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
35 transfer or conveyance by sale, exchange, real estate
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
35 part of the sewage disposal system shall be opened and have
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
35 related reports shall be provided to the county for
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