HF 4825

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:16pm

A bill for an act
relating to health; modifying requirements for well disclosure certificates;
establishing a fee; appropriating money; amending Minnesota Statutes 2022,
section 103I.235, subdivision 1, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 103I.235, subdivision 1, is amended to read:

Subdivision 1.

Disclosure of wells to buyer.

(a) Before signing an agreement to sell or
transfer real property, the seller must disclose in writing to the buyer information about the
status and location of all known wells on the property, by delivering to the buyer either a
statement by the seller that the seller does not know of any wells on the property, or a
disclosure statement indicating the legal description and county, and a map drawn from
available information showing the location of each well to the extent practicable. In the
disclosure statement, the seller must indicate, for each well, whether the well is in use, not
in use, or sealed.

(b) At the time of closing of the sale, the disclosure statement information, name and
mailing address of the buyer, and the quartile, section, township, and range in which each
well is located must be provided on a well disclosure certificate signed by the seller or a
person authorized to act on behalf of the seller. new text begin This paragraph expires the earlier of July
31, 2027, or one day before the date the commissioner specifies in the State Register
according to subdivision 1a.
new text end

new text begin (c) This paragraph is effective the earlier of August 1, 2027, or the date the commissioner
specifies in the State Register according to subdivision 1a. Before closing of the sale, the
seller or a person authorized to act on behalf of the seller must submit to the commissioner
a well disclosure certificate that is signed by the seller or person authorized to act on behalf
of the seller and that contains the following information:
new text end

new text begin (1) the disclosure statement information;
new text end

new text begin (2) the name and mailing address of the buyer; and
new text end

new text begin (3) either:
new text end

new text begin (i) the quartile, section, township, and range where each well is located; or
new text end

new text begin (ii) the lot, block, and plat name where each well is located.
new text end

new text begin The well disclosure certificate must be accompanied by a nonrefundable fee of $50 payable
to the Department of Health. Upon receipt of the well disclosure certificate and fee, the
commissioner must provide a well disclosure certificate number to the person who submitted
the well disclosure certificate. The well disclosure certificate number must appear on the
deed or other instrument of conveyance to indicate that a well disclosure certificate was
submitted for the real property. Well disclosure certificate numbers shall be used by county
recorders and registrars of titles and may be used by other interested persons. The
commissioner must maintain the well disclosure certificate for six years after the date of
submission.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end A well disclosure certificate deleted text begin need not be provided deleted text end new text begin is not required new text end if the seller does
not know of any wells on the property and the deed or other instrument of conveyance
contains the statement: "The Seller certifies that the Seller does not know of any wells on
the described real property."

deleted text begin (d) deleted text end new text begin (e) new text end If a deed is given pursuant to a contract for deed, the well disclosure certificate
required by this subdivision shall be signed by the buyer or a person authorized to act on
behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure
certificate is not required if the following statement appears on the deed followed by the
signature of the grantee or, if there is more than one grantee, the signature of at least one
of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the
described real property." The statement and signature of the grantee may be on the front or
back of the deed or on an attached sheet and an acknowledgment of the statement by the
grantee is not required for the deed to be recordable.

deleted text begin (e) deleted text end new text begin (f) new text end This subdivision does not apply to the sale, exchange, or transfer of real property:

(1) that consists solely of a sale or transfer of severed mineral interests; or

(2) that consists of an individual condominium unit as described in chapters 515 and
515B.

deleted text begin (f) deleted text end new text begin (g) new text end For an area owned in common under chapter 515 or 515B the association or other
responsible person must report to the commissioner by July 1, 1992, the location and status
of all wells in the common area. The association or other responsible person must notify
the commissioner within 30 days of any change in the reported status of wells.

deleted text begin (g) deleted text end new text begin (h) new text end If the seller fails to provide a required well disclosure certificate, the buyer, or a
person authorized to act on behalf of the buyer, may sign a well disclosure certificate based
on the information provided on the disclosure statement required by this section or based
on other available information. new text begin This paragraph expires the earlier of July 31, 2027, or one
day before the date the commissioner specifies in the State Register according to subdivision
1a.
new text end

new text begin (i) This paragraph is effective the earlier of August 1, 2027, or the date the commissioner
specifies in the State Register according to subdivision 1a. If the seller fails to submit a
required well disclosure certificate to the commissioner, the buyer or a person authorized
to act on behalf of the buyer may sign a well disclosure certificate based on the information
provided in the disclosure statement required by this section or based on other available
information and may submit the well disclosure certificate according to paragraph (c).
new text end

deleted text begin (h) deleted text end new text begin (j) new text end A county recorder or registrar of titles may not record a deed or other instrument
of conveyance dated after October 31, 1990, for which a certificate of value is required
under section 272.115, or any deed or other instrument of conveyance dated after October
31, 1990, from a governmental body exempt from the payment of state deed tax, unless the
deed or other instrument of conveyance contains the statement made in accordance with
paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all the
information required by paragraph (b) or (d). The county recorder or registrar of titles must
not accept a certificate unless it contains all the required information. The county recorder
or registrar of titles shall note on each deed or other instrument of conveyance accompanied
by a well disclosure certificate that the well disclosure certificate was received. The notation
must include the statement "No wells on property" if the disclosure certificate states there
are no wells on the property. The well disclosure certificate shall not be filed or recorded
in the records maintained by the county recorder or registrar of titles. After noting "No wells
on property" on the deed or other instrument of conveyance, the county recorder or registrar
of titles shall destroy or return to the buyer the well disclosure certificate. The county
recorder or registrar of titles shall collect from the buyer or the person seeking to record a
deed or other instrument of conveyance, a fee of $50 for receipt of a completed well
disclosure certificate. By the tenth day of each month, the county recorder or registrar of
titles shall transmit the well disclosure certificates to the commissioner of health. By the
tenth day after the end of each calendar quarter, the county recorder or registrar of titles
shall transmit to the commissioner of health $42.50 of the fee for each well disclosure
certificate received during the quarter. The commissioner shall maintain the well disclosure
certificate for at least six years. The commissioner may store the certificate as an electronic
image. A copy of that image shall be as valid as the original. new text begin This paragraph expires the
earlier of July 31, 2027, or one day before the date the commissioner specifies in the State
Register according to subdivision 1a.
new text end

new text begin (k) This paragraph is effective the earlier of August 1, 2027, or the date the commissioner
specifies in the State Register according to subdivision 1a. A county recorder or registrar
of titles must not record a deed or other instrument of conveyance for which a certificate
of value is required under section 272.115 or any other deed or instrument of conveyance
from a governmental body exempt from the payment of state deed tax, unless the deed or
other instrument of conveyance contains:
new text end

new text begin (1) the statement made in accordance with paragraph (d) or (e); or
new text end

new text begin (2) the well disclosure certificate number provided by the commissioner according to
paragraph (c).
new text end

deleted text begin (i) deleted text end new text begin (l) new text end No new well disclosure certificate is required under this subdivision if the buyer
or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed
or other instrument of conveyance that the status and number of wells on the property have
not changed since the last previously filed well disclosure certificate. The following
statement, if followed by the signature of the person making the statement, is sufficient to
comply with the certification requirement of this paragraph: "I am familiar with the property
described in this instrument and I certify that the status and number of wells on the described
real property have not changed since the last previously filed well disclosure certificate."
The certification and signature may be on the front or back of the deed or on an attached
sheet and an acknowledgment of the statement is not required for the deed or other instrument
of conveyance to be recordable. new text begin This paragraph expires the earlier of July 31, 2027, or one
day before the date the commissioner specifies in the State Register according to subdivision
1a.
new text end

new text begin (m) Effective the earlier of August 1, 2027, or the date the commissioner specifies in
the State Register according to subdivision 1a, the county recorder or registrar of titles must:
new text end

new text begin (1) verify that the seller's name, the buyer's name and mailing address, and the legal
description of the deed or other instrument of conveyance matches those provided on the
well disclosure certificate; and
new text end

new text begin (2) validate the verified well disclosure certificate using the information technology
system administered by the commissioner.
new text end

deleted text begin (j) The commissioner in consultation with county recorders shall prescribe the form for
a well disclosure certificate and provide well disclosure certificate forms to county recorders
and registrars of titles and other interested persons.
deleted text end

deleted text begin (k) deleted text end new text begin (n) new text end Failure to comply with a requirement of this subdivision does not impair:

(1) the validity of a deed or other instrument of conveyance as between the parties to
the deed or instrument or as to any other person who otherwise would be bound by the deed
or instrument; or

(2) the record, as notice, of any deed or other instrument of conveyance accepted for
filing or recording contrary to the provisions of this subdivision.

Sec. 2.

Minnesota Statutes 2022, section 103I.235, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Implementation of well disclosure certificate information technology
system. new text end

new text begin The commissioner must implement the well disclosure certificate information
technology system no later than June 30, 2027, and must provide notice to the chairs and
ranking minority members of the legislative committees with jurisdiction over public health
when the information technology system is implemented. The commissioner must, by
publication in the State Register, specify a date by which county recorders and registrars
of titles must comply with subdivision 1, paragraph (m). This date must be at least three
months after the commissioner publishes the date in the State Register.
new text end

Sec. 3.

Minnesota Statutes 2022, section 103I.235, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Responsible person. new text end

new text begin Following the closing of the sale of real property, the
new property owner is the responsible person for any wells located on the property.
new text end

Sec. 4. new text begin APPROPRIATION; WELL DISCLOSURE CERTIFICATION
INFORMATION TECHNOLOGY SYSTEM.
new text end

new text begin $....... in fiscal year 2025 is appropriated from the general fund to the commissioner of
health for the development of an information technology system for well disclosure
certificates that allows electronic submission of well disclosure certificates, accepts fee
payments, provides for issuance of well disclosure certificate numbers, and contains a
searchable database of well disclosure certificates. This is a onetime appropriation and is
available until June 30, 2027. The commissioner must incorporate any ongoing costs for
the well disclosure certificate information technology system into a service-level agreement
and must pay those costs to the Department of Information Technology Services under the
rates and mechanisms specified in the agreement.
new text end