What's happening
This bill allows New York municipalities to create loan programs for property owners to replace or upgrade septic systems to improve water quality.
Why it matters
Targets water quality at the source. By encouraging the installation of advanced septic systems (like those with nitrogen removal), the bill directly addresses pollutants that contaminate drinking water and harm waterbodies, especially in areas reliant on groundwater.
Enables local solutions tailored to local needs. Municipalities can set up their own loan programs and define priority areas, allowing them to focus resources where environmental and public health benefits will be greatest.
Protects public investment with property liens. Loans are secured by a lien on the property, ensuring repayment and making these programs financially sustainable for municipalities without unduly shifting risk to other local governments.
Promotes accountability and safety. Loans can only be made for projects approved by the local health department, helping ensure that funded upgrades meet health and safety standards.
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Who cares
Headline styles
Offer Loans for Septic Upgrades
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Create Septic System Loan Program
In Assembly Committee · Local Governments · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 8255 A. 10444
SENATE - ASSEMBLY
April 23, 2018
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law in relation to authorizing municipal corporations to establish septic system replacement loan programs
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general municipal law is amended by adding a new article 5-M to read as follows:
ARTICLE 5-M
MUNICIPAL SEPTIC SYSTEM REPLACEMENT LOAN PROGRAM Section 119-hh. Legislative findings and declaration.
119-ii. Definitions.
119-jj. Municipal septic system replacement loan program.
§ 119-hh. Legislative findings and declaration. The legislature finds and declares that it is the policy of the state to promote improved water quality across the state; and that to achieve such policy and goals the state must promote the deployment of enhanced treatment technologies, including advanced nitrogen removal systems, to significantly and quantifiably reduce environmental and/or public health impacts associated with effluent from a cesspool or septic system to groundwater used for drinking water, or a threatened or an impaired waterbody throughout the state; and that municipalities would fulfill an important public purpose by providing loans to property owners for the installation of such enhanced treatment technologies.
§ 119-ii. Definitions. As used in this section, the following words and terms shall have the following meanings:
1. "Cesspool" means a drywell that receives untreated sanitary waste containing human excreta, which sometimes has an open bottom and/or perforated sides.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15333-01-8
S. 8255 2 A. 10444
2. "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.
3. "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 treatment 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.
§ 119-jj. Municipal septic system replacement loan program. 1. The legislative body of any municipal corporation may, by local law, establish a septic system replacement loan program.
2. Such program may make loans to the owners of real property located within the municipal corporation to finance the installation of septic system projects. The municipal corporation may establish priority areas for such loans in order to maximize environmental and public health benefits.
3. Each such 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.
4. Every loan made under the septic system replacement loan program shall be repaid over a term not to exceed ten years. The municipal corporation shall set a fixed rate of interest for the repayment of the principal amount of each loan at the time the loan is made.
5. 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.
6. No such loan shall be made for a septic system replacement project unless such system is approved by the local department of health.
7. The loan made under the septic system replacement loan program shall constitute a lien upon the real property benefitted by such loan.
8. The municipal corporation 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 property and shall be levied and collected at the same time and in the same manner as municipal 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 corporation 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.
§ 2. 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.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law in relation to authorizing municipal corporations to establish septic system replacement loan programs
Purpose
Allows for the establishment of municipal septic systems replacement loan programs
Summary of provisions
Amends the General Municipal Law by adding a new article 5-M establish- ing a Municipal Septic System Replacement Loan Program.
Justification
In making every effort to build upon improved water quality across the State, promoting the installation of enhanced treatment technologies, including advanced nitrogen-removal systems, is necessary to signif- icantly and quantifiably help protect residents and the environment by keeping drinking water and waterbodies safe. This legislation would fulfill an important public purpose by allowing municipalities through- out the State to adopt a local law to establish a septic system replace- ment loan program.
Under this program, property owners could borrow monies from their municipal corporation to help pay for costs associated with installation of an approved nitrogen-removal septic system then pay it back through a charge on their real property tax bill. The charge would be levied and collected at the same time and in the same manner as town taxes.
This program could also work in conjunction with local septic system replacement incentives by providing an alternative method for financing the difference between the local septic program incentive and the contract amount needed to install the replacement septic system.
Legislative history
2018: New Legislation
Fiscal implications
None to the State.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.