1.1                          A bill for an act
  1.2             relating to the environment; modifying requirements 
  1.3             relating to individual sewage treatment systems; 
  1.4             amending Minnesota Statutes 1996, section 115.55, 
  1.5             subdivisions 2, 3, 5, 6, 7, and by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 115.55, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [LOCAL ORDINANCES.] (a) All counties that did not 
  1.11  adopt ordinances by May 7, 1994, or that do not have ordinances, 
  1.12  must adopt ordinances that comply with individual sewage 
  1.13  treatment system rules by January 1, 1999, unless all towns and 
  1.14  cities in the county have adopted such ordinances.  County 
  1.15  ordinances must apply to all areas of the county other than 
  1.16  areas within home rule charter cities, statutory cities, or 
  1.17  towns that have adopted ordinances that comply with this 
  1.18  section, and are as strict as the applicable county ordinances.  
  1.19  Any ordinance adopted by a local unit of government before May 
  1.20  7, 1994, to regulate individual sewage treatment systems must be 
  1.21  in compliance with the individual sewage treatment system rules 
  1.22  by January 1, 1998. 
  1.23     (b) Paragraph (a) applies only if the state has made 
  1.24  financial assistance available for counties to adopt or amend 
  1.25  the ordinances to comply with this section. 
  1.26     (c) A copy of each ordinance adopted under this subdivision 
  2.1   must be submitted to the commissioner upon adoption. 
  2.2      (d) A local unit of government must make available to the 
  2.3   public upon request a written list of any differences between 
  2.4   its ordinances and rules adopted under this section. 
  2.5      Sec. 2.  Minnesota Statutes 1996, section 115.55, 
  2.6   subdivision 3, is amended to read: 
  2.7      Subd. 3.  [RULES.] (a) The agency shall adopt rules 
  2.8   containing minimum standards and criteria for the design, 
  2.9   location, installation, use, and maintenance of individual 
  2.10  sewage treatment systems.  The rules must include: 
  2.11     (1) how the agency will ensure compliance under subdivision 
  2.12  2; 
  2.13     (2) how local units of government shall enforce ordinances 
  2.14  under subdivision 2, including requirements for permits and 
  2.15  inspection programs; 
  2.16     (3) how the advisory committee will participate in review 
  2.17  and implementation of the rules; 
  2.18     (4) provisions for alternative systems; 
  2.19     (5) provisions for handling and disposal of effluent; 
  2.20     (6) provisions for system abandonment; 
  2.21     (7) provisions allowing local units of government to adopt 
  2.22  alternative standards and criteria, provided that: 
  2.23     (i) the alternative standards and criteria may not apply to 
  2.24  new construction or replacement of systems, as defined by the 
  2.25  agency; and 
  2.26     (ii) the commissioner must certify that the alternative 
  2.27  standards and criteria adequately protect public health and the 
  2.28  environment; and relating to the development of local ordinances 
  2.29  under subdivision 7; 
  2.30     (8) procedures for inspectors to use in determining whether 
  2.31  a system sufficiently protects groundwater, using vertical soil 
  2.32  separation and other criteria, such as soil, groundwater flow, 
  2.33  vegetation, and landscape; 
  2.34     (9) procedures for the commissioner to approve new 
  2.35  individual sewage treatment system technologies under 
  2.36  subdivision 8; and 
  3.1      (10) procedures for variances, including the consideration 
  3.2   of variances based on cost and variances that take into account 
  3.3   proximity of a system to other systems. 
  3.4      (b) The agency shall consult with the advisory committee 
  3.5   before adopting rules under this subdivision. 
  3.6      Sec. 3.  Minnesota Statutes 1996, section 115.55, 
  3.7   subdivision 5, is amended to read: 
  3.8      Subd. 5.  [INSPECTION.] (a) Except as provided in 
  3.9   subdivision 5b, paragraph (e) (b), a local unit of government 
  3.10  may not issue a building permit or variance for the addition of 
  3.11  a bedroom on property served by a system unless the system is in 
  3.12  compliance with the applicable requirements, as evidenced by a 
  3.13  certificate of compliance issued by a licensed an inspector or 
  3.14  site evaluator or designer.  A local unit of government may 
  3.15  temporarily waive the certificate of compliance requirement for 
  3.16  a building permit or variance for which application is made 
  3.17  during the period from November 1 to April 30, provided that an 
  3.18  inspection of the system is performed by the following June 1 
  3.19  and the applicant submits a certificate of compliance by the 
  3.20  following September 30.  This paragraph does not apply if the 
  3.21  local unit of government does not have an ordinance requiring a 
  3.22  building permit to add a bedroom. 
  3.23     (b) A compliance inspection under this subdivision is shall 
  3.24  be required for all new construction or replacement of a system, 
  3.25  as defined by agency rule.  The frequency and means of 
  3.26  compliance inspection may be determined by the applicable local 
  3.27  ordinance. 
  3.28     (c) A certificate of compliance is valid for three years 
  3.29  from the date of issuance unless the local unit of government 
  3.30  finds evidence of an imminent threat to public health or safety 
  3.31  requiring removal and abatement under section 145A.04, 
  3.32  subdivision 8. 
  3.33     Subd. 5a.  [INSPECTION CRITERIA.] (a) An inspection 
  3.34  required by subdivision 5 must evaluate the criteria and specify 
  3.35  the consequent actions in paragraphs (b) to (e). 
  3.36     (b) If the inspector finds one or more of the following 
  4.1   conditions: 
  4.2      (1) sewage discharge to surface water; 
  4.3      (2) sewage discharge to ground surface; 
  4.4      (3) sewage backup; 
  4.5      (4) a cesspool; or 
  4.6      (5) any other situation with the potential to immediately 
  4.7   and adversely affect or threaten public health or safety, then 
  4.8   the system constitutes an imminent threat to public health or 
  4.9   safety and, if not repaired, must be upgraded, replaced, or its 
  4.10  use discontinued within ten months of receipt of the notice 
  4.11  described in subdivision 5b, or within a shorter period of time 
  4.12  if required by local ordinance.  Any existing system that has at 
  4.13  least two feet of soil separation from groundwater or bedrock, 
  4.14  and does not have any of the conditions in this paragraph, need 
  4.15  not be upgraded, repaired, replaced, or its use discontinued. 
  4.16     (c) If the local unit of government with jurisdiction over 
  4.17  the system has adopted an ordinance containing local standards, 
  4.18  the soil classification must be noted and the components listed 
  4.19  in subdivision 7, paragraphs (a) and (b), must comply with the 
  4.20  ordinance.  The ordinance may provide for the immediate or 
  4.21  eventual upgrade, replacement, repair, or discontinuation of use 
  4.22  of noncompliant systems. 
  4.23     (d) If a seepage pit, drywell, or leaching pit exists and 
  4.24  the local unit of government with jurisdiction over the system 
  4.25  has not adopted local standards to the contrary, the system is 
  4.26  failing and must be upgraded, replaced, or its use discontinued 
  4.27  within the time required by subdivision 3 or local ordinance. 
  4.28     (e) If the system fails to provide sufficient groundwater 
  4.29  protection, then the local unit of government or its agent shall 
  4.30  order that the system be upgraded, replaced, or its use 
  4.31  discontinued within the time required by rule or the local 
  4.32  ordinance. 
  4.33     (f) The authority to find a threat to public health under 
  4.34  section 145A.04, subdivision 8, is in addition to the authority 
  4.35  to make a finding under paragraph (b). 
  4.36     (c) Subd. 5b.  [COMPLIANCE NOTICE.] (a) If a system 
  5.1   inspected under this subdivision 5 is not in compliance with the 
  5.2   applicable requirements required to be upgraded, replaced, or 
  5.3   its use discontinued under subdivision 5a, the inspector or site 
  5.4   evaluator or designer must issue a notice of noncompliance to 
  5.5   the property owner and must provide a copy of the notice to 
  5.6   the local unit of government to which application for the 
  5.7   building permit or variance was made with jurisdiction.  The 
  5.8   notice of noncompliance must specify why the system must be 
  5.9   upgraded, replaced, or its use discontinued.  If an upgrade is 
  5.10  required, the notice must specify the time period required by 
  5.11  law, rule, or local ordinance.  A local unit of government must 
  5.12  specify the upgrade time period in its ordinance. 
  5.13     (d) If the inspector or site evaluator or designer finds 
  5.14  that the system presents an imminent threat to public health or 
  5.15  safety, the inspector or site evaluator or designer must include 
  5.16  a statement to this effect in the notice and the property owner 
  5.17  must upgrade, replace, or discontinue use of the system within 
  5.18  ten months of receipt of the notice.  
  5.19     (e) (b) Except as provided in subdivision 5a, paragraph 
  5.20  (d) (b), if a system installed between May 27, 1989, and January 
  5.21  23, 1996, does not comply with applicable requirements, the 
  5.22  property owner has five years from the date of the bedroom 
  5.23  building permit to bring the system into compliance. 
  5.24     Sec. 4.  Minnesota Statutes 1996, section 115.55, 
  5.25  subdivision 6, is amended to read: 
  5.26     Subd. 6.  [DISCLOSURE OF INDIVIDUAL SEWAGE TREATMENT SYSTEM 
  5.27  TO BUYER.] After August 31, 1994, (a) Before signing an 
  5.28  agreement to sell or transfer real property, the seller or 
  5.29  transferor must disclose in writing to the buyer or transferee 
  5.30  information about the status and location of individual on how 
  5.31  sewage treatment systems on the property or serving the property 
  5.32  generated at the property is managed.  The disclosure must be 
  5.33  made by delivering to the buyer If an abandoned individual 
  5.34  sewage treatment system exists on the property, the disclosure 
  5.35  must include a map showing its location and that either: 
  5.36     (1) a statement by the seller that there is no individual 
  6.1   sewage treatment system on or serving the property or a 
  6.2   disclosure statement describing the system and indicating the 
  6.3   sewage goes to a facility permitted by the agency; or 
  6.4      (2) the sewage does not go to a permitted facility, is 
  6.5   therefore subject to applicable requirements, and describes the 
  6.6   system in use, including the legal description of the property, 
  6.7   the county in which the property is located, and a map drawn 
  6.8   from available information showing the location of the system on 
  6.9   the property to the extent practicable.  In the disclosure 
  6.10  statement the seller must indicate whether the individual sewage 
  6.11  treatment system is in use and, to the seller's knowledge, in 
  6.12  compliance with applicable sewage treatment laws and rules.  
  6.13  Unless the buyer and seller agree to the contrary in writing 
  6.14  before the closing of the sale, a seller who fails to disclose 
  6.15  the existence or known status of an individual sewage treatment 
  6.16  system at the time of sale, and who knew or had reason to know 
  6.17  of the existence or known status of the system,. 
  6.18     (b) A seller or transferor who fails to meet the 
  6.19  requirements of this section is liable to the buyer for costs 
  6.20  relating to bringing the system into compliance with the 
  6.21  individual sewage treatment system rules and for reasonable 
  6.22  attorney fees for collection of costs from the seller.  An 
  6.23  action under this subdivision must be commenced within two years 
  6.24  after the date on which the buyer closed the purchase or 
  6.25  transfer of the real property where the system is located. 
  6.26     Sec. 5.  Minnesota Statutes 1996, section 115.55, 
  6.27  subdivision 7, is amended to read: 
  6.28     Subd. 7.  [LOCAL ORDINANCE MAY BE MORE RESTRICTIVE 
  6.29  STANDARDS.] (a) Local units of government may adopt local 
  6.30  standards and criteria for defining an acceptable existing 
  6.31  system that may include soil classification, vegetation, system 
  6.32  use, localized well placement and construction, localized 
  6.33  density of systems and wells, extent of area to be covered by 
  6.34  local standards, groundwater flow patterns, and existing natural 
  6.35  or artificial drainage systems.  The local standards and 
  6.36  criteria shall be submitted to the commissioner for comment 
  7.1   prior to adoption to demonstrate that, based on local 
  7.2   circumstances in that jurisdiction, they adequately protect 
  7.3   public health and the environment. 
  7.4      (b) Local units of government, after a demonstration of 
  7.5   need to the commissioner, may adopt local standards by ordinance 
  7.6   for new construction or replacement in areas of sustained and 
  7.7   projected low population density where conditions render 
  7.8   conformance to applicable requirements difficult or otherwise 
  7.9   inappropriate.  These local standards must protect human health 
  7.10  and the environment and be based on considerations including:  
  7.11  soil classification, vegetation, system use, localized well 
  7.12  placement and construction, localized density of systems and 
  7.13  wells, extent of area to be covered by local standards, 
  7.14  groundwater flow patterns, and existing natural or artificial 
  7.15  drainage systems.  The local standards must provide 
  7.16  cost-effective and long-term treatment alternatives.  The draft 
  7.17  ordinance incorporating the local standards must be submitted to 
  7.18  the local water planning advisory committee, created under 
  7.19  section 103B.321, subdivision 3, and then submitted with 
  7.20  justification to the commissioner 30 days before adoption for 
  7.21  review and comment. 
  7.22     (c) A local unit of government may adopt and enforce 
  7.23  ordinances or rules affecting individual sewage treatment 
  7.24  systems that are more restrictive than the agency's rules.  
  7.25     (b) If standards are adopted that are more restrictive than 
  7.26  the agency's rules, the local unit of government must submit the 
  7.27  more restrictive standards to the commissioner along with an 
  7.28  explanation of the more restrictive provisions. 
  7.29     (d) Local standards adopted under paragraph (a) or (b) must 
  7.30  not conflict with any requirements under other state laws or 
  7.31  rules or local ordinances, including, but not limited to, 
  7.32  requirements for: 
  7.33     (1) systems in shoreland areas, regulated under sections 
  7.34  103F.201 to 103F.221; 
  7.35     (2) well construction and location, regulated under chapter 
  7.36  103I; and 
  8.1      (3) systems used in connection with food, beverage, and 
  8.2   lodging establishments, regulated under chapter 157. 
  8.3   The local standards must include references to applicable 
  8.4   requirements under other state laws or rules or local ordinances.
  8.5      Sec. 6.  Minnesota Statutes 1996, section 115.55, is 
  8.6   amended by adding a subdivision to read: 
  8.7      Subd. 8.  [NEW TECHNOLOGIES.] New individual sewage 
  8.8   treatment system technologies may be installed as warrantied 
  8.9   systems if not specifically prohibited in local ordinance, 
  8.10  provided however that the manufacturer or designer provides to 
  8.11  the commissioner documentation of the following: 
  8.12     (1) how the technology must be used and installed, how it 
  8.13  is expected to perform under those conditions, the anticipated 
  8.14  design life, and the period to be warrantied under clause (4); 
  8.15     (2) pertinent existing data, including in-field testing 
  8.16  data, that the system will perform as expected; 
  8.17     (3) financial assurance or satisfactory proof of the 
  8.18  manufacturer's or designer's financial ability to cover 
  8.19  potential replacement and upgrades necessitated by the system 
  8.20  failing to meet the performance expectations of clause (1) for 
  8.21  the duration of the warranty period; and 
  8.22     (4) a full warranty effective for the designated warranty 
  8.23  period in clause (1), which must be at least five years from the 
  8.24  time of installation, covering design, labor, and material costs 
  8.25  to remedy failure to meet performance expectations in clause (1) 
  8.26  for systems used and installed in accordance with the 
  8.27  manufacturer's or designer's instructions. 
  8.28     The commissioner must make available a list of warrantied 
  8.29  systems for which documentation has been provided to the 
  8.30  commissioner under this subdivision. 
  8.31     Sec. 7.  [EFFECTIVE DATE.] 
  8.32     This act is effective the day following final enactment.