This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0823 - Revises regulation of water well installation contractors and related professions
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2245-01
BILL NO. SB 823
SUBJECT: Well Drillers
TYPE: Original
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001
$0
$0
$0
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 5 pages.
FISCAL ANALYSIS
ASSUMPTION
The Office of the State Treasurer assumes they would not be impacted by this proposal.
The Department of Natural Resources assumes this proposal establishes the Well Plugging Fund. Money derived from any source, except those collected by the DNR pursuant to these existing sections, may be deposited into the fund and used for plugging wells, well construction and repair, and the protection of the groundwater.
The DNR also assumes this bill defines and/or clarifies several terms that historically have been confusing. It also increases the number of Well Installation board members from 9 to 11 with the two additional members being well drillers. It provides a better means to enforce effectively against the habitual violators of the law. It also suggests that drillers distribute educational packets explaining the certification process, and importance of proper well construction to potential customers.
The DNR assumes this proposal would not have a fiscal impact on the DNR.
Oversight assumes this proposal deletes the provision that any remaining balance in the Groundwater Protection Fund exceeding one-half of the next year's appropriation be transferred to the general revenue fund. According to the DNR, the balance in the fund has never been high enough to require the transfer to the general revenue fund. Therefore, no impact to the general revenue fund is shown.
According to DNR, the proposal creates a subclass of the population currently permitted. No new fee revenue or costs are anticipated.
Oversight assumes since this proposal adds two members to the Well Installation Board, there would be additional costs for the expenses of the new members to attend board meetings. Oversight estimates these costs to be approximately $400 per year. ($50 per day times 4 meetings per year = $200 per board member.) Oversight assumes these costs could be absorbed by the Department's normal operating budget.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
This proposal may impact small businesses because it requires habitual violators to provide surety bonds or certificates of deposit to be reinstated as installer contractors.
DESCRIPTION
This act amends the regulatory provisions of the Well Drillers' Act. Several definitions are revised, including that of "abandoned well" (one that has not been in use for two years or more, and has not been plugged or registered as temporarily abandoned) and "major violation" (willful repeated violations relative to improper work, which could cause groundwater pollution; willful obstruction of DNR agents; repeated paperwork violations; hiring of a nonpermitted installation contractor to work unsupervised).
Well Installation Board members are increased from nine to eleven. Six members shall hold valid permits, two of which shall be for water well installation contractors, one shall be a holder of multiple permits (one of which is for water well installation contractor), and one as a pump installation contractor, among others. References to test hole installation contractor and test hole drilling have been added to section. Board is given authority to adopt rules relating to test hole installation industry.
A person must obtain a permit to practice as a pump installation contractor, heat pump installation contractor, test hole installation contractor or monitoring well installation contractor, and must comply with rules and regulations. Test hole installation contractors are added to list of professionals to whom DNR may issue permits.
It is recommended that permitted contractors supply potential water well customers information packets from DNR, regarding water wells and the protection of groundwater, within sixty days of
DESCRIPTION (continued)
completion of certain work, including repair work on wells drilled before November 1, 1987. Any well deemed abandoned shall be plugged by a permitted installation contractor. Any permitted individual who has his permit suspended, revoked, or has committed a major violation, or any person found guilty of a Class A misdemeanor in accordance with §256.637, shall be required to post a surety bond, certificate of deposit or letter of credit, as well as satisfying all legal judgments related to work performance, to be reinstated. The time to cure problems before Board pays for repair work out of bond, etc., is reduced from sixty to thirty days.
Operational wells in existence on November 1, 1987, are exempted from provisions and rules (currently date used is September 28, 1985), unless the well in question is repaired due to substandard condition. In those cases, the repair must include work to bring the well up to standards, with certain exceptions. When these wells are brought up to standards, certification reports and fees must be submitted to DNR. Any permitted installation contractor who adheres to provisions shall not guarantee the water quality or quantity that is produced.
The act deletes requirement that a person desiring connection to public water system attest that there are no known abandoned wells on the property. The act deletes the provision that any remaining balance in Groundwater Protection Fund that exceeds one-half of the next year's appropriation be transferred to general revenue fund. Permitted and nonpermitted installation contractors are required to retain all certification and registration records for at least three years.
"Hindering" DNR agents is deleted from list of criminal acts (willfully obstructing or preventing agents still Class A misdemeanor). If DNR finds that a substandard condition exists, it shall order well owner to remedy the problem. If well must be plugged or repaired, work must be done by permitted contractor. Any permitted installation contractor who knowingly employs someone with unresolved violations resulting in suspension or revocation is guilty of Class A misdemeanor.
Creates "Well Plugging Fund". Moneys derived from any source, except those collected by DNR pursuant to these sections, may be deposited into fund and used for plugging wells, well construction and repair, and the protection of groundwater.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Natural Resources
Office of the State Treasurer
Jeanne Jarrett, CPA
Director
February 9, 1998