HF 1523

as introduced - 89th Legislature (2015 - 2016) Posted on 03/10/2015 08:47am

A bill for an act
relating to environment; establishing Minnesota Environmental Contamination
Awareness Act; amending Minnesota Statutes 2014, section 115C.06, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 115B.

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

Section 1.

new text begin [115B.60] ENVIRONMENTAL CONTAMINATION AWARENESS.
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new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section may be cited as the Minnesota Environmental
Contamination Awareness Act.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given them:
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new text begin (1) "agency" means the Minnesota Pollution Control Agency;
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new text begin (2) "buyer" means a person negotiating or offering to acquire, for value, legal or
equitable title or the right to acquire legal or equitable title to real property;
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new text begin (3) "contaminant testing" means measurement and laboratory analysis of an
environmental contaminant using an established laboratory analytical method;
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new text begin (4) "environmental contaminant" means a hazardous substance as defined in
section 115B.02, subdivision 8, pollutant or contaminant as defined in section 115B.02,
subdivision 13, or petroleum as defined in section 115C.02, subdivision 10; and
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new text begin (5) "seller" means a person negotiating or offering to sell for value legal or equitable
title to real property.
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new text begin Subd. 3. new text end

new text begin Required disclosures. new text end

new text begin (a) Before signing an agreement to sell or transfer
real property, the seller must provide a written disclosure to the buyer notifying the
buyer of any information the seller has regarding a vapor intrusion mitigation system
installed on the property that must be maintained to protect human health and prevent
environmental contaminants from entering air inside a building. The disclosure must
include data pertaining to contaminant testing at the property and information regarding
the vapor intrusion mitigation system, including the system description and documentation
of the system.
new text end

new text begin (b) Before signing an agreement to sell or transfer real property, the seller must
provide a written disclosure to the buyer notifying the buyer of any information the seller
has regarding a drinking water treatment system installed on the property and of any
operation and maintenance of the drinking water treatment system necessary to protect
human health and remove environmental contaminants from the drinking water system.
The disclosure must include data pertaining to contaminant testing at the property and
information regarding the drinking water system, including the system description and
documentation of the system.
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new text begin (c) Before signing an agreement to sell or transfer real property, the seller must
provide a written disclosure to the buyer notifying the buyer of any information the seller
has regarding:
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new text begin (1) United States Environmental Protection Agency, Minnesota Pollution Control
Agency, Minnesota Department of Agriculture, or Minnesota Department of Health
records, reports, electronic or written correspondence, or other data requesting access
to the property to:
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new text begin (i) conduct contaminant testing;
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new text begin (ii) install a vapor intrusion mitigation system;
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new text begin (iii) install a treatment system to remove environmental contaminants from drinking
water; or
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new text begin (iv) conduct response actions; and
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new text begin (2) failure of testing, installation, or response actions under clause (1) to be completed.
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new text begin (d) The seller's disclosure requirements in this subdivision do not apply to:
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new text begin (1) a gratuitous transfer;
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new text begin (2) a transfer made pursuant to a court order;
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new text begin (3) a transfer to a government or governmental agency;
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new text begin (4) a transfer by foreclosure or deed in lieu of foreclosure;
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new text begin (5) a transfer to heirs or devisees of a decedent;
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new text begin (6) a transfer from a cotenant to one or more other cotenants;
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new text begin (7) a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller;
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new text begin (8) a transfer between spouses resulting from a decree of marriage dissolution or
from a property settlement agreement incidental to that decree;
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new text begin (9) an option to purchase a unit in a common interest community, until exercised;
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new text begin (10) a transfer to a person who controls or is controlled by the grantor as those terms
are defined with respect to a declarant under section 515B.1-103, clause (2);
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new text begin (11) a transfer to a tenant who is in possession of the real property; or
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new text begin (12) a transfer of special declarant rights under section 515B.3-104.
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new text begin (e) A seller may provide the written disclosure required under this subdivision to a
real estate licensee representing or assisting a prospective buyer. The written disclosure
provided to the real estate licensee representing or assisting a prospective buyer is
considered to have been provided to the prospective buyer. If the written disclosure is
provided to the real estate licensee representing or assisting the prospective buyer, the real
estate licensee must provide a copy to the prospective buyer.
new text end

new text begin (f) A seller is not required to provide a written disclosure if the seller receives written
notification from the agency stating that the agency has determined a vapor intrusion
mitigation system or drinking water treatment system must no longer be maintained to
protect human health, prevent environmental contaminants from entering air inside a
building, or remove environmental contaminants from the drinking water system.
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new text begin Subd. 4. new text end

new text begin Liability; transfer not invalidated. new text end

new text begin (a) A seller who fails to make a
disclosure required under subdivision 3 and who is aware of material facts pertaining to
items to be disclosed under subdivision 3 is liable to the buyer.
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new text begin (b) A buyer who is injured by a violation of this section may bring a civil action and
recover damages and receive other equitable relief as determined by the court. An action
under this subdivision must be commenced within two years after the date on which the
buyer closed the purchase or transfer of the real property.
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new text begin (c) This section does not invalidate a transfer solely because of the failure of any
person to comply with this section. This section does not prevent a court from ordering a
rescission of the transfer.
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new text begin Subd. 5. new text end

new text begin Agency recording of affidavit. new text end

new text begin (a) The agency must record with the
county recorder or registrar of titles of the county in which a property is located an
affidavit containing a legal description of the property that discloses:
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new text begin (1) United States Environmental Protection Agency, Minnesota Pollution Control
Agency, Minnesota Department of Agriculture, or Minnesota Department of Health
records, reports, electronic or written correspondence, or other data requesting access
to the property to:
new text end

new text begin (i) conduct contaminant testing;
new text end

new text begin (ii) install a vapor intrusion mitigation system;
new text end

new text begin (iii) install a treatment system to remove environmental contaminants from drinking
water; or
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new text begin (iv) conduct response actions; and
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new text begin (2) failure of such testing, installation, or response actions to be completed.
new text end

new text begin (b) The county recorder or registrar of titles must record an affidavit presented
according to paragraph (a). The affidavit must be recorded in a manner that ensures
disclosure of the affidavit in the ordinary course of a title search of the subject property.
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new text begin (c) If an affidavit has been recorded under this subdivision and the agency issues a
written determination that a vapor intrusion mitigation system or drinking water treatment
system must no longer be maintained to protect human health, prevent environmental
contaminants from entering air inside a building, or remove environmental contaminants
from the drinking water system, the owner or agency may file with the county recorder or
registrar of titles an affidavit stating the name of the owner, the legal description of the
property, the place and date of filing and document number of the affidavit filed under
paragraph (a), and the approximate date the agency determined the vapor mitigation
system or drinking water treatment system no longer needed to be maintained. Upon
filing the affidavit described in this paragraph, the affidavit and the affidavit filed under
paragraph (a), together with the information set forth in the affidavits, cease to constitute
either actual or constructive notice.
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new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 5 of this section is effective August 1, 2015.
Subdivisions 1 to 4 are effective January 1, 2016, and apply to agreements to sell or
transfer real property executed on or after that date.
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Sec. 2.

Minnesota Statutes 2014, section 115C.06, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Environmental contamination awareness. new text end

new text begin Disclosure of environmental
contaminants, as defined under section 115B.60, must be provided according to section
115B.60.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end