To repeal sections 256.616, 256.635 and 256.637, RSMo 1994, relating to the water well drillers' fund, and to enact in lieu thereof three new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section A. Sections 256.616, 256.635 and 256.637, RSMo 1994, are repealed and three new sections enacted in lieu thereof, to be known as sections 256.616, 256.635 and 256.637, to read as follows:

     256.616. A well installation contractor or pump installation contractor who has had a permit revoked or a person found guilty of a class A misdemeanor in accordance with section 256.637 shall provide to the division a performance bond or letter of credit in order to obtain a permit.

     (1) The bond or letter of credit required by this section shall be:

     (a) Conditioned upon faithful compliance with the conditions and terms of sections 256.600 to 256.640; and

     (b) In such amount as determined by the division to ensure compliance with the procedures, rules and regulations, and standards established pursuant to sections 256.600 to 256.640, but shall not exceed ten thousand dollars or be less than one thousand dollars. When setting the amount, the division shall consider the total number of wells drilled or pumps installed and the average cost of each well drilled or serviced by the applicant;

     (2) Such performance bond, placed on file with the director, shall be in one of the following forms:

     (a) A performance bond, payable to the director and issued by an institution authorized to issue such bonds in this state; or

     (b) An irrevocable letter of credit issued in favor of and payable to the director from a commercial bank or savings and loan having offices in the state of Missouri;

     (3) The requirement for a performance bond or a letter of credit by a well installation contractor or pump installation contractor who has had a permit revoked, or a person who has been found guilty of a class A misdemeanor in accordance with section 256.637 shall cease after two consecutive years of well drilling or pump installation in accordance with the provisions of sections 256.600 to 256.640, and any rules or regulations promulgated pursuant to sections 256.600 to 256.640;

     (4) Upon a determination by the division that a well contractor or pump installation contractor has failed to meet standards as set out in sections 256.600 to 256.640 and the rules and regulations promulgated thereunder, the division shall notify the well installation contractor or pump installation contractor that the bond or letter of credit will be forfeited and the moneys placed in the [water well drillers] groundwater protection fund for remedial action, if that person does not bring the well or borehole up to the standards established pursuant to sections 256.600 to 256.640 within sixty days after notification of such determination has been given;

     (5) If a well is not brought up to the standards established pursuant to sections 256.600 to 256.640 within the sixty-day notification period the division may, upon expiration of the notification period, expend whatever portion of the bond or letter of credit is necessary to hire another contractor to bring the well or borehole up to standards or to construct a new well.

     256.635. 1. The state auditor shall audit the financial transactions of the division in connection with the administration of sections 256.600 to 256.640.

     2. All money collected by the division under the provisions of sections 256.600 to 256.640 shall be deposited in the state treasury to the credit of a special fund hereby established to be known as the ["Water Well Drillers'] "Groundwater Protection Fund". Moneys in the fund shall be expended only for the purposes of administering sections 256.600 to 256.640. Notwithstanding the provisions of section 33.080, RSMo, any balance remaining in the fund at the end of an appropriation period shall not be transferred to general revenue, except that should there be a balance remaining in the fund at the end of an appropriation period exceeding one-half of the next year's projected operating budget for administration of sections 256.600 to 256.640, the amount exceeding one-half of the next year's projected budget shall be transferred to the general revenue fund.

     3. Any balance in the water well drillers' fund on the effective date of this section shall be transferred to the groundwater protection fund on that date, and following such transfer, the water well drillers' fund shall be abolished.

     256.637. 1. Any person who willfully violates any of the provisions of sections 256.600 to 256.640 is guilty of a class A misdemeanor.

     2. In the event of a continuing violation, each day that the violation continues shall constitute a separate and distinct offense.

     3. Any person who willfully obstructs, hinders or prevents agents of the division in the performance of the duties imposed on them by sections 256.600 to 256.640 is guilty of a class A misdemeanor.

     4. Any well owner who knowingly causes or permits a hazardous or potentially hazardous condition to exist which could cause deterioration of groundwater quality in the system, even in a local area, shall forfeit his right to an approved, certified well. He shall also be liable to legal action by the state and any neighboring well owners should the condition endanger the groundwater in surrounding areas. If the division finds that such conditions exist, it shall order the well owner to plug the well.

     5. Upon receipt of a complaint filed with the division alleging that any provision of sections 256.600 to 256.640, or any standard, rule or regulation promulgated thereto was violated, the division may institute a civil action in the jurisdiction where the well is located for injunctive relief through the office of the prosecuting attorney of the county wherein the alleged violation occurred to prevent such violation or further violation, or for the assessment of a civil penalty not to exceed five hundred dollars per day for each day, or part thereof, the violation occurred and continued to occur, or both, as the court deems proper. For the purpose of this section, the filing of a well registration or certification form containing false information shall constitute a violation for each day after notification that such form is on file with the division. Any moneys paid in civil penalties shall be deposited in the [water well drillers] groundwater protection fund.