A bill to amend 1994 PA 451, entitled “Natural Resources And Environmental Protection Act,” by amending Section 4101 (MCL 324.4101) and by adding Section 4105b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4101. As used in this part:
(A) “DEPARTMENT” MEANS THE DEPARTMENT OF ENVIRONMENTAL QUALITY.
(B) “Governmental agencies” means local units of government, metropolitan districts, or other units of government or the officers of the units of government authorized to own, construct, or operate sewerage systems to serve the public.
(C) “LOCAL UNIT” MEANS A CITY, VILLAGE, OR TOWNSHIP.
(D) “Plans and specifications” means a true description or representation of the entire sewerage system and parts of a SEWERAGE system proposed or operated by a person as the same exists or is to be constructed, and also a full and fair statement of how the SEWERAGE system is to be operated.
(E) “Sewerage system” means a system of pipes and structures including pipes, channels, conduits, manholes, pumping stations, sewage or waste treatment works, diversion and regulatory devices, outfall structures, and appurtenances, collectively or severally, actually used or intended for use by the public for the purpose of collecting, conveying, transporting, treating, or otherwise handling sanitary sewage or other industrial liquid wastes that MAY adversely AFFECT the public health.
Sec. 4105B.
(1) An application for a construction permit under Section 4105 for a privately owned sewerage system that will serve 2 or more dwelling units shall include documentation that the governing body of the local unit where the sewerage system is proposed to be located has refused to own and accept responsibility for operating the sewerage system. Within 63 days after receiving a written request that the local unit own and accept responsibility for operating the sewerage system, the governing body shall notify the person making the request, in writing, whether the local unit refuses or agrees to own and accept responsibility for operating the sewerage system. If the governing body fails to provide notification within 63 days, the applicant for the construction permit shall include with the application a written statement to that effect and the governing body shall be considered to have refused to own and accept responsibility for operating the sewerage system.
(2) A construction permit for a privately owned sewerage system that will serve 2 or more dwelling units shall require as a condition of the permit that the developer or owner file with the Department security guaranteeing that the sewerage system will be constructed, maintained, and operated as required under this act, rules promulgated under this act, and the construction permit. The security shall be in a sum fixed by the Department based on the size, type, and complexity of the sewerage system. At the option of the Department, the security shall consist of 1 or more of the following:
B. A certified check
C. A performance bond executed by a surety company authorized to do business in this State.
D. An escrow agreement acceptable to the Department
E. An irrevocable Letter of Credit issued by a State or Federally regulated financial institution
(3) The Department may access the security under Subsection (2) to correct any deficiencies in the construction, operation, and maintenance of the sewerage system as required under this act, rules promulgated under this act, and the construction permit. If the Department accesses the security, the owner or operator of the sewerage system shall replenish the security to maintain the amount fixed by the Department under Subsection (2).
(4) The Department may reduce the amount of or eliminate the requirement for security under Subsections (2) and (3) after a 5-year period in which the sewerage system has been operated and maintained to the satisfaction of the Department.
(5) A construction permit for a privately owned sewerage system that will serve 2 or more dwelling units shall require as a condition of the permit that the owner of the sewerage system enter an agreement with the Department providing for the perpetual operation and maintenance of the sewerage system and record the agreement with the Register of Deeds for the county where the sewerage system will be located. The agreement shall provide that the owner or operator of the sewerage system has authority to assess properties served by the sewerage system fees for the costs of operation, maintenance, or repair of the sewerage system and that an unpaid fee is alien against the property against which the fee was assessed. The agreement shall run with the land and bind all subsequent owners and users of the sewerage system.
(6) Notwithstanding Section 3109, a local unit is not liable for a discharge from a privately owner sewerage system for which a construction permit was issued under this section.
(7) A person other that a local unit shall not acquire an existing sewerage system that serves 2 or more dwelling units unless the local unit where the sewerage system is located refuses to own and accept responsibility for operating the sewerage system. Before acquiring the sewerage system, the person shall request that the local unit instead acquire and accept responsibility for operating the sewerage system. The request shall be submitted in writing to the governing body of the local unit. Within 63 days after receiving the request, the governing body shall notify the person making the request, in writing, whether the local unit refuses or agrees to own and accept responsibility for operating the sewerage system. If the governing body fails to provide such notification within 63 days, the governing body shall be considered to have refused to own and accept responsibility for operating the sewerage system.