BILL NUMBER: AB 741 AMENDED BILL TEXT AMENDED IN SENATE JUNE 9, 2011 AMENDED IN ASSEMBLY APRIL 11, 2011 AMENDED IN ASSEMBLY MARCH 14, 2011 INTRODUCED BY Assembly Member Huffman (Coauthors: Assembly MembersMillerMa, Miller, and Wagner) ( Coauthor: Senator Harman ) FEBRUARY 17, 2011 An act to amend Section 5464 of, and to add Section 5465 to , the Health and Safety Code, relating to wastewater. LEGISLATIVE COUNSEL'S DIGEST AB 741, as amended, Huffman. Onsite wastewater disposal. Existing law prohibits the discharge of sewage or other waste, or the effluent of treated sewage or other waste, in any manner that will result in contamination, pollution, or a nuisance. Under existing law, when the State Department of Public Health or any local health officer finds that a contamination exists, the department or the officer is required to order the contamination abated, as provided. Under existing law, an owner or reputed owner of property included within an assessment district for construction of a main trunkline or collector sewer lines may request the governing board to construct all necessary plumbing to connect his or her property to the adjoining public sewer system, the cost of which constitutes a lien on the property. Under existing law, as an alternative to the enforcement of the lien, the governing body of the public agency is authorized to provide for the payment of costs prior to the construction and connection or in installments over a period, not to exceed 15 years, and to provide a rate of interest not to exceed 6% per annum, as specified. This bill would allow the installments to be over a period not to exceed 30 years and at a rate of interest not to exceed 12%. The bill would also authorize defined entities to use this provision for the purpose of converting properties from onsite septic systems and connecting them to the sewer system and for replacing or repairing existing sewer laterals connecting pipes to a sewer system. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 5464 of the Health and Safety Code is amended to read: 5464.AnyAn owner or reputed owner, who has his or her property included within an assessment district for the construction of a main trunkline or collector sewer lines, may request the governing board to construct all necessary plumbing to connect his or her property to the adjoining street public sewer system. The person employed by the governing board to do the work shall have a lien upon the property, for work done and materials furnished, and the work done and materials furnished shall be deemed to have been done and furnished at the request of the owner, reputed owner, or person claiming or havinganyan interest in the property. The governing board may pay all, or any part, of the cost or price of the connection to the person or persons who furnished labor, materials, or equipment and, to the extent that the governing board pays the cost or price of the connection, it shall succeed to and have all the rights, including the lien, of the person or persons against the property and the owner or reputed owner of the property. As an alternative power to the enforcement of the lien provided for in this section, the governing body of the public agency performing the work of connection to the public sewer may, by the power of ordinance approved by two-thirds vote of the members of the legislative body, fix the cost of improvement for connection to the sanitation or sewerage facilities, fix the times at which such costs shall become due, provide for the payment of the costs prior to the construction and connection or in installments over a period, not to exceed1530 years, provide a rate of interest, not to exceed612 percent per annum, to be charged on the unpaid balance of the costs, and provide that the amount of the costs and the interest shall constitute a lien against the respective lots or parcels upon which the facilities are constructed. The governing body may use the procedures specified in Section 5474 to implement the levying of the costs for the construction and connection of the premises to the public sewer.SECTION 1.SEC. 2. Section 5465 is added to the Health and Safety Code, to read: 5465. (a) The procedures specified in this section may be used by a public agency that is an entity, as defined in Section 5470. (b) An entity may use the procedures specified in Section 5464 for either of the following purposes, whether or not an order or other action has been issued or taken for an abatement of contamination created by sewage disposal: (1) Converting properties from onsite septic systems and connecting them to a sewer system. The conversion improvements and costs may include, but are not limited to, pipes, pumps , and other equipment, septic system abandonment, and associated sewage treatment capacity. (2) Replacing or repairing existing sewer laterals connecting pipes to a sewer system. The cost of the lateral replacement or repair shall constitute the cost of an improvement for connection to a sewer system. (c) For purposes of this section, and in addition to any other power, an entity may exercise the powers specified in Article 4 (commencing with Section 5470). (d) The authority granted by this section shall be in addition to, shall not be in derogation of, and shall not affect, any authority granted by other law relating to recovering the cost incurred by an entity for connecting properties to the public sewer system, or the entity's exercise of powers pursuant to any other law. This section shall be deemed to provide a complete and supplemental method for exercising the powers authorized by this section, and shall be deemed supplemental to the powers conferred by other applicable laws. (e) For purposes of this section, the following definitions shall apply: (1) "Assessment district" as used in statutes referenced in this section also means an improvement district or any other area served by the entity's sewer collection system. (2) "Governing board" and "governing body" mean the governing body of the entity. (3) "Ordinance" as used in statutes referenced in this section also means a resolution.