S T A T E   O F   N E W   Y O R K
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                                 10445--A
 
                           I N  A S S E M B L Y
 
                              April 23, 2018
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on  Local  Governments  -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the town law, in relation to authorizing  towns  in  the
   Peconic  Bay  region  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. Paragraph (e) of subdivision 1 of section 64-e of the town
 law, as added by chapter 551 of the laws of 2015, is amended to read  as
 follows:
   (e)  "Water  quality improvement project" means: (1) wastewater treat-
 ment improvement projects; (2) non-point source  abatement  and  control
 program  projects developed pursuant to section eleven-b of the soil and
 water conservation districts law, title 14 of article 17 of the environ-
 mental conservation law, section  1455b  of  the  federal  coastal  zone
 management  act,  or article forty-two of the executive law; (3) aquatic
 habitat restoration projects; (4) pollution prevention projects[,  and];
 (5) the operation of the Peconic Bay National Estuary Program, as desig-
 nated  by  the  United States Environmental Protection Agency; AND (6) A
 SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM, PURSUANT TO SECTION  SIXTY-FOUR-
 EE  OF  THE  TOWN  LAW.    Such projects shall have as their purpose the
 improvement of existing water quality to meet  existing  specific  water
 quality  standards. Projects which have as a purpose to permit or accom-
 modate new growth shall not be included within this definition.
   § 2. The town law is amended by adding a new section 64-ee to read  as
 follows:
   § 64-EE. PECONIC BAY REGION SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM. 1.
 AS  USED  IN  THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "PECONIC BAY REGION" MEANS THE TOWNS OF EAST  HAMPTON,  RIVERHEAD,
 SHELTER ISLAND, SOUTHAMPTON AND SOUTHOLD.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15334-02-8
              

 A. 10445--A                         2
 
   (B)  "CESSPOOL" MEANS A DRYWELL THAT RECEIVES UNTREATED SANITARY WASTE
 CONTAINING HUMAN EXCRETA, WHICH SOMETIMES  HAS  AN  OPEN  BOTTOM  AND/OR
 PERFORATED SIDES.
   (C)  "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.
   (D) "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.
   (E)  "FUND"  MEANS THE COMMUNITY PRESERVATION FUND CREATED PURSUANT TO
 SUBDIVISION TWO OF SECTION SIXTY-FOUR-E OF THIS ARTICLE.
   2. THE TOWN BOARD OF ANY TOWN IN THE PECONIC BAY REGION MAY, BY  LOCAL
 LAW,  ESTABLISH A SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM USING A PORTION
 OF THE WATER QUALITY IMPROVEMENT MONIES FROM THE FUND, PURSUANT TO PARA-
 GRAPH (E) OF SUBDIVISION THREE OF SECTION SIXTY-FOUR-E OF THIS ARTICLE.
   3. SUCH PROGRAM MAY MAKE LOANS TO THE OWNERS OF REAL PROPERTY  LOCATED
 WITHIN  THE  TOWN TO FINANCE THE INSTALLATION OF SEPTIC SYSTEM PROJECTS.
 THE TOWN SHALL ESTABLISH PRIORITY AREAS WITHIN  THE  TOWN,  WHICH  WOULD
 RECEIVE  WATER  QUALITY AND PUBLIC HEALTH BENEFITS FROM THE INSTALLATION
 OF SEPTIC SYSTEM PROJECTS, FOR SUCH LOANS IN ORDER TO MAXIMIZE  ENVIRON-
 MENTAL AND PUBLIC HEALTH BENEFITS.
   4.  TO  BE  ELIGIBLE  FOR  A LOAN PURSUANT TO THIS SECTION, THE SEPTIC
 SYSTEM PROJECT SHALL BE LISTED AS AN APPROVED WATER QUALITY  IMPROVEMENT
 PROJECT  IN  THE  TOWN'S COMMUNITY PRESERVATION PROJECT PLAN PURSUANT TO
 SUBDIVISION SIX OF SECTION SIXTY-FOUR-E OF THIS ARTICLE AND BE  PROPOSED
 FOR  REAL  PROPERTY  LOCATED  WITHIN AN ESTABLISHED PRIORITY AREA OF THE
 TOWN.  MONIES FROM THE FUND MAY ONLY BE LOANED FOR PROJECTS  WHICH  HAVE
 BEEN  INCLUDED  IN SUCH PLAN AND SHALL NOT INCLUDE COSTS ASSOCIATED WITH
 ROUTINE MAINTENANCE SUCH AS A PUMP OUT OF A SEPTIC TANK.
   5. A 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 PROVIDED THAT:
   (A)  FOR  LOANS MADE TO AN OWNER OF REAL PROPERTY THAT IS A COMMERCIAL
 ENTITY, NOT-FOR-PROFIT ORGANIZATION, OR ENTITY OTHER THAN AN INDIVIDUAL,
 THE TOWN BOARD SHALL HAVE THE AUTHORITY BY LOCAL LAW TO IMPOSE  REQUIRE-
 MENTS  ON  THE  MAXIMUM  AMOUNT  THAT MAY BE BORROWED THROUGH SUCH LOAN,
 WHICH MAY CONSIDER FACTORS INCLUDING BUT NOT  LIMITED  TO  THE  PROPERTY
 VALUE,  EXPECTED  ENVIRONMENTAL  AND  WATER QUALITY BENEFIT AND EXISTING
 INDEBTEDNESS SECURED BY SUCH PROPERTY.
   (B) FOR LOANS MADE TO AN OWNER OF REAL PROPERTY WHO IS AN  INDIVIDUAL,
 THE  PRINCIPAL  AMOUNT  OF EACH SUCH LOAN, EXCLUDING INTEREST, SHALL NOT
 EXCEED THE LESSER OF TEN PERCENT OF THE APPRAISED REAL PROPERTY VALUE OR
 THE ACTUAL COST OF THE SEPTIC SYSTEM  PROJECT  INCLUDING  THE  COSTS  OF
 INSTALLATION, NECESSARY EQUIPMENT, MATERIALS, AND LABOR.
   (C)  NO SUCH LOAN SHALL BE MADE UNLESS SUCH SEPTIC SYSTEM PROJECT WILL
 SIGNIFICANTLY AND QUANTIFIABLY REDUCE ENVIRONMENTAL AND/OR PUBLIC HEALTH
 IMPACTS ASSOCIATED WITH EFFLUENT FROM A CESSPOOL OR SEPTIC  SYSTEM  FROM
 THE  PROPOSED  REAL PROPERTY SITE TO GROUNDWATER USED AS DRINKING WATER,
 OR A THREATENED OR AN IMPAIRED WATERBODY.

 A. 10445--A                         3
 
   6. EVERY LOAN MADE UNDER THE SEPTIC SYSTEM  REPLACEMENT  LOAN  PROGRAM
 SHALL  BE REPAID OVER A TERM NOT TO EXCEED TEN YEARS. THE TOWN SHALL SET
 A FIXED RATE OF INTEREST FOR THE REPAYMENT OF THE  PRINCIPAL  AMOUNT  OF
 EACH  LOAN  AT  THE TIME THE LOAN IS MADE PROVIDED THAT NO INTEREST RATE
 SHALL  EXCEED  TWO AND ONE-HALF PERCENT AND NO APPLICANT SHALL RECEIVE A
 LOAN MORE THAN ONCE IN ANY FIVE-YEAR PERIOD.
   7. 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.
   8. NO SUCH LOAN SHALL BE MADE FOR A SEPTIC SYSTEM REPLACEMENT  PROJECT
 UNLESS  SUCH  SYSTEM  IS  APPROVED  BY  THE SUFFOLK COUNTY DEPARTMENT OF
 HEALTH SERVICES.
   9. THE LOAN MADE UNDER THE  SEPTIC  SYSTEM  REPLACEMENT  LOAN  PROGRAM
 SHALL CONSTITUTE A LIEN UPON THE REAL PROPERTY BENEFITTED BY SUCH LOAN.
   10.  THE  TOWN  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 PROP-
 ERTY  AND SHALL BE LEVIED AND COLLECTED AT THE SAME TIME AND IN THE SAME
 MANNER AS TOWN 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  CORPO-
 RATION  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.
   11.  ALL  REVENUES  RECEIVED  BY  THE TOWN FROM THE REPAYMENT OF LOANS
 SHALL BE DEPOSITED IN THE FUND.
   § 3. 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.
   § 4. This act shall take effect immediately.