House File 2341 - Introduced HOUSE FILE 2341 BY HEATON A BILL FOR An Act relating to disclosure requirements for the sale or 1 rental of certain property that was used for the manufacture 2 of methamphetamine and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5800YH (2) 85 aw/sc

H.F. 2341 Section 1. Section 124C.7, Code 2014, is amended to read as 1 follows: 2 124C.7 Rulemaking authority . 3 1. The department shall adopt rules, in consultation with 4 the department of public health, to do the following: 5 a. Establish disclosure statement requirements for purposes 6 of sections 558A.4, 562A.13, and 562B.14 regarding whether real 7 property has been used for the manufacture of methamphetamine, 8 its salts, isomers, or salts of isomers. 9 b. Establish methamphetamine cleanup standards for the 10 cleanup of real property that has been used for the manufacture 11 of methamphetamine, its salts, isomers, or salts of isomers if 12 the cleanup is performed by a person or entity other than the 13 department. 14 2. The department may adopt rules pursuant to chapter 17A 15 necessary to administer this chapter . 16 Sec. 2. Section 558A.4, subsection 1, Code 2014, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . 0b. (1) The disclosure statement shall 19 include information relating to whether the real property has 20 been used for the manufacture of methamphetamine, its salts, 21 isomers, or salts of isomers, consistent with rules adopted by 22 the department of public safety pursuant to section 124C.7, 23 subsection 1. 24 (2) This paragraph shall not require the disclosure of the 25 use of the real property in the manufacture of methamphetamine, 26 its salts, isomers, or salts of isomers if, after such use 27 terminates, the property is cleaned up by a person or entity 28 in accordance with the methamphetamine cleanup standards 29 established by the department of public safety pursuant to 30 section 124C.7, subsection 1, or by the department. 31 Sec. 3. Section 562A.13, Code 2014, is amended by adding the 32 following new subsection: 33 NEW SUBSECTION . 7. a. If the property has been used 34 for the manufacture of methamphetamine, its salts, isomers, 35 -1- LSB 5800YH (2) 85 aw/sc 1/ 3

H.F. 2341 or salts of isomers, the landlord or a person authorized to 1 enter into a rental agreement on behalf of the landlord shall 2 provide a disclosure statement to each prospective tenant in 3 writing before the commencement of the tenancy notifying the 4 prospective tenant of such use, consistent with rules adopted 5 by the department of public safety pursuant to section 124C.7, 6 subsection 1. 7 b. This subsection shall not require the disclosure of the 8 use of the property in the manufacture of methamphetamine, 9 its salts, isomers, or salts of isomers if, after such use 10 terminates, the property is cleaned up by a person or entity 11 in accordance with the methamphetamine cleanup standards 12 established by the department of public safety pursuant to 13 section 124C.7, subsection 1, or by the department. 14 Sec. 4. Section 562B.14, Code 2014, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 8. a. If the property has been used 17 for the manufacture of methamphetamine, its salts, isomers, 18 or salts of isomers, the landlord or a person authorized to 19 enter into a rental agreement on behalf of the landlord shall 20 provide a disclosure statement to each prospective tenant in 21 writing before the commencement of the tenancy notifying the 22 prospective tenant of such use, consistent with rules adopted 23 by the department of public safety pursuant to section 124C.7, 24 subsection 1. 25 b. This subsection shall not require the disclosure of the 26 use of the property in the manufacture of methamphetamine, 27 its salts, isomers, or salts of isomers if, after such use 28 terminates, the property is cleaned up by a person or entity 29 in accordance with the methamphetamine cleanup standards 30 established by the department of public safety pursuant to 31 section 124C.7, subsection 1, or by the department. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 5800YH (2) 85 aw/sc 2/ 3

H.F. 2341 This bill relates to property used for the manufacture of 1 methamphetamine by requiring that disclosures be made prior to 2 the lease or transfer of the property if the property has not 3 been cleaned up after such use terminates. 4 The bill requires the department of public safety to 5 adopt rules, in consultation with the department of public 6 health, to establish disclosure statement requirements and to 7 establish methamphetamine cleanup standards for the cleanup 8 of real property that has been used for the manufacture of 9 methamphetamine, its salts, isomers, or salts of isomers if 10 the cleanup is performed by a person or entity other than the 11 department. 12 The bill requires that the transferor or lessor of real 13 property disclose whether the property has been used for the 14 manufacture of methamphetamine. The bill, however, provides 15 that disclosure is not required if the real property has 16 been cleaned up by a person or entity in accordance with 17 methamphetamine cleanup standards established by the department 18 of public safety or cleaned up by the department of public 19 safety. 20 Current Code section 714.8(20) provides that if real 21 property is being sold on contract, the contract seller is 22 guilty of a fraudulent practice if the seller intentionally 23 provides inaccurate information on matters required to be 24 included in a disclosure statement. 25 Under current Code sections 562A.3 and 562B.3, relating to 26 residential landlord and tenant laws, the principles of law 27 and equity, including fraud and misrepresentation, apply to 28 rental agreements entered into under those Code chapters unless 29 displaced by the provisions of the Code chapter. 30 -3- LSB 5800YH (2) 85 aw/sc 3/ 3