1.1                          A bill for an act 
  1.2             relating to the environment; modifying provisions 
  1.3             relating to individual sewage treatment systems; 
  1.4             appropriating money; amending Minnesota Statutes 2002, 
  1.5             sections 17.117, subdivisions 5a, 10, 11, 13; 115.55, 
  1.6             subdivisions 1, by adding subdivisions; 115.56, 
  1.7             subdivisions 2, 4; 116.182, by adding a subdivision; 
  1.8             116P.04, subdivision 3; 116P.12, subdivision 1; 
  1.9             475.52, subdivisions 3, 4; proposing coding for new 
  1.10            law in Minnesota Statutes, chapter 115. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2002, section 17.117, 
  1.13  subdivision 5a, is amended to read: 
  1.14     Subd. 5a.  [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 
  1.15  ACCOUNTS.] (a) There shall be established in the agricultural 
  1.16  fund revolving accounts to receive appropriations, transfers of 
  1.17  the balances from previous appropriations for the activities 
  1.18  under this section, money from the environmental and resources 
  1.19  trust fund, and money from other sources.  All balances from 
  1.20  previous appropriations for activities under this section and 
  1.21  repayments of loans granted under this section, including 
  1.22  principal and interest, must be deposited into the appropriate 
  1.23  revolving account created in this subdivision or the account 
  1.24  created in subdivision 13.  Interest earned in an account 
  1.25  accrues to that account. 
  1.26     (b) The money in the revolving accounts and the account 
  1.27  created in subdivision 13 is appropriated to the commissioner 
  1.28  for the purposes of this section. 
  2.1      Sec. 2.  Minnesota Statutes 2002, section 17.117, 
  2.2   subdivision 10, is amended to read: 
  2.3      Subd. 10.  [AUTHORITY AND RESPONSIBILITIES OF LOCAL 
  2.4   LENDERS.] (a) Local lenders may enter into lender agreements 
  2.5   with the commissioner. 
  2.6      (b) Local lenders may enter into loan agreements with 
  2.7   borrowers to finance eligible projects under this section. 
  2.8      (c) The local lender shall notify the local government unit 
  2.9   of the loan amount issued to the borrower after the closing of 
  2.10  each loan. 
  2.11     (d) Local lenders with local revolving loan accounts 
  2.12  created before July 1, 2001, may continue to retain and use 
  2.13  those accounts in accordance with their lending agreements for 
  2.14  the full term of those agreements. 
  2.15     (e) Local lenders, including local government units 
  2.16  designating themselves as the local lender, may enter into 
  2.17  participation agreements with other lenders. 
  2.18     (f) Local lenders may enter into contracts with other 
  2.19  lenders for the limited purposes of loan review, processing and 
  2.20  servicing, or to enter into loan agreements with borrowers to 
  2.21  finance projects under this section.  Other lenders entering 
  2.22  into contracts with local lenders under this section must meet 
  2.23  the definition of local lender in subdivision 4, must comply 
  2.24  with all provisions of the lender agreement and this section, 
  2.25  and must guarantee repayment of the loan funds to the local 
  2.26  lender.  
  2.27     (g) When required by the local government unit, a local 
  2.28  lender must withhold all or a portion of the loan disbursement 
  2.29  for a project until notified by the local government unit that 
  2.30  the project has been satisfactorily completed. 
  2.31     (h) The local lender is responsible for repaying all funds 
  2.32  provided by the commissioner to the local lender.  The 
  2.33  commissioner, when funds are provided under section 17.117, 
  2.34  subdivision 11, paragraph (f), must repay money under the 
  2.35  additional percent to the environment and natural resources 
  2.36  trust fund. 
  3.1      (i) The local lender is responsible for collecting 
  3.2   repayments from borrowers.  If a borrower defaults on a loan 
  3.3   issued by the local lender, it is the responsibility of the 
  3.4   local lender to obtain repayment from the borrower.  Default on 
  3.5   the part of borrowers shall have no effect on the local lender's 
  3.6   responsibility to repay its obligations to the commissioner 
  3.7   whether or not the local lender fully recovers defaulted amounts 
  3.8   from borrowers. 
  3.9      (j) The local lender shall provide sufficient collateral or 
  3.10  protection to the commissioner for the funds provided to the 
  3.11  local lender.  The commissioner must approve the collateral or 
  3.12  protection provided. 
  3.13     Sec. 3.  Minnesota Statutes 2002, section 17.117, 
  3.14  subdivision 11, is amended to read: 
  3.15     Subd. 11.  [LOANS ISSUED TO BORROWER.] (a) Local lenders 
  3.16  may issue loans only for projects that are approved and 
  3.17  certified by the local government unit as meeting priority needs 
  3.18  identified in a comprehensive water management plan or other 
  3.19  local planning documents, are in compliance with accepted 
  3.20  practices, standards, specifications, or criteria, and are 
  3.21  eligible for financing under Environmental Protection Agency or 
  3.22  other applicable guidelines. 
  3.23     (b) The local lender may use any additional criteria 
  3.24  considered necessary to determine the eligibility of borrowers 
  3.25  for loans. 
  3.26     (c) Local lenders shall set the terms and conditions of 
  3.27  loans to borrowers, except that: 
  3.28     (1) no loan to a borrower may exceed $50,000; 
  3.29     (2) no loan for a project may exceed $50,000; and 
  3.30     (3) no borrower shall, at any time, have multiple loans 
  3.31  from this program with a total outstanding loan balance of more 
  3.32  than $50,000.  
  3.33     (d) The maximum term length for conservation tillage and 
  3.34  individual sewage treatment system projects is five years.  The 
  3.35  maximum term length for other projects in this paragraph is ten 
  3.36  years. 
  4.1      (e) Fees charged at the time of closing must: 
  4.2      (1) be in compliance with normal and customary practices of 
  4.3   the local lender; 
  4.4      (2) be in accordance with published fee schedules issued by 
  4.5   the local lender; 
  4.6      (3) not be based on participation program; and 
  4.7      (4) be consistent with fees charged other similar types of 
  4.8   loans offered by the local lender. 
  4.9      (f) The interest rate assessed to an outstanding loan 
  4.10  balance by the local lender must not exceed three percent per 
  4.11  year, or four percent per year if loans are made from the 
  4.12  environment and natural resources trust fund under section 
  4.13  116P.12, subdivision 1. 
  4.14     Sec. 4.  Minnesota Statutes 2002, section 17.117, 
  4.15  subdivision 13, is amended to read: 
  4.16     Subd. 13.  [ESTABLISHMENT OF ACCOUNT.] The public 
  4.17  facilities authority shall establish ~~an account~~ accounts called 
  4.18  the agriculture best management practices revolving account and 
  4.19  the individual septic tank system account to provide loans and 
  4.20  other forms of financial assistance authorized under section 
  4.21  446A.07.  The ~~account~~ accounts must be credited with 
  4.22  repayments authorized by this section. 
  4.23     Sec. 5.  [115.446] [COUNTY OBLIGATIONS.] 
  4.24     Counties must develop plans for disposal of domestic 
  4.25  septage generated within their jurisdictions by July 1, 2005, 
  4.26  and shall file the plans with the commissioner and each 
  4.27  municipality where the plan indicates septage will be disposed. 
  4.28     Sec. 6.  Minnesota Statutes 2002, section 115.55, 
  4.29  subdivision 1, is amended to read: 
  4.30     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  4.31  subdivision apply to this section and section 115.56. 
  4.32     (b) "Advisory committee" means the advisory committee on 
  4.33  individual sewage treatment systems established under the 
  4.34  individual sewage treatment system rules.  The advisory 
  4.35  committee must be appointed to ensure geographic representation 
  4.36  of the state and include elected public officials. 
  5.1      (c) "Applicable requirements" means: 
  5.2      (1) local ordinances that comply with the individual sewage 
  5.3   treatment system rules, as required in subdivision 2; or 
  5.4      (2) in areas not subject to the ordinances described in 
  5.5   clause (1), the individual sewage treatment system rules. 
  5.6      (d) "City" means a statutory or home rule charter city. 
  5.7      (e) "Commissioner" means the commissioner of the pollution 
  5.8   control agency. 
  5.9      (f) "Dwelling" means a building or place used or intended 
  5.10  to be used by human occupants as a single-family or two-family 
  5.11  unit. 
  5.12     (g) "Individual sewage treatment system" or "system" means 
  5.13  ~~a~~ an on-site sewage treatment system, or part thereof, serving a 
  5.14  dwelling, other establishment, or group thereof, that uses 
  5.15  subsurface soil treatment and disposal. 
  5.16     (h) "Individual sewage treatment system professional" means 
  5.17  an inspector, installer, site evaluator or designer, or pumper. 
  5.18     (i) "Individual sewage treatment system rules" means rules 
  5.19  adopted by the agency that establish minimum standards and 
  5.20  criteria for the design, location, installation, use, and 
  5.21  maintenance of individual sewage treatment systems. 
  5.22     (j) "Inspector" means a person who inspects individual 
  5.23  sewage treatment systems for compliance with the applicable 
  5.24  requirements. 
  5.25     (k) "Installer" means a person who constructs or repairs 
  5.26  individual sewage treatment systems. 
  5.27     (l) "Local unit of government" means a township, city, ~~or~~ 
  5.28  county, sanitary district, or other governmental unit 
  5.29  responsible for implementing Minnesota Rules, chapter 7080. 
  5.30     (m) "Operator" means a person who operates systems designed 
  5.31  for an average flow of over 2,500 gallons per day, operates 
  5.32  systems determined under local ordinance, or who determines the 
  5.33  functional status and adjusts system components so the system 
  5.34  operates in compliance with requirements.  An operator also may 
  5.35  conduct repairs of individual components of a system. 
  5.36     ~~(m)~~ (n) "Pumper" means a person who ~~maintains components of~~ 
  6.1   pumps out waste from individual sewage treatment systems 
  6.2   including, but not limited to, septic, aerobic, and holding 
  6.3   tanks. 
  6.4      ~~(n)~~ (o) "Seasonal dwelling" means a dwelling that is 
  6.5   occupied or used for less than 180 days per year and less than 
  6.6   120 consecutive days. 
  6.7      ~~(o)~~ (p) "Site evaluator or designer" means a person who: 
  6.8      (1) investigates soils and site characteristics to 
  6.9   determine suitability, limitations, and sizing requirements; and 
  6.10     (2) designs individual sewage treatment systems. 
  6.11     Sec. 7.  Minnesota Statutes 2002, section 115.55, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 4a.  [COUNTY SYSTEM PLAN AND INVENTORY.] By January 
  6.14  1, 2005, all owners of systems installed prior to April 1, 1996, 
  6.15  must file a report, or a system disclosure certificate pursuant 
  6.16  to section 115.571, with the county in which the system is 
  6.17  located, and provide to the county available information about 
  6.18  the system's record of compliance, maintenance, and 
  6.19  installation.  The commissioner must provide a form for this 
  6.20  purpose.  An owner of a system must pay a filing fee of at least 
  6.21  $15 to the county where the system is located.  A county must 
  6.22  keep a current database of the reports, including compliance 
  6.23  inspection data under subdivisions 4b and 4c. 
  6.24     Sec. 8.  Minnesota Statutes 2002, section 115.55, is 
  6.25  amended by adding a subdivision to read: 
  6.26     Subd. 4b.  [COMPLIANCE INFORMATION.] By April 1, 2005, 
  6.27  counties must prepare a list of home owners with inadequate 
  6.28  compliance information based on the records collected in 
  6.29  subdivision 4a.  By July 1, 2006, all owners of systems on the 
  6.30  list must have a compliance inspection conducted. 
  6.31     Sec. 9.  Minnesota Statutes 2002, section 115.55, is 
  6.32  amended by adding a subdivision to read: 
  6.33     Subd. 4c.  [PUMPER SURCHARGE AND ACTIVITY.] A county must 
  6.34  charge at least $10 per maintenance activity to each pumper 
  6.35  active in the county and licensed under section 115.56, 
  6.36  subdivision 2.  Licensed pumpers must maintain accurate records 
  7.1   of system pumping activity in each county and report the records 
  7.2   to the county on a standardized form provided by the 
  7.3   commissioner of the pollution control agency.  Counties must use 
  7.4   the fees collected under subdivisions 4a and 4c to maintain a 
  7.5   database of the compliance and maintenance of systems within 
  7.6   their jurisdiction. 
  7.7      Sec. 10.  Minnesota Statutes 2002, section 115.56, 
  7.8   subdivision 2, is amended to read: 
  7.9      Subd. 2.  [LICENSE REQUIRED.] (a) Except as provided in 
  7.10  paragraph (b), after March 31, 1996, a person may not design, 
  7.11  install, maintain, pump, or inspect an individual sewage 
  7.12  treatment system without a license issued by the commissioner. 
  7.13     (b) A license is not required for a person who complies 
  7.14  with the applicable requirements if the person is: 
  7.15     (1) a qualified employee of state or local government who 
  7.16  has passed the examination described in paragraph (d) or a 
  7.17  similar examination; 
  7.18     (2) an individual who constructs an individual sewage 
  7.19  treatment system on land that is owned or leased by the 
  7.20  individual and functions solely as the individual's dwelling or 
  7.21  seasonal dwelling; 
  7.22     (3) a farmer who pumps and disposes of sewage waste from 
  7.23  individual sewage treatment systems, holding tanks, and privies 
  7.24  on land that is owned or leased by the farmer; or 
  7.25     (4) an individual who performs labor or services for a 
  7.26  person licensed under this section in connection with the 
  7.27  design, installation, maintenance, pumping, or inspection of an 
  7.28  individual sewage treatment system at the direction and under 
  7.29  the personal supervision of a person licensed under this section.
  7.30     A person constructing an individual sewage treatment system 
  7.31  under clause (2) must consult with a site evaluator or designer 
  7.32  before beginning construction.  In addition, the system must be 
  7.33  inspected before being covered and a compliance report must be 
  7.34  provided to the local unit of government after the inspection. 
  7.35     (c) The commissioner, in conjunction with the University of 
  7.36  Minnesota extension service or another higher education 
  8.1   institution, shall ensure adequate training exists for 
  8.2   individual sewage treatment system professionals.  A registered 
  8.3   individual sewage treatment system professional must annually 
  8.4   earn six credits of training in the profession. 
  8.5      (d) The commissioner shall conduct examinations to test the 
  8.6   knowledge of applicants for licensing and shall issue 
  8.7   documentation of licensing.  
  8.8      (e) Licenses may be issued only upon successful completion 
  8.9   of the required examination and submission of proof of 
  8.10  sufficient experience, proof of general liability insurance, and 
  8.11  a corporate surety bond in the amount of at least $10,000.  
  8.12     (f) Notwithstanding paragraph (e), the examination and 
  8.13  proof of experience are not required for an individual sewage 
  8.14  treatment system professional who, on the effective date of the 
  8.15  rules adopted under subdivision 1, holds a certification 
  8.16  attained by examination and experience under a voluntary 
  8.17  certification program administered by the agency. 
  8.18     (g) Local units of government may not require additional 
  8.19  local licenses for individual sewage treatment system 
  8.20  professionals. 
  8.21     (h) A pumper whose annual gross revenue from pumping 
  8.22  systems is $9,000 or less and whose gross revenue from pumping 
  8.23  systems during the year ending May 11, 1994, was at least $1,000 
  8.24  is not subject to training requirements in rules adopted under 
  8.25  subdivision 1, except for any training required for initial 
  8.26  licensure. 
  8.27     Sec. 11.  Minnesota Statutes 2002, section 115.56, 
  8.28  subdivision 4, is amended to read: 
  8.29     Subd. 4.  [LICENSE FEE.] The fee for a license required 
  8.30  under subdivision 2 is ~~$100~~ $200 per year.  The maximum total 
  8.31  for multiple licenses is $500.  Revenue from the fees must be 
  8.32  credited to the environmental fund. 
  8.33     Sec. 12.  [115.571] [REAL PROPERTY SALE; DISCLOSURE OF 
  8.34  LOCATION, REQUIREMENT, AND UPGRADE OF INDIVIDUAL SEWAGE 
  8.35  TREATMENT SYSTEMS.] 
  8.36     Subdivision 1.  [DISCLOSURE OF SYSTEMS TO BUYER.] (a) 
  9.1   Before signing an agreement to sell or transfer real property, 
  9.2   the seller must disclose in writing to the buyer information 
  9.3   about the status and location of all known systems on the 
  9.4   property, by delivering to the buyer either a statement by the 
  9.5   seller that the real property does not require a system, or a 
  9.6   disclosure statement containing the following information: 
  9.7      (1) the legal description and county; 
  9.8      (2) a map drawn from available information showing the 
  9.9   location of each system to the extent practicable; 
  9.10     (3) whether the system has been inspected in the last three 
  9.11  years; and 
  9.12     (4) if the system was installed prior to April 1, 1996, 
  9.13  whether the system is in compliance and the condition of the 
  9.14  system. 
  9.15     (b) In the disclosure statement, the seller must indicate, 
  9.16  for each system, whether the system is in use or is not in use.  
  9.17  In addition, the statement must state:  "The system must be 
  9.18  inspected at least once every three years for adequate 
  9.19  maintenance." 
  9.20     (c) At the time of closing of the sale, the disclosure 
  9.21  statement information, name and mailing address of the buyer, 
  9.22  and the quartile, section, township, and range in which each 
  9.23  system is located must be provided on a system disclosure 
  9.24  certificate signed by the seller or a person authorized to act 
  9.25  on behalf of the seller. 
  9.26     (d) A system disclosure certificate need not be provided if 
  9.27  the seller's property is served by an off-site system or 
  9.28  municipal wastewater treatment plant, or the real property has 
  9.29  no wastewater requiring treatment on the property and the deed 
  9.30  or other instrument of conveyance contains the statement:  "The 
  9.31  seller certifies that the real property does not require an 
  9.32  individual sewage treatment system."  
  9.33     (e) If a deed is given pursuant to a contract for deed, the 
  9.34  system disclosure certificate required by this subdivision shall 
  9.35  be signed by the buyer or a person authorized to act on behalf 
  9.36  of the buyer.  If the buyer knows of no systems on the property, 
 10.1   a system disclosure certificate is not required if the following 
 10.2   statement appears on the deed followed by the signature of the 
 10.3   grantee or, if there is more than one grantee, the signature of 
 10.4   at least one of the grantees:  "The grantee certifies that the 
 10.5   the real property does not require an individual sewage 
 10.6   treatment system."  The statement and signature of the grantee 
 10.7   may be on the front or back of the deed or on an attached sheet 
 10.8   and an acknowledgment of the statement by the grantee is not 
 10.9   required for the deed to be recordable. 
 10.10     (f) This subdivision does not apply to the sale, exchange, 
 10.11  or transfer of real property:  
 10.12     (1) that consists solely of a sale or transfer of severed 
 10.13  mineral interests; or 
 10.14     (2) that consists of an individual condominium unit as 
 10.15  described in chapters 515 and 515B. 
 10.16     (g) For an area owned in common under chapter 515 or 515B 
 10.17  the association or other responsible person must report to the 
 10.18  commissioner by July 1, 2005, the location and status of all 
 10.19  systems in the common area.  The association or other 
 10.20  responsible person must notify the local unit of government 
 10.21  within 30 days of any change in the reported status of systems. 
 10.22     (h) For real property sold by the state under section 
 10.23  92.67, the lessee at the time of the sale is responsible for 
 10.24  compliance with this subdivision. 
 10.25     (i) If the seller fails to provide a required system 
 10.26  disclosure certificate, the buyer, or a person authorized to act 
 10.27  on behalf of the buyer, may sign a system disclosure certificate 
 10.28  based on the information provided on the disclosure statement 
 10.29  required by this section or based on other available information.
 10.30     (j) A county recorder or registrar of titles may not record 
 10.31  a deed or other instrument of conveyance dated after October 31, 
 10.32  2003, for which a certificate of value is required under section 
 10.33  272.115, or any deed or other instrument of conveyance dated 
 10.34  after October 31, 2003, from a governmental body exempt from the 
 10.35  payment of state deed tax, unless the deed or other instrument 
 10.36  of conveyance contains the statement made in accordance with 
 11.1   paragraph (d) or (e) or is accompanied by the system disclosure 
 11.2   certificate containing all the information required by paragraph 
 11.3   (c) or (e).  The county recorder or registrar of titles must not 
 11.4   accept a certificate unless it contains all the required 
 11.5   information.  The county recorder or registrar of titles shall 
 11.6   note on each deed or other instrument of conveyance accompanied 
 11.7   by a system disclosure certificate that the system disclosure 
 11.8   certificate was received.  The notation must include the 
 11.9   statement "The seller certified the real property does not need 
 11.10  an individual sewage treatment system on the property."  The 
 11.11  system disclosure certificate must not be filed or recorded in 
 11.12  the records maintained by the county recorder or registrar of 
 11.13  titles.  After noting "The property is connected to an off-site 
 11.14  or municipal sewage treatment system or the property has no 
 11.15  wastewater in need of treatment" on the deed or other instrument 
 11.16  of conveyance, the county recorder or registrar of titles shall 
 11.17  destroy or return to the buyer the system disclosure certificate.
 11.18  The county recorder or registrar of titles shall collect from 
 11.19  the buyer or the person seeking to record a deed or other 
 11.20  instrument of conveyance, a fee of $17.50 for receipt of a 
 11.21  completed system disclosure certificate.  By the tenth day of 
 11.22  each month, the county recorder or registrar of titles shall 
 11.23  transmit the system disclosure certificates to the commissioner 
 11.24  of the pollution control agency.  By the tenth day after the end 
 11.25  of each calendar quarter, the county recorder or registrar of 
 11.26  titles shall transmit to the county or local unit of government 
 11.27  responsible for regulation of the system $15 of the fee for each 
 11.28  system disclosure certificate received during the quarter.  The 
 11.29  county or local unit of government shall maintain the system 
 11.30  disclosure certificate for at least six years.  The commissioner 
 11.31  may store the certificate as an electronic image.  A copy of 
 11.32  that image is as valid as the original. 
 11.33     (k) No new system disclosure certificate is required under 
 11.34  this subdivision if the buyer or seller, or a person authorized 
 11.35  to act on behalf of the buyer or seller, certifies on the deed 
 11.36  or other instrument of conveyance that the status and number of 
 12.1   systems on the property have not changed since the last 
 12.2   previously filed system disclosure certificate.  The following 
 12.3   statement, if followed by the signature of the person making the 
 12.4   statement, is sufficient to comply with the certification 
 12.5   requirement of this paragraph:  "I am familiar with the property 
 12.6   described in this instrument and I certify that the status and 
 12.7   number of systems on the described real property have not 
 12.8   changed since the last previously filed system disclosure and 
 12.9   have been inspected as required."  The certification and 
 12.10  signature may be on the front or back of the deed or on an 
 12.11  attached sheet and an acknowledgment of the statement is not 
 12.12  required for the deed or other instrument of conveyance to be 
 12.13  recordable. 
 12.14     Subd. 2.  [LIABILITY FOR FAILURE TO DISCLOSE.] Unless the 
 12.15  buyer and seller agree to the contrary, in writing, before the 
 12.16  closing of the sale, a seller who fails to disclose the 
 12.17  existence or known status of a system at the time of sale and 
 12.18  knew or had reason to know of the existence or known status of 
 12.19  the system or knowingly makes a false statement on the 
 12.20  certificate of deed, is liable to the buyer for costs relating 
 12.21  to upgrading the system to approved standards and reasonable 
 12.22  attorney fees for collection of costs from the seller, if the 
 12.23  action is commenced within six years after the date the buyer 
 12.24  closed the purchase of the real property where the system is 
 12.25  located. 
 12.26     Sec. 13.  Minnesota Statutes 2002, section 116.182, is 
 12.27  amended by adding a subdivision to read: 
 12.28     Subd. 3b.  [NOTIFICATION FOR NEW WASTEWATER TREATMENT 
 12.29  SYSTEM.] Prior to the initiation of the public facilities 
 12.30  planning process for a new wastewater treatment system, the 
 12.31  project proposer must give written notice to all municipalities 
 12.32  and counties within ten miles of the proposed project service 
 12.33  area. 
 12.34     Sec. 14.  Minnesota Statutes 2002, section 116P.04, 
 12.35  subdivision 3, is amended to read: 
 12.36     Subd. 3.  [REVENUE.] Nothing in sections 116P.01 to 116P.12 
 13.1   limits the source of contributions to the trust fund.  All money 
 13.2   appropriated from the trust fund for loans made under section 
 13.3   17.117 must be paid back to the trust fund dollar for dollar. 
 13.4      Sec. 15.  Minnesota Statutes 2002, section 116P.12, 
 13.5   subdivision 1, is amended to read: 
 13.6      Subdivision 1.  [LOANS AUTHORIZED.] (a) If the principal of 
 13.7   the trust fund equals or exceeds $200,000,000, the commission 
 13.8   may vote to set aside up to five percent of the principal of the 
 13.9   trust fund for water system improvement loans, including upgrade 
 13.10  or replacement of individual private sewage treatment systems.  
 13.11  The purpose of water system improvement loans is to offer below 
 13.12  market rate interest loans to local units of government for the 
 13.13  purposes of water system improvements. 
 13.14     (b) The interest on a loan shall be calculated on the 
 13.15  declining balance at a rate four percentage points below the 
 13.16  secondary market yield of one-year United States treasury bills 
 13.17  calculated according to section 549.09, subdivision 1, paragraph 
 13.18  (c).  
 13.19     (c) An eligible project must prove that existing federal or 
 13.20  state loans or grants have not been adequate.  
 13.21     (d) Payments on the principal and interest of loans under 
 13.22  this section must be credited to the trust fund.  
 13.23     (e) Repayment of loans made under this section must be 
 13.24  completed within 20 years.  
 13.25     (f) The Minnesota public facilities authority must report 
 13.26  to the commission each year on the loan program under this 
 13.27  section.  
 13.28     Sec. 16.  Minnesota Statutes 2002, section 475.52, 
 13.29  subdivision 3, is amended to read: 
 13.30     Subd. 3.  [COUNTIES.] Any county may issue bonds for the 
 13.31  acquisition or betterment of courthouses, county administrative 
 13.32  buildings, health or social service facilities, private sewage 
 13.33  disposal systems, correctional facilities, law enforcement 
 13.34  centers, jails, morgues, libraries, parks, and hospitals, for 
 13.35  roads and bridges within the county or bordering thereon and for 
 13.36  road equipment and machinery and for ambulances and related 
 14.1   equipment for the acquisition of development rights in the form 
 14.2   of conservation easements under chapter 84C, and for capital 
 14.3   equipment for the administration and conduct of elections 
 14.4   providing the equipment is uniform countywide, except that the 
 14.5   power of counties to issue bonds in connection with a library 
 14.6   shall not exist in Hennepin county. 
 14.7      Sec. 17.  Minnesota Statutes 2002, section 475.52, 
 14.8   subdivision 4, is amended to read: 
 14.9      Subd. 4.  [TOWNS.] Any town may issue bonds for the 
 14.10  acquisition and betterment of town halls, town roads and 
 14.11  bridges, nursing homes and homes for the aged, and for 
 14.12  acquisition of equipment for snow removal, road construction or 
 14.13  maintenance, private sewage disposal systems, and fire fighting 
 14.14  for the acquisition of development rights in the form of 
 14.15  conservation easements under chapter 84C and for the acquisition 
 14.16  and betterment of any buildings to house and maintain town 
 14.17  equipment. 
 14.18     Sec. 18.  [APPROPRIATION.] 
 14.19     (a) $....... is appropriated from the environment and 
 14.20  natural resources trust fund to the commissioner of agriculture 
 14.21  to provide loans to counties for loans to property owners under 
 14.22  Minnesota Statutes, section 17.117. 
 14.23     (b) Individual counties may elect to apply for and 
 14.24  administer the loans under the agricultural best management loan 
 14.25  practices program established in Minnesota Statutes, section 
 14.26  17.117.  For loans under Minnesota Statutes, section 17.117, the 
 14.27  commissioner shall review and rank allocation requests from 
 14.28  counties under the procedure and relevant criteria listed in 
 14.29  Minnesota Statutes, section 17.117, subdivision 6a.  Loans made 
 14.30  under Minnesota Statutes, section 17.117, with money 
 14.31  appropriated under this section must be used for site 
 14.32  evaluation, design, installation, repair, and replacement of 
 14.33  individual sewage treatment systems only.  Notwithstanding the 
 14.34  eligibility criteria in Minnesota Statutes, section 17.117, 
 14.35  subdivisions 1 and 4, paragraph (e), all private landowners in a 
 14.36  county may apply for loans made under this section.  Counties 
 15.1   receiving funds under this section must use the funds to 
 15.2   administer loan programs on a countywide basis. 
 15.3      (c) $500,000 is appropriated from the environmental fund to 
 15.4   the commissioner of the pollution control agency for new 
 15.5   technology review, local training, program planning, and 
 15.6   enforcement responsibilities under this act.  
 15.7      Sec. 19.  [EFFECTIVE DATE.] 
 15.8      Sections 1 to 18 are effective July 1, 2003.