1.1                          A bill for an act
  1.2             relating to real estate; requiring a disclosure in 
  1.3             connection with the sale of certain real property in 
  1.4             Washington county; providing for well testing notice 
  1.5             and disclosure; amending Minnesota Statutes 2002, 
  1.6             section 103I.235, subdivision 1; proposing coding for 
  1.7             new law in Minnesota Statutes, chapter 103I. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 103I.235, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [DISCLOSURE OF WELLS TO BUYER.] (a)(1) 
  1.12  Before signing an agreement to sell or transfer real property, 
  1.13  the seller must disclose in writing to the buyer information 
  1.14  about the status and location of all known wells on the 
  1.15  property, by delivering to the buyer either a statement by the 
  1.16  seller that the seller does not know of any wells on the 
  1.17  property, or a disclosure statement indicating the legal 
  1.18  description and county, and a map drawn from available 
  1.19  information showing the location of each well to the extent 
  1.20  practicable.  In the disclosure statement, the seller must 
  1.21  indicate, for each well, whether the well is in use, not in use, 
  1.22  or sealed.  
  1.23     (2) Before signing an agreement to sell or transfer real 
  1.24  property in Washington county that is not served by a municipal 
  1.25  water system, the seller must state in writing to the buyer 
  1.26  whether, to the seller's knowledge, the property is located 
  2.1   within a special well construction area designated by the 
  2.2   commissioner of health under Minnesota Rules, part 4725.3650.  
  2.3   If the disclosure under clause (1) states that there is an 
  2.4   unsealed well on the property, the disclosure required under 
  2.5   this clause must be made regardless of whether the property is 
  2.6   served by a municipal water system. 
  2.7      (b) At the time of closing of the sale, the disclosure 
  2.8   statement information required under paragraph (a), clause (1), 
  2.9   name and mailing address of the buyer, and the quartile, 
  2.10  section, township, and range in which each well is located must 
  2.11  be provided on a well disclosure certificate signed by the 
  2.12  seller or a person authorized to act on behalf of the seller. 
  2.13     (c) A well disclosure certificate need not be provided if 
  2.14  the seller does not know of any wells on the property and the 
  2.15  deed or other instrument of conveyance contains the statement:  
  2.16  "The Seller certifies that the Seller does not know of any wells 
  2.17  on the described real property."  
  2.18     (d) If a deed is given pursuant to a contract for deed, the 
  2.19  well disclosure certificate required by this subdivision shall 
  2.20  be signed by the buyer or a person authorized to act on behalf 
  2.21  of the buyer.  If the buyer knows of no wells on the property, a 
  2.22  well disclosure certificate is not required if the following 
  2.23  statement appears on the deed followed by the signature of the 
  2.24  grantee or, if there is more than one grantee, the signature of 
  2.25  at least one of the grantees:  "The Grantee certifies that the 
  2.26  Grantee does not know of any wells on the described real 
  2.27  property."  The statement and signature of the grantee may be on 
  2.28  the front or back of the deed or on an attached sheet and an 
  2.29  acknowledgment of the statement by the grantee is not required 
  2.30  for the deed to be recordable. 
  2.31     (e) This subdivision does not apply to the sale, exchange, 
  2.32  or transfer of real property:  
  2.33     (1) that consists solely of a sale or transfer of severed 
  2.34  mineral interests; or 
  2.35     (2) that consists of an individual condominium unit as 
  2.36  described in chapters 515 and 515B. 
  3.1      (f) For an area owned in common under chapter 515 or 515B 
  3.2   the association or other responsible person must report to the 
  3.3   commissioner by July 1, 1992, the location and status of all 
  3.4   wells in the common area.  The association or other responsible 
  3.5   person must notify the commissioner within 30 days of any change 
  3.6   in the reported status of wells. 
  3.7      (g) For real property sold by the state under section 
  3.8   92.67, the lessee at the time of the sale is responsible for 
  3.9   compliance with this subdivision. 
  3.10     (h) If the seller fails to provide a required well 
  3.11  disclosure certificate, the buyer, or a person authorized to act 
  3.12  on behalf of the buyer, may sign a well disclosure certificate 
  3.13  based on the information provided on the disclosure statement 
  3.14  required by this section or based on other available information.
  3.15     (i) A county recorder or registrar of titles may not record 
  3.16  a deed or other instrument of conveyance dated after October 31, 
  3.17  1990, for which a certificate of value is required under section 
  3.18  272.115, or any deed or other instrument of conveyance dated 
  3.19  after October 31, 1990, from a governmental body exempt from the 
  3.20  payment of state deed tax, unless the deed or other instrument 
  3.21  of conveyance contains the statement made in accordance with 
  3.22  paragraph (c) or (d) or is accompanied by the well disclosure 
  3.23  certificate containing all the information required by paragraph 
  3.24  (b) or (d).  The county recorder or registrar of titles must not 
  3.25  accept a certificate unless it contains all the required 
  3.26  information.  The county recorder or registrar of titles shall 
  3.27  note on each deed or other instrument of conveyance accompanied 
  3.28  by a well disclosure certificate that the well disclosure 
  3.29  certificate was received.  The notation must include the 
  3.30  statement "No wells on property" if the disclosure certificate 
  3.31  states there are no wells on the property.  The well disclosure 
  3.32  certificate shall not be filed or recorded in the records 
  3.33  maintained by the county recorder or registrar of titles.  After 
  3.34  noting "No wells on property" on the deed or other instrument of 
  3.35  conveyance, the county recorder or registrar of titles shall 
  3.36  destroy or return to the buyer the well disclosure certificate.  
  4.1   The county recorder or registrar of titles shall collect from 
  4.2   the buyer or the person seeking to record a deed or other 
  4.3   instrument of conveyance, a fee of $30 for receipt of a 
  4.4   completed well disclosure certificate.  By the tenth day of each 
  4.5   month, the county recorder or registrar of titles shall transmit 
  4.6   the well disclosure certificates to the commissioner of health.  
  4.7   By the tenth day after the end of each calendar quarter, the 
  4.8   county recorder or registrar of titles shall transmit to the 
  4.9   commissioner of health $27.50 of the fee for each well 
  4.10  disclosure certificate received during the quarter.  The 
  4.11  commissioner shall maintain the well disclosure certificate for 
  4.12  at least six years.  The commissioner may store the certificate 
  4.13  as an electronic image.  A copy of that image shall be as valid 
  4.14  as the original. 
  4.15     (j) No new well disclosure certificate is required under 
  4.16  this subdivision if the buyer or seller, or a person authorized 
  4.17  to act on behalf of the buyer or seller, certifies on the deed 
  4.18  or other instrument of conveyance that the status and number of 
  4.19  wells on the property have not changed since the last previously 
  4.20  filed well disclosure certificate.  The following statement, if 
  4.21  followed by the signature of the person making the statement, is 
  4.22  sufficient to comply with the certification requirement of this 
  4.23  paragraph:  "I am familiar with the property described in this 
  4.24  instrument and I certify that the status and number of wells on 
  4.25  the described real property have not changed since the last 
  4.26  previously filed well disclosure certificate."  The 
  4.27  certification and signature may be on the front or back of the 
  4.28  deed or on an attached sheet and an acknowledgment of the 
  4.29  statement is not required for the deed or other instrument of 
  4.30  conveyance to be recordable. 
  4.31     (k) The commissioner in consultation with county recorders 
  4.32  shall prescribe the form for a well disclosure certificate and 
  4.33  provide well disclosure certificate forms to county recorders 
  4.34  and registrars of titles and other interested persons. 
  4.35     (l) Failure to comply with a requirement of this 
  4.36  subdivision does not impair: 
  5.1      (1) the validity of a deed or other instrument of 
  5.2   conveyance as between the parties to the deed or instrument or 
  5.3   as to any other person who otherwise would be bound by the deed 
  5.4   or instrument; or 
  5.5      (2) the record, as notice, of any deed or other instrument 
  5.6   of conveyance accepted for filing or recording contrary to the 
  5.7   provisions of this subdivision.  
  5.8      Sec. 2.  [103I.237] [REAL PROPERTY SALE; TEST RESULTS 
  5.9   PROVIDED TO BUYER.] 
  5.10     Subdivision 1.  [PROVISION OF TEST RESULTS.] Before signing 
  5.11  an agreement to sell or transfer real property, the seller must 
  5.12  provide to the buyer, for each well connected to the potable 
  5.13  water system of a building intended for human habitation or 
  5.14  occupancy, the results of a well test for nitrate plus nitrite, 
  5.15  total coliform bacteria, and arsenic performed by an 
  5.16  environmental laboratory certified for those analytes under 
  5.17  Minnesota Rules, part 4740.2040, subparts 2, item B, and 3, item 
  5.18  B.  The test must have been performed within one year preceding 
  5.19  the date of delivery of the test results to the buyer.  The test 
  5.20  results or accompanying documentation must indicate whether the 
  5.21  results are within acceptable limits for nitrate plus nitrite, 
  5.22  total coliform bacteria, and arsenic as established by the 
  5.23  commissioner. 
  5.24     Subd. 2.  [EXCLUSIONS.] This section does not apply to the 
  5.25  transfer of real property where no consideration is given, or to 
  5.26  the sale, exchange, or transfer of real property: 
  5.27     (1) that consists solely of a sale or transfer of severed 
  5.28  mineral interests; or 
  5.29     (2) that consists of an individual condominium unit as 
  5.30  described in chapters 515 and 515B. 
  5.31     Subd. 3.  [EFFECT OF FAILURE TO COMPLY.] Failure to comply 
  5.32  with a requirement of this section does not impair: 
  5.33     (1) the validity of a deed or other instrument of 
  5.34  conveyance as between the parties to the deed or instrument or 
  5.35  as to any other person who otherwise would be bound by the deed 
  5.36  or instrument; or 
  6.1      (2) the record, as notice, of any deed or other instrument 
  6.2   of conveyance accepted for filing or recording contrary to the 
  6.3   provisions of this section. 
  6.4      Sec. 3.  [103I.243] [MODEL NOTICE RECOMMENDING PERIODIC 
  6.5   WELL TESTING.] 
  6.6      Subdivision 1.  [CONTENT OF MODEL NOTICE.] The commissioner 
  6.7   shall create a model notice recommending periodic well testing 
  6.8   for all wells connected to the potable water system of a 
  6.9   building intended for human habitation or occupancy.  The notice 
  6.10  must contain at least the following information: 
  6.11     (1) the potential hazards of using water from wells for 
  6.12  drinking and food preparation, why wells should be regularly 
  6.13  tested for total coliform bacteria and nitrate plus nitrite, and 
  6.14  why wells in certain areas of the state should be tested for 
  6.15  arsenic; 
  6.16     (2) recommendations that wells be tested at least annually 
  6.17  for total coliform bacteria and nitrate plus nitrite; 
  6.18     (3) recommendations that wells be tested once for arsenic 
  6.19  in areas of the state in which, because of the geology of the 
  6.20  area, arsenic may be present in well water; 
  6.21     (4) instructions on taking water samples from wells and 
  6.22  submitting samples to water testing laboratories for testing; 
  6.23     (5) the estimated costs of having well water tested for 
  6.24  total coliform bacteria, nitrate plus nitrite, and arsenic; and 
  6.25     (6) what further steps to take if a test indicates the 
  6.26  presence of total coliform bacteria, nitrate plus nitrite, or 
  6.27  arsenic, including the importance of testing for pesticides as 
  6.28  defined in section 18B.01, subdivision 18, if total coliform 
  6.29  bacteria or nitrate plus nitrite is present in well water. 
  6.30     Subd. 2.  [DISSEMINATION OF MODEL NOTICE; OTHER 
  6.31  INFORMATION.] (a) The commissioner shall provide a copy of the 
  6.32  model notice to each city, county, and town in the state that 
  6.33  has private wells connected to the potable water system of a 
  6.34  building intended for human habitation or occupancy.  Each city, 
  6.35  county, and town is encouraged to annually provide the model 
  6.36  notice to all households in its jurisdiction that use such wells 
  7.1   or to otherwise provide to the households all the information in 
  7.2   the model notice.  A local government may provide the notice to 
  7.3   households by any means convenient, including distribution at 
  7.4   public meetings, posting in public places, or enclosing the 
  7.5   notice in mailings made for any other purpose. 
  7.6      (b) The commissioner shall post the following information 
  7.7   on the department's Web site: 
  7.8      (1) a copy of the model notice created according to 
  7.9   subdivision 1; 
  7.10     (2) links to other Web sites that address children's health 
  7.11  issues; and 
  7.12     (3) a map of the state indicating areas in which, because 
  7.13  of the geology of the area, arsenic may be present in well water.
  7.14     Sec. 4.  [EFFECTIVE DATE.] 
  7.15     Section 1 is effective January 1, 2004, and applies to 
  7.16  transactions for which purchase agreements are entered into on 
  7.17  or after that date.