(1) To qualify for reimbursement under 50-50-305, MCA, for regulation of sources of drinking water and ice, a local board of health must either enter into a written, signed cooperative agreement with the department that establishes the duties and responsibilities of the local board of health and the department consistent with this subchapter, or ensure that the following are done by the local health officer, sanitarian, or sanitarian-in-training:

(a) Ensure that, at least once per year, each plant or establishment within the jurisdiction of the local board of health where water is prepared for sale in bottles or other containers or artificial ice is manufactured, and the sources of all such water, are inspected, either by the foregoing individuals or by another government agency and, at the same time, that a sample of the water is submitted to a DEQ-approved laboratory for analysis for contaminants.

(b) Submit quarterly inspection reports to the department within 10 days following the close of each quarter of the fiscal year (1st quarter--September 30; 2nd quarter--December 31; 3rd quarter--March 31; 4th quarter--June 30) on forms approved by the department.

(c) Retain for 5 years all documentation of enforcement of this subchapter, including but not limited to inspection reports, consumer complaints, illness investigations, plans of correction, and enforcement actions, and, upon request, submit copies of the documentation to the department or otherwise make it available to the department.

(2) A failure by the local board of health to meet all of its responsibilities under the cooperative agreement or under (1) (a) through (d) above shall result in the withholding of funds from the local board reimbursement fund in an amount to be determined by the department.