S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 8255                                                 A. 10444
 
                       S E N A T E - A S S E M B L Y
 
                              April 23, 2018
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee on Local Govern-
   ment
 
 IN  ASSEMBLY  -- Introduced by M. of A. THIELE -- read once and referred
   to the Committee on Local Governments
 
 AN ACT to amend the general municipal law  in  relation  to  authorizing
   municipal  corporations  to  establish  septic system replacement loan
   programs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The general municipal law is amended by adding a new arti-
 cle 5-M to read as follows:
                                ARTICLE 5-M
             MUNICIPAL SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM
 SECTION 119-HH. LEGISLATIVE FINDINGS AND DECLARATION.
         119-II. DEFINITIONS.
         119-JJ. MUNICIPAL SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM.
   § 119-HH. LEGISLATIVE FINDINGS AND DECLARATION.  THE LEGISLATURE FINDS
 AND DECLARES THAT IT IS THE POLICY OF  THE  STATE  TO  PROMOTE  IMPROVED
 WATER  QUALITY  ACROSS  THE  STATE;  AND THAT TO ACHIEVE SUCH POLICY AND
 GOALS THE STATE MUST PROMOTE THE DEPLOYMENT OF ENHANCED TREATMENT  TECH-
 NOLOGIES,  INCLUDING ADVANCED NITROGEN REMOVAL SYSTEMS, TO SIGNIFICANTLY
 AND QUANTIFIABLY REDUCE ENVIRONMENTAL AND/OR PUBLIC HEALTH IMPACTS ASSO-
 CIATED WITH EFFLUENT FROM A CESSPOOL OR  SEPTIC  SYSTEM  TO  GROUNDWATER
 USED  FOR  DRINKING  WATER,  OR  A  THREATENED  OR AN IMPAIRED WATERBODY
 THROUGHOUT THE STATE; AND THAT MUNICIPALITIES WOULD FULFILL AN IMPORTANT
 PUBLIC PURPOSE BY PROVIDING LOANS TO PROPERTY OWNERS FOR  THE  INSTALLA-
 TION OF SUCH ENHANCED TREATMENT TECHNOLOGIES.
   §  119-II.  DEFINITIONS.  AS USED IN THIS SECTION, THE FOLLOWING WORDS
 AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CESSPOOL" MEANS A DRYWELL THAT RECEIVES UNTREATED  SANITARY  WASTE
 CONTAINING  HUMAN  EXCRETA,  WHICH  SOMETIMES  HAS AN OPEN BOTTOM AND/OR
 PERFORATED SIDES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15333-01-8

 S. 8255                             2                           A. 10444
 
   2. "SEPTIC SYSTEM" MEANS A SYSTEM  THAT  PROVIDES  FOR  THE  TREATMENT
 AND/OR  DISPOSITION  OF THE COMBINATION OF HUMAN AND SANITARY WASTE WITH
 WATER NOT EXCEEDING ONE THOUSAND  GALLONS  PER  DAY,  SERVING  A  SINGLE
 PARCEL OF LAND.
   3.  "SEPTIC SYSTEM PROJECT" MEANS THE REPLACEMENT OF A CESSPOOL WITH A
 SEPTIC SYSTEM, THE INSTALLATION, REPLACEMENT  OR  UPGRADE  OF  A  SEPTIC
 SYSTEM  OR  SEPTIC SYSTEM COMPONENTS, OR INSTALLATION OF ENHANCED TREAT-
 MENT TECHNOLOGIES, INCLUDING AN ADVANCED  NITROGEN  REMOVAL  SYSTEM,  TO
 SIGNIFICANTLY AND QUANTIFIABLY REDUCE ENVIRONMENTAL AND/OR PUBLIC HEALTH
 IMPACTS  ASSOCIATED  WITH  EFFLUENT  FROM A CESSPOOL OR SEPTIC SYSTEM TO
 GROUNDWATER USED AS DRINKING WATER,  OR  A  THREATENED  OR  AN  IMPAIRED
 WATERBODY.
   §  119-JJ.  MUNICIPAL  SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM.  1. THE
 LEGISLATIVE BODY OF ANY MUNICIPAL CORPORATION MAY, BY LOCAL LAW,  ESTAB-
 LISH A SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM.
   2.  SUCH PROGRAM MAY MAKE LOANS TO THE OWNERS OF REAL PROPERTY LOCATED
 WITHIN THE MUNICIPAL CORPORATION TO FINANCE THE INSTALLATION  OF  SEPTIC
 SYSTEM  PROJECTS. THE MUNICIPAL CORPORATION MAY ESTABLISH PRIORITY AREAS
 FOR SUCH LOANS IN ORDER TO  MAXIMIZE  ENVIRONMENTAL  AND  PUBLIC  HEALTH
 BENEFITS.
   3. EACH SUCH LOCAL LAW ESTABLISHING THE SEPTIC SYSTEM REPLACEMENT LOAN
 PROGRAM  SHALL  PROVIDE  FOR  THE CRITERIA FOR MAKING SUCH LOANS AND THE
 TERMS AND CONDITIONS FOR REPAYMENT OF SUCH LOANS.
   4. EVERY LOAN MADE UNDER THE SEPTIC SYSTEM  REPLACEMENT  LOAN  PROGRAM
 SHALL  BE  REPAID  OVER  A  TERM  NOT TO EXCEED TEN YEARS. THE MUNICIPAL
 CORPORATION SHALL SET A FIXED RATE OF INTEREST FOR THE REPAYMENT OF  THE
 PRINCIPAL AMOUNT OF EACH LOAN AT THE TIME THE LOAN IS MADE.
   5.  THE  PRINCIPAL AMOUNT OF EACH SUCH LOAN, EXCLUDING INTEREST, SHALL
 NOT EXCEED THE ACTUAL COST OF  INSTALLING  THE  SEPTIC  SYSTEM  PROJECT,
 INCLUDING THE COSTS OF NECESSARY EQUIPMENT, MATERIALS, AND LABOR.
   6.  NO SUCH LOAN SHALL BE MADE FOR A SEPTIC SYSTEM REPLACEMENT PROJECT
 UNLESS SUCH SYSTEM IS APPROVED BY THE LOCAL DEPARTMENT OF HEALTH.
   7. THE LOAN MADE UNDER THE  SEPTIC  SYSTEM  REPLACEMENT  LOAN  PROGRAM
 SHALL CONSTITUTE A LIEN UPON THE REAL PROPERTY BENEFITTED BY SUCH LOAN.
   8.  THE  MUNICIPAL  CORPORATION  MAY  REQUIRE  THE LOAN MADE UNDER THE
 SEPTIC SYSTEM LOAN PROGRAM TO BE REPAID BY THE PROPERTY OWNER THROUGH  A
 CHARGE  ON  THE REAL PROPERTY BENEFITTED BY SUCH LOAN. SUCH CHARGE SHALL
 BE ON THE REAL PROPERTY AND SHALL BE LEVIED AND COLLECTED  AT  THE  SAME
 TIME  AND  IN  THE  SAME  MANNER  AS MUNICIPAL TAXES, PROVIDED THAT SUCH
 CHARGE SHALL BE SEPARATELY LISTED ON THE TAX BILL, AND PROVIDED  FURTHER
 THAT  IN THE EVENT SUCH CHARGE SHOULD NOT BE PAID IN A TIMELY MANNER, NO
 OTHER MUNICIPAL CORPORATION SHALL BE REQUIRED  TO  CREDIT  OR  OTHERWISE
 GUARANTEE  THE AMOUNT OF SUCH UNPAID CHARGE TO THE MUNICIPAL CORPORATION
 WHICH AUTHORIZED THE LOAN, NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE
 CONTRARY.
   §  2.  Severability. The provisions of this act shall be severable and
 if any portion thereof or the applicability thereof  to  any  person  or
 circumstances  shall  be held invalid, the remainder of this act and the
 application thereof shall not be affected thereby.
   § 3. This act shall take effect immediately.