1.1                          A bill for an act 
  1.2             relating to the environment; modifying regulation of 
  1.3             individual sewage treatment system licenses; 
  1.4             authorizing establishment of municipal individual 
  1.5             sewage treatment system loan programs; amending 
  1.6             Minnesota Statutes 1994, section 115.56, subdivision 
  1.7             3; proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 115. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 115.56, 
  1.11  subdivision 3, is amended to read: 
  1.12     Subd. 3.  [ENFORCEMENT.] (a) The commissioner may deny, 
  1.13  suspend, or revoke a license, or use any lesser remedy against 
  1.14  an individual sewage treatment system professional, for any of 
  1.15  the following reasons: 
  1.16     (1) failure to meet the requirements for a license; 
  1.17     (2) incompetence, negligence, or inappropriate conduct in 
  1.18  the performance of the duties of an individual sewage treatment 
  1.19  system professional; 
  1.20     (3) failure to comply with applicable requirements; or 
  1.21     (4) submission of false or misleading information or 
  1.22  credentials in order to obtain or renew a license. 
  1.23     (b) Upon receiving a signed written complaint that alleges 
  1.24  the existence of a ground for enforcement action against a 
  1.25  person under paragraph (a), the commissioner shall initiate an 
  1.26  investigation.  Revocation, suspension, or other enforcement 
  1.27  action may not be taken before written notice is given to the 
  2.1   person and an opportunity is provided for a contested case 
  2.2   hearing complying with the provisions of chapter 14.  The 
  2.3   commissioner may not seek suspension or revocation of a license 
  2.4   before giving written notice to the person and providing an 
  2.5   opportunity for a contested case hearing under chapter 14.  The 
  2.6   commissioner may also take other enforcement actions, including 
  2.7   issuing an administrative penalty order under section 116.072, 
  2.8   which provide the person with written notice and an opportunity 
  2.9   for an expedited administrative hearing utilizing the procedures 
  2.10  of Minnesota Rules, parts 1400.8510 to 1400.8612.  
  2.11     (c) The commissioner may apply restrictions to licenses 
  2.12  that do not comply with paragraph (b) if the restrictions are 
  2.13  issued for nonpunitive reasons.  The commissioner may also 
  2.14  require training as a remedy for licensee performance problems. 
  2.15     Sec. 2.  [115.57] [INDIVIDUAL SEWAGE TREATMENT SYSTEM LOAN 
  2.16  PROGRAM.] 
  2.17     Subdivision 1.  [PURPOSE.] The legislature finds that a 
  2.18  need exists to provide for the creation of a public loan program 
  2.19  that assists property owners to finance the site evaluation, 
  2.20  design, installation, repair, and replacement of individual 
  2.21  sewage treatment systems on privately owned property.  Such a 
  2.22  public loan program promotes the public health and welfare by 
  2.23  furthering the policy of the state of Minnesota to prevent, 
  2.24  reduce, and eliminate water pollution.  The legislature declares 
  2.25  that the actions required to establish and implement a public 
  2.26  loan program for the purposes stated in this section are a 
  2.27  public purpose and that the execution and financing of such a 
  2.28  program is a public purpose. 
  2.29     Subd. 2.  [DEFINITIONS.] (a) The terms defined in this 
  2.30  subdivision and section 115.55, subdivision 1, apply to this 
  2.31  section. 
  2.32     (b) "Municipality" means a township, city, county, or any 
  2.33  other governmental subdivision of the state responsible by law 
  2.34  for the prevention, control, and abatement of water pollution in 
  2.35  any area of the state. 
  2.36     (c) "Property owner" means the owner or owners as recorded 
  3.1   on the tax roll at the county of the real property on which the 
  3.2   individual sewage treatment system is installed, repaired, or 
  3.3   replaced. 
  3.4      (d) "Improvement" means the site evaluation, design, 
  3.5   installation, repair, or replacement of an individual sewage 
  3.6   treatment system. 
  3.7      Subd. 3.  [AUTHORITY.] A municipality may, individually or 
  3.8   cooperatively with other municipalities, establish an individual 
  3.9   sewage treatment system loan program for the purpose of 
  3.10  providing loans to property owners for the site evaluation, 
  3.11  design, installation, repair, or replacement of individual 
  3.12  sewage treatment systems on privately owned property.  The 
  3.13  governing body of a municipality shall provide for the operation 
  3.14  and administration of the program by ordinance.  A municipality 
  3.15  may appoint an administrator to operate the program.  
  3.16     Subd. 4.  [FINANCING.] A municipality may issue bonds in 
  3.17  accordance with chapter 475 to finance the program, except that 
  3.18  an election is not required and the obligations are not subject 
  3.19  to the general limit on net debt for the municipality.  
  3.20  Financing may also be provided by issuing certificates of 
  3.21  indebtedness, securing loans, or transferring available funds 
  3.22  that the municipality is not obligated by law to use for some 
  3.23  other purpose.  Funds procured for the individual sewage 
  3.24  treatment system loan program shall be dedicated to the program. 
  3.25     Subd. 5.  [ASSESSMENTS.] (a) Amounts loaned under the 
  3.26  program, including accruing interest, shall be a lien against 
  3.27  the real property on which the improvement was made and shall be 
  3.28  assessed against the property unless the property owner prepays 
  3.29  the entire assessment. 
  3.30     (b) Upon issuing a loan, the municipality shall provide the 
  3.31  property owner a notice that states the following information:  
  3.32     (1) the amount to be specially assessed against the 
  3.33  property; 
  3.34     (2) the right of the property owner to prepay the entire 
  3.35  assessment; 
  3.36     (3) the person to whom prepayment must be made; 
  4.1      (4) the time within which prepayment must be made without 
  4.2   the assessment of interest; 
  4.3      (5) the rate of interest to be accrued if the assessment is 
  4.4   not prepaid within the required time period; and 
  4.5      (6) the period of the assessment. 
  4.6      (c) The municipality shall, by ordinance, provide for a 
  4.7   right of property owners to prepay the assessment and may 
  4.8   establish such other assessment procedures as determined 
  4.9   necessary and consistent with the provisions of this section. 
  4.10     Subd. 6.  [ORDINANCES; CONSTRUCTION STANDARDS.] A 
  4.11  municipality that establishes an individual sewage treatment 
  4.12  system loan program shall adopt ordinances pursuant to rules 
  4.13  adopted under section 115.55, subdivision 3.  All repairs and 
  4.14  improvements made to individual sewage treatment systems under 
  4.15  this section shall be performed by a licensed individual sewage 
  4.16  treatment system professional and shall comply with agency rules 
  4.17  adopted pursuant to section 115.55, subdivision 3, and other 
  4.18  applicable requirements. 
  4.19     Subd. 7.  [DISSOLUTION.] The governing body of a 
  4.20  municipality may dissolve the program by ordinance.  The 
  4.21  ordinance shall provide for the collection of all outstanding 
  4.22  assessments, repayment of any remaining indebtedness incurred to 
  4.23  finance the program, and the final distribution of any money 
  4.24  remaining in the loan fund.