These folks have had some experience with the issue, and may be willing to help answer your questions:
Note, however, that while their page refers to the effluent from a composting toilet as "gray water" it is actually black water, since it contains fecal coliform (e coli), small bits of feces, bacteria and viruses. If you were to treat it as if it were gray water, you'd be in violation of current law.
As I understand it (I am NOT a lawyer, so your mileage may vary), a septic tank and a pair of leach fields (primary and fail-over) are absolutely required no matter what you use for a toilet. The size of the required leach fields may be smaller than those needed with conventional plumbing, if you use a composting toilet.
If you use a composting toilet, the compost must be buried 6" underground and may not be used for food growing.
It's all a bit of a nuisance, but the state is trying to protect the quality of the water against many challenges, and raw sewage presents quite a challenge. Of course, given all the not-exactly-composted antibiotic-laced cow manure being sprayed on fields all over the state, you have to wonder about priorities - though at the same time, the potential for spreading cholera does make human waste regulation very important.