HF1430

This bill modifies requirements for well disclosure certificates in Minnesota. It includes the following key provisions:

1. Seller Disclosure Requirement: Before selling real property, sellers must disclose in writing whether there are any wells on the property. If wells exist, the disclosure must include location details and whether they are in use, not in use, or sealed.

2. Well Disclosure Certificate Submission:

   • Until July 31, 2028, sellers must provide well disclosure information at closing, which includes the buyer’s name and mailing address along with other required location details.
     
   • Starting August 1, 2028 (or an earlier date set by the commissioner), sellers must submit a well disclosure certificate to the commissioner of health before closing. This will require a $50 nonrefundable fee.

3. Recording Requirements:

   • County recorders cannot record a deed unless it includes either a statement that no wells exist or the disclosure certificate number issued by the commissioner.
     
   • After July 31, 2028, county recorders must verify key information on the well disclosure certificate and validate it using a new information technology system.

4. Implementation of Information Technology System:

   • The commissioner of health must implement a well disclosure certificate IT system by June 30, 2028, allowing for electronic submission, electronic fee payments, and issuance of certificate numbers.
     
   • The system will also include a searchable database for well disclosure certificates.

5. Appropriation of Funds:

   • A one-time appropriation is allocated in fiscal year 2026 to develop the IT system. The system’s ongoing costs will be managed through a service agreement with the Department of Information Technology Services.

6. Responsibility for Wells:

   • After a sale closes, the new property owner becomes responsible for any wells on the property.

This bill ensures greater transparency in well disclosures during real estate transactions while modernizing the certification process through an electronic system.