner as the 
original positions. 
    (c) Vacancies occurring on the commission do not affect the 
authority of the remaining members of the legislative water 
commission to carry out the function of the commission.  
    Subd. 3.  [SUBCOMMITTEES.] Two subcommittees shall be 
established in the legislative water commission, one on 
groundwater and one on surface water. 
    Subd. 4.  [STAFF.] The legislative water commission may 
appoint and fix the compensation of additional legal and other 
personnel and consultants necessary to enable the commission to 
carry out its function, or to contract for services to supply 
necessary data subject to the approval of the legislative 
coordinating commission under section 3.305.  State employees 
subject to civil service laws and regulations who may be 
assigned to the commission shall retain civil service status 
without interruption or loss of status or privilege.  
    Subd. 5.  [POWERS AND DUTIES.] (a) The legislative water 
commission shall review water policy reports and recommendations 
of the environmental quality board, the biennial report of the 
board of water and soil resources, and other water-related 
reports as may be required by law or the legislature.  
    (b) The commission may conduct public hearings and 
otherwise secure data and comments.  
    (c) The commission shall make recommendations as it deems 
proper to assist the legislature in formulating legislation.  
    (d) Data or information compiled by the legislative water 
commission or its subcommittees shall be made available to the 
Minnesota future resources commission and standing and interim 
committees of the legislature on request of the chair of the 
respective commission or committee. 
    Subd. 6.  [STUDY.] The legislative water commission shall 
study the recommendations of the environmental quality board for 
the management and protection of water resources in the state, 
and shall report its findings to the Minnesota future resources 
commission and the legislature by November 15, 1991, on the 
state's water management needs for the year 2000. 
    Subd. 7.  [EFFECTS OF SUSTAINABLE AGRICULTURE.] The 
legislative water commission shall study the implementation and 
effects of sustainable agriculture in the state including 
current and potential practices and their effect on water and 
groundwater. 
    Subd. 8.  [REPEALER.] This section is repealed effective 
June 30, 1995. 
    Sec. 2.  [17.114] [SUSTAINABLE AGRICULTURE.] 
    Subdivision 1.  [PURPOSE.] To assure the viability of 
agriculture in this state, the commissioner shall investigate, 
demonstrate, report on, and make recommendations on the current 
and future sustainability of agriculture in this state.  
Sustainable agriculture has the meaning given to it in Laws 
1987, chapter 396, article 12, section 6.  
    Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
following definitions apply:  
    (a) "Sustainable agriculture" represents the best aspects 
of traditional and modern agriculture by using a fundamental 
understanding of nature as well as the latest scientific 
advances to create integrated, self-reliant, resource conserving 
practices that enhance the enrichment of the environment and 
provide short- and long-term productive and economical 
agriculture.  
    (b) "Integrated pest management" means use of a combination 
of approaches, incorporating the judicious application of 
ecological principles, management techniques, cultural and 
biological controls, and chemical methods, to keep pests below 
levels where they do economic damage.  
    Subd. 3.  [DUTIES.] (a) The commissioner shall:  
    (1) establish a clearinghouse and provide information, 
appropriate educational opportunities and other assistance to 
individuals, producers, and groups about sustainable 
agricultural techniques, practices, and opportunities; 
    (2) survey producers and support services and organizations 
to determine information and research needs in the area of 
sustainable agricultural practices; 
    (3) demonstrate the on-farm applicability of sustainable 
agriculture practices to conditions in this state; 
    (4) coordinate the efforts of state agencies regarding 
activities relating to sustainable agriculture; 
    (5) direct the programs of the department so as to work 
toward the sustainability of agriculture in this state; 
    (6) inform agencies of how state or federal programs could 
utilize and support sustainable agriculture practices; 
    (7) work closely with farmers, the University of Minnesota, 
and other appropriate organizations to identify opportunities 
and needs as well as assure coordination and avoid duplication 
of state agency efforts regarding research, teaching, and 
extension work relating to sustainable agriculture; and 
    (8) report to the legislature every odd-numbered year.  
    (b) The report under paragraph (a), clause (8), must 
include:  
    (1) the presentation and analysis of findings regarding the 
current status and trends regarding the economic condition of 
producers; the status of soil and water resources utilized by 
production agriculture; the magnitude of off-farm inputs used; 
and the amount of nonrenewable resources used by Minnesota 
farmers; 
    (2) a description of current state or federal programs 
directed toward sustainable agriculture including significant 
results and experiences of those programs; 
    (3) a description of specific actions the department of 
agriculture is taking in the area of sustainable agriculture; 
    (4) a description of current and future research needs at 
all levels in the area of sustainable agriculture; and 
    (5) suggestions for changes in existing programs or 
policies or enactment of new programs or policies that will 
affect farm profitability, maintain soil and water quality, 
reduce input costs, or lessen dependence upon nonrenewable 
resources.  
     Subd. 4.  [INTEGRATED PEST MANAGEMENT.] (a) The state shall 
promote and facilitate the use of integrated pest management 
through education, technical or financial assistance, 
information and research.  
    (b) The commissioner shall coordinate the development of a 
state approach to the promotion and use of integrated pest 
management, which shall include delineation of the 
responsibilities of the state, public post-secondary 
institutions, Minnesota extension service, local units of 
government, and the private sector; establishment of information 
exchange and integration; procedures for identifying research 
needs and reviewing and preparing informational materials; 
procedures for factoring integrated pest management into state 
laws, rules, and uses of pesticides; and identification of 
barriers to adoption.  
    (c) The commissioner shall report to the governor and 
legislature by November 15, 1990, and on a biennial basis 
thereafter. 
    Sec. 3.  [40.31] [ENVIRONMENTAL AGRICULTURALIST EDUCATION 
PROGRAM.] 
    Subdivision 1.  [PROGRAM.] An environmental agricultural 
program is established: 
    (1) to work with agricultural producers; 
    (2) to advise and inform agricultural producers on the 
impact of certain farming practices on water quality; 
    (3) to promote sustainable agriculture through use of best 
management practices and integrated pest management; 
    (4) to demonstrate and evaluate alternative pesticide 
practices; and 
    (5) to develop and promote farm profitability through a 
reduction in farm inputs.  
    Subd. 2.  [CONTRACTS.] Contracts to carry out the program 
must be awarded by the board of water and soil resources 
following review by the legislative water commission. 
    Sec. 4.  Minnesota Statutes 1988, section 40.42, is amended 
by adding a subdivision to read: 
     Subd. 6a.  [SENSITIVE AREA.] "Sensitive area" means a 
geographic area defined by natural features where the 
groundwater is at significant risk of contamination from 
activities conducted at or near the land surface. 
    Sec. 5.  Minnesota Statutes 1988, section 40.43, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBLE LAND.] (a) Land may be placed in the 
conservation reserve program if the land complies with paragraph 
(b) and: 
    (1) is marginal agricultural land, or; 
    (2) is adjacent to marginal agricultural land and is either 
beneficial to resource protection or necessary for efficient 
recording of the land description, or; 
    (3) consists of a drained wetland, or is land that with a 
windbreak would be beneficial to resource protection., and 
cropland adjacent to the restored wetland may also be enrolled 
to the extent of up to four acres of cropland for each acre of 
wetland restored; 
    (4) is land that with a windbreak would be beneficial to 
resource protection; 
    (5) is land in a sensitive area; or 
    (6) is land on a hillside used for pasture. 
    (b) Land under paragraph (a) may be placed in the 
conservation reserve program if the land:  
    (2) (1) was owned by the landowner on January 1, 1985, or 
was owned by the landowner, or a parent or other blood relative 
of the landowner, for at least three years before the date of 
application; 
    (3) (2) is at least five acres in size, except for a 
windbreak, or is a whole field as defined by the United States 
Agricultural Stabilization and Conservation Services; 
    (4) (3)  is not set aside, enrolled or diverted under 
another federal or state government program; and 
    (5) (4) except for land on a hillside used for pasture was 
in agricultural crop production for at least two years during 
the period 1981 to 1985. 
    (c) The enrolled land of a landowner may not exceed 20 
percent of the landowner's total agricultural land acreage in 
the state, if the landowner owns at least 200 acres of 
agricultural land as defined by section 500.24, subdivision 2.  
If a landowner owns less than 200 acres of agricultural land the 
amount that may be enrolled in the conservation reserve is: 
    (a) (1) all agricultural land owned, if 20 acres or less; 
or 
    (b) (2) if the total agricultural land owned is more than 
20 acres but less than 200 acres, 20 acres plus ten percent of 
the balance of the agricultural land.  
    (d) In selecting land for enrollment in the program, 
highest priority must be given to permanent easements that are 
consistent with the purposes stated in section 40.41.  
    Sec. 6.  Minnesota Statutes 1988, section 40.43, 
subdivision 6, is amended to read: 
    Subd. 6.  [PAYMENTS FOR CONSERVATION EASEMENTS AND 
ESTABLISHMENT OF COVER.] (a) The commissioner must make the 
following payments to the landowner for the conservation 
easement and agreement: 
    (1) to establish the perennial cover or other improvements 
required by the agreement, up to 75 percent of the total 
eligible cost not to exceed $75 per acre for limited duration 
easements, and 100 percent of the total eligible cost not to 
exceed $100 per acre for perpetual easements; 
    (2) for the cost of planting trees required by the 
agreement, up to 75 percent of the total eligible cost not to 
exceed $200 per acre for limited duration easements, and 100 
percent of the total eligible cost not to exceed $300 per acre 
for perpetual easements; 
    (3) for a permanent easement, 70 percent of the township 
average equalized estimated market value of agricultural 
property as established by the commissioner of revenue at the 
time of easement application; 
    (4) for an easement of limited duration, 90 percent of the 
present value of the average of the accepted bids for the 
federal conservation reserve program, as contained in Public Law 
Number 99-198, in the relevant geographic area and on bids 
accepted at the time of easement application; or 
    (5) an alternative payment system for easements based on 
cash rent or a similar system as may be determined by the 
commissioner. 
    (b) For hillside pasture conservation easements, the 
payments in paragraph (a) must be reduced to reflect the value 
of similar property.  
    (c) The commissioner may not pay more than $50,000 to a 
landowner for all the landowner's conservation easements and 
agreements. 
    Sec. 7.  [103A.43] [WATER RESEARCH NEEDS EVALUATION.] 
    (a) The environmental quality board shall evaluate and 
report to the legislative water commission and the Minnesota 
future resources commission on statewide water research needs 
and recommended priorities for addressing these needs.  Local 
water research needs may also be included.  
    (b) The environmental quality board shall conduct a 
biennial assessment of water quality, groundwater degradation 
trends, and efforts to reduce, prevent, minimize, and eliminate 
degradation of water.  
    (c) The environmental quality board shall assess the 
quantity of surface and ground water in the state and the 
availability of water to meet the state's needs. 
    (d) The environmental quality board shall prepare and 
submit a report to the legislative water commission and the 
Minnesota future resources commission by September 15 of each 
odd-numbered year.  
    Sec. 8.  [103B.3361] [CITATION.] 
    Sections 103B.3361 to 103B.3369 may be cited as the "local 
water resources protection and management program."  
    Sec. 9.  [103B.3363] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The definitions in this section 
apply to sections 103B.3363 and 103B.3369. 
    Subd. 2.  [BOARD.] "Board" means the board of water and 
soil resources.  
    Subd. 3.  [COMPREHENSIVE LOCAL WATER PLAN.] "Comprehensive 
local water plan" means a county water plan authorized under 
section 110B.04, a watershed management plan required under 
section 473.878, a watershed management plan required under 
section 112.46, or a county groundwater plan authorized under 
section 473.8785.  
    Subd. 4.  [LOCAL UNIT OF GOVERNMENT.] "Local unit of 
government" means a statutory or home rule charter city, town, 
county, or soil and water conservation district, watershed 
district, an organization formed for the joint exercise of 
powers under section 471.59, a local health board, or other 
special purpose district or authority with local jurisdiction in 
water and related land resources management.  
    Subd. 5.  [PROGRAM.] "Program" means a water-related 
program.  
    Sec. 10.  [103B.3369] [LOCAL WATER RESOURCES PROTECTION AND 
MANAGEMENT PROGRAM.] 
    Subdivision 1.  [ASSISTANCE PRIORITIES.] State agencies may 
give priority to local requests that are part of or responsive 
to a comprehensive local water plan when administering programs 
for water-related financial and technical assistance.  
    Subd. 2.  [ESTABLISHMENT.] A local water resources 
protection and management program is established.  The board 
shall provide financial assistance to counties for local 
government activities that protect or manage water and related 
land quality.  The activities include planning, zoning, official 
controls, and other activities to implement comprehensive local 
water plans.  
    Subd. 3.  [COUNTY REQUEST AND SPONSORSHIP.] Counties must 
submit funding requests to the board.  A county must coordinate 
and submit requests on behalf of other units of government 
within its jurisdiction.  
    Subd. 4.  [CONTRACTS WITH LOCAL GOVERNMENTS.] A county may 
contract with other appropriate local units of government to 
implement programs.  An explanation of the program 
responsibilities proposed to be contracted with other local 
units of government must accompany grant requests.  A county 
that contracts with other local units of government is 
responsible for ensuring that state funds are properly expended 
and for providing an annual report to the board describing 
expenditures of funds and program accomplishments.  
    Subd. 5.  [FINANCIAL ASSISTANCE.] The board may award 
grants to counties only to carry out water resource protection 
and management programs identified as priorities in 
comprehensive local water plans.  Grants may be used to employ 
persons and to obtain and use information necessary to: 
    (1) develop comprehensive local water plans under section 
110B.04 that have not received state funding for water resources 
planning as provided for in Laws 1987, chapter 404, section 30, 
subdivision 5, clause (a); and 
    (2) implement comprehensive local water plans.  
    Subd. 6.  [LIMITATIONS.] (a) Grants provided to implement 
programs under this section must be reviewed by the state agency 
having statutory program authority to assure compliance with 
minimum state standards.  At the request of the state agency 
commissioner, the board shall revoke the portion of a grant used 
to support a program not in compliance.  
    (b) Grants provided to develop comprehensive local water 
plans may not be awarded for a time longer than two years.  
    (c) A county may not request or be awarded grants for 
project implementation unless a comprehensive water plan has 
been adopted. 
    Subd. 7.  [RULES.] The board shall adopt rules that:  
    (1) establish performance criteria for grant administration 
for local implementation of state delegated or mandated programs 
that recognize regional variations in program needs and 
priorities; 
    (2) recognize the unique nature of state delegated or 
mandated programs; 
    (3) specify that program activities contracted by a county 
to another local unit of government are eligible for funding; 
    (4) require that grants from the board may not exceed the 
amount matched by participating local units of government; and 
    (5) specify a process for the board to establish a base 
level grant amount that all participating counties may be 
eligible to receive. 
    Subd. 8.  [PRIORITIES.] (a) In reviewing requests, the 
board must give priority to requests based on: 
    (1) completion of comprehensive water plans under sections 
110B.04 and 473.8785; 
    (2) adoption, administration, and enforcement of official 
controls; 
    (3) indicate the participation of several local units of 
government, including multicounty efforts; 
    (4) complement efforts of federal, state, and local units 
of government; and 
    (5) demonstrate long-term commitments to effective water 
protection and management programs.  
    (b) The board shall consult with appropriate agencies to 
evaluate grant requests and coordinate project activities with 
other state, federal, and local research management projects. 
    Sec. 11.  Minnesota Statutes 1988, section 110B.04, 
subdivision 6, is amended to read: 
    Subd. 6.  [SCOPE OF PLANS.] Comprehensive water plans must 
include: 
    (1) a description of the existing and expected changes to 
physical environment, land use, and development in the county; 
    (2) available information about the surface water, 
groundwater, and related land resources in the county, including 
existing and potential distribution, availability, quality, and 
use; 
    (3) objectives for future development, use, and 
conservation of water and related land resources, including 
objectives that concern water quality and quantity, and 
sensitive areas, wellhead protection areas, and related land use 
conditions, and a description of actions that will be taken in 
affected watersheds or groundwater systems to achieve the 
objectives; 
    (4) a description of potential changes in state programs, 
policies, and requirements considered important by the county to 
management of water resources in the county; 
    (5) a description of conflicts between the comprehensive 
water plan and existing plans of other local units of 
government; 
    (6) a description of possible conflicts between the 
comprehensive water plan and existing or proposed comprehensive 
water plans of other counties in the affected watershed units or 
groundwater systems; 
    (7) a program for implementation of the plan that is 
consistent with the plan's management objectives and includes 
schedules for amending official controls and water and related 
land resources plans of local units of government to conform 
with the comprehensive water plan, and the schedule, components, 
and expected state and local costs of any projects to implement 
the comprehensive water plan that may be proposed, although this 
does not mean that projects are required by this section; and 
    (8) a procedure for amending the comprehensive water plan. 
     Sec. 12.  Minnesota Statutes 1988, section 110B.35, 
subdivision 3, is amended to read:  
    Subd. 3.  [EX OFFICIO NONVOTING MEMBERS.] The following 
agencies shall each provide one nonvoting member to the board: 
    (1) department of agriculture; 
    (2) department of health; 
    (3) department of natural resources; and 
    (4) pollution control agency; and 
    (5) the University of Minnesota. 
    Sec. 13.  Minnesota Statutes 1988, section 116C.41, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WATER PLANNING.] The board shall:  
    (1) coordinate public water resource management and 
regulation activities among the state agencies having 
jurisdiction in the area; 
    (2) initiate, coordinate, and continue to develop 
comprehensive long-range water resources planning in furtherance 
of the plan adopted by the water planning board entitled "A 
Framework for a Water and Related Land Resources Strategy for 
Minnesota, 1979" including a new plan and strategy by November 
15, 1990, and each five-year interval afterwards; 
    (3) coordinate water planning activities of local, 
regional, and federal bodies with state water planning and 
integrate these plans with state strategies; and 
    (4) coordinate development of state water policy 
recommendations and priorities, and a recommended program for 
funding identified needs, including priorities for implementing 
the state water resources monitoring plan; 
    (5) in cooperation with state agencies participating in the 
monitoring of water resources, develop a plan for monitoring the 
state's water resources; 
    (6) administer federal water resources planning with 
multiagency interests; 
    (7) ensure that groundwater quality monitoring and related 
data is provided and integrated into the Minnesota land 
management information system according to published data 
compatibility guidelines.  Costs of integrating the data in 
accordance with data compatibility standards must be borne by 
the agency generating the data; 
    (8) identify water resources information and education 
needs, priorities, and goals and prepare an implementation plan 
to guide state activities relating to water resources 
information and education; 
    (9) coordinate the development and evaluation of water 
information and education materials and resources; and 
    (10) coordinate the dissemination of water information and 
education through existing delivery systems. 
    Sec. 14.  Minnesota Statutes 1988, section 116C.41, is 
amended by adding a subdivision to read: 
    Subd. 4.  [CONSISTENCY OF STATE INFORMATION 
ACTIVITIES.] State agency information and education activities 
must be consistent with the implementation plan required under 
subdivision 1, clause (8). 

                               ARTICLE 3 

                              CHAPTER 103I 

                  WELLS, BORINGS, AND UNDERGROUND USES 
    Section 1.  [103I.001] [LEGISLATIVE INTENT.] 
    This chapter is intended to protect the health and general 
welfare by providing a means for the development and protection 
of the natural resource of groundwater in an orderly, healthful, 
and reasonable manner.  [156A.01] 
    Sec. 2.  [103I.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
chapter apply to this chapter.  
    Subd. 2.  [BORING.] "Boring" means a hole or excavation 
that is not used to extract water and includes exploratory 
borings, environmental bore holes, and test holes. 
    Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of health. 
    Subd. 4.  [DEPARTMENT.] "Department" means the department 
of health. 
    Subd. 5.  [DRIVE POINT WELL.] "Drive point well" means a 
well constructed by forcing a pointed well screen, attached to 
sections of pipe, into the ground with the screen and casing 
forced or driven into the ground with a hammer, maul, or weight. 
    Subd. 6.  [ELEVATOR SHAFT.] "Elevator shaft" means a bore 
hole, jack hole, drilled hole, or excavation constructed to 
install an elevator shaft or hydraulic cylinder. 
    Subd. 7.  [ELEVATOR SHAFT CONTRACTOR.] "Elevator shaft 
contractor" means a person with an elevator shaft contractor's 
license issued by the commissioner.  
    Subd. 8.  [ENVIRONMENTAL BORE HOLE.] "Environmental bore 
hole" means a hole or excavation in the ground that enters or 
goes through a water bearing layer and is used to monitor or 
measure physical, chemical, radiological, or biological 
parameters without extracting water.  An environmental bore hole 
also includes bore holes constructed for vapor recovery or 
venting systems.  An environmental bore hole does not include a 
well, elevator shaft, exploratory boring, or monitoring well.  
    Subd. 9.  [EXPLORATORY BORING.] "Exploratory boring" means 
a surface drilling done to explore or prospect for oil, natural 
gas, and metallic minerals, including iron, copper, zinc, lead, 
gold, silver, titanium, vanadium, nickel, cadmium, molybdenum, 
chromium, manganese, cobalt, zirconium, beryllium, thorium, 
uranium, aluminum, platinum, palladium, radium, tantalum, tin, 
and niobium, and a drilling or boring for petroleum. [156A.02 s. 
5] 
    Subd. 10.  [EXPLORER.] "Explorer" means a person who has 
the right to drill an exploratory boring.  [156A.02 s. 4] 
    Subd. 11.  [GROUNDWATER THERMAL EXCHANGE DEVICE.] 
"Groundwater thermal exchange device" means a heating or cooling 
device that depends on extraction and reinjection of groundwater 
from an independent aquifer to operate.  [156A.02 s. 6] 
    Subd. 12.  [LIMITED WELL CONTRACTOR.] "Limited well 
contractor" means a person with a limited well contractor's 
license issued by the commissioner.  
     Subd. 13.  [LIMITED WELL SEALING CONTRACTOR.] "Limited well 
sealing contractor" means a person with a limited well sealing 
contractor's license issued by the commissioner. 
    Subd. 14.  [MONITORING WELL.] "Monitoring well" means an 
excavation that is drilled, cored, bored, washed, driven, dug, 
jetted, or otherwise constructed to extract groundwater for 
physical, chemical, or biological testing.  "Monitoring well" 
includes a groundwater quality sampling well. 
    Subd. 15.  [MONITORING WELL CONTRACTOR.] "Monitoring well 
contractor" means a person who is registered by the commissioner 
to construct monitoring wells.  
    Subd. 16.  [PERSON.] "Person" means an individual, firm, 
partnership, association, or corporation.  
    Subd. 17.  [PROVISIONS OF THIS CHAPTER.] "Provisions of 
this chapter" means the sections in this chapter and rules 
adopted by the commissioner under this chapter.  
    Subd. 18.  [SEALED WELL CERTIFICATE.] "Sealed well 
certificate" means the certificate containing information 
required under section 19.  
    Subd. 19.  [TEST HOLE.] "Test hole" means a boring that 
does not enter a water-bearing layer of soil. 
    Subd. 20.  [VERTICAL HEAT EXCHANGER.] "Vertical heat 
exchanger" means an earth-coupled heating or cooling device 
consisting of a sealed piping system installed vertically in the 
ground to transfer heat to or from the surrounding earth.  
[156A.02 s. 7] 
    Subd. 21.  [WELL.] "Well" means an excavation that is 
drilled, cored, bored, washed, driven, dug, jetted, or otherwise 
constructed if the excavation is intended for the location, 
diversion, artificial recharge, or acquisition of groundwater.  
Well includes monitoring wells, drive point wells, and 
dewatering wells.  "Well" does not include:  
    (1) an excavation by backhoe, or otherwise for temporary 
dewatering of groundwater for nonpotable use during 
construction, if the depth of the excavation is 25 feet or less; 
    (2) an excavation made to obtain or prospect for oil, 
natural gas, minerals, or products of mining or quarrying; 
    (3) an excavation to insert media to repressure oil or 
natural gas bearing formations or to store petroleum, natural 
gas, or other products; 
    (4) an excavation for nonpotable use for wildfire 
suppression activities; or 
    (5) borings.  [156A.02 s.1] 
    Subd. 22.  [WELL CERTIFICATE.] "Well certificate" means a 
certificate containing the requirements of section 14, 
subdivision 1, paragraph (e). 
    Subd. 23.  [WELL CONTRACTOR.] "Well contractor" means a 
person with a well contractor's license.  [156A.02 s. 2] 
    Subd. 24.  [WELLHEAD PROTECTION AREA.] "Wellhead protection 
area" means the surface and subsurface area surrounding a well 
or well field that supplies a public water system, through which 
contaminants are likely to move toward and reach the well or 
well field.  

                  JURISDICTION OVER WELLS AND BORINGS 
    Sec. 3.  [103I.101] [POWERS AND DUTIES OF THE COMMISSIONER 
OF HEALTH.] 
    Subdivision 1.  [POWERS OF COMMISSIONER.] The commissioner 
has the powers reasonable and necessary to effectively exercise 
the authority granted by this chapter.  [156A.05 s. 1] 
    Subd. 2.  [DUTIES.] The commissioner shall:  
    (1) regulate the drilling, construction, and sealing of 
wells; 
    (2) examine and license well contractors, persons modifying 
or repairing well casings, well screens, or well diameters; 
constructing unconventional wells such as drive point wells or 
dug 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 and elevator shafts 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. 
    Subd. 3.  [PROCEDURES FOR PERMITS.] The commissioner shall 
establish procedures for application, approval, and issuance of 
permits by rule.  
    Subd. 4.  [INSPECTIONS BY COMMISSIONER.] The commissioner 
may inspect, collect water samples, and have access, at all 
reasonable times, to a well site, including wells drilled, 
sealed, or repaired.  [156A.05 s. 3] 
    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 unconventional wells such as 
drive points or dug wells; 
    (iii) persons sealing wells; and 
    (iv) persons installing well pumps or pumping equipment and 
excavating holes for installing elevator shafts or hydraulic 
cylinders; 
    (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 
drilled and sealed; 
    (7) modification of fees prescribed in this chapter, 
according to the procedures for setting fees in section 16A.128; 
    (8) establishment of standards for the construction, 
maintenance, sealing, and water quality monitoring of wells in 
areas of known or suspected contamination, for which the 
commissioner may adopt emergency rules; 
    (9) establishment of wellhead protection measures for wells 
serving public water supplies; 
    (10) establishment of procedures to coordinate collection 
of well data with other state and local governmental agencies; 
and 
    (11) establishment of criteria and procedures for 
submission of well logs, formation samples or well cuttings, 
water samples, or other special information required for 
geologic and water resource mapping.  [156A.05 s. 2] 
    Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
charge a nonrefundable application fee of $150 to cover the 
administrative cost of processing a request for a variance or 
modification of rules under Minnesota Rules, part 4725.0400, and 
for a variance relating to well construction, the nonrefundable 
application fee shall be the same amount as the well permit fee. 
    Sec. 4.  [103I.103] [WASTE PREVENTION MAY BE REQUIRED.] 
    The commissioner of natural resources may require the 
owners of wells, especially flowing artesian wells, to prevent 
waste to conserve the groundwater water supply of the state.  
[105.51 s. 1] 
    Sec. 5.  [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 15 voting members.  Of the 15 
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 a monitoring well contractor; and 
    (9) 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.  
    (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.  [156A.06] 
    Sec. 6.  [103I.111] [LOCAL AUTHORITY OVER WELLS AND 
BORINGS.] 
    Subdivision 1.  [DELEGATION OF DUTIES OF COMMISSIONER.] (a) 
The commissioner of health may enter into an agreement with a 
board of health to delegate all or part of the inspection, 
reporting, and enforcement duties authorized under provisions of 
this chapter pertaining to permitting, construction, repair, and 
sealing of wells and elevator shafts.  [145A.07 s. 1] 
    (b) A board of health may delegate its powers and duties to 
other boards of health within its jurisdiction.  An agreement to 
delegate powers and duties of a board of health must be approved 
by the commissioner and is subject to subdivision 3.  [145A.07 
s. 2] 
    Subd. 2.  [DELEGATION AGREEMENTS.] (a) Agreements 
authorized under this section must be in writing and signed by 
the delegating authority and the designated agent. 
    (b) The agreement must list criteria the delegating 
authority will use to determine if the designated agent's 
performance meets appropriate standards and is sufficient to 
replace performance by the delegating authority.  
    (c) The agreement may specify minimum staff requirements 
and qualifications, set procedures for the assessment of costs, 
and provide for termination procedures if the delegating 
authority finds that the designated agent fails to comply with 
the agreement. 
    (d) A designated agent must not perform licensing, 
inspection, or enforcement duties under the agreement in 
territory outside its jurisdiction unless approved by the 
governing body for that territory through a separate agreement. 
    (e) The scope of agreements established under this section 
is limited to duties and responsibilities agreed upon by the 
parties.  The agreement may provide for automatic renewal and 
for notice of intent to terminate by either party.  
    (f) During the life of the agreement, the delegating 
authority shall not perform duties that the designated agent is 
required to perform under the agreement, except inspections 
necessary to determine compliance with the agreement and this 
section or as agreed to by the parties. 
    (g) The delegating authority shall consult with, advise, 
and assist a designated agent in the performance of its duties 
under the agreement. 
    (h) This section does not alter the responsibility of the 
delegating authority for the performance of duties specified in 
law.  [145A.07 s. 3] 
    Subd. 3.  [PREEMPTION UNLESS DELEGATION.] Notwithstanding 
any other law, a political subdivision may not regulate the 
permitting, construction, repair, or sealing of wells or 
elevator shafts unless the commissioner delegates authority 
under subdivisions 1 and 2.  
    Subd. 4.  [LOCAL AUTHORITY OVER EXPLORATORY BORING.] This 
chapter does not limit the authority of a local unit of 
government to prohibit mineral exploration within its 
boundaries, require permits from explorers, or impose reasonable 
requirements and fees upon explorers, that is consistent with 
other law.  [156A.075] 
    Subd. 5.  [LOCAL GOVERNMENT REGULATION OF OPEN WELLS AND 
RECHARGING BASINS.] (a) The governing body of a county, 
municipality, statutory or home rule charter city, or town may 
regulate open wells and recharging basins and may provide 
penalties for the violations.  The use or maintenance of an open 
well or recharging basin that endangers the safety of a 
considerable number of persons may be defined as a public 
nuisance and abated as a public nuisance.  [471.92 s. 1] 
    (b) The abatement of the public nuisance may include 
covering the open well or recharging basin or surrounding the 
open well or recharging basin with a protective fence.  [471.92 
s. 2] 
    Subd. 6.  [UNSEALED WELLS ARE PUBLIC HEALTH NUISANCES.] A 
well that is required to be sealed under section 16 but is not 
sealed is a public health nuisance.  A county may abate the 
unsealed well with the same authority of a board of health to 
abate a public health nuisance under section 145A.04, 
subdivision 8.  
    Subd. 7.  [LOCAL LICENSE OR REGISTRATION FEES 
PROHIBITED.] (a) A political subdivision may not require a 
licensed well contractor to pay a license or registration fee.  
    (b) The commissioner of health must provide a political 
subdivision with a list of licensed well contractors upon 
request.  [156A.07 s. 9] 
    Subd. 8.  [MUNICIPAL REGULATION OF DRILLING.] A 
municipality may regulate all drilling, except well, elevator 
shaft, and exploratory drilling that is subject to the 
provisions of this chapter, above, in, through, and adjacent to 
subsurface areas designated for mined underground space 
development and existing mined underground space.  The 
regulations may prohibit, restrict, control, and require permits 
for the drilling.  [469.141 s. 2] 
    Sec. 7.  [103I.113] [APPLICABILITY TO MINING ACTIVITIES.] 
    The provisions of this chapter do not apply to mining 
activities within a mining area described in a permit to mine 
issued under section 93.481 except a well or boring from which 
water is withdrawn. 

                     WELL CONSTRUCTION AND OWNERSHIP
    Sec. 8.  [103I.115] [COMPLIANCE WITH THIS CHAPTER 
REQUIRED.] A person may not construct, repair, or seal a well or 
boring, except as provided under the provisions of this chapter. 
    Sec. 9.  [103I.205] [WELL CONSTRUCTION.] 
     Subdivision 1.  [NOTIFICATION REQUIRED.] (a) Except as 
provided in paragraphs (d) and (e), a person may not construct a 
well until a notification of the proposed well on a form 
prescribed by the commissioner is filed with the commissioner 
with the filing fee in section 10.  If after filing the well 
notification an attempt to construct a well is unsuccessful, a 
new notification is not required unless the information relating 
to the successful well has substantially changed.  
    (b) The property owner where a well is to be located must 
file the well notification with the commissioner.  
    (c) The well notification under this subdivision preempts 
local permits and notifications, and counties or home rule 
charter or statutory cities may not require a permit or 
notification for wells.  
    (d) The owner of a drive point well must notify the 
commissioner of the installation and location of the well.  The 
owner must complete the notification form prescribed by the 
commissioner and mail it to the commissioner by ten days after 
the well is completed.  A fee may not be charged for the 
notification.  A person who sells drive point wells at retail 
must provide buyers with notification forms and informational 
materials including requirements regarding wells, their 
location, construction, and disclosure.  The commissioner must 
provide the notification forms and informational materials to 
the sellers. 
    (e) A person may not construct a monitoring well or 
dewatering well until a permit for the monitoring well is issued 
by the commissioner for the construction.  If after obtaining a 
permit an attempt to construct a well is unsuccessful, a new 
permit is not required as long as the initial permit is modified 
to indicate the location of the successful well. 
    Subd. 2.  [EMERGENCY PERMIT EXEMPTIONS.] The commissioner 
may adopt rules that modify the procedures for filing a well 
notification 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 or well 
contractor to begin constructing a well before obtaining a 
permit.  
    Subd. 3.  [MAINTENANCE PERMIT.] (a) Except as provided 
under paragraph (b), a well that is not in use and is inoperable 
must be sealed or have a maintenance permit.  
    (b) If a monitoring well or a dewatering well is not sealed 
by 14 months after completion of construction, the owner of the 
property on which the well is located must obtain and annually 
renew a maintenance permit from the commissioner. 
    Subd. 4.  [LICENSE REQUIRED.] (a) Except as provided in 
paragraph (b), (c), (d), or (e), a person may not drill, 
construct, or repair a well unless the person has a well 
contractor's license in possession.  [156A.03 s. 2] 
    (b) A person may construct a monitoring well if the person 
is a professional engineer registered under sections 326.02 to 
326.15 in the branches of civil or geological engineering, or 
hydrologists or hydrogeologists certified by the American 
Institute of Hydrology, any professional engineer registered 
with the board of architecture, engineering, land surveying, or 
landscape architecture, or a geologist certified by the American 
Institute of Professional Geologists, and registers 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 
contractor's license in possession:  
    (1) modify or repair well casings or well screens; 
    (2) construct drive point wells; or 
    (3) install well pumps or pumping equipment. 
     (d) A person may do the following work with a limited well 
sealing contractor's license in possession: 
     (1) modify or repair well casings or well screens; 
     (2) construct drive point wells; 
     (3) install well pumps or pumping equipment; or 
     (4) seal wells. 
    (e) Notwithstanding other provisions of this chapter 
requiring a license, a license 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 well 
contractor in connection with the construction or repair of a 
well or sealing a well at the direction and at the personal 
supervision of a well contractor.  
    Subd. 5.  [AT-GRADE MONITORING WELLS.] At-grade monitoring 
wells are authorized and may be installed for the purpose of 
evaluating groundwater conditions or for use as a leak detection 
device.  The at-grade completion must comply with rules of the 
commissioner.  The at-grade monitoring wells must be installed 
with an impermeable double locking cap and must be labeled 
monitoring wells. 
    Subd. 6.  [DISTANCE REQUIREMENTS FOR SOURCES OF 
CONTAMINATION.] A person may not place, construct, or install an 
actual or potential source of contamination any closer to a well 
than the isolation distances prescribed by the commissioner by 
rule unless a variance has been prescribed by rule. 
    Subd. 7.  [WELL IDENTIFICATION LABEL REQUIRED.] After a 
well has been constructed, the person constructing the well must 
attach a label to the well showing the unique well number, the 
depth of the well, the name of the person who constructed the 
well, and the date the well was constructed. 
     Subd. 8.  [MONITORING WELL CONTRACT REQUIREMENT.] A person 
may not construct a monitoring well until the owner of the 
property on which the well is located and the well owner sign a 
written contract that describes the nature of the work to be 
performed, the estimated cost of the work, and provisions for 
sealing the monitoring well. 
    Subd. 9.  [REPORT OF WORK.] (a) Within 30 days after 
completion or sealing of a well, the person doing the work must 
submit a verified report to the commissioner on forms provided 
by the commissioner.  
    (b) The report must contain:  
    (1) the name and address of the owner of the well and the 
actual location of the well; 
    (2) a log of the materials and water encountered in 
connection with drilling the well, and pumping tests relating to 
the well; and 
    (3) other information the commissioner may require 
concerning the drilling or sealing of the well.  
    (c) Within 30 days after receiving the report, the 
commissioner shall send a copy of the report to the commissioner 
of natural resources, the local soil and water conservation 
district where the well is located, and to the director of the 
Minnesota geological survey.  
    Sec. 10.  [103I.208] [WELL NOTIFICATION FILING FEES AND 
PERMIT FEES.] 
    Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
notification fee to be paid by a property owner is:  
    (1) for a new well drilled that produces less than 50 
gallons a minute based on the actual capacity of the pump 
installed, $50; and 
    (2) for a new well that produces 50 gallons a minute or 
more based on the actual capacity of the pump installed, $100.  
    Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
property owner is:  
    (1) for a well that is inoperable or disconnected from a 
power supply under a maintenance permit, $50; 
    (3) for construction of a monitoring well, $50; 
    (4) for monitoring wells owned by a state or federal agency 
or a local unit of government as defined in article 2, section 
9, subdivision 4, there is no fee; 
    (5) annually for a monitoring well that is unsealed under a 
maintenance permit, $50; 
    (6) for monitoring wells used as a leak detection device at 
a single motor fuel retail outlet or petroleum bulk storage site 
excluding tank farms, the construction permit fee is $50 per 
site regardless of the number of wells constructed on the site 
and the annual fee for a maintenance permit for unsealed 
monitoring wells is $50 per site regardless of the number of 
monitoring wells located on site; 
    (6) for a groundwater thermal exchange device, $50; 
    (7) for a vertical heat exchanger, in addition to the 
permit fee for wells, $50; 
    (8) for construction of the dewatering well, $50 for each 
well except a dewatering project comprising more than ten wells 
shall be issued a single permit for the wells recorded on the 
permit for $500; and 
    (9) annually for a dewatering well that is unsealed under a 
maintenance permit, $25 for each well, except a dewatering 
project comprising more than ten wells shall be issued a single 
permit for wells recorded on the permit for $250. 
    Sec. 11.  [103I.211] [DRILLING RECORDS.] 
    (a) A person, firm, or corporation that provides the means 
of appropriating groundwater by drilling, boring, or another 
manner must file a verified statement with the director of the 
division of waters of the department of natural resources 
containing the log of the materials and water encountered and 
related water pumping tests.  
    (b) The statements are private data and can be used only by 
the division of waters of the department of natural resources 
for scientific study.  The study's result may be public 
information.  
    (c) The commissioner of natural resources may exclude from 
the requirement to file statements those whose operations are of 
a type that would not yield significant scientific information.  
[105.51 s. 2] 
    Sec. 12.  [103I.221] [PLASTIC CASINGS.] 
    Subdivision 1.  [PLASTIC CASINGS ALLOWED.] The use of 
plastic casings in wells is expressly authorized.  
    Subd. 2.  [RULES.] The commissioner may adopt rules 
relating to the installation of plastic well casing. 
    Sec. 13.  [103I.231] [COMMISSIONER MAY ORDER REPAIRS.] 
     (a) The commissioner may order the owner of a well to take 
remedial measures, including making repairs, reconstructing, or 
sealing the well according to the rules of the commissioner.  
The order may be issued if the commissioner determines, based on 
inspection of the water or the well site or an analysis of water 
from the well, that the well:  
    (1) is contaminated; 
    (2) is required to be sealed under this chapter and has not 
been sealed according to the rules of the commissioner; 
    (3) is in a state of disrepair so that its continued 
existence endangers the quality of the groundwater; 
    (4) is a health or safety hazard; or 
    (5) is located in a place or constructed in a manner that 
its continued use or existence endangers the quality of the 
groundwater.  
    (b) The order of the commissioner may be enforced in an 
action to seek compliance brought by the commissioner in the 
district court of the county where the well is located.  
[156A.05 s. 4] 
    Sec. 14.  [103I.235] [SALE OF PROPERTY WHERE WELLS ARE 
LOCATED.] 
     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a) Before 
signing an agreement to sell or transfer real property, the 
seller must disclose in writing to the buyer information about 
the status and the location of all known wells on the property, 
including the legal description, and the quartile, section, 
township, range, and county, and a map drawn from available 
information showing the location of the wells to the extent 
practicable.  In the disclosure, the seller must indicate, for 
each well, whether the well is in use, not in use, or sealed.  
    (b) At the time of closing of the sale, the disclosure 
information must be provided on a well certificate signed by the 
seller of the property or a person authorized to act on behalf 
of the seller.  
     (c) If a seller fails to provide a well certificate, a 
buyer, or a person authorized to act on behalf of the buyer, may 
sign a well certificate based on the information provided on the 
disclosure required by this section or based on other available 
information. 
    (d) A county recorder or registrar of titles may not record 
a deed, instrument, or writing for which a certificate of value 
is required under section 272.115, or any deed or contract for 
deed from a governmental body exempt from the payment of state 
deed tax, unless the well certificate required by this 
subdivision is filed with the county recorder or registrar of 
titles and the filing fee paid under section 357.18.  The county 
recorder or registrar of titles shall transmit the well 
certificate to the commissioner of health within 15 days after 
receiving the well certificate. 
    (e) The commissioner in consultation with county recorders 
shall prescribe the form for a well certificate and provide well 
certificate forms to county recorders and registrars of titles 
and other interested persons. 
    Subd. 2.  [LIABILITY FOR FAILURE TO DISCLOSE.] Unless the 
buyer and seller agree to the contrary, in writing, before the 
closing of the sale, a seller who fails to disclose the 
existence of a well at the time of sale and knew of or had 
reason to know of the existence of a well is liable to the buyer 
for costs and reasonable attorney fees relating to the sealing 
of a well.  The action must be commenced by the buyer within six 
years after the date the buyer purchased the real property where 
the well is located.  
    Sec. 15.  [103I.241] [ACTION FOR WELL CONTAMINATION.] 
    Subdivision 1.  [OWNER'S CAUSE OF ACTION FOR WELL 
CONTAMINATION.] The owner of real property where a well is 
located has a cause of action for civil damages against a person 
whose action or inaction caused contamination of a well.  The 
property owner may commence an action for a period of six years 
after the owner knows or becomes aware of the contamination of 
the well.  
    Subd. 2.  [COURT AWARDS.] The court may award damages, 
reasonable attorney fees, and costs and disbursements.  

                              WELL SEALING 
    Sec. 16.  [103I.301] [WELL AND SEALING REQUIREMENTS.] 
    Subdivision 1.  [WELLS.] (a) A well owner must have a well 
sealed if:  
    (1) the well is contaminated; 
    (2) the well was attempted to be sealed but was not sealed 
according to the provisions of this chapter; or 
    (3) the well is located, constructed, or maintained in a 
manner that its continued use or existence endangers groundwater 
quality or is a safety or health hazard.  
    (b) A well that is inoperable must be sealed unless the 
well owner has a maintenance permit for the well.  
    (c) The well owner must have a well contractor or limited 
well sealing contractor seal a well. 
    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 sealing contractor, or a 
monitoring well contractor seal the monitoring well.  
    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 or limited well sealing contractor 
shall seal the dewatering well. 
    Subd. 4.  [SEALING PROCEDURES.] Wells, monitoring wells, 
and dewatering wells must be sealed according to rules adopted 
by the commissioner.  
    Subd. 5.  [SEALING OF SIX-INCH OR LARGER WELLS.] The owner 
of a well with a casing six inches or more in inside diameter 
may not seal the well, cover or otherwise render the well 
inaccessible for inspection, or permanently remove the pumps 
from the well without notifying the commissioner of natural 
resources and complying with the commissioner's 
recommendations.  The commissioner of natural resources may make 
recommendations and impose conditions as the commissioner 
determines to be advisable in the public interest.  The 
commissioner of natural resources, or an authorized agent of the 
commissioner, must be granted access at reasonable times to 
inspect the site of a well that has been sealed, or for which 
notice of sealing has been given under this subdivision.  
[105.51 s. 3] 
    Sec. 17.  [103I.311] [IDENTIFICATION AND SEALING OF WELLS 
ON STATE PROPERTY.] 
    Subdivision 1.  [IDENTIFICATION OF WELLS.] The commissioner 
of natural resources in cooperation with other state agencies 
must identify the location and status of wells and abandoned 
wells located on state property.  
    Subd. 2.  [PLAN AND APPROPRIATION REQUEST FOR WELL 
SEALING.] In each budget year of a biennium, the commissioner 
must present a plan and an appropriation request to properly 
seal wells on state property.  
    Subd. 3.  [PROHIBITION ON STATE LAND PURCHASED WITHOUT WELL 
IDENTIFICATION.] The state may not purchase or sell real 
property or an interest in real property without identifying the 
location of all wells whether in use, not in use, or sealed on 
the property and making provisions to have the wells not in use 
properly sealed at the cost of the seller as part of the 
contract.  The sale may not be recorded with the county recorder 
or registrar of titles unless this subdivision is complied with. 
    Sec. 18.  [103I.315] [ORDERS TO SEAL WELLS.] 
    Subdivision 1.  [ORDER TO SEAL WELL.] The commissioner may 
order a property owner to seal a well if:  
    (1) the commissioner determines that without being sealed 
the well is an imminent threat to public health or public 
safety; 
    (2) the well is required to be sealed under section 16; or 
    (3) a well is a monitoring well or dewatering well and by 
14 months after construction of the well, the owner has not 
obtained a maintenance permit, or after a maintenance permit has 
been issued the owner has not renewed a maintenance permit.  
    Subd. 2.  [FAILURE OF OWNER TO SEAL WELL.] If the property 
owner fails to seal a well in the time provided in the 
commissioner's order, the commissioner may enter the property 
and have the well sealed.  The property owner is liable for and 
must pay the costs of sealing the well.  
    Sec. 19.  [103I.321] [SEALED WELL CERTIFICATES.] 
    Subdivision 1.  [COUNTY ISSUANCE.] A county must issue a 
sealed well certificate prescribed by the commissioner of health 
in consultation with county recorders for wells that are sealed 
in accordance with this chapter.  
    Subd. 2.  [RULES.] The commissioner may adopt rules 
prescribing a procedure to determine that wells are properly 
sealed.  
    Sec. 20.  [103I.325] [LANDOWNER SEALED WELL LIABILITY.] 
    Subdivision 1.  [CERTIFICATE FILING REQUIRED.] A landowner 
must file the sealed well certificate with the county recorder 
or registrar of titles and pay the filing fee under section 
357.18 where the sealed well is located.  
    Subd. 2.  [LIABILITY AFTER SEALING.] The owner of a well 
that has had a sealed well certificate filed with the 
commissioner of health and the county recorder or registrar of 
titles where the well is located is not liable for contamination 
of groundwater from the well that occurs after the well has been 
sealed, if the owner has not disturbed or disrupted the sealed 
well.  
    Sec. 21.  [103I.331] [WELL SEALING COST-SHARE PROGRAM.] 
    Subdivision 1.  [COUNTY COST-SHARE SEALING PROGRAM.] (a) 
The board of water and soil resources may allocate funds to 
counties selected under subdivision 2 to be used for a well 
sealing program to share the cost of sealing wells according to 
the priority under subdivision 3.  
    (b) A county may contract for the administration of the 
well sealing program under this section with another local unit 
of government.  
    (c) The county must consult with local health boards, soil 
and water conservation districts, planning and zoning 
departments, and other appropriate organizations and local 
government units during program implementation.  
    (d) To encourage landowner participation in the program, 
the county shall: 
    (1) publish information in newspapers of general 
circulation, regarding availability of state funds to share the 
cost of sealing wells; and 
    (2) invite the public to report to the county on the 
existence of wells that are not sealed. 
    Subd. 2.  [CRITERIA FOR SELECTING COUNTIES FOR WELL 
SEALING.] (a) The board of water and soil resources, in 
selecting counties for participation, shall consult with the 
commissioners of natural resources, the pollution control 
agency, and health, and the director of the Minnesota geological 
survey, and must consider appropriate criteria including the 
following:  
    (1) diversity of well construction; 
    (2) diversity of geologic conditions; 
    (3) current use of affected aquifers; 
    (4) diversity of land use; and 
    (5) aquifer susceptibility to contamination by unsealed 
wells.  
    (b) After July 1, 1991, only well sealings that are a part 
of, or responsive to, the priority actions identified in an 
approved comprehensive local water plan, as defined in article 
2, section 9, subdivision 3, are eligible for assistance.  
    Subd. 3.  [WELL SEALING PRIORITIES.] The board of water and 
soil resources, and the commissioner of health after 
consultation with local water planning authorities, shall 
establish priorities for sealing wells that are not an imminent 
threat to public health or public safety based on the following 
criteria:  
    (1) well construction, depth, and condition; 
    (2) importance of an aquifer as public and private water 
supply source; 
    (3) proximity to known or potential point or nonpoint 
contamination sources; 
    (4) current contamination of the well or aquifer; 
    (5) susceptibility of an aquifer to contamination by wells 
that are not sealed; 
    (6) limited availability of alternative sources of drinking 
water; 
    (7) anticipated changes in land or water use; 
    (8) unique conditions such as construction, rehabilitation, 
or demolition areas; 
    (9) potential use of the well as a monitoring well; and 
    (10) the danger to humans and animals of falling into the 
well.  
    Subd. 4.  [LANDOWNER WELL SEALING CONTRACTS.] (a) A county, 
or contracted local unit of government, may contract with 
landowners to share the cost of sealing priority wells in 
accordance with criteria established by the board of water and 
soil resources.  
    (b) The county must use the funds allocated from the board 
of water and soil resources to pay up to 75 percent, but not 
more than $2,000 of the cost of sealing priority wells. 
    (c) A well sealing contract must provide that: 
    (1) sealing is done in accordance with this chapter and 
rules of the commissioner of health relating to sealing of 
unused wells; 
    (2) payment is made to the landowner, after the well is 
sealed by a contractor licensed under this chapter; 
    (3) a sealed well certificate will be issued to the 
landowner after sealing of the well is completed; and 
    (4) the landowner must file a copy of the sealed well 
certificate and a copy of the well record with the commissioner 
of health. 
    Subd. 5.  [REPORTS.] (a) The county shall make an annual 
report to the board of soil and water resources by February 15 
of each year on the status of the well sealing grant program in 
the county including the number, location, and cost for each 
well sealed.  
     (b) The board of water and soil resources in cooperation 
with the commissioner of health shall make annual reports to the 
legislature on the status of expenditures and well sealings. 
    Subd. 6.  [REPEALER.] This section is repealed effective 
June 30, 1995.  
    Sec. 22.  [103I.335] [FUNDING FOR PERSONS TO SEAL WELLS.] 
    Subdivision 1.  [APPLICATION.] A property owner who desires 
to seal a well may apply to the board of water and soil 
resources for the board to provide funds and seal the well. 
    Subd. 2.  [CRITERIA FOR SEALING.] The board of water and 
soil resources shall adopt criteria for accepting applications 
to seal wells for property owners applying under subdivision 1. 
    Subd. 3.  [COLLECTION AND ENFORCEMENT OF COSTS.] If the 
applications are accepted, the costs of sealing become a 
governmental services lien as provided in section 23.  The board 
of water and soil resources must enter a written agreement to 
collect the costs of sealing the well in a manner provided under 
section 23, subdivision 3.  If the costs are not paid according 
to the agreement, the board of water and soil resources may 
enforce the lien in any manner provided under section 23, 
subdivisions 2 and 3. 
    Sec. 23.  [103I.341] [COLLECTION AND ENFORCEMENT OF WELL 
SEALING COSTS.] 
    Subdivision 1.  [LIEN FOR SEALING COSTS.] The commissioner 
and the board of water and soil resources have a governmental 
services lien under section 514.67 for the costs of sealing a 
well that the commissioner or board has contracted to be sealed 
under section 18, subdivision 2; 21; or 22.  The lien attaches 
to the real property where the well is located.  The lien is 
perfected by filing the lien with the county recorder or 
registrar of titles where the well and property are located and 
serving or mailing by return receipt a copy of the lien to the 
property owner. 
    Subd. 2.  [ENFORCEMENT OF LIEN.] The commissioner or the 
board of water and soil resources may enforce the lien in the 
manner provided for a judgment lien under chapter 550 or certify 
the amount to the county auditor, which must be assessed against 
the property and collected in the same manner as real estate 
taxes. 
    Subd. 3.  [ASSESSMENT OF INSTALLMENTS.] (a) In lieu of 
certifying the entire amount to be collected, the commissioner 
or the board of water and soil resources may have the amount due 
assessed in seven or less equal annual installments plus 
interest due at the rate determined by the state court 
administrator for judgments under section 549.09. 
    (b) The interest due is an additional perfected lien on the 
property without further action by the commissioner or the board 
of water and soil resources. 
    (c) The interest and the installment due must be entered on 
the tax lists for the year and collected in the same manner as 
real estate taxes for that year by collecting one-half of the 
total of the installment and interest with and as part of the 
real estate taxes. 
    Subd. 4.  [SATISFACTION OF LIEN.] The amount due and 
interest of a lien under this section may be paid at any time.  
When the amount of the lien including accrued interest is paid, 
the commissioner or board must execute a satisfaction of the 
lien and record the satisfaction with the county recorder or 
registrar of titles where the lien was filed. 
    Subd. 5.  [APPROPRIATION OF RECOVERED COSTS.] Costs of 
sealing wells recovered from property owners shall be deposited 
in the state treasury and credited to the account from which the 
amounts were originally appropriated.  The amounts recovered by 
the board of water and soil resources are continuously 
appropriated to the board for sealing wells.  

                         ELEVATOR SHAFT BORINGS 
    Sec. 24.  [103I.401] [ELEVATOR SHAFT BORINGS.] 
    Subdivision 1.  [PERMIT REQUIRED.] (a) A person may not 
construct an elevator shaft until a permit for the hole or 
excavation is issued by the commissioner.  
     (b) The fee for excavating holes for the purpose of 
installing elevator shafts is $50 for each hole. 
    (c) The elevator shaft permit preempts local permits except 
local building permits, and counties and home rule charter or 
statutory cities may not require a permit for elevator shaft 
holes or excavations.  
    Subd. 2.  [LICENSE REQUIRED.] A person may not construct an 
elevator shaft unless the person possesses a well contractor's 
license or an elevator shaft contractor's license issued by the 
commissioner.  
    Subd. 3.  [SEALING.] A well contractor or elevator shaft 
contractor must seal a hole or excavation that is no longer used 
for an elevator shaft.  The sealing must be done according to 
rules adopted by the commissioner.  
    Subd. 4.  [REPORT.] Within 30 days after completion or 
sealing of a hole or excavation for an elevator shaft, the 
person doing the work must submit a report to the commissioner 
on forms provided by the commissioner. 

                        ENVIRONMENTAL BORE HOLES 
    Sec. 25.  [103I.451] [ENVIRONMENTAL BORE HOLES.] 
    An environmental bore hole must be constructed, sealed, and 
reported as prescribed by rule of the commissioner by a well 
contractor or a monitoring well contractor.  

                       LICENSING AND REGISTRATION 
    Sec. 26.  [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.  
[156A.03 s. 1] 
    (b) The commissioner shall examine and license well 
contractors, limited well 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.  [156A.03 s. 1] 
    Sec. 27.  [103I.505] [RECIPROCITY OF LICENSES.] 
    Subdivision 1.  [RECIPROCITY AUTHORIZED.] The commissioner 
may issue a license or register a person under this chapter, 
without giving an examination, if the person is licensed or 
registered in another state and:  
    (1) the requirements for licensing or registration under 
which the well contractor was licensed or registered do not 
conflict with this chapter; 
    (2) the requirements are of a standard not lower than that 
specified by the rules adopted under this chapter; and 
    (3) equal reciprocal privileges are granted to licensees of 
this state.  
    Subd. 2.  [LICENSE FEE REQUIRED.] A well contractor must 
apply for the license and pay the fees under the provisions of 
this chapter to receive a license under this section.  
    Sec. 28.  [103I.515] [LICENSES NOT TRANSFERABLE.] 
    A license or registration issued under this chapter is not 
transferable.  
    Sec. 29.  [103I.521] [FEES DEPOSITED WITH STATE TREASURER.] 
    Fees collected for licenses or registration under this 
chapter shall be deposited in the state treasury.  
    Sec. 30.  [103I.525] [WELL CONTRACTOR'S LICENSE.] 
    Subdivision 1.  [APPLICATION.] (a) A person must file an 
application and application fee with the commissioner to apply 
for a well 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 well 
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 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 well contractor's license.  
    Subd. 5.  [BOND.] (a) As a condition of being issued a well 
contractor's license, the applicant must submit a corporate 
surety bond for $10,000 approved by the commissioner.  The bond 
must be conditioned to pay the state on unlawful performance of 
work regulated by this chapter in this state.  The bond is in 
lieu of other license bonds required by a political subdivision 
of the state.  
    (b) From proceeds of the bond, 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 well contractor's 
license is $250.  
    Subd. 7.  [VALIDITY.] A well contractor's license is valid 
until the date prescribed in the license by the commissioner.  
    Subd. 8.  [RENEWAL.] (a) A licensee must file an 
application and a renewal application fee to renew the license 
by the date stated in the license.  
    (b) The renewal application fee shall be set by the 
commissioner under section 16A.128.  
    (c) The renewal application must include information that 
the applicant has met continuing education requirements 
established by the commissioner by rule.  
    Subd. 9.  [LATE RENEWAL APPLICATION.] If a licensee submits 
a renewal application after the required renewal date: 
    (1) the licensee must include an additional late fee set by 
the commissioner under section 16A.128; and 
    (2) the licensee may not conduct activities authorized by 
the well contractor's license until the renewal application, 
renewal application fee, and late fee are submitted. 
    Sec. 31.  [103I.531] [LIMITED WELL 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 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 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 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 contractor's 
license.  
    Subd. 5.  [BOND.] (a) As a condition of being issued a 
limited well contractor's license, the applicant must submit a 
corporate surety bond for $10,000 approved by the commissioner.  
The bond must be conditioned to pay the state on unlawful 
performance of work regulated by this chapter in this state.  
The bond is in lieu of other license bonds required by a 
political subdivision of the state.  
    (b) From proceeds of the bond, 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 
contractor's license is $50.  
    Subd. 7.  [VALIDITY.] A limited well 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 
contractor's license by the date stated in the license.  
    (b) The renewal application fee shall be set by the 
commissioner under section 16A.128.  
    (c) The renewal application must include information that 
the applicant has met continuing education requirements 
established by the commissioner by rule.  
    Subd. 9.  [LATE RENEWAL APPLICATION.] If a licensee submits 
a renewal application after the required renewal date: 
    (1) the licensee must include an additional late fee set by 
the commissioner under section 16A.128; and 
    (2) the licensee may not conduct activities authorized by 
the limited well contractor's license until the renewal 
application, renewal application fee, and late fee are submitted.
     Sec. 32.  [103I.533] [LIMITED WELL SEALING 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 sealing 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 sealing 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 passes the 
examination and meets qualifications 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 sealing contractor's license.  
    Subd. 5.  [BOND.] (a) As a condition of being issued a 
limited well sealing contractor's license, the applicant must 
submit a corporate surety bond for $10,000 approved by the 
commissioner.  The bond must be conditioned to pay the state on 
unlawful performance of work regulated by this chapter in this 
state.  The bond is in lieu of other license bonds required by a 
political subdivision of the state.  
    (b) From proceeds of the bond, 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 sealing 
contractor's license is $50.  
    Subd. 7.  [VALIDITY.] A limited well sealing 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 sealing 
contractor's license by the date stated in the license.  
    (b) The renewal application fee shall be set by the 
commissioner under section 16A.128.  
    (c) The renewal application must include information that 
the applicant has met continuing education requirements 
established by the commissioner by rule.  
    Subd. 9.  [LATE RENEWAL APPLICATION.] If a licensee submits 
a renewal application after the required renewal date: 
    (1) the licensee must include an additional late fee set by 
the commissioner under section 16A.128; and 
    (2) the licensee may not conduct activities authorized by 
the limited well sealing contractor's license until the renewal 
application, renewal application fee, and late fee are submitted.
    Sec. 33.  [103I.535] [ELEVATOR SHAFT CONTRACTOR'S LICENSE.] 
    Subdivision 1.  [APPLICATION.] (a) An individual must file 
an application and application fee with the commissioner to 
apply for an elevator shaft 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 an 
elevator shaft 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 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 an elevator shaft contractor's 
license to the applicant.  
    Subd. 5.  [BOND.] (a) As a condition of being issued an 
elevator shaft contractor's license, the applicant must submit a 
corporate surety bond for $10,000 approved by the commissioner.  
The bond must be conditioned to pay the state on unlawful 
performance of work regulated by this chapter in this state.  
    (b) From proceeds of the bond, 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 an elevator shaft 
contractor's license is $50.  
    Subd. 7.  [VALIDITY.] An elevator shaft 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 license by the date 
stated in the license.  
    (b) The renewal application fee shall be set by the 
commissioner under section 16A.128.  
    (c) The renewal application must include information that 
the applicant has met continuing education requirements 
established by the commissioner by rule.  
    Subd. 9.  [LATE RENEWAL APPLICATION.] If a licensee submits 
a renewal application after the required renewal date: 
    (1) the licensee must include an additional late fee set by 
the commissioner under section 16A.128; and 
    (2) the licensee may not conduct activities authorized by 
the elevator shaft contractor's license until the renewal 
application, renewal application fee, and late fee are submitted.
    Sec. 34.  [103I.541] [MONITORING WELL CONTRACTORS.] 
    Subdivision 1.  [INITIAL REGISTRATION AFTER DECEMBER 31, 
1990.] After December 31, 1990, a person seeking initial 
registration as a monitoring well contractor must meet 
examination and experience requirements adopted by the 
commissioner by rule. 
    Subd. 2.  [VALIDITY.] A monitoring well contractor's 
registration is valid until the date prescribed in the 
registration by the commissioner.  
    Subd. 3.  [BOND.] (a) As a condition of being issued a 
monitoring well contractor's registration, the applicant must 
submit a corporate surety bond for $10,000 approved by the 
commissioner.  The bond must be conditioned to pay the state on 
unlawful performance of work regulated by this chapter in this 
state.  The bond is in lieu of other license bonds required by a 
political subdivision of the state.  
    (b) From proceeds of the bond, the commissioner may 
compensate persons injured or suffering financial loss because 
of a failure of the applicant to properly perform work or duties.
    Subd. 4.  [RENEWAL.] (a) A person must file an application 
and a renewal application fee to renew the registration by the 
date stated in the registration.  
    (b) The renewal application fee shall be set by the 
commissioner under section 16A.128.  
    (c) The renewal application must include information that 
the applicant has met continuing education requirements 
established by the commissioner by rule.  
    Subd. 5.  [LATE RENEWAL APPLICATION.] If a registered 
person submits a renewal application after the required renewal 
date: 
    (1) the registered person must include an additional late 
fee set by the commissioner under section 16A.128; and 
    (2) the registered person may not conduct activities 
authorized by the monitoring well contractor's registration 
until the renewal application, renewal application fee, and late 
fee are submitted. 
    Sec. 35.  [103I.545] [REGISTRATION OF DRILLING MACHINES 
REQUIRED.] 
    Subdivision 1.  [DRILLING MACHINE.] (a) A person may not 
use a drilling machine such as a cable tool, rotary tool, hollow 
rod tool, or auger for a drilling activity requiring a license 
or registration under this chapter unless the drilling machine 
is registered with the commissioner.  
    (b) A person must apply for the registration on forms 
prescribed by the commissioner and submit a $50 registration fee.
    (c) A registration is valid for one year.  
    Subd. 2.  [PUMP HOIST.] (a) A person may not use a machine 
such as a pump hoist for an activity requiring a license or 
registration under this chapter to repair wells, seal wells, or 
install pumps unless the machine is registered with the 
commissioner.  
    (b) A person must apply for the registration on forms 
prescribed by the commissioner and submit a $50 registration fee.
    (c) A registration is valid for one year.  

                          EXPLORATORY BORINGS 
    Sec. 36.  [103I.601] [EXPLORATORY BORING PROCEDURES.] 
    Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
section, the following words have the meanings given them.  
    (b) "Data" includes samples and factual noninterpreted data 
obtained from exploratory borings and samples including 
analytical results.  
    (c) "Parcel" means a government section, fractional 
section, or government lot.  
    (d) "Samples" means at least a one-quarter portion of all 
samples from exploratory borings that are customarily collected 
by the explorer.  [156A.071 s. 1] 
    Subd. 2.  [LICENSE REQUIRED TO MAKE BORINGS.] (a) Except as 
provided in paragraph (b), a person may not make an exploratory 
boring without an exploratory borer's license.  
    (b) An explorer may designate a responsible individual to 
supervise and oversee the making of exploratory borings.  Before 
an individual supervises or oversees an exploratory boring, the 
individual must take and pass an examination relating to 
construction, location, and sealing of exploratory borings.  A 
professional engineer registered under sections 326.02 to 326.15 
or a certified professional geologist is not required to take 
the examination required in this subdivision but must be 
licensed to make an exploratory boring.  [156A.071 s. 2] 
    Subd. 3.  [NOTIFICATION OF PROJECT CONSTRUCTION.] (a) By 30 
days before making an exploratory boring, an explorer must 
register with the commissioner of natural resources and provide 
a copy of the registration to the commissioner of health.  The 
registration must include:  
    (1) the identity of the firm, association, or company 
engaged in exploratory boring; and 
    (2) the identification of an agent, including the agent's 
business address.  
    (b) The commissioner of natural resources may require a 
bond, security, or other assurance from an explorer if the 
commissioner of natural resources has reasonable doubts about 
the explorer's financial ability to comply with requirements of 
law relating to exploratory boring.  
    (c) An explorer shall annually register with the 
commissioner of natural resources while conducting exploratory 
boring.  [156A.071 s. 3] 
    Subd. 4.  [MAP OF BORINGS.] By ten days before beginning 
exploratory boring, an explorer must submit to the commissioners 
of health and natural resources a county road map having a scale 
of one-half inch equal to one mile, as prepared by the 
department of transportation, showing the location of each 
proposed exploratory boring to the nearest estimated 40 acre 
parcel.  [156A.071 s. 4] 
    Subd. 5.  [ACCESS TO DRILL SITES.] The commissioners of 
health, natural resources, and the pollution control agency, the 
community health board as authorized under section 145A.04, and 
their officers and employees shall have access to exploratory 
boring sites to inspect the drill holes, drilling, and sealing 
of the borings, and to sample ambient air and drilling waters, 
and to measure the radioactivity of the waste drill cuttings at 
the drilling site at the time of observation.  [156A.071 s. 5] 
    Subd. 6.  [EMERGENCY NOTIFICATION.] The explorer must 
promptly notify the commissioners of health, natural resources, 
and the pollution control agency, and the authorized agent of 
the commissioner of health of an occurrence during exploratory 
boring that has a potential for significant adverse health or 
environmental effects.  The explorer must take reasonable action 
to minimize the adverse effects.  [156A.071 s. 6] 
    Subd. 7.  [INSPECTION OF DATA BEFORE SUBMISSION.] The 
commissioner of health may, if necessary, inspect data before 
its submission under section 36.  The data examined by the 
commissioner is not public data before it is submitted under 
section 37.  [156A.071 s. 6] 
    Subd. 8.  [PERMANENT AND TEMPORARY SEALING PROCEDURES.] 
Exploratory borings must be temporarily or permanently sealed 
according to rules adopted by the commissioner.  [156A.071 s. 7] 
    Subd. 9.  [SEALING REPORT.] (a) By 30 days after permanent 
or temporary sealing of an exploratory boring, the explorer must 
submit a report to the commissioners of health and natural 
resources.  
    (b) The report must be on forms provided by the 
commissioner of health and include:  
    (1) the location of each drill hole in as large a scale as 
possible, which is normally prepared as part of the explorer's 
record; 
    (2) the type and thickness of overburden and rock 
encountered; 
    (3) identification of water bearing formations encountered; 
    (4) identification of hydrologic conditions encountered; 
    (5) method of sealing used; 
    (6) methods of construction and drilling used; and 
    (7) average scintillometer reading of waste drill cuttings 
before backfilling of the recirculation pits.  [156A.071 s. 8] 
    Sec. 37.  [103I.605] [SUBMISSION OF DATA FROM EXPLORATORY 
BORINGS.] 
    Subdivision 1.  [REQUIREMENT.] Data obtained from 
exploratory borings must be submitted by the explorer to the 
commissioner of natural resources as provided in this section.  
[156A.071 s. 9] 
    Subd. 2.  [MINERAL DEPOSIT EVALUATION DATA.] (a) In 
applying for a permit required for activities relating to 
mineral deposit evaluation, which means examining an area to 
determine the quality and quantity of minerals, excluding 
exploratory boring but including obtaining a bulk sample, by 
excavating, trenching, constructing shafts, ramps, tunnels, 
pits, and producing refuse and other associated activities, but 
does not include activities intended, by themselves, for 
commercial exploitation of the ore body, the explorer must 
submit to the commissioner of natural resources data relevant to 
the proposal under consideration.  The explorer may identify 
portions of the data that, if released, would impair the 
competitive position of the explorer submitting the data.  Data 
identified must be considered to be not public data.  
    (b) If requested to disclose the data, the commissioner 
shall mail notice of the request to the explorer and determine 
whether release of the data would impair the competitive 
position of the explorer submitting the data.  If the 
commissioner determines that release of the data would impair 
the competitive position of the explorer submitting the data, 
the commissioner may not release the data to a person other than 
parties to the proceedings relating to the permit under 
consideration.  Parties to the proceedings shall maintain the 
confidentiality of data.  
    (c) Data that are classified as not public may not be 
released by the commissioner until 30 days after mailed notice 
to the explorer of the commissioner's intention to release the 
data.  The commissioner may not release data to a person engaged 
in exploration, mining, milling, or related industry pertaining 
to minerals.  If the commissioner determines to release data, 
the explorer may demand a contested case hearing on the 
commissioner's determination or may withdraw the permit 
application and the data may not be released.  
    (d) Any person aggrieved by the decision of the 
commissioner may appeal the decision according to chapter 14.  
[156A.071 s. 9] 
    Subd. 3.  [MINE DEVELOPMENT DATA.] In applying for a permit 
required for mine development, which means activities undertaken 
after mineral deposit evaluation for commercial exploitation of 
the ore body, the explorer must submit to the commissioner of 
natural resources data relevant to the proposal under 
consideration.  The data is public data and persons submitting 
or releasing the data are not subject to civil or criminal 
liability for its use by others.  [156A.071 s. 9] 
    Subd. 4.  [EXPLORATION DATA.] By six months after 
termination by the explorer of a lease or other type of 
exploration agreement on a property the data from the 
exploration must be submitted to the commissioner of natural 
resources.  The data is public data and persons submitting or 
releasing the data are not subject to civil or criminal 
liability for its use by others.  [156A.071 s. 9] 
    Subd. 5.  [DESIGNATION OF SAMPLES TO BE SUBMITTED.] The 
commissioner of natural resources shall designate the samples to 
be submitted, and specify where the sample is to be delivered.  
If an explorer requires certain samples in their entirety, the 
commissioner of natural resources may waive the requirement for 
a one-fourth portion of the samples.  Samples submitted are 
property of the state.  [156A.071 s. 9] 

                  GROUNDWATER THERMAL EXCHANGE DEVICES 
    Sec. 38.  [103I.621] [PERMITS FOR GROUNDWATER THERMAL 
EXCHANGE DEVICES.] 
    Subdivision 1.  [PERMIT.] (a) Notwithstanding any 
department or agency rule to the contrary, the commissioner 
shall issue, on request by the owner of the property and payment 
of the permit fee, permits for the reinjection of water by a 
properly constructed well into the same aquifer from which the 
water was drawn for the operation of a groundwater thermal 
exchange device. 
    (b) As a condition of the permit, an applicant must agree 
to allow inspection by the commissioner during regular working 
hours for department inspectors.  
    (c) Not more than 200 permits may be issued for small 
systems having maximum capacities of 20 gallons per minute or 
less.  The small systems are subject to inspection twice a year. 
    (d) Not more than ten permits may be issued for larger 
systems having maximum capacities from 20 to 50 gallons per 
minute.  The larger systems are subject to inspection four times 
a year.  
    (e) A person issued a permit must comply with this section 
for the permit to be valid.  
    Subd. 2.  [WATER USE REQUIREMENTS APPLY.] Water use permit 
requirements and penalties under chapter 103F and related rules 
adopted and enforced by the commissioner of natural resources 
apply to groundwater thermal exchange permit recipients.  A 
person who violates a provision of this section is subject to 
enforcement or penalties for the noncomplying activity that are 
available to the commissioner and the pollution control agency.  
    Subd. 3.  [CONSTRUCTION REQUIREMENTS.] (a) Withdrawal and 
reinjection for the groundwater thermal exchange device must be 
accomplished by a closed system in which the waters drawn for 
thermal exchange do not have contact or commingle with water 
from other sources or with polluting material or substances.  
The closed system must be constructed to allow an opening for 
inspection by the commissioner.  
    (b) Wells that are part of a groundwater thermal exchange 
system may not serve another function, except water may be 
supplied to the domestic water system if: 
    (1) the supply is taken from the thermal exchange system 
ahead of the heat exchange unit; and 
    (2) the water discharges to a break tank through an air gap 
that is at least twice the effective diameter of the water inlet 
to the tank.  
    (c) A groundwater thermal exchange system may be used for 
domestic water heating only if the water heating device is an 
integral part of the heat exchange unit that is used for space 
heating and cooling. 
    Subd. 4.  [RULES.] The commissioner may adopt rules to 
administer this section. 

                        VERTICAL HEAT EXCHANGERS 
    Sec. 39.  [103I.641] [VERTICAL HEAT EXCHANGERS.] 
    Subdivision 1.  [REQUIREMENTS.] A person may not drill or 
construct an excavation used to install a vertical heat 
exchanger unless the person is a well contractor.  
    Subd. 2.  [REGULATIONS FOR VERTICAL HEAT EXCHANGERS.] 
Vertical heat exchangers must be constructed, maintained, and 
sealed under the provisions of this chapter.  
    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 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. 

                     UNDERGROUND SPACE DEVELOPMENT 
    Sec. 40.  [103I.661] [MINED UNDERGROUND SPACE DEVELOPMENT.] 
    Subdivision 1.  [COMMISSIONER OF NATURAL RESOURCES REVIEW.] 
The commissioners of natural resources and health shall review 
all project plans that involve dewatering of underground 
formations for construction and operation of mined underground 
space to determine the effects of the proposal on the quality 
and quantity of underground waters in and adjacent to the areas 
where the mined underground space is to be developed.  [469.141 
s. 1] 
    Subd. 2.  [PERMIT FOR WATER REMOVAL.] A mined underground 
space project involving or affecting the quality and quantity of 
groundwater may not be developed until a water use permit for 
the appropriation of waters under chapter 103G has been issued 
by the commissioner of natural resources.  [469.141 s. 4] 

                  UNDERGROUND STORAGE OF GAS OR LIQUID 
    Sec. 41.  [103I.681] [PERMIT FOR UNDERGROUND STORAGE OF GAS 
OR LIQUID.] 
    Subdivision 1.  [PERMIT REQUIRED.] (a) The state, a person, 
partnership, association, private or public corporation, county, 
municipality, or other political subdivision of the state may 
not displace groundwater in consolidated or unconsolidated 
formations by the underground storage of a gas or liquid under 
pressure without an underground storage permit from the 
commissioners of natural resources and health.  [84.57] 
    (b) The state, a person, a public corporation, county, 
municipality, or other political subdivision of the state may 
not store a gas or liquid, except water, below the natural 
surface of the ground by using naturally occurring rock 
materials as a storage reservoir without an underground storage 
permit from the commissioners of health and natural resources.  
[84.621 s. 1] 
    Subd. 2.  [APPLICATION.] (a) A person may apply for an 
underground storage permit by filing an application form with 
the commissioner of natural resources accompanied by the 
application fee and maps, plans, and specifications describing 
the proposed displacement of groundwater and the underground 
storage of gases or liquids and other data required by the 
commissioner.  
    (b) The commissioner of natural resources shall prescribe 
the application form to apply for an underground storage 
permit.  [84.58 s. 1] 
    (c) The commissioner of natural resources may require an 
applicant to demonstrate to the commissioner that the applicant 
has adequately provided a method to ensure payment of any 
damages resulting from the operation of a gas or liquid storage 
reservoir.  [84.61] 
    Subd. 3.  [HEARING REQUIRED.] (a) An underground storage 
permit allowing displacement of groundwater may not be issued by 
the commissioner of natural resources or health without holding 
a public hearing on the issuance of the permit.  [84.58 s. 2] 
    (b) By 20 days after receiving a complete application, the 
commissioner of natural resources shall set a time and location 
for the hearing.  [84.58 s. 3] 
    Subd. 4.  [NOTICE OF HEARING.] The hearing notice must:  
    (1) state the date, place, and time of the hearing; 
    (2) show the location of groundwater and surface water and 
property affected by the proposed underground storage; 
    (3) be published by the applicant, or by the commissioner 
of natural resources if the proceeding is initiated by the 
commissioner of natural resources or health, once each week for 
two successive weeks in a legal newspaper that is published in 
the county where a part or all of the affected groundwater or 
surface waters are located; and 
    (4) be mailed by the commissioner of natural resources to 
the county auditor and the chief executive official of an 
affected municipality.  [84.58 s. 4] 
    Subd. 5.  [PROCEDURE AT HEARING.] (a) The hearing must be 
public and conducted by the commissioner of natural resources or 
a referee appointed by the commissioner.  
    (b) Affected persons must have an opportunity to be heard.  
Testimony must be taken under oath and the parties must have the 
right of cross-examination.  The commissioner of natural 
resources shall provide a stenographer, at the expense of the 
applicant, to take testimony and a record of the testimony, and 
all proceedings at the hearing shall be taken and preserved.  
    (c) The commissioner of natural resources is not bound by 
judicial rules of evidence or of pleading and procedure.  [84.58 
s. 5] 
    Subd. 6.  [SUBPOENAS.] The commissioner of natural 
resources or health may subpoena and compel the attendance of 
witnesses and the production of books and documents material to 
the purposes of the hearing.  Disobedience of a subpoena, or 
refusal to be sworn, or refusal to answer as a witness, is 
punishable as contempt in the same manner as a contempt of the 
district court.  The commissioner of natural resources must file 
a complaint of the disobedience with the district court of the 
county where the disobedience or refusal occurred.  [84.58 s. 6] 
    Subd. 7.  [REQUIRED FINDINGS.] An order granting a permit 
for the proposed storage may not be issued unless it contains 
and is based on a finding stating:  
    (1) the proposed storage will be confined to geological 
stratum or strata lying more than 500 feet below the surface of 
the soil; 
    (2) the proposed storage will not substantially impair or 
pollute groundwater or surface water; and 
    (3) the public convenience and necessity of a substantial 
portion of the gas-consuming public in the state will be served 
by the proposed project.  [84.60] 
    Subd. 8.  [ORDER CONDITIONS.] The order granting the permit 
must contain conditions and restrictions that will reasonably 
protect:  
    (1) private property or an interest not appropriated; 
    (2) the rights of the property owners and owners of an 
interest in property located within the boundaries of the 
proposed storage area, or persons claiming under the owners, to 
explore for, drill for, produce or develop for the recovery of 
oil or gas or minerals under the property, and to drill wells on 
the property to develop and produce water; provided that the 
exploration, drilling, producing, or developing complies with 
orders and rules of the commissioner of natural resources that 
protect underground storage strata or formations against 
pollution and against the escape of gas; and 
    (3) public resources of the state that may be adversely 
affected by the proposed project.  [84.60] 
    Subd. 9.  [PUBLICATION OF FINDINGS, CONCLUSIONS, 
ORDERS.] (a) The commissioner of natural resources shall mail 
notice of any findings, conclusions, and orders made after the 
hearing to:  
    (1) the applicant; 
    (2) parties who entered an appearance at the hearing; 
    (3) the county auditor; and 
    (4) the chief executive officer of an affected municipality.
    (b) The commissioner of natural resources must publish 
notice of findings, conclusions, and orders made after the 
hearing at least once each week for two successive weeks in a 
legal newspaper in the county where a part or all of the 
proposed project is located.  The costs of the publication must 
be paid by the applicant.  [84.59 s. 7] 
    Subd. 10.  [APPEAL OF COMMISSIONER'S DETERMINATION.] An 
interested party may appeal the determination of the 
commissioner of natural resources or health to the court of 
appeals in accordance with the provisions of chapter 14.  
[84.59] 
    Subd. 11.  [PERMIT FEE SCHEDULE.] (a) The commissioner of 
natural resources or health shall adopt a permit fee schedule 
under chapter 14.  The schedule may provide minimum fees for 
various classes of permits, and additional fees, which may be 
imposed subsequent to the application, based on the cost of 
receiving, processing, analyzing, and issuing the permit, and 
the actual inspecting and monitoring of the activities 
authorized by the permit, including costs of consulting services.
    (b) A fee may not be imposed on a state or federal 
governmental agency applying for a permit.  
    (c) The fee schedule may provide for the refund of a fee, 
in whole or in part, under circumstances prescribed by the 
commissioner of natural resources.  Permit fees received must be 
deposited in the state treasury and credited to the general 
fund.  The amount of money necessary to pay the refunds is 
appropriated annually from the general fund to the commissioner 
of natural resources.  [84.59 s. 8] 
    Sec. 42.  [103I.685] [ABANDONMENT OF UNDERGROUND STORAGE 
PROJECT.] 
    An underground storage project for which an underground 
storage permit is granted may not be abandoned, or a natural or 
artificial opening extending from the underground storage area 
to the ground surface be filled, sealed, or otherwise closed to 
inspection, except after written approval by the commissioner of 
natural resources or health and in compliance with conditions 
that the commissioners may impose.  [84.611] 
    Sec. 43.  [103I.691] [CERTIFICATE OF USE.] 
    A person may not use a gas or liquid storage reservoir 
under an underground storage permit unless the right to use the 
property affected by the project has been acquired and a notice 
of the acquisition filed with the commissioner of natural 
resources or health.  The commissioner of natural resources or 
health must issue a certificate approving use of the gas or 
liquid storage reservoir.  [84.62] 

                              ENFORCEMENT 
    Sec. 44.  [103I.701] [ADMINISTRATIVE REMEDIES.] 
    Subdivision 1.  [DENIAL OF LICENSE OR REGISTRATION 
RENEWAL.] (a) The commissioner may deny an application for 
renewal of a license or registration if the applicant has 
violated a provision of this chapter.  
    (b) Failure to submit a well report, well sealing report, 
or to report an excavation to construct an elevator shaft, or to 
obtain a well permit before construction is a violation of this 
chapter and the commissioner may refuse renewal. 
    Subd. 2.  [SUSPENSION, REVOCATION OF LICENSE OR 
REGISTRATION.] (a) A license or registration issued under this 
chapter may be suspended or revoked for violation of provisions 
of this chapter.  
    (b) The commissioner may, after providing a person with 
reasonable notice and a hearing, suspend or revoke the license 
or registration of the person upon finding that the person has 
violated a provision of this chapter that applies to the 
person's license or registration.  
    Subd. 3.  [PROCEDURE.] Proceedings by the commissioner 
under this section and review shall be according to chapter 14.  
    Subd. 4.  [CORRECTIVE ORDERS.] The commissioner may issue 
corrective orders for persons to comply with the provisions of 
this chapter.  
    Sec. 45.  [103I.705] [ADMINISTRATIVE PENALTIES.] 
    Subdivision 1.  [PENALTY AUTHORIZED.] The commissioner may 
impose an administrative penalty under this section against a 
person who does not comply with an order of the commissioner.  
    Subd. 2.  [SEALING WELLS AND ELEVATOR SHAFTS.] A well 
contractor or limited well sealing contractor who seals a well, 
a monitoring well contractor who seals a monitoring well, or a 
well contractor or an elevator shaft contractor who seals a hole 
that was used for an elevator shaft under a corrective order of 
the commissioner in a manner that does not comply with the water 
well construction code, shall be assessed an administrative 
penalty of $500.  
    Subd. 3.  [CONTAMINATION RELATING TO WELL CONSTRUCTION.] A 
well contractor, limited well contractor, or monitoring well 
contractor working under a corrective order of the commissioner 
who fails to comply with the rules in the water well 
construction code relating to location of wells in relation to 
potential sources of contamination, grouting, materials, or 
construction techniques shall be assessed an administrative 
penalty of $500.  
    Subd. 4.  [WELL CONSTRUCTION AND MACHINERY.] A well 
contractor, limited well contractor, or monitoring well 
contractor working under a corrective order shall be assessed an 
administrative penalty of $250 if the contractor fails as 
required in the order:  
    (1) to have a plan review approved before a well is 
constructed; construct a well without if a plan review is 
required; 
    (2) to have a permit before a well is constructed; 
    (3) to register a drilling rig or pump rig or to display 
the state decal and the registration number on the machine; or 
    (4) to comply with the rules in the water well construction 
code relating to disinfection of wells and submission of well 
construction or well sealing logs and water samples.  
    Subd. 5.  [FALSE INFORMATION.] A person under a corrective 
order shall be assessed an administration penalty of $250 if the 
person:  
    (1) fails to disclose or falsifies information about the 
status and location of wells on property before signing an 
agreement of sale or transfer of the property; or 
    (2) fails to disclose or falsifies information on a well 
certificate.  
    Subd. 6.  [FAILURE TO SEAL WELL OR HAVE CONSTRUCTION 
PERMIT.] A person under a corrective order shall be assessed an 
administrative penalty of $250 if the person:  
    (1) employs a well contractor on the person's property and 
fails to obtain a permit for construction of the well; or 
    (2) fails to have a well sealed in accordance with the 
rules.  
    Sec. 46.  [103I.711] [IMPOUNDING OF EQUIPMENT.] 
    Subdivision 1.  [IMPOUNDMENT.] If the commissioner issues 
an order finding that a person is constructing, repairing, or 
sealing wells or installing pumps or pumping equipment or 
excavating holes for installing elevator shafts or hydraulic 
cylinders without a license or registration as required under 
this chapter, a sheriff on receipt of the order must seize and 
impound equipment of the person.  
    Subd. 2.  [RELEASE.] The equipment must remain in the 
custody of the sheriff until the equipment is released under the 
order of a court or until the commissioner orders the sheriff to 
release the equipment.  
    Sec. 47.  [103I.715] [CRIMINAL PENALTIES.] 
    Subdivision 1.  [MISDEMEANORS.] A person who violates a 
provision of this chapter is guilty of a misdemeanor.  
    Subd. 2.  [GROSS MISDEMEANORS.] A person is guilty of a 
gross misdemeanor who:  
    (1) willfully violates a provision of this chapter or order 
of the commissioner; 
    (2) engages in the business of drilling or making wells, 
sealing wells, installing pumps or pumping equipment, or 
constructing elevator shafts without a license required by this 
chapter; or 
    (3) engages in the business of exploratory boring without 
an exploratory borer's license under this chapter.  [156A.08 s. 
1] 
    Subd. 3.  [PROSECUTION AND VENUE.] A violation of this 
chapter shall be prosecuted by the county attorney in the county 
where the violation occurred or is occurring.  The trial shall 
be held in that county.  [156A.08 s. 1] 
    Sec. 48.  [REPEALER.] 
    Minnesota Statutes 1988, sections 84.57; 84.58; 84.59; 
84.60; 84.61; 84.611; 84.62; 84.621; 105.51, subdivision 3; 
156A.01; 156A.02; 156A.03; 156A.031; 156A.04; 156A.05; 156A.06; 
156A.07; 156A.071; 156A.075; 156A.08; 156A.10; and 156A.11, are 
repealed.  
    Sec. 49.  [EFFECTIVE DATE.] 
     Section 9 is effective July 1, 1989, but a well 
notification is not required to be filed with the commissioner 
for construction of a well until after December 31, 1989. 
    Section 14 relating to disclosing wells to buyers and 
transferees is effective July 1, 1990. 
    Section, 31, 32, and 33 are effective July 1, 1990, and 
limited well contractor licenses and limited well sealing 
licenses may not be issued until after that date.  
    Sections 24 and 33 relating to permits required for 
elevator shafts and elevator shaft contractor licenses are 
effective July 1, 1990. 

                               ARTICLE 4 

                           WATER CONSERVATION 
    Section 1.  Minnesota Statutes 1988, section 105.41, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COMMISSIONER'S PERMISSION.] (a) It is 
unlawful for the state, any person, partnership, or association, 
private or public corporation, county, municipality, or other 
political subdivision of the state to appropriate or use any 
waters of the state, surface or underground, without the written 
permit of the commissioner.  This section does not apply to the 
use of water for domestic purposes serving less than 25 
persons.  The commissioner shall set up a statewide training 
program to provide training in the conduct of pumping tests and 
data acquisition programs. 
    (b) A permit may not be issued under this section unless 
the permit is consistent with state, regional, and local water 
and related land resources management plans.  
    (c) The commissioner may not modify or restrict the amount 
of appropriation from a groundwater source authorized in a 
permit issued for agricultural irrigation under section 105.44, 
subdivision 8, between May 1 and October 1 of any year, unless 
the commissioner determines the authorized amount of 
appropriation endangers a domestic water supply.  
    Sec. 2.  Minnesota Statutes 1988, section 105.41, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [WATER ALLOCATION RULES, PRIORITIES.] (a) The 
commissioner shall submit to the legislature by January 1, 1975, 
for its approval, proposed adopt rules governing the for 
allocation of waters among potential water users.  These rules 
must be based on the following priorities for the consumptive 
appropriation and use of water: 
    (1) first priority:  domestic water supply, excluding 
industrial and commercial uses of municipal water supply., and 
use for power production that meets the contingency planning 
provisions of section 105.417, subdivision 5; 
    (2) second priority:  any a use of water that involves 
consumption of less than 10,000 gallons of water a per day.  In 
this section "consumption" means water withdrawn from a supply 
that is lost for immediate further use in the area.; 
    (3) third priority:  agricultural irrigation and processing 
of agricultural products, involving consumption in excess of 
10,000 gallons a per day, and processing of agricultural 
products.; 
    (4) fourth priority:  power production, involving 
consumption in excess of 10,000 gallons a day. in excess of the 
use provided for in the contingency plan developed under section 
105.417, subdivision 5; and 
    (5) fifth priority:  other uses, other than agricultural 
irrigation, processing of agricultural products, and power 
production, involving consumption in excess of 10,000 gallons a 
per day and nonessential uses of public water supplies as 
defined in section 105.518, subdivision 1. 
    (b) For the purposes of this section, "consumption" shall 
mean water withdrawn from a supply which is lost for immediate 
further use in the area.  
    (c) Appropriation and use of surface water from streams 
during periods of flood flows and high water levels must be 
encouraged subject to consideration of the purposes for use, 
quantities to be used, and the number of persons appropriating 
water. 
    (d) Appropriation and use of surface water from lakes of 
less than 500 acres in surface area must be discouraged. 
    (e) The treatment and reuse of water from nonconsumptive 
uses shall be encouraged.  
    (f) Diversions of water from the state for use in other 
states or regions of the United States or Canada must be 
discouraged. 
    No permit may be issued under this section unless it is 
consistent with state, regional, and local water and related 
land resources management plans, if regional and local plans are 
consistent with statewide plans.  The commissioner must not 
modify or restrict the amount of appropriation from a 
groundwater source authorized in a permit issued under section 
105.44, subdivision 8, between May 1 and October 1 of any year, 
unless the commissioner determines the authorized amount of 
appropriation endangers any domestic water supply.  
    Sec. 3.  Minnesota Statutes 1988, section 105.41, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [USE LESS THAN MINIMUM.] No Except for local 
permits under section 473.877, subdivision 1, a permit is not 
required for the appropriation and use of less than a minimum 
amount to be established by the commissioner by rule.  Permits 
for more than the minimum amount but less than an intermediate 
amount to be specified by the commissioner by rule must be 
processed and approved at the municipal, county, or regional 
level based on rules to be established by the commissioner by 
January 1, 1977.  The rules must include provisions for 
reporting to the commissioner the amounts of water appropriated 
under local permits. 
    Sec. 4.  Minnesota Statutes 1988, section 105.41, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [CERTAIN COOLING SYSTEM PERMITS PROHIBITED.] (a) 
The commissioner may not issue a water use permit from a 
groundwater source for a once-through cooling system using in 
excess of five million gallons annually. 
    (b) For purposes of this subdivision, a once-through 
cooling system means a cooling or heating system for human 
comfort that draws a continuous stream of water from a 
groundwater source to remove or add heat for cooling, heating, 
or refrigeration. 
    Sec. 5.  Minnesota Statutes 1988, section 105.41, 
subdivision 5, is amended to read: 
    Subd. 5.  [RECORDS REQUIRED.] Records of the amount of 
water appropriated or used must be kept for each installation.  
The readings and the total amount of water appropriated must be 
reported annually to the commissioner of natural resources on or 
before February 15 of the following year upon forms to be 
supplied by the commissioner. 
    The records must be submitted with an annual water 
appropriation processing fee in the amount established in 
accordance with the following schedule of fees for each water 
appropriation permit in force at any time during the year:  (1) 
irrigation permits, $15 for the first permitted 160 acres or 
part of 160 acres, and $25 for each additional permitted 160 
acres or part of 160 acres; (2) for nonirrigation permits, $5 
for each ten million gallons or portion of that amount permitted 
each year.  However, the fee must not exceed a total of $500 per 
permit.  
    Subd. 5a.  [WATER USE PROCESSING FEE.] (a) Except as 
provided in paragraph (b), a water use processing fee not to 
exceed $2,000 must be prescribed by the commissioner in 
accordance with the following schedule of fees for each water 
use permit in force at any time during the year:  
    (1) 0.05 cent per 1,000 gallons for the first 50 million 
gallons per year; and 
    (2) 0.1 cents per 1,000 gallons for the amounts greater 
than 50 million gallons per year. 
    (b) For once-through cooling systems as defined in 
subdivision 1c, a water use processing fee must be prescribed by 
the commissioner in accordance with the following schedule of 
fees for each water use permit in force at any time during the 
year:  
    (1) 5.0 cents per 1,000 gallons until December 31, 1991; 
    (2) 10.0 cents for 1,000 gallons from January 1, 1992, 
until December 31, 1996; and 
    (3) 15.0 cents per 1,000 gallons after January 1, 1997. 
    (c) The fee is payable regardless of based on the amount of 
water appropriated permitted during the year and in no case may 
the fee be less than $25.  
    (d) Failure to pay the fee is sufficient cause for revoking 
a permit.  No fee may be imposed on any state agency, as defined 
in section 16B.01, or federal governmental agency holding a 
water appropriation permit. 
    Sec. 6.  Minnesota Statutes 1988, section 105.418, is 
amended to read: 
    105.418 [CONSERVATION OF PUBLIC WATER SUPPLIES.] 
    (a) During periods of critical water deficiency as 
determined by the governor and declared by executive order of 
the governor, public water supply authorities appropriating 
water shall adopt and enforce restrictions consistent with rules 
adopted by the commissioner of natural resources within their 
areas of jurisdiction.  The restrictions must limit lawn 
sprinkling, car washing, golf course and park irrigation, and 
other nonessential uses and have appropriate penalties for 
failure to comply with the restrictions.  
    (b) The commissioner may adopt emergency rules according to 
sections 14.29 to 14.36 relating to matters covered by this 
section during the year 1977. 
    (c)  Disregard of critical water deficiency orders, even 
though total appropriation remains less than that permitted, 
is adequate grounds for immediate modification of any a public 
water supply authority's appropriator's water use permit. 
     Sec. 7.  Minnesota Statutes 1988, section 473.877, is 
amended by adding a subdivision to read: 
    Subd. 4.  [APPROPRIATIONS FROM SMALL WATERCOURSES.] (a) 
This subdivision applies in Hennepin and Ramsey counties to the 
following public waters:  
    (1) a public water basin or wetland wholly within the 
county that is less than 500 acres; or 
    (2) a protected watercourse that has a drainage area of 
less than 50 square miles. 
    (b) An appropriation of water that is below the minimum 
established in section 105.41, subdivision 1b, for a 
nonessential use, as defined under section 105.418, is 
prohibited unless a permit is obtained from the watershed 
district or watershed management organization having 
jurisdiction over the public water basin, wetland, or 
watercourse.  The watershed district or watershed management 
organization may impose a fee to cover the cost of issuing the 
permit.  This subdivision must be enforced by the home rule 
charter or statutory city where the appropriation occurs.  
Violation of this subdivision is a petty misdemeanor, except 
that a second violation within a year is a misdemeanor.  
Affected cities shall mail notice of this law to affected 
riparian landowners. 
    Sec. 8.  [CONSUMPTIVE WATER USE STUDY.] 
    The commissioner of natural resources shall conduct a study 
of consumptive water use and its impact on existing aquifers.  
The commissioner shall review methods of reducing consumptive 
water use, including the conversion of once-through cooling 
systems to alternative systems.  The commissioner shall report 
to the legislative water commission by February 15, 1990, the 
commissioner's recommendations for alternatives to the 
once-through cooling systems, including the environmental and 
economic implications of the alternatives.  The recommendations 
must include:  options for converting once-through cooling 
systems; a time schedule for phasing out existing systems; 
recommended technologies to be used to accomplish the 
conversion; recommendations for a fee structure that will make 
once-through cooling systems and conventional systems equal in 
operating costs; recommendations on the use of deep aquifers for 
once-through cooling; recommendations on authorizing systems of 
better efficiency; and advisability of systems that recharge 
aquifers. 

                               ARTICLE 5 

                          PESTICIDE AMENDMENTS 
    Section 1.  Minnesota Statutes 1988, section 18B.01, 
subdivision 5, is amended to read: 
    Subd. 5.  [COMMERCIAL APPLICATOR.] "Commercial applicator" 
means a person who has or is required to have a commercial 
applicator license.  
    Sec. 2.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [COLLECTION SITE.] "Collection site" means a 
permanent or temporary designated location with scheduled hours 
for authorized collection where pesticide end users may bring 
their waste pesticides. 
    Sec. 3.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [CONTAINER.] "Container" means a portable device 
in which a material is stored, transported, treated, disposed 
of, or otherwise handled. 
    Sec. 4.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 6b.  [CORRECTIVE ACTION.] "Corrective action" means 
an action taken to minimize, eliminate, or clean up an incident. 
    Sec. 5.  Minnesota Statutes 1988, section 18B.01, 
subdivision 12, is amended to read: 
    Subd. 12.  [INCIDENT.] "Incident" means a flood, fire, 
tornado, transportation accident, storage container rupture, 
portable container rupture, leak, spill, emission discharge, 
escape, disposal, or other event that releases or immediately 
threatens to release a pesticide accidentally or otherwise into 
the environment, and may cause unreasonable adverse effects on 
the environment.  "Incident" does not include the lawful use or 
intentional a release of a from normal use of a pesticide or 
practice in accordance with its approved labeling law. 
    Sec. 6.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 14a.  [LOCAL UNIT OF GOVERNMENT.] "Local unit of 
government" means a statutory or home rule charter city, town, 
county, soil and water conservation district, watershed 
district, another special purpose district, and local or 
regional board. 
    Sec. 7.  Minnesota Statutes 1988, section 18B.01, 
subdivision 15, is amended to read: 
    Subd. 15.  [NONCOMMERCIAL APPLICATOR.] "Noncommercial 
applicator" means a person with who has or is required to have a 
noncommercial applicator license.  
    Sec. 8.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 15a.  [OWNER OF REAL PROPERTY.] "Owner of real 
property" means a person who is in possession of, has the right 
of control, or controls the use of real property, including a 
person who has legal title to property and a person who has the 
right to use or contract use of the property under a lease, 
contract for deed, or license.  
    Sec. 9.  Minnesota Statutes 1988, section 18B.01, 
subdivision 19, is amended to read: 
    Subd. 19.  [PESTICIDE DEALER.] "Pesticide dealer" means a 
person with who has or is required to have a pesticide dealer 
license.  
    Sec. 10.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 19a.  [PESTICIDE END USER.] "Pesticide end user" 
means a farmer or other person who uses, intends to use, or owns 
a pesticide.  Pesticide end user does not include a dealer, 
manufacturer, formulator, or packager. 
    Sec. 11.  Minnesota Statutes 1988, section 18B.01, 
subdivision 21, is amended to read: 
    Subd. 21.  [PRIVATE APPLICATOR.] "Private applicator" means 
a person certified or required to be certified to use or 
supervise use of restricted use pesticides. 
    Sec. 12.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 24b.  [RETURNABLE CONTAINER.] "Returnable container" 
means a container for distributing pesticides that enables the 
unused pesticide product to be returned to the distributor, 
manufacturer, or packager, and includes bulk, mini-bulk, or 
dedicated containers designed to protect the integrity of the 
pesticide and prevent contamination through the introduction of 
unauthorized materials. 
    Sec. 13.  Minnesota Statutes 1988, section 18B.01, 
subdivision 26, is amended to read: 
    Subd. 26.  [SAFEGUARD.] "Safeguard" means a facility, 
equipment, device, or system, or a combination of these, 
designed to prevent the escape or movement of a pesticide from 
the place it is stored or kept under conditions that might 
otherwise result in contamination of the environment an incident 
as required by rule. 
    Sec. 14.  Minnesota Statutes 1988, section 18B.01, 
subdivision 30, is amended to read: 
    Subd. 30.  [STRUCTURAL PEST CONTROL APPLICATOR.] 
"Structural pest control applicator" means a person with who has 
or is required to have a structural pest control applicator 
license. 
    Sec. 15.  Minnesota Statutes 1988, section 18B.01, is 
amended by adding a subdivision to read: 
    Subd. 31a.  [WASTE PESTICIDE.] "Waste pesticide" means a 
pesticide that the pesticide end user considers a waste.  A 
waste pesticide can be a canceled pesticide, an unusable 
pesticide, or a usable pesticide. 
    Sec. 16.  Minnesota Statutes 1988, section 18B.04, is 
amended to read: 
    18B.04 [PESTICIDE IMPACT ON WATER QUALITY ENVIRONMENT.] 
    The commissioner shall: 
    (1) determine the impact of pesticides on the environment, 
including the impacts on surface water and ground 
water groundwater in this state; 
    (2) develop best management practices involving pesticide 
distribution, storage, handling, use, and disposal; and 
    (3) cooperate with and assist other state agencies and 
local governments to protect public health and the environment 
from harmful exposure to pesticides. 
     Sec. 17.  [18B.045] [PESTICIDE MANAGEMENT PLAN.] 
    Subdivision 1.  [DEVELOPMENT.] The commissioner shall 
develop a pesticide management plan for the prevention, 
evaluation, and mitigation of occurrences of pesticides or 
pesticide breakdown products in groundwaters and surface waters 
of the state.  The pesticide management plan must include 
components promoting prevention, developing appropriate 
responses to the detection of pesticides or pesticide breakdown 
products in groundwater and surface waters, and providing 
responses to reduce or eliminate continued pesticide movement to 
groundwater and surface water.  
    Subd. 2.  [COORDINATION.] The pesticide management plan 
shall be coordinated and developed with other state agency plans 
and with other state agencies through the environmental quality 
board.  In addition, the University of Minnesota extension 
service, farm organizations, farmers, environmental 
organizations, and industry shall be involved in the pesticide 
management plan development.  
    Sec. 18.  [18B.063] [STATE USES OF PESTICIDES AND 
NUTRIENTS.] 
    The state shall use integrated pest management techniques 
in its management of public lands, including roadside 
rights-of-way, parks, and forests; and shall use planting 
regimes that minimize the need for pesticides and added 
nutrients.  
    Sec. 19.  [18B.064] [PESTICIDE USE INFORMATION.] 
    The commissioner shall monitor urban and rural pesticide 
use on a biennial basis.  Information shall be collected and 
automated consistent with section 116C.41, subdivision 1. 
    Sec. 20.  [18B.065] [WASTE PESTICIDE COLLECTION PROGRAM.] 
    Subdivision 1.  [COLLECTION AND DISPOSAL.] The commissioner 
of agriculture shall establish and operate a program to collect 
waste pesticides.  The program shall be made available to 
pesticide end users whose waste generating activity occurs in 
this state. 
    Subd. 2.  [IMPLEMENTATION.] (a) The commissioner may obtain 
a United States Environmental Protection Agency hazardous waste 
identification number to manage the waste pesticides collected.  
    (b) The commissioner may limit the type and quantity of 
waste pesticides accepted for collection and may assess 
pesticide end users for portions of the costs incurred. 
    Subd. 3.  [INFORMATION AND EDUCATION.] The commissioner 
shall provide informational and educational materials regarding 
waste pesticides and the proper management of waste pesticides 
to the public. 
    Subd. 4.  [CONSULTATION WITH POLLUTION CONTROL AGENCY.] The 
commissioner shall develop the program in this section in 
consultation and cooperation with the pollution control agency. 
    Subd. 5.  [WASTE PESTICIDE COLLECTION ACCOUNT.] A waste 
pesticide account is established in the state treasury.  
Assessments collected under subdivision 2 shall be deposited in 
the state treasury and credited to the waste pesticide account.  
Money in the account is appropriated to the commissioner to pay 
for costs incurred to implement the waste pesticide collection 
program. 
    Subd. 6.  [RULES.] The commissioner may adopt rules to 
administer this section. 
    Subd. 7.  [COOPERATIVE AGREEMENTS.] The commissioner may 
enter into cooperative agreements with state agencies and local 
units of government for administration of the waste pesticide 
collection program. 
    Sec. 21.  Minnesota Statutes 1988, section 18B.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROHIBITED PESTICIDE USE.] (a) A person may not 
use, store, handle, distribute, or dispose of a pesticide, 
rinsate, pesticide container, or pesticide application equipment 
in a manner: 
    (1) that is inconsistent with a label or labeling as 
defined by FIFRA; 
    (2) that endangers humans, damages agricultural products, 
food, livestock, fish, or wildlife, or beneficial insects; or 
    (3) that will cause unreasonable adverse effects on the 
environment.  
    (b) A person may not direct a pesticide on onto property 
beyond the boundaries of the target site.  A person may not 
apply a pesticide resulting in damage to adjacent property. 
    (c) A person may not directly apply a pesticide on a human 
by overspray or target site spray. 
    (d) A person may not apply a pesticide in a manner so as to 
expose a worker in an immediately adjacent, open field. 
    Sec. 22.  Minnesota Statutes 1988, section 18B.07, 
subdivision 3, is amended to read: 
    Subd. 3.  [POSTING.] (a) If the pesticide labels prescribe 
specific hourly or daily intervals for human reentry following 
application, the person applying the pesticide must post fields 
sites, buildings, or areas where the pesticide has been 
applied.  The posting must be done with placards in accordance 
with label requirements and rules adopted under this section.  
    (b) Fields Sites being treated with pesticides through 
irrigation systems must be posted throughout the period of 
pesticide treatment.  The posting must be done in accordance 
with labeling and rules adopted under this chapter.  
    Sec. 23.  Minnesota Statutes 1988, section 18B.07, 
subdivision 4, is amended to read: 
    Subd. 4.  [PESTICIDE SAFEGUARDS AT APPLICATION SITES.] A 
person may not allow a pesticide, rinsate, or unrinsed pesticide 
container to be stored, kept, or to remain in or on any site 
without safeguards adequate to prevent the escape or movement of 
the pesticides from the site an incident. 
    Sec. 24.  Minnesota Statutes 1988, section 18B.07, 
subdivision 6, is amended to read: 
    Subd. 6.  [USE OF PUBLIC WATERS FOR FILLING EQUIPMENT.] (a) 
A person may not fill pesticide application equipment directly 
from public or other waters of the state, as defined in section 
105.37, subdivision 14, unless the equipment contains proper and 
functioning anti-backsiphoning mechanisms.  The person may not 
introduce pesticides into the application equipment until after 
filling the equipment from the public waters.  
    (b) This subdivision does not apply to permitted 
applications of aquatic pesticides to public waters. 
    Sec. 25.  Minnesota Statutes 1988, section 18B.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PERMIT REQUIRED.] (a) A person may not 
apply pesticides through an irrigation system without a 
chemigation permit from the commissioner.  Only one A 
chemigation permit is required for two one or more wells or 
other sources of irrigation water that are protected from 
contamination by the same devices as required by rule.  The 
commissioner may allow irrigation to be used to apply pesticides 
on crops and land, including agricultural, nursery, turf, golf 
course, and greenhouse sites.  
    (b) A person must apply for a chemigation permit on forms 
prescribed by the commissioner.  
    Sec. 26.  Minnesota Statutes 1988, section 18B.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [EQUIPMENT.] A chemigation system must be fitted 
with effective antisiphon devices or check valves that prevent 
the backflow of pesticides or pesticide-water mixtures into 
water supplies or other materials during times of irrigation 
system failure or equipment shutdown.  The devices or valves 
must be installed between: 
    (1) the irrigation system pump or water source discharge 
and the point of pesticide injection; and 
    (2) the point of pesticide injection and the pesticide 
supply.  
    Sec. 27.  Minnesota Statutes 1988, section 18B.08, 
subdivision 4, is amended to read: 
    Subd. 4.  [APPLICATION FEE.] A person initially applying 
for a chemigation permit must pay a nonrefundable application 
fee of $50 for each well that is to be used in applying the 
pesticides by irrigation.  A person who holds a fertilizer 
chemigation permit under article 6, section 11, is exempt from 
the fee in this subdivision.  
    Sec. 28.  [18B.115] [USE OF CHLORDANE PROHIBITED.] 
    The state, a state agency, a political subdivision of the 
state, a person, or other legal entity may not sell, use, or 
apply the pesticide chlordane or its derivative heptachlor 
within the state.  
    Sec. 29.  [18B.135] [SALE OF PESTICIDES IN RETURNABLE 
CONTAINERS AND MANAGEMENT OF UNUSED PORTIONS.] 
    Subdivision 1.  [ACCEPTANCE OF RETURNABLE CONTAINERS.] (a) 
A person distributing, offering for sale, or selling a pesticide 
must accept empty pesticide containers and the unused portion of 
pesticide that remains in the original container from a 
pesticide end user if: 
    (1) the pesticide was purchased after the effective date of 
this section; and 
    (2) a place is not designated in the county for the public 
to return empty pesticide containers and the unused portion of 
pesticide.  
    (b) This subdivision does not prohibit the use of 
refillable and reusable pesticide containers. 
    (c) The legislative water commission must prepare a report 
and make a recommendation to the legislature on the handling of 
waste pesticide containers and waste pesticides.  
    Subd. 2.  [RULES.] The commissioner may adopt rules to 
implement this section, including procedures and standards 
prescribing the exemption of certain pesticide products and 
pesticide containers. 

                      PESTICIDE RELEASE INCIDENTS 
    Sec. 30.  Minnesota Statutes 1988, section 18B.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) A person may not use or 
distribute a pesticide in this state unless it is registered 
with the commissioner.  Pesticide registrations expire on 
December 31 of each year and may be renewed on or before that 
date for the following calendar year.  
    (b) Registration is not required if a pesticide is shipped 
from one plant or warehouse to another plant or warehouse 
operated by the same person and used solely at the plant or 
warehouse as an ingredient in the formulation of a pesticide 
that is registered under this chapter. 
    (c) An unregistered pesticide that was previously 
registered with the commissioner may be used only with the 
written permission of the commissioner.  
    (d) Each pesticide with a unique United States 
Environmental Protection Agency pesticide registration number or 
a unique brand name must be registered with the commissioner.  
    Sec. 31.  Minnesota Statutes 1988, section 18B.26, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPLICATION FEE.] (a) An application for initial 
registration and renewal must be accompanied by a nonrefundable 
application fee of $125 for each pesticide to be registered.  A 
registrant shall pay an annual application fee for each 
pesticide to be registered, and this fee is set at one-tenth of 
one percent for 1990 and at one-fifth of one percent thereafter 
of annual gross sales within the state, with a minimum fee of 
$150.  A registrant paying more than the minimum fee shall pay 
the application fee in quarterly installments by 30 days after 
the end of each calendar quarter based on the gross sales of the 
pesticide by the registrant for the preceding calendar quarter. 
The fee for disinfectants and sanitizers is $150.  Of the amount 
collected after July 1, 1990, $600,000 per year must be credited 
to the waste pesticide account under section 20, subdivision 5. 
    (b) An additional fee of $100 must be paid by the applicant 
for each pesticide to be registered if the application is a 
renewal application that is submitted after December 31. 
    (c) An additional fee of $200 must be paid by the applicant 
for each pesticide distributed or used in the state before 
initial state registration.  A registrant must annually report 
to the commissioner the amount and type of each registered 
pesticide sold, offered for sale, or otherwise distributed in 
the state.  The report shall be filed at the time of payment of 
the registration application fee.  The commissioner shall 
specify the form of the report and require additional 
information deemed necessary to determine the amount and type of 
pesticides annually distributed in the state.  The information 
required shall include the brand name, amount, and formulation 
of each pesticide sold, offered for sale, or otherwise 
distributed in the state, but the information collected, if made 
public, shall be reported in a manner which does not identify a 
specific brand name in the report.  
    Sec. 32.  Minnesota Statutes 1988, section 18B.26, 
subdivision 5, is amended to read: 
    Subd. 5.  [APPLICATION REVIEW AND REGISTRATION.] (a) The 
commissioner may not deny the registration of a pesticide 
because the commissioner determines the pesticide is not 
essential. 
    (b) The commissioner shall review each application and may 
approve, deny, or cancel the registration of any pesticide.  The 
commissioner may impose state use and distribution restrictions 
on a pesticide as part of the registration to prevent 
unreasonable adverse effects on the environment. 
    (c) The commissioner must notify the applicant of the 
approval, denial, cancellation, or state use or distribution 
restrictions within 30 days after the application and fee are 
received. 
    (d) The applicant may request a hearing on any adverse 
action of the commissioner within 30 days after being notified 
by the commissioner. 
    Sec. 33.  Minnesota Statutes 1988, section 18B.26, is 
amended by adding a subdivision to read: 
    Subd. 6.  [DISCONTINUANCE OF REGISTRATION.] To ensure 
complete withdrawal from distribution or further use of a 
pesticide, a person who intends to discontinue a pesticide 
registration must:  
    (1) terminate a further distribution within the state and 
continue to register the pesticide annually for two successive 
years; 
     (2) initiate and complete a total recall of the pesticide 
from all distribution in the state within 60 days from the date 
of notification to the commissioner of intent to discontinue 
registration; or 
     (3) submit to the commissioner evidence adequate to 
document that no distribution of the registered pesticide has 
occurred in the state.  
    Sec. 34.  [18B.035] [PESTICIDE EDUCATION AND TRAINING.] 
    Subdivision 1.  [EDUCATION AND TRAINING.] (a) The 
commissioner shall develop, in conjunction with the University 
of Minnesota extension service, innovative educational and 
training programs addressing pesticide concerns including:  
    (1) water quality protection; 
    (2) endangered species; 
    (3) pesticide residues in food and water; 
    (4) worker protection; 
    (5) chronic toxicity; 
    (6) integrated pest management; and 
    (7) pesticide disposal.  
    (b) The commissioner shall appoint educational planning 
committees which must include representatives of industry. 
    (c) Specific current regulatory concerns must be discussed 
and, if appropriate, incorporated into each training session.  
    (d) The commissioner may approve programs from private 
industry and nonprofit organizations that meet minimum 
requirements for education, training, and certification.  
    Subd. 2.  [TRAINING MANUAL AND EXAMINATION 
DEVELOPMENT.] The commissioner, in conjunction with the 
University of Minnesota extension service, shall continually 
revise and update pesticide applicator training manuals and 
examinations.  The manuals and examinations must be written to 
meet or exceed the minimum standards required by the United 
States Environmental Protection Agency and pertinent state 
specific information.  Questions in the examinations must be 
determined by the responsible agencies.  Manuals and 
examinations must include pesticide management practices that 
discuss prevention of pesticide occurrence in groundwaters of 
the state.  
     Subd. 3.  [PESTICIDE APPLICATOR EDUCATION AND EXAMINATION 
REVIEW BOARD.] (a) The commissioner shall establish and chair a 
pesticide applicator education and examination review board.  
This board must meet at least once a year before the initiation 
of pesticide educational planning programs.  The purpose of the 
board is to discuss topics of current concern that can be 
incorporated into pesticide applicator training sessions and 
appropriate examinations.  This board shall review and evaluate 
the various educational programs recently conducted and 
recommend options to increase overall effectiveness.  
    (b) Membership on this board must represent industry, 
private, nonprofit organizations, and other governmental 
agencies, including the University of Minnesota, the pollution 
control agency, department of health, department of natural 
resources, and department of transportation.  
    (c) Membership on the board must include representatives 
from environmental protection organizations. 
     Sec. 35.  Minnesota Statutes 1988, section 18B.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) Except as provided in 
paragraph (b), a person may not distribute at wholesale or 
retail or possess restricted use pesticides or bulk pesticides 
with an intent to distribute them to an ultimate user without a 
pesticide dealer license.  
    (b) The pesticide dealer license requirement does not apply 
to:  
    (1) a licensed commercial applicator, noncommercial 
applicator, or structural pest control applicator who uses 
restricted use pesticides only as an integral part of a 
pesticide application service; 
    (2) a federal, state, county, or municipal agency using 
restricted use pesticides for its own programs; or 
    (3) a licensed pharmacist, physician, dentist, or 
veterinarian when administering or dispensing a restricted use 
pesticide for use in the pharmacist's, physician's, dentist's, 
or veterinarian's practice; or 
    (4) a distributor or wholesaler shipping restricted use 
pesticides to commercial applicators who are the ultimate users. 
    (c) A licensed pesticide dealer may sell restricted use 
pesticides only to an applicator licensed or certified by the 
commissioner, unless a sale is allowed by rule. 
    Sec. 36.  Minnesota Statutes 1988, section 18B.31, 
subdivision 3, is amended to read: 
    Subd. 3.  [LICENSE.] A pesticide dealer license:  
    (1) expires on December 31 of each year unless it is 
suspended or revoked before that date; and 
    (2) is not transferable to another person or location; and 
    (3) must be prominently displayed to the public in the 
pesticide dealer's place of business.  
    Sec. 37.  Minnesota Statutes 1988, section 18B.31, 
subdivision 5, is amended to read: 
    Subd. 5.  [APPLICATION FEE.] (a) An application for a 
pesticide dealer license must be accompanied by a nonrefundable 
application fee of $50. 
    (b) If an application for renewal of a pesticide dealer 
license is not filed before January 1 of the year for which the 
license is to be issued, an additional fee of $20 must be paid 
by the applicant before the license is issued. 
    (c) An application for a duplicate pesticide dealer's 
license must be accompanied by a nonrefundable application fee 
of $10.  
    Sec. 38.  Minnesota Statutes 1988, section 18B.32, 
subdivision 2, is amended to read: 
    Subd. 2.  [LICENSES.] (a) A structural pest control license:
    (1) expires on December 31 of the year for which the 
license is issued; and 
    (2) is not transferable; and 
    (3) must be prominently displayed to the public in the 
structural pest controller's place of business.  
    (b) The commissioner shall establish categories of master, 
journeyman, and fumigator for a person to be licensed under a 
structural pest control license.  
    Sec. 39.  Minnesota Statutes 1988, section 18B.33, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) A person may not apply a 
pesticide for hire without a commercial applicator license for 
the appropriate use categories except a licensed structural pest 
control applicator.  
    (b) A person with a commercial applicator license may not 
apply pesticides on or into surface waters without an aquatic 
category endorsement on a commercial applicator license. 
    (c) A commercial applicator licensee must have a valid 
license identification card when applying pesticides for hire 
and must display it upon demand by an authorized representative 
of the commissioner or a law enforcement officer.  The 
commissioner shall prescribe the information required on the 
license identification card.  
    Sec. 40.  Minnesota Statutes 1988, section 18B.33, 
subdivision 3, is amended to read: 
    Subd. 3.  [LICENSE.] A commercial applicator license:  
    (1) expires on December 31 of the year for which it is 
issued, unless suspended or revoked before that date; and 
    (2) is not transferable to another person; and 
    (3) must be prominently displayed to the public in the 
commercial applicator's place of business. 
    Sec. 41.  Minnesota Statutes 1988, section 18B.33, 
subdivision 7, is amended to read: 
    Subd. 7.  [APPLICATION FEES.] (a) A person initially 
applying for or renewing a commercial applicator license as a 
business entity must pay a nonrefundable application fee of $50, 
except a person who is an employee of a business entity that has 
a commercial applicator license and is applying for or renewing 
a commercial applicator license as an individual the 
nonrefundable application fee is $25. 
    (b) If a renewal application is not filed before March 1 of 
the year for which the license is to be issued, an additional 
penalty fee of $10 must be paid before the commercial applicator 
license may be issued. 
    (c) An application for a duplicate commercial applicator 
license must be accompanied by a nonrefundable application fee 
of $10.  
    Sec. 42.  Minnesota Statutes 1988, section 18B.34, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
commercial applicator, certified private applicator, or licensed 
structural pest control applicator, a person, including a 
government employee, may not use a restricted use pesticide in 
performance of official duties without having a noncommercial 
applicator license for an appropriate use category.  
    (b) A person with a licensed noncommercial applicator 
license may not apply pesticides into or on surface waters 
without an aquatic category endorsement on the license.  
    (c) A licensee must have a valid license identification 
card when applying pesticides and must display it upon demand by 
an authorized representative of the commissioner or a law 
enforcement officer.  The license identification card must 
contain information required by the commissioner.  
    Sec. 43.  Minnesota Statutes 1988, section 18B.34, 
subdivision 2, is amended to read: 
    Subd. 2.  [LICENSE.] A noncommercial applicator license: 
    (1) expires on December 31 of the year for which it is 
issued unless suspended or revoked before that date; and 
    (2) is not transferable; and 
    (3) must be prominently displayed to the public in the 
noncommercial applicator's place of business.  
    Sec. 44.  Minnesota Statutes 1988, section 18B.34, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEES.] (a) A person initially applying for or 
renewing a noncommercial applicator license as a business entity 
must pay a nonrefundable application fee of $50.  A person who 
is an employee of a business entity that has a noncommercial 
applicator license and is applying for or renewing a 
noncommercial applicator license as an individual must pay a 
nonrefundable application fee of $25, except an applicant who is 
a government employee who uses pesticides in the course of 
performing official duties must pay a nonrefundable application 
fee of $10.  
    (b) If an application for renewal of a noncommercial 
license is not filed before March 1 in the year for which the 
license is to be issued, an additional penalty fee of $10 must 
be paid before the renewal license may be issued.  
    (c) An application for a duplicate noncommercial applicator 
license must be accompanied by a nonrefundable application fee 
of $10.  
    Sec. 45.  Minnesota Statutes 1988, section 18B.36, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIREMENT.] (a) Except for a licensed 
commercial or noncommercial applicator, only a person certified 
as a private applicator may use or supervise the use of a 
restricted use pesticide to produce an agricultural commodity: 
    (1) as a traditional exchange of services without financial 
compensation; or 
    (2) on a site owned, rented, or managed by the person or 
the person's employees.  
    (b) A private applicator may not purchase a restricted use 
pesticide without presenting a certified private applicator card 
or the card number. 
    Sec. 46.  Minnesota Statutes 1988, section 18B.36, 
subdivision 2, is amended to read: 
    Subd. 2.  [CERTIFICATION.] (a) The commissioner shall 
prescribe certification requirements and provide training that 
meets or exceeds United States Environmental Protection Agency 
standards to certify persons as private applicators and provide 
information relating to changing technology to help ensure a 
continuing level of competency and ability to use pesticides 
properly and safely.  The training may be done through 
cooperation with other government agencies and must be a minimum 
of three hours in duration. 
    (b) A person must apply to the commissioner for 
certification as a private applicator.  After completing the 
certification requirements, which must include an examination as 
determined by the commissioner, an applicant must be certified 
as a private applicator to use restricted use pesticides.  The 
certification is for a period of five three years from the 
applicant's nearest birthday. 
    (c) The commissioner shall issue a private applicator card 
to a private applicator. 
    Sec. 47.  Minnesota Statutes 1988, section 18B.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PESTICIDE DEALER.] (a) A pesticide dealer 
must maintain records of all sales of restricted use pesticides 
as required by the commissioner.  Records must be kept at the 
time of sale on forms supplied by the commissioner or on the 
pesticide dealer's forms if they are approved by the 
commissioner.  
    (b) Records must be submitted annually with the renewal 
application for a pesticide dealer license or upon request of 
the commissioner.  
    (c) Copies of records required under this subdivision must 
be maintained by the pesticide dealer for a period of five years 
after the date of the pesticide sale.  
    Sec. 48.  Minnesota Statutes 1988, section 18B.37, 
subdivision 2, is amended to read: 
    Subd. 2.  [COMMERCIAL AND NONCOMMERCIAL APPLICATORS.] (a) A 
commercial or noncommercial applicator, or the applicator's 
authorized agent, must maintain a record of pesticides used on 
each site.  The record must include the: 
    (1) date of the pesticide use; 
    (2) time the pesticide application was completed; 
    (3) brand name of the pesticide, the United States 
Environmental Protection Agency registration number, and dosage 
used; 
    (4) number of units treated; 
    (5) temperature, wind speed, and wind direction; 
    (6) location of the site where the pesticide was applied; 
    (7) name and address of the customer; 
    (8) name and signature of applicator, name of company, 
license number of applicator, and address, and signature of 
applicator company; and 
    (9) any other information required by the commissioner. 
    (b) Portions of records not relevant to a specific type of 
application may be omitted upon approval from the commissioner.  
    (c) All information for this record requirement must be 
contained in a single page document for each pesticide 
application, except a map may be attached to identify treated 
areas.  For the rights-of-way and wood preservative categories, 
the required record may not exceed five pages.  Invoices An 
invoice containing the required information may constitute the 
required record.  The commissioner shall make sample forms 
available to meet the requirements of this paragraph. 
    (d) A commercial applicator must give a copy of the record 
to the customer when the application is completed.  
    (e) Records must be retained by the applicator, company, or 
authorized agent for five years after the date of treatment.  
    Sec. 49.  Minnesota Statutes 1988, section 18B.37, 
subdivision 3, is amended to read: 
    Subd. 3.  [STRUCTURAL PEST CONTROL APPLICATORS.] (a) A 
structural pest control applicator must maintain a record of 
each structural pest control application conducted by that 
person or by the person's employees.  The record must include 
the: 
    (1) date of structural pest control application; 
    (2) target pest; 
    (3) brand name of the pesticide, United States 
Environmental Protection Agency registration number, and amount 
used; 
    (4) for fumigation, the temperature and exposure time; 
    (5) time the pesticide application was completed; 
    (5) (6) name and address of the customer; 
    (6) (7) name and signature of structural pest control 
applicator's company applicator; name of company and address of 
applicator or company, applicator's signature, and license 
number of applicator; and 
    (7) (8) any other information required by the commissioner. 
    (b) Invoices All information for this record requirement 
must be contained in a single-page document for each pesticide 
application.  An invoice containing the required information may 
constitute the record.  
    (c) Records must be retained for five years after the date 
of treatment.  
    (d) A copy of the record must be given to a person who 
ordered the application that is present at the site where the 
structural pest control application is conducted, placed in a 
conspicuous location at the site where the structural pest 
control application is conducted immediately after the 
application of the pesticides, or delivered to the person who 
ordered an application or the owner of the site.  The 
commissioner must make sample forms available that meet the 
requirements of this subdivision. 
    Sec. 50.  Minnesota Statutes 1988, section 18B.37, 
subdivision 4, is amended to read: 
    Subd. 4.  [STORAGE, HANDLING, AND DISPOSAL PLAN.] A 
commercial, noncommercial, or structural pest control applicator 
or the licensed business that the applicator is employed by must 
develop and maintain a plan that describes its pesticide 
storage, handling, and disposal practices.  The plan must be 
kept at a principal business site or location within this state 
and must be submitted to the commissioner upon request on forms 
provided by the commissioner.  The plan must be available for 
inspection by the commissioner.  
     Sec. 51.  Minnesota Statutes 1988, section 43A.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
positions are held by employees who are: 
    (a) chosen by election or appointed to fill an elective 
office; 
    (b) heads of agencies required by law to be appointed by 
the governor or other elective officers, and the executive or 
administrative heads of departments, bureaus, divisions, and 
institutions specifically established by law in the unclassified 
service; 
    (c) deputy and assistant agency heads and one confidential 
secretary in the agencies listed in subdivision 1a; 
    (d) the confidential secretary to each of the elective 
officers of this state and, for the secretary of state, state 
auditor, and state treasurer, an additional deputy, clerk, or 
employee; 
    (e) intermittent help employed by the commissioner of 
public safety to assist in the issuance of vehicle licenses; 
    (f) employees in the offices of the governor and of the 
lieutenant governor and one confidential employee for the 
governor in the office of the adjutant general; 
    (g) employees of the Washington, D.C., office of the state 
of Minnesota; 
     (h) employees of the legislature and of legislative 
committees or commissions; provided that employees of the 
legislative audit commission, except for the legislative 
auditor, the deputy legislative auditors, and their confidential 
secretaries, shall be employees in the classified service; 
     (i) presidents, vice-presidents, deans, other managers and 
professionals in academic and academic support programs, 
administrative or service faculty, teachers, research 
assistants, and student employees eligible under terms of the 
federal economic opportunity act work study program in the 
school and resource center for the arts, state universities and 
community colleges, but not the custodial, clerical, or 
maintenance employees, or any professional or managerial 
employee performing duties in connection with the business 
administration of these institutions; 
     (j) officers and enlisted persons in the national guard; 
     (k) attorneys, legal assistants, examiners, and three 
confidential employees appointed by the attorney general or 
employed with the attorney general's authorization; 
     (l) judges and all employees of the judicial branch, 
referees, receivers, jurors, and notaries public, except 
referees and adjusters employed by the department of labor and 
industry; 
     (m) members of the state patrol; provided that selection 
and appointment of state patrol troopers shall be made in 
accordance with applicable laws governing the classified 
service; 
     (n) chaplains employed by the state; 
    (o) examination monitors and intermittent training 
instructors employed by the departments of employee relations 
and commerce and by professional examining boards; 
    (p) student workers; and 
    (q) employees unclassified pursuant to other statutory 
authority; and 
    (r) intermittent help employed by the commissioner of 
agriculture to perform duties relating to pesticides, 
fertilizer, and seed regulation. 
    Sec. 52.  [PESTICIDE CONTAINER COLLECTION AND RECYCLING 
PILOT PROJECT.] 
    Subdivision 1.  [PROJECT.] The department of agriculture, 
in consultation and cooperation with the commissioner of the 
pollution control agency and the Minnesota extension service, 
shall design and implement a pilot collection project, to be 
completed by June 30, 1991, to: 
    (1) collect, recycle, and dispose of empty, triple-rinsed 
pesticide containers; 
    (2) develop, demonstrate, and promote proper pesticide 
container management; and 
    (3) evaluate the current pesticide container management 
methods and the cause and extent of the problems associated with 
pesticide containers. 
    Subd. 2.  [COLLECTION AND DISPOSAL.] The department of 
agriculture shall provide for the establishment and operation of 
temporary collection sites for pesticide containers.  The 
department may limit the type and quantity of pesticide 
containers acceptable for collection. 
    Subd. 3.  [INFORMATION AND EDUCATION.] The department 
shall, in consultation with the Minnesota extension service, 
develop informational and educational materials to promote 
proper methods of pesticide container management. 
    Subd. 4.  [REPORT.] During the pilot project, the 
department of agriculture shall conduct surveys and collect 
information on proper and improper pesticide container storage 
and disposal.  By November 30, 1991, the department shall report 
to the legislature its conclusions from the project and 
recommendations for additional legislation or rules governing 
the management of pesticide containers. 
    Subd. 5.  [MANAGEMENT AND DISPOSAL.] The department of 
agriculture or other entity collecting pesticide containers must 
manage and dispose of the containers in compliance with 
applicable federal and state requirements. 
    Sec. 53.  [REPEALER.] 
    Minnesota Statutes 1988, sections 18A.49; 18B.15; 18B.16; 
18B.18; 18B.19; 18B.20; 18B.21; 18B.22; 18B.23; and 18B.25, are 
repealed. 
    Sec. 54.  [EFFECTIVE DATE.] 
    Section 29, subdivisions 1 and 2, relating to the sale and 
distribution of pesticides in returnable containers is effective 
July 1, 1994. 

                               ARTICLE 6 

                              CHAPTER 18C 

           FERTILIZERS, SOIL AMENDMENTS, AND PLANT AMENDMENTS 
    Section 1.  [18C.001] [CITATION.] 
    This chapter may be cited as the "fertilizer, soil 
amendment, and plant amendment law."  [17.711] 
    Sec. 2.  [18C.005] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to this chapter.  [17.713 s. 1] 
    Subd. 2.  [BEST MANAGEMENT PRACTICES.] "Best management 
practices" means practices, techniques, and measures developed 
under article 1, section 6, subdivision 2.  
    Subd. 3.  [BRAND.] "Brand" means a term, design, or 
trademark used in connection with one or several grades of 
fertilizers or soil and plant amendment materials.  [17.713 s. 
2] 
    Subd. 4.  [CHEMIGATION.] "Chemigation" means a process of 
applying fertilizers to land or crops including agricultural, 
nursery, turf, golf course, or greenhouse sites in or with 
irrigation water during the irrigation process. 
    Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
commissioner of agriculture.  [17.713 s. 4a] 
    Subd. 6.  [COMPOST.] "Compost" is a material derived 
primarily or entirely from biological decomposition of 
vegetative organic matter or animal manure that does not have 
inorganic fertilizer added other than to promote decomposition.  
    Subd. 7.  [CUSTOM APPLY.] "Custom apply" means to apply a 
fertilizer, soil amendment, or plant amendment product for 
compensation. 
    Subd. 8.  [DEFICIENCY.] "Deficiency" means that amount of 
nutrient found by analysis is less than the amount guaranteed 
resulting from a lack of nutrient ingredients or from lack of 
uniformity. 
    Subd. 9.  [DISTRIBUTOR.] "Distributor" means a person who 
imports, consigns, manufactures, produces, compounds, mixes, or 
blends fertilizer, or who offers for sale, sells, barters, or 
otherwise supplies fertilizer or soil and plant amendments in 
this state.  [17.713 s. 5] 
    Subd. 10.  [ENVIRONMENT.] "Environment" means surface 
water, groundwater, air, land, plants, humans, and animals and 
their interrelationships. 
    Subd. 11.  [FERTILIZER.] "Fertilizer" means a substance 
containing one or more recognized plant nutrients that is used 
for its plant nutrient content and designed for use or claimed 
to have value in promoting plant growth.  Fertilizer does not 
include animal and vegetable manures that are not manipulated, 
marl, lime, limestone, and other products exempted by rule by 
the commissioner. 
    Subd. 12.  [FIXED LOCATION.] "Fixed location" means all 
stationary fertilizer facility operations, owned or operated by 
a person, located in the same plant location or locality.  
[17.713 s. 6a] 
    Subd. 13.  [GRADE.] "Grade" means the percentage of total 
nitrogen (N), available phosphorus (P) or phosphoric acid 
(P2O5), and soluble potassium (K) or soluble potash (K2O) stated 
in whole numbers in the same terms, order, and percentages as in 
the guaranteed analysis except the grade of bone meals, manures, 
and similar raw materials may be stated in fractional units, and 
specialty fertilizers may be stated in fractional units of less 
than one percent of total nitrogen, available phosphorus or 
phosphoric acid, and soluble potassium or soluble potash.  
[17.713 s. 7] 
    Subd. 14.  [GUARANTOR.] "Guarantor" means the person who is 
guaranteeing the material to be as stated in the guaranteed 
analysis.  [17.713 s. 9] 
    Subd. 15.  [INCIDENT.] "Incident" means a flood, fire, 
tornado, transportation accident, storage container rupture, 
portable container rupture, leak, spill, emission, discharge, 
escape, disposal, or other event that releases or immediately 
threatens to release a fertilizer, soil amendment, or plant 
amendment accidentally or otherwise into the environment, and 
may cause unreasonable adverse effects on the environment.  
Incident does not include a release resulting from the normal 
use of a product or practice in accordance with law. 
    Subd. 16.  [INVESTIGATIONAL ALLOWANCE.] "Investigational 
allowance" means an allowance for variations inherent in the 
taking, preparation, and analysis of an official sample of 
fertilizer. 
    Subd. 17.  [LABEL.] "Label" means the display of all 
written, printed or graphic matter upon the immediate container 
or the statement accompanying a fertilizer, soil amendment, or 
plant amendment.  [17.713 s. 9a] 
    Subd. 18.  [LABELING.] "Labeling" means all written, 
printed or graphic matter on or accompanying a fertilizer, soil 
amendment, or plant amendment or advertisements, brochures, 
posters, television, radio or other announcements used in 
promoting the sale of fertilizers, soil amendments, or plant 
amendments.  [17.713 s. 9b] 
    Subd. 19.  [MANIPULATED.] "Manipulated" means fertilizers 
that are manufactured, blended, or mixed, or animal or vegetable 
manures that have been treated in any manner, including 
mechanical drying, grinding, pelleting, and other means, or by 
adding other chemicals or substances.  
    Subd. 20.  [MOBILE MECHANICAL UNIT.] "Mobile mechanical 
unit" means a portable machine or apparatus used to blend, mix, 
or manufacture fertilizers.  [17.713 s. 11] 
    Subd. 21.  [OFFICIAL SAMPLE.] "Official sample" means a 
sample of fertilizer, soil amendment, or plant amendment taken 
by the commissioner according to methods prescribed by this 
chapter or by rule.  [17.713 s. 12] 
    Subd. 22.  [ORGANIC.] "Organic" in reference to fertilizer 
nutrients refers only to naturally occurring substances 
generally recognized as the hydrogen compounds of carbon and 
their derivatives or synthetic products of similar composition 
with a water insoluble nitrogen content of at least 60 percent 
of the guaranteed total nitrogen.  [17.713 s. 13] 
    Subd. 23.  [PERCENT; PERCENTAGE.] "Percent" or 
"percentage"  means the percentage by weight.  [17.713 s. 14] 
    Subd. 24.  [PERSON.] "Person" means an individual, firm, 
corporation, partnership, association, trust, joint stock 
company, or unincorporated organization, the state, a state 
agency, or a political subdivision.  [17.713 s. 15] 
    Subd. 25.  [PLANT AMENDMENT.] "Plant amendment" means a 
substance applied to plants or seeds that is intended to improve 
germination, growth, yield, product quality, reproduction, 
flavor, or other desirable characteristics of plants except 
fertilizers, soil amendments, agricultural liming materials, 
pesticides, and other materials that are exempted by rule.  
[17.713 s. 15a] 
    Subd. 26.  [PLANT FOOD.] "Plant food" means a plant 
nutrient generally recognized as beneficial for plant growth, 
including nitrogen, phosphorus, potassium, calcium, magnesium, 
sulfur, boron, chlorine, cobalt, copper, iron, manganese, 
molybdenum, sodium, and zinc.  [17.713 s. 15b] 
    Subd. 27.  [REGISTRANT.] "Registrant" means the person who 
registers fertilizer, soil amendment, or plant amendment under 
this chapter.  [17.713 s. 16] 
    Subd. 28.  [RINSATE.] "Rinsate" means a dilute mixture of a 
fertilizer or fertilizer with water, solvents, oils, commercial 
rinsing agents, or other substances. 
    Subd. 29.  [SAFEGUARD.] "Safeguard" means a facility, 
equipment, device, or system, individually or in combination, 
designed to prevent an incident as required by rule.  
    Subd. 30.  [SELL.] "Sell," in reference to the sale of 
fertilizer, soil amendment, or plant amendment, includes: 
    (1) the act of selling, transferring ownership; 
    (2) the offering and exposing for sale, exchange, 
distribution, giving away, and transportation in, and into, this 
state; 
    (3) the possession with intent to sell, exchange, 
distribute, give away or transport in, and into, this state; 
    (4) the storing, carrying, and handling in aid of 
trafficking fertilizers, plant amendments, or soil amendments, 
whether done in person or through an agent, employee or others; 
and 
    (5) receiving, accepting, and holding of consignment for 
sale.  [17.713 s. 17] 
    Subd. 31.  [SEWAGE SLUDGE.] "Sewage sludge" means the 
solids and associated liquids in municipal wastewater that are 
encountered and concentrated by a municipal wastewater treatment 
plant.  Sewage sludge does not include incinerator residues and 
grit, scum, or screenings removed from other solids during 
treatment.  [17.713 s. 17a] 
    Subd. 32.  [SITE.] "Site" includes land and water areas, 
air space, and plants, animals, structures, buildings, 
contrivances, and machinery, whether fixed or mobile, including 
anything used for transportation. 
    Subd. 33.  [SOIL AMENDMENT.] "Soil amendment" means a 
substance intended to improve the physical characteristics of 
the soil, except fertilizers, agricultural liming materials, 
pesticides, and other materials exempted by the commissioner's 
rules.  [17.713 s. 19] 
    Subd. 34.  [SPECIALTY FERTILIZER.] "Specialty fertilizer" 
means a fertilizer labeled and distributed for, but not limited 
to, the following uses:  commercial gardening, greenhouses, 
nurseries, sod farms, home gardens, house plants, lawn 
fertilizer that is not custom applied, shrubs, golf courses, 
municipal parks, cemeteries, and research or experimental uses.  
[17.713 s. 20] 
    Subd. 35.  [SUBSTANTIALLY ALTERING.] "Substantially 
altering" means modifying a facility by adding additional 
safeguards or storage containers, or changing existing storage 
containers, safeguards, appurtenances, or piping.  This does not 
include routine maintenance of existing safeguards, storage 
containers, appurtenances, and piping or of existing mixing, 
blending, weighing, and handling equipment. 
    Subd. 36.  [TON.] "Ton" means a net ton of 2,000 pounds 
avoirdupois.  [17.713 s. 21] 
    Subd. 37.  [UNREASONABLE ADVERSE EFFECTS ON THE 
ENVIRONMENT.] "Unreasonable adverse effects on the environment" 
means an unreasonable risk to humans or the environment, taking 
into account the economic, social, and environmental costs and 
benefits of the use of a fertilizer. 
    Subd. 38.  [WILDLIFE.] "Wildlife" means living things that 
are not human, domesticated, or pests. 

                           GENERAL PROVISIONS 
    Sec. 3.  [18C.105] [ADMINISTRATION.] 
    The commissioner of agriculture shall administer this 
chapter.  [17.712] 
    Sec. 4.  [18C.111] [POWERS AND DUTIES OF COMMISSIONER.] 
    Subdivision 1.  [ADMINISTRATION BY COMMISSIONER.] The 
commissioner shall administer, implement, and enforce this 
chapter and the department of agriculture is the lead state 
agency for the regulation of fertilizer, including storage, 
handling, distribution, use, and disposal of fertilizer. 
    Subd. 2.  [DELEGATION OF DUTIES.] The commissioner may 
delegate duties under this chapter to designated employees or 
agents of the department of agriculture. 
    Subd. 3.  [DELEGATION TO APPROVED AGENCIES.] The 
commissioner may, by written agreements, delegate specific 
inspection, enforcement, and other regulatory duties of this 
chapter to officials of other agencies.  The delegation may only 
be made to a state agency, a political subdivision, or a 
political subdivision's agency that has signed a joint powers 
agreement with the commissioner as provided in section 471.59.  
    Sec. 5.  [18C.115] [ADOPTION OF NATIONAL STANDARDS.] 
    Subdivision 1.  [POLICY OF UNIFORMITY.] It is the policy of 
this state to achieve and maintain uniformity as much as 
possible with national standards and with other states in the 
regulation and control of the manufacture, distribution, and 
sale of fertilizer in this state.  
    Subd. 2.  [ADOPTION OF NATIONAL STANDARDS.] Applicable 
national standards contained in the 1989 official publication, 
number 42, of the association of American plant food control 
officials including the rules and regulations, statements of 
uniform interpretation and policy, and the official fertilizer 
terms and definitions, and not otherwise adopted by the 
commissioner, may be adopted as fertilizer rules of this state. 
    Sec. 6.  [18C.121] [RULES.] 
    Subdivision 1.  [ADMINISTRATION.] The commissioner may 
adopt emergency or permanent rules necessary to implement and 
enforce this chapter.  The rules must conform to national 
standards in a manner that is practicable and consistent with 
state law.  [17.725 s. 1] 
    Subd. 2.  [LIMING MATERIALS.] The commissioner may adopt 
rules governing the labeling, registration, and distribution of 
liming materials sold for agricultural purposes.  [17.725 s. 2] 
    Subd. 3.  [CERTIFICATION OF LABORATORIES.] The commissioner 
may adopt rules establishing procedures and requirements for 
certification of soil and plant food testing laboratories 
operating in or outside of the state for the benefit of state 
residents.  The rules shall include but not be limited to 
standardization of procedures and recommendations relating to 
application of plant food materials.  Basic data and reference 
material for establishment of rules will include but not be 
limited to findings of the University of Minnesota soil testing 
laboratory.  [17.725 s. 3] 
    Subd. 4.  [HEARINGS.] Hearings authorized or required by 
law must be conducted by the commissioner or an officer, agent, 
or employee the commissioner designates. 
    Sec. 7.  [18C.131] [FERTILIZER INSPECTION ACCOUNT.] 
    A fertilizer inspection account is established in the state 
treasury.  The fees collected under this chapter must be 
deposited in the state treasury and credited to the fertilizer 
inspection account.  Money in that account, including interest 
earned and money appropriated for the purposes of this chapter, 
is annually appropriated to the commissioner for the 
administration of this chapter.  [17.717 s. 1a] 
    Sec. 8.  [18C.135] [APPLICATION OF REQUIREMENTS TO SEWAGE 
SLUDGE AND COMPOST.] 
    Subdivision 1.  [SEWAGE SLUDGE WITHOUT CHARGE 
EXEMPT.] Sewage sludge that is transferred between parties 
without compensation is exempt from the requirements of this 
chapter except the labeling requirements of this chapter. 
    Subd. 2.  [SEWAGE SLUDGE ANALYSIS MEETS LABELING 
REQUIREMENTS.] A copy of the sewage sludge analysis required by 
the rules of the pollution control agency is sufficient to meet 
the labeling requirements. 
    Subd. 3.  [COMPOST WITHOUT CHARGE EXEMPT.] Compost that is 
transferred between parties without compensation is exempt from 
all requirements of this chapter. 
    Sec. 9.  [18C.141] [SOIL TESTING LABORATORY CERTIFICATION.] 
    Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
shall establish a program to certify the accuracy of analyses 
from soil testing laboratories and promote standardization of 
soil testing procedures and analytical results.  
    Subd. 2.  [CHECK SAMPLE SYSTEM.] (a) The commissioner shall 
institute a system of check samples that requires a laboratory 
to be certified to analyze at least four multiple soil check 
samples during the calendar year.  The samples must be supplied 
by the commissioner or by a person under contract with the 
commissioner to prepare and distribute the samples.  
    (b) Within 30 days after the laboratory receives check 
samples, the laboratory shall report to the commissioner the 
results of the analyses for all requested elements or compounds 
or for the elements or compounds the laboratory makes an 
analytical determination of as a service to others.  
    (c) The commissioner shall compile analytical data 
submitted by laboratories and provide laboratories submitting 
samples with a copy of the data without laboratory names or code 
numbers. 
    (d) The commissioner may conduct check samples on 
laboratories that are not certified. 
    Subd. 3.  [ANALYSES REPORTING STANDARDS.] (a) The results 
obtained from soil or plant analysis must be reported in 
accordance with standard reporting units established by the 
commissioner by rule.  The standard reporting units must conform 
as far as practical to uniform standards that are adopted on a 
regional or national basis. 
    (b) If a certified laboratory offers a recommendation, the 
University of Minnesota recommendation or that of another land 
grant college in a contiguous state must be offered in addition 
to other recommendations, and the source of the recommendation 
must be identified on the recommendation form.  If relative 
levels such as low, medium, or high are presented to classify 
the analytical results, the corresponding relative levels based 
on the analysis as designated by the University of Minnesota or 
the land grant college in a contiguous state must also be 
presented. 
    Subd. 4.  [REVOCATION OF CERTIFICATION.] If the 
commissioner determines that analysis being performed by a 
laboratory is inaccurate as evidenced by check sample results, 
the commissioner may deny, suspend, or revoke certification. 
    Subd. 5.  [CERTIFICATION FEES.] (a) A laboratory applying 
for certification shall pay an application fee of $100 and a 
certification fee of $100 before the certification is issued.  
    (b) Certification is valid for one year and the renewal fee 
is $100.  The commissioner shall charge an additional 
application fee of $100 if a certified laboratory allows 
certification to lapse before applying for renewed certification.
    (c) The commissioner shall notify a certified lab that its 
certification lapses within 30 to 60 days of the date when the 
certification lapses. 
    Subd. 6.  [RULES.] The commissioner shall adopt rules for 
the establishment of minimum standards for laboratories, 
equipment, procedures, and personnel used in soil analysis and 
rules necessary to administer and enforce this section.  The 
commissioner shall consult with representatives of the 
fertilizer industry, representatives of the laboratories doing 
business in this state, and with the University of Minnesota 
college of agriculture before proposing rules.  [17.73] 

                         SALE, USE, AND STORAGE 
    Sec. 10.  [18C.201] [PROHIBITED FERTILIZER ACTIVITIES.] 
    Subdivision 1.  [STORAGE, HANDLING, DISTRIBUTION, OR 
DISPOSAL.] A person may not store, handle, distribute, or 
dispose of a fertilizer, rinsate, fertilizer container, or 
fertilizer application equipment in a manner: 
    (1) that endangers humans, damages agricultural products, 
food, livestock, fish, or wildlife; 
    (2) that will cause unreasonable adverse effects on the 
environment; or 
    (3) that will cause contamination of public or other waters 
of the state, as defined in section 105.37, subdivisions 7 and 
14, from backsiphoning or backflowing of fertilizers through 
water wells or from the direct flowage of fertilizers. 
     Subd. 2.  [USE OF PUBLIC WATER SUPPLIES FOR FILLING 
EQUIPMENT.] A person may not fill fertilizer application 
equipment directly from a public water supply, as defined in 
section 144.382, unless the outlet from the public water supply 
is equipped with a backflow prevention device that complies with 
Minnesota Rules, parts 4715.2000 to 4715.2280. 
    Subd. 3.  [USE OF PUBLIC WATERS FOR FILLING EQUIPMENT.] A 
person may not fill fertilizer application equipment directly 
from public or other waters of the state, as defined in section 
105.37, subdivisions 7 and 14, unless the equipment contains 
proper and functioning anti-backsiphoning mechanisms.  
     Subd. 4.  [CLEANING EQUIPMENT IN OR NEAR SURFACE WATER.] A 
person may not: 
     (1) clean fertilizer application equipment in surface 
waters of the state; or 
     (2) fill or clean fertilizer application equipment adjacent 
to surface waters, ditches, or wells where, because of the slope 
or other conditions, fertilizers or materials contaminated with 
fertilizers could enter or contaminate the surface waters, 
groundwater, or wells, as a result of overflow, leakage, or 
other causes. 
    Subd. 5.  [FERTILIZER, RINSATE, AND CONTAINER DISPOSAL.] A 
person may only dispose of fertilizer, rinsate, and fertilizer 
containers in accordance with this chapter.  The manner of 
disposal must not cause unreasonable adverse effects on the 
environment. 
    Sec. 11.  [18C.205] [CHEMIGATION.] 
    Subdivision 1.  [AUTHORIZATION.] The commissioner may issue 
chemigation permits for irrigation to be used to apply 
fertilizers on crops and land, including agricultural, nursery, 
turf, golf course, and greenhouse sites. 
    Subd. 2.  [PERMIT REQUIRED.] A person may not apply 
fertilizers through an irrigation system without a chemigation 
permit from the commissioner.  A chemigation permit is required 
for one or more wells that are protected from contamination by 
the same devices.  
    Subd. 3.  [APPLICATION.] (a) A person must apply for a 
chemigation permit on forms prescribed by the commissioner. 
    (b) A person initially applying for a chemigation permit 
must pay a nonrefundable application fee of $50.  A person who 
holds a valid pesticide chemigation permit as required in 
chapter 18B is exempt from the fee in this subdivision.  
    Subd. 4.  [PERMIT REQUIREMENTS.] An irrigation system 
operating under a chemigation permit must be fitted with 
effective antisiphon devices or check valves that prevent the 
backflow of fertilizers or fertilizer-water mixtures into water 
supplies or other materials during times of irrigation system 
failure or equipment shutdown.  The devices or valves must be 
installed between: 
    (1) the irrigation system pump or other source discharge 
and the point of fertilizer injection; and 
    (2) the point of fertilizer injection and the fertilizer 
supply. 
    Subd. 5.  [RULES.] The commissioner shall adopt rules 
prescribing conditions and restrictions for applying fertilizers 
by irrigation.  
    Sec. 12.  [18C.211] [GUARANTEED ANALYSIS.] 
    Subdivision 1.  [N, P, and K NUTRIENT CONTENT STATED.] (a) 
Until the commissioner prescribes the alternative form of 
guaranteed analysis, it must be stated as provided in this 
subdivision.  
    (b) A guaranteed analysis must state the percentage of 
plant nutrient content, if claimed, in the following form: 
     "Total Nitrogen (N)                   ..... percent
      Available Phosphoric Acid (P2O5)     ..... percent
      Soluble Potash (K20)                 ..... percent"
    (c) For unacidulated mineral phosphatic materials and basic 
slag, bone, tankage, and other organic phosphate materials, the 
total phosphoric acid or degree of fineness may also be stated.  
[17.713 s. 8] 
    Subd. 2.  [GUARANTEES OF THE NUTRIENTS.] (a) A person may 
guarantee plant nutrients other than nitrogen, phosphorus, and 
potassium only if allowed or required by commissioner's rule.  
    (b) The guarantees for the plant nutrients must be 
expressed in the elemental form. 
    (c) The sources of other elements, oxides, salt, and 
chelates, may be required to be stated on the application for 
registration and may be included as a parenthetical statement on 
the label.  Other beneficial substances or compounds, 
determinable by laboratory methods, also may be guaranteed by 
permission of the commissioner and with the advice of the 
director of the agricultural experiment station.  
    (d) If plant nutrients or other substances or compounds are 
guaranteed, the plant nutrients are subject to inspection and 
analyses in accord with the methods and rules prescribed by the 
commissioner. 
    (e) The commissioner may, by rule, require the potential 
basicity or acidity expressed in terms of calcium carbonate 
equivalent in multiples of 100 pounds per ton.  [17.713 s. 8] 
    Subd. 3.  [FORM FOR ANALYSES.] (a) The commissioner may 
require a guaranteed analysis to be in a prescribed form if the 
commissioner determines that the requirement for expressing the 
guaranteed analysis of phosphorus and potassium in elemental 
form would not impose an economic hardship on distributors and 
users of fertilizer because of conflicting labeling requirements 
among the states.  
    (b) The commissioner must give proper notice and hold a 
public hearing before the determination is made.  
    (c) After making the determination under paragraph (a), the 
commissioner may require by rule that guaranteed analyses be in 
the following form: 
    "Total Nitrogen (N)                    ..... percent
     Available Phosphorus (P)              ..... percent
     Soluble Potassium (K)                 ..... percent"
    (d) In adopting the rule, the commissioner must provide 
that: 
    (1) the effective date of the rule is at least one year 
after the rule is adopted; and 
    (2) for a period of two years following the effective date 
of the rule, the equivalent of phosphorus and potassium may also 
be shown in the form of phosphoric acid and potash.  
    (e) After the effective date of the rule requiring that 
phosphorus and potassium be shown in the elemental form, the 
guaranteed analysis for nitrogen, phosphorus, and potassium 
constitute the grade.  [17.713 s. 8] 
    Subd. 4.  [GUARANTEED ANALYSIS OF SOIL OR PLANT AMENDMENT.] 
The guaranteed analysis of a soil amendment or plant amendment 
must be an accurate statement of composition including the 
percentages of each ingredient.  If the product is a 
microbiological product, the number of viable microorganisms per 
milliliter for a liquid or the number of viable microorganisms 
per gram for a dry product must also be listed.  [17.713 s. 8] 
    Sec. 13.  [18C.215] [FERTILIZER LABELING.] 
    Subdivision 1.  [LABEL CONTENTS.] (a) A person may not sell 
or distribute fertilizer in bags or other containers in this 
state unless a label is placed on or affixed to the bag or 
container stating in a clear, legible, and conspicuous form the 
following information:  
    (1) the net weight; 
    (2) the brand and grade, except (i) the grade is not 
required if primary nutrients are not claimed, and (ii) the 
grade on the label is optional if the fertilizer is used only 
for agricultural purposes and the guaranteed analysis statement 
is shown in the complete form as in section 12; 
     (3) the guaranteed analysis; 
     (4) the name and address of the guarantor; 
     (5) directions for use; and 
    (6) a derivatives statement.  
     (b) The labeled information must appear:  
    (1) on the face or display side of the container in a 
conspicuous form; 
    (2) on the upper one-third of the side of the container; 
    (3) on the upper end of the container; or 
    (4) printed on tags affixed conspicuously to the upper end 
of the container.  [17.716 s. 1] 
    Subd. 2.  [BLENDED AND MIXED FERTILIZER.] (a) A distributor 
who blends or mixes fertilizer to a customer's order without a 
guaranteed analysis of the final mixture must furnish each 
purchaser with an invoice or delivery ticket in written or 
printed form showing the net weight and guaranteed analysis of 
each of the materials used in the mixture.  
    (b) The invoice or delivery ticket must accompany the 
delivery.  
    (c) Records of invoices or delivery tickets must be kept 
for five years after the delivery or application.  [17.716 s. 3] 
    Subd. 3.  [BULK FERTILIZER.] If fertilizer is transported 
or distributed in bulk, the information in subdivision 1, 
paragraph (a), must accompany each delivery in written or 
printed form and be supplied to each purchaser at time of 
delivery.  [17.716 s. 3] 
    Subd. 4.  [PLANT FOOD CONTENT MUST BE UNIFORM.] The plant 
food content of a given lot of fertilizer must remain uniform 
and may not become segregated within the lot.  [17.716 s. 4] 
    Subd. 5.  [FERTILIZER IN BULK STORAGE.] Fertilizer in bulk 
storage must be identified with a label attached to the storage 
bin or container stating the appropriate grade or guaranteed 
analysis.  [17.716 s. 5] 
    Sec. 14.  [18C.221] [FERTILIZER PLANT FOOD CONTENT.] 
    (a) Products that are deficient in plant food content are 
subject to this subdivision. 
    (b) An analysis must show that a fertilizer is deficient: 
    (1) in one or more of its guaranteed primary plant 
nutrients beyond the investigational allowances and 
compensations as established by regulation; or 
    (2) if the overall index value of the fertilizer is shown 
below the level established by rule. 
    (c) A deficiency in an official sample of mixed fertilizer 
resulting from nonuniformity is not distinguishable from a 
deficiency due to actual plant nutrient shortage and is properly 
subject to official action. 
    (d) For the purpose of determining the commercial index 
value to be applied, the commissioner shall determine at least 
annually the values per unit of nitrogen, available phosphoric 
acid, and soluble potash in fertilizers in this state. 
    (e) If a fertilizer in the possession of the consumer is 
found by the commissioner to be short in weight, the registrant 
or licensee of the fertilizer must submit a penalty payment of 
two times the value of the actual shortage to the consumer 
within 30 days after official notice from the commissioner. 
    Sec. 15.  [18C.225] [MISBRANDED PRODUCTS.] 
    Subdivision 1.  [SALE AND DISTRIBUTION PROHIBITED.] A 
person may not sell or distribute a misbranded fertilizer, soil 
amendment, or plant amendment.  [17.722] 
    Subd. 2.  [FACTORS CAUSING MISBRANDING.] A fertilizer, soil 
amendment, or plant amendment is misbranded if: 
    (1) it carries a false or misleading statement on the 
container, on the label attached to the container; or 
    (2) false or misleading statements concerning the 
fertilizer, soil amendment, or plant amendment are disseminated 
in any manner or by any means.  [17.722] 
    Sec. 16.  [18C.231] [ADULTERATION.] 
    Subdivision 1.  [SALE AND DISTRIBUTION PROHIBITED.] A 
person may not sell or distribute an adulterated fertilizer, 
soil amendment, or plant amendment product.  [17.723] 
    Subd. 2.  [FACTORS CAUSING ADULTERATION.] A fertilizer, 
soil amendment, or plant amendment is adulterated if: 
    (1) it contains a deleterious or harmful ingredient in an 
amount to render it injurious to plant life if applied in 
accordance with directions for use on the label; 
    (2) the composition falls below or differs from that which 
the product is purported to possess by its labeling; or 
    (3) the product contains unwanted crop seed or weed seed.  
[17.723] 
    Subd. 3.  [CERTAIN ADULTERATED PRODUCTS MUST BE 
DISPOSED.] Adulterated products that cannot be reconditioned 
must be disposed of according to methods approved by the 
commissioner.  [17.723] 

                               FACILITIES 
    Sec. 17.  [18C.235] [CONTINGENCY PLAN FOR STORAGE OF BULK 
PRODUCTS.] 
    Subdivision 1.  [PLAN REQUIRED.] A person who stores 
fertilizers, soil amendment, or plant amendment products in bulk 
must develop and maintain a contingency plan that describes the 
storage, handling, disposal, and incident handling practices.  
    Subd. 2.  [PLAN AVAILABILITY.] (a) The plan must be kept at 
a principal business site or location within this state and must 
be submitted to the commissioner upon request.  
    (b) The plan must be available for inspection by the 
commissioner.  
    Sec. 18.  [18C.301] [MIXING PESTICIDE WITH FERTILIZER, SOIL 
AMENDMENT, OR PLANT AMENDMENT.] 
    A distributor who blends, mixes, or otherwise adds 
pesticides to fertilizers, soil amendments, or plant amendments 
must:  
    (1) be licensed under section 23; and 
    (2) comply with the provisions of chapter 18B and the 
federal Insecticide, Fungicide and Rodenticide Act, Public Law 
Number 92-516, as amended.  [17.72] 
    Sec. 19.  [18C.305] [FERTILIZER FACILITIES.] 
    Subdivision 1.  [CONSTRUCTION PERMIT.] A person must obtain 
a permit from the commissioner on forms provided by the 
commissioner before the person constructs or substantially 
alters:  
    (1) safeguards; or 
    (2) an existing facility used for the manufacture, 
blending, handling, or bulk storage of fertilizers, soil 
amendments, or plant amendments.  The commissioner may not grant 
a permit for a site without safeguards that are adequate to 
prevent the escape or movement of the fertilizers from the 
site.  [17.7155 s. 1] 
    Subd. 2.  [PERMIT FEES.] (a) An application for a new 
facility must be accompanied by a nonrefundable application fee 
of $100 for each location where fertilizer is stored.  
    (b) An application to substantially alter a facility must 
be accompanied by a nonrefundable $50 fee. 
    (c) In addition to the fees under paragraphs (a) and (b), a 
fee of $250 must be paid by an applicant who begins construction 
or substantial alteration before a permit is issued.  [17.7155 
s. 2] 
    (d) An application for a facility that includes both 
fertilizers, as regulated under this chapter, and pesticides as 
regulated under chapter 18B shall pay only one application fee 
of $100.  

                       REGISTRATION AND LICENSING
    Sec. 20.  [18C.401] [GENERAL LICENSING AND REGISTRATION 
CONDITIONS.] 
    Subdivision 1.  [SUBSTANTIATION OF CLAIMS.] The 
commissioner may require a person applying for a license or 
registration to manufacture or distribute a product for use in 
this state to submit authentic experimental evidence or 
university research data to substantiate the claims made for the 
product.  The commissioner may rely on experimental data, 
evaluations, or advice furnished by experts at the University of 
Minnesota as evidence to substantiate claims and may accept or 
reject additional sources of evidence in evaluating a 
fertilizer, soil amendment, or plant amendment.  The 
experimental evidence must relate to conditions in this state 
for which the product is intended.  The commissioner may also 
require evidence of value when used as directed or recommended. 
    Subd. 2.  [INSUFFICIENT EVIDENCE.] If the commissioner 
determines that the evidence submitted does not substantiate the 
product's usefulness in this state, the commissioner may require 
the applicant to submit samples, conduct tests, or submit 
additional information, including conditions affecting 
performance, to evaluate the product's performance and 
usefulness. 
    Subd. 3.  [REFUSAL TO LICENSE OR REGISTER.] The 
commissioner may refuse to license a person or register a 
specialty fertilizer, soil amendment, or plant amendment if: 
    (1) the application for license or registration is not 
complete; 
    (2) the commissioner determines that the fertilizer, soil 
amendment, plant amendment, or other additive with substantially 
the same contents will not or is not likely to produce the 
results or effects claimed if used as directed; 
    (3) the commissioner determines that the fertilizer, soil 
amendment, plant amendment, or other additive with substantially 
the same contents is not useful in this state; or 
     (4) the facility does not properly safeguard for bulk 
storage. 
    Subd. 4.  [CONDITIONAL LICENSE AND REGISTRATION.] (a) After 
reviewing an application accompanied by the application fee, the 
commissioner may issue a conditional license or registration:  
     (1) to prevent unreasonable adverse effects on the 
environment; or 
     (2) if the commissioner determines that the applicant needs 
the license or registration to accumulate information necessary 
to substantiate claims; or 
    (3) to correct minor label violations.  
     (b) The commissioner may prescribe terms, conditions, and a 
limited period of time for the conditional license or 
registration.  
     (c) The commissioner may revoke or modify a conditional 
license or registration if the commissioner finds that the terms 
or conditions are being violated or are inadequate to avoid 
unreasonable adverse effects on the environment. 
    (d) The commissioner may deny issuance of a conditional 
license or registration if the commissioner determines that 
issuance of a license or registration is not warranted or that 
the use to be made of the product under the proposed terms and 
conditions may cause unreasonable adverse effects on the 
environment. 
    Sec. 21.  [18C.405] [PROTECTION OF TRADE SECRETS.] 
    Subdivision 1.  [NOTATION OF PROTECTED INFORMATION.] In 
submitting data required by this chapter, the applicant may: 
    (1) clearly mark any portions that in the applicant's 
opinion are trade secrets, or commercial or financial 
information; and 
    (2) submit the marked material separately from other 
material. 
    Subd. 2.  [PROTECTION OF INFORMATION BY COMMISSIONER.] (a) 
After consideration of the applicant's request submitted under 
subdivision 1, the commissioner may not allow the information to 
become public that the commissioner determines to contain or 
relate to trade secrets or to commercial or financial 
information obtained from an applicant.  If necessary, 
information relating to formulas of products may be revealed to 
a state or federal agency consulted with similar protection of 
trade secret authority and may be revealed at a public hearing 
or in findings of facts issued by the commissioner. 
    (b) If the commissioner proposes to release information 
that the applicant or registrant believes to be protected from 
disclosure under paragraph (a), the commissioner must notify the 
applicant or registrant by certified mail.  The commissioner may 
not make the information available for inspection until 30 days 
after receipt of the notice by the applicant or registrant.  
During this period, the applicant or registrant may begin an 
action in an appropriate court for a declaratory judgment as to 
whether the information is subject to protection under this 
section. 
    Sec. 22.  [18C.411] [REGISTRATION OF SPECIALTY FERTILIZERS, 
SOIL AMENDMENTS, AND PLANT AMENDMENTS.] 
    Subdivision 1.  [REGISTRATION REQUIRED.] (a) A person may 
not sell brands or grades of specialty fertilizers, soil 
amendments, or plant amendments in this state unless they are 
registered with the commissioner.  [17.714 s. 1] 
    (b) Registration of the materials is not a warranty by the 
commissioner or the state.  [17.714 s. 6] 
    (c) Specialty fertilizers custom applied are exempt from 
the registration requirements of this section. 
    Subd. 2.  [APPLICATION.] The application for registration 
must include: 
    (1) for specialty fertilizers: 
    (i) the name and address of the guarantor and registrant; 
    (ii) the brand and grade; 
    (iii) the guaranteed analysis as required by section 12; 
    (iv) the sources from which nitrogen, phosphorus, potassium 
or other elements or materials are derived; and 
     (v) the amount and formulas of inert ingredients; and 
    (2) for soil amendments and plant amendments: 
    (i) the name and address of the guarantor and registrant; 
    (ii) the brand name; 
    (iii) the sources from which the ingredients used in the 
product are derived; and 
    (iv) the guaranteed analysis as required by section 12.  
[17.714 s. 2] 
    Subd. 3.  [COPY OF LABEL, AND LABELING MATERIAL.] 
Application for registration of a specialty fertilizer, a soil 
amendment, or a plant amendment must include: 
    (1) a label or label facsimile of each product for which 
registration is requested; and 
    (2) a copy of all labeling material used in this state for 
promotion and sale of each product being registered.  [17.714 s. 
3] 
    Subd. 4.  [YEARLY REGISTRATION.] A registration is 
effective until January 1 following the date of issuance or 
approval.  A product registration is not transferable from one 
person to another or from the ownership to whom the registration 
is issued to another ownership.  [17.714 s. 5] 
    Sec. 23.  [18C.415] [FERTILIZER LICENSES.] 
    Subdivision 1.  [LICENSE REQUIRED.] (a) A person may not 
sell or distribute bulk fertilizers for use on agricultural 
lands, custom apply fertilizers, or manufacture, blend, or 
otherwise manipulate fertilizers without obtaining a license 
from the commissioner from each fixed location where the person 
does business within the state and one license for all fixed 
locations that are located outside of the state.  [17.715 s. 1, 
2] 
    (b) A distributor may not manipulate fertilizer by means of 
a mobile mechanical unit without a license from the commissioner 
for each mobile mechanical unit.  [17.715 s. 3] 
    Subd. 2.  [COPY OF LABEL AND LABELING 
MATERIAL.] Application for license must include:  
    (1) a designation of the formula such as is provided on an 
invoice, delivery ticket, label, or label facsimile, for each 
product manufactured or formulated; and 
    (2) a copy of all labeling material used in this state for 
promotion of each product manufactured or formulated.  
    Subd. 3.  [EFFECTIVE PERIOD.] Other licenses are for the 
period from January 1 to the following December 31 and must be 
renewed annually by the licensee before January 1.  A license is 
not transferable from one person to another, from the ownership 
to whom issued to another ownership, or from one location to 
another location.  [17.715 s. 4] 
    Subd. 4.  [POSTING OF LICENSE.] The license must be posted 
in a conspicuous place in each fixed location in this state and 
accompany each mobile mechanical unit operated in this state.  
[17.715 s. 5] 
    Sec. 24.  [18C.421] [DISTRIBUTOR'S TONNAGE REPORT.] 
    Subdivision 1.  [SEMIANNUAL STATEMENT.] (a) Each licensed 
distributor of fertilizer and each registrant of a specialty 
fertilizer, soil amendment, or plant amendment must file a 
semiannual statement for the periods ending December 31 and June 
30 with the commissioner on forms furnished by the commissioner 
stating the number of net tons of each brand or grade of 
fertilizer, soil amendment, or plant amendment distributed in 
this state during the reporting period. 
    (b) A report from a licensee who sells to an ultimate 
consumer must be accompanied by records or invoice copies 
indicating the name of the distributor who paid the inspection 
fee, the net tons received, and the grade or brand name of the 
products received.  
    (c) The report is due on or before the last day of the 
month following the close of each reporting period of each 
calendar year.  
    (d) The inspection fee at the rate stated in section 25, 
subdivision 6, must accompany the statement.  [17.718 s. 1] 
    Subd. 2.  [ADDITIONAL REPORTS.] The commissioner may by 
rule require additional reports for the purpose of gathering 
statistical data relating to fertilizer, soil amendments, and 
plant amendments distribution in the state.  [17.718 s. 1] 
    Subd. 3.  [LATE REPORT AND FEE PENALTY.] (a) If a 
distributor does not file the semiannual statement or pay the 
inspection fees by 31 days after the end of the reporting 
period, the commissioner shall assess a penalty of the greater 
of $25 or ten percent of the amount due against the licensee or 
registrant.  
    (b) The fees due, plus the penalty, may be recovered in a 
civil action against the licensee or registrant.  
    (c) The assessment of the penalty does not prevent the 
commissioner from taking other actions as provided in this 
chapter.  [17.718 s. 1] 
    Subd. 4.  [RESPONSIBILITY FOR INSPECTION FEES.] If more 
than one person is involved in the distribution of a fertilizer, 
soil amendment, or plant amendment, the distributor who imports, 
manufactures, or produces the fertilizer or who has the 
specialty fertilizer, soil amendment, or plant amendment 
registered is responsible for the inspection fee on products 
produced or brought into this state.  The distributor must 
separately list the inspection fee on the invoice to the 
licensee.  The last licensee must retain the invoices showing 
proof of inspection fees paid for three years and must pay the 
inspection fee on products brought into this state before July 
1, 1989, unless the reporting and paying of fees have been made 
by a prior distributor of the fertilizer.  [117.718 s. 2] 
    Subd. 5.  [VERIFICATION OF STATEMENTS.] The commissioner 
may verify the records on which the statement of tonnage is 
based.  [17.718 s. 3] 
    Sec. 25.  [18C.425] [REGISTRATION, LICENSE, AND INSPECTION 
FEES.] 
    Subdivision 1.  [APPLICATION FEES.] (a) An application for 
other licenses for each fixed location to be covered by the 
license within the state must be accompanied by a $100 fee. 
    (b) An application for a license for all fixed locations of 
a firm outside of the state must be accompanied by a fee of $100.
    (c) An application for a license to cover mobile mechanical 
units must be accompanied by a fee of $100 for the first unit 
operated by one distributor and $50 for each additional mobile 
mechanical unit.  [17.717 s. 1] 
    Subd. 2.  [SPECIALTY FERTILIZER REGISTRATION.] An 
application for registration of a specialty fertilizer must be 
accompanied by a registration fee of $100 for each brand and 
grade to be sold or distributed as provided in section 22.  
[17.717 s. 3] 
    Subd. 3.  [SOIL AMENDMENT AND PLANT AMENDMENT 
REGISTRATION.] An application for registration of a soil 
amendment or plant amendment must be accompanied by a 
registration fee of $200 for each brand sold or distributed as 
provided in section 22.  [17.717 s. 4] 
    Subd. 4.  [FEE FOR LATE APPLICATION.] If an application for 
renewal of a fertilizer license or registration of a specialty 
fertilizer, soil amendment, or plant amendment is not filed 
before January 1 or July 1 of a year, as required, an additional 
application fee of one-half of the amount due must be paid 
before the renewal license or registration may be issued.  
[17.717 s. 4a] 
    Subd. 5.  [FEE FOR PRODUCT USE WITHOUT INITIAL REGISTRATION 
OR LICENSE.] An additional application fee equal to the amount 
due must be paid by an applicant for each license or 
registration required for products distributed or used in this 
state before an initial license or registration for the products 
distributed or used is issued by the commissioner. 
    Subd. 6.  [INSPECTION FEES.] A person who sells or 
distributes fertilizers, soil amendments, or plant amendments in 
this state must pay an inspection fee amounting to the greater 
of 15 cents per ton of fertilizer, soil amendment, and plant 
amendment sold or distributed in this state or $10.  Products 
sold or distributed to manufacturers or exchanged between them 
are exempt from the inspection fee imposed by this subdivision 
if the products are used exclusively for manufacturing 
purposes.  [17.717 s. 5] 

             INDUSTRIAL BY-PRODUCT SOIL BUFFERING MATERIALS 
    Sec. 26.  [18C.501] [DEFINITIONS.] 
    Subdivision 1.  [APPLICABILITY.] The definitions in this 
section apply to sections 26 to 31.  [17.7241 s. 1] 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of agriculture.  [17.7241 s. 2] 
    Subd. 3.  [INDUSTRIAL BY-PRODUCT SOIL BUFFERING MATERIAL.] 
"Industrial by-product soil buffering material" means an 
industrial waste or by-product or the by-product of municipal 
water treatment processes containing calcium or magnesium or 
both in a form that may neutralize soil acidity.  [17.7241 s. 3] 
    Subd. 4.  [LIMESTONE.] "Limestone" means a material 
consisting essentially of calcium carbonate or a combination of 
calcium carbonate with magnesium carbonate capable of 
neutralizing soil acidity.  [17.7241 s. 4] 
    Subd. 5.  [SOIL BUFFERING MATERIALS.] "Soil buffering 
materials" means materials whose calcium or magnesium or both 
are capable of neutralizing soil acidity.  [17.7241 s. 5] 
    Subd. 6.  [STOCKPILE.] "Stockpile" means a supply of 
agricultural soil buffering material stored for future use.  
[17.7241 s. 6] 
    Subd. 7.  [TNP.] "TNP" means total neutralizing power and 
is the number of pounds of neutralizing value in one ton of a 
soil buffering material. [17.7241 s. 7] 
    Sec. 27.  [18C.505] [SOIL BUFFERING DEMONSTRATION PROJECT 
AND STUDY.] 
    Subdivision 1.  [PURPOSE.] The purpose of the demonstration 
project required under sections 26 to 31 is to identify 
appropriate and mutually beneficial methods for the use of 
industrial by-product soil buffering materials.  Proper use will 
minimize current waste disposal problems, provide a market for 
an underutilized resource, and make available to farmers an 
effective, low-cost soil buffering product.  [17.7242 s. 1] 
    Subd. 2.  [AUTHORITY.] The commissioner shall coordinate 
the design and implementation of a demonstration project to 
examine the technical feasibility, economic benefits, and 
environmental impacts of using industrial by-product soil 
buffering materials as a substitute for limestone and other 
traditional soil buffering materials.  [17.7242 s. 2] 
    Subd. 3.  [PROCEDURES DEVELOPED.] The demonstration project 
must identify and recommend as proposed standards appropriate 
procedures for the sampling, analysis, TNP labeling, storage, 
stockpiling, transportation, and application of industrial 
by-product soil buffering materials.  After TNP labeling 
standards have been established, they must be provided to the 
landowner or tenant prior to land application or stockpiling.  
[17.7242 s. 3] 
    Subd. 4.  [SCOPE.] The demonstration project must be on a 
scale deemed by the commissioner to be efficient and manageable 
while providing the greatest practicable use of industrial 
by-product soil buffering materials for agricultural purposes.  
[17.7242 s. 4] 
    Sec. 28.  [18C.511] [RESPONSIBILITIES OF THE COMMISSIONER.] 
    Subdivision 1.  [BROAD PARTICIPATION.] The commissioner 
shall seek participation in the demonstration project by other 
persons, institutions, and organizations having an interest in 
soil buffering materials and industrial by-product soil 
buffering materials including the pollution control agency, one 
or more counties, one or more soil and water conservation 
districts, and the University of Minnesota.  [17.7243 s. 1] 
    Subd. 2.  [PUBLIC EDUCATION.] The commissioner shall seek 
to maximize the public education benefit of the demonstration 
program.  [17.7243 s. 2] 
    Sec. 29.  [18C.515] [ENVIRONMENTAL CONTROLS.] 
    Subdivision 1.  [SAMPLING AND ANALYSIS.] The commissioner 
and the commissioner's agents may sample, inspect, make analysis 
of, and test industrial by-product soil buffering materials used 
in the demonstration project and study at a time and place and 
to an extent the commissioner considers necessary to determine 
whether the industrial by-product soil buffering materials are 
suitable for the project.  The commissioner and the 
commissioner's agents may enter public or private premises where 
demonstration projects are being conducted in order to have 
access to: 
    (1) soil buffering materials used in the demonstration 
project; 
    (2) sampling of sites actually or reportedly exposed to 
industrial by-product soil buffering materials; 
    (3) inspection of storage, handling, transportation, use, 
or disposal areas of industrial by-product soil buffering 
materials; 
    (4) inspection or investigation of complaints of injury to 
humans, wildlife, domesticated animals, crops, or the 
environment; 
    (5) observation of the use and application of the soil 
buffering material; 
    (6) inspection of records related to the production, 
transportation, stockpiling, use, or disposal of industrial 
by-product soil buffering material; and 
    (7) other purposes necessary to implement sections 26 to 
31.  [17.7244 s. 1] 
    Subd. 2.  [RECEIPT AND REPORT ON SAMPLES.] Before leaving 
inspected premises, the commissioner shall provide the owner, 
operator, or agent in charge with a receipt describing any 
samples obtained.  If an analysis is made of the samples, a copy 
of the results of the analysis must be furnished to the owner, 
operator, or agent in charge.  [17.7244 s. 2] 
    Subd. 3.  [EMERGENCY INSPECTION.] The commissioner and the 
commissioner's agents may enter public or private property 
without a notice of inspection if a suspected incident involving 
industrial by-product soil buffering materials may threaten 
public health or the environment.  [17.7244 s. 3] 
    Sec. 30.  [18C.521] [REPORT.] 
    The commissioner shall report to the committees on 
agriculture of the house of representatives and senate on March 
1 of each year, about the activities, findings, and 
recommendations related to the demonstration project.  [17.7245] 
    Sec. 31.  [18C.525] [EXEMPTION.] 
    Sections 26 to 31 do not apply to industrial by-product 
soil buffering material produced at a facility if the University 
of Minnesota, North Central Experimental Station, has conducted 
a study of the material at that facility.  [17.7246] 
    Sec. 32.  [CROP CONSULTANT CERTIFICATION.] 
    The commissioner shall, in consultation with the Minnesota 
extension service and the consultant community, develop 
recommendations for a mandatory state crop consultant 
certification program and report its recommendations to the 
governor and legislature by November 15, 1990.  The program 
shall include consideration of educational requirements, current 
professional certification programs, and certification 
subcategories based on the need for consultant specialization. 
    Sec. 33.  [FERTILIZER PRACTICES.] 
    Subdivision 1.  [COMMISSIONER'S DUTIES.] The commissioner 
shall: 
    (1) establish best management practices and water resources 
protection requirements involving fertilizer use, distribution, 
storage, handling, and disposal; 
    (2) cooperate with other state agencies and local 
governments to protect public health and the environment from 
harmful exposure to fertilizer; and 
    (3) appoint a task force to study the effects and impact on 
water resources from nitrogen fertilizer use so that best 
management practices, a fertilizer management plan, and nitrogen 
fertilizer use regulations can be developed.  
    Subd. 2.  [TASK FORCE.] (a) The task force must include 
farmers, representatives from farm organizations, the fertilizer 
industry, University of Minnesota, environmental groups, 
representatives of local government involved with comprehensive 
local water planning, and other state agencies, including the 
pollution control agency, the department of health, the 
department of natural resources, the state planning agency, and 
the board of water and soil resources.  
    (b) The task force shall review existing research including 
pertinent research from the University of Minnesota and shall 
develop recommendations for a nitrogen fertilizer management 
plan for the prevention, evaluation, and mitigation of nonpoint 
source occurrences of nitrogen fertilizer in waters of the 
state.  The nitrogen fertilizer management plan must include 
components promoting prevention and developing appropriate 
responses to the detection of inorganic nitrogen from fertilizer 
sources in ground or surface water. 
    (c) The task force shall report its recommendations to the 
commissioner by May 1, 1990.  The commissioner shall report to 
the environmental quality board by July 1, 1990, on the task 
force's recommendations.  The recommendations of the task force 
shall be incorporated into an overall nitrogen plan prepared by 
the pollution control agency and the department of agriculture.  
    Sec. 34.  [REPEALER.] 
    Minnesota Statutes 1988, sections 17.711; 17.712; 17.713; 
17.714; 17.715; 17.7155; 17.716; 17.717; 17.718; 17.719; 17.72; 
17.721; 17.722; 17.723; 17.7241; 17.7242; 17.7243; 17.7244; 
17.7245; 17.7246; 17.725; 17.726; 17.727; 17.728; 17.7285; 
17.729; and 17.73, are repealed. 
    Sections 26 to 31 are repealed June 30, 1991. 

                               ARTICLE 7 

                              CHAPTER 18D 

      AGRICULTURAL CHEMICAL LIABILITY, INCIDENTS, AND ENFORCEMENT 
    Section 1.  [18D.01] [DEFINITIONS.] 
    Subdivision 1.  [DEFINITIONS IN CHAPTERS 18B AND 18C 
APPLY.] The definitions in chapters 18B and 18C apply to this 
chapter.  
    Subd. 2.  [APPLICABILITY OF DEFINITIONS IN THIS 
SECTION.] The definitions in this section apply to this chapter. 
    Subd. 3.  [AGRICULTURAL CHEMICAL.] "Agricultural chemical" 
means a pesticide as defined under chapter 18B or a fertilizer, 
plant amendment, or soil amendment as defined under chapter 18C. 
    Subd. 4.  [CORRECTIVE ACTION.] "Corrective action" means an 
action taken to minimize, eliminate, or clean up an incident. 
    Subd. 5.  [HAZARDOUS WASTE.] "Hazardous waste" means a 
substance identified or listed as hazardous waste in the rules 
adopted under section 116.07, subdivision 4. 
    Subd. 6.  [INCIDENT.] "Incident" means a flood, fire, 
tornado, transportation accident, storage container rupture, 
portable container rupture, leak, spill, emission, discharge, 
escape, disposal, or other event that releases or immediately 
threatens to release an agricultural chemical accidentally or 
otherwise into the environment, and may cause unreasonable 
adverse effects on the environment.  Incident does not include a 
release resulting from the normal use of a product or practice 
in accordance with law. 
    Subd. 7.  [OWNER OF REAL PROPERTY.] "Owner of real 
property" means a person who is in possession of, has the right 
of control, or controls the use of real property, including 
without limitation a person who may be a fee owner, lessee, 
renter, tenant, lessor, contract for deed vendee, licensor, 
licensee, or occupant. 
    Subd. 8.  [PERSON.] "Person" means an individual, firm, 
corporation, partnership, association, trust, joint stock 
company, or unincorporated organization, the state, a state 
agency, or a political subdivision.  [17.713 s. 15] 
     Subd. 9.  [PROVISION OF THIS CHAPTER.] "Provision of this 
chapter" means a provision of this chapter, chapter 18B, chapter 
18C, or a rule adopted under those chapters.  
    Subd. 10.  [RESPONSIBLE PARTY.] "Responsible party" means a 
person who at the time of an incident has custody of, control 
of, or responsibility for a pesticide, fertilizer, pesticide or 
fertilizer container, or pesticide or fertilizer rinsate. 

              AGRICULTURAL CHEMICAL APPLICATION LIABILITY 
    Sec. 2.  [18D.101] [LIABILITY FOR APPLICATION.] 
    (a) Notwithstanding other law relating to liability for 
agricultural chemical use, an end user or landowner is not 
liable for the cost of active cleanup, or damages associated 
with or resulting from agricultural chemicals in groundwater if 
the person has applied or has had others apply agricultural 
chemicals in compliance with state law, with any applicable 
labeling, and orders of the commissioner. 
    (b) It is a complete defense for liability if the person 
has complied with the provisions in paragraph (a).  

                               INCIDENTS 
    Sec. 3.  [18D.103] [REPORT OF INCIDENTS REQUIRED.] 
    Subdivision 1.  [REPORT TO COMMISSIONER.] A responsible 
party or an owner of real property must, on discovering an 
incident has occurred, immediately report the incident to the 
commissioner.  
    Subd. 2.  [WRITTEN REPORT.] The responsible party must 
submit a written report of the incident to the commissioner in 
the form and by the time prescribed by the commissioner. 
    Sec. 4.  [18D.105] [CORRECTIVE ACTION ORDERS.] 
    Subdivision 1.  [CORRECTIVE ACTION ORDERS.] (a) After 
determining an incident has occurred, the commissioner may order 
the responsible party to take reasonable and necessary 
corrective actions.  
    (b) The commissioner shall notify the owner of real 
property where corrective action is ordered that access to the 
property will be required for the responsible party or the 
commissioner to take corrective action.  
    (c) A political subdivision may not request or order any 
person to take an action that conflicts with the corrective 
action ordered by the commissioner.  
    (d) The attorney general on request of the commissioner may 
bring an action to compel corrective action.  
    Subd. 2.  [COMMISSIONER'S CORRECTIVE ACTIONS.] The 
commissioner may take corrective action if: 
    (1) a responsible party cannot be identified; or 
    (2) an identified responsible party cannot or will not 
comply with a corrective action order issued under subdivision 1.
    Subd. 3.  [EMERGENCY CORRECTIVE ACTION.] (a) To assure an 
adequate response to an incident, the commissioner may take 
corrective action without following the procedures of 
subdivision 1 if the commissioner determines that the incident 
constitutes a clear and immediate danger requiring immediate 
action to prevent, minimize, or mitigate damage to the public 
health and welfare or the environment.  
    (b) Before taking an action under this subdivision, the 
commissioner must make all reasonable efforts, taking into 
consideration the urgency of the situation, to order a 
responsible party to take a corrective action and notify the 
owner of real property where the corrective action is to be 
taken.  
    Subd. 4.  [AGRICULTURE IS LEAD AGENCY.] The department of 
agriculture is the lead state agency in taking corrective action 
for incidents.  
    Sec. 5.  [18D.111] [LIABILITY FOR COSTS.] 
    Subdivision 1.  [CORRECTIVE ACTION COSTS.] (a) A 
responsible party is liable for the costs, including for a 
corrective action administrative cost incurred after the 
corrective action order has been issued, or for emergency 
corrective action, all costs.  The commissioner may issue an 
order for recovery of the costs.  
    (b) A responsible party is liable for the costs of any 
destruction to wildlife.  Payments of costs for wildlife 
destruction shall be deposited in the game and fish fund of the 
state treasury.  
    Subd. 2.  [OWNER OF REAL PROPERTY.] An owner of real 
property is not a responsible party for an incident on the 
owner's property unless that owner:  
    (1) was engaged in manufacturing, formulating, 
transporting, storing, handling, applying, distributing, or 
disposing of an agricultural chemical on the property; 
    (2) knowingly permitted any person to make regular use of 
the property for disposal of agricultural chemicals; or 
    (3) violated this chapter in a way that contributed to the 
incident.  
    Subd. 3.  [LIABILITY FOR EMPLOYEES.] A person licensed 
under chapter 18B or chapter 18C is civilly liable for 
violations of this chapter, chapter 18B, or chapter 18C by the 
person's employees and agents. 
    Subd. 4.  [AVOIDANCE OF LIABILITY.] (a) A responsible party 
may not avoid liability by means of a conveyance of a right, 
title, or interest in real property, or by an indemnification, 
hold harmless agreement, or similar agreement.  
    (b) This subdivision does not:  
    (1) prohibit a person who may be liable from entering an 
agreement by which the person is insured, held harmless, or 
indemnified for part or all of the liability; 
    (2) prohibit the enforcement of an insurance, hold 
harmless, or indemnification agreement; or 
    (3) bar a cause of action brought by a person who may be 
liable or by an insurer or guarantor, whether by right of 
subrogation or otherwise.  
    Subd. 5.  [DEFENSE.] As a defense to a penalty or liability 
for damages, a person may prove that a violation was caused 
solely by an act of God, an act of war, or an act or failure to 
act that constitutes sabotage or vandalism, or a combination of 
these defenses.  
    Sec. 6.  [18D.115] [APPORTIONMENT OF LIABILITY AND 
CONTRIBUTION.] 
    Subdivision 1.  [RIGHT OF APPORTIONMENT.] (a) A responsible 
party held liable under this chapter has the right to have the 
trier of fact apportion liability among the responsible parties 
as provided in this section.  The burden is on each responsible 
party to show how that responsible party's liability should be 
apportioned.  The trier of fact shall reduce the amount of 
damages in proportion to the amount of liability apportioned to 
the party recovering. 
    (b) In apportioning the liability of a party under this 
section, the trier of fact shall consider the following:  
    (1) the extent to which that responsible party contributed 
to the incident; 
    (2) the amount of agricultural chemical involved; 
    (3) the degree of toxicity of the agricultural chemical 
involved; 
    (4) the degree of involvement of and care exercised by the 
responsible party in manufacturing, formulating, handling, 
storing, distributing, transporting, applying, and disposing of 
the agricultural chemical; 
    (5) the degree of cooperation by the responsible party with 
federal, state, or local officials to prevent any harm to the 
public health or the environment; and 
    (6) knowledge by the responsible party of the hazardous 
nature of the agricultural chemical.  
    Subd. 2.  [CONTRIBUTION.] If a responsible party is held 
liable under this chapter and establishes a proportionate share 
of the aggregate liability, the provisions of section 604.02, 
subdivisions 1 and 2, shall apply with respect to contribution 
and reallocation of any uncollectible amounts, except that an 
administrative law judge may also perform the functions of a 
court identified in section 604.02, subdivision 2.  

                               INSPECTION 
    Sec. 7.  [18D.201] [INSPECTION, SAMPLING, ANALYSIS.] 
    Subdivision 1.  [ACCESS AND ENTRY.] (a) The commissioner, 
upon presentation of official department credentials, must be 
granted access at reasonable times without delay to sites: 
    (1) where a person manufactures, formulates, distributes, 
uses, disposes of, stores, or transports an agricultural 
chemical; or 
    (2) which the commissioner reasonably believes are 
affected, or possibly affected, by the use of an agricultural 
chemical, agricultural chemical container, agricultural chemical 
rinsate, or agricultural chemical device in violation of this 
chapter. 
    (b) The commissioner may enter sites for: 
    (1) inspection of equipment for the manufacture, 
formulation, blending, distribution, disposal, or application of 
agricultural chemicals and the premises on which the equipment 
is stored; 
    (2) sampling of sites actually or reportedly exposed to 
agricultural chemicals; 
    (3) inspection of storage, handling, distribution, use, or 
disposal areas of agricultural chemicals or their containers; 
    (4) inspection or investigation of complaints of injury to 
the environment; 
    (5) sampling of agricultural chemicals; 
    (6) observation of the use and application of an 
agricultural chemical; 
    (7) inspection of records related to the manufacture, 
distribution, storage, handling, use, or disposal of an 
agricultural chemical; 
    (8) investigating the source, nature, and extent of an 
incident, and the extent of the adverse effects on the 
environment; and 
    (9) other purposes necessary to implement this chapter, 
chapter 18B, or 18C. 
    (c) The commissioner may enter any public or private 
premises during or after regular business hours without a notice 
of inspection when a suspected incident may threaten public 
health or the environment. 
    Subd. 2.  [NOTICE OF INSPECTION SAMPLES AND ANALYSES.] (a) 
The commissioner shall provide the owner, operator, or agent in 
charge with a receipt describing any samples obtained.  If 
requested, the commissioner shall split any samples obtained and 
provide them to the owner, operator, or agent in charge.  If an 
analysis is made of the samples, a copy of the results of the 
analysis must be furnished to the owner, operator, or agent in 
charge within 30 days after an analysis has been performed.  If 
an analysis is not performed, the commissioner must notify the 
owner, operator, or agent in charge within 30 days of the 
decision not to perform the analysis.  
    (b) The methods of sampling and analysis must be those 
adopted by the United States Environmental Protection Agency or 
the association of official analytical chemists.  In cases not 
covered by those methods, or in cases where methods are 
available in which improved applicability has been demonstrated, 
the commissioner may adopt appropriate methods from other 
sources. 
    (c) In sampling a lot of agricultural chemical that is 
registered, a single package may constitute the official sample. 
    Subd. 3.  [INSPECTION REQUESTS BY OTHERS.] (a) A person who 
believes that a violation of this chapter has occurred may 
request an inspection by giving notice to the commissioner of 
the violation.  The notice must be in writing, state with 
reasonable particularity the grounds for the notice, and be 
signed by the person making the request.  
    (b) If after receiving a notice of violation the 
commissioner reasonably believes that a violation has occurred, 
the commissioner shall make a special inspection in accordance 
with the provisions of this section as soon as practicable, to 
determine if a violation has occurred.  
    (c) An inspection conducted pursuant to a notice under this 
subdivision may cover an entire site and is not limited to the 
portion of the site specified in the notice.  If the 
commissioner determines that reasonable grounds to believe that 
a violation occurred do not exist, the commissioner must notify 
the person making the request in writing of the determination.  
    Subd. 4.  [ORDER TO ENTER AFTER REFUSAL.] After a refusal 
or an anticipated refusal based on a prior refusal to allow 
entrance on a prior occasion by an owner, operator, or agent in 
charge to allow entry as specified in this chapter, the 
commissioner may apply for an order in the district court in the 
county where a site is located, that compels a person with 
authority to allow the commissioner to enter and inspect the 
site.  
    Subd. 5.  [VIOLATOR LIABLE FOR INSPECTION COSTS.] (a) The 
cost of reinspection and reinvestigation may be assessed by the 
commissioner if the person subject to the corrective action 
order or remedial action order does not comply with the order in 
a reasonable time as provided in the order. 
    (b) The commissioner may enter an order for recovery of the 
inspection and investigation costs.  
    Subd. 6.  [INVESTIGATION AUTHORITY.] (a) In making 
inspections under this chapter, the commissioner may administer 
oaths, certify official acts, issue subpoenas to take and cause 
to be taken depositions of witnesses, and compel the attendance 
of witnesses and production of papers, books, documents, 
records, and testimony.  
    (b) If a person fails to comply with a subpoena, or a 
witness refuses to produce evidence or to testify to a matter 
about which the person may be lawfully questioned, the district 
court shall, on application of the commissioner, compel 
obedience proceedings for contempt, as in the case of 
disobedience of the requirements of a subpoena issued by the 
court or a refusal to testify in court.  

                              ENFORCEMENT 
    Sec. 8.  [18D.301] [ENFORCEMENT.] 
    Subdivision 1.  [ENFORCEMENT REQUIRED.] (a) The 
commissioner shall enforce this chapter and chapters 18B and 18C.
     (b) Violations of chapter 18B or chapter 18C or rules 
adopted under chapter 18B or chapter 18C are a violation of this 
chapter.  
    (c) Upon the request of the commissioner, county attorneys, 
sheriffs, and other officers having authority in the enforcement 
of the general criminal laws shall take action to the extent of 
their authority necessary or proper for the enforcement of this 
chapter or special orders, standards, stipulations, and 
agreements of the commissioner. 
    Subd. 2.  [COMMISSIONER'S DISCRETION.] If minor violations 
of this chapter, chapter 18B, or chapter 18C occur or when the 
commissioner believes the public interest will be best served by 
a suitable notice of warning in writing, this chapter does not 
require the commissioner to: 
    (1) report the violation for prosecution; 
    (2) institute seizure proceedings; or 
    (3) issue a withdrawal from distribution or stop-sale order.
[17.728 s. 3] 
    Subd. 3.  [CIVIL ACTIONS.] Civil judicial enforcement 
actions may be brought by the attorney general in the name of 
the state on behalf of the commissioner.  A county attorney may 
bring a civil judicial enforcement action upon the request of 
the commissioner and agreement by the attorney general. 
    Subd. 4.  [INJUNCTION.] The commissioner may apply to a 
court with jurisdiction for a temporary or permanent injunction 
to prevent, restrain, or enjoin violations of this chapter. 
    Subd. 5.  [CRIMINAL ACTIONS.] For a criminal action, the 
county attorney from the county where a criminal violation 
occurred is responsible for prosecuting a violation of this 
chapter.  If the county attorney refuses to prosecute, the 
attorney general on request of the commissioner may prosecute. 
    Subd. 6.  [AGENT FOR SERVICE OF PROCESS.] All nonresident 
commercial and structural pest control applicator licensees 
licensed as individuals must appoint the commissioner as the 
agent upon whom all legal process may be served and service upon 
the commissioner is deemed to be service on the licensee. 
    Sec. 9.  [18D.305] [ADMINISTRATIVE ACTION.] 
    Subdivision 1.  [ADMINISTRATIVE REMEDIES.] The commissioner 
may seek to remedy violations by a written warning, 
administrative meeting, cease and desist, stop-use, stop-sale, 
removal, correction order, or other special order, seizure, 
stipulation, agreement, or administrative penalty, if the 
commissioner determines that the remedy is in the public 
interest. 
    Subd. 2.  [REVOCATION AND SUSPENSION.] The commissioner 
may, after written notice and hearing, revoke, suspend, or 
refuse to grant or renew a registration, permit, license, or 
certification if a person violates a provision of this chapter 
or has a history within the last three years of violations of 
this chapter. 
    Subd. 3.  [CANCELLATION OF REGISTRATION.] (a) The 
commissioner may cancel the registration of a specialty 
fertilizer, soil amendment, or plant amendment or refuse to 
register a brand of specialty fertilizer, soil amendment, or 
plant amendment after receiving satisfactory evidence that the 
registrant has used fraudulent or deceptive practices in the 
evasion or attempted evasion of the provisions of this chapter.  
    (b) Registration may not be revoked until the registrant 
has been given opportunity for a hearing by the commissioner.  
[17.728 s. 1] 
    Subd. 4.  [CANCELLATION OF LICENSE.] (a) The commissioner 
may cancel a license issued under this chapter after receiving 
satisfactory evidence that the licensee has used fraudulent and 
deceptive practices in the evasion or attempted evasion of the 
provisions of this chapter.  
    (b) A license may not be revoked until the licensee has 
been given opportunity for a hearing by the commissioner.  
[17.728 s. 2] 
    Subd. 5.  [CANCELLATION OF FACILITY AND EQUIPMENT 
APPROVAL.] (a) The commissioner may cancel the approval of a 
facility or equipment if: 
    (1) hazards to people's lives, adjoining property, or the 
environment exist; or 
    (2) there is satisfactory evidence that the person to whom 
the approval was issued has used fraudulent or deceptive 
practices to evade or attempt to evade the provisions of this 
chapter.  
    (b) An approval may not be canceled until the person has 
been given an opportunity for a hearing by the commissioner.  
[17.728 s. 2a] 
    Subd. 6.  [SERVICE OF ORDER OR NOTICE.] (a) If a person is 
not available for service of an order, the commissioner may 
attach the order to the agricultural chemical container, 
rinsate, equipment, or device or facility and notify the owner, 
custodian, other responsible party, or registrant.  
    (b) The agricultural chemical container, rinsate, 
equipment, or device may not be sold, used, or removed until the 
agricultural chemical container, rinsate, equipment, or device 
has been released under conditions specified by the 
commissioner, by an administrative law judge, or by a court. 
    Sec. 10.  [18D.311] [DAMAGES AGAINST STATE FOR 
ADMINISTRATIVE ACTION WITHOUT CAUSE.] 
    If the commissioner did not have probable cause for an 
administrative action, including the issuance of a stop-sale, 
stop-use, or removal order, a court may allow recovery for 
damages caused by the administrative action. 
    Sec. 11.  [18D.315] [ADMINISTRATIVE PENALTIES.] 
    Subdivision 1.  [ASSESSMENT.] (a) In determining the amount 
of the administrative penalty, the commissioner shall consider 
the economic gain received by the person allowing or committing 
the violation, the gravity of the violation in terms of actual 
or potential damage to human health and the environment, and the 
violator's culpability, good faith, and history of violations.  
    (b) The commissioner may assess an administrative penalty 
of up to $1,500 per day for a violation of a corrective action 
order or remedial action order.  
    (c) An administrative penalty may be assessed if the person 
subject to a corrective action order or remedial action order 
does not comply with the order in the time provided in the 
order.  The commissioner must state the amount of the 
administrative penalty in the corrective action order or 
remedial action order.  
    Subd. 2.  [COLLECTION OF PENALTY.] (a) If a person subject 
to an administrative penalty fails to pay the penalty, which 
must be part of a final order by the commissioner, by 30 days 
after the final order is issued, the commissioner may commence a 
civil action for double the assessed penalty plus attorney fees 
and costs.  
    (b) An administrative penalty may be recovered in a civil 
action in the name of the state brought in the district court of 
the county where the violation is alleged to have occurred or 
the district court where the commissioner has an office.  
    Sec. 12.  [18D.321] [APPEAL OF COMMISSIONER'S ORDERS.] 
    Subdivision 1.  [NOTICE OF APPEAL.] (a) After service of an 
order, a person has 45 days from receipt of the order to notify 
the commissioner in writing that the person intends to contest 
the order.  
    (b) If the person fails to notify the commissioner that the 
person intends to contest the order, the order is a final order 
of the commissioner and not subject to further judicial or 
administrative review.  
    Subd. 2.  [ADMINISTRATIVE REVIEW.] If a person notifies the 
commissioner that the person intends to contest an order issued 
under this chapter, the state office of administrative hearings 
shall conduct a hearing in accordance with the applicable 
provisions of chapter 14 for hearings in contested cases.  
    Subd. 3.  [JUDICIAL REVIEW.] Judicial review of a final 
decision in a contested case is available as provided in chapter 
14.  
    Sec. 13.  [18D.325] [CIVIL PENALTIES.] 
    Subdivision 1.  [GENERAL PENALTY.] Except as provided in 
subdivisions 2 and 3, a person who violates this chapter, 
chapter 18B or 18C or a special order, standard, stipulation, 
agreement, or schedule of compliance of the commissioner is 
subject to a civil penalty of up to $7,500 per day of violation 
as determined by the court. 
    Subd. 2.  [DISPOSAL THAT BECOMES HAZARDOUS WASTE.] A person 
who violates a provision of this chapter, chapter 18B, or 
chapter 18C or a special order, standard, stipulation, 
agreement, or schedule of compliance of the commissioner that 
relates to disposal of agricultural chemicals so that they 
become hazardous waste, is subject to the penalties in section 
115.071. 
    Subd. 3.  [DEFENSE TO CIVIL REMEDIES AND DAMAGES.] As a 
defense to a civil penalty or claim for damages under 
subdivisions 1 and 2, the defendant may prove that the violation 
was caused solely by an act of God, an act of war, or an act or 
failure to act that constitutes sabotage or vandalism, or any 
combination of these defenses. 
    Subd. 4.  [ACTIONS TO COMPEL PERFORMANCE.] In an action to 
compel performance of an order of the commissioner to enforce a 
provision of this chapter, the court may require a defendant 
adjudged responsible to perform the acts within the person's 
power that are reasonably necessary to accomplish the purposes 
of the order. 
    Subd. 5.  [RECOVERY OF PENALTIES BY CIVIL ACTION.] The 
civil penalties and payments provided for in this section may be 
recovered by a civil action brought by the county attorney or 
the attorney general in the name of the state. 
    Sec. 14.  [18D.331] [CRIMINAL PENALTIES.] 
    Subdivision 1.  [GENERAL VIOLATION.] Except as provided in 
subdivisions 2 and 3, a person is guilty of a misdemeanor if the 
person violates a provision of this chapter, chapter 18B, or 
chapter 18C or a special order, standard, stipulation, 
agreement, or schedule of compliance of the commissioner. 
    Subd. 2.  [VIOLATION ENDANGERING HUMANS.] A person is 
guilty of a gross misdemeanor if the person violates a provision 
of this chapter, chapter 18B, or chapter 18C or a special order, 
standard, stipulation, agreement, or schedule of compliance of 
the commissioner, and the violation endangers humans. 
    Subd. 3.  [VIOLATION WITH KNOWLEDGE.] A person is guilty of 
a gross misdemeanor if the person knowingly violates a provision 
of this chapter, chapter 18B, or chapter 18C or a standard, 
special order, stipulation, agreement, or schedule of compliance 
of the commissioner. 
    Subd. 4.  [DISPOSAL THAT BECOMES HAZARDOUS WASTE.] A person 
who knowingly, or with reason to know, disposes of an 
agricultural chemical so that the product becomes hazardous 
waste is subject to the penalties in section 115.071. 

                               ARTICLE 8 

                              CHAPTER 18E 

        AGRICULTURAL CHEMICAL INCIDENT PAYMENT AND REIMBURSEMENT 
    Section 1.  [18E.01] [CITATION.] 
    This chapter may be cited as the agricultural chemical 
response and reimbursement law.  
    Sec. 2.  [18E.02] [DEFINITIONS.] 
    Subdivision 1.  [DEFINITIONS IN CHAPTERS 18B, 18C, AND 18D 
APPLY.] The definitions contained in this section and chapters 
18B, 18C, and 18D apply to this chapter.  
    Subd. 2.  [ACCOUNT.] "Account" means the agricultural 
chemical response and reimbursement account. 
    Subd. 3.  [AGRICULTURAL CHEMICAL.] "Agricultural chemical" 
means pesticide, fertilizer, plant amendment, or soil amendment 
but does not include nitrate and related nitrogen from a natural 
source. 
     Subd. 4.  [BOARD.] "Board" means the agricultural chemical 
response compensation board. 
    Subd. 5.  [ELIGIBLE PERSON.] "Eligible person" means a 
responsible party or an owner of real property, but does not 
include the state, a state agency, a political subdivision of 
the state, the federal government, or an agency of the federal 
government.  
    Sec. 3.  [18E.03] [AGRICULTURAL CHEMICAL RESPONSE AND 
REIMBURSEMENT ACCOUNT.] 
    Subdivision 1.  [ESTABLISHMENT.] The agricultural chemical 
response and reimbursement account is established as an account 
in the state treasury.  
    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; and 
    (3) to reimburse and pay corrective action costs under 
section 4. 
    (b) Money in the agricultural chemical response and 
reimbursement account is appropriated to the commissioner to 
make payments as provided in this subdivision. 
    Subd. 3.  [DETERMINATION OF RESPONSE AND REIMBURSEMENT 
FEE.] (a) The commissioner shall determine the amount of the 
response and reimbursement fee under subdivision 5 after a 
public hearing, but notwithstanding section 16A.128, based on: 
    (1) the amount needed to maintain a balance in the account 
of $1,000,000; 
    (2) the amount estimated to be needed for responses to 
incidents as provided in subdivision 2, clauses (1) and (2); and 
     (3) the amount needed for payment and reimbursement under 
section 4. 
    (b) The commissioner shall determine the response and 
reimbursement fee so that the balance in the account does not 
exceed $5 million.  
    (c) Money from the response and reimbursement fee shall be 
deposited in the treasury and credited to the agricultural 
chemical response and reimbursement account.  
    Subd. 4.  [FEE THROUGH 1990.] (a) The response and 
reimbursement fee consists of the surcharge fees in this 
subdivision and shall be collected until December 31, 1990. 
    (b) The commissioner shall impose a surcharge on pesticides 
registered under chapter 18B to be collected as a surcharge on 
the registration application fee under section 18B.26, 
subdivision 3, that is equal to 0.1 percent of sales of the 
pesticide in the state for use in the state during the previous 
calendar quarter, except the surcharge may not be imposed on 
pesticides that are sanitizers or disinfectants as determined by 
the commissioner. 
    (c) The commissioner shall impose a ten cents per ton 
surcharge on the inspection fee under article 6, section 25, 
subdivision 6, for fertilizers, soil amendments, and plant 
amendments.  
    (d) The commissioner shall impose a surcharge on the 
license application of persons licensed under chapters 18B and 
18C consisting of: 
    (1) a $150 surcharge for each site where pesticides are 
stored or distributed, to be imposed as a surcharge on pesticide 
dealer application fees under section 18B.31, subdivision 5; 
    (2) a $150 surcharge for each site where a fertilizer, 
plant amendment, or soil amendment is distributed, to be imposed 
on persons licensed under article 6, sections 23 and 25; 
    (3) a $50 surcharge to be imposed on a structural pest 
control applicator license application under section 18B.32, 
subdivision 6, for business license applications only; 
    (4) a $20 surcharge to be imposed on commercial applicator 
license application fees under section 18B.33, subdivision 7; 
    (5) a $20 surcharge to be imposed on noncommercial 
applicator license application fees under section 18B.34, 
subdivision 5, except a surcharge may not be imposed on a 
noncommercial applicator that is a state agency, political 
subdivision of the state, the federal government, or an agency 
of the federal government; and 
    (6) a $50 surcharge for licensed lawn service applicators 
under chapter 18B or 18C, to be imposed on license application 
fees. 
    (e) If a person has more than one license for a site, only 
one surcharge may be imposed to cover all the licenses for the 
site. 
    Subd. 5.  [FEE AFTER 1990.] (a) The response and 
reimbursement fee after December 31, 1990, consists of the 
surcharges in this subdivision and shall be collected by the 
commissioner.  The amount of the response and reimbursement fee 
shall be determined under subdivision 3.  The amount of the 
surcharges shall be proportionate to and may not exceed the 
surcharges in subdivision 4.  
    (b) The commissioner shall impose a surcharge on pesticides 
registered under chapter 18B to be collected as a surcharge on 
the registration application fee under section 18B.26, 
subdivision 3, as a percent of sales of the pesticide in the 
state for use in the state during the previous calendar quarter, 
except the surcharge may not be imposed on pesticides that are 
sanitizers or disinfectants as determined by the commissioner.  
    (c) The commissioner shall impose a fee per ton surcharge 
on the inspection fee under article 6, section 25, subdivision 
6, for fertilizers, soil amendments, and plant amendments.  
    (d) The commissioner shall impose a surcharge on the 
application fee of persons licensed under chapters 18B and 18C 
consisting of: 
    (1) a surcharge for each site where pesticides are stored 
or distributed, to be imposed as a surcharge on pesticide dealer 
application fees under section 18B.31, subdivision 5; 
    (2) a surcharge for each site where a fertilizer, plant 
amendment, or soil amendment is distributed, to be imposed on 
persons licensed under article 6, sections 23 and 25; 
    (3) a surcharge to be imposed on a structural pest control 
applicator license application under section 18B.32, subdivision 
6, for business license applications only; 
    (4) a surcharge to be imposed on commercial applicator 
license application fees under section 18B.33, subdivision 7; 
    (5) a surcharge to be imposed on noncommercial applicator 
license application fees under section 18B.34, subdivision 5, 
except a surcharge may not be imposed on a noncommercial 
applicator that is a state agency, a political subdivision of 
the state, the federal government, or an agency of the federal 
government; and 
    (6) a surcharge for licensed lawn service applicators under 
chapter 18B or 18C, to be imposed on license application fees. 
    (e) If a person has more than one license for a site, only 
one surcharge may be imposed to cover all the licenses for the 
site. 
    Subd. 6.  [REVENUE SOURCES.] Revenue from the following 
sources must be deposited in the state treasury and credited to 
the agricultural chemical response and reimbursement account:  
    (1) the proceeds of the fees imposed by subdivisions 3 and 
5; 
    (2) money recovered by the state for expenses paid with 
money from the account; 
    (3) interest attributable to investment of money in the 
account; and 
    (4) money received by the commissioner in the form of 
gifts, grants other than federal grants, reimbursements, and 
appropriations from any source intended to be used for the 
purposes of the account. 
    Sec. 4.  [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 complied with corrective action 
orders issued to the eligible person by the commissioner; and 
    (2) 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 board determines: 
    (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; and 
    (4) the incident was reported as required in chapters 18B, 
18C, and 18D.  
    (b) 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 costs.  
    Subd. 3.  [PARTIAL REIMBURSEMENT.] 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:  
    (1) 90 percent of the total reasonable and necessary 
corrective action costs greater than $1,000 and less than 
$100,000; and 
    (2) 100 percent of the total reasonable and necessary 
corrective action costs equal to or greater than $100,000 but 
less than $200,000.  
    (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 subdivision.  
    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 a request for reimbursement or 
for payment under subdivisions 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) If a request is denied, the eligible person may appeal 
the decision as a contested case hearing under chapter 14. 
    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 the collection. 
    (b) Amounts collected under this subdivision must be 
credited to the agricultural chemical response and reimbursement 
account.  
    Sec. 5.  [18E.05] [AGRICULTURAL CHEMICAL RESPONSE 
COMPENSATION BOARD.] 
    Subdivision 1.  [MEMBERSHIP.] (a) The agricultural chemical 
response compensation board is created to consist of the 
commissioner of agriculture, the commissioner of commerce, 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.  The board may adopt emergency 
rules under this subdivision for one year from the effective 
date of this article.  
    Subd. 2.  [DUTIES.] The board shall:  
    (1) accept applications for reimbursement from the account; 
    (2) determine the eligibility of applicants for 
reimbursement; 
    (3) determine the amount of reimbursement due each eligible 
applicant and the reimbursement payment schedule where 
applicable; and 
    (4) order reimbursement and notify the commissioner of the 
eligible person, the amount of reimbursement due, and the 
payment schedule, if any.  
    Subd. 3.  [PROCEDURES.] The board must issue an order 
granting or denying a request within 30 days of receipt of a 
completed application unless the applicant and the commissioner 
agree to a longer time period.  If the board denies 
reimbursement, its decision may be appealed in a contested case 
proceeding under chapter 14.  
    Sec. 6.  [18E.06] [REPORT TO WATER COMMISSION.] 
    By November 1, 1990, and each year thereafter, the 
agricultural chemical response compensation board and the 
commissioner shall submit to the house of representatives 
committee on appropriations, the senate committee on finance, 
and the legislative water commission a report detailing the 
activities and reimbursements for which money from the account 
has been spent during the previous year. 
    Sec. 7.  Minnesota Statutes 1988, section 115B.20, is 
amended to read: 
    115B.20 [ENVIRONMENTAL RESPONSE, COMPENSATION AND 
COMPLIANCE FUND.] 
    Subdivision 1.  [ESTABLISHMENT.] (a) The environmental 
response, compensation and compliance fund is created as an 
account in the state treasury and may be spent only for the 
purposes provided in subdivision 2.  
    (b) The commissioner of finance shall administer a response 
account in the fund for the agency and the commissioner of 
agriculture to take removal, response, and other actions 
authorized under subdivision 2, clauses (1) to (4).  The 
commissioner of finance shall allocate money from the response 
account to the agency and the commissioner of agriculture to 
take actions required under subdivision 2, clauses (1) to (4).  
    (c) The commissioner of finance shall administer the 
account in a manner that allows the commissioner of agriculture 
and the agency to utilize the money in the account to implement 
their removal and remedial action duties as effectively as 
possible.  
    Subd. 2.  [PURPOSES FOR WHICH MONEY MAY BE SPENT.] Subject 
to appropriation by the legislature the money in the fund may be 
spent for any of the following purposes:  
    (a) (1) preparation by the agency and the commissioner of 
agriculture for taking removal or remedial action under section 
115B.17, or under chapter 18D, including investigation, 
monitoring and testing activities, enforcement and compliance 
efforts relating to the release of hazardous substances, 
pollutants or contaminants under section 115B.17 or 115B.18, or 
chapter 18D; 
    (b) (2) removal and remedial actions taken or authorized by 
the agency or the commissioner of the pollution control agency 
under section 115B.17, or taken or authorized by the 
commissioner of agriculture under chapter 18D including related 
enforcement and compliance efforts under section 115B.17 or 
115B.18, or chapter 18D, and payment of the state share of the 
cost of remedial action which may be carried out under a 
cooperative agreement with the federal government pursuant to 
the Federal Superfund Act, under United States Code, title 42, 
section 9604(c)(3) for actions related to facilities other than 
commercial hazardous waste facilities located under the siting 
authority of chapter 115A; 
    (c) (3) reimbursement to any private person for 
expenditures made before July 1, 1983 to provide alternative 
water supplies deemed necessary by the agency or the 
commissioner of agriculture and the department of health to 
protect the public health from contamination resulting from the 
release of a hazardous substance; 
    (d) (4) removal and remedial actions taken or authorized by 
the agency or the commissioner of agriculture or the pollution 
control agency under section 115B.17, or chapter 18D, including 
related enforcement and compliance efforts under section 115B.17 
or 115B.18, or chapter 18D, and payment of the state share of 
the cost of remedial action which may be carried out under a 
cooperative agreement with the federal government pursuant to 
the Federal Superfund Act, under United States Code, title 42, 
section 9604(c)(3) for actions related to commercial hazardous 
waste facilities located under the siting authority of chapter 
115A; 
    (e) (5) compensation as provided by law, after submission 
by the waste management board of the report required under 
section 115A.08, subdivision 5, to mitigate any adverse impact 
of the location of commercial hazardous waste processing or 
disposal facilities located pursuant to the siting authority of 
chapter 115A; 
    (f) (6) planning and implementation by the commissioner of 
natural resources of the rehabilitation, restoration or 
acquisition of natural resources to remedy injuries or losses to 
natural resources resulting from the release of a hazardous 
substance; 
    (g) (7) inspection, monitoring and compliance efforts by 
the agency, or by political subdivisions with agency approval, 
of commercial hazardous waste facilities located under the 
siting authority of chapter 115A; 
    (h) (8) grants by the agency or the waste management board 
to demonstrate alternatives to land disposal of hazardous waste 
including reduction, separation, pretreatment, processing and 
resource recovery, for education of persons involved in 
regulating and handling hazardous waste; 
    (i) (9) intervention and environmental mediation by the 
legislative commission on waste management under chapter 115A; 
and 
    (j) (10) grants by the agency to study the extent of 
contamination and feasibility of cleanup of hazardous substances 
and pollutants or contaminants in major waterways of the state.  
    Subd. 3.  [LIMIT ON CERTAIN EXPENDITURES.] The commissioner 
of agriculture or the pollution control agency or the agency may 
not spend any money under subdivision 2, clause (b) (2) or 
(d) (4), for removal or remedial actions to the extent that the 
costs of those actions may be compensated from any fund 
established under the Federal Superfund Act, United States Code, 
title 42, section 9600 et seq.  The commissioner of agriculture 
or the pollution control agency or the agency shall determine 
the extent to which any of the costs of those actions may be 
compensated under the federal act based on the likelihood that 
the compensation will be available in a timely fashion.  In 
making this determination the commissioner of agriculture or the 
pollution control agency or the agency shall take into account:  
    (a) (1) the urgency of the removal or remedial actions and 
the priority assigned under the Federal Superfund Act to the 
release which necessitates those actions; 
    (b) (2) the availability of money in the funds established 
under the Federal Superfund Act; and 
    (c) (3) the consistency of any compensation for the cost of 
the proposed actions under the Federal Superfund Act with the 
national contingency plan, if such a plan has been adopted under 
that act.  
    Subd. 4.  [REVENUE SOURCES.] Revenue from the following 
sources shall be deposited in the environmental response, 
compensation and compliance fund:  
    (a) (1) the proceeds of the taxes imposed pursuant to 
section 115B.22, including interest and penalties; 
    (b) (2) all money recovered by the state under sections 
115B.01 to 115B.18 or under any other statute or rule related to 
the regulation of hazardous waste or hazardous substances, 
including civil penalties and money paid under any agreement, 
stipulation or settlement but excluding fees imposed under 
section 116.12; 
    (c) (3) all interest attributable to investment of money 
deposited in the fund; and 
    (d) (4) all money received in the form of gifts, grants, 
reimbursement or appropriation from any source for any of the 
purposes provided in subdivision 2, except federal grants.  
    Subd. 5.  [RECOMMENDATION BY LCWM.] The legislative 
commission on waste management and the commissioner of 
agriculture shall make recommendations to the standing 
legislative committees on finance and appropriations regarding 
appropriations from the fund.  
    Subd. 6.  [REPORT TO LEGISLATURE.] By November 1, 1984, and 
Each year thereafter, the commissioner of agriculture and the 
agency shall submit to the senate finance committee, the house 
appropriations committee and the legislative commission on waste 
management a report detailing the activities for which money 
from the environmental response, compensation and compliance 
fund has been spent during the previous fiscal year. 
    Sec. 8.  [REVIEW OF PRIORITIES LIST.] 
    The commissioner of agriculture in consultation with the 
pollution control agency shall review the priorities list under 
section 115B.17, subdivision 13, and evaluate the 
appropriateness of the ranking criteria for agricultural 
chemical releases, and how groundwater in the state is protected 
from agricultural chemical releases based on the priorities and 
use of the fund.  The commissioner of agriculture shall prepare 
a report and submit it to the legislative water commission and 
the legislature by January 1, 1990. 
    Sec. 9.  [STUDY ON THE HEALTH AND RESPONSE RISKS OF 
AGRICULTURAL CHEMICALS.] 
    The commissioner of agriculture shall conduct a study and 
report and submit it to the legislature by January 15, 1990, on 
agricultural chemicals in the state that pose the greatest 
health risk and health hazard due to toxicity, amount used in 
the state, leachability, persistence, and other factors, and the 
agricultural chemicals that pose the greatest risk of incurring 
corrective action which would be reimbursed from the 
agricultural chemical response and reimbursement account. 
    The study and report must include a plan for assessing 
surcharges under section 3, subdivision 5. 
     Sec. 10.  [EFFECTIVE DATE.] 
     Sections 3, 4, and 5 are effective July 1, 1990. 

                               ARTICLE 9 

                          WATERSHED DISTRICTS 
    Section 1.  [METROPOLITAN LOCAL WATER MANAGEMENT TASK 
FORCE.] 
    Subdivision 1.  [ESTABLISHMENT AND PURPOSE.] (a) A 
metropolitan local water management task force is established to 
study and prepare a report on the following issues:  
    (1) how to accomplish constructive public participation in 
and local coordination of local water management; 
    (2) how to avoid excessive public costs associated with the 
planning and implementation of capital improvement projects; 
    (3) whether adequate oversight exists of local water 
management activities to assure adherence to state law and 
approved watershed management plans; 
    (4) the procedures to be used in urbanizing areas to 
maintain, repair, improve, construct, and abandon public 
drainage systems; 
    (5) the appropriate methods for financing capital 
improvement projects; 
    (6) whether local water management levies and bonds should 
be exempt from levy limits and caps on net indebtedness; 
    (7) whether the metropolitan water management act has met 
its original expectations; and 
    (8) what changes are needed in state law or the structure 
of local watershed management organizations to achieve greater 
consistency and stability in metropolitan watershed management 
organizations.  
    (b) The task force shall elect a chair at its first meeting.
    (c) The task force shall be given legal and technical staff 
support by the board of water and soil resources.  The board of 
water and soil resources shall provide administrative support.  
    Subd. 2.  [MEMBERSHIP.] The task force shall consist of:  
    (1) three members of the senate appointed by the majority 
leader; 
    (2) three members of the house of representatives appointed 
by the speaker; 
    (3) the chair and two additional members of the board of 
water and soil resources appointed by the chair; 
    (4) the state planning commissioner or the commissioner's 
designee; 
    (5) the commissioner of the department of natural resources 
or the commissioner's designee; 
    (6) the commissioner of the pollution control agency or the 
commissioner's designee; 
    (7) the chair of the metropolitan council or the chair's 
designee; 
    (8) a member of the association of metropolitan 
municipalities appointed by the chair of the board of water and 
soil resources; 
    (9) a member of the Minnesota association of watershed 
districts appointed by the chair of the board of water and soil 
resources; 
    (10) a member of the association of Minnesota soil and 
water conservation districts appointed by the chair of the board 
of water and soil resources; 
    (11) a member representing watershed management 
organizations appointed by the chair of the board of water and 
soil resources; 
    (12) a member of the association of Minnesota counties 
appointed by the chair of the board of water and soil resources; 
    (13) a member of the metropolitan inter-county association 
appointed by the chair of the board of water and soil resources; 
    (14) a member representing consulting engineers appointed 
by the chair of the board of water and soil resources; 
    (15) a member representing the reinvest in Minnesota 
coalition appointed by the chair of the board of water and soil 
resources; and 
    (16) a resident of the state interested in metropolitan 
water management issues appointed by the chair of the board of 
water and soil resources. 
    Subd. 3.  [REPORT.] The task force shall prepare a report 
and submit it to the governor and the legislature by December 
15, 1989.  
    Sec. 2.  [COON CREEK WATERSHED DISTRICT.] 
    Subdivision 1.  [EXPENDITURES NOT CHARGED TO INDIVIDUAL 
DITCHES.] Notwithstanding Minnesota Statutes, section 106A.725, 
the Coon Creek watershed district shall not charge back to 
public ditches number 11, 39, 44, 57, 58, 59, and 60 the 
$143,140.94 spent prior to January 1, 1989, by the district from 
its administrative fund for legal and other administrative 
expenses on these ditches.  
    Subd. 2.  [EXPENDITURES CHARGED TO INDIVIDUAL DITCHES.] The 
Coon Creek watershed district may impose ad valorem tax levies 
within the subwatersheds of public ditches number 11, 39, 44, 
57, 59, and 60 to raise their individual proportionate shares of 
the $207,169.50 needed to reimburse the district's 
administrative fund for advances made prior to January 1, 1989, 
to these ditch accounts for engineering expenses and maintenance 
and repair work.  Levies made pursuant to this subdivision may 
be spread over up to five consecutive years and must be adopted 
and collected in accordance with the procedure in Minnesota 
Statutes, section 112.611.  
    Sec. 3.  [LOCAL APPROVAL.] 
    Section 2 is effective upon approval of the Coon Creek 
watershed board. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Section 1 is effective June 1, 1989. 

                               ARTICLE 10 

                             APPROPRIATION 
    Section 1.  [APPROPRIATION.] 
    Subdivision 1.  $13,000,000 is appropriated from the 
general fund to the agencies and for the purposes indicated in 
this section, to be available for the fiscal year ending June 30 
in the years indicated.  Any unencumbered balance remaining in 
the first year does not cancel and is available for the second 
year of the biennium. 
                                            1990         1991
                                      $             $
     Subd. 2.  HEALTH                                  
(a) Promulgate health risk 
limits under article 1, section 8          125,000      125,000
(b) Water well management program under 
article 3                                  540,000    1,300,000
(c) Ensure safe drinking water under                           
the safe drinking water act              1,410,000    1,190,000
The approved complement of the 
department of health is increased by 30 
positions in fiscal year 1990 and 20 
additional positions in fiscal year 
1991. 
     Subd. 3.  AGRICULTURE 
(a) Sustainable agriculture program         50,000       50,000
(b) Monitor water quality, provide 
technical support, provide laboratory 
services                                   225,000      225,000
The approved complement of the 
department of agriculture is increased 
by 37 positions, four in the general 
fund and 33 in the special revenue fund.
     Subd. 4.  BOARD OF WATER AND SOIL 
RESOURCES 
(a) Comprehensive local water management    50,000       50,000
(b) Local water resources protection under
article 2 for which grants the first year
of the biennium may be made without rules  610,000    2,610,000
(c) Environmental agriculture education
under article 2, section 3                 200,000      200,000
(d) Well sealing cost-share grants under 
article 3, section 21                       65,000      465,000
(e) Study and preparation of metropolitan 
local water management task force           25,000
The approved complement of the board of 
water and soil resources is increased 
by three positions. 
     Subd. 5.  LEGISLATIVE WATER 
COMMISSION 
General operations under article 2, 
section 1                                   83,000       87,000
     Subd. 6.  NATURAL RESOURCES 
(a) Develop county atlas                   185,000      180,000
 Priority for county atlas grants shall 
be given to counties in sensitive areas.
(b) Regional groundwater assessment, 
gauging, and technical assistance          950,000      650,000
 $100,000 of this appropriation is to 
contract with the Minnesota geological 
survey to study the existence and 
source of high levels of natural radium 
in municipal water supplies and 
alternatives to reduce levels of 
natural radium in municipal water 
supplies. 
The approved complement of the 
department of natural resources is 
increased by eight positions. 
     Subd. 7.  POLLUTION CONTROL AGENCY 
(a) Develop and implement best management
practices and provide technical
assistance under article 1                 125,000      125,000
(b) Integrated Groundwater Information 
System                                     125,000      125,000
The approved complement of the 
pollution control agency is increased 
by five positions. 
     Subd. 8.  STATE PLANNING AGENCY 
Maintain integrated, computerized 
groundwater monitoring data base
under article 1, section 7                 100,000      100,000
     Subd. 9.  UNIVERSITY OF MINNESOTA
(a) Integrated pest management             175,000      175,000
This appropriation is intended to 
provide for three positions within the 
Minnesota extension service:  one 
assistant integrated pest management 
coordinator, one agricultural 
integrated pest management specialists, 
and one urban integrated pest 
management specialist. 
(b) Research by agricultural experiment 
stations on the impact of agriculture on 
groundwater                                150,000      150,000
    Sec. 2.  [APPROPRIATION AND REIMBURSEMENT.] 
    $1,000,000 is appropriated from the general fund to the 
response and reimbursement account to be used for the purposes 
of article 8.  This amount must be reimbursed from the response 
and reimbursement account to the general fund from revenue to 
the response and reimbursement account by June 30, 1991. 
    Presented to the governor May 31, 1989 
    Signed by the governor June 2, 1989, 12:21 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569