Senate File 2330 - Introduced SENATE FILE 2330 BY COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT (SUCCESSOR TO SSB 3076) (COMPANION TO HF 2343 BY COMMITTEE ON ENVIRONMENTAL PROTECTION) A BILL FOR An Act relating to the submission of a groundwater hazard 1 statement. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5165SV (3) 89 js/ns

S.F. 2330 Section 1. Section 558.69, subsection 1, unnumbered 1 paragraph 1, Code 2022, is amended to read as follows: 2 With each declaration of value submitted to the county 3 recorder under chapter 428A , except as specified in subsection 4 8A, there shall be submitted a groundwater hazard statement 5 stating all of the following: 6 Sec. 2. Section 558.69, subsection 3, Code 2022, is amended 7 by striking the subsection. 8 Sec. 3. Section 558.69, subsections 4, 7, and 8, Code 2022, 9 are amended to read as follows: 10 4. A buyer of property shall be provided with a copy of the 11 submitted groundwater hazard statement , if required under this 12 section, by the seller. 13 7. The county recorder shall transmit the groundwater 14 hazard statements to the department of natural resources 15 at times and in a manner directed by the director of the 16 department . Groundwater hazard statements may be transmitted 17 electronically to the department or may be presented to the 18 department through a browser interface provided through the 19 county land record information system. The form and timing of 20 the transmittal shall be determined by the department and the 21 county recorders. 22 8. The owner of the property is responsible for the 23 accuracy of the information submitted on the groundwater 24 hazard statement. The owner’s agent and the preparer of the 25 groundwater hazard statement shall not be liable for the 26 accuracy of information provided by the owner of the property 27 unless the owner’s agent or the preparer of the groundwater 28 hazard statement has direct knowledge contrary to the submitted 29 statement . The provisions of this subsection do not limit 30 liability which may be imposed under a contract or under any 31 other law. 32 Sec. 4. Section 558.69, Code 2022, is amended by adding the 33 following new subsections: 34 NEW SUBSECTION . 8A. a. If there are no conditions present, 35 -1- LSB 5165SV (3) 89 js/ns 1/ 3

S.F. 2330 as described in subsection 1, then a groundwater hazard 1 statement shall not be submitted. In lieu of the submission 2 of a groundwater hazard statement, any deed, instrument, or 3 writing by which any real property in this state shall be 4 granted, assigned, transferred, or otherwise conveyed shall 5 include on the first page of the deed, instrument, or writing 6 the following statement: 7 There is no known groundwater hazard and, therefore, the 8 parcel is exempt from including a groundwater hazard statement 9 pursuant to Iowa Code section 558.69. 10 b. The owner of the property is responsible for the accuracy 11 of the statement provided in paragraph “a” . 12 c. The owner’s agent and the preparer of a statement 13 included pursuant to paragraph “a” shall not be liable for 14 information pertaining to the statement unless the owner’s 15 agent or the preparer has direct knowledge contrary to the 16 included statement. 17 NEW SUBSECTION . 8B. a. If a required declaration of 18 value is not accompanied by a groundwater hazard statement, 19 if required under this section, or if the first page of the 20 deed, instrument, or writing by which any real property in this 21 state shall be granted, assigned, transferred, or otherwise 22 conveyed does not include the statement provided in subsection 23 8A, paragraph “a” , if required under this section, the county 24 recorder shall refuse to record the deed, instrument, or 25 writing. 26 b. A recording in violation of this subsection shall not be 27 the basis for invalidating the deed, instrument, or writing. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the submission of a groundwater hazard 32 statement with a declaration of value upon the conveyance 33 of real property. Under current law, a groundwater hazard 34 statement stating whether certain groundwater hazards exist 35 -2- LSB 5165SV (3) 89 js/ns 2/ 3

S.F. 2330 shall accompany each declaration of value submitted to a county 1 recorder when any real property in this state is granted, 2 assigned, transferred, or otherwise conveyed. Current law also 3 requires a county recorder to transmit a groundwater hazard 4 statement to the department of natural resources (DNR) as 5 directed by the DNR director. 6 Under the bill, a person shall not include a groundwater 7 hazard statement with a deed, instrument, or writing if no 8 specified conditions exist on the property. Rather, the first 9 page of the deed, instrument, or writing shall include a 10 statement indicating that no groundwater hazard exists on the 11 property and, therefore, the parcel is exempt from including 12 a groundwater hazard statement. The owner of the property is 13 responsible for the accuracy of such statement. An owner’s 14 agent, a preparer of a groundwater hazard statement, and a 15 preparer of a statement that no known groundwater hazard exists 16 shall not be liable for the accuracy of information provided 17 by the owner of the property unless the person has direct 18 knowledge contrary to the submitted statement. 19 The bill requires a county recorder to refuse to record 20 any deed, instrument, or writing by which any real property 21 in this state is conveyed if the deed, instrument, or writing 22 and a required declaration of value is not accompanied by a 23 groundwater hazard statement, if required, or if the exemption 24 statement is not present on the first page of the deed, 25 instrument, or writing, if required. However, a recording in 26 violation of the bill shall not be the basis for invalidating 27 a deed, instrument, or writing. Additionally, the bill 28 authorizes a county recorder to transmit a groundwater hazard 29 statement to DNR electronically or presented through a browser 30 interface provided by the county land record information system 31 as determined by DNR and the county recorders. 32 -3- LSB 5165SV (3) 89 js/ns 3/ 3