SENATE BILL REPORT

SHB 1412

BYHouse Committee on Environmental Affairs (originally sponsored by Representatives Patrick and May)

Providing for disclosure of flood plain information.

House Committe on Environmental Affairs

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):February 24, 1988; February 25, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Metcalf, Chairman; Smith, Vice Chairman; Benitz, DeJarnatt, Kreidler.

Senate Staff:Gary Wilburn (786-7453)

                  February 25, 1988

AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES, FEBRUARY 25, 1988

BACKGROUND:

Floodplain lands require special precautions to limit potential damage to structures, property, and public health.  Current state law restricts most construction on designated floodways and delegates power to local governments to: (1)develop and implement local floodplain management ordinances; and (2) administer the national flood insurance program (NFIP).  The NFIP effectively limits construction within floodplains through making flood insurance available only to owners of properties conforming to NFIP requirements.  Lands covered by the program are determined by maps prepared by the Federal Emergency Management Agency (FEMA) and provided to all local governments administering the NFIP.  These maps designate "special flood hazard areas," which are floodplain lands subject to a 1 percent or greater chance of flooding in any given year.

A report prepared for the Department of Ecology indicates that over ten states have instituted measures to inform renters, owners and/or potential owners concerning the special risks and land uses associated with floodplain lands. The report states that disclosure requirements can be a successful approach to notifying prospective real estate purchasers about floodplain lands.

SUMMARY:

Real estate brokers and salespersons must provide information to persons purchasing property within special flood hazard areas.  The information must include: (1) notice that the property is within a special flood hazard area; (2) notice of local floodplain management ordinances; and (3) information about the history of flooding on the property, if available. Disclosure must take place prior to or concurrent with the first offer for the purchase of real property.

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The disclosure requirement is placed upon owners rather than real estate brokers and salespersons.  Information regarding prior flooding must be provided to the purchaser if it is known to the owner.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 21, 1988

Senate Committee - Testified: Representative Patrick, prime sponsor; Representative May (for); Dick Barrett, Washington Association of Realtors (for); Jim Williams, Association of Counties (for); Jerry Louthain, Dept. of Ecology (for); Lora Murphy, Dept. of Community Development (for); Ed Manary, Dept. of Fisheries (for);