HF 2341 (LSB 5800YH (2) 85)

HOUSE FILE 2341

BY  HEATON

A BILL FOR

An Act relating to disclosure requirements for the sale or rental of certain property that was used for the manufacture of methamphetamine and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 124C.7, Code 2014, is amended to read as follows:
   124C.7  Rulemaking authority.
   1.  The department shall adopt rules, in consultation with the department of public health, to do the following:
   a.  Establish disclosure statement requirements for purposes of sections 558A.4, 562A.13, and 562B.14 regarding whether real property has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers.
   b.  Establish methamphetamine cleanup standards for the cleanup of real property that has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers if the cleanup is performed by a person or entity other than the department.
   2.  The department may adopt rules pursuant to chapter 17A necessary to administer this chapter.
    Sec. 2.  Section 558A.4, subsection 1, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  (1)  The disclosure statement shall include information relating to whether the real property has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers, consistent with rules adopted by the department of public safety pursuant to section 124C.7, subsection 1.
   (2)  This paragraph shall not require the disclosure of the use of the real property in the manufacture of methamphetamine, its salts, isomers, or salts of isomers if, after such use terminates, the property is cleaned up by a person or entity in accordance with the methamphetamine cleanup standards established by the department of public safety pursuant to section 124C.7, subsection 1, or by the department.
    Sec. 3.  Section 562A.13, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  a.  If the property has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers, the landlord or a person authorized to enter into a rental agreement on behalf of the landlord shall provide a disclosure statement to each prospective tenant in writing before the commencement of the tenancy notifying the prospective tenant of such use, consistent with rules adopted by the department of public safety pursuant to section 124C.7, subsection 1.
   b.  This subsection shall not require the disclosure of the use of the property in the manufacture of methamphetamine, its salts, isomers, or salts of isomers if, after such use terminates, the property is cleaned up by a person or entity in accordance with the methamphetamine cleanup standards established by the department of public safety pursuant to section 124C.7, subsection 1, or by the department.
    Sec. 4.  Section 562B.14, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  8.  a.  If the property has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers, the landlord or a person authorized to enter into a rental agreement on behalf of the landlord shall provide a disclosure statement to each prospective tenant in writing before the commencement of the tenancy notifying the prospective tenant of such use, consistent with rules adopted by the department of public safety pursuant to section 124C.7, subsection 1.
   b.  This subsection shall not require the disclosure of the use of the property in the manufacture of methamphetamine, its salts, isomers, or salts of isomers if, after such use terminates, the property is cleaned up by a person or entity in accordance with the methamphetamine cleanup standards established by the department of public safety pursuant to section 124C.7, subsection 1, or by the department.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to property used for the manufacture of methamphetamine by requiring that disclosures be made prior to the lease or transfer of the property if the property has not been cleaned up after such use terminates.
   The bill requires the department of public safety to adopt rules, in consultation with the department of public health, to establish disclosure statement requirements and to establish methamphetamine cleanup standards for the cleanup of real property that has been used for the manufacture of methamphetamine, its salts, isomers, or salts of isomers if the cleanup is performed by a person or entity other than the department.
   The bill requires that the transferor or lessor of real property disclose whether the property has been used for the manufacture of methamphetamine. The bill, however, provides that disclosure is not required if the real property has been cleaned up by a person or entity in accordance with methamphetamine cleanup standards established by the department of public safety or cleaned up by the department of public safety.
   Current Code section 714.8(20) provides that if real property is being sold on contract, the contract seller is guilty of a fraudulent practice if the seller intentionally provides inaccurate information on matters required to be included in a disclosure statement.
   Under current Code sections 562A.3 and 562B.3, relating to residential landlord and tenant laws, the principles of law and equity, including fraud and misrepresentation, apply to rental agreements entered into under those Code chapters unless displaced by the provisions of the Code chapter.