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Key: (1) language to be deleted (2) new language

                            CHAPTER 617-H.F.No. 2158 
                  An act relating to pollution; requiring that certain 
                  towns, cities, and counties have ordinances complying 
                  with pollution control agency rules regarding 
                  individual sewage treatment systems; requiring the 
                  agency to license sewage treatment professionals; 
                  requiring rulemaking; appropriating money; proposing 
                  coding for new law in Minnesota Statutes, chapter 115. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [115.55] [INDIVIDUAL SEWAGE TREATMENT SYSTEMS.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section and section 2. 
           (b) "Advisory committee" means the advisory committee on 
        individual sewage treatment systems established under the 
        individual sewage treatment system rules. 
           (c) "Applicable requirements" means: 
           (1) local ordinances that comply with the individual sewage 
        treatment system rules, as required in subdivision 2; or 
           (2) in areas not subject to the ordinances described in 
        clause (1), the individual sewage treatment system rules. 
           (d) "City" means a statutory or home rule charter city. 
           (e) "Commissioner" means the commissioner of the pollution 
        control agency. 
           (f) "Dwelling" means a building or place used or intended 
        to be used by human occupants as a single-family or two-family 
        unit. 
           (g) "Individual sewage treatment system" or "system" means 
        a sewage treatment system, or part thereof, serving a dwelling, 
        other establishment, or group thereof, that uses subsurface soil 
        treatment and disposal. 
           (h) "Individual sewage treatment system professional" means 
        an inspector, installer, site evaluator or designer, or pumper. 
           (i) "Individual sewage treatment system rules" means rules 
        adopted by the agency that establish minimum standards and 
        criteria for the design, location, installation, use, and 
        maintenance of individual sewage treatment systems. 
           (j) "Inspector" means a person who inspects individual 
        sewage treatment systems for compliance with the applicable 
        requirements. 
           (k) "Installer" means a person who constructs or repairs 
        individual sewage treatment systems. 
           (l) "Local unit of government" means a township, city, or 
        county. 
           (m) "Pumper" means a person who maintains components of 
        individual sewage treatment systems including, but not limited 
        to, septic, aerobic, and holding tanks. 
           (n) "Seasonal dwelling" means a dwelling that is occupied 
        or used for less than 180 days per year and less than 120 
        consecutive days. 
           (o) "Site evaluator or designer" means a person who: 
           (1) investigates soils and site characteristics to 
        determine suitability, limitations, and sizing requirements; and 
           (2) designs individual sewage treatment systems. 
           Subd. 2.  [LOCAL ORDINANCES.] (a) Any ordinance adopted by 
        a local unit of government to regulate individual sewage 
        treatment systems must be in compliance with the individual 
        sewage treatment system rules by January 1, 1996. 
           (b) A copy of each ordinance adopted under this subdivision 
        must be submitted to the commissioner upon adoption. 
           Subd. 3.  [RULES.] (a) The agency shall adopt rules 
        containing minimum standards and criteria for the design, 
        location, installation, use, and maintenance of individual 
        sewage treatment systems.  The rules must include: 
           (1) how the agency will ensure compliance under subdivision 
        2; 
           (2) how local units of government shall enforce ordinances 
        under subdivision 2, including requirements for permits and 
        inspection programs; 
           (3) how the advisory committee will participate in review 
        and implementation of the rules; 
           (4) provisions for alternative systems; 
           (5) provisions for handling and disposal of effluent; 
           (6) provisions for system abandonment; 
           (7) provisions allowing local units of government to adopt 
        alternative standards and criteria, provided that: 
           (i) the alternative standards and criteria may not apply to 
        new construction or replacement of systems, as defined by the 
        agency; and 
           (ii) the commissioner must certify that the alternative 
        standards and criteria adequately protect public health and the 
        environment; and 
           (8) procedures for variances, including the consideration 
        of variances based on cost and variances that take into account 
        proximity of a system to other systems. 
           (b) The agency shall consult with the advisory committee 
        before adopting rules under this subdivision. 
           Subd. 4.  [COMPLIANCE WITH RULES REQUIRED; 
        ENFORCEMENT.] (a) A person who designs, installs, alters, 
        repairs, maintains, pumps, or inspects all or part of an 
        individual sewage treatment system shall comply with the 
        applicable requirements. 
           (b) Local units of government may enforce, under section 
        115.071, subdivisions 3 and 4, ordinances that are applicable 
        requirements. 
           Subd. 5.  [INSPECTION.] (a) Except as provided in paragraph 
        (b), after December 31, 1995, a local unit of government may not 
        issue a building permit or variance for new construction or 
        replacement of a system, as defined by agency rule, or for the 
        addition of a bedroom or bathroom on property served by a system 
        unless the system is in compliance with the applicable 
        requirements, as evidenced by a certificate of compliance issued 
        by a licensed inspector or site evaluator or designer. 
           (b) In areas that are not subject to ordinances adopted 
        under subdivision 2, a compliance inspection under this 
        subdivision is required only for new construction or replacement 
        of a system, as defined by agency rule. 
           (c) If a system inspected under this subdivision is not in 
        compliance with the applicable requirements, the inspector or 
        site evaluator or designer must issue a notice of noncompliance 
        to the property owner and must provide a copy of the notice to 
        the local unit of government to which application for the 
        building permit or variance was made.  If the inspector or site 
        evaluator or designer finds that the system presents an imminent 
        threat to public health or safety, the inspector or site 
        evaluator or designer must include a statement to this effect in 
        the notice and the property owner must upgrade, replace, or 
        discontinue use of the system within ten months of receipt of 
        the notice. 
           Subd. 6.  [DISCLOSURE OF INDIVIDUAL SEWAGE TREATMENT SYSTEM 
        TO BUYER.] After August 31, 1994, before signing an agreement to 
        sell or transfer real property, the seller must disclose in 
        writing to the buyer information about the status and location 
        of individual sewage treatment systems on the property or 
        serving the property.  The disclosure must be made by delivering 
        to the buyer either a statement by the seller that there is no 
        individual sewage treatment system on or serving the property or 
        a disclosure statement describing the system and indicating the 
        legal description of the property, the county in which the 
        property is located, and a map drawn from available information 
        showing the location of the system on the property to the extent 
        practicable.  In the disclosure statement the seller must 
        indicate whether the individual sewage treatment system is in 
        use and, to the seller's knowledge, in compliance with 
        applicable sewage treatment laws and rules.  Unless the buyer 
        and seller agree to the contrary in writing before the closing 
        of the sale, a seller who fails to disclose the existence or 
        known status of an individual sewage treatment system at the 
        time of sale, and who knew or had reason to know of the 
        existence or known status of the system, is liable to the buyer 
        for costs relating to bringing the system into compliance with 
        the individual sewage treatment system rules and for reasonable 
        attorney fees for collection of costs from the seller.  An 
        action under this subdivision must be commenced within two years 
        after the date on which the buyer closed the purchase of the 
        real property where the system is located. 
           Subd. 7.  [LOCAL ORDINANCE MAY BE MORE RESTRICTIVE.] (a) A 
        local unit of government may adopt and enforce ordinances or 
        rules affecting individual sewage treatment systems that are 
        more restrictive than the agency's rules.  
           (b) If standards are adopted that are more restrictive than 
        the agency's rules, the local unit of government must submit the 
        more restrictive standards to the commissioner along with an 
        explanation of the more restrictive provisions. 
           Sec. 2.  [115.56] [MANDATORY LICENSING PROGRAM.] 
           Subdivision 1.  [RULES.] (a) Pursuant to section 115.03, 
        subdivision 1, by January 1, 1996, the agency shall adopt rules 
        containing standards of licensure applicable to all individual 
        sewage treatment system professionals.  
           The rules must include but are not limited to: 
           (1) training requirements that include both classroom and 
        fieldwork components; 
           (2) examination content requirements and testing 
        procedures; 
           (3) continuing education requirements; 
           (4) equivalent experience provisions; 
           (5) bonding and insurance requirements; 
           (6) schedules for submitting fees; and 
           (7) license revocation and suspension and other enforcement 
        requirements. 
           (b) The agency shall consult with the advisory committee 
        before proposing any rules under this subdivision. 
           Subd. 2.  [LICENSE REQUIRED.] (a) Except as provided in 
        paragraph (b), after March 31, 1996, a person may not design, 
        install, maintain, pump, or inspect an individual sewage 
        treatment system without a license issued by the commissioner. 
           (b) A license is not required for a person who complies 
        with the applicable requirements if the person is: 
           (1) a qualified employee of state or local government who 
        has passed the examination described in paragraph (d) or a 
        similar examination; 
           (2) an individual who constructs an individual sewage 
        treatment system on land that is owned or leased by the 
        individual and functions solely as the individual's dwelling or 
        seasonal dwelling; or 
           (3) an individual who performs labor or services for a 
        person licensed under this section in connection with the 
        design, installation, maintenance, pumping, or inspection of an 
        individual sewage treatment system at the direction and under 
        the personal supervision of a person licensed under this section.
           A person constructing an individual sewage treatment system 
        under clause (2) must consult with a site evaluator or designer 
        before beginning construction.  In addition, the system must be 
        inspected before being covered and a compliance report must be 
        provided to the local unit of government after the inspection. 
           (c) The commissioner, in conjunction with the University of 
        Minnesota extension service or another higher education 
        institution, shall ensure adequate training exists for 
        individual sewage treatment system professionals. 
           (d) The commissioner shall conduct examinations to test the 
        knowledge of applicants for licensing and shall issue 
        documentation of licensing.  
           (e) Licenses may be issued only upon successful completion 
        of the required examination and submission of proof of 
        sufficient experience, proof of general liability insurance, and 
        a corporate surety bond in the amount of at least $10,000.  
           (f) Notwithstanding paragraph (e), the examination and 
        proof of experience are not required for an individual sewage 
        treatment system professional who, on the effective date of the 
        rules adopted under subdivision 1, holds a certification 
        attained by examination and experience under a voluntary 
        certification program administered by the agency. 
           (g) Local units of government may not require additional 
        local licenses for individual sewage treatment system 
        professionals. 
           Subd. 3.  [ENFORCEMENT.] (a) The commissioner may deny, 
        suspend, or revoke a license, or use any lesser remedy against 
        an individual sewage treatment system professional, for any of 
        the following reasons: 
           (1) failure to meet the requirements for a license; 
           (2) incompetence, negligence, or inappropriate conduct in 
        the performance of the duties of an individual sewage treatment 
        system professional; 
           (3) failure to comply with applicable requirements; or 
           (4) submission of false or misleading information or 
        credentials in order to obtain or renew a license. 
           (b) Upon receiving a signed written complaint that alleges 
        the existence of a ground for enforcement action against a 
        person under paragraph (a), the commissioner shall initiate an 
        investigation.  Revocation, suspension, or other enforcement 
        action may not be taken before written notice is given to the 
        person and an opportunity is provided for a contested case 
        hearing complying with the provisions of chapter 14. 
           Subd. 4.  [LICENSE FEE.] The fee for a license required 
        under subdivision 2 is $100 per year.  Revenue from the fees 
        must be credited to the environmental fund. 
           Sec. 3.  [APPROPRIATION.] 
           (a) $120,000 is appropriated from the environmental fund to 
        the commissioner of the pollution control agency for the 
        purposes of sections 1 and 2 to be available for the biennium 
        ending June 30, 1995. 
           (b) Amounts spent by the commissioner of the pollution 
        control agency from the appropriation in paragraph (a) must be 
        reimbursed to the environmental fund no later than June 30, 1997.
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective the day following final 
        enactment. 
           Presented to the governor May 6, 1994 
           Signed by the governor May 10, 1994, 4:47 p.m.