1.1                          A bill for an act 
  1.2             relating to the environment; authorizing establishment 
  1.3             of municipal individual sewage treatment system and 
  1.4             well loan programs; specifying compliance requirements 
  1.5             for certain existing individual sewage treatment 
  1.6             systems; clarifying licensing requirements for sewage 
  1.7             system pumpers; providing for certain temporary 
  1.8             licenses; amending Minnesota Statutes 1994, sections 
  1.9             115.55, subdivision 5; and 115.56, by adding a 
  1.10            subdivision; Minnesota Statutes 1995 Supplement, 
  1.11            section 115.56, subdivision 2; proposing coding for 
  1.12            new law in Minnesota Statutes, chapter 115. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1994, section 115.55, 
  1.15  subdivision 5, is amended to read: 
  1.16     Subd. 5.  [INSPECTION.] (a) Except as provided in paragraph 
  1.17  (b), after December 31, 1995 (e), a local unit of government may 
  1.18  not issue a building permit or variance for new construction or 
  1.19  replacement of a system, as defined by agency rule, or for the 
  1.20  addition of a bedroom or bathroom on property served by a system 
  1.21  unless the system is in compliance with the applicable 
  1.22  requirements, as evidenced by a certificate of compliance issued 
  1.23  by a licensed inspector or site evaluator or designer.  A local 
  1.24  unit of government may temporarily waive the certificate of 
  1.25  compliance requirement for a building permit or variance for 
  1.26  which application is made during the period from November 1 to 
  1.27  April 30, provided that an inspection of the system is performed 
  1.28  by the following June 1 and the applicant submits a certificate 
  1.29  of compliance by the following September 30. 
  2.1      (b) In areas that are not subject to ordinances adopted 
  2.2   under subdivision 2, A compliance inspection under this 
  2.3   subdivision is required only for all new construction or 
  2.4   replacement of a system, as defined by agency rule. 
  2.5      (c) If a system inspected under this subdivision is not in 
  2.6   compliance with the applicable requirements, the inspector or 
  2.7   site evaluator or designer must issue a notice of noncompliance 
  2.8   to the property owner and must provide a copy of the notice to 
  2.9   the local unit of government to which application for the 
  2.10  building permit or variance was made.  
  2.11     (d) If the inspector or site evaluator or designer finds 
  2.12  that the system presents an imminent threat to public health or 
  2.13  safety, the inspector or site evaluator or designer must include 
  2.14  a statement to this effect in the notice and the property owner 
  2.15  must upgrade, replace, or discontinue use of the system within 
  2.16  ten months of receipt of the notice. 
  2.17     (e) Except as provided in paragraph (d), if a system 
  2.18  installed between May 27, 1989, and January 23, 1996, does not 
  2.19  comply with applicable requirements, the property owner has five 
  2.20  years from the date of the bedroom building permit to bring the 
  2.21  system into compliance. 
  2.22     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.23  115.56, subdivision 2, is amended to read: 
  2.24     Subd. 2.  [LICENSE REQUIRED.] (a) Except as provided in 
  2.25  paragraph (b), after March 31, 1996, a person may not design, 
  2.26  install, maintain, pump, or inspect an individual sewage 
  2.27  treatment system without a license issued by the commissioner. 
  2.28     (b) A license is not required for a person who complies 
  2.29  with the applicable requirements if the person is: 
  2.30     (1) a qualified employee of state or local government who 
  2.31  has passed the examination described in paragraph (d) or a 
  2.32  similar examination; 
  2.33     (2) an individual who constructs an individual sewage 
  2.34  treatment system on land that is owned or leased by the 
  2.35  individual and functions solely as the individual's dwelling or 
  2.36  seasonal dwelling; 
  3.1      (3) a farmer who pumps and disposes of sewage waste from 
  3.2   individual sewage treatment systems, holding tanks, and privies 
  3.3   on land that is owned or leased by the farmer; or 
  3.4      (4) an individual who performs labor or services for a 
  3.5   person licensed under this section in connection with the 
  3.6   design, installation, maintenance, pumping, or inspection of an 
  3.7   individual sewage treatment system at the direction and under 
  3.8   the personal supervision of a person licensed under this section.
  3.9      A person constructing an individual sewage treatment system 
  3.10  under clause (2) must consult with a site evaluator or designer 
  3.11  before beginning construction.  In addition, the system must be 
  3.12  inspected before being covered and a compliance report must be 
  3.13  provided to the local unit of government after the inspection. 
  3.14     (c) The commissioner, in conjunction with the University of 
  3.15  Minnesota extension service or another higher education 
  3.16  institution, shall ensure adequate training exists for 
  3.17  individual sewage treatment system professionals. 
  3.18     (d) The commissioner shall conduct examinations to test the 
  3.19  knowledge of applicants for licensing and shall issue 
  3.20  documentation of licensing.  
  3.21     (e) Licenses may be issued only upon successful completion 
  3.22  of the required examination and submission of proof of 
  3.23  sufficient experience, proof of general liability insurance, and 
  3.24  a corporate surety bond in the amount of at least $10,000.  
  3.25     (f) Notwithstanding paragraph (e), the examination and 
  3.26  proof of experience are not required for an individual sewage 
  3.27  treatment system professional who, on the effective date of the 
  3.28  rules adopted under subdivision 1, holds a certification 
  3.29  attained by examination and experience under a voluntary 
  3.30  certification program administered by the agency. 
  3.31     (g) Local units of government may not require additional 
  3.32  local licenses for individual sewage treatment system 
  3.33  professionals. 
  3.34     (h) A pumper whose annual gross revenue from pumping 
  3.35  systems is $9,000 or less and whose gross revenue from pumping 
  3.36  systems during the year ending May 11, 1994, was at least $1,000 
  4.1   is not subject to training requirements in rules adopted under 
  4.2   subdivision 1, except for any training required for initial 
  4.3   licensure. 
  4.4      Sec. 3.  Minnesota Statutes 1994, section 115.56, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 2a.  [TEMPORARY LICENSE.] The agency may issue, for a 
  4.7   fee of $100, a temporary license for an activity listed in 
  4.8   subdivision 1, paragraph (a), to a person who: 
  4.9      (1) has submitted to the agency proof of sufficient 
  4.10  experience, as determined by the agency, in the activity for 
  4.11  which the license is sought; and 
  4.12     (2) has completed training under a voluntary certification 
  4.13  program administered by the agency. 
  4.14  A temporary license issued under this subdivision is effective 
  4.15  until August 15, 1996. 
  4.16     Sec. 4.  [115.57] [INDIVIDUAL SEWAGE TREATMENT SYSTEM OR 
  4.17  WATER WELL LOAN PROGRAM.] 
  4.18     Subdivision 1.  [PURPOSE.] The legislature finds that a 
  4.19  need exists to provide for the creation of a public loan program 
  4.20  that assists property owners to finance the site evaluation, 
  4.21  design, installation, repair, and replacement of individual 
  4.22  sewage treatment systems and to finance the sealing and 
  4.23  replacement of wells on privately owned property.  Such a public 
  4.24  loan program promotes the public health and welfare by 
  4.25  furthering the policy of the state of Minnesota to prevent, 
  4.26  reduce, and eliminate water pollution.  The legislature declares 
  4.27  that the actions required to establish and implement a public 
  4.28  loan program for the purposes stated in this section are a 
  4.29  public purpose and that the execution and financing of such a 
  4.30  program is a public purpose. 
  4.31     Subd. 2.  [DEFINITIONS.] (a) The terms defined in this 
  4.32  subdivision and section 115.55, subdivision 1, apply to this 
  4.33  section. 
  4.34     (b) "Improvement" means the site evaluation, design, 
  4.35  installation, repair, or replacement of an individual sewage 
  4.36  treatment system or sealing or replacement of a well. 
  5.1      (c) "Municipality" means a township, city, county, or any 
  5.2   other governmental subdivision of the state responsible by law 
  5.3   for the prevention, control, and abatement of water pollution in 
  5.4   any area of the state. 
  5.5      (d) "Property owner" means the owner or owners as recorded 
  5.6   on the tax roll of the county where the real property on which 
  5.7   the individual sewage treatment system or well is installed, 
  5.8   repaired, or replaced is located. 
  5.9      (e) "Well" means a well as defined in section 103I.005, 
  5.10  subdivision 21: 
  5.11     (1) that is required to be sealed under section 103I.301, 
  5.12  subdivision 1; or 
  5.13     (2) the relocation of which is necessary for compliance 
  5.14  with applicable requirements as defined in section 115.55, 
  5.15  subdivision 1. 
  5.16     Subd. 3.  [AUTHORITY.] A municipality may, individually or 
  5.17  cooperatively with other municipalities, establish an individual 
  5.18  sewage treatment system or well loan program, or both, for the 
  5.19  purpose of providing loans to property owners for the site 
  5.20  evaluation, design, installation, repair, or replacement of 
  5.21  individual sewage treatment systems or for the sealing or 
  5.22  replacement of wells on privately owned property.  The governing 
  5.23  body of a municipality shall provide for the operation and 
  5.24  administration of the program by ordinance.  A municipality may 
  5.25  appoint an administrator to operate the program.  
  5.26     Subd. 4.  [LIMITATIONS.] Loans may not be used to 
  5.27  facilitate new building construction.  As used in this 
  5.28  subdivision, "facilitate new building construction" includes 
  5.29  increasing capacity of an individual sewage treatment system 
  5.30  beyond what is reasonably required to serve existing buildings 
  5.31  and lots in existing recorded plats. 
  5.32     Subd. 5.  [FINANCING.] A municipality may issue bonds in 
  5.33  accordance with chapter 475 to finance the program, except that 
  5.34  an election is not required and the obligations are not subject 
  5.35  to the general limit on net debt for the municipality.  
  5.36  Financing may also be provided by issuing certificates of 
  6.1   indebtedness, securing loans, or transferring available funds 
  6.2   that the municipality is not obligated by law to use for some 
  6.3   other purpose.  Funds procured for the individual sewage 
  6.4   treatment system or well loan program shall be dedicated to the 
  6.5   program. 
  6.6      Subd. 6.  [ASSESSMENTS.] (a) An amount loaned under the 
  6.7   program, including accruing interest, shall be a lien against 
  6.8   the real property for which the improvement was made and shall 
  6.9   be assessed against the property or properties benefited unless 
  6.10  the amount is prepaid.  An amount loaned under the program and 
  6.11  assessed against the property shall be a priority lien only 
  6.12  against subsequent liens. 
  6.13     (b) Upon issuing a loan, the municipality shall provide the 
  6.14  property owner a notice that states the following information:  
  6.15     (1) the amount to be specially assessed against the 
  6.16  property; 
  6.17     (2) the right of the property owner to prepay the entire 
  6.18  assessment; 
  6.19     (3) the public official to whom prepayment must be made; 
  6.20     (4) the time within which prepayment must be made without 
  6.21  the assessment of interest; 
  6.22     (5) the rate of interest to be accrued if the assessment is 
  6.23  not prepaid within the required time period; and 
  6.24     (6) the period of the assessment. 
  6.25     (c) The municipality shall, by ordinance, provide for a 
  6.26  right of property owners to prepay the assessment and may 
  6.27  establish such other assessment procedures as determined 
  6.28  necessary and consistent with the provisions of this section. 
  6.29     Subd. 7.  [ORDINANCES; CONSTRUCTION STANDARDS.] A 
  6.30  municipality may not establish an individual sewage treatment 
  6.31  system loan program unless ordinances pursuant to rules adopted 
  6.32  under section 115.55, subdivision 3, are in full force and 
  6.33  effect.  All repairs and improvements made to individual sewage 
  6.34  treatment systems under this section shall be performed by a 
  6.35  licensed individual sewage treatment system professional and 
  6.36  shall comply with agency rules adopted pursuant to section 
  7.1   115.55, subdivision 3, and other applicable requirements.  All 
  7.2   improvements to wells under this section must be made by a well 
  7.3   contractor or a limited well contractor, as appropriate, 
  7.4   licensed under chapter 103I. 
  7.5      Subd. 8.  [DISSOLUTION.] The governing body of a 
  7.6   municipality may dissolve the program by ordinance.  The 
  7.7   ordinance shall provide for the collection of all outstanding 
  7.8   assessments, repayment of any remaining indebtedness incurred to 
  7.9   finance the program, and the final distribution of any money 
  7.10  remaining in the loan fund. 
  7.11     Sec. 5.  [EFFECTIVE DATE.] 
  7.12     Sections 1 and 3 are effective the day following final 
  7.13  enactment.  Section 2 is effective March 31, 1996.