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S.27

AN ACT RELATING TO INCREASING THE TECHNOLOGIES THAT MAY BE USED IN THE STATE FOR ON-SITE DISPOSAL OF WASTEWATER

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 10 V.S.A. chapter 64 is added to read:

CHAPTER 64. SMALL-SCALE WATER SUPPLY

AND WASTEWATER PERMIT

§ 1971. PURPOSE

It is the purpose of this chapter to:

(1) establish a comprehensive program to regulate the construction, replacement, modification, and operation of potable water supplies and wastewater systems in the state in order to protect human health and the environment;

(2) eliminate duplicative or unnecessary permitting requirements through the consolidation of existing authorities and the use of general permits and permits by rule;

(3) allow the use of alternative, innovative, and experimental technologies for the treatment and disposal of wastewater in the appropriate circumstances;

(4) protect the investment of homeowners through a flexible remediation process for failed potable water supplies and wastewater systems;

(5) increase reliance on and the accountability of the private sector for the design and installation of potable water supplies and wastewater systems, through licensing and enforcement; and

(6) allow delegation of the permitting program created by this chapter to capable municipalities.

§ 1972. DEFINITIONS

For the purposes of this chapter:

(1) "Agency" means the agency of natural resources.

(2) "Campground" means any lot of land occupied by more than three automobile trailers, campers, recreational vehicles, tent sites, or temporary shelters for a brief period of time for vacation or recreation purposes, whether or not the operation is commercial or operated for no charge with no services. This definition shall not include primitive or wilderness camping areas unless the secretary determines that a specific area is likely to create a health hazard, public nuisance, or source of pollution.

(3) "Failed supply" means a potable water supply: that is contaminated so that it is rendered not potable; or that is providing an insufficient quantity of water to maintain the permitted use of the building or structure or, if unpermitted, to maintain the usual and customary uses of the building or structure; or where the source, treatment, or conveyance equipment used to provide potable water is broken or inadequate. Notwithstanding the provisions of this subdivision, a potable water supply shall not be a failed supply if these effects can be and are remedied solely by minor repairs, including the repair of a broken pipe leading from a building or structure to a well.

(4)(A) "Failed system" means a wastewater system that is functioning in a manner:

(i) that allows wastewater to be exposed to the open air, pool on the surface of the ground, discharge directly to surface water, or back up into a building or structure, unless in any of these instances the approved design of the system specifically requires the system to function in such a manner; or

(ii) so that a potable water supply is contaminated and rendered not potable; or

(iii) that presents a threat to human health.

(B) Notwithstanding the provisions of subdivision (A) of this subdivision (4), a system shall not be a failed system if these effects can be and are remedied solely by minor repairs, including the repair of a broken pipe leading from a structure to the septic tank, replacement of a cracked or broken septic tank, or replacement of a broken pump.

(5) "Potable water supply" means the source, treatment, and conveyance

equipment used to provide water used or intended to be used for human consumption, including drinking, washing, bathing, the preparation of food, or laundering. This definition does not include any internal piping or plumbing, except for mechanical systems such as pump stations and emergency storage tanks, which are located inside a building or structure and which are integral to the operation of a potable water system. This definition also does not include a potable water supply that is subject to regulation under chapter 56 of this title.

(6) "Professional engineer" means an engineer licensed in good standing by the board of professional engineering under chapter 20 of Title 26.

(7) "Secretary" means the secretary of the agency of natural resources or a duly authorized representative of the secretary. A duly authorized representative of the secretary includes a municipality that has requested delegation in writing and has been delegated the authority to implement provisions of this chapter in lieu of the secretary.

(8) "Subdivide" means to divide land by sale, gift, lease, mortgage foreclosure, court-ordered partition, or filing of a plat, plan, or deed in the town records where the act of division creates one or more lots. Subdivision shall be deemed to have occurred on the conveyance of the first lot or the filing of a plat, plan, or deed in the town records, whichever first occurs.

(9) "Wastewater system" means any piping, pumping, treatment, or disposal system used for the conveyance and treatment of sanitary waste or used water, including, but not limited to, carriage water, shower and wash water, and process wastewater. This definition does not include any internal piping or plumbing, except for mechanical systems such as pump stations and emergency storage tanks, which are located inside a building or structure and which are integral to the operation of a wastewater system. This definition also does not include wastewater systems that are used exclusively for the treatment and disposal of animal manure. In this chapter, "wastewater system" refers to a soil-based system of less than 6,500 gallons per day, or a wastewater system of any size that is connected to a sewerage system.

§ 1973. PERMITS

(a) Except as provided in this section and sections 1974 and 1978 of this title, a person who has not first obtained a permit from the secretary shall not:

(1) subdivide land;

(2) create or modify a campground in a manner that affects a potable water supply or wastewater system;

(3) construct, replace, or modify a potable water supply or wastewater system;

(4) construct, replace, modify, or operate a failed supply or failed system;

(5) construct or modify a building or structure in a manner which requires construction, replacement, or modification of a potable water supply or wastewater system;

(6) make a new or modified connection to an existing potable water supply or wastewater system; or

(7) change the use of a building or structure in a way that increases the design flows or modifies other operational requirements of a potable water supply or wastewater system.

(b) Application for a permit shall be made on a form prescribed by the secretary. The application shall be supported by such documents and information that the secretary, by rule, deems necessary for proper application review and the issuance of a permit.

(c) When the construction, replacement, or modification of a potable water supply or wastewater system that has been permitted, or was exempt from permitting requirements, is required because the supply or system has become a failed supply or system, the secretary may issue a permit that includes variance provisions if the supply or system cannot be constructed, replaced, or modified so that it is in full compliance with the rules adopted under section 1978 of this title. When approving a variance under this subsection, the secretary shall consider the cost of the construction, replacement, or modification of the system in addition to the potential impacts on human health and the environment. In no event shall a permit be issued under this subsection if the supply or system would continue to meet the definition of a failed supply or failed system.

(d) No permit shall be issued by the secretary unless the secretary receives a statement from a licensed designer certifying that, to the best of his or her knowledge and belief and in the exercise of his or her professional judgment, the design included in an application for a permit complies with the rules.

(e) No permit issued by the secretary shall be valid after completion of construction of the potable water supply and wastewater system until the secretary receives a statement from a licensed designer or installer certifying that, to the best of his or her knowledge and belief and in the exercise of his or her professional judgment, the potable water supply and wastewater system was installed in accordance with the permitted design and was properly tested and successfully met those performance tests.

(f) The secretary shall give deference to a certification by a licensed designer with respect to the engineering design or judgment exercised by the designer in order to minimize agency review of certified designs. Nothing in this section shall limit the responsibility of the licensed designer to comply with all standards and rules, or the authority of the secretary to review and comment on design aspects of an application or to enforce agency rules with respect to the design or the design certification.

(g) If there is a dispute concerning the design prepared by a professional engineer or the judgment exercised by a professional engineer, the professional engineer may request that the disputed issues be reviewed by a licensed professional engineer employed or retained by the secretary. The secretary shall grant all such requests for review.

(h) All permits required under this section, all designer and installer statements required under this section, and all documents required by the rules adopted under this chapter to be filed in the town records shall be properly indexed and recorded in the land records pursuant to 24 V.S.A. §§ 1154 and 1161.

§ 1974. SINGLE-FAMILY RESIDENCES ON THEIR OWN LOTS

(a) Notwithstanding any other requirements of this chapter, the provisions of this section shall apply to a single-family residence on its own lot.

(b)(1) A subdivided lot containing only one single-family residence which required a subdivision permit but did not have one, or which had a subdivision permit but was not in compliance with its permit, is exempt from the permitting requirements of this chapter, provided that the lot was in existence as of January 1, 1999, and that the residence and its associated potable water supply and wastewater system were substantially constructed as of January 1, 1999. This exemption shall terminate:

(A) If any of the following occur after January 1, 1999:

(i) the wastewater system fails;

(ii) the lot is subdivided;

(iii) there is a significant modification of the potable water supply or wastewater system;

(iv) there is a significant modification of the residence that would increase design flows; or

(v) there is a change in use of the residence so that it is no longer solely a single-family residence; or

(B) If the potable water supply serving the residence fails at any time after the effective date of the rules adopted under section 1978 of this title.

(2) If a subdivision permit had been issued for the lot prior to January 1, 1999, the conditions of that permit concerning actions required to be taken after January 1, 1999, shall remain in effect, including conditions concerning operation and maintenance and transfer of ownership.

(3) For the purposes of this subsection, a wastewater disposal system has failed when the system is functioning in a manner:

(A) that allows wastewater to be exposed to the open air, pool on the surface of the ground, discharge directly to surface water, or back up into a building or structure, unless the approved design of the system specifically requires the system to function in such a manner;

(B) so that a potable water supply is contaminated or rendered not potable;

(C) that presents an imminent hazard to human health; or

(D) that presents a serious threat to the environment.

(4) For the purposes of this subsection, permits with variance provisions, as described in subsection 1973(c) of this title, may be issued for:

(A) the construction, replacement, or modification of failed supplies

and failed systems; and

(B) the upgrading of a potable water supply or wastewater system, provided that there is no increase in the design flow.

(5) If a seller of real estate represents that the property is subject to the exemption described in this subsection, the seller shall provide the buyer with affidavits that the lot, residence, potable water supply, and wastewater system are in compliance with the requirements of this subsection. All required affidavits shall be properly indexed and recorded by the buyer in the land records pursuant to 24 V.S.A. §§ 1154 and 1161. The seller shall be identified as the grantor and the buyer as the grantee.

(6) If a residence is exempt under this subsection, none of the other exemptions listed in this section shall apply.

(c) A single-family residence on its own lot and its associated potable water supply and wastewater system is exempt from the permitting requirements of this chapter, provided that the lot on which the residence is located was in existence as of July 1, 2001, and was exempt from the subdivision permitting requirements that existed on June 30, 2001. This exemption shall remain in effect unless and until:

(1) the lot is subdivided and the resulting lots are not exempt under the applicable rules in existence at the time of subdivision; or

(2) any action for which a permit is required under this chapter occurs at least one year after the effective date of the nonemergency rules adopted under section 1978 of this title.

(d) A permit shall not be required for the addition of one or more bedrooms to a single-family residence on its own lot when:

(1) the addition of bedrooms is accomplished solely through the modification of existing space within the residence; and

(2) the exterior of the residence is not expanded horizontally.

(e) A permit is not required for the addition of one or more bedrooms or any other attached exterior horizontal expansion to a single-family residence on its own lot that was exempt from the subdivision permitting requirements that were in existence until one year after the effective date of the nonemergency rules adopted under section 1978 of this title, provided that:

(1) a fully complying replacement area has been identified by a licensed designer and a diagram identifying the location of that area is certified by the designer and filed in the land records, and

(2) no other action for which a permit is required under this chapter occurs after one year after the effective date of the nonemergency rules adopted under section 1978 of this title.

(f) Notwithstanding the language of subsections (d) and (e) of this section, if the residence has been issued a permit under this chapter, the residence shall continue to comply with that permit, unless and until the permit is amended.

(g) For a single-family residence on its own lot that was exempt from the permitting requirements under subsection (c) of this section, a permit with variances may be issued authorizing the upgrading of a potable water supply or wastewater system, provided there is no increase in design flow.

§ 1975. DESIGNER AND INSTALLER LICENSES

(a) The secretary shall establish and implement a process to license and periodically renew the licenses of designers and installers of potable water supplies or wastewater systems, establish different classes of licensing for different potable water supplies and wastewater systems, and allow individuals to be licensed in various categories. If requested, the secretary shall allow an applicant for an installers license to take the licensing test orally or by demonstration.

(b) No person shall design or install a potable water supply or wastewater system that requires a permit under this chapter without first obtaining a designer or installer license, as applicable, from the secretary, except:

(1) a professional engineer who is licensed in Vermont shall be deemed to have a valid designer’s license under this chapter, provided that:

(A) the engineer is practicing within the scope of his or her engineering specialty; and

(B) the engineer:

(i) has satisfactorily completed a college-level soils identification course with specific instruction in the areas of soils morphology, genesis, texture, permeability, color, and redoximorphic features; or

(ii) has passed a soils identification test administered by the secretary; or

(iii) retains one or more licensed designers who have taken the course specified in this subdivision or passed the soils identification test, whenever performing work regulated under this chapter;

(2) a well driller who is licensed in accordance with chapter 48 of this title shall be deemed to have a valid installer’s license under this chapter so long as he or she is operating within the scope of his or her well driller’s license; and

(3) the owner of an owner-occupied single-family residence or a single-family secondary residence used primarily by the owner may install a wastewater system at that single-family residence or second home in accordance with plans prepared by a licensed designer without first obtaining an installer license.

(c) No person shall process permit applications for a potable water supply or wastewater system that he or she designed or installed.

(d) The secretary may review, on a random basis, or in response to a complaint, or on his or her own motion, the testing procedures employed by a licensed designer, the systems designed by a licensed designer, the designs approved or recommended for approval by a licensed designer, the procedures used by a licensed installer, and any work associated with the performance of these tasks.

(e) After a hearing conducted under chapter 25 of Title 3, the secretary may suspend, revoke, or impose conditions on a designer or installer license, except for one held by a professional engineer or a licensed well driller. This proceeding may be initiated on the secretary’s own motion or upon a written request which contains facts or reasons supporting the request for imposing conditions, for suspension, or for revocation. Cause for imposing conditions, suspension, or revocation shall be conduct specified under 3 V.S.A. § 129a as constituting unprofessional conduct by a licensee.

(f) If the secretary finds that a statement by a licensed designer or installer submitted under this chapter was incorrect, the person who signed the statement may be subject to penalties and required to take all actions necessary to remediate the situation in accordance with the provisions of chapters 201 and 211 of this title.

(g) In response to a complaint, or on his or her own motion, the secretary shall refer deficiencies in design or installation performed under this chapter by a professional engineer to the board of professional engineering for further investigation and potential disciplinary action.

§ 1976. DELEGATION OF AUTHORITY TO MUNICIPALITIES

(a)(1) If a municipality submits a written request for delegation of this chapter, the secretary shall delegate authority to the municipality to implement and administer provisions of this chapter, the rules adopted under this chapter, and the enforcement provisions of chapter 201 of this title relating to this chapter, provided that the secretary is satisfied that the municipality:

(A) has established a process for accepting, reviewing, and processing applications and issuing permits, which shall adhere to the rules established by the secretary for potable water supplies and wastewater systems, including permits, by rule, for sewerage connections;

(B) has hired, appointed, or retained on contract, or will hire, appoint, or retain on contract, a licensed designer to perform technical work which must by done by a municipality under this section to grant permits;

(C) will take timely and appropriate enforcement actions pursuant to the authority of chapter 201 of this title;

(D) commits to reporting annually to the secretary on a form and date determined by the secretary; and

(E) will comply with all other requirements of the rules adopted under section 1978 of this title.

(2) Notwithstanding the provisions of this subsection, there shall be no delegation of this section or of section 1975 or 1978 of this title.

(b) Two years after the effective date of the nonemergency rules adopted under section 1978 of this title, those provisions of municipal ordinances and zoning bylaws that regulate potable water supplies and wastewater systems are superseded by the provisions of this chapter and the rules adopted under this chapter. Those provisions of existing ordinances and bylaws and any future ordinances or bylaws shall not be superseded, however, to the extent that they apply to potable water supplies and wastewater systems that are exempt from the permitting requirements of this chapter and to the extent that they establish procedural requirements that are consistent with this chapter and the rules adopted under this chapter.

(c) Notwithstanding 24 V.S.A. § 3633(d), municipal ordinances relating to sewage systems, which ordinances were approved before July 1984 under 18 V.S.A. § 613 by the board of health, and those approved before July 1984 by the commissioner of health shall remain in effect unless superseded.

(d) A municipality may assess fees in an amount sufficient to support municipal services provided under this section.

(e) Notwithstanding the fact that local ordinances and bylaws may have been superseded by this chapter, a permit issued under those ordinances shall remain in effect, unless and until superseded by another permit issued pursuant to the provisions of this chapter.

§ 1977. APPEALS; STAYS

(a) A person aggrieved by a decision, other than an enforcement decision, of the secretary or of a delegated municipality under this chapter, may appeal to the water resources board within 30 days of the date of issuance of the decision. An appeal before the water resources board shall be heard de novo. Appeal from a decision of the water resources board shall be to the supreme court within 30 days of the date of issuance of the decision.

(b) No decision of the secretary, or of a delegated municipality, shall be automatically stayed by the filing of an appeal; however, the board, on request of a party to the appeal, may issue a stay containing terms and conditions it deems just.

§ 1978. RULES

(a) The secretary shall adopt rules, in accordance with chapter 25 of Title 3, necessary for the administration of this chapter. These rules shall include, but are not limited to, the following:

(1) performance standards for potable water supplies and wastewater systems;

(2) design flow standards for potable water supplies and wastewater systems;

(3) design requirements, including isolation distances;

(4) monitoring and reporting requirements;

(5) soils and hydrogeologic requirements;

(6) operation and maintenance requirements appropriate to the complexity of the system;

(7) requirements for engineering plans and specifications for potable water supplies and wastewater systems;

(8) provisions for the acceptance and approval of alternative technologies, based on performance evaluations provided by qualified organizations with expertise in wastewater systems, including the New England Interstate Water Pollution Control Commission;

(9) provisions allowing the use of a variety of alternative or innovative technologies, including intermittent sand filters, recirculating sand filters, waterless toilets and greywater disposal systems, and constructed wetlands, that provide an adequate degree of protection of human health and the environment. When alternative or innovative technologies are approved, the rules shall not require either a bond or the immediate construction of a duplicate wastewater system for those alternative or innovative technologies;

(10) provisions allowing for appropriate reductions in leachfield size, depth to the seasonal high water table, or other site parameters when alternative or innovative technologies are used, and when those technologies, combined with the reductions, provide an adequate degree of protection of human health and the environment;

(11) provisions allowing for experimental systems;

(12) provisions allowing for the use of holding tanks when permitted or exempt existing wastewater systems have failed or are expected to fail, provided no other cost-feasible alternative is available, or for new publicly owned buildings with daily flows that do not exceed 600 gallons per day, provided no other cost feasible alternative is available;

(13) provisions regarding the licensing of certain classes of designers and installers;

(14) provisions regarding the delegation of authority to and removal of authority from a municipality to administer this chapter;

(15) provisions regarding the permitting by rule of certain types of potable water supplies or wastewater systems, including connections to sewerage systems; and

(16) other requirements necessary to protect human health and the environment.

(b) The secretary, by rule, may establish permitting exemptions upon a determination that those exemptions are consistent with the purposes of this chapter, and are necessary for the appropriate implementation of this chapter.

(c) The secretary shall adopt rules under this section for the acceptance and approval of a range of innovative and alternative wastewater disposal systems for use in situations where there is a failed wastewater system serving a legally existing single-family residence on its own lot, provided that the residence and the wastewater system were in existence as of July 1, 2001. Rules adopted under this subsection shall be adopted as emergency rules, shall be adopted by no later than August 1, 2001, and shall remain in effect until amended through the normal rulemaking process, but also may be further amended by additional emergency rules that allow use for these purposes of additional innovative and alternative wastewater disposal system technologies. In this adoption process, the secretary need not believe that there exists an imminent peril to public health, safety, and welfare. Review of these emergency rules by the legislative committee on administrative rules shall not include the issue of whether or not the rules are necessitated by an imminent peril to public health, safety, or welfare.

(d) The secretary shall first adopt nonemergency rules under this section no later than February 1, 2002. The provisions of the rules that relate to subdivisions (a)(8) through (11) of this section shall not take effect in any municipality until one year after the date of first adoption of the nonemergency rules, unless the municipality has affirmatively updated its town plan, zoning and subdivision requirements, after considering this chapter.

(e) The secretary shall periodically review and, if necessary, revise the rules adopted under this chapter to ensure that the technical standards remain current with the known and proven technologies regarding potable water supplies and wastewater systems.

Sec. 2. 3 V.S.A. § 2822(j)(3) and (4) are amended to read:

(3) *[For subdivision permit issued under 18 V.S.A. chapter 23:

(A) per lot]* *[$175.00

(B) deferral of permit]* *[$60.00

(C) homestead exemption]* *[$60.00 per application

(D) permit amendment]* *[$60.00 per application

(E) remediation certificate]* *[$175.00 per certificate

(F) time-of-sale remediation]* *[$30.00 per report

]*

(4) For potable water supply and wastewater permits issued under *[10 V.S.A. chapter 61; mobile home park permits issued under 10 V.S.A. chapter 153; campground permits issued under 3 V.S.A. section 2873 and under]* 10 V.S.A. chapter 64:

* * *

Sec. 3. 3 V.S.A. § 2822(j)(25) and (26) are added to read:

(25) For designer and installer licenses issued under 10 V.S.A. chapter 64:

(A) Designers:

(i) original application $100.00

(ii) renewal application $50.00 per year

(B) Installers:

(i) original application $50.00

(ii) renewal application $25.00 per year

(26) For provisional designer and installer licenses:

(A) Annual registration fee $25.00

(B) Site technicians and well drillers who are licensed by the secretary and have paid all required fees shall not be required to pay an annual registration fee in order to have a valid provisional license.

Sec. 3a. 10 V.S.A. § 1402 is amended to read:

§ 1402. DENIAL AND REVOCATION OF LICENSE

A license may be denied, suspended, or revoked, or the renewal thereof denied by the commissioner on the commissioner’s own investigation and motion or upon written complaint of others, if after notice and opportunity for hearing the commissioner finds that the applicant or license holder has*[:

(1) made false statement in the application for a license or an application for renewal;

(2) obtained a license through fraud or misrepresentation;

(3) refused to complete and file any report required by this subchapter;

(4) insufficient ability to act as a well contractor; or

(5) violated rules adopted by the department to implement provisions of this subchapter]* committed conduct specified under 3 V.S.A. § 129a as constituting unprofessional conduct by a licensee.

* * * Mobile Home Park Permits * * *

Sec. 4. 10 V.S.A. § 6205(b) is amended to read:

(b) The superior court for the county in which a violation of this chapter occurs shall have jurisdiction, on application *[by the agency in the case of violations of sections 6231-6235 of this title and]* by the department in the case of violations of sections 6236-6243 of this title, to enjoin and restrain the violation, but any election *[by the agency or]* by the department to proceed under this subsection shall not limit or restrict the authority of the state to prosecute for the offense under subsection (a) of this section.

Sec. 5. 10 V.S.A. § 6231 is amended to read:

§ 6231. *[PERMIT REQUIRED;]* RULES

(a) *[No person shall establish or maintain a mobile home park, as defined in section 6201 of this title except pursuant to a permit issued by the agency. A person desiring to establish or expand a mobile home park, including extensions or expansions to water and sewage systems, shall make written application to the agency on forms furnished by the agency, and shall submit such supplementary data and information as the agency requires, including a site plan. The agency may by regulation requires payment of fees for a permit. The agency shall adopt rules to carry the provisions of sections 6231-6235 of this title into effect.]*

* * *

* * * Enforcement * * *

Sec. 6. 10 V.S.A. § 8003(a) is amended to read:

(a) The secretary may take action under this chapter to enforce the following statutes, and any related rules, permits, assurances, or orders:

(1) *[3 V.S.A. chapter 51, relating to the certification of site technicians, and trailer camps and tent sites;

]*

* * *

(9) 10 V.S.A. chapter *[61]* 64, relating to small-scale potable water *[supply]* supplies and wastewater systems;

* * *

(11) *[10 V.S.A. chapter 153, relating to mobile home parks;

]*

* * *

(14) *[18 V.S.A. chapter 23, relating to subdivisions;

]*

* * *

Sec. 7. 10 V.S.A. § 8010(e) is amended to read:

(e) Penalties assessed under this section shall be deposited in the general fund, except for those penalties which are assessed as a result of a municipality’s enforcement action under chapter 64 of this title, in which case the municipality involved shall receive the penalty monies.

* * * Property Transfer * * *

Sec. 8. 24 V.S.A. § 1154(a) is amended to read:

(a) A town clerk shall record in the land records, at length or by accurate, legible photocopy, in books to be furnished by the town:

(1) deeds*[,]*;

(2) instruments or evidences respecting real estate*[,]*;

(3) writes of execution, other writs or the substance thereof, and the returns thereon*[,]*;

(4) hazardous waste site information and hazardous waste storage, treatment and disposal certifications established under 10 V.S.A. chapter 159*[,]*;

(5) underground storage tank information under 10 V.S.A. chapter 59*[,]* ;

(6) municipal land use permits (as defined in section 4303 of this title) or notices of municipal land use permits as provided for in subsection (c) of this section, notices of violation of ordinances or bylaws relating to municipal land use, and notices of violation of municipal land use permits*[,]*;

(7) denials of municipal land use permits*[,]*;

(8) permits, designer statements, installer statements, and other documents required to be filed by the provisions of 10 V.S.A chapter 64 and the rules adopted under that chapter;

(9) *[Other]* other instruments delivered to the town clerk for recording.

Sec. 9. 24 V.S.A. § 1161(b) is amended to read:

(b) For the purposes of this section, "transactions affecting title to real estate" shall include the instruments described in subsections 1154(a) and (b) of this title. Each owner of record title to the property at the time such and instrument is issued shall be listed as the grantor. The state of Vermont shall be listed as the grantee for instruments described in subdivisions 1154(a)(4) *[and]*, (5), and (8) of this title. The municipality issuing the instrument shall be listed as the grantee for instruments described in subdivision 1154(a)(6) of this title.

* * * Practice of Engineering by Licensed Designers and Installers * * *

Sec. 10. 26 V.S.A. § 1163(a) is amended to read:

(a) Persons exempt. Section 1162 of this title does not prohibit acts constituting the practice of engineering performed as a necessary part of the duties of:

(1) An officer or employee of the federal government.

(2) An officer or a full-time employee of the state.

(3) An officer or full-time employee of a municipality.

(4) *[A full-time employee of the Vermont association of conservation districts while performing work for the on-site sewage disposal program. ]* Certain classes of licensed potable water supply and wastewater system designers or installers, as designated by rule by the secretary of the agency of natural resources, who design or install supplies or systems with a design flow of up to 1,350 gallons per day and who are licensed under chapter 64 of Title 10.

* * *

Sec. 11. 26 V.S.A. § 1163(b) is amended to read:

(b) Other professions. Section 1162 of this title does not prohibit acts constituting the practice of any other legally recognized profession or occupation*[, including the activity of site technicians licensed by the agency of natural resources]*.

* * * Property Transfer * * *

Sec. 12. 32 V.S.A. § 9606(c) is amended to read:

(c) The property transfer return required under this section shall also contain a certificate in such form as the secretary of the agency of natural resources and the commissioner of taxes jointly shall prescribe and shall be signed under oath or affirmation by each of the parties or their legal representatives. The certificate shall indicate:

(1) whether the transfer is in compliance with or is exempt from regulations governing *[the subdivision of lands under section 1218 of Title 18]* potable water supplies and wastewater systems under chapter 64 of Title 10; and

(2) that the seller has advised the purchaser that local and state building regulations, zoning regulations, and *[subdivision regulations]* potable water supply and wastewater system requirements pertaining to the property may *[limit]* significantly limit the use of the property.

* * * Effective Dates and Repeals * * *

Sec. 13. EFFECTIVE DATE

Sec. 11 of this act, which repeals reference to site technicians, shall take effect 18 months after the effective date of rules adopted by the secretary under 10 V.S.A. § 1978 (governing designers’ licenses).

Sec. 14. REPEAL

(a) 3 V.S.A. § 2873(c) (trailer camps and tent sites), 10 V.S.A. §§ 746 (establishing on-site program), 747 (describing program), 748 (municipal participation), and 749 (annual report), 10 V.S.A. chapter 61 (water supply and wastewater permits), 10 V.S.A. §§ 1265a (holding tanks), 6201(5)(definition of agency), 6232 (site plan review), 6233 (issuance of permit; revocation; appeals), 6234 (bonuses for improved facilities and layout), 6235 (basic regulations), and 6255 (failed potable water supplies and failed wastewater systems), and 18 V.S.A. §§ 1218 (authorizing subdivision regulations) and 1221b (recording and filing) are repealed.

(b) 3 V.S.A. § 2827 (site technician certification) is repealed 30 months after the effective date of the rules adopted by the secretary under 10 V.S.A. § 1978 (governing designers’ licenses).

(c) 18 V.S.A. §§ 1218a (single lot subdivision), 1218b (exempt municipalities), 1218c (exempt municipalities with sewage ordinances), 1218d (exempt municipalities without sewage ordinances), and 1218e (sewer approval) are repealed two years after the effective date of rules adopted by the secretary under 10 V.S.A. § 1978.

* * * Transition and Implementation * * *

Sec. 15. TRANSITION AND IMPLEMENTATION

(a) Provisional designers’ licenses. A site technician operating within the scope of his or her legal authority shall be deemed to have a provisional designer’s license under 10 V.S.A. § 1978. A provisional license shall remain in effect until 30 months after the effective date of rules adopted under 10 V.S.A. § 1978, governing designers’ licenses.

(b) Provisional installers’ licenses. A person in the business of installing potable water supplies or wastewater systems that require a permit under chapter 64 of Title 10 shall be deemed to have a provisional installer’s license which shall remain in effect until 36 months after the effective date of rules adopted under 10 V.S.A. § 1978 governing installers’ licenses, provided that:

(1) prior to performing any installation work, the person notifies the secretary of the fact that he or she was installing potable water supplies or wastewater systems prior to July 1, 2001; and

(2) the person pays the specified annual registration fee.

(c) Effect of rules. Notwithstanding the repeal by this act of 3 V.S.A. § 2873(c), 10 V.S.A. chapter 61, and 18 V.S.A. § 1218, the existing rules regarding trailer camps, tent sites, water supply and wastewater permits, mobile home parks and subdivisions shall be deemed to be rules under 10 V.S.A. chapter 64, and shall remain in effect until the effective date of the non-emergency rules first adopted under that chapter.

(d) Existing permits. Notwithstanding the repeal by this act of 3 V.S.A. § 2873(c), 10 V.S.A. chapter 61, the mobile home park permitting requirements of 10 V.S.A. chapter 153, and 18 V.S.A. § 1218, permits regarding trailer camps, tent sites, potable water supplies, and wastewater systems, mobile home parks, and subdivisions shall remain in effect, except as otherwise provided in this act. These permits shall be deemed to be permits issued under 10 V.S.A. chapter 64, and may be amended by the secretary under that chapter.

(e) Rulemaking.

(1) The secretary of the agency of natural resources may commence rulemaking under this act prior to the effective date of all of the provisions of this act.

(2) A technical advisory committee is established for the purpose of advising the secretary of the agency of natural resources on how to revise, in accordance with the provisions of chapter 64 of Title 10, the existing technical standards which govern potable water supplies and wastewater systems regulated under chapter 64 of Title 10. The governor shall appoint the members of the committee and ensure that there is at least one representative of the following entities on the committee: professional engineers, site technicians, well drillers, hydrogeologists, town health officials, technical staff of the agency of natural resources, and technical staff of the department of health. Administrative support for the advisory committee shall be provided by the secretary of the agency of natural resources.

(3) The technical advisory committee shall provide quarterly reports, starting July 1, 2001, to the chairs of the house and senate committees on natural resources and energy. The quarterly reports shall include information on the following: the progress of development of rule revisions, drafts of the emergency and non-emergency rules to be adopted under chapter 64 of Title 10, the implementation of adopted rule revisions, the number of permit applications in the preceding quarter, and the number of permits granted and denied in the preceding quarter.

(4) The secretary of the agency of natural resources and the technical advisory committee shall consider all comments received from the designated legislators when determining what revisions to the rules should be made and when drafting the emergency and non-emergency rules.

(5) The representatives and senators who receive copies of the reports from the technical advisory committee shall provide input to the legislative committee on administrative rules with respect to whether or not the proposed emergency and non-emergency rules under chapter 64 of Title 10 are beyond the authority of the agency of natural resources, contrary to the intent of the legislature, or arbitrary.

(6) The technical advisory committee shall be dissolved, and the quarterly reporting requirements shall end, two and one half years after the effective date of the non-emergency rules adopted under chapter 64 of Title 10.

(f) Undeveloped lots.

(1) An undeveloped lot that was in existence as of July 1, 2001 and which was exempt from the subdivision permitting requirements that existed on June 30, 2001, and any undeveloped lot greater than ten acres in size created after June 30, 2001, but prior to the effective date of the nonemergency rules adopted under 10 V.S.A. § 1978, is exempt from the permitting requirements of 10 V.S.A. chapter 64. This exemption shall terminate:

(A) two years after the effective date of the nonemergency rules adopted under 10 V.S.A. § 1978 for undeveloped lots in existence as of July 1, 2001, if the lot remains undeveloped; or

(B) on the effective date of nonemergency rules adopted under 10 V.S.A. § 1978 for undeveloped lots greater than ten acres in size created after June 30, 2001, but before the effective date of the nonemergency rule, if the lot remains undeveloped; or

(C) whenever the lot is developed by the construction of a building or structure, other than only one single-family residence, the useful occupancy of which requires a potable water supply or wastewater system.

(2) For lots that have been developed by the construction of only one single-family residence, this exemption shall terminate when any action is taken for which a permit is required under 10 V.S.A. chapter 64, if that action is taken after the exemption termination dates established in subdivision (1) of this subsection.

(g) Notwithstanding the repeal of 10 V.S.A. chapter 61, the exemptions that were set forth in section 1954 of Title 10, with the exception of the exemption for single-family residences on their own lots, shall remain in effect. The exemptions shall terminate when and if any action for which a permit is required under chapter 64 of Title 10 occurs one year after the effective date of the nonemergency rules adopted under section 1978 of Title 10.

(h) The agency of natural resources shall provide municipal planning grants for the purpose of revising municipal plans and bylaws. These funds are to address the needs arising from the increase in land area that would be available for development as a result of adoption of rules allowing alternative technologies for on-site disposal of wastewater in Vermont.

Sec. 16. Sec. 13 of No. 46 of the Acts of the 1999 Session is amended to read:

Sec. 13. CURATIVE EFFECT OF ACT

(a) If there is compliance with the conditions of the permit exemption*[s]* described in subsection *[1218(d) of Title 18]* 1974(b) of Title 10, the failure to obtain a subdivision permit under *[section 1218]* chapter 64 of Title 10 and the failure to record such permit or comply with the requirements of such permit shall not constitute a violation that adversely affects the marketability of title under 27 V.S.A. chapter 5, subchapter 7.

(b) This section shall retroactively apply to these exempt properties.

Sec. 17. POSITIONS AND APPROPRIATION

(a) The establishment of two (2) new classified positions – one (1) environmental scientist and one (1) environmental engineer – is authorized in fiscal year 2002.

(b) There is hereby appropriated $125,000.00 from the environmental permit fund in fiscal year 2002 to support the positions described in subsection (a) of this section.

(c) There is hereby appropriated $250,000.00 in one-time general funds, in FY 2002, to the agency of natural resources to carry out activities required by subsection (h) of Sec. 15 of this act.