HOUSE BILL No. 6357 September 24, 2002, Introduced by Rep. DeVuyst and referred to the Committee on Land Use and Environment. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," (MCL 324.101 to 324.90106) by adding part 50. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 PART 50 ON-SITE DISPOSAL SYSTEMS 2 SEC. 5001. AS USED IN THIS PART: 3 (A) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL 4 QUALITY. 5 (B) "ON-SITE DISPOSAL SYSTEM" OR "SYSTEM" MEANS A NATURAL 6 SYSTEM OR MECHANICAL DEVICE USED TO COLLECT, TREAT, AND DISCHARGE 7 OR RECLAIM WASTEWATER FROM 1 OR MORE DWELLING UNITS WITHOUT THE 8 USE OF COMMUNITY-WIDE SEWERS OR A CENTRALIZED TREATMENT 9 FACILITY. 10 SEC. 5002. (1) THE DEPARTMENT SHALL PROMULGATE RULES THAT 11 ESTABLISH PERFORMANCE STANDARDS FOR THE DESIGN AND INSTALLATION 07171'02 JCB 2 1 OF ON-SITE DISPOSAL SYSTEMS. IN PROMULGATING THE RULES, THE 2 DEPARTMENT SHALL CONSIDER ALL OF THE FOLLOWING: 3 (A) THE SOIL AND GEOLOGIC CONDITIONS AT THE LOCATION IN 4 WHICH THE SYSTEM IS TO BE USED. 5 (B) THE ENVIRONMENTAL SENSITIVITY OF THE LOCATION IN WHICH 6 THE SYSTEM IS TO BE USED. 7 (C) THE TYPE OF SYSTEM TO BE USED. 8 (2) THE RULES PROMULGATED UNDER SUBSECTION (1) MAY REQUIRE 9 DIFFERENT STANDARDS FOR ON-SITE DISPOSAL SYSTEMS BASED UPON THE 10 GEOLOGIC CONDITIONS IN WHICH THE SYSTEM IS LOCATED OR PROPOSED TO 11 BE LOCATED. 12 (3) NOTWITHSTANDING SUBSECTION (1), A PASSIVE SOIL BASED 13 ON-SITE DISPOSAL SYSTEM IS AUTHORIZED FOR USE IN THIS STATE IF IT 14 MEETS ALL OF THE FOLLOWING REQUIREMENTS: 15 (A) THE SYSTEM IS INSTALLED IN COMPLIANCE WITH APPLICABLE 16 SOIL STANDARDS. 17 (B) THE MANUFACTURER OF THE SYSTEM PROVIDES TO EACH OWNER A 18 FULL WRITTEN WARRANTY ON EACH SYSTEM INSTALLED. THE WARRANTY 19 SHALL BE FOR A MINIMUM OF 5 YEARS FROM THE DATE OF INSTALLATION 20 AND SHALL COVER MANUFACTURER'S DESIGN AND INSTALLATION SPECIFICA- 21 TIONS FOR LABOR AND MATERIAL COSTS TO REMEDY FAILURE TO MEET PER- 22 FORMANCE EXPECTATIONS FOR SYSTEMS USED AND INSTALLED IN ACCORD- 23 ANCE WITH MANUFACTURER'S SPECIFICATIONS. THE WARRANTY SHALL 24 AUTOMATICALLY TRANSFER TO EACH SUBSEQUENT OWNER OF THE PROPERTY 25 DURING THE WARRANTY PERIOD. 26 (C) THE MANUFACTURER PROVIDES EVIDENCE OF FINANCIAL 27 ASSURANCE AS PROVIDED FOR IN SUBSECTION (4). 07171'02 3 1 (D) THE SYSTEM IS INSTALLED BY AN INDIVIDUAL WHO HAS BEEN 2 CERTIFIED BY THE MANUFACTURER OF THE SYSTEM AS TRAINED TO PROP- 3 ERLY INSTALL THE SYSTEM AND IS ON THE LIST OF INDIVIDUALS THAT 4 THE MANUFACTURER HAS SUBMITTED TO THE DEPARTMENT AS BEING 5 CERTIFIED. 6 (E) THE SYSTEM IS INSTALLED IN COMPLIANCE WITH THE 7 FOLLOWING: 8 (i) THE STORAGE CAPACITY OF THE SYSTEM IS EQUIVALENT TO THAT 9 AVAILABLE IN A CONVENTIONAL GRAVEL SYSTEM. 10 (ii) THE TOTAL TRENCH BOTTOM AREA OF THE SYSTEM MEASURED AS 11 THE AREA BOUNDED BY THE OUTERMOST LIMITS OF THE SYSTEM'S CONTACT 12 WITH THE TRENCH BOTTOM IS AT LEAST 50% OF THAT REQUIRED FOR A 13 CONVENTIONAL GRAVEL SYSTEM BUT NOT LESS THAN 300 SQUARE FEET. 14 (F) THE SYSTEM COMPLIES WITH ALL OF THE FOLLOWING: 15 (i) THE ABSORPTION AREA COMPLIES WITH ALL OTHER APPLICABLE 16 REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, VERTICAL AND HORIZON- 17 TAL SEPARATION DISTANCES, TRENCH LOCATION, TRENCH DEPTH, AND CON- 18 TOUR ORIENTATION. THE ENTIRE ABSORPTION AREA IS SHOWN ON THE 19 CONSTRUCTION DRAWINGS, WHICH ARE AVAILABLE TO THE DEPARTMENT. 20 (ii) EXCEPT FOR SIZING THE DRAINFIELD IN ACCORDANCE WITH 21 MANUFACTURER'S SPECIFICATION AND SUBSTITUTING THE APPROPRIATE 22 PROPRIETARY MATERIALS OR DEVICES, THE DRAINFIELD IS INSTALLED 23 EXACTLY AS PROVIDED BY APPLICABLE LAW, INCLUDING, BUT NOT LIMITED 24 TO, THE LATERAL SEPARATION OF TRENCHES BASED ON TRENCH WIDTH. 25 (iii) LATERAL TRENCH RUNS ARE AS LONG AS PRACTICAL WITHIN 26 THE LIMITS OF THE APPROVED SITE SO AS TO MINIMIZE THE LINEAR 27 LOADING RATE. 07171'02 4 1 (4) THE MANUFACTURER OF A PASSIVE, SOIL-BASED, ON-SITE 2 DISPOSAL SYSTEM SHALL DELIVER TO THE DEPARTMENT EVIDENCE OF 3 FINANCIAL ASSURANCE IN THE FORM OF A LETTER OF CREDIT, INSURANCE 4 POLICY, CASH ESCROW, OR OTHER ASSURANCE ACCEPTABLE TO THE DEPART- 5 MENT IN THE INITIAL AMOUNT OF AT LEAST $100,000.00, WHICH SHALL 6 BE AVAILABLE FOR PAYMENT OF UNSATISFIED WARRANTY CLAIMS IF THE 7 DEPARTMENT DETERMINES THAT THE MANUFACTURER REFUSES TO PAY A 8 LEGITIMATE WARRANTY CLAIM OR CLAIMS OR IS FINANCIALLY UNABLE TO 9 HONOR THE WARRANTY REQUIRED IN SUBSECTION (3)(B). THE MANUFAC- 10 TURER SHALL DELIVER EVIDENCE OF THE ANNUALLY REVISED FINANCIAL 11 ASSURANCE AMOUNT BASED ON THE FOLLOWING FORMULA ON OR BEFORE 12 DECEMBER 31 OF THE YEAR PRECEDING THE YEAR FOR WHICH THE FINAN- 13 CIAL ASSURANCE IS REQUIRED. A FAILURE RATE OF 3% AND A REPAIR 14 COST OF $5,000.00 SHALL BE ASSUMED UNTIL DATA ARE AVAILABLE FROM 15 SYSTEMS INSTALLED IN MICHIGAN THAT INDICATE A DIFFERENT FAILURE 16 RATE OR REPAIR COST SHOULD BE USED FOR A PARTICULAR SYSTEM. THE 17 MANUFACTURER SHALL BE RESPONSIBLE FOR COLLECTING AND REPORTING 18 THE DATA USED TO CALCULATE THE NUMBER OF SYSTEMS INSTALLED IN 19 MICHIGAN EACH YEAR. THE AMOUNT OF FINANCIAL ASSURANCE SHALL BE 20 INCREASED FROM THE $100,000.00 MINIMUM ANNUALLY, AS NECESSARY, 21 BASED ON THE FOLLOWING FORMULA: 22 FA=N x F x C 23 WHERE: FA=THE FINANCIAL ASSURANCE AMOUNT IN DOLLARS. 24 N=THE NUMBER OF SYSTEMS INSTALLED IN MICHIGAN OVER 25 THE PREVIOUS 5 YEARS. 26 F=THE FAILURE RATE OF THE SYSTEM BY PERCENTAGE 27 (THIS FACTOR MAY BE MODIFIED AFTER 2 YEARS OF DATA 28 ARE COLLECTED). 07171'02 5 1 C=THE AVERAGE COST OF REPAIR (THIS FACTOR MAY BE 2 MODIFIED AFTER 5 YEARS OF DATA ARE COLLECTED). 3 SEC. 5003. (1) PROPERTY CONTAINING AN ON-SITE DISPOSAL 4 SYSTEM SHALL NOT BE TRANSFERRED UNLESS THE SYSTEM HAS BEEN 5 INSPECTED AND A WRITTEN COPY OF THE INSPECTION REPORT IS PROVIDED 6 TO THE PROSPECTIVE TRANSFEREE AS PROVIDED IN SUBSECTION (3). THE 7 INSPECTION SHALL DETERMINE ALL OF THE FOLLOWING: 8 (A) WHETHER THE SYSTEM IS IN COMPLIANCE WITH THE RULES 9 PROMULGATED UNDER SECTION 5002 OR, IF THE SYSTEM WAS INSTALLED 10 PRIOR TO THE EFFECTIVE DATE OF THE RULES PROMULGATED UNDER 11 SECTION 5002, WHETHER THE SYSTEM IS FUNCTIONING PROPERLY. 12 (B) WHETHER THE SEPTIC TANK OF THE SYSTEM NEEDS TO BE PUMPED 13 OUT. 14 (C) FOR SYSTEMS INSTALLED ON OR AFTER THE EFFECTIVE DATE OF 15 THE RULES PROMULGATED UNDER SECTION 5002, ANY ACTIONS NEEDED TO 16 BRING THE SYSTEM INTO COMPLIANCE WITH THE RULES. 17 (D) FOR SYSTEMS INSTALLED PRIOR TO THE EFFECTIVE DATE OF THE 18 RULES PROMULGATED UNDER SECTION 5002, ANY ACTIONS NEEDED TO ALLOW 19 THE SYSTEM TO FUNCTION PROPERLY. 20 (2) THE INSPECTION UNDER SUBSECTION (1) SHALL BE CONDUCTED 21 BY THE COUNTY IN WHICH THE SYSTEM IS LOCATED OR A PERSON AUTHO- 22 RIZED BY THAT COUNTY TO CONDUCT THE INSPECTION. THE COUNTY OR 23 PERSON AUTHORIZED BY THE COUNTY TO CONDUCT INSPECTIONS MAY CHARGE 24 A REASONABLE FEE FOR CONDUCTING THE INSPECTIONS. 25 (3) THE WRITTEN COPY OF THE INSPECTION REPORT REQUIRED UNDER 26 SUBSECTION (1) SHALL BE PROVIDED TO THE PROSPECTIVE TRANSFEREE 27 NOT LATER THAN THE TIME PRESCRIBED FOR PROVIDING THE WRITTEN 28 DISCLOSURE STATEMENT UNDER THE SELLER DISCLOSURE ACT, 1993 PA 92, 07171'02 6 1 MCL 565.951 TO 565.966, AS PROVIDED IN SECTION 4 OF THE SELLER 2 DISCLOSURE ACT, 1993 PA 92, MCL 565.954. 3 (4) THIS SECTION DOES NOT APPLY TO TRANSFERS OF PROPERTY 4 DESCRIBED IN SECTION 3 OF THE SELLER DISCLOSURE ACT, 1993 PA 92, 5 MCL 565.953. 6 SEC. 5004. (1) THE DEPARTMENT SHALL DEVELOP EDUCATIONAL 7 MATERIALS TO EDUCATE ALL ON-SITE WASTEWATER SYSTEM HOMEOWNERS 8 REGARDING PROPER MAINTENANCE OF THEIR SYSTEMS. THESE EDUCATIONAL 9 MATERIALS SHALL INCLUDE, AT A MINIMUM, ALL OF THE FOLLOWING: 10 (A) INFORMATION ON HOW THE SYSTEM WORKS AND WHAT SHOULD AND 11 SHOULD NOT BE INTRODUCED INTO THE SYSTEM. 12 (B) NORMAL INTERVALS FOR PUMPING AND CLEANING THE SEPTIC 13 TANK. 14 (C) SCHEDULE AND PROCEDURES FOR INSPECTING THE SYSTEM FOR 15 ABOVEGROUND AND BELOWGROUND MALFUNCTION. 16 (D) LIKELY LONG-TERM COSTS OF FAILING TO PROPERLY MAINTAIN 17 THE SYSTEM. 18 (2) THE DEPARTMENT SHALL PROVIDE COPIES OF THE EDUCATIONAL 19 MATERIALS DEVELOPED UNDER SUBSECTION (1) TO EACH COUNTY. EACH 20 COUNTY SHALL PROVIDE THE EDUCATIONAL MATERIALS TO THE OWNERS OF 21 ON-SITE DISPOSAL SYSTEMS LOCATED WITHIN ITS JURISDICTION AT LEAST 22 ONCE EACH YEAR. THE EDUCATIONAL MATERIALS DISTRIBUTED UNDER THIS 23 SECTION SHALL BE DEVELOPED BY THE DEPARTMENT AND SHALL BE PRO- 24 VIDED TO EACH COUNTY FOR DISTRIBUTION. 07171'02 Final page. JCB