As Introduced

127th General Assembly
Regular Session
2007-2008
S. B. No. 172


Senator Cafaro 

Cosponsors: Senators Grendell, Fedor, Roberts, Kearney, Mason, Boccieri, Smith, Miller, D., Morano, Wilson 

A BILL
To amend section 319.281 and to enact sections 1
3718.30 to 3718.38 of the Revised Code to delay 2
the application of the rules adopted under the 3
Household and Small Sewage Treatment Systems Law 4
that are related to the rehabilitation, 5
renovation, improvement, or replacement of an 6
existing household sewage treatment system, to 7
establish the Household Sewage Treatment System 8
Revolving Loan Program and the Household Sewage 9
Treatment System Grant Program in the Department 10
of Health to provide loans and grants to eligible 11
persons for repairs to or upgrades of household 12
sewage treatment systems, to make appropriations, 13
and to declare an emergency.14


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1.  That section 319.281 be amended and sections 15
3718.30, 3718.31, 3718.32, 3718.33, 3718.34, 3718.35, 3718.36, 16
3718.37, and 3718.38 of the Revised Code be enacted to read as 17
follows:18

       Sec. 319.281. (A) The county auditor shall place on the19
general tax list and duplicate compiled in accordance with section 20
319.28 of the Revised Code the amount certified by the health21
commissioner of a city or general health district pursuant to22
section 3709.091 of the Revised Code of any unpaid operation23
permit or inspection fee for a household sewage treatment system24
or a small flow on-site sewage treatment system or any other 25
unpaid fee levied under Chapter 3718. of the Revised Code and any 26
accrued late payment penalties, together with any fee charged by 27
the county auditor for placing the amount on the general tax list 28
and duplicate and for the expenses of its collection. The amount29
placed on the general tax list and duplicate shall be a lien on 30
the real property on which the household sewage treatment system 31
or small flow on-site sewage treatment system is located from the32
date the amount was placed on the tax list and duplicate, and33
shall be charged and collected in the same manner as taxes on the34
list.35

       (B) The county auditor shall place on the general tax list 36
and duplicate compiled in accordance with section 319.28 of the 37
Revised Code the amount certified by the director of health 38
pursuant to rules adopted under section 3718.32 of the Revised 39
Code of the repayment of a loan from the household sewage 40
treatment system revolving loan fund created under section 3718.31 41
of the Revised Code that the person receiving the loan has chosen 42
to have assessed as a part of the person's real property taxes. 43
The amount placed on the general tax list and duplicate shall be 44
charged and collected in the same manner as taxes on the list. 45
After each settlement under divisions (A) and (C) of section 46
321.24 of the Revised Code, the county treasurer shall provide for 47
payment from the undivided income fund to the household sewage 48
treatment system revolving loan fund the amount of loan repayments 49
collected.50

       Sec. 3718.30. As used in sections 3718.30 to 3718.38 of the 51
Revised Code:52

       (A) "Eligible person" means a person who qualifies as a 53
person with a failing household sewage treatment system pursuant 54
to guidelines that the director of health establishes in rules 55
adopted under section 3718.32 of the Revised Code for purposes of 56
the revolving loan program and under section 3718.36 of the 57
Revised Code for purposes of the grant program.58

       (B) "Eligible project" means the rehabilitation, renovation, 59
improvement, or replacement of a household sewage treatment 60
system.61

       (C) "Grant program" means the grant program established in 62
sections 3718.30 and 3718.35 to 3718.37 of the Revised Code and 63
rules adopted under section 3718.36 of the Revised Code.64

       (D) "Revolving loan program" means the loan program 65
established in sections 3718.30 to 3718.34 of the Revised Code and 66
rules adopted under section 3718.32 of the Revised Code.67

       Sec. 3718.31. There is hereby created in the state treasury 68
the household sewage treatment system revolving loan fund 69
consisting of money appropriated or transferred to it and any 70
grants, gifts, or contributions of money received for deposit to 71
the credit of the fund.72

       The director of health shall use money in the fund for the 73
purpose of making loans under section 3718.33 of the Revised Code. 74
Interest income and income from the investment of money in the 75
fund shall be credited to the fund.76

       Sec. 3718.32. The director of health shall adopt rules in 77
accordance with Chapter 119. of the Revised Code that the director 78
determines are necessary for the implementation of the revolving 79
loan program. The rules, at a minimum, shall establish all of the 80
following:81

       (A) Guidelines for determining if a person qualifies as a 82
person with a failing household sewage treatment system;83

       (B) Interest rates of only three and five per cent for loans 84
that are made under the revolving loan program. In addition, the 85
rules shall require that an eligible person who has an annual 86
income equal to or less than two hundred per cent of the federal 87
poverty level receive a loan with an interest rate of three per 88
cent and an eligible person who has an annual income greater than 89
two hundred per cent of the federal poverty level receive a loan 90
with an interest rate of five per cent.91

       (C) Procedures and requirements in accordance with which an 92
eligible person who receives a loan may choose to have the 93
repayment of the loan assessed as a part of the person's real 94
property taxes. In addition, the rules shall require the director 95
to certify to the applicable county auditor the amount of the 96
repayment of a loan that is to be so assessed for purposes of 97
placement on the general tax list and duplicate compiled in 98
accordance with section 319.28 of the Revised Code.99

       (D) Procedures and requirements in accordance with which a 100
board of health must determine the allowable estimated cost of an 101
eligible project. The rules shall require that the allowable 102
estimated cost be equal to the difference between the estimated 103
cost of an eligible project that complies with the rules adopted 104
by the public health council under section 3718.02 of the Revised 105
Code that took effect on January 1, 2007, and the estimated cost 106
of an eligible project that would have complied with the rules 107
adopted by the council that were in effect prior to January 1, 108
2007, and were codified in Chapter 3701-29 of the Administrative 109
Code.110

       (E) Procedures by which a board of health must notify the 111
director of the board's determination of the allowable estimated 112
cost of an eligible project in accordance with the rules adopted 113
under division (D) of this section.114

       (F) As used in this section, "federal poverty level" has the 115
same meaning as in section 3718.36 of the Revised Code.116

       Sec. 3718.33. (A) The director of health may lend money in 117
the household sewage treatment system revolving loan fund to an 118
eligible person for the purpose of paying the allowable estimated 119
cost of an eligible project. Loans shall be made under this 120
section in accordance with the procedures and requirements 121
established in rules adopted under section 3718.32 of the Revised 122
Code and only if the director determines that all of the following 123
apply:124

       (1) The project is an eligible project.125

       (2) The repayment of the loan will be adequately secured by a 126
mortgage, lien, assignment, or pledge at a level of priority that 127
the director requires.128

       (3) The amount of the loan does not exceed the allowable 129
estimated cost of the project as determined by the applicable 130
board of health in accordance with the rules adopted under section 131
3718.32 of the Revised Code.132

       The interest rate for a loan that is made under this section 133
shall not exceed five per cent as established in rules adopted 134
under section 3718.32 of the Revised Code.135

       (B) The director may take any actions that are necessary or 136
appropriate with respect to a loan that is made under this 137
section, including facilitating the collection of amounts due on a 138
loan.139

       Sec. 3718.34. All money that is received by the state from 140
the repayment of loans that are made from the household sewage 141
treatment system revolving loan fund, including interest, fees, 142
and charges associated with such loans, shall be deposited in the 143
state treasury to the credit of the fund.144

       Sec. 3718.35. There is hereby created in the state treasury 145
the household sewage treatment system grant fund consisting of 146
money appropriated or transferred to it and any grants, gifts, or 147
contributions of money received for deposit to the credit of the 148
fund.149

       The director of health shall use money in the fund for the 150
purpose of making grants under section 3718.37 of the Revised 151
Code. Interest income and income from the investment of money in 152
the fund shall be credited to the fund.153

       Sec. 3718.36. The director of health shall adopt rules in 154
accordance with Chapter 119. of the Revised Code that the director 155
determines are necessary for the implementation of the grant 156
program. The rules, at a minimum, shall establish all of the 157
following:158

       (A) Guidelines for determining if a person qualifies as a 159
person with a failing household sewage treatment system;160

       (B) A requirement that an eligible person be sixty-five years 161
of age or older or have an annual income that is equal to or less 162
than one hundred fifty per cent of the federal poverty level in 163
order to qualify for a grant;164

       (C) Procedures and requirements governing applications for 165
grants;166

       (D) Procedures and requirements governing the awarding of 167
grants;168

       (E) Procedures and requirements in accordance with which a 169
board of health must determine the allowable estimated cost of an 170
eligible project. The rules shall require that the allowable 171
estimated cost be equal to the difference in the estimated cost of 172
an eligible project that complies with the rules adopted by the 173
public health council under section 3718.02 of the Revised Code 174
that took effect on January 1, 2007, and the estimated cost of an 175
eligible project that would have complied with the rules adopted 176
by the council that were in effect prior to January 1, 2007, and 177
were codified in Chapter 3701-29 of the Administrative Code.178

       (F) Procedures by which a board of health must notify the 179
director of the board's determination of the allowable estimated 180
cost of an eligible project in accordance with the rules adopted 181
under division (E) of this section.182

       (G) As used in this section, "federal poverty level" means 183
the income level represented by the poverty guidelines as revised 184
annually by the United States department of health and human 185
services in accordance with section 673(2) of the "Omnibus 186
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as 187
amended, for a family size equal to the size of the family of the 188
person whose income is being determined.189

       Sec. 3718.37. The director of health may grant money in the 190
household sewage treatment system grant fund to an eligible person 191
for the purpose of paying the allowable estimated cost of an 192
eligible project. Grants shall be made under this section in 193
accordance with the procedures and requirements established in 194
rules adopted under section 3718.36 of the Revised Code and only 195
if the director determines that both of the following apply:196

       (A) The project is an eligible project.197

       (B) The amount of the grant does not exceed the allowable 198
estimated cost of the project as determined by the applicable 199
board of health in accordance with rules adopted under section 200
3718.36 of the Revised Code.201

       Sec. 3718.38. (A) Notwithstanding any provision of this 202
chapter or rules adopted under it to the contrary, a person who is 203
notified by a board of health that the person must replace the 204
person's existing household sewage treatment system with a new 205
household sewage treatment system for the purpose of complying 206
with the rules adopted under section 3718.02 of the Revised Code 207
may request the board of health instead to prescribe and authorize 208
a temporary improvement of the existing system if the person is or 209
has been notified by a state agency or a political subdivision 210
that the person will be required to connect the person's premises 211
to a sewerage system, as defined in section 6111.01 of the Revised 212
Code, within ten years after receipt of the connection notice.213

       (B) If a board of health receives a request from a person who 214
meets the requirements established in division (A) of this 215
section, the board shall prescribe a temporary improvement of the 216
person's existing household sewage treatment system. The cost of 217
the temporary improvement shall not exceed fifteen per cent of the 218
person's estimated cost to install a new household sewage 219
treatment system that complies with the rules adopted under 220
section 3718.02 of the Revised Code.221

       Section 2. That existing section 319.281 of the Revised Code 222
is hereby repealed.223

       Section 3. Not later than thirty days after the effective 224
date of this act, the Director of Budget and Management shall 225
transfer $10,000,000 cash from the General Revenue Fund to the 226
Household Sewage Treatment System Revolving Loan Fund (Fund XXX) 227
created in section 3718.31 of the Revised Code, as enacted by this 228
act. Any moneys transferred are hereby appropriated.229

       Section 4. Not later than thirty days after the effective 230
date of this act, the Director of Budget and Management shall 231
transfer $5,000,000 cash for fiscal year 2008, and $5,000,000 cash 232
for fiscal year 2009, from the General Revenue Fund to the 233
Household Sewage Treatment System Grant Fund (Fund XXX) created in 234
section 3718.35 of the Revised Code, as enacted by this act. Any 235
moneys transferred are hereby appropriated.236

       Section 5. On and after the effective date of this act, a 237
board of health shall not require the rehabilitation, renovation, 238
improvement, or replacement of a household sewage treatment system 239
that is in existence on the effective date of this act pursuant to 240
rules adopted by the Public Health Council under section 3718.02 241
of the Revised Code until the effective date of the rules that are 242
required to be adopted under sections 3718.32 and 3718.36 of the 243
Revised Code, as enacted by this act.244

       Section 6.  This act is hereby declared to be an emergency 245
measure necessary for the immediate preservation of the public 246
peace, health, and safety. The reason for such necessity is that 247
the delay in the application of the rules adopted by the Public 248
Health Council under Chapter 3718. of the Revised Code related to 249
the rehabilitation, renovation, improvement, or replacement of an 250
existing household sewage treatment system is necessary to provide 251
additional time for the citizens of this state to prepare for 252
compliance with those rules and that without such a delay the 253
citizens of this state will be subject to an undue economic 254
burden. Therefore, this act shall go into immediate effect.255