SF 1973

Introduction - 86th Legislature (2009 - 2010)

Posted on 02/09/2010 02:24 a.m.

A bill for an act
relating to real estate; regulating real estate transactions involving potential
methamphetamine contamination; requiring training; authorizing certain testing;
providing remedies; amending Minnesota Statutes 2008, sections 82.22,
by adding a subdivision; 82.32; 82.41, by adding a subdivision; 152.0275,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 82.22, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Methamphetamine health hazards. new text end

new text begin Licensees shall provide any
prospective purchaser with written informational materials that adequately outline the
health hazards resulting from exposure to methamphetamine and list warning signs that
often exist on property on which a clandestine lab site as defined in section 152.0275,
subdivision 1, paragraph (a), clause (1), had been established.
new text end

Sec. 2.

Minnesota Statutes 2008, section 82.32, is amended to read:

82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.

(a) All real estate salespersons and all real estate brokers shall be required to
successfully complete 30 hours of real estate continuing education, either as a student or
a lecturer, in courses of study approved by the commissioner, during the initial license
period and during each succeeding 24-month license period. At least 15 of the 30 credit
hours must be completed during the first 12 months of the 24-month licensing period.
Licensees may not claim credit for continuing education not actually completed as of the
date their report of continuing education compliance is filed.

(b) The commissioner may adopt rules defining the standards for course and
instructor approval, and may adopt rules for the proper administration of prelicense
instruction as required under section 82.29, subdivision 8, and continuing education
as required under this section and sections 82.29; 82.31, subdivisions 5 and 6; 82.33,
subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course which
can be completed by the student at home or outside the classroom without the supervision
of an instructor except accredited courses using new delivery technology, including
interactive technology, and the Internet. The commissioner may approve courses of study
in the real estate field offered in educational institutions of higher learning in this state or
courses of study in the real estate field developed by and offered under the auspices of the
National Association of Realtors, its affiliates, or private real estate schools. Courses in
motivation, salesmanship, psychology, or time management shall not be approved by the
commissioner for continuing education credit. The commissioner may approve courses in
any other subjects, including, but not limited to, communication, marketing, negotiation,
and technology for continuing education credit.

(c) Any program approved by Minnesota continuing legal education shall be
approved by the commissioner of commerce for continuing education for real estate
brokers and salespeople if the program or any part thereof relates to real estate.

(d) As part of the continuing education requirements of this section and sections
82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the
commissioner shall require that all real estate brokers and salespersons receive:

(1) at least one hour of training during each license period in courses in laws or
regulations on agency representation and disclosure; deleted text begin and
deleted text end

(2) at least one hour of training during each license period in courses in state and
federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses
designed to help licensees to meet the housing needs of immigrant and other underserved
populations deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) at least one hour of training during each license period in courses in the health
hazards resulting from exposure to methamphetamine and how to recognize indications of
methamphetamine production on property.
new text end

Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers
engaged solely in the commercial real estate business who file with the commissioner
a verification of this status along with the continuing education report required under
paragraph (a).

(e) The commissioner is authorized to establish a procedure for renewal of course
accreditation.

(f) Approved continuing education courses may be sponsored or offered by a broker
of a real estate company and may be held on the premises of a company licensed under
this chapter. All continuing education course offerings must be open to any interested
individuals. Access may be restricted by the sponsor based on class size only. Courses
must not be approved if attendance is restricted to any particular group of people. A broker
must comply with all continuing education rules prescribed by the commissioner. The
commissioner shall not approve any prelicense instruction courses offered by, sponsored
by, or affiliated with any person or company licensed to engage in the real estate business.

(g) Credit may not be earned if the licensee has previously obtained credit for the
same course as either a student or instructor during the same licensing period.

(h) The real estate education course completion certificate must be in the form set
forth by the commissioner.

Students are responsible for maintaining copies of course completion certificates.

Sec. 3.

Minnesota Statutes 2008, section 82.41, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Methamphetamine testing provision. new text end

new text begin No purchase agreement, earnest
money contract, or similar contract for the purchase of residential real property is valid
and enforceable unless it includes a box to be checked by the buyer to request or decline a
methamphetamine test of the property, to be done at the buyer's expense, by a certified
testing facility. If the test results are positive, the seller must reimburse the buyer for the
testing expense, and the buyer has the right to cancel the contract pursuant to section
559.217.
new text end

Sec. 4.

Minnesota Statutes 2008, section 152.0275, subdivision 2, is amended to read:

Subd. 2.

Property-related prohibitions; notice; Web site.

(a) As used in this
subdivision:

(1) "clandestine lab site" has the meaning given in subdivision 1, paragraph (a);

(2) "property" means publicly or privately owned real property including buildings
and other structures, motor vehicles as defined in section 609.487, subdivision 2a, public
waters, and public rights-of-way;

(3) "remediation" has the meaning given in subdivision 1, paragraph (a); and

(4) "removal" has the meaning given in subdivision 1, paragraph (a).

(b) A peace officer who arrests a person at a clandestine lab site shall notify the
appropriate county or local health department, state duty officer, and child protection
services of the arrest and the location of the site.

(c) A county or local health department or sheriff shall order that any property or
portion of a property that has been found to be a clandestine lab site and contaminated by
substances, chemicals, or items of any kind used in the manufacture of methamphetamine
or any part of the manufacturing process, or the by-products or degradates of
manufacturing methamphetamine be prohibited from being occupied or used until it has
been assessed and remediated as provided in the Department of Health's clandestine drug
labs general cleanup guidelines. The remediation shall be accomplished by a contractor
who will make the verification required under paragraph (e).

(d) Unless clearly inapplicable, the procedures specified in chapter 145A and any
related rules adopted under that chapter addressing the enforcement of public health laws,
the removal and abatement of public health nuisances, and the remedies available to
property owners or occupants apply to this subdivision.

(e) Upon the proper removal and remediation of any property used as a clandestine
lab site, the contractor shall verify to the property owner and the applicable authority
that issued the order under paragraph (c) that the work was completed according to
the Department of Health's clandestine drug labs general cleanup guidelines and best
practices. The contractor shall provide the verification to the property owner and the
applicable authority within five days from the completion of the remediation. Following
this, the applicable authority shall vacate its order.

(f) If a contractor issues a verification and the property was not remediated according
to the Department of Health's clandestine drug labs general cleanup guidelines, the
contractor is liable to the property owner for the additional costs relating to the proper
remediation of the property according to the guidelines and for reasonable attorney fees
for collection of costs by the property owner. An action under this paragraph must be
commenced within six years from the date on which the verification was issued by the
contractor.

(g) If the applicable authority determines under paragraph (c) that a motor vehicle
has been contaminated by substances, chemicals, or items of any kind used in the
manufacture of methamphetamine or any part of the manufacturing process, or the
by-products or degradates of manufacturing methamphetamine and if the authority is able
to obtain the certificate of title for the motor vehicle, the authority shall notify the registrar
of motor vehicles of this fact and in addition, forward the certificate of title to the registrar.
The authority shall also notify the registrar when it vacates its order under paragraph (e).

(h) The applicable authority issuing an order under paragraph (c) shall record with
the county recorder or registrar of titles of the county where the clandestine lab is located
an affidavit containing the name of the owner, a legal description of the property where the
clandestine lab was located, and a map drawn from available information showing the
boundary of the property and the location of the contaminated area on the property that is
prohibited from being occupied or used that discloses to any potential transferee:

(1) that the property, or portion of the property, was the site of a clandestine lab;

(2) the location, condition, and circumstances of the clandestine lab, to the full
extent known or reasonably ascertainable; and

(3) that the use of the property or some portion of it may be restricted as provided by
paragraph (c).

If an inaccurate drawing or description is filed, the authority, on request of the owner or
another interested person, shall file a supplemental affidavit with a corrected drawing
or description.

If the authority vacates its order under paragraph (e), the authority shall record an affidavit
that contains the recording information of the above affidavit and states that the order is
vacated. Upon filing the affidavit vacating the order, the affidavit and the affidavit filed
under this paragraph, together with the information set forth in the affidavits, cease to
constitute either actual or constructive notice.

(i) If proper removal and remediation has occurred on the property, an interested
party may record an affidavit indicating that this has occurred. Upon filing the affidavit
described in this paragraph, the affidavit and the affidavit filed under paragraph (h),
together with the information set forth in the affidavits, cease to constitute either actual
or constructive notice. Failure to record an affidavit under this section does not affect or
prevent any transfer of ownership of the property.

(j) The county recorder or registrar of titles must record all affidavits presented under
paragraph (h) or (i) in a manner that ensures their disclosure in the ordinary course of a
title search of the subject property.

(k) The commissioner of health shall post on the Internet contact information for
each local community health services administrator.

(l) Each local community health services administrator shall maintain information
related to property within the administrator's jurisdiction that is currently or was previously
subject to an order issued under paragraph (c). The information maintained must include
the name of the owner, the location of the property, the extent of the contamination, the
status of the removal and remediation work on the property, and whether the order has
been vacated. The administrator shall make this information available to the public either
upon request or by other means.

(m) Before signing an agreement to sell or transfer real property, the seller
or transferor must disclose in writing to the buyer or transferee if, to the seller's or
transferor's knowledge, methamphetamine production has occurred on the property. If
methamphetamine production has occurred on the property, the disclosure shall include a
statement to the buyer or transferee informing the buyer or transferee:

(1) whether an order has been issued on the property as described in paragraph (c);

(2) whether any orders issued against the property under paragraph (c) have been
vacated under paragraph (j); or

(3) if there was no order issued against the property and the seller or transferor
is aware that methamphetamine production has occurred on the property, the status of
removal and remediation on the property.

(n) deleted text begin Unless the buyer or transferee and seller or transferor agree to the contrary in
writing before the closing of the sale, deleted text end A seller or transferor who fails to disclose, to the
best of their knowledge, at the time of sale any of the facts required, and who knew or
had reason to know of methamphetamine production on the property, is liable to the
buyer or transferee for:

(1) costs relating to remediation of the property according to the Department of
Health's clandestine drug labs general cleanup guidelines and best practices new text begin and other
costs incurred by the buyer as a result of the failure to disclose new text end ; deleted text begin and
deleted text end

(2) reasonable attorney fees for collection of costs from the seller or transferor deleted text begin . deleted text end new text begin ;
new text end

new text begin (3) any property value loss attributable to the failure to disclose; and
new text end

new text begin (4) damages for bodily injury incurred as a result of exposure to contaminated
property that has not been remediated.
new text end

An action under this paragraph must be commenced within six years after the date on
which the buyer or transferee closed the purchase or transfer of the real property where the
methamphetamine production occurred.

(o) This section preempts all local ordinances relating to the sale or transfer of real
property designated as a clandestine lab site.

Sec. 5.

new text begin [325E.66] HOME INSPECTORS; REQUIRED TRAINING.
new text end

new text begin A governmental subdivision that licenses or otherwise regulates home inspectors
shall require each inspector to receive at least one hour during each licensing or regulatory
period in courses in the health hazards resulting from exposure to methamphetamine and
how to recognize indications of methamphetamine production on property being inspected.
new text end