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                            CHAPTER 427-H.F.No. 2112 
                  An act relating to the environment; authorizing 
                  establishment of municipal individual sewage treatment 
                  system and well loan programs; specifying compliance 
                  requirements for certain existing individual sewage 
                  treatment systems; clarifying licensing requirements 
                  for sewage system pumpers; providing for certain 
                  temporary licenses; amending Minnesota Statutes 1994, 
                  sections 115.55, subdivision 5; and 115.56, by adding 
                  a subdivision; Minnesota Statutes 1995 Supplement, 
                  section 115.56, subdivision 2; proposing coding for 
                  new law in Minnesota Statutes, chapter 115. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 115.55, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INSPECTION.] (a) Except as provided in paragraph 
        (b), after December 31, 1995 (e), 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.  A local 
        unit of government may temporarily waive the certificate of 
        compliance requirement for a building permit or variance for 
        which application is made during the period from November 1 to 
        April 30, provided that an inspection of the system is performed 
        by the following June 1 and the applicant submits a certificate 
        of compliance by the following September 30. 
           (b) In areas that are not subject to ordinances adopted 
        under subdivision 2, A compliance inspection under this 
        subdivision is required only for all 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.  
           (d) 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. 
           (e) Except as provided in paragraph (d), if a system 
        installed between May 27, 1989, and January 23, 1996, does not 
        comply with applicable requirements, the property owner has five 
        years from the date of the bedroom building permit to bring the 
        system into compliance. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        115.56, subdivision 2, is amended to read: 
           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; 
           (3) a farmer who pumps and disposes of sewage waste from 
        individual sewage treatment systems, holding tanks, and privies 
        on land that is owned or leased by the farmer; or 
           (4) 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. 
           (h) A pumper whose annual gross revenue from pumping 
        systems is $9,000 or less and whose gross revenue from pumping 
        systems during the year ending May 11, 1994, was at least $1,000 
        is not subject to training requirements in rules adopted under 
        subdivision 1, except for any training required for initial 
        licensure. 
           Sec. 3.  Minnesota Statutes 1994, section 115.56, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [TEMPORARY LICENSE.] The agency may issue, for a 
        fee of $100, a temporary license for an activity listed in 
        subdivision 1, paragraph (a), to a person who: 
           (1) has submitted to the agency proof of sufficient 
        experience, as determined by the agency, in the activity for 
        which the license is sought; and 
           (2) has completed training under a voluntary certification 
        program administered by the agency. 
        A temporary license issued under this subdivision is effective 
        until August 15, 1996. 
           Sec. 4.  [115.57] [INDIVIDUAL SEWAGE TREATMENT SYSTEM OR 
        WATER WELL LOAN PROGRAM.] 
           Subdivision 1.  [PURPOSE.] The legislature finds that a 
        need exists to provide for the creation of a public loan program 
        that assists property owners to finance the site evaluation, 
        design, installation, repair, and replacement of individual 
        sewage treatment systems and to finance the sealing and 
        replacement of wells on privately owned property.  Such a public 
        loan program promotes the public health and welfare by 
        furthering the policy of the state of Minnesota to prevent, 
        reduce, and eliminate water pollution.  The legislature declares 
        that the actions required to establish and implement a public 
        loan program for the purposes stated in this section are a 
        public purpose and that the execution and financing of such a 
        program is a public purpose. 
           Subd. 2.  [DEFINITIONS.] (a) The terms defined in this 
        subdivision and section 115.55, subdivision 1, apply to this 
        section. 
           (b) "Improvement" means the site evaluation, design, 
        installation, repair, or replacement of an individual sewage 
        treatment system or sealing or replacement of a well. 
           (c) "Municipality" means a township, city, county, or any 
        other governmental subdivision of the state responsible by law 
        for the prevention, control, and abatement of water pollution in 
        any area of the state. 
           (d) "Property owner" means the owner or owners as recorded 
        on the tax roll of the county where the real property on which 
        the individual sewage treatment system or well is installed, 
        repaired, or replaced is located. 
           (e) "Well" means a well as defined in section 103I.005, 
        subdivision 21: 
           (1) that is required to be sealed under section 103I.301, 
        subdivision 1; or 
           (2) the relocation of which is necessary for compliance 
        with applicable requirements as defined in section 115.55, 
        subdivision 1. 
           Subd. 3.  [AUTHORITY.] A municipality may, individually or 
        cooperatively with other municipalities, establish an individual 
        sewage treatment system or well loan program, or both, for the 
        purpose of providing loans to property owners for the site 
        evaluation, design, installation, repair, or replacement of 
        individual sewage treatment systems or for the sealing or 
        replacement of wells on privately owned property.  The governing 
        body of a municipality shall provide for the operation and 
        administration of the program by ordinance.  A municipality may 
        appoint an administrator to operate the program.  
           Subd. 4.  [LIMITATIONS.] Loans may not be used to 
        facilitate new building construction.  As used in this 
        subdivision, "facilitate new building construction" includes 
        increasing capacity of an individual sewage treatment system 
        beyond what is reasonably required to serve existing buildings 
        and lots in existing recorded plats. 
           Subd. 5.  [FINANCING.] A municipality may issue bonds in 
        accordance with chapter 475 to finance the program, except that 
        an election is not required and the obligations are not subject 
        to the general limit on net debt for the municipality.  
        Financing may also be provided by issuing certificates of 
        indebtedness, securing loans, or transferring available funds 
        that the municipality is not obligated by law to use for some 
        other purpose.  Funds procured for the individual sewage 
        treatment system or well loan program shall be dedicated to the 
        program. 
           Subd. 6.  [ASSESSMENTS.] (a) An amount loaned under the 
        program, including accruing interest, shall be a lien against 
        the real property for which the improvement was made and shall 
        be assessed against the property or properties benefited unless 
        the amount is prepaid.  An amount loaned under the program and 
        assessed against the property shall be a priority lien only 
        against subsequent liens. 
           (b) Upon issuing a loan, the municipality shall provide the 
        property owner a notice that states the following information:  
           (1) the amount to be specially assessed against the 
        property; 
           (2) the right of the property owner to prepay the entire 
        assessment; 
           (3) the public official to whom prepayment must be made; 
           (4) the time within which prepayment must be made without 
        the assessment of interest; 
           (5) the rate of interest to be accrued if the assessment is 
        not prepaid within the required time period; and 
           (6) the period of the assessment. 
           (c) The municipality shall, by ordinance, provide for a 
        right of property owners to prepay the assessment and may 
        establish such other assessment procedures as determined 
        necessary and consistent with the provisions of this section. 
           Subd. 7.  [ORDINANCES; CONSTRUCTION STANDARDS.] A 
        municipality may not establish an individual sewage treatment 
        system loan program unless ordinances pursuant to rules adopted 
        under section 115.55, subdivision 3, are in full force and 
        effect.  All repairs and improvements made to individual sewage 
        treatment systems under this section shall be performed by a 
        licensed individual sewage treatment system professional and 
        shall comply with agency rules adopted pursuant to section 
        115.55, subdivision 3, and other applicable requirements.  All 
        improvements to wells under this section must be made by a well 
        contractor or a limited well contractor, as appropriate, 
        licensed under chapter 103I. 
           Subd. 8.  [DISSOLUTION.] The governing body of a 
        municipality may dissolve the program by ordinance.  The 
        ordinance shall provide for the collection of all outstanding 
        assessments, repayment of any remaining indebtedness incurred to 
        finance the program, and the final distribution of any money 
        remaining in the loan fund. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 and 3 are effective the day following final 
        enactment.  Section 2 is effective March 31, 1996. 
           Presented to the governor March 30, 1996 
           Signed by the governor April 2, 1996, 12:36 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569