It is enacted by the General Assembly as follows:

SECTION 1. Title 46 of the general laws entitled "Waters and Navigation" is hereby amended by adding thereto the following chapter:

{ADD 46-12.10-1. Legislative findings. -- ADD} {ADD The General Assembly hereby recognizes and declares that:

(a) There exists and will continue to exist within the State of Rhode Island the need to construct, maintain and repair facilities and projects for the abatement of pollution caused by domestic wastewater discharges, including but not limited to septic systems and cesspools.

(b) It is found that there are presently, ninety thousand (90,000) cesspools within the State of Rhode Island.

(c) Failed and poorly functioning ISDS systems contribute directly to pollution in such environmentally sensitive areas as Greenwich Bay, coastal salt ponds and other water resources.

(d) It is further found that there is a need to establish a fund that shall provide to communities financial assistance to create and adopt a community septic system management plan and provide the corpus of a fund within the existing State SRF as administered by the Rhode Island Clean Water Finance Agency that shall enable communities to offer to homeowners within those communities the opportunity to access low-cost loans for repair or replacement of failed or poorly functioning septic systems. ADD}

{ADD 46-12.10-2. Establishment of commission. -- ADD} {ADD (a) There is hereby created a commission known as the Commission to Study Feasibility and Funding of Homeowners Assistance Fund for septic systems which shall consist of fifteen (15) members as follows:

(1) One (1) member who shall be engaged in the septage hauling industry to be appointed by the senate majority leader;

(2) One (1) member who is employed by a publicly owned treatment works (POTW) which receives septage, to be appointed by the senate majority leader;

(3) One (1) member who represents a private, non-profit environmental advocacy organization, to be appointed by the speaker;

(4) One (1) member representing the Rhode Island Clean Water Protection Finance Agency, to be appointed by the director;

(5) One (1) member representing the Natural Resource Conservation Service, to be appointed by the speaker;

(6) One (1) member representing the Narragansett Bay Water Pollution Control Association, to be appointed by the speaker;

(7) The Director of the Department of Environmental Management or his or her designee;

(8) One (1) public member who is a resident of a community with septic systems, to be appointed by the speaker;

(9) The director of Narragansett Bay Commission or his or her designee.

(10) The President of the Rhode Island Mortgage Brokers Association or his or her designee;

(11) The Speaker of the House of Representatives shall appoint two (2) members of the House of Representatives from the majority party and one (1) member of the House of Representatives from the minority party.

(12) The Senate Majority Leader shall appoint one (1) Senator from the majority party and one (1) Senator from the minority party.

(b) The chairperson shall be elected by the members of the commission. ADD}

{ADD 46-12.10-3. Purposes and duties. -- ADD} {ADD The purpose of the commission shall be to study pollution levels in general terms on a statewide basis; develop a program where cities and towns develop community septic system management plans; determine funding sources for creation of such plans, determine funding sources for a homeowners financial assistance program; develop the specific requirements of such a program; determine which agency or agencies and mechanisms are best able to manage and administer said funding; draft legislation which would incorporate the findings and recommendations of the commission and a plan of implementation of the findings and recommendations of the commission; and report in writing to the general assembly on January 3, 1997 on the findings and recommendations of the commission with proposed legislation, and shall expire February 3, 1997. ADD}

SECTION 2. This act shall take effect upon passage.