February 14, 2007
SENATE BILL No. 156
_____
DIGEST OF SB 156
(Updated February 12, 2007 12:58 pm - DI 52)
Citations Affected: IC 13-11; IC 32-20; noncode.
Synopsis: Environmental restrictive covenants. Provides that
marketable record title to real property is subject to all interests of the
department of environmental management arising from the recording
of a restrictive covenant under IC 13.
Effective: July 1, 2007.
Gard
January 11, 2007, read first time and referred to Committee on Corrections, Criminal, and
Civil Matters.
January 18, 2007, pursuant to Senate Rule 65(b), reassigned to Committee on Energy and
Environmental Affairs.
February 13, 2007, reported favorably _ Do Pass.
February 14, 2007
First Regular Session 115th General Assembly (2007)
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SENATE BILL No. 156
A BILL FOR AN ACT to amend the Indiana Code concerning
environmental law.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 13-11-2-193.5; (07)SB0156.1.1. -->
SECTION 1. IC 13-11-2-193.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 193.5. "Restrictive
covenant" for purposes of IC 13-14-2-6, means, with respect to land,
any deed restriction, restrictive covenant, environmental covenant,
environmental notice, or other restriction or obligation that:
(1) limits the use of the land or the activities that may be
performed on or at the land or requires the maintenance of any
engineering control on the land designed to protect human health
or the environment;
(2) by its terms is intended to run with the land and be binding on
successors;
(3) is recorded with the county recorder's office in the county in
which the land is located; and
(4) explains how it can be modified or terminated.
SOURCE: IC 32-20-3-2; (07)SB0156.1.2. -->
SECTION 2. IC 32-20-3-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 2. Marketable record
title is subject to the following:
(1) All interests and defects that are inherent in the muniments of
which the chain of record title is formed. However, a general
reference in the muniments, or any one (1) of them, to:
(A) easements;
(B) use restrictions; or
(C) other interests created before the root of title;
is not sufficient to preserve them, unless specific identification is
made in the muniments of a recorded title transaction that creates
the easement, use restriction, or other interest.
(2) All interests preserved by:
(A) the filing of proper notice; or
(B) possession by the same owner continuously for at least
fifty (50) years, in accordance with IC 32-20-4-1.
(3) The rights of any person arising from adverse possession or
adverse user, if the period of adverse possession or adverse user
was wholly or partly subsequent to the effective date of the root
of title.
(4) Any interest arising out of a title transaction recorded after the
effective date of the root of title from which the unbroken chain
of title of record is started. However, the recording shall not
revive or give validity to any interest that has been extinguished
before the time of the recording by the operation of section 3 of
this chapter.
(5) The exceptions stated in IC 32-20-4-3 concerning:
(A) rights of reversioners in leases;
(B) rights of any lessee in and to any lease; and
(C) easements and interests in the nature of easements.
(6) All interests of the department of environmental management
in land used for the disposal of hazardous wastes arising from the
recording of a restrictive covenant under IC 13-22-3-3. IC 13.
SOURCE: ; (07)SB0156.1.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2007]
(a) IC 32-20-3-2, as
amended by this act, applies only to determinations of marketable
record title (as defined in IC 32-20-2-2) after June 30, 2007.
(b) Under IC 32-20-3-2, as amended by this act, marketable
record title (as defined in IC 32-20-2-2) is subject to all interests of
the department of environmental management arising from the
recording of a restrictive covenant under IC 13, regardless of
whether the recording occurred before July 1, 2007.