HOUSE BILL No. 5136 September 30, 1997, Introduced by Reps. Jellema, Kaza, Kukuk, Birkholz, Dobb, LaForge, Goschka and DeVuyst and referred to the Committee on Conservation, Environment and Recreation. A bill to amend 1976 PA 399, entitled "Safe drinking water act," by amending the title and sections 2, 4, 5, 7, 8, 9, 14, and 16 (MCL 325.1002, 325.1004, 325.1005, 325.1007, 325.1008, 325.1009, 325.1014, and 325.1016), the title and sections 2, 7, and 9 as amended by 1993 PA 165, and by adding section 3b. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to protect the public health; to provide for supervi- 3 sion and control over public water supplies; to prescribe the 4 powers and duties of the department ofpublic health5 ENVIRONMENTAL QUALITY; to provide for the submission of plans and 6 specifications for waterworks systems and the issuance of 7 construction permits therefor; TO PROVIDE FOR CAPACITY 8 ASSESSMENTS AND SOURCE WATER ASSESSMENTS OF PUBLIC WATER 02456'97 ** JCB 2 1 SUPPLIES; to provide for the classification of public water 2 supplies and the examination, certification and regulation of 3 persons operating those systems; to provide for continuous, ade- 4 quate operation of privately owned, public water supplies; to 5 authorize the promulgation of rules to carry out the intent of 6 the act; to create the water supply fund; to provide for the 7 administration of the water supply fund; and to provide 8 penalties. 9 Sec. 2. As used in this act: 10 (a) "Bottled drinking water" means water that is ultimately 11 sold, provided, or offered for human consumption in a closed 12 container. 13 (B) "CAPACITY ASSESSMENT" MEANS AN EVALUATION OF THE TECHNI- 14 CAL, FINANCIAL, AND MANAGERIAL CAPABILITY OF A COMMUNITY SUPPLY 15 OR NONTRANSIENT NONCOMMUNITY WATER SUPPLY TO COMPLY AND MAINTAIN 16 COMPLIANCE WITH ALL REQUIREMENTS OF THIS ACT AND THE RULES 17 PROMULGATED UNDER THIS ACT. 18 (C)(b)"Community supply" means a public water supply 19 that provides year-round service to not fewer than 15 living 20 units or which regularly provides year-round service to not fewer 21 than 25 residents. 22 (D)(c)"Contaminant" means a physical, chemical, biologi- 23 cal, or radiological substance or matter in water. 24 (E)(d)"Customer service connection" means the pipe 25 between a water main and customer site piping or building plumb- 26 ing system. 02456'97 ** 3 1 (F)(e)"Customer site piping" means an underground piping 2 system owned or controlled by the customer that conveys water 3 from the customer service connection to building plumbing systems 4 and other points of use on lands owned or controlled by the 5 customer. Customer site piping does not include any system that 6 incorporates treatment to protect public health. 7 (G)(f)"Department" means the department ofpublic8healthENVIRONMENTAL QUALITY or its authorized agent or 9 representative. 10 (H)(g)"Director" means the director ofpublic health11 THE DEPARTMENT OF ENVIRONMENTAL QUALITY or his or her authorized 12 agent or representative. 13 (I)(h)"Imminent hazard" means that in the judgment of 14 the director there is a violation, or a condition that may cause 15 a violation, of the state drinking water standards at a public 16 water supply requiring immediate action to prevent endangering 17 the health of people. 18 (J)(i)"Living unit" means a house, apartment, or other 19 domicile occupied or intended to be occupied on a day to day 20 basis by an individual, family group, or equivalent. 21 (K)(j)"Noncommunity supply" means a public water supply 22 that is not a community supply, but that has not less than 15 23 service connections or that serves not fewer than 25 individuals 24 on an average daily basis for not less than 60 days per year. 25 (l)(k)"Nontransient noncommunity water supply" means a 26 noncommunity public water supply that serves not fewer than 25 of 27 the same individuals on an average daily basis over 6 months per 02456'97 ** 4 1 year. This definition includes water supplies in places of 2 employment, schools, and day-care centers. 3 (M)(l)"Person" means an individual, partnership, copart- 4 nership, cooperative, firm, company, public or private associa- 5 tion or corporation, political subdivision, agency of the state, 6 agency of the federal government, trust, estate, joint structure 7 company, or any other legal entity, or their legal representa- 8 tive, agent, or assigns. 9 (N)(m)"Plans and specifications" means drawings, data, 10 and a true description or representation of an entire waterworks 11 system or parts of the system as it exists or is to be con- 12 structed, and a statement on how a waterworks system is to be 13 operated. 14 (O)(n)"Political subdivision" means a city, village, 15 township, charter township, county, district, authority or por- 16 tion or combination thereof. 17 (P)(o)"Public water supply" means a waterworks system 18 that provides water for drinking or household purposes to persons 19 other than the supplier of the water, and does not include either 20 of the following: 21 (i) A waterworks system that supplies water to only 1 living 22 unit. 23 (ii) A waterworks system that consists solely of customer 24 site piping. 25 (Q)(p)"State drinking water standards" means quality 26 standards setting limits for contaminant levels or establishing 02456'97 ** 5 1 treatment techniques to meet standards necessary to protect the 2 public health. 3 (R)(q)"Service connection" means a direct connection 4 from a distribution water main to a living unit or other site to 5 provide water for drinking or household purposes. 6 (S) "SOURCE WATER ASSESSMENT" MEANS A STATE PROGRAM TO 7 DELINEATE THE BOUNDARIES OF AREAS IN THE STATE FROM WHICH 1 OR 8 MORE PUBLIC WATER SUPPLIES RECEIVE SUPPLIES OF DRINKING WATER, TO 9 IDENTIFY CONTAMINANTS REGULATED UNDER THIS ACT FOR WHICH MONITOR- 10 ING IS REQUIRED BECAUSE THE STATE HAS DETERMINED THEY MAY PRESENT 11 A THREAT TO PUBLIC HEALTH, AND, TO THE EXTENT PRACTICAL, TO 12 DETERMINE THE SUSCEPTIBILITY OF THE PUBLIC WATER SUPPLY IN THE 13 DELINEATED AREA TO THESE CONTAMINANTS. 14 (T)(r)"Supplier of water" or "supplier" means a person 15 who owns or operates a public water supply, and includes a water 16 hauler. 17 (U)(s)"Transient noncommunity water supply" means a non- 18 community supply that does not meet the definition of nontran- 19 sient noncommunity water supply. 20 (V)(t)"Water hauler" means a person engaged in bulk 21 vehicular transportation of water to other than the water 22 hauler's own household which is intended for use or used for 23 drinking or household purposes. Excluded from this definition 24 are those persons providing water solely for employee use. 25 (W)(u)"Water main" means a pipe owned or controlled by a 26 supplier that may convey water to a customer service connection 27 or to a fire hydrant. 02456'97 ** 6 1 (X)(v)"Waterworks system" or "system" means a system of 2 pipes and structures through which water is obtained and distrib- 3 uted, including but not limited to wells and well structures, 4 intakes and cribs, pumping stations, treatment plants, storage 5 tanks, pipelines and appurtenances, or a combination thereof, 6 actually used or intended for use for the purpose of furnishing 7 water for drinking or household purposes. 8 (Y)(w)"Year-round service" means the ability of a sup- 9 plier of water to provide drinking water on a continuous basis to 10 a living unit or facility. 11 SEC. 3B. (1) THE DEPARTMENT MAY DO 1 OR MORE OF THE 12 FOLLOWING: 13 (A) CONDUCT A CAPACITY ASSESSMENT AT A COMMUNITY SUPPLY, A 14 NONTRANSIENT NONCOMMUNITY WATER SUPPLY, OR A PUBLIC WATER SUPPLY 15 APPLYING TO THE DEPARTMENT FOR ASSISTANCE UNDER PART 54 OF THE 16 NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT, 1994 PA 451, 17 MCL 324.5401 TO 324.5418. 18 (B) CONDUCT A SOURCE WATER ASSESSMENT AT A PUBLIC WATER 19 SUPPLY. 20 (C) ENTER THE FACILITIES AND BUSINESS OFFICES USED IN THE 21 OPERATION OF A PUBLIC WATER SUPPLY. 22 (2) PUBLIC WATER SUPPLIES SHALL MAKE AVAILABLE TO THE 23 DEPARTMENT RECORDS NEEDED TO CONDUCT A CAPACITY ASSESSMENT OR 24 SOURCE WATER ASSESSMENT. THE DEPARTMENT MAY REQUEST INFORMATION 25 IN WRITING OR DURING ON-SITE VISITS TO CONDUCT CAPACITY ASSESS- 26 MENTS OR SOURCE WATER ASSESSMENTS. 02456'97 ** 7 1 Sec. 4. (1) A supplier of water shall file with the 2 department the plans and specifications of the entire waterworks 3 system owned or operated by the supplier, unless the department 4 determines that its existing records are adequate. A general 5 plan of the waterworks system for each public water supply shall 6 be provided to the department by a supplier of water and shall be 7 updated as determined necessary by the department. 8 (2) Upon receipt of the plans and specifications for a pro- 9 posed waterworks system, the department shall evaluate the ade- 10 quacy of the proposed system to protect the public health by sup- 11 plying water meeting the state drinking water standards. THE 12 DEPARTMENT SHALL ALSO CONDUCT A CAPACITY ASSESSMENT FOR A PRO- 13 POSED COMMUNITY SUPPLY OR NONTRANSIENT NONCOMMUNITY WATER SUPPLY 14 AND DETERMINE IF THE SYSTEM HAS THE TECHNICAL, FINANCIAL, AND 15 MANAGERIAL CAPACITY TO MEET ALL REQUIREMENTS OF THIS ACT AND THE 16 RULES PROMULGATED UNDER THIS ACT, ON THE DATE OF COMMENCEMENT OF 17 OPERATIONS. If upon evaluation the department determines the 18 plans and specifications to be inadequate OR THE CAPACITY ASSESS- 19 MENT SHOWS THE SYSTEM TO BE INADEQUATE, the department may return 20 the plans and specifications to the applicant and require addi- 21 tions or modifications as may be appropriate. The department may 22 reject plans and specifications for a waterworks system which it 23 determines will not satisfactorily provide for the protection of 24 the public health. THE DEPARTMENT MAY DENY A PERMIT FOR CON- 25 STRUCTION OF A PROPOSED COMMUNITY SUPPLY OR A NONTRANSIENT NON- 26 COMMUNITY WATER SUPPLY IF THE CAPACITY ASSESSMENT SHOWS THAT THE 27 PROPOSED SYSTEM DOES NOT HAVE ADEQUATE TECHNICAL, FINANCIAL, OR 02456'97 ** 8 1 MANAGERIAL CAPACITY TO MEET THE REQUIREMENTS OF THIS ACT AND THE 2 RULES PROMULGATED UNDER THIS ACT. 3 (3) Before commencing the construction of a waterworks 4 system or an alteration, addition, or improvement to a system, a 5 supplier of water shall submit the plans and specifications for 6 the improvements to the department and secure from the department 7 a permit for construction of the same as provided by rule. Plans 8 and specifications submitted to the department shall be prepared 9 by a professional engineerregistered under Act No. 240 of the10Public Acts of 1937, as amended, being sections 338.551 to11338.576 of the Michigan Compiled LawsLICENSED UNDER ARTICLE 20 12 OF THE OCCUPATIONAL CODE, 1980 PA 299, MCL 339.2001 TO 339.2014. 13 A contractor, builder, or supplier of water shall not engage in 14 or begin the construction of a waterworks system or an alter- 15 ation, addition, or improvement thereto until a valid permit for 16 the construction has been secured from the department. A con- 17 tractor, builder, or supplier of water who permits or allows con- 18 struction to proceed without a valid permit, or in a manner not 19 in accordance with the plans and specifications approved by the 20 department, violates this act. A supplier of water shall not 21 issue a voucher,OR check,or in any other way expend money 22 or provide consideration for construction of a waterworks system 23 unless a valid permit issued by the department is in effect. 24 (4) THE DEPARTMENT MAY DENY A PERMIT FOR CONSTRUCTION OF A 25 WATERWORKS SYSTEM OR AN ALTERATION, ADDITION, OR IMPROVEMENT TO A 26 WATERWORKS SYSTEM IF THE MOST RECENT CAPACITY ASSESSMENT SHOWS 27 THAT THE WATERWORKS SYSTEM DOES NOT HAVE ADEQUATE TECHNICAL, 02456'97 ** 9 1 FINANCIAL, OR MANAGERIAL CAPACITY TO MEET THE REQUIREMENTS OF 2 THIS ACT AND THE RULES PROMULGATED UNDER THIS ACT, AND THE DEFI- 3 CIENCIES IDENTIFIED IN THAT CAPACITY ASSESSMENT REMAIN UNCOR- 4 RECTED, UNLESS THE PROPOSED CONSTRUCTION WILL REMEDY THE 5 DEFICIENCIES. 6 Sec. 5. (1) The department shall promulgate and enforce 7 rules to carry out this act pursuant toAct No. 306 of the8Public Acts of 1969, as amended, being sections 24.201 to 24.3159of the Michigan Compiled LawsTHE ADMINISTRATIVE PROCEDURES ACT 10 OF 1969, 1969 PA 306, MCL 24.201 TO 24.328. The rules,asAT a 11 minimum, shall include the following: 12 (a) Requirements for the submission of reports, plans, and 13 specifications for the design and construction of a waterworks 14 system or a part thereof, and a plan for operating and maintain- 15 ing all or a part of the waterworks system, including the protec- 16 tion of water quality within the distribution system as necessary 17 to protect the public health. 18 (b) State drinking water standards and associated monitoring 19 requirements, the attainment and maintenance of which are neces- 20 sary to protect the public health. 21 (c) The classification of waterworks systems or portions 22 thereof, the examination for certification of the operators of 23 those systems including shift operators of water treatment sys- 24 tems, and for the issuance, suspension, and revocation of 25 certificates. 26 (D) CRITERIA FOR CAPACITY ASSESSMENTS PERFORMED BY THE 27 DEPARTMENT AT COMMUNITY SUPPLIES, NONTRANSIENT NONCOMMUNITY WATER 02456'97 ** 10 1 SUPPLIES, OR A PUBLIC WATER SUPPLY APPLYING TO THE DEPARTMENT FOR 2 ASSISTANCE UNDER PART 54 OF THE NATURAL RESOURCES AND ENVIRONMEN- 3 TAL PROTECTION ACT, 1994 PA 451, MCL 324.5401 TO 324.5418. 4 (E) REQUIREMENTS FOR PROVISION OF FACILITIES BY PUBLIC WATER 5 SUPPLIES THAT WILL ASSURE AN ADEQUATE AND RELIABLE SUPPLY OF 6 DRINKING WATER ON A CONTINUOUS BASIS. 7 (2) Rules governing public water supplieswhich have been8 promulgatedby authority granted the directorunderAct No. 989of the Public Acts of 1913, as amended, being sections 325.201 to10325.214 of the Michigan Compiled LawsFORMER 1913 PA 98, and 11 whichareWERE in effect onthe effective date of this act12 JANUARY 4, 1977 are continued in accordance with section 31 of 13Act No. 306 of the Public Acts of 1969, as amended, being sec-14tion 24.231 of the Michigan Compiled LawsTHE ADMINISTRATIVE 15 PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.231, and may be 16 amended or rescinded by the director under this act. 17 (3) No rule promulgated may require the addition of any sub- 18 stance for preventive health care purposes unrelated to contami- 19 nation of drinking water. 20 Sec. 7. (1) The supplier of water shall collect water sam- 21 ples or have them collected on a schedule at least equal to that 22 outlined in the rules, shall cause those samples to be analyzed 23 in the state laboratory or a laboratory certified by the depart- 24 ment or by the United States environmental protection agency for 25 contaminants listed in the state drinking water standards, and 26 shall report the results of the analyses to the department in a 27 timely manner as specified in the rules. 02456'97 ** 11 1 (2) IftheA supplier OF WATER WHO SERVES A POPULATION OF 2 10,000 OR FEWER INDIVIDUALS fails tomeet this responsibility3 COMPLY WITH SUBSECTION (1), the department may do any of the 4 following: 5 (a) Impose against that suppliera civilAN ADMINISTRATIVE 6 fine of $200.00 for each failure to collect and have analyzed a 7 water sample required under this act. 8 (b) For each failure to collect and have analyzed a water 9 sample required under this act within the 12-month period follow- 10 ing a failure described in subdivision (a), impose against that 11 suppliera civilAN ADMINISTRATIVE fine of $400.00. 12 (c) In addition toa penalty described inAN ADMINISTRA- 13 TIVE FINE IMPOSED UNDER subdivision (a) or (b), obtain a sampling 14 or analysis or both required under this act at the supplier's 15 cost. 16 (d) Proceed pursuant to section 22. 17 (3) IF A SUPPLIER OF WATER SERVING A POPULATION OF 10,000 OR 18 LESS FAILS TO MEET STATE DRINKING WATER STANDARDS, THE DEPARTMENT 19 MAY DO ANY OF THE FOLLOWING: 20 (A) IMPOSE AGAINST THAT SUPPLIER AN ADMINISTRATIVE FINE OF 21 NOT LESS THAN $400.00 PER DAY PER VIOLATION AND NOT MORE THAN 22 $1,000.00 PER DAY PER VIOLATION. AN ADMINISTRATIVE FINE FOR A 23 SINGLE VIOLATION SHALL NOT EXCEED A CUMULATIVE TOTAL OF 24 $2,000.00. 25 (B) PROCEED PURSUANT TO SECTION 22. 26 (4) IF A SUPPLIER OF WATER SERVING A POPULATION OF MORE THAN 27 10,000 FAILS TO COMPLY WITH STATE DRINKING WATER STANDARDS OR ANY 02456'97 ** 12 1 MONITORING OR REPORTING REQUIREMENT, THE DEPARTMENT MAY DO ANY OF 2 THE FOLLOWING: 3 (A) IMPOSE AGAINST THAT SUPPLIER AN ADMINISTRATIVE FINE OF 4 NOT LESS THAN $1,000.00 PER DAY PER VIOLATION AND NOT MORE THAN 5 $2,000.00 PER DAY PER VIOLATION. AN ADMINISTRATIVE FINE FOR A 6 SINGLE VIOLATION MAY NOT EXCEED A CUMULATIVE TOTAL OF 7 $10,000.00. 8 (B) IN ADDITION TO AN ADMINISTRATIVE FINE IMPOSED UNDER SUB- 9 DIVISION (A), OBTAIN AT THE SUPPLIER'S COST WATER SAMPLES AND 10 SECURE ANALYSES OF THE WATER SAMPLES AT A CERTIFIED LABORATORY IF 11 MONITORING HAS NOT MET MINIMUM REQUIREMENTS UNDER THIS ACT. 12 (C) PROCEED PURSUANT TO SECTION 22. 13 (5)(2)A supplier may appeala civil penaltyAN ADMIN- 14 ISTRATIVE FINE IMPOSED UNDER THIS SECTION pursuant to the admin- 15 istrative procedures act of 1969,Act No. 306 of the Public Acts16of 1969, being sections 24.201 to 24.328 of the Michigan Compiled17Laws1969 PA 306, MCL 24.201 TO 24.328. 18 (6) ADMINISTRATIVE FINES COLLECTED UNDER THIS SECTION SHALL 19 BE FORWARDED TO THE STATE TREASURER FOR DEPOSIT INTO THE STATE 20 DRINKING WATER REVOLVING FUND ESTABLISHED UNDER SECTION 16B OF 21 THE SHARED CREDIT RATING ACT, 1985 PA 227, MCL 141.1066B. 22 Sec. 8. The department shall give due consideration to the 23 size, type, location, and other conditions at public water sup- 24 plies for the purpose of specifying design and operation 25 standards, AND FOR THE PURPOSE OF ESTABLISHING CRITERIA FOR 26 CAPACITY ASSESSMENTS. 02456'97 ** 13 1 Sec. 9. (1) The department shall classify PUBLIC WATER 2 SUPPLIES, INCLUDING water treatment and distribution systems AT 3 COMMUNITY SUPPLIES with regard to size, type, location, and other 4 physical conditions for the purpose of establishing the skill, 5 knowledge, and experience that individuals need to maintain and 6 operate the systems effectively. 7 (2) The director shall appoint an advisory board of examin- 8 ers which shall assist the department in the examination of indi- 9 viduals as to their competency to operate water treatment systems 10 and water distribution systems. The advisory board shall make 11 recommendations to the department relative to the certification 12 of those individuals. 13 (3) The membership of the advisory board shall consist of 2 14 certified water treatment operators, 2 certified water distribu- 15 tion operators, 1 superintendent or manager of a supplier of 16 water, 1 representative of the administrative branch of a local 17 governmental agency, 2 members of the public at large, and 1 pro- 18 fessor of sanitary or environmental engineering at a university 19 in the state. A representative of the department shall be the 20 nonvoting secretary for the board. 21 (4) For individuals meeting the requirements, the department 22 shall issue certificates acknowledging their competency to oper- 23 ate a specified class of waterworks system or portion of water- 24 works system. The department may suspend or revoke a certificate 25 as specified by rule. 02456'97 ** 14 1 (5) Awater treatment and distribution systemPUBLIC WATER 2 SUPPLY shall be under the supervision of a properly certified 3 operator as specified in the rules. 4 (6) Those individuals now certified to operate water treat- 5 ment systems underthe existing mandatorycertification rules 6being R325.551 through R325.572 of the Michigan administrative7codePROMULGATED UNDER THIS ACT, and those meeting the require- 8 ments of the voluntary distribution system operator certification 9 program administered by the department, shall be considered to 10 meet the requirements of this section and shall be issued a cer- 11 tificate in an appropriate class in accordance with the certifi- 12 cations system established under this act. 13 (7) Those individuals who are superintendents of distribu- 14 tion systems shall be considered to meet the requirements of this 15 section only for the waterworks system by which they are now 16 employed, and shall be issued a certificate for continuing opera- 17 tion of that distribution system upon receipt by the department 18 of a completed application by January 4, 1978. 19 (8) Operators certified under this act shall be required to 20 renew their certificates in accordance with rules promulgated 21 under this act, including mandatory continuing education or com- 22 petency demonstration. 23 Sec. 14. (1) A supplier of water shall file with the 24 department such reports and shall maintain such records as the 25 department may by rule require. 26 (2) A SUPPLIER OF WATER SHALL PROVIDE TO ITS CUSTOMER SUCH 27 REPORTS AS THE DEPARTMENT MAY BY RULE REQUIRE. THESE RULES MAY 02456'97 ** 15 1 INCLUDE THE CONTENT OF THE REPORTS UNDER THIS SUBSECTION AND THE 2 FREQUENCY AND MANNER OF DELIVERY OF THE REPORTS. 3 Sec. 16. (1) The department may enter into agreements, con- 4 tracts, or cooperative arrangements under terms and conditions 5 appropriate with other state agencies, federal agencies, inter- 6 state agencies, political subdivisions, educational institutions, 7 local health departments, or other organizations or individuals 8 for the purpose of administering this act. The department may 9 solicit and receive grants of money or other aid from federal and 10 other public or private agencies or individuals for the adminis- 11 tration of this act, or a portion thereof, to conduct research 12 and training activities or cause them to be conducted, to cause 13 waterworks systems or portions thereof to be constructed, or for 14 other program purposes. 15 (2) THE DEPARTMENT MAY USE FUNDS APPROPRIATED TO IMPLEMENT 16 THIS ACT TO PROVIDE LOAN OR GRANT ASSISTANCE TO PUBLIC WATER SUP- 17 PLIES FOR AN ACTIVITY WHICH FURTHERS THE OBJECTIVES OF THIS ACT. 18 THE DEPARTMENT MAY REQUIRE MATCHING FUNDS FROM A PUBLIC WATER 19 SUPPLY WHEN THE DEPARTMENT IS PROVIDING LOAN OR GRANT 20 ASSISTANCE. 21 (3) THE DEPARTMENT MAY RECEIVE FUNDS FROM ANOTHER AGENCY AND 22 PASS THROUGH FUNDS TO PERSONS ELIGIBLE FOR FUNDING ASSISTANCE 23 WHERE APPLICABLE AND CONSISTENT WITH THIS ACT AND TITLE XIV OF 24 THE PUBLIC HEALTH SERVICE ACT, CHAPTER 373, 88 STAT. 1660. 02456'97 ** Final page. 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