Senate Study Bill 1007 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act relating to radon control by requiring the state 1 building code commissioner to adopt statewide radon control 2 standards in residential construction, requiring that 3 radon testing, mitigation, or abatement be conducted in 4 schoolhouses and certain residential buildings, requiring 5 certain notifications, providing an income tax credit, 6 and making penalties applicable and including retroactive 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1404XC (6) 85 aw/sc

S.F. _____ Section 1. NEW SECTION . 103A.8D Residential construction 1 requirements and standards for radon control. 2 The state building code commissioner shall adopt as a part 3 of the state building code construction requirements and 4 standards for radon control in new residential construction. 5 The requirements and standards adopted by the commissioner 6 shall, if possible, be based upon a nationally recognized 7 standard or code for radon control in residential construction. 8 Notwithstanding any other provision of this chapter to the 9 contrary, the construction requirements and standards for radon 10 control adopted by the commissioner and approved by the council 11 shall apply to new residential construction commenced on or 12 after January 1, 2015, and shall supersede and replace any 13 minimum requirements and standards for radon control in new 14 residential construction adopted or enacted by a governmental 15 subdivision prior to that date. The state building code 16 commissioner may provide training to builders, contractors, and 17 other interested persons on the construction requirements and 18 standards for radon control in residential construction. 19 Sec. 2. Section 103A.10, Code 2013, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 6. Notwithstanding any other provision of 22 this chapter to the contrary, the construction requirements and 23 standards for radon control in new residential construction 24 adopted by the commissioner and approved by the council shall 25 apply to all new residential construction commenced on or after 26 January 1, 2015, and shall supersede and replace any minimum 27 requirements or standards for radon control in new residential 28 construction adopted or enacted by the governmental subdivision 29 prior to that date. 30 Sec. 3. Section 136B.2, subsection 1, paragraph b, Code 31 2013, is amended to read as follows: 32 b. A Except as otherwise provided in section 558A.4, 33 subsection 1, and section 562A.13, subsection 7, a person shall 34 not disclose to any other person, except to the department, 35 -1- LSB 1404XC (6) 85 aw/sc 1/ 9

S.F. _____ the address or owner of a nonpublic building that the person 1 tested for the presence of radon gas and radon progeny, unless 2 the owner of the building waives, in writing, this right of 3 confidentiality. Any test results disclosed shall be results 4 of a test performed within the five years prior to the date of 5 the disclosure. 6 Sec. 4. Section 136B.2, subsection 2, Code 2013, is amended 7 to read as follows: 8 2. a. Notwithstanding the requirements of this section , 9 disclosure to any person of the results of a test performed 10 on a nonpublic building for the presence of radon gas and 11 radon progeny is not required if the results do not exceed the 12 currently established United States environmental protection 13 agency action guidelines , except as otherwise provided in 14 section 558A.4, subsection 1, and section 562A.13, subsection 15 7 . 16 b. A Except as otherwise provided in section 558A.4, 17 subsection 1, and section 562A.13, subsection 7, a person 18 who tests a nonpublic building which the person owns is not 19 required to disclose to any person the results of a test for 20 the presence of radon gas or progeny if the test is performed 21 by the person who owns the nonpublic building. 22 Sec. 5. Section 136B.4, Code 2013, is amended to read as 23 follows: 24 136B.4 Fees —— rules. 25 1. The department shall establish a fee schedule to defray 26 the costs of the for the certification and credentialing 27 programs established pursuant to section 136B.1 and the testing 28 conducted and the written reports provided pursuant to section 29 136B.3 . Moneys collected from such fees shall be deposited in 30 the radon education fund created in section 136B.7. 31 2. The department shall adopt rules, pursuant to chapter 32 17A , to implement this chapter . 33 Sec. 6. NEW SECTION . 136B.6 Residential construction 34 with the use of public funds —— radon testing and abatement 35 -2- LSB 1404XC (6) 85 aw/sc 2/ 9

S.F. _____ requirements. 1 1. The owner of any residential building constructed with 2 public funds in this state shall upon completion of such 3 construction test the building for the presence of radon gas 4 and radon progeny. The test shall be conducted by a person 5 certified to conduct such testing pursuant to section 136B.1. 6 The cost of the test shall be paid by the owner of the building. 7 2. If the results of testing in such a building exceed the 8 currently established United States environmental protection 9 agency action guidelines, the owner of such a building is 10 required to retain a person credentialed pursuant to section 11 136B.1 to perform appropriate radon abatement measures. 12 3. This section shall only apply to an owner receiving 13 public funds after July 1, 2013, for the construction of a 14 residential building. 15 4. A person who violates this section shall not be subject 16 to the provisions of section 136B.5. 17 Sec. 7. NEW SECTION . 136B.7 Radon education fund. 18 1. A radon education fund is created in the state treasury 19 to be administered by the department of public health. The 20 fund shall consist of all moneys deposited into the fund 21 pursuant to section 136B.4. 22 2. Moneys in the fund shall be used by the department to 23 provide radon program education. 24 3. Notwithstanding section 12C.7, subsection 2, interest or 25 earnings on moneys in the fund shall be credited to the fund. 26 Sec. 8. NEW SECTION . 297.7A Radon testing requirements. 27 1. The board of each school district shall require that each 28 schoolhouse within the district be scheduled for testing and be 29 tested for radon gas and radon progeny pursuant to chapter 136B 30 at least once every ten years by a person certified to conduct 31 such testing pursuant to section 136B.1. 32 2. If the results of testing in a schoolhouse exceed the 33 currently established United States environmental protection 34 agency action guidelines, the school district is required to 35 -3- LSB 1404XC (6) 85 aw/sc 3/ 9

S.F. _____ retain a person credentialed pursuant to section 136B.1 to 1 perform appropriate radon abatement measures. 2 Sec. 9. NEW SECTION . 422.10A Radon mitigation and abatement 3 tax credit. 4 1. The taxes imposed under this division, less the credits 5 allowed under section 422.12, shall be reduced by a radon 6 mitigation and abatement tax credit equal to the lesser of the 7 qualified radon mitigation or abatement costs incurred by the 8 owner of an owner-occupied residence or five hundred dollars. 9 Any credit in excess of the tax liability shall be refunded. 10 2. a. In order for costs of a radon mitigation or abatement 11 project to qualify for a tax credit under this section, the 12 radon mitigation or abatement project must receive approval 13 from a person credentialed under section 136B.1 in abating the 14 level of radon in buildings. 15 b. Approval certifications of mitigation or abatement 16 by a credentialed person shall be on forms approved by the 17 department of public health and shall contain information as 18 required by the department of public health. The information 19 shall, at a minimum, include the approximate date of the start 20 of mitigation or abatement, the approximate date of completion 21 of mitigation or abatement, and the cost of mitigation or 22 abatement. 23 c. The department of public health shall adopt rules 24 identifying costs that qualify as radon mitigation or abatement 25 costs. 26 3. a. Upon completion of the radon mitigation or abatement 27 project, a certification of completion must be obtained from 28 the department of public health. A completion certificate 29 shall identify the person claiming the tax credit under this 30 section and the qualified radon mitigation or abatement costs 31 incurred during the radon mitigation or abatement project. 32 b. The combined amount of qualified radon mitigation or 33 abatement costs certified by the department under subsection 4 34 to receive as tax credits shall not exceed five million dollars 35 -4- LSB 1404XC (6) 85 aw/sc 4/ 9

S.F. _____ for a fiscal year. 1 4. After verifying the eligibility for the tax credit, the 2 department of public health shall issue a radon mitigation and 3 abatement tax credit certificate to be attached to the person’s 4 tax return. Pursuant to the limitation on the amount of tax 5 credit certificates that may be issued for a fiscal year, the 6 tax credit certificates shall be issued on an earliest filed 7 basis. The tax credit certificate shall contain the taxpayer’s 8 name, address, tax identification number, the date of project 9 completion, the amount of credit, and other information 10 required by the department of revenue. 11 5. A radon mitigation or abatement project that does not 12 meet the requirements of this section is subject to revocation, 13 repayment, or recapture of tax credits claimed pursuant to this 14 section. 15 Sec. 10. Section 558A.4, subsection 1, paragraph a, Code 16 2013, is amended to read as follows: 17 a. (1) The disclosure statement shall include information 18 relating to the condition and important characteristics of the 19 property and structures located on the property, including 20 significant defects in the structural integrity of the 21 structure, as provided in rules which shall be adopted by the 22 real estate commission pursuant to section 543B.9 . The rules 23 may require the disclosure to include information relating 24 to the property’s zoning classification; the condition of 25 plumbing, heating, or electrical systems; or the presence of 26 pests. 27 (2) The rules shall require that testing for radon gas 28 and radon progeny be conducted pursuant to chapter 136B on 29 residential structures containing four or fewer dwelling units 30 prior to the sale of the property, and shall require the 31 disclosure of such test results to prospective buyers of the 32 property. 33 Sec. 11. Section 562A.13, Code 2013, is amended by adding 34 the following new subsection: 35 -5- LSB 1404XC (6) 85 aw/sc 5/ 9

S.F. _____ NEW SUBSECTION . 7. The landlord or a person authorized to 1 enter into a rental agreement on behalf of the landlord shall 2 disclose to each tenant in writing before the commencement of 3 the tenancy the results of radon testing conducted pursuant 4 to section 562A.15, subsection 1, paragraph “g” , along with 5 information on the health risks posed by radon gas and radon 6 progeny published by the department of public health. The 7 landlord or a person authorized to enter into a rental 8 agreement on behalf of the landlord shall also disclose this 9 information to current tenants immediately upon receiving the 10 results of such tests. 11 Sec. 12. Section 562A.15, subsection 1, Code 2013, is 12 amended by adding the following new paragraph: 13 NEW PARAGRAPH . g. By January 1, 2015, and every ten years 14 thereafter, test for the presence of radon gas and radon 15 progeny. A test required pursuant to this paragraph shall 16 be conducted by a person certified to conduct such testing 17 pursuant to section 136B.1. 18 Sec. 13. STATE MANDATE FUNDING SPECIFIED. In accordance 19 with section 25B.2, subsection 3, the state cost of requiring 20 compliance with any state mandate included in this Act shall 21 be paid by a school district from state school foundation aid 22 received by the school district under section 257.16. This 23 specification of the payment of the state cost shall be deemed 24 to meet all of the state funding-related requirements of 25 section 25B.2, subsection 3, and no additional state funding 26 shall be necessary for the full implementation of this Act 27 by and enforcement of this Act against all affected school 28 districts. 29 Sec. 14. RETROACTIVE APPLICABILITY. The following 30 provision or provisions of this Act apply retroactively to 31 January 1, 2013, for tax years beginning on or after that date: 32 1. The section of this Act enacting section 422.10A. 33 EXPLANATION 34 This bill relates to radon control standards in residential 35 -6- LSB 1404XC (6) 85 aw/sc 6/ 9

S.F. _____ construction, establishes certain radon testing or abatement to 1 be conducted in schoolhouses and certain residential buildings, 2 and provides an income tax credit for certain radon mitigation 3 and abatement costs. 4 The bill requires that the building code commissioner, with 5 the approval of the building code advisory council, adopt 6 requirements and standards for radon control in new residential 7 construction. The bill provides that the standards shall 8 supersede and replace any minimum radon control requirements 9 and standards for new residential construction adopted by 10 governmental subdivisions in Iowa. The bill requires that the 11 requirements and standards be mandatory for all new residential 12 construction beginning on or after January 1, 2015. 13 Any person who fails to comply with an order to remedy 14 any condition in violation of the adopted requirements and 15 standards within 30 days after service or within the time 16 fixed for compliance, whichever is longer, shall be guilty of 17 a simple misdemeanor pursuant to Code section 103A.21. Any 18 owner, builder, architect, tenant, contractor, subcontractor, 19 construction superintendent or their agents, or any other 20 person taking part or assisting in the construction or use 21 of any building or structure who knowingly violates such 22 requirements and standards shall also be guilty of a simple 23 misdemeanor. A simple misdemeanor is punishable by confinement 24 for no more than 30 days or a fine of at least $65 but not more 25 than $625 or by both. 26 The bill creates a radon education fund to be administered by 27 the department of public health to be used by the department 28 to provide radon program education. The bill provides that 29 certain fees collected by the department be deposited into this 30 fund. Current law provides that these fees be dedicated to 31 certain other uses by the department. 32 The bill requires the owner of any residential building 33 constructed with public funds to test the building for the 34 presence of radon gas and radon progeny upon completion of 35 -7- LSB 1404XC (6) 85 aw/sc 7/ 9

S.F. _____ such construction. The bill requires that an owner of such 1 a building perform appropriate abatement measures if the 2 testing results exceed the currently established United States 3 environmental protection agency action guidelines. These 4 requirements shall apply to owners receiving public funds after 5 July 1, 2013, for the construction of residential buildings. 6 The bill requires that the school board of each school 7 district require each schoolhouse within the district be 8 scheduled for testing and be tested for radon gas and radon 9 progeny at least once every 10 years. The bill requires that 10 a district perform appropriate abatement measures if the 11 testing results exceed the currently established United States 12 environmental protection agency action guidelines. 13 The bill requires that the real estate commission adopt 14 rules requiring testing for radon gas and radon progeny of 15 residential buildings containing four or fewer dwelling units 16 prior to the sale of such property and requires that such 17 results be disclosed to potential buyers of the property. 18 The bill provides that residential landlords shall by 19 January 1, 2015, and every 10 years thereafter, test for 20 the presence of radon gas and radon progeny. The bill also 21 requires that such landlords disclose the results of such tests 22 to new tenants and disclose the results to current tenants 23 immediately upon receiving the results. 24 The bill also provides for a radon mitigation and abatement 25 individual income tax credit of up to $500 for qualified radon 26 mitigation or abatement costs conducted on an owner-occupied 27 residence. The credit is refundable. The combined tax credits 28 awarded shall not exceed $5 million in any given fiscal year. 29 The tax credit applies retroactively to January 1, 2013, for 30 tax years beginning on or after that date. 31 The bill may include a state mandate as defined in Code 32 section 25B.3. The bill requires that the state cost of 33 any state mandate included in the bill be paid by a school 34 district from state school foundation aid received by the 35 -8- LSB 1404XC (6) 85 aw/sc 8/ 9