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Ways and Means tightens spending options on 3M settlement money

The State Capitol, pictured May 3. House Photography file photo
The State Capitol, pictured May 3. House Photography file photo

House Republicans say increased guidance on how the state manages the $850 million lawsuit settlement from 3M Company would establish legislative guardrails, but DFL members railed against altering the bill that lays out settlement terms.

The House Ways and Means Committee approved HF3660 Monday, a bill that, as amended, would manage the settlement money provided by 3M Company, following an eight-year lawsuit in which the state alleged 3M’s use and development of perfluorochemicals had been contaminating drinking water since the 1950s

Rep. Kelly Fenton (R-Woodbury), the bill sponsor, successfully offered a delete-all amendment that would introduce additional guidelines and limitations on how the money is spent and managed. It was adopted on a 14-8 vote along party lines.

“It applies accountability and transparency while respecting the settlement,” Fenton said.

The amendment would codify the specific cities eligible to receive funding to enhance drinking water quality and require the Pollution Control Agency and Department of Natural Resources to solicit recommendations from those cities.

The amendment also dictates that expenditures would only go toward projects that are “technically feasible” and would require that no more than 10 percent of the money be spent on administrative expenses and no more than 10 percent on studies.

A provision to require the PCA and DNR submit biannual reports was also modified to require the agencies to develop a plan by Jan. 19, 2019 to evaluate and determine which projects receive funding.

Additional provisions in the amendment would allow account funds to be invested through the State Board of Investment and clarify that the bill would not grant the PCA and DNR power to control existing municipal water supply organizations in the affected area.

“We believe we should just rely on the language that’s already in the bill,” said PCA Assistant Commissioner Kirk Koudelka. “… Our concern is that this does create a dual system, one of the legislation and of the settlement, and the potential for additional lawsuits which only delays the investment in these communities.”

“Nobody’s intent is to jeopardize the settlement, but we want to have some guardrails around this money,” said Rep. Tony Jurgens (R-Cottage Grove).


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