To amend section 319.281 and to enact sections 3718.30 to 3718.38 of the Revised Code to delay the application of the rules adopted under the Household and Small Sewage Treatment Systems Law that are related to the rehabilitation, renovation, improvement, or replacement of an existing household sewage treatment system, to establish the Household Sewage Treatment System Revolving Loan Program and the Household Sewage Treatment System Grant Program in the Department of Health to provide loans and grants to eligible persons for repairs to or upgrades of household sewage treatment systems, to make appropriations, and to declare an emergency.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) The project is an eligible project.

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

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

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

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

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

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

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

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

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

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

(C) Procedures and requirements governing applications for grants;

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

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

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

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

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

(A) The project is an eligible project.

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

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

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

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

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

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

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

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