Establishes the toxic mold safety and protection act and the toxic mold hazard insurance program; appropriation

Title of bill

An act to amend the public health law and the insurance law, in relation to enacting the New York toxic mold safety and protection act of 2009 and making an appropriation therefor

Purpose

To enact a state program that: provides research and education on the dangers of toxic mold, requires inspections of residential property and establishes a toxic mold hazard insurance program.

Summary of provisions

Creates a new Article 48-A to the Public Health Law which: provides for a study on the problem of toxic mold; establishes standards for preventing, detecting, and remediating indoor mold growth; and sponsors public education programs to promote and increase public awareness of the dangers of indoor mold growth or toxic mold. Specifically:

* Requires the Department of Environmental Conservation (DEC) and the Department of Health (DOH) to jointly undertake a comprehensive study of the health effects of indoor mold growth and toxic mold, with such study submitted to the Governor and legislature. Also requires the Division of Housing and Community Renewal (DHCR) to study and report the impact of construction standards on indoor mold growth.

* Within one year of the effective date of the article, DEC, in conjunction with appropriate agencies, shall promulgate rules and regulations that include: standards for mold inspection, mold remediation, testing the toxicity of mold, and the problem of mold remediation; standards for certification of mold inspectors, mold remediators, mold risk assessors and industrial hygienists involved with mold remediation planning; and standards for the design. * Requires the Superintendent to undertake studies to estimate appropriate premium rates for toxic mold hazard insurance and requires the Superintendent to prescribe by rules and regulations chargeable premium rates for such insurance. * Requires the Superintendent to encourage and assist insurance companies to join together in a pool to provide toxic mold hazard insurance. * Allows the Superintendent to prescribe appropriate requirements for insurance companies participating in such pool, including minimum requirements for capital, surplus and assets. * Allows Superintendent to make payments to the pool from money appropriated for such purposes.

Justification

Many construction and plumbing contractors as well as owners of buildings and apartments are facing a growing problem of claims related to the formation of mold in buildings. The problem is being compounded by insurance companies who are either excluding mold from their insurance coverage or charging exorbitant premiums. In either case, contractors and landlords are facing financial burdens at a time they can least afford it. Even though there is little scientific evidence directly linking mold to serious and adverse health effects, the public has become increasingly alarmed by "toxic mold" and its potential harmful qualities. Consequently, this act will study the potential dangers of mold, educate the public about any health effects and provide standards for preventing and remediating mold in buildings. The act will also require inspections of residential buildings and create an insurance program to help provide insurance for contractors and landlords.

Legislative history

This bill is new in the Assembly; same as S.1752 of 2008. FISCAL IMPACT ON THE STATE : Appropriates $250,000 to pay the expenses incurred, including personal services, in carrying out the provisions of this act.

Effective date

This act shall take effect on the sixtieth day after it shall have becomes law.