SB111,2274 Section 2274 . 145.246 of the statutes is created to read:

SB111,1238,15 145.246 Private on-site wastewater treatment system replacement or rehabilitation. (1) Definitions. In this section:

SB111,1238,16 (a) “Determination of failure" means any of the following:

SB111,1238,21 1. A determination that a private on-site wastewater treatment system is failing, according to the criteria under s. 145.01 (4m), based on an inspection of the private on-site wastewater treatment system by an employee of the state or a governmental unit who is certified to inspect private on-site wastewater treatment systems by the department.

SB111,1238,23 2. A written enforcement order issued under s. 145.02 (3) (f), 145.20 (2) (f) or 281.19 (2).

SB111,1238,25 3. A written enforcement order issued under s. 254.59 (1) by a governmental unit.

SB111,1239,3 (b) “Governmental unit" means a governmental unit responsible for the regulation of private on-site wastewater treatment systems. “Governmental unit" also includes a federally recognized American Indian tribe or band.

SB111,1239,7 (c) “Indian lands" means lands owned by the United States and held for the use or benefit of Indian tribes or bands or individual Indians and lands within the boundaries of a federally recognized reservation that are owned by Indian tribes or bands or individual Indians.

SB111,1239,10 (d) “Participating governmental unit" means a governmental unit which applies to the department for financial assistance under sub. (7) and which meets the conditions specified under sub. (8).

SB111,1239,12 (e) “Principal residence" means a residence which is occupied at least 51 percent of the year by the owner.

SB111,1239,15 (f) “Sewage" means the water-carried wastes created in and to be conducted away from residences, industrial establishments, and public buildings as defined in s. 101.01 (12), with such surface water or groundwater as may be present.

SB111,1239,18 (g) “Small commercial establishment" means a commercial establishment or business place with a maximum daily waste water flow rate of less than 5,000 gallons per day.

SB111,1239,22 (2) Categories of failing private on-site wastewater treatment systems. For the purposes of this section, the department shall establish the category of each failing private on-site wastewater treatment system for which a grant application is submitted, as follows:

SB111,1239,24 (a) Category 1: failing private on-site wastewater treatment systems described in s. 145.01 (4m) (a) to (c).

SB111,1240,2 (b) Category 2: failing private on-site wastewater treatment systems described in s. 145.01 (4m) (d).

SB111,1240,4 (c) Category 3: failing private on-site wastewater treatment systems described in s. 145.01 (4m) (e).

SB111,1240,13 (3) Eligibility. (a) 1. A person is eligible for grant funds under this section if he or she owns a principal residence which is served by a category 1 or 2 failing private on-site wastewater treatment system, if the private on-site wastewater treatment system was installed at least 33 years before the person submits a grant application, if the family income of the person does not exceed the income limitations under par. (c), if the amount of the grant determined under sub. (6) is at least $100, if the residence is not located in an area served by a sewer, and if determination of failure is made prior to the rehabilitation or replacement of the failing private on-site wastewater treatment system.

SB111,1240,21 2. A business is eligible for grant funds under this section if it owns a small commercial establishment which is served by a category 1 or 2 failing private on-site wastewater treatment system, if the private on-site wastewater treatment system was installed at least 33 years before the business submits a grant application, if the gross revenue of the business does not exceed the limitation under par. (d), if the small commercial establishment is not located in an area served by a sewer, and if a determination of failure is made prior to the rehabilitation or replacement of the private on-site wastewater treatment system.

SB111,1241,2 3. A person who owns a principal residence or small commercial establishment which is served by a category 1 or 2 failing private on-site wastewater treatment system may submit an application for grant funds during the 3-year period after the determination of failure is made. Grant funds may be awarded after work is completed if rehabilitation or replacement of the system meets all requirements of this section and rules promulgated under this section.

SB111,1241,4 (b) Each principal residence or small commercial establishment may receive only one grant under this section.

SB111,1241,13 (c) 1. In order to be eligible for grant funds under this section, the annual family income of the person who owns the principal residence may not exceed $45,000. Beginning July 1, 2022, and annually on July 1 thereafter, the department shall adjust the dollar amount specified in this subdivision by an amount equal to that dollar amount multiplied by the percentage change in the U.S. consumer price index for urban wage earners and clerical workers, U.S. city average, for the prior year, rounded to the nearest dollar. The department shall publish the dollar amounts on its Internet site. Notwithstanding s. 227.10, the adjusted dollar amounts need not be promulgated as rules under ch. 227.

SB111,1241,17 2. Except as provided under subd. 4., annual family income shall be based upon the federal adjusted gross income of the owner and the owner's spouse, if any, as computed for the taxable year prior to the year in which the determination of failure is made.

SB111,1241,21 3. In order to be eligible for grant funds under this section, a person shall submit a copy of the federal income tax returns upon which the determination of federal adjusted gross income under subd. 2. was made together with any application required by the governmental unit.

SB111,1242,3 4. A governmental unit may disregard the federal income tax return that is submitted under subd. 3. and may determine annual family income based upon satisfactory evidence of federal adjusted gross income or projected federal adjusted gross income of the owner and the owner's spouse in the current year. The department shall promulgate rules establishing criteria for determining what constitutes satisfactory evidence of federal adjusted gross income or projected federal adjusted gross income in a current year.

SB111,1242,6 (d) 1. In order to be eligible for grant funds under this section, the annual gross revenue of the business that owns the small commercial establishment may not exceed $362,500.

SB111,1242,11 2. Except as provided in subd. 4., annual gross revenue shall be based upon the gross revenue of the business for the taxable year prior to the year in which the determination of failure is made. The department shall promulgate rules establishing criteria for determining what constitutes satisfactory evidence of gross revenue in a prior taxable year.

SB111,1242,14 3. In order to be eligible for grant funds under this section, a business shall submit documentation required by the department under subd. 2. together with any application required by the governmental unit.

SB111,1242,20 4. A governmental unit may disregard the documentation of gross revenue for the taxable year prior to the year in which the determination of failure is made and may determine annual gross revenue based upon satisfactory evidence of gross revenue of the business in the current year. The department shall promulgate rules establishing criteria for determining what constitutes satisfactory evidence of gross revenue in a current year.

SB111,1242,22 (e) The department of revenue shall, upon request by the department, verify the income information submitted by an applicant or grant recipient.