House Study Bill 663 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ENVIRONMENTAL PROTECTION BILL BY CHAIRPERSON OLSON) A BILL FOR An Act relating to private sewage disposal system inspections 1 and groundwater hazard statements as part of certain 2 property transfers. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5548YC (3) 83 tm/rj

H.F. _____ Section 1. Section 455B.172, subsection 11, paragraph a, 1 subparagraph (2), Code Supplement 2009, is amended to read as 2 follows: 3 (2) A transfer to a mortgagee by a mortgagor or successor 4 in interest who is in default, or a transfer by a mortgagee 5 who has acquired real property at a sale conducted pursuant 6 to chapter 654 as a result of a deed in lieu of foreclosure 7 or has acquired real property under chapter 654 or 655A , or a 8 transfer back to a mortgagor exercising a right of first 9 refusal pursuant to section 654.16A , a nonjudicial voluntary 10 foreclosure procedure under section 654.18 or chapter 655A , or 11 a deed in lieu of foreclosure under section 654.19 . 12 Sec. 2. Section 455B.172, subsection 11, paragraph a, 13 Code Supplement 2009, is amended by adding the following new 14 subparagraphs: 15 NEW SUBPARAGRAPH . (7) A transfer in which the transferee 16 intends to demolish or raze the building. The department shall 17 adopt rules pertaining to such transfers. 18 NEW SUBPARAGRAPH . (8) A transfer of property with a system 19 that was installed not more than two years prior to the date of 20 the transfer. 21 NEW SUBPARAGRAPH . (9) A deed arising from a partition 22 proceeding. 23 NEW SUBPARAGRAPH . (10) A tax sale deed issued by the county 24 treasurer. 25 Sec. 3. Section 455B.172, subsection 11, paragraph b, Code 26 Supplement 2009, is amended by striking the paragraph. 27 Sec. 4. Section 455B.172, subsection 11, paragraphs d, h, 28 and i, Code Supplement 2009, are amended to read as follows: 29 d. If a private sewage disposal system is failing to ensure 30 effective wastewater treatment or is otherwise improperly 31 functioning, the private sewage disposal system shall be 32 renovated to meet current construction standards, as adopted 33 by the department, either by the seller or, by agreement, 34 and within a reasonable time period as determined by the 35 -1- LSB 5548YC (3) 83 tm/rj 1/ 5

H.F. _____ county board of health or the department, by the buyer. If 1 the private sewage disposal system is properly treating the 2 wastewater and not creating an unsanitary condition in the 3 environment at the time of inspection, the system is not 4 required to meet current construction standards. 5 h. Following an inspection, the inspection form and any 6 related reports attachments shall be provided to the county 7 board of health and the department for enforcement of any 8 follow-up mandatory system improvement and to the department 9 for record. 10 i. An inspection is valid for a period of two years for 11 any ownership transfers during that period. Title abstracts 12 to property with private sewage disposal systems shall include 13 documentation of the requirements in this subsection . 14 Sec. 5. Section 558.69, Code 2009, is amended to read as 15 follows: 16 558.69 Reporting of private burial sites, wells, disposal 17 sites, underground storage tanks, and hazardous waste , and 18 private sewage disposal systems —— liability. 19 1. With each declaration of value submitted to the county 20 recorder under chapter 428A, there shall also be submitted a 21 groundwater hazard statement regarding whether stating all of 22 the following: 23 a. Whether any known private burial site is situated on the 24 property, and if a known private burial site is situated on the 25 property, the statement shall state the approximate location of 26 the site. The statement shall also state that 27 b. That no known wells are situated on the property, or 28 if known wells are situated on the property, the statement 29 must state the approximate location of each known well and 30 its status with respect to section 455B.190 or 460.302. The 31 statement shall also state that 32 c. That no known disposal site for solid waste, as defined 33 in section 455B.301, which has been deemed to be potentially 34 hazardous by the department of natural resources, exists on 35 -2- LSB 5548YC (3) 83 tm/rj 2/ 5

H.F. _____ the property, or if such a known disposal site does exist, the 1 location of the site on the property. The statement shall 2 additionally state that 3 d. That no known underground storage tank, as defined in 4 section 455B.471, subsection 11, exists on the property, or 5 if a known underground storage tank does exist, the type and 6 size of the tank, and any known substance in the tank. The 7 statement shall also state that 8 e. That no known hazardous waste as defined in section 9 455B.411, subsection 3, or listed by the department pursuant 10 to section 455B.412, subsection 1, exists on the property, or 11 if known hazardous waste does exist, that the waste is being 12 managed in accordance with rules adopted by the department of 13 natural resources. 14 f. That no known private sewage disposal system exists 15 on the property or, if such private sewage disposal system 16 exists, that the system has been inspected pursuant to section 17 455B.172, subsection 11. 18 2. The groundwater hazard statement shall be signed by at 19 least one of the sellers or their agents. 20 3. The county recorder shall refuse to record any deed, 21 instrument, or writing for which a declaration of value 22 is required under chapter 428A unless the groundwater 23 hazard statement required by this section has been submitted 24 to the county recorder. 25 4. A buyer of property shall be provided with a copy of the 26 submitted groundwater hazard statement by the seller submitted, 27 and, following the fulfillment of this provision, if the 28 statement submitted reveals no private burial site, well, 29 disposal site, underground storage tank, or hazardous waste on 30 the property, the county recorder may destroy the statement . 31 5. The land application of sludges or soils resulting 32 from the remediation of underground storage tank releases 33 accomplished in compliance with department of natural resources 34 rules without a permit is not required to be reported as the 35 -3- LSB 5548YC (3) 83 tm/rj 3/ 5

H.F. _____ disposal of solid waste or hazardous waste. 1 If a declaration of value is not required, the above 2 information shall be submitted on a separate form. 3 6. The director of the department of natural resources shall 4 prescribe the form of the groundwater hazard statement and the 5 separate form to be supplied by each county recorder in the 6 state . 7 7. The county recorder shall transmit the groundwater 8 hazard statements to the department of natural resources 9 at times and in a manner directed by the director of the 10 department. 11 8. The owner of the property is responsible for the accuracy 12 of the information submitted on the form groundwater hazard 13 statement . The owner’s agent shall not be liable for the 14 accuracy of information provided by the owner of the property. 15 The provisions of this paragraph subsection do not limit 16 liability which may be imposed under a contract or under any 17 other law. 18 Sec. 6. Section 558A.1, subsection 4, paragraph b, Code 19 2009, is amended to read as follows: 20 b. A transfer to a mortgagee by a mortgagor or successor 21 in interest who is in default, or a transfer by a mortgagee 22 who has acquired real property at a sale conducted pursuant 23 to chapter 654 as a result of a deed in lieu of foreclosure 24 or has acquired real property under chapter 654 or 655A , or a 25 transfer back to a mortgagor exercising a right of first 26 refusal pursuant to section 654.16A , a nonjudicial voluntary 27 foreclosure procedure under section 654.18 or chapter 655A , or 28 a deed in lieu of foreclosure under section 654.19 . 29 EXPLANATION 30 This bill relates to private sewage disposal system 31 inspections and groundwater hazard statements. 32 Currently, a building where a person resides, congregates, 33 or is employed that is served by a private sewage disposal 34 system shall have the sewage disposal system serving the 35 -4- LSB 5548YC (3) 83 tm/rj 4/ 5

H.F. _____ building inspected prior to any transfer of ownership of the 1 building. Certain types of transfers of ownership do not 2 trigger the inspection requirement. The bill adds certain 3 types of transfers of ownership to that list of transfers 4 that are not subject to the inspection requirement. The bill 5 eliminates the requirement that title abstracts to property 6 with private sewage disposal systems include documentation of 7 an inspection. 8 Currently, when a declaration of value is submitted to the 9 county recorder, a statement is submitted to the recorder 10 relating to the property and any known private burial sites, 11 known wells, known disposal sites, known underground storage 12 tanks, and known hazardous waste. The bill titles this 13 statement a “groundwater hazard statement”. The bill provides 14 that the statement shall also include whether a known private 15 sewage disposal system exists, and if one exists, that the 16 system has been inspected. 17 -5- LSB 5548YC (3) 83 tm/rj 5/ 5