{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/32.1-164.1_01.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/32.1-164.1_01.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/32.1-164.1_01.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/32.1-164.1_01.html"}],"law_id":81724,"edition_id":1,"section_id":81724,"structure_id":13156,"section_number":"32.1-164.1:01","catch_line":"Onsite Sewage Indemnification Fund","history":"1994, c. 747; 2007, cc. 448, 515; 2016, c. 90; 2021, Sp. Sess. I, c. 382.","full_text":"A\n\nThere is hereby created the Onsite Sewage Indemnification Fund, hereafter referred to as “the Fund,” whose purpose is to receive moneys generated by a portion of the fees collected by the Department of Health pursuant to subsections C and E of § 32.1-164 and appropriated by the Commonwealth for the purpose of assisting any Virginia real property owner holding a valid permit to operate an onsite sewage system when such system or components thereof fail within three years of construction and such failure results from the negligence of the Department of Health. The Fund may also be used, in the discretion of the Board, to support the program for training and recognition of licensed onsite soil evaluators and to provide grants and loans to property owners with income at or below 200 percent of the federal poverty guidelines to repair failing onsite sewage systems or install onsite sewage systems on properties that lack adequate sewage disposal. No expenses shall be paid from the Fund to support the program for training and recognition of onsite soil evaluators, or to provide any grant or loan to repair a failing onsite sewage system or install an onsite sewage system on any property that lacks adequate sewage disposal, in lieu of payment to any owner or owners qualified to receive payment from the Fund pursuant to this chapter.B\n\nTen dollars of each fee collected by the Department of Health pursuant to subsections C and E of § 32.1-164 shall be deposited by the Comptroller in the Fund to be appropriated for the purposes of this section to the Department of Health by the General Assembly as it deems necessary.C\n\nThe owner of an onsite sewage system that has been permitted by the Department of Health may cause, by filing a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner to review the circumstances of the onsite sewage system failure, if the onsite sewage system has failed within three years of construction. Upon the Commissioner’s finding that the onsite sewage system was permitted by the Department and (i) the system or components thereof failed within three years of construction; (ii) that specific actions of the Department were negligent and that those actions caused the failure; and (iii) that the owner filed a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner shall, subject to the limitations stated herein, reimburse the owner for the reasonable cost of following the Board’s regulations to repair or replace the failed onsite sewage system or components thereof.D\n\nPrior to receiving payment from the Fund, the owner shall follow the requirements in the Board’s regulations to repair or replace the failed onsite sewage system or components thereof.E\n\nThe total amount an owner may receive in payment from the Fund shall not exceed $30,000. Only the costs of the system that failed or the costs of labor and equipment required to repair or replace the failed onsite sewage system or components thereof are reimbursable by the Fund.F\n\nIf the Commissioner finds that the system was permitted by the Department and has failed within three years of construction and that the failure resulted from faulty construction or other private party error, the Commissioner may assist the owner of the failed system in seeking redress from the system’s builder or other private party.G\n\nEvery request for payment from the Fund shall be forever barred unless the owner has filed a complete application as required by the Department. The request shall be filed with the Commissioner within one year from the date that the onsite sewage system or components thereof first failed. However, if the owner was under a disability at the time the cause of action accrued, the tolling provisions of § 8.01-229 shall apply. The owner shall mail the request for payment from the Fund via the United States Postal Service by certified mail, return receipt requested, addressed to the Commissioner.\n\t\t\tIn any action contesting the filing of the request for payment from the Fund, the burden of proof shall be on the owner to establish mailing and receipt of the notice in conformity with this section. The signed receipt indicating delivery to the Commissioner, when admitted into evidence, shall be prima facie evidence of filing of the request for payment from the Fund under this section. The request for payment from the Fund shall be deemed to be timely filed if it is sent by certified mail, return receipt requested, and if the official receipt shows that the mailing was within the prescribed time limits.\n\t\t\tNotwithstanding any provision of this article, the liability for any payment from the Fund shall be conditioned upon the execution by the owner of a release approved by the Attorney General of all claims against the Commonwealth, its political subdivisions, agencies, and instrumentalities and against any officer or employee of the Commonwealth in connection with or arising out of the occurrence complained of.H\n\nThe Commissioner and the Attorney General shall cooperatively develop an actuarially sound program and policy for identifying, evaluating, and processing requests for payment from the Fund.I\n\nIf the Commissioner refuses the request for payment from the Fund, the owner may appeal the refusal to the State Health Department Sewage Handling and Disposal Appeal Review Board.\n\t\t\tThe Board may promulgate regulations pursuant to the Administrative Process Act (§ 2.2-4000 et seq.) for the administration of the Fund consistent with this chapter.\n\t\t\tIn the event the Fund is insufficient to meet requests for payment from the Fund, this section and the creation of the Fund shall not be construed to provide liability on the part of the Department or any of its personnel where no such liability existed prior to July 1, 1994.","order_by":null,"text":{"0":{"id":292733,"text":"There is hereby created the Onsite Sewage Indemnification Fund, hereafter referred to as “the Fund,” whose purpose is to receive moneys generated by a portion of the fees collected by the Department of Health pursuant to subsections C and E of § 32.1-164 and appropriated by the Commonwealth for the purpose of assisting any Virginia real property owner holding a valid permit to operate an onsite sewage system when such system or components thereof fail within three years of construction and such failure results from the negligence of the Department of Health. The Fund may also be used, in the discretion of the Board, to support the program for training and recognition of licensed onsite soil evaluators and to provide grants and loans to property owners with income at or below 200 percent of the federal poverty guidelines to repair failing onsite sewage systems or install onsite sewage systems on properties that lack adequate sewage disposal. No expenses shall be paid from the Fund to support the program for training and recognition of onsite soil evaluators, or to provide any grant or loan to repair a failing onsite sewage system or install an onsite sewage system on any property that lacks adequate sewage disposal, in lieu of payment to any owner or owners qualified to receive payment from the Fund pursuant to this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":292734,"text":"Ten dollars of each fee collected by the Department of Health pursuant to subsections C and E of § 32.1-164 shall be deposited by the Comptroller in the Fund to be appropriated for the purposes of this section to the Department of Health by the General Assembly as it deems necessary.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":292735,"text":"The owner of an onsite sewage system that has been permitted by the Department of Health may cause, by filing a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner to review the circumstances of the onsite sewage system failure, if the onsite sewage system has failed within three years of construction. Upon the Commissioner’s finding that the onsite sewage system was permitted by the Department and (i) the system or components thereof failed within three years of construction; (ii) that specific actions of the Department were negligent and that those actions caused the failure; and (iii) that the owner filed a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner shall, subject to the limitations stated herein, reimburse the owner for the reasonable cost of following the Board’s regulations to repair or replace the failed onsite sewage system or components thereof.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":292736,"text":"Prior to receiving payment from the Fund, the owner shall follow the requirements in the Board’s regulations to repair or replace the failed onsite sewage system or components thereof.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":292737,"text":"The total amount an owner may receive in payment from the Fund shall not exceed $30,000. Only the costs of the system that failed or the costs of labor and equipment required to repair or replace the failed onsite sewage system or components thereof are reimbursable by the Fund.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":292738,"text":"If the Commissioner finds that the system was permitted by the Department and has failed within three years of construction and that the failure resulted from faulty construction or other private party error, the Commissioner may assist the owner of the failed system in seeking redress from the system’s builder or other private party.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":292739,"text":"Every request for payment from the Fund shall be forever barred unless the owner has filed a complete application as required by the Department. The request shall be filed with the Commissioner within one year from the date that the onsite sewage system or components thereof first failed. However, if the owner was under a disability at the time the cause of action accrued, the tolling provisions of § 8.01-229 shall apply. The owner shall mail the request for payment from the Fund via the United States Postal Service by certified mail, return receipt requested, addressed to the Commissioner.\n\t\t\tIn any action contesting the filing of the request for payment from the Fund, the burden of proof shall be on the owner to establish mailing and receipt of the notice in conformity with this section. The signed receipt indicating delivery to the Commissioner, when admitted into evidence, shall be prima facie evidence of filing of the request for payment from the Fund under this section. The request for payment from the Fund shall be deemed to be timely filed if it is sent by certified mail, return receipt requested, and if the official receipt shows that the mailing was within the prescribed time limits.\n\t\t\tNotwithstanding any provision of this article, the liability for any payment from the Fund shall be conditioned upon the execution by the owner of a release approved by the Attorney General of all claims against the Commonwealth, its political subdivisions, agencies, and instrumentalities and against any officer or employee of the Commonwealth in connection with or arising out of the occurrence complained of.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":292740,"text":"The Commissioner and the Attorney General shall cooperatively develop an actuarially sound program and policy for identifying, evaluating, and processing requests for payment from the Fund.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":292741,"text":"If the Commissioner refuses the request for payment from the Fund, the owner may appeal the refusal to the State Health Department Sewage Handling and Disposal Appeal Review Board.\n\t\t\tThe Board may promulgate regulations pursuant to the Administrative Process Act (§ 2.2-4000 et seq.) for the administration of the Fund consistent with this chapter.\n\t\t\tIn the event the Fund is insufficient to meet requests for payment from the Fund, this section and the creation of the Fund shall not be construed to provide liability on the part of the Department or any of its personnel where no such liability existed prior to July 1, 1994.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H"}},"ancestry":[{"id":13156,"edition_id":1,"name":"Sewage Disposal","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12941,"metadata":{},"date_created":"2026-06-26 03:44:22","date_modified":"2026-06-26 03:44:22","permalink":{"id":203565,"object_type":"structure","relational_id":13156,"identifier":"1","token":"32.1\/6\/1","url":"\/32.1\/6\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12941,"edition_id":1,"name":"Environmental Health Services","identifier":"6","label":"chapter","depth":2,"order_by":1,"parent_id":12727,"metadata":{},"date_created":"2026-06-26 03:44:03","date_modified":"2026-06-26 03:44:03","permalink":{"id":203563,"object_type":"structure","relational_id":12941,"identifier":"6","token":"32.1\/6","url":"\/32.1\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12727,"edition_id":1,"name":"Health","identifier":"32.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":201099,"object_type":"structure","relational_id":12727,"identifier":"32.1","token":"32.1","url":"\/32.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":64577,"structure_id":13156,"section_number":"32.1-163","catch_line":"Definitions","url":"\/32.1-163\/","token":"32.1\/6\/1\/32.1-163","metadata":false},{"id":54177,"structure_id":13156,"section_number":"32.1-163.1","catch_line":"Personal liability of sanitarians defined","url":"\/32.1-163.1\/","token":"32.1\/6\/1\/32.1-163.1","metadata":false},{"id":71587,"structure_id":13156,"section_number":"32.1-163.2","catch_line":"Long range plan for onsite sewage","url":"\/32.1-163.2\/","token":"32.1\/6\/1\/32.1-163.2","metadata":false},{"id":58627,"structure_id":13156,"section_number":"32.1-163.3","catch_line":"Identities of persons making certain reports to remain confidential","url":"\/32.1-163.3\/","token":"32.1\/6\/1\/32.1-163.3","metadata":false},{"id":75697,"structure_id":13156,"section_number":"32.1-163.4","catch_line":"Procedures for application backlogs; individuals approved to conduct evaluations for septic system or other onsite sewage system permit applications","url":"\/32.1-163.4\/","token":"32.1\/6\/1\/32.1-163.4","metadata":false},{"id":65435,"structure_id":13156,"section_number":"32.1-163.5","catch_line":"Onsite sewage evaluations","url":"\/32.1-163.5\/","token":"32.1\/6\/1\/32.1-163.5","metadata":false},{"id":83571,"structure_id":13156,"section_number":"32.1-163.6","catch_line":"Professional engineering of onsite treatment works","url":"\/32.1-163.6\/","token":"32.1\/6\/1\/32.1-163.6","metadata":false},{"id":66759,"structure_id":13156,"section_number":"32.1-164","catch_line":"Powers and duties of Board; regulations; fees; onsite soil evaluators; letters in lieu of permits; inspections; civil penalties","url":"\/32.1-164\/","token":"32.1\/6\/1\/32.1-164","metadata":false},{"id":74693,"structure_id":13156,"section_number":"32.1-164.1","catch_line":"Appeals from denials of septic tank permits; inspections","url":"\/32.1-164.1\/","token":"32.1\/6\/1\/32.1-164.1","metadata":false},{"id":58954,"structure_id":13156,"section_number":"32.1-164.10","catch_line":"Alternative onsite sewage system general approval process","url":"\/32.1-164.10\/","token":"32.1\/6\/1\/32.1-164.10","metadata":false},{"id":81724,"structure_id":13156,"section_number":"32.1-164.1:01","catch_line":"Onsite Sewage Indemnification Fund","url":"\/32.1-164.1_01\/","token":"32.1\/6\/1\/32.1-164.1_01","metadata":false},{"id":69017,"structure_id":13156,"section_number":"32.1-164.1:1","catch_line":"Validity of certain septic tank permits","url":"\/32.1-164.1_1\/","token":"32.1\/6\/1\/32.1-164.1_1","metadata":false},{"id":82687,"structure_id":13156,"section_number":"32.1-164.1:2","catch_line":"Eligibility for betterment loans to repair or replace failing onsite sewage systems","url":"\/32.1-164.1_2\/","token":"32.1\/6\/1\/32.1-164.1_2","metadata":false},{"id":63246,"structure_id":13156,"section_number":"32.1-164.1:3","catch_line":"Permits for voluntary system upgrades","url":"\/32.1-164.1_3\/","token":"32.1\/6\/1\/32.1-164.1_3","metadata":false},{"id":75897,"structure_id":13156,"section_number":"32.1-164.2","catch_line":"Repealed","url":"\/32.1-164.2\/","token":"32.1\/6\/1\/32.1-164.2","metadata":false},{"id":77141,"structure_id":13156,"section_number":"32.1-164.8","catch_line":"Onsite Operation and Maintenance Fund established","url":"\/32.1-164.8\/","token":"32.1\/6\/1\/32.1-164.8","metadata":false},{"id":54654,"structure_id":13156,"section_number":"32.1-164.9","catch_line":"Regulations for chamber and bundled expanded polystyrene effluent distribution systems for onsite sewage systems","url":"\/32.1-164.9\/","token":"32.1\/6\/1\/32.1-164.9","metadata":false},{"id":86519,"structure_id":13156,"section_number":"32.1-165","catch_line":"Prior approval required before issuance of building permit; approved sewage system or nonconforming system","url":"\/32.1-165\/","token":"32.1\/6\/1\/32.1-165","metadata":false},{"id":64941,"structure_id":13156,"section_number":"32.1-166","catch_line":"Agreements with federal agencies","url":"\/32.1-166\/","token":"32.1\/6\/1\/32.1-166","metadata":false}],"previous_section":{"id":58954,"structure_id":13156,"section_number":"32.1-164.10","catch_line":"Alternative onsite sewage system general approval process","url":"\/32.1-164.10\/","token":"32.1\/6\/1\/32.1-164.10","metadata":false},"next_section":{"id":69017,"structure_id":13156,"section_number":"32.1-164.1:1","catch_line":"Validity of certain septic tank permits","url":"\/32.1-164.1_1\/","token":"32.1\/6\/1\/32.1-164.1_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/32.1-164.1:01\/","history_text":"

This law was first created in 1994. The record of its establishment is cataloged in chapter 747<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2007, chapters 448<\/a> and 515<\/a>; in 2016, chapter 90<\/a>.<\/p>","references":[{"id":66759,"section_number":"32.1-164","catch_line":"Powers and duties of Board; regulations; fees; onsite soil evaluators; letters in lieu of permits; inspections; civil penalties","order_by":null,"url":"\/32.1-164\/"},{"id":81367,"section_number":"32.1-166.6","catch_line":"Review Board to hear appeals","order_by":null,"url":"\/32.1-166.6\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":66759,"section_number":"32.1-164","catch_line":"Powers and duties of Board; regulations; fees; onsite soil evaluators; letters in lieu of permits; inspections; civil penalties","order_by":null,"url":"\/32.1-164\/"},{"id":64704,"section_number":"8.01-229","catch_line":"Suspension or tolling of statute of limitations; effect of disabilities; effect of death; injunction; prevention of service by defendant; dismissal, nonsuit or abatement; devise for payment of debts; new promises; debts proved in creditors' suits","order_by":null,"url":"\/8.01-229\/"}],"permalink":{"id":203607,"object_type":"law","relational_id":81724,"identifier":"32.1-164.1:01","token":"32.1\/6\/1\/32.1-164.1_01","url":"\/32.1-164.1_01\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/32.1-164.1_01\/","token":"32.1\/6\/1\/32.1-164.1_01","dublin_core":{"Title":"Onsite Sewage Indemnification Fund","Type":"Text","Format":"text\/html","Identifier":"\u00a7 32.1-164.1:01","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> There is hereby created the Onsite Sewage<\/span> Indemnification Fund, hereafter referred to as “the Fund,” whose purpose is to receive moneys generated by a portion of the fees collected by the Department<\/span> of Health pursuant to subsections C and E of § 32.1-164<\/a> and appropriated by the Commonwealth for the purpose of assisting any Virginia real property owner<\/span> holding a valid permit to operate<\/span> an onsite sewage<\/span> system when such system or components thereof fail within three years of construction and such failure results from the negligence<\/span> of the Department<\/span> of Health. The Fund may also be used, in the discretion of the Board<\/span>, to support the program for training and recognition of licensed onsite soil evaluators<\/span> and to provide grants and loans to property owners<\/span> with income at or below 200 percent of the federal poverty guidelines to repair failing onsite sewage<\/span> systems or install onsite sewage<\/span> systems on properties that lack adequate sewage<\/span> disposal. No expenses shall be paid from the Fund to support the program for training and recognition of onsite soil evaluators, or to provide any grant or loan to repair a failing onsite sewage<\/span> system or install an onsite sewage<\/span> system on any property that lacks adequate sewage<\/span> disposal, in lieu of payment to any owner<\/span> or owners<\/span> qualified to receive payment from the Fund pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Ten dollars of each fee collected by the Department<\/span> of Health pursuant to subsections C and E of § 32.1-164<\/a> shall be deposited by the Comptroller in the Fund to be appropriated for the purposes of this section to the Department<\/span> of Health by the General Assembly as it deems necessary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The owner<\/span> of an onsite sewage<\/span> system that has been permitted by the Department<\/span> of Health may cause, by filing a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner<\/span> to review the circumstances of the onsite sewage<\/span> system failure, if the onsite sewage<\/span> system has failed within three years of construction. Upon the Commissioner<\/span>’s finding<\/span> that the onsite sewage<\/span> system was permitted by the Department<\/span> and (i) the system or components thereof failed within three years of construction; (ii) that specific actions of the Department<\/span> were negligent and that those actions caused the failure; and (iii) that the owner<\/span> filed a request for payment from the Fund within one year from the date the system or components thereof failed, the Commissioner<\/span> shall, subject to the limitations stated herein, reimburse the owner<\/span> for the reasonable cost of following the Board<\/span>’s regulations<\/span> to repair or replace the failed onsite sewage<\/span> system or components thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Prior to receiving payment from the Fund, the owner<\/span> shall follow the requirements in the Board<\/span>’s regulations<\/span> to repair or replace the failed onsite sewage<\/span> system or components thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The total amount an owner<\/span> may receive in payment from the Fund shall not exceed $30,000. Only the costs of the system that failed or the costs of labor and equipment required to repair or replace the failed onsite sewage<\/span> system or components thereof are reimbursable by the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> If the Commissioner<\/span> finds that the system was permitted by the Department<\/span> and has failed within three years of construction and that the failure resulted from faulty construction or other private party<\/span> error, the Commissioner<\/span> may assist the owner<\/span> of the failed system in seeking redress from the system’s builder or other private party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Every request for payment from the Fund shall be forever barred unless the owner<\/span> has filed a complete application as required by the Department<\/span>. The request shall be filed with the Commissioner<\/span> within one year from the date that the onsite sewage<\/span> system or components thereof first failed. However, if the owner<\/span> was under a disability at the time the cause of action<\/span> accrued, the tolling provisions of § 8.01-229<\/a> shall apply. The owner<\/span> shall mail the request for payment from the Fund via the United States Postal Service by certified mail, return receipt requested, addressed to the Commissioner<\/span>.\n\t\t\tIn any action contesting the filing of the request for payment from the Fund, the burden of proof<\/span> shall be on the owner<\/span> to establish mailing and receipt of the notice in conformity with this section. The signed receipt indicating delivery to the Commissioner<\/span>, when admitted into evidence<\/span>, shall be prima facie evidence<\/span> of filing of the request for payment from the Fund under this section. The request for payment from the Fund shall be deemed to be timely filed if it is sent by certified mail, return receipt requested, and if the official receipt shows that the mailing was within the prescribed time limits.\n\t\t\tNotwithstanding any provision of this article, the liability for any payment from the Fund shall be conditioned upon the execution by the owner<\/span> of a release approved by the Attorney General<\/span> of all claims against the Commonwealth, its political subdivisions, agencies, and instrumentalities and against any officer or employee of the Commonwealth in connection with or arising out of the occurrence complained of. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Commissioner<\/span> and the Attorney General<\/span> shall cooperatively develop an actuarially sound program and policy for identifying, evaluating, and processing requests for payment from the Fund. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> If the Commissioner<\/span> refuses the request for payment from the Fund, the owner<\/span> may appeal<\/span> the refusal to the State Health Department<\/span> Sewage<\/span> Handling and Disposal Appeal<\/span> Review Board<\/span>.\n\t\t\tThe Board may promulgate regulations<\/span> pursuant to the Administrative Process Act (§ 2.2-4000<\/a> et seq.) for the administration of the Fund consistent with this chapter.\n\t\t\tIn the event the Fund is insufficient to meet requests for payment from the Fund, this section and the creation of the Fund shall not be construed to provide liability on the part of the Department<\/span> or any of its personnel where no such liability existed prior to July 1, 1994. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nONSITE SEWAGE INDEMNIFICATION FUND (\u00a7 32.1-164.1:01)\n\nA. There is hereby created the Onsite Sewage Indemnification Fund, hereafter\nreferred to as “the Fund,” whose purpose is to receive moneys\ngenerated by a portion of the fees collected by the Department of Health\npursuant to subsections C and E of § 32.1-164 and appropriated by the\nCommonwealth for the purpose of assisting any Virginia real property owner\nholding a valid permit to operate an onsite sewage system when such system or\ncomponents thereof fail within three years of construction and such failure\nresults from the negligence of the Department of Health. The Fund may also be\nused, in the discretion of the Board, to support the program for training and\nrecognition of licensed onsite soil evaluators and to provide grants and loans\nto property owners with income at or below 200 percent of the federal poverty\nguidelines to repair failing onsite sewage systems or install onsite sewage\nsystems on properties that lack adequate sewage disposal. No expenses shall be\npaid from the Fund to support the program for training and recognition of onsite\nsoil evaluators, or to provide any grant or loan to repair a failing onsite\nsewage system or install an onsite sewage system on any property that lacks\nadequate sewage disposal, in lieu of payment to any owner or owners qualified to\nreceive payment from the Fund pursuant to this chapter.\n\nB. Ten dollars of each fee collected by the Department of Health pursuant to\nsubsections C and E of § 32.1-164 shall be deposited by the Comptroller in\nthe Fund to be appropriated for the purposes of this section to the Department\nof Health by the General Assembly as it deems necessary.\n\nC. The owner of an onsite sewage system that has been permitted by the\nDepartment of Health may cause, by filing a request for payment from the Fund\nwithin one year from the date the system or components thereof failed, the\nCommissioner to review the circumstances of the onsite sewage system failure, if\nthe onsite sewage system has failed within three years of construction. Upon the\nCommissioner’s finding that the onsite sewage system was permitted by the\nDepartment and (i) the system or components thereof failed within three years of\nconstruction; (ii) that specific actions of the Department were negligent and\nthat those actions caused the failure; and (iii) that the owner filed a request\nfor payment from the Fund within one year from the date the system or components\nthereof failed, the Commissioner shall, subject to the limitations stated\nherein, reimburse the owner for the reasonable cost of following the\nBoard’s regulations to repair or replace the failed onsite sewage system\nor components thereof.\n\nD. Prior to receiving payment from the Fund, the owner shall follow the\nrequirements in the Board’s regulations to repair or replace the failed\nonsite sewage system or components thereof.\n\nE. The total amount an owner may receive in payment from the Fund shall not\nexceed $30,000. Only the costs of the system that failed or the costs of labor\nand equipment required to repair or replace the failed onsite sewage system or\ncomponents thereof are reimbursable by the Fund.\n\nF. If the Commissioner finds that the system was permitted by the Department and\nhas failed within three years of construction and that the failure resulted from\nfaulty construction or other private party error, the Commissioner may assist\nthe owner of the failed system in seeking redress from the system’s\nbuilder or other private party.\n\nG. Every request for payment from the Fund shall be forever barred unless the\nowner has filed a complete application as required by the Department. The\nrequest shall be filed with the Commissioner within one year from the date that\nthe onsite sewage system or components thereof first failed. However, if the\nowner was under a disability at the time the cause of action accrued, the\ntolling provisions of § 8.01-229 shall apply. The owner shall mail the\nrequest for payment from the Fund via the United States Postal Service by\ncertified mail, return receipt requested, addressed to the Commissioner.\n\t\t\tIn any action contesting the filing of the request for payment from the Fund,\nthe burden of proof shall be on the owner to establish mailing and receipt of\nthe notice in conformity with this section. The signed receipt indicating\ndelivery to the Commissioner, when admitted into evidence, shall be prima facie\nevidence of filing of the request for payment from the Fund under this section.\nThe request for payment from the Fund shall be deemed to be timely filed if it\nis sent by certified mail, return receipt requested, and if the official receipt\nshows that the mailing was within the prescribed time limits.\n\t\t\tNotwithstanding any provision of this article, the liability for any payment\nfrom the Fund shall be conditioned upon the execution by the owner of a release\napproved by the Attorney General of all claims against the Commonwealth, its\npolitical subdivisions, agencies, and instrumentalities and against any officer\nor employee of the Commonwealth in connection with or arising out of the\noccurrence complained of.\n\nH. The Commissioner and the Attorney General shall cooperatively develop an\nactuarially sound program and policy for identifying, evaluating, and processing\nrequests for payment from the Fund.\n\nI. If the Commissioner refuses the request for payment from the Fund, the owner\nmay appeal the refusal to the State Health Department Sewage Handling and\nDisposal Appeal Review Board.\n\t\t\tThe Board may promulgate regulations pursuant to the Administrative Process\nAct (§ 2.2-4000 et seq.) for the administration of the Fund consistent with\nthis chapter.\n\t\t\tIn the event the Fund is insufficient to meet requests for payment from the\nFund, this section and the creation of the Fund shall not be construed to\nprovide liability on the part of the Department or any of its personnel where no\nsuch liability existed prior to July 1, 1994.\n\nHISTORY: 1994, c. 747; 2007, cc. 448, 515; 2016, c. 90; 2021, Sp. Sess. I, c.\n382.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}