1.1                          A bill for an act
  1.2             relating to public health and safety; establishing a 
  1.3             methamphetamine laboratory cleanup revolving fund and 
  1.4             authorizing loans to assist counties and cities in 
  1.5             conducting methamphetamine lab cleanup; appropriating 
  1.6             money; proposing coding for new law in Minnesota 
  1.7             Statutes, chapter 145. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [145.941] [METHAMPHETAMINE LABORATORY CLEANUP 
  1.10  REVOLVING FUND.] 
  1.11     Subdivision 1.  [DEFINITIONS.] As used in this section: 
  1.12     (1) "clandestine lab site" means any structure or 
  1.13  conveyance or outdoor location occupied or affected by 
  1.14  conditions or chemicals, typically associated with a clandestine 
  1.15  drug lab operation; 
  1.16     (2) "property" includes buildings and other structures, and 
  1.17  motor vehicles as defined in section 609.487, subdivision 2a.  
  1.18  Property also includes real property whether publicly or 
  1.19  privately owned and public waters and rights-of-way; and 
  1.20     (3) "remediate" or "remediation" means proper cleanup, 
  1.21  treatment, or containment of hazardous substances or 
  1.22  methamphetamine at or in a clandestine lab site, and may include 
  1.23  demolition or disposal of structures or other property when an 
  1.24  assessment so indicates. 
  1.25     Subd. 2.  [FUND ESTABLISHED.] A methamphetamine laboratory 
  1.26  cleanup revolving fund is established in the state treasury to 
  2.1   provide loans to counties and cities to remediate clandestine 
  2.2   lab sites.  The fund must be credited with repayments.  
  2.3      Subd. 3.  [APPLICATIONS.] Applications by a county or city 
  2.4   for a loan from the fund must be made to the commissioner of 
  2.5   health on the forms prescribed by the commissioner.  The 
  2.6   application must include, but is not limited to:  
  2.7      (1) the amount of the loan requested and the proposed use 
  2.8   of the loan proceeds; 
  2.9      (2) the source of revenues to repay the loan; and 
  2.10     (3) certification by the county or city that it meets the 
  2.11  loan eligibility requirements of subdivision 4.  
  2.12     Subd. 4.  [LOAN ELIGIBILITY.] A county or city is eligible 
  2.13  for a loan under this section if the county or city: 
  2.14     (1) identifies a site or sites designated by a local public 
  2.15  health department or law enforcement as a clandestine lab site; 
  2.16     (2) has required the site's property owner to remediate the 
  2.17  site at cost under chapter 145A or a local public health 
  2.18  nuisance ordinance that addresses clandestine lab remediation; 
  2.19     (3) certifies that the property owner cannot pay for the 
  2.20  remediation immediately; 
  2.21     (4) certifies that the property owner has not properly 
  2.22  remediated the site; and 
  2.23     (5) issues a revenue bond payable to the commissioner to 
  2.24  secure the loan.  
  2.25     Subd. 5.  [USE OF LOAN PROCEEDS; REIMBURSEMENT BY PROPERTY 
  2.26  OWNER.] (a) A loan recipient shall use the loan to remediate the 
  2.27  clandestine lab site or, if this has already been done, to 
  2.28  reimburse the applicable county or city fund for costs paid by 
  2.29  the recipient to remediate the clandestine lab site.  
  2.30     (b) A loan recipient shall seek reimbursement from the 
  2.31  owner of the property containing the clandestine lab site for 
  2.32  the costs of the remediation.  In addition to other lawful means 
  2.33  of seeking reimbursement, the loan recipient may recover its 
  2.34  costs through a property tax assessment by following the 
  2.35  procedures specified in section 145A.08, subdivision 2, 
  2.36  paragraph (c).  
  3.1      Subd. 6.  [AWARD AND DISBURSEMENT OF FUNDS.] The 
  3.2   commissioner shall award loans to recipients on a first-come, 
  3.3   first-served basis, provided that the recipient is able to 
  3.4   comply with the terms and conditions of the loan, which must be 
  3.5   in conformance with this section.  The commissioner shall make a 
  3.6   single disbursement of the loan upon receipt of a payment 
  3.7   request that includes a list of remediation expenses and 
  3.8   evidence that a second-party sampling was undertaken to ensure 
  3.9   that the remediation work was successful or a guarantee that 
  3.10  such a sampling will be undertaken.  
  3.11     Subd. 7.  [LOAN CONDITIONS AND TERMS.] (a) When making 
  3.12  loans from the revolving fund, the commissioner shall comply 
  3.13  with the criteria in paragraphs (b) to (e).  
  3.14     (b) Loans must be made at a two percent per annum interest 
  3.15  rate for terms not to exceed ten years unless the recipient 
  3.16  requests a 20-year term due to financial hardship. 
  3.17     (c) The annual principal and interest payments must begin 
  3.18  no later than one year after completion of the clean up.  Loans 
  3.19  must be amortized no later than 20 years after completion of the 
  3.20  clean up.  
  3.21     (d) A loan recipient must identify and establish a source 
  3.22  of revenue for repayment of the loan and must undertake whatever 
  3.23  steps are necessary to collect payments within one year of 
  3.24  receipt of funds from the commissioner.  
  3.25     (e) The fund must be credited with all payments of 
  3.26  principal and interest on all loans. 
  3.27     (f) Loans must be made only to recipients with clandestine 
  3.28  lab ordinances that address remediation.  
  3.29     Subd. 8.  [AUTHORITY TO INCUR DEBT.] Counties and cities 
  3.30  may incur debt under this section by resolution of the board or 
  3.31  council authorizing issuance of a revenue bond to the 
  3.32  commissioner. 
  3.33     Sec. 2.  [APPROPRIATION.] 
  3.34     $....... is appropriated from the general fund to the 
  3.35  commissioner of health for the fiscal year ending June 30, 2004, 
  3.36  to fund and administer the methamphetamine laboratory cleanup 
  4.1   revolving fund established in Minnesota Statutes, section 
  4.2   145.941. 
  4.3      Sec. 3.  [EFFECTIVE DATE.] 
  4.4      Sections 1 and 2 are effective the day following final 
  4.5   enactment.