Grants local governments the authority to make decisions related to the types and use of sewage systems based on particular circumstances in urban growth areas.

Requires the department of commerce to: (1) Update its guidance to sanitary sewer system service providers with respect to factors that the department recommends the service providers consider when determining whether to exercise their authority to mandate connections to sanitary sewer systems; and

(2) At a minimum, consult with stakeholders representing on-site septic operators, cities, counties, special purpose districts, the environmental community, and the business community.