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             giving the commissioner of the pollution control 
  1.5             agency certain interim authority; amending Minnesota 
  1.6             Statutes 1996, section 115.55, subdivisions 1, 2, 3, 
  1.7             5, 6, and 7. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 115.55, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  1.12  subdivision apply to this section and section 115.56. 
  1.13     (b) "Advisory committee" means the advisory committee on 
  1.14  individual sewage treatment systems established under the 
  1.15  individual sewage treatment system rules.  The advisory 
  1.16  committee must be appointed to ensure geographic representation 
  1.17  of the state and include elected public officials. 
  1.18     (c) "Applicable requirements" means: 
  1.19     (1) local ordinances that comply with the individual sewage 
  1.20  treatment system rules, as required in subdivision 2; or 
  1.21     (2) in areas not subject to the ordinances described in 
  1.22  clause (1), the individual sewage treatment system rules. 
  1.23     (d) "City" means a statutory or home rule charter city. 
  1.24     (e) "Commissioner" means the commissioner of the pollution 
  1.25  control agency. 
  1.26     (f) "Dwelling" means a building or place used or intended 
  2.1   to be used by human occupants as a single-family or two-family 
  2.2   unit. 
  2.3      (g) "Individual sewage treatment system" or "system" means 
  2.4   a sewage treatment system, or part thereof, serving a dwelling, 
  2.5   other establishment, or group thereof, that uses subsurface soil 
  2.6   treatment and disposal. 
  2.7      (h) "Individual sewage treatment system professional" means 
  2.8   an inspector, installer, site evaluator or designer, or pumper. 
  2.9      (i) "Individual sewage treatment system rules" means rules 
  2.10  adopted by the agency that establish minimum standards and 
  2.11  criteria for the design, location, installation, use, and 
  2.12  maintenance of individual sewage treatment systems. 
  2.13     (j) "Inspector" means a person who inspects individual 
  2.14  sewage treatment systems for compliance with the applicable 
  2.15  requirements. 
  2.16     (k) "Installer" means a person who constructs or repairs 
  2.17  individual sewage treatment systems. 
  2.18     (l) "Local unit of government" means a township, city, or 
  2.19  county. 
  2.20     (m) "Pumper" means a person who maintains components of 
  2.21  individual sewage treatment systems including, but not limited 
  2.22  to, septic, aerobic, and holding tanks. 
  2.23     (n) "Seasonal dwelling" means a dwelling that is occupied 
  2.24  or used for less than 180 days per year and less than 120 
  2.25  consecutive days. 
  2.26     (o) "Site evaluator or designer" means a person who: 
  2.27     (1) investigates soils and site characteristics to 
  2.28  determine suitability, limitations, and sizing requirements; and 
  2.29     (2) designs individual sewage treatment systems. 
  2.30     Sec. 2.  Minnesota Statutes 1996, section 115.55, 
  2.31  subdivision 2, is amended to read: 
  2.32     Subd. 2.  [LOCAL ORDINANCES.] (a) All counties that did not 
  2.33  adopt ordinances by May 7, 1994, or that do not have ordinances, 
  2.34  must adopt ordinances that comply with individual sewage 
  2.35  treatment system rules by January 1, 1999, unless all towns and 
  2.36  cities in the county have adopted such ordinances.  County 
  3.1   ordinances must apply to all areas of the county other than 
  3.2   areas within home rule charter cities, statutory cities, or 
  3.3   towns that have adopted ordinances that comply with this 
  3.4   section, and are as strict as the applicable county ordinances 
  3.5   except for those ordinances enacted as variances pursuant to 
  3.6   subdivision 3, paragraph (a), clause (10).  Any ordinance 
  3.7   adopted by a local unit of government before May 7, 1994, to 
  3.8   regulate individual sewage treatment systems must be in 
  3.9   compliance with the individual sewage treatment system rules by 
  3.10  January 1, 1998. 
  3.11     (b) A copy of each ordinance adopted under this subdivision 
  3.12  must be submitted to the commissioner upon adoption. 
  3.13     (c) A local unit of government must make available to the 
  3.14  public upon request a written list of any differences between 
  3.15  its ordinances and rules adopted under this section. 
  3.16     Sec. 3.  Minnesota Statutes 1996, section 115.55, 
  3.17  subdivision 3, is amended to read: 
  3.18     Subd. 3.  [RULES.] (a) The agency shall adopt rules 
  3.19  containing minimum standards and criteria for the design, 
  3.20  location, installation, use, and maintenance of individual 
  3.21  sewage treatment systems.  The rules must include: 
  3.22     (1) how the agency will ensure compliance under subdivision 
  3.23  2; 
  3.24     (2) how local units of government shall enforce ordinances 
  3.25  under subdivision 2, including requirements for permits and 
  3.26  inspection programs; 
  3.27     (3) how the advisory committee will participate in review 
  3.28  and implementation of the rules; 
  3.29     (4) provisions for alternative systems; 
  3.30     (5) provisions for handling and disposal of effluent; 
  3.31     (6) provisions for system abandonment; 
  3.32     (7) provisions allowing local units of government to adopt 
  3.33  alternative standards and criteria, provided that: 
  3.34     (i) the alternative standards and criteria may not apply to 
  3.35  new construction or replacement of systems, as defined by the 
  3.36  agency; and 
  4.1      (ii) the commissioner must certify that the alternative 
  4.2   standards and criteria adequately protect public health and the 
  4.3   environment; and relating to the development of local ordinances 
  4.4   under subdivision 7; 
  4.5      (8) procedures for inspectors to use in determining whether 
  4.6   a system sufficiently protects groundwater, using vertical soil 
  4.7   separation and other criteria, such as soil, groundwater flow, 
  4.8   vegetation, and landscape; 
  4.9      (9) procedures for the commissioner to approve new 
  4.10  individual sewage treatment system technologies which may 
  4.11  include approving warranties on an individual basis for use as 
  4.12  warrantied systems if the manufacturer or designer of the 
  4.13  technology provides to the commissioner: 
  4.14     (i) circumstances under which the technology will be used 
  4.15  as a warrantied system including use, installation instructions, 
  4.16  and performance expectations; 
  4.17     (ii) evidence of the manufacturer's financial ability, or 
  4.18  adequate financial assurance, to cover potential replacements 
  4.19  and upgrades necessitated by the system failing to meet the 
  4.20  performance expectations in item (i); and 
  4.21     (10) procedures for variances, including the consideration 
  4.22  of variances based on cost and variances that take into account 
  4.23  proximity of a system to other systems. 
  4.24     (b) The agency shall consult with the advisory committee 
  4.25  before adopting rules under this subdivision. 
  4.26     Sec. 4.  Minnesota Statutes 1996, section 115.55, 
  4.27  subdivision 5, is amended to read: 
  4.28     Subd. 5.  [INSPECTION.] (a) Except as provided in 
  4.29  subdivision 5b, paragraph (e) (b), a local unit of government 
  4.30  may not issue a building permit or variance for the addition of 
  4.31  a bedroom on property served by a system unless the system is in 
  4.32  compliance with the applicable requirements, as evidenced by a 
  4.33  certificate of compliance issued by a licensed an inspector or 
  4.34  site evaluator or designer.  A certificate of compliance is 
  4.35  valid for five years from the date of issuance, unless the local 
  4.36  unit of government finds evidence of an imminent threat to 
  5.1   public health or safety requiring removal and abatement under 
  5.2   section 145A.04, subdivision 8.  A local unit of government may 
  5.3   temporarily waive the certificate of compliance requirement for 
  5.4   a building permit or variance for which application is made 
  5.5   during the period from November 1 to April 30, provided that an 
  5.6   inspection of the system is performed by the following June 1 
  5.7   and the applicant submits a certificate of compliance by the 
  5.8   following September 30.  This paragraph does not apply if the 
  5.9   local unit of government does not have an ordinance requiring a 
  5.10  building permit to add a bedroom. 
  5.11     (b) A compliance inspection under this subdivision is may 
  5.12  be required for all new construction or replacement of a system, 
  5.13  as defined by agency rule.  The frequency and means of 
  5.14  compliance inspection may be determined by the applicable local 
  5.15  ordinance. 
  5.16     (c) A licensed inspector who inspects an existing system 
  5.17  may subsequently design and install a new system for that 
  5.18  property, provided the inspector is licensed to install 
  5.19  individual sewage treatment systems. 
  5.20     Subd. 5a.  [INSPECTION CRITERIA.] (a) An inspection 
  5.21  required by subdivision 5 must evaluate the criteria and specify 
  5.22  the consequent actions in paragraphs (b) to (e). 
  5.23     (b) If the inspector finds one or more of the following 
  5.24  conditions: 
  5.25     (1) sewage discharge to surface water; 
  5.26     (2) sewage discharge to ground surface; 
  5.27     (3) sewage backup; 
  5.28     (4) a cesspool; or 
  5.29     (5) any other situation with the potential to immediately 
  5.30  and adversely affect or threaten public health or safety, then 
  5.31  the system constitutes an imminent threat to public health or 
  5.32  safety and if not repaired, must be upgraded, replaced, or its 
  5.33  use discontinued within ten months of receipt of the notice 
  5.34  described in subdivision 5b, or within a shorter period of time 
  5.35  if required by local ordinance.  Any existing system that has at 
  5.36  least two feet of soil separation and does not have any of the 
  6.1   conditions in this paragraph need not be upgraded, repaired, or 
  6.2   replaced nor have its use discontinued, notwithstanding any 
  6.3   local ordinance to the contrary. 
  6.4      (c) If the local unit of government with jurisdiction over 
  6.5   the system has adopted an ordinance containing local standards, 
  6.6   the components listed in subdivision 7, must comply with the 
  6.7   ordinance.  If the system does not comply with the ordinance, it 
  6.8   must be upgraded, replaced, or its use discontinued according to 
  6.9   the ordinance. 
  6.10     (d) If a seepage pit, drywell, or leaching pit exists and 
  6.11  the local unit of government with jurisdiction over the system 
  6.12  has not adopted local standards to the contrary, the system is 
  6.13  failing and must be upgraded, replaced, or its use discontinued 
  6.14  within the time required by subdivision 3 or local ordinance. 
  6.15     (e) If the system fails to provide sufficient groundwater 
  6.16  protection, the inspector shall order that the system be 
  6.17  upgraded, replaced, or its use discontinued within the time 
  6.18  required by subdivision 3 or the local ordinance. 
  6.19     (f) The authority to find a threat to public health under 
  6.20  section 145A.04, subdivision 8, is in addition to the authority 
  6.21  to make a finding under paragraph (b). 
  6.22     (c) Subd. 5b.  [COMPLIANCE NOTICE.] (a) If a system 
  6.23  inspected under this subdivision 5 is not in compliance with the 
  6.24  applicable requirements required to be upgraded, replaced, or 
  6.25  its use discontinued under subdivision 5a, the inspector or site 
  6.26  evaluator or designer must issue a notice of noncompliance to 
  6.27  the property owner and must provide a copy of the notice to 
  6.28  the local unit of government to which application for the 
  6.29  building permit or variance was made with jurisdiction.  The 
  6.30  notice of noncompliance must specify why the system must be 
  6.31  upgraded, replaced, or its use discontinued.  If an upgrade is 
  6.32  required, the notice must specify the time period required by 
  6.33  law, rule, or local ordinance.  A local unit of government must 
  6.34  specify the upgrade time period in its ordinance. 
  6.35     (d) If the inspector or site evaluator or designer finds 
  6.36  that the system presents an imminent threat to public health or 
  7.1   safety, the inspector or site evaluator or designer must include 
  7.2   a statement to this effect in the notice and the property owner 
  7.3   must upgrade, replace, or discontinue use of the system within 
  7.4   ten months of receipt of the notice.  
  7.5      (e) (b) Except as provided in subdivision 5a, paragraph 
  7.6   (d) (b), if a system installed between May 27, 1989, and January 
  7.7   23, 1996, does not comply with applicable requirements, the 
  7.8   property owner has five years from the date of the bedroom 
  7.9   building permit to bring the system into compliance. 
  7.10     Sec. 5.  Minnesota Statutes 1996, section 115.55, 
  7.11  subdivision 6, is amended to read: 
  7.12     Subd. 6.  [DISCLOSURE OF INDIVIDUAL SEWAGE TREATMENT SYSTEM 
  7.13  TO BUYER.] After August 31, 1994, (a) Before signing an 
  7.14  agreement to sell or transfer real property, the seller or 
  7.15  transferor must disclose in writing to the buyer or transferee 
  7.16  information about the status and location of individual on how 
  7.17  sewage treatment systems on the property or serving the property 
  7.18  generated at the property is managed.  The disclosure must be 
  7.19  made by delivering a statement to the buyer or transferee that 
  7.20  either: 
  7.21     (1) a statement by the seller that there is no individual 
  7.22  sewage treatment system on or serving the property or a 
  7.23  disclosure statement describing the system and indicating the 
  7.24  sewage goes to a facility permitted by the agency; or 
  7.25     (2) the sewage does not go to a permitted facility, is 
  7.26  therefore subject to applicable requirements, and describes the 
  7.27  system in use, including the legal description of the property, 
  7.28  the county in which the property is located, and a map drawn 
  7.29  from available information showing the location of the system on 
  7.30  the property to the extent practicable.  If the seller or 
  7.31  transferor has knowledge that an abandoned individual sewage 
  7.32  treatment system exists on the property, the disclosure must 
  7.33  include a map showing its location.  In the disclosure statement 
  7.34  the seller must indicate whether the individual sewage treatment 
  7.35  system is in use and, to the seller's knowledge, in compliance 
  7.36  with applicable sewage treatment laws and rules.  Unless the 
  8.1   buyer and seller agree to the contrary in writing before the 
  8.2   closing of the sale, a seller who fails to disclose the 
  8.3   existence or known status of an individual sewage treatment 
  8.4   system at the time of sale, and who knew or had reason to know 
  8.5   of the existence or known status of the system,. 
  8.6      (b) A seller or transferor who fails to meet the 
  8.7   requirements of this section is liable to the buyer for costs 
  8.8   relating to bringing the system into compliance with the 
  8.9   individual sewage treatment system rules and for reasonable 
  8.10  attorney fees for collection of costs from the seller.  An 
  8.11  action under this subdivision must be commenced within two years 
  8.12  after the date on which the buyer closed the purchase or 
  8.13  transfer of the real property where the system is located. 
  8.14     Sec. 6.  Minnesota Statutes 1996, section 115.55, 
  8.15  subdivision 7, is amended to read: 
  8.16     Subd. 7.  [LOCAL ORDINANCE MAY BE MORE RESTRICTIVE 
  8.17  STANDARDS.] (a) Local units of government may adopt local 
  8.18  standards and criteria for defining an acceptable existing 
  8.19  system that may include soil classification, vegetation, system 
  8.20  use, localized well placement and construction, localized 
  8.21  density of systems and wells, extent of area to be covered by 
  8.22  local standards, groundwater flow patterns, and existing natural 
  8.23  or artificial drainage systems.  The local standards and 
  8.24  criteria for acceptable existing systems must adequately protect 
  8.25  public health and the environment based on local circumstances 
  8.26  in that jurisdiction. 
  8.27     (b) Local units of government, after providing 
  8.28  documentation of the conditions listed in this paragraph to the 
  8.29  commissioner, may adopt local standards by ordinance for new 
  8.30  construction or replacement in areas of sustained and projected 
  8.31  low population density where conditions render conformance to 
  8.32  applicable requirements difficult or otherwise inappropriate.  
  8.33  These local standards must protect human health and the 
  8.34  environment and be based on considerations including:  soil 
  8.35  classification, vegetation, system use, localized well placement 
  8.36  and construction, localized density of systems and wells, extent 
  9.1   of area to be covered by local standards, groundwater flow 
  9.2   patterns, and existing natural or artificial drainage systems.  
  9.3   The local standards must provide cost-effective and long-term 
  9.4   treatment alternatives. 
  9.5      (c) A local unit of government may adopt and enforce 
  9.6   ordinances or rules affecting individual sewage treatment 
  9.7   systems that are more restrictive than the agency's rules.  
  9.8      (b) If standards are adopted that are more restrictive than 
  9.9   the agency's rules, the local unit of government must submit the 
  9.10  more restrictive standards to the commissioner along with an 
  9.11  explanation of the more restrictive provisions. 
  9.12     (d) At least 30 days before the local standards become 
  9.13  effective, a local unit of government that adopts local 
  9.14  standards authorized under this subdivision must submit the 
  9.15  standards, criteria, justification, and where applicable, a 
  9.16  draft ordinance for review and comment to: 
  9.17     (1) the commissioner; 
  9.18     (2) the water management organization, as defined in 
  9.19  section 103B.205, subdivision 13, for local units of government 
  9.20  within the seven-county metropolitan area; and 
  9.21     (3) the local water planning advisory committee, created 
  9.22  under section 103B.321, subdivision 3, for local units of 
  9.23  government outside the seven-county metropolitan area. 
  9.24     (e) Local standards adopted under paragraph (a) or (b) must 
  9.25  not conflict with any requirements under other state laws or 
  9.26  rules or local ordinances, including, but not limited to, 
  9.27  requirements for: 
  9.28     (1) systems in shoreland areas regulated under sections 
  9.29  103F.201 to 103F.221; 
  9.30     (2) well construction and location regulated under chapter 
  9.31  103I; and 
  9.32     (3) systems used in connection with food, beverage, and 
  9.33  lodging establishments regulated under chapter 157. 
  9.34  The local standards must include references to applicable 
  9.35  requirements under other state laws or rules or local ordinances.
  9.36     Sec. 7.  [INTERIM AUTHORITY.] 
 10.1      (a) Until the effective date of the new rules adopted under 
 10.2   Minnesota Statutes, section 115.55, or December 31, 1999, 
 10.3   whichever is earlier, the commissioner has the temporary 
 10.4   authority to: 
 10.5      (1) allow local standards for the design, location, 
 10.6   installation, use, and maintenance of individual sewage 
 10.7   treatment systems submitted by local units of government, 
 10.8   provided that the local standards are submitted in compliance 
 10.9   with the procedures described in section 6 of this act; 
 10.10     (2) approve procedures for inspectors to use in determining 
 10.11  whether a system sufficiently protects groundwater as specified 
 10.12  in section 3; and 
 10.13     (3) approve new individual sewage treatment system 
 10.14  technologies for use as warrantied systems, provided that the 
 10.15  manufacturer of the technology provides the commissioner with 
 10.16  the documentation and financial assistance specified in section 
 10.17  3 of this act. 
 10.18     (b) The commissioner's actions under this section have the 
 10.19  force and effect of rules adopted under Minnesota Statutes, 
 10.20  section 115.55, and supersede the existing rules adopted under 
 10.21  that section. 
 10.22     (c) After the commissioner's temporary authority expires, 
 10.23  the commissioner's review of local standards and approval of 
 10.24  inspection procedures and new technologies must be pursuant to 
 10.25  rules adopted by the agency. 
 10.26     Sec. 8.  [LOCAL STANDARDS STUDY.] 
 10.27     The commissioner of the pollution control agency shall 
 10.28  conduct a study on the local standards established under 
 10.29  Minnesota Statutes, section 115.55, subdivision 7, in protecting 
 10.30  public health and the environment.  By February 15, 1999, the 
 10.31  commissioner must report on the study to the house and senate 
 10.32  committees with jurisdiction over environmental policy. 
 10.33     Sec. 9.  [EFFECTIVE DATE.] 
 10.34     This act is effective the day following final enactment.