House File 2435 HOUSE FILE BY COMMITTEE ON COMMERCE, REGULATION AND LABOR (SUCCESSOR TO HSB 612) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to immunity from third=party liability for claims 2 resulting from contaminated property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6160HV 80 5 tm/pj/5 PAG LIN 1 1 Section 1. NEW SECTION. 455B.751 DEFINITIONS. 1 2 As used in this division, unless the context otherwise 1 3 requires: 1 4 1. "Acquired" means purchased, leased, or obtained by 1 5 inheritance or descent and distribution. 1 6 2. "Hazardous substance" means the same as defined in 1 7 section 455B.381 or 455B.411. 1 8 3. "Hazardous waste" means the same as defined in section 1 9 455B.411. 1 10 4. "Potentially responsible party" means a person whose 1 11 acts or omissions were a proximate cause of the contamination 1 12 of the acquired property. 1 13 5. "Regulated substance" means the same as defined in 1 14 section 455B.471. 1 15 6. "Third party" means any person other than a person that 1 16 holds indicia of title to property as identified in section 1 17 455B.752, subsection 1, or that has acquired property as 1 18 identified in section 455B.752, subsection 2. 1 19 7. "Third=party liability" means any liability or 1 20 obligation arising out of or resulting from contamination of 1 21 property by a hazardous substance, hazardous waste, or a 1 22 regulated substance, including without limitation, claims for 1 23 illness, personal injury, death, consequential damages, 1 24 exemplary damages, lost profits, trespass, loss of use of 1 25 property, loss of rental value, reduction in property value, 1 26 property damages, or statutory or common law nuisance. 1 27 Sec. 2. NEW SECTION. 455B.752 IMMUNITY FROM THIRD=PARTY 1 28 LIABILITY. 1 29 1. A person that holds indicia of ownership of property 1 30 contaminated by a hazardous substance, hazardous waste, or 1 31 regulated substance, and that satisfies all of the conditions 1 32 provided in section 455B.381, subsection 7, paragraphs "a", 1 33 "b", and "c", or section 455B.471, subsection 6, paragraph 1 34 "b", subparagraphs (1), (2), and (3), shall not be liable to 1 35 any third party for any third=party liability arising from 2 1 such contamination. 2 2 2. A person that has acquired property contaminated by a 2 3 hazardous substance, hazardous waste, or regulated substance 2 4 shall not be liable to any third party for any third=party 2 5 liability arising by reason of such contamination, provided 2 6 that all of the following apply: 2 7 a. The person does not knowingly cause or permit a new or 2 8 additional hazardous substance, hazardous waste, or regulated 2 9 substance to arise on or from the acquired property that 2 10 injures a third party or contaminates property owned or leased 2 11 by a third party. 2 12 b. The person is not a potentially responsible party or 2 13 affiliated with any potentially responsible party by reason of 2 14 any of the following: 2 15 (1) Any direct or indirect familial relationship. 2 16 (2) Any contractual, corporate, or financial relationship, 2 17 other than a contractual, corporate, or financial relationship 2 18 that is created by the instruments by which title to the 2 19 property is conveyed or financed or by a contract for the sale 2 20 of goods or services. 2 21 (3) A reorganization of a business entity that is or was a 2 22 potentially responsible party. 2 23 Sec. 3. NEW SECTION. 455B.753 ACCESS TO PROPERTY. 2 24 A person that holds indicia of title to property as 2 25 identified in section 455B.752, subsection 1, or a person that 2 26 has acquired property as identified in section 455B.752, 2 27 subsection 2, shall provide reasonable access to the acquired 2 28 property to any potentially responsible party or to any 2 29 authorized regulatory authority for the purpose of 2 30 investigating or evaluating any contamination, planning, or 2 31 preparing a remedial plan for any abatement of the 2 32 contamination, and for any required remediation. 2 33 EXPLANATION 2 34 This bill relates to immunity from third=party liability 2 35 for claims resulting from contaminated property. 3 1 The bill provides that a person that holds indicia of 3 2 ownership of property contaminated by a hazardous substance, 3 3 hazardous waste, or regulated substance, and that satisfies 3 4 certain ownership=related requirements, shall not be liable to 3 5 any third party for any third=party liability arising from 3 6 such contamination. The ownership=related requirements 3 7 include holding indicia of ownership primarily to protect that 3 8 person's security interest in the hazardous condition site, 3 9 where the indicia of ownership was acquired either for the 3 10 purpose of securing payment of a loan or other indebtedness, 3 11 or in the course of protecting the security interest; not 3 12 exhibiting managerial control of, or managerial responsibility 3 13 for, the daily operation of the hazardous condition site 3 14 through the actual, direct, and continual or recurrent 3 15 exercise of managerial control over the hazardous condition 3 16 site in which that person holds a security interest, which 3 17 managerial control materially divests the borrower, debtor, or 3 18 obligor of control; and taking no subsequent action with 3 19 respect to the site which causes or exacerbates a release or 3 20 threatened release of a hazardous substance. 3 21 The bill provides that a person that has acquired property 3 22 contaminated by a hazardous substance, hazardous waste, or 3 23 regulated substance shall not be liable to any third party for 3 24 any third=party liability arising by reason of such 3 25 contamination, provided that the person does not knowingly 3 26 cause or permit a new or additional hazardous substance, 3 27 hazardous waste, or regulated substance to arise on or from 3 28 the acquired property that injures a third party or 3 29 contaminates property owned or leased by a third party, and 3 30 the person is not a potentially responsible party or 3 31 affiliated with any potentially responsible party by reason of 3 32 certain relationships. The relationships include any direct 3 33 or indirect familial relationship; any contractual, corporate, 3 34 or financial relationship, other than a contractual, 3 35 corporate, or financial relationship that is created by the 4 1 instruments by which title to the property is conveyed or 4 2 financed or by a contract for the sale of goods or services; 4 3 or a reorganization of a business entity that is or was a 4 4 potentially responsible party. 4 5 The bill requires a person that holds indicia of title to 4 6 property as identified in this bill or a person that has 4 7 acquired property as identified in this bill to provide 4 8 reasonable access to the acquired property to any potentially 4 9 responsible party or to any authorized regulatory authority 4 10 for the purpose of investigating or evaluating any 4 11 contamination, planning, or preparing a remedial plan for any 4 12 abatement of the contamination, and for any required 4 13 remediation. 4 14 LSB 6160HV 80 4 15 tm/pj/5