Disclose Meth Lab History

Section 1. The real property law is amended by adding a new article 14-A to read as follows:

ARTICLE 14-A

PROPERTY DISCLOSURE IN THE SALE OF RESIDENTIAL REAL PROPERTY UTILIZED

FOR ILLEGAL DRUG LABORATORIES Section 468. Property condition disclosure statement.

468-a. Rights.

468-b. Remedies.

§ 468. Property condition disclosure statement. 1. a. Every seller of residential real property pursuant to a real estate purchase contract shall complete and sign a property condition disclosure statement as prescribed by subdivision two of this section and cause it, or a copy thereof, to be delivered to a buyer or buyer's agent prior to the signing by the buyer of a binding contract of sale. A copy of the property condition disclosure statement containing the signatures of both seller and buyer shall be attached to the real estate purchase contract.

b. For purposes of this section, "residential real property" includes any: vacant land zoned for residential development; manufactured homes; mobile homes; condominiums; co-ops; town-homes; homes sold by the owner, a financial institution, or the federal department of housing and urban development; rental properties, including apartments; and short-term residences such as motels or hotels. Provided further, that the disclo-

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD02390-01-9

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sure requirements contained herein shall apply to any structures or buildings whether temporary or permanent in nature that were, or currently are, on the curtilage of the subject property.

2. The following shall be the disclosure form:

PROPERTY CONDITION DISCLOSURE STATEMENT

NAME OF SELLER OR SELLERS OR LESSOR AND LESSEE:

SUBJECT PROPERTY ADDRESS:

ARTICLE 14-A OF THE REAL PROPERTY LAW REQUIRES THE SELLER OR LESSOR OF RESIDENTIAL REAL PROPERTY TO CAUSE THIS DISCLOSURE STATEMENT OR A COPY THEREOF TO BE DELIVERED TO A BUYER OR BUYER'S AGENT OR LESSEE OR LESSEE'S AGENT PRIOR TO THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE.

PURPOSE OF STATEMENT: THIS IS A STATEMENT OF CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER OR LESSOR AND WHETHER SUCH PROPERTY WAS AT ANY TIME USED IN WHOLE OR IN PART AS A METHAMPHETAMINE DRUG LABORATORY. THIS DISCLOSURE STATEMENT IS NOT A WARRANTY OF ANY KIND BY THE SELLER OR LESSOR OR BY ANY AGENT REPRESENTING THE SELLER OR LESSOR IN THIS TRANSACTION. IT IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR TESTS AND THE BUYER OR LESSEE IS ENCOURAGED TO OBTAIN HIS OR HER OWN INDEPENDENT PROFESSIONAL INSPECTIONS AND ENVIRONMENTAL TESTS AND ALSO IS ENCOURAGED TO CHECK PUBLIC RECORDS PERTAINING TO THE PROPERTY.

A KNOWINGLY FALSE OR INCOMPLETE STATEMENT BY THE SELLER OR LESSOR ON THIS FORM MAY SUBJECT THE SELLER OR LESSOR TO CLAIMS BY THE BUYER OR LESSEE PRIOR TO OR AFTER THE TRANSFER OF TITLE PURSUANT TO SECTION 468-B OF THE REAL PROPERTY LAW OR OCCUPANCY BY THE LESSEE. IN THE EVENT A SELLER FAILS TO PERFORM THE DUTY PRESCRIBED IN ARTICLE 14-A OF THE REAL PROPERTY LAW TO DELIVER A DISCLOSURE STATEMENT PRIOR TO THE SIGNING BY THE BUYER OR OF A BINDING CONTRACT OF SALE, THE BUYER SHALL RECEIVE UPON THE TRANSFER OF TITLE A CREDIT OF $500 AGAINST THE AGREED UPON PURCHASE PRICE OF THE RESIDENTIAL REAL PROPERTY.

INSTRUCTIONS TO THE SELLER OR LESSOR:

(a) ANSWER QUESTIONS BASED UPON YOUR ACTUAL KNOWLEDGE.

(b) ATTACH ADDITIONAL PAGES WITH YOUR SIGNATURE IF ADDITIONAL SPACE

IS REQUIRED.

(c) COMPLETE THIS FORM YOURSELF.

(d) IF SOME ITEMS DO NOT APPLY TO YOUR PROPERTY, CHECK "NA" (NON-AP-

PLICABLE). IF YOU DO NOT KNOW THE ANSWER CHECK "UNKN" (UNKNOWN).

SELLER'S/LESSOR'S STATEMENT: THE SELLER/LESSOR MAKES THE FOLLOWING REPRESENTATIONS TO THE BUYER/LESSEE BASED UPON THE SELLER'S/LESSOR'S ACTUAL KNOWLEDGE AT THE TIME OF SIGNING THIS DOCUMENT. THE SELLER/LESSOR AUTHORIZES HIS OR HER AGENT, IF ANY, TO PROVIDE A COPY OF THIS STATEMENT TO A PROSPECTIVE BUYER/LESSEE OF THE RESIDENTIAL REAL PROPERTY. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER/LESSOR AND ARE NOT THE REPRESENTATIONS OF THE SELLER'S/LESSOR'S AGENT.

1. HAS THE SUBJECT PROPERTY EVER BEEN USED AS A METHAMPHETAMINE LABO-

RATORY?

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2. IF YOU HAVE ANSWERED YES TO NUMBER ONE DID THE SELLER PERFORM OR

CAUSE TO BE PERFORMED ANY INSPECTIONS OR ENVIRONMENTAL REMEDIATION

AFTER SUCH USE?

3. IF YOU HAVE ANSWERED YES TO NUMBER TWO DO YOU HAVE ANY REPORTS,

DOCUMENTATION OR FINDINGS TO SUPPORT ANY REMEDIATION ACTIONS THAT

MAY HAVE BEEN TAKEN BY OR ESTIMATE THE COSTS ASSOCIATED WITH SUCH

REMEDIATION?

NOTE: BUYER IS ENCOURAGED TO CHECK PUBLIC RECORDS CONCERNING THE PROP- ERTY (E.G. TAX RECORDS AND WETLAND AND FLOOD PLAIN MAPS)

THE SELLER/LESSOR SHOULD USE THIS AREA TO FURTHER EXPLAIN ANY ITEM ABOVE. IF NECESSARY, ATTACH ADDITIONAL PAGES AND INDICATE HERE THE NUMBER OF ADDITIONAL PAGES ATTACHED. ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

SELLER'S/LESSOR'S CERTIFICATION: SELLER/LESSOR CERTIFIES THAT THE INFOR- MATION IN THIS PROPERTY CONDITION DISCLOSURE STATEMENT IS TRUE AND COMPLETE TO THE SELLER'S/LESSOR'S ACTUAL KNOWLEDGE AS OF THE DATE SIGNED BY THE SELLER/LESSOR. IF A SELLER/LESSOR OF RESIDENTIAL REAL PROPERTY ACQUIRES KNOWLEDGE WHICH RENDERS MATERIALLY INACCURATE A PROPERTY CONDI- TION DISCLOSURE STATEMENT PROVIDED PREVIOUSLY, THE SELLER/LESSOR SHALL DELIVER A REVISED PROPERTY CONDITION DISCLOSURE STATEMENT TO THE BUYER/LESSEE AS SOON AS PRACTICABLE. IN NO EVENT, HOWEVER, SHALL A SELL- ER BE REQUIRED TO PROVIDE A REVISED PROPERTY CONDITION DISCLOSURE STATE- MENT AFTER THE TRANSFER OF TITLE FROM THE SELLER TO THE BUYER OR OCCU- PANCY BY THE BUYER, WHICHEVER IS EARLIER.

SELLER/LESSOR _________________________________________ DATE

SELLER/LESSOR _________________________________________ DATE

BUYER'S/LESSEE'S ACKNOWLEDGMENT: BUYER/LESSEE ACKNOWLEDGES RECEIPT OF A COPY OF THIS STATEMENT AND BUYER/LESSEE UNDERSTANDS THAT THIS INFORMA- TION IS A STATEMENT OF CERTAIN CONDITIONS AND INFORMATION CONCERNING THE PROPERTY KNOWN TO THE SELLER/LESSOR. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER/LESSOR OR SELLER'S/LESSOR'S AGENT AND IS NOT A SUBSTITUTE FOR OTHER INSPECTIONS OR TESTING OF THE PROPERTY OR INSPECTION OF THE PUBLIC RECORDS.

BUYER/LESSEE __________________________________________ DATE

BUYER/LESSEE __________________________________________ DATE

§ 468-a. Rights. 1. A buyer of residential real property has the right to test the property for the purpose of determining whether the property has ever been used as a methamphetamine illegal drug laboratory as defined in section 220.00 of the penal law.

2. Tests conducted pursuant to this section shall be performed by a certified industrial hygienist or industrial hygienist, as those terms are defined in section thirteen hundred seventy-eight of the public health law. If the buyer's test results indicate that the property has been used as a methamphetamine illegal drug laboratory but has not been remediated to meet the standards established by the department of health as promulgated, the buyer shall promptly give written notice to the

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seller of the results of the test, and the buyer may terminate the contract.

3. The seller shall have thirty days after receipt of the notice to conduct a second independent test at their own expense. If the seller's test results indicate that the property has been used as an illegal drug laboratory but has not been remediated to meet the standards established by the department of health as promulgated then the second independent hygienist shall so notify the seller.

4. If the seller receives the notice referred to in subdivision two or three of this section and does not elect to have the property retested pursuant to subdivision three of this section, then an illegal drug laboratory used to manufacture methamphetamine shall be deemed to have been discovered and the owner shall be deemed to have received notice. Nothing in this section shall prohibit a buyer from purchasing the property and assuming liability pursuant to section thirteen hundred seventy-eight-b of the public health law, provided that on the date of closing, the buyer shall provide written notice to the department of public health and the department of environmental conservation of the purchase and assumption of liability.

§ 468-b. Remedies. 1. The following provisions shall apply provided that the buyer has not elected to purchase the property and assume liability pursuant to subdivision four of section four hundred sixtyeight-a of this article. The seller shall disclose in writing to the buyer whether the seller knows that the property was previously used as a methamphetamine illegal drug laboratory pursuant to subdivision two of section four hundred sixty-eight of this article. In instances where contamination is discovered during the executory period of the contract the seller shall have an ongoing duty to disclose such information to the buyer in writing.

2. A seller who fails to make a disclosure required by this section at or before the time of sale and who knew or knows of methamphetamine contamination on the property is liable to the buyer for:

a. Costs relating to remediation of the property according to the standards established by rules of the department of health promulgated pursuant to section thirteen hundred seventy-eight-a of the public health law;

b. Costs relating to health-related injuries occurring after the sale to residents of the property caused by methamphetamine production on the property; and

c. Reasonable attorney fees for collection of costs from the seller.

3. A buyer shall commence an action under this section within three years after the date on which the buyer closed the purchase of the property where the methamphetamine production occurred or within two and one-half years of the discovery of a health-related injury.

4. If the seller became aware that the property was once used for the production of methamphetamine and the property was remediated in accordance with the standards established pursuant to section thirteen hundred seventy-eight-a of the public health law, and evidence of such remediation was received by the applicable governing body in compliance with the documentation requirements established pursuant to section thirteen hundred seventy-eight-a of the public health law, then the seller shall not be required to disclose that the property was used as a methamphetamine laboratory to a buyer and the property shall be removed from any government-sponsored informational service listing of properties that have been used for the production of methamphetamine.

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§ 2. Article 13 of the public health law is amended by adding a new title 10-A to read as follows:

TITLE 10-A

CONTROL OF METHAMPHETAMINE CONTAMINATED PROPERTIES Section 1378. Definitions.

1378-a. Methamphetamine illegal drug laboratories rules.

1378-b. Discovery of illegal drug laboratories, property owner,

clean-up and liability.

§ 1378. Definitions. As used in this article, unless the context otherwise requires:

1. "Governing body" means the agency or office designated by the city council or board of county commissioners where the property in question is located. If there is no such designation, the governing body shall be the county, district, or municipal public health agency, building department, and law enforcement agency with jurisdiction over the property in question.

2. "Illegal drug laboratory" means the areas where controlled substances, as defined by section 220.00 of the penal law have been manufactured, processed, cooked, disposed of, used, or stored and all proximate areas that are likely to be contaminated as a result of such manufacturing, processing, cooking, disposal, use, or storing. When used in this chapter the term "methamphetamine illegal drug laboratory" shall have the same definition as provided herein.

3. "Property" means anything that may be the subject of ownership, including, but not limited to, land, buildings, structures, and vehicles.

4. "Property owner", for the purposes of real property, means the person holding record fee title to real property. "Property owner" also means the person holding the title to a manufactured home.

5. "Certified industrial hygienist" means an individual that is certified by the American board of industrial hygiene or its successor.

6. "Industrial hygienist" means an individual who has obtained a baccalaureate or graduate degree in industrial hygiene, biology, chemistry, engineering, physics, or a closely related physical or biological science from an accredited college or university. The special studies and training of such individual shall be sufficient in the cognate sciences to provide the ability and competency to: