Senate File 261 - Enrolled PAG LIN 1 1 SENATE FILE 261 1 2 1 3 AN ACT 1 4 REQUIRING CERTAIN PRIVATE SEWAGE DISPOSAL SYSTEM=RELATED 1 5 INSPECTIONS TO BE CONDUCTED WHEN CERTAIN PROPERTY IS SOLD 1 6 OR TRANSFERRED AND INCLUDING AN EFFECTIVE DATE PROVISION. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 455B.172, Code 2007, is amended by 1 11 adding the following new subsection: 1 12 NEW SUBSECTION. 11. a. A building where a person 1 13 resides, congregates, or is employed that is served by a 1 14 private sewage disposal system shall have the sewage disposal 1 15 system serving the building inspected prior to any transfer of 1 16 ownership of the building. The requirements of this 1 17 subsection shall be applied to all types of ownership transfer 1 18 including at the time a seller financed real estate contract 1 19 is signed. The county recorder shall not record a deed or any 1 20 other property transfer or conveyance document until either a 1 21 certified inspector's report is provided which documents the 1 22 condition of the private sewage disposal system and whether 1 23 any modifications are required to conform to standards adopted 1 24 by the department or, in the event that weather or other 1 25 temporary physical conditions prevent the certified inspection 1 26 from being conducted, the buyer has executed and submitted a 1 27 binding acknowledgment with the county board of health to 1 28 conduct a certified inspection of the private sewage disposal 1 29 system at the earliest practicable time and to be responsible 1 30 for any required modifications to the private sewage disposal 1 31 system as identified by the certified inspection. Any type of 1 32 on=site treatment unit or private sewage disposal system must 1 33 be inspected according to rules developed by the department. 1 34 For the purposes of this subsection, "transfer" means the 1 35 transfer or conveyance by sale, exchange, real estate 2 1 contract, or any other method by which real estate and 2 2 improvements are purchased, if the property includes at least 2 3 one but not more than four dwelling units. However, 2 4 "transfer" does not include any of the following: 2 5 (1) A transfer made pursuant to a court order, including 2 6 but not limited to a transfer under chapter 633 or 633A, the 2 7 execution of a judgment, the foreclosure of a real estate 2 8 mortgage pursuant to chapter 654, the forfeiture of a real 2 9 estate contract under chapter 656, a transfer by a trustee in 2 10 bankruptcy, a transfer by eminent domain, or a transfer 2 11 resulting from a decree for specific performance. 2 12 (2) A transfer to a mortgagee by a mortgagor or successor 2 13 in interest who is in default, or a transfer by a mortgagee 2 14 who has acquired real property at a sale conducted pursuant to 2 15 chapter 654, a transfer back to a mortgagor exercising a right 2 16 of first refusal pursuant to section 654.16A, a nonjudicial 2 17 voluntary foreclosure procedure under section 654.18 or 2 18 chapter 655A, or a deed in lieu of foreclosure under section 2 19 654.19. 2 20 (3) A transfer by a fiduciary in the course of the 2 21 administration of a decedent's estate, guardianship, 2 22 conservatorship, or trust. 2 23 (4) A transfer between joint tenants or tenants in common. 2 24 (5) A transfer made to a spouse, or to a person in the 2 25 lineal line of consanguinity of a person making the transfer. 2 26 (6) A transfer between spouses resulting from a decree of 2 27 dissolution of marriage, a decree of legal separation, or a 2 28 property settlement agreement which is incidental to the 2 29 decree, including a decree ordered pursuant to chapter 598. 2 30 b. The inspection requirement of paragraph "a" does not 2 31 apply to a transfer in which the transferee intends to 2 32 demolish or raze the building. The department shall adopt 2 33 rules pertaining to such transfers. 2 34 c. At the time of inspection, any septic tank existing as 2 35 part of the sewage disposal system shall be opened and have 3 1 the contents pumped out and disposed of as provided for by 3 2 rule. In the alternative, the owner may provide evidence of 3 3 the septic tank being properly pumped out within three years 3 4 prior to the inspection by a commercial septic tank cleaner 3 5 licensed by the department which shall include documentation 3 6 of the size and condition of the tank and its components at 3 7 the time of such occurrence. 3 8 d. If a private sewage disposal system is failing to 3 9 ensure effective wastewater treatment or is otherwise 3 10 improperly functioning, the private sewage disposal system 3 11 shall be renovated to meet current construction standards, as 3 12 adopted by the department, either by the seller or, by 3 13 agreement, within a reasonable time period as determined by 3 14 the county or the department, by the buyer. If the private 3 15 sewage disposal system is properly treating the wastewater and 3 16 not creating an unsanitary condition in the environment at the 3 17 time of inspection, the system is not required to meet current 3 18 construction standards. 3 19 e. Inspections shall be conducted by an inspector 3 20 certified by the department. 3 21 f. Pursuant to chapter 17A, the department shall adopt 3 22 certification requirements for inspectors including training, 3 23 testing, and fees, and shall establish uniform statewide 3 24 inspection criteria and an inspection form. The inspector 3 25 certification training shall include use of the criteria and 3 26 form. The department shall maintain a list of certified 3 27 inspectors. 3 28 g. County personnel are eligible to become certified 3 29 inspectors. A county may set an inspection fee for 3 30 inspections conducted by certified county personnel. A county 3 31 shall allow any department certified inspector to provide 3 32 inspection services under this subsection within the county's 3 33 jurisdiction. 3 34 h. Following an inspection, the inspection form and any 3 35 related reports shall be provided to the county for 4 1 enforcement of any follow=up mandatory system improvement and 4 2 to the department for record. 4 3 i. An inspection is valid for a period of two years for 4 4 any ownership transfers during that period. Title abstracts 4 5 to property with private sewage disposal systems shall include 4 6 documentation of the requirements in this subsection. 4 7 Sec. 2. EFFECTIVE DATE. This Act takes effect July 1, 4 8 2009. 4 9 4 10 4 11 4 12 JOHN P. KIBBIE 4 13 President of the Senate 4 14 4 15 4 16 4 17 PATRICK J. MURPHY 4 18 Speaker of the House 4 19 4 20 I hereby certify that this bill originated in the Senate and 4 21 is known as Senate File 261, Eighty=second General Assembly. 4 22 4 23 4 24 4 25 MICHAEL E. MARSHALL 4 26 Secretary of the Senate 4 27 Approved , 2008 4 28 4 29 4 30 4 31 CHESTER J. CULVER 4 32 Governor