STATE OF NEW YORK
________________________________________________________________________
5113
2021-2022 Regular Sessions
IN SENATE
February 24, 2021
___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the real property law, the public health law, the penal
law and the executive law, in relation to properties contaminated by
the production, distribution or storage of the narcotic drug meth-
amphetamine
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The real property law is amended by adding a new article
2 14-A to read as follows:
3 ARTICLE 14-A
4 PROPERTY DISCLOSURE IN THE SALE OF RESIDENTIAL REAL PROPERTY UTILIZED
5 FOR ILLEGAL DRUG LABORATORIES
6 Section 468. Property condition disclosure statement.
7 468-a. Rights.
8 468-b. Remedies.
9 § 468. Property condition disclosure statement. 1. a. Every seller of
10 residential real property pursuant to a real estate purchase contract
11 shall complete and sign a property condition disclosure statement as
12 prescribed by subdivision two of this section and cause it, or a copy
13 thereof, to be delivered to a buyer or buyer's agent prior to the sign-
14 ing by the buyer of a binding contract of sale. A copy of the property
15 condition disclosure statement containing the signatures of both seller
16 and buyer shall be attached to the real estate purchase contract.
17 b. For purposes of this section, "residential real property" includes
18 any: vacant land zoned for residential development; manufactured homes;
19 mobile homes; condominiums; co-ops; town-homes; homes sold by the owner,
20 a financial institution, or the federal department of housing and urban
21 development; rental properties, including apartments; and short-term
22 residences such as motels or hotels. Provided further, that the disclo-
23 sure requirements contained herein shall apply to any structures or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06984-01-1
S. 5113 2
1 buildings whether temporary or permanent in nature that were, or
2 currently are, on the curtilage of the subject property.
3 2. The following shall be the disclosure form:
4 PROPERTY CONDITION DISCLOSURE STATEMENT
5 NAME OF SELLER OR SELLERS OR LESSOR AND LESSEE:
6 SUBJECT PROPERTY ADDRESS:
7 ARTICLE 14-A OF THE REAL PROPERTY LAW REQUIRES THE SELLER OR LESSOR OF
8 RESIDENTIAL REAL PROPERTY TO CAUSE THIS DISCLOSURE STATEMENT OR A COPY
9 THEREOF TO BE DELIVERED TO A BUYER OR BUYER'S AGENT OR LESSEE OR
10 LESSEE'S AGENT PRIOR TO THE SIGNING BY THE BUYER OF A BINDING CONTRACT
11 OF SALE.
12 PURPOSE OF STATEMENT: THIS IS A STATEMENT OF CONDITIONS AND INFORMATION
13 CONCERNING THE PROPERTY KNOWN TO THE SELLER OR LESSOR AND WHETHER SUCH
14 PROPERTY WAS AT ANY TIME USED IN WHOLE OR IN PART AS A METHAMPHETAMINE
15 DRUG LABORATORY. THIS DISCLOSURE STATEMENT IS NOT A WARRANTY OF ANY KIND
16 BY THE SELLER OR LESSOR OR BY ANY AGENT REPRESENTING THE SELLER OR
17 LESSOR IN THIS TRANSACTION. IT IS NOT A SUBSTITUTE FOR ANY INSPECTIONS
18 OR TESTS AND THE BUYER OR LESSEE IS ENCOURAGED TO OBTAIN HIS OR HER OWN
19 INDEPENDENT PROFESSIONAL INSPECTIONS AND ENVIRONMENTAL TESTS AND ALSO IS
20 ENCOURAGED TO CHECK PUBLIC RECORDS PERTAINING TO THE PROPERTY.
21 A KNOWINGLY FALSE OR INCOMPLETE STATEMENT BY THE SELLER OR LESSOR ON
22 THIS FORM MAY SUBJECT THE SELLER OR LESSOR TO CLAIMS BY THE BUYER OR
23 LESSEE PRIOR TO OR AFTER THE TRANSFER OF TITLE PURSUANT TO SECTION 468-B
24 OF THE REAL PROPERTY LAW OR OCCUPANCY BY THE LESSEE. IN THE EVENT A
25 SELLER FAILS TO PERFORM THE DUTY PRESCRIBED IN ARTICLE 14-A OF THE REAL
26 PROPERTY LAW TO DELIVER A DISCLOSURE STATEMENT PRIOR TO THE SIGNING BY
27 THE BUYER OR OF A BINDING CONTRACT OF SALE, THE BUYER SHALL RECEIVE UPON
28 THE TRANSFER OF TITLE A CREDIT OF $500 AGAINST THE AGREED UPON PURCHASE
29 PRICE OF THE RESIDENTIAL REAL PROPERTY.
30 INSTRUCTIONS TO THE SELLER OR LESSOR:
31 (a) ANSWER QUESTIONS BASED UPON YOUR ACTUAL KNOWLEDGE.
32 (b) ATTACH ADDITIONAL PAGES WITH YOUR SIGNATURE IF ADDITIONAL SPACE
33 IS REQUIRED.
34 (c) COMPLETE THIS FORM YOURSELF.
35 (d) IF SOME ITEMS DO NOT APPLY TO YOUR PROPERTY, CHECK "NA" (NON-AP-
36 PLICABLE). IF YOU DO NOT KNOW THE ANSWER CHECK "UNKN" (UNKNOWN).
37 SELLER'S/LESSOR'S STATEMENT: THE SELLER/LESSOR MAKES THE FOLLOWING
38 REPRESENTATIONS TO THE BUYER/LESSEE BASED UPON THE SELLER'S/LESSOR'S
39 ACTUAL KNOWLEDGE AT THE TIME OF SIGNING THIS DOCUMENT. THE SELLER/LESSOR
40 AUTHORIZES HIS OR HER AGENT, IF ANY, TO PROVIDE A COPY OF THIS STATEMENT
41 TO A PROSPECTIVE BUYER/LESSEE OF THE RESIDENTIAL REAL PROPERTY. THE
42 FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER/LESSOR AND ARE NOT THE
43 REPRESENTATIONS OF THE SELLER'S/LESSOR'S AGENT.
44 1. HAS THE SUBJECT PROPERTY EVER BEEN USED AS A METHAMPHETAMINE LABO-
45 RATORY?
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1 2. IF YOU HAVE ANSWERED YES TO NUMBER ONE DID THE SELLER PERFORM OR
2 CAUSE TO BE PERFORMED ANY INSPECTIONS OR ENVIRONMENTAL REMEDIATION
3 AFTER SUCH USE?
4 3. IF YOU HAVE ANSWERED YES TO NUMBER TWO DO YOU HAVE ANY REPORTS,
5 DOCUMENTATION OR FINDINGS TO SUPPORT ANY REMEDIATION ACTIONS THAT
6 MAY HAVE BEEN TAKEN BY OR ESTIMATE THE COSTS ASSOCIATED WITH SUCH
7 REMEDIATION?
8 NOTE: BUYER IS ENCOURAGED TO CHECK PUBLIC RECORDS CONCERNING THE PROP-
9 ERTY (E.G. TAX RECORDS AND WETLAND AND FLOOD PLAIN MAPS)
10 THE SELLER/LESSOR SHOULD USE THIS AREA TO FURTHER EXPLAIN ANY ITEM
11 ABOVE. IF NECESSARY, ATTACH ADDITIONAL PAGES AND INDICATE HERE THE
12 NUMBER OF ADDITIONAL PAGES ATTACHED.
13 ________________________________________________________________________
14 ________________________________________________________________________
15 ________________________________________________________________________
16 ________________________________________________________________________
17 SELLER'S/LESSOR'S CERTIFICATION: SELLER/LESSOR CERTIFIES THAT THE INFOR-
18 MATION IN THIS PROPERTY CONDITION DISCLOSURE STATEMENT IS TRUE AND
19 COMPLETE TO THE SELLER'S/LESSOR'S ACTUAL KNOWLEDGE AS OF THE DATE SIGNED
20 BY THE SELLER/LESSOR. IF A SELLER/LESSOR OF RESIDENTIAL REAL PROPERTY
21 ACQUIRES KNOWLEDGE WHICH RENDERS MATERIALLY INACCURATE A PROPERTY CONDI-
22 TION DISCLOSURE STATEMENT PROVIDED PREVIOUSLY, THE SELLER/LESSOR SHALL
23 DELIVER A REVISED PROPERTY CONDITION DISCLOSURE STATEMENT TO THE
24 BUYER/LESSEE AS SOON AS PRACTICABLE. IN NO EVENT, HOWEVER, SHALL A SELL-
25 ER BE REQUIRED TO PROVIDE A REVISED PROPERTY CONDITION DISCLOSURE STATE-
26 MENT AFTER THE TRANSFER OF TITLE FROM THE SELLER TO THE BUYER OR OCCU-
27 PANCY BY THE BUYER, WHICHEVER IS EARLIER.
28 SELLER/LESSOR _________________________________________ DATE
29 SELLER/LESSOR _________________________________________ DATE
30 BUYER'S/LESSEE'S ACKNOWLEDGMENT: BUYER/LESSEE ACKNOWLEDGES RECEIPT OF A
31 COPY OF THIS STATEMENT AND BUYER/LESSEE UNDERSTANDS THAT THIS INFORMA-
32 TION IS A STATEMENT OF CERTAIN CONDITIONS AND INFORMATION CONCERNING THE
33 PROPERTY KNOWN TO THE SELLER/LESSOR. IT IS NOT A WARRANTY OF ANY KIND BY
34 THE SELLER/LESSOR OR SELLER'S/LESSOR'S AGENT AND IS NOT A SUBSTITUTE FOR
35 OTHER INSPECTIONS OR TESTING OF THE PROPERTY OR INSPECTION OF THE PUBLIC
36 RECORDS.
37 BUYER/LESSEE __________________________________________ DATE
38 BUYER/LESSEE __________________________________________ DATE
39 § 468-a. Rights. 1. A buyer of residential real property has the right
40 to test the property for the purpose of determining whether the property
41 has ever been used as a methamphetamine illegal drug laboratory as
42 defined in section 220.00 of the penal law.
43 2. Tests conducted pursuant to this section shall be performed by a
44 certified industrial hygienist or industrial hygienist, as those terms
45 are defined in section thirteen hundred seventy-eight of the public
46 health law. If the buyer's test results indicate that the property has
47 been used as a methamphetamine illegal drug laboratory but has not been
48 remediated to meet the standards established by the department of health
49 as promulgated, the buyer shall promptly give written notice to the
S. 5113 4
1 seller of the results of the test, and the buyer may terminate the
2 contract.
3 3. The seller shall have thirty days after receipt of the notice to
4 conduct a second independent test at their own expense. If the seller's
5 test results indicate that the property has been used as an illegal drug
6 laboratory but has not been remediated to meet the standards established
7 by the department of health as promulgated then the second independent
8 hygienist shall so notify the seller.
9 4. If the seller receives the notice referred to in subdivision two or
10 three of this section and does not elect to have the property retested
11 pursuant to subdivision three of this section, then an illegal drug
12 laboratory used to manufacture methamphetamine shall be deemed to have
13 been discovered and the owner shall be deemed to have received notice.
14 Nothing in this section shall prohibit a buyer from purchasing the prop-
15 erty and assuming liability pursuant to section thirteen hundred seven-
16 ty-eight-b of the public health law, provided that on the date of clos-
17 ing, the buyer shall provide written notice to the department of public
18 health and the department of environmental conservation of the purchase
19 and assumption of liability.
20 § 468-b. Remedies. 1. The following provisions shall apply provided
21 that the buyer has not elected to purchase the property and assume
22 liability pursuant to subdivision four of section four hundred sixty-
23 eight-a of this article. The seller shall disclose in writing to the
24 buyer whether the seller knows that the property was previously used as
25 a methamphetamine illegal drug laboratory pursuant to subdivision two of
26 section four hundred sixty-eight of this article. In instances where
27 contamination is discovered during the executory period of the contract
28 the seller shall have an ongoing duty to disclose such information to
29 the buyer in writing.
30 2. A seller who fails to make a disclosure required by this section
31 at or before the time of sale and who knew or knows of methamphetamine
32 contamination on the property is liable to the buyer for:
33 a. Costs relating to remediation of the property according to the
34 standards established by rules of the department of health promulgated
35 pursuant to section thirteen hundred seventy-eight-a of the public
36 health law;
37 b. Costs relating to health-related injuries occurring after the sale
38 to residents of the property caused by methamphetamine production on the
39 property; and
40 c. Reasonable attorney fees for collection of costs from the seller.
41 3. A buyer shall commence an action under this section within three
42 years after the date on which the buyer closed the purchase of the prop-
43 erty where the methamphetamine production occurred or within two and
44 one-half years of the discovery of a health-related injury.
45 4. If the seller became aware that the property was once used for the
46 production of methamphetamine and the property was remediated in accord-
47 ance with the standards established pursuant to section thirteen hundred
48 seventy-eight-a of the public health law, and evidence of such remedi-
49 ation was received by the applicable governing body in compliance with
50 the documentation requirements established pursuant to section thirteen
51 hundred seventy-eight-a of the public health law, then the seller shall
52 not be required to disclose that the property was used as a methampheta-
53 mine laboratory to a buyer and the property shall be removed from any
54 government-sponsored informational service listing of properties that
55 have been used for the production of methamphetamine.
S. 5113 5
1 § 2. Article 13 of the public health law is amended by adding a new
2 title 10-A to read as follows:
3 TITLE 10-A
4 CONTROL OF METHAMPHETAMINE CONTAMINATED PROPERTIES
5 Section 1378. Definitions.
6 1378-a. Methamphetamine illegal drug laboratories rules.
7 1378-b. Discovery of illegal drug laboratories, property owner,
8 clean-up and liability.
9 § 1378. Definitions. As used in this article, unless the context
10 otherwise requires:
11 1. "Governing body" means the agency or office designated by the city
12 council or board of county commissioners where the property in question
13 is located. If there is no such designation, the governing body shall be
14 the county, district, or municipal public health agency, building
15 department, and law enforcement agency with jurisdiction over the prop-
16 erty in question.
17 2. "Illegal drug laboratory" means the areas where controlled
18 substances, as defined by section 220.00 of the penal law have been
19 manufactured, processed, cooked, disposed of, used, or stored and all
20 proximate areas that are likely to be contaminated as a result of such
21 manufacturing, processing, cooking, disposal, use, or storing. When used
22 in this chapter the term "methamphetamine illegal drug laboratory" shall
23 have the same definition as provided herein.
24 3. "Property" means anything that may be the subject of ownership,
25 including, but not limited to, land, buildings, structures, and vehi-
26 cles.
27 4. "Property owner", for the purposes of real property, means the
28 person holding record fee title to real property. "Property owner" also
29 means the person holding the title to a manufactured home.
30 5. "Certified industrial hygienist" means an individual that is certi-
31 fied by the American board of industrial hygiene or its successor.
32 6. "Industrial hygienist" means an individual who has obtained a
33 baccalaureate or graduate degree in industrial hygiene, biology, chemis-
34 try, engineering, physics, or a closely related physical or biological
35 science from an accredited college or university. The special studies
36 and training of such individual shall be sufficient in the cognate
37 sciences to provide the ability and competency to:
38 a. anticipate and recognize the environmental factors and stresses
39 associated with work and work operations and to understand their effects
40 on individuals and their well-being;
41 b. evaluate on the basis of training and experience and with the aid
42 of quantitative measurement techniques the magnitude of such environ-
43 mental factors and stresses in terms of their ability to impair human
44 health and well-being;
45 c. prescribe methods to prevent, eliminate, control, or reduce such
46 factors and stresses and their effects;
47 d. any individual who has practiced within the scope of the meaning of
48 industrial hygiene for a period of not less than five years immediately
49 prior to July first, nineteen hundred ninety-seven, is exempt from the
50 degree requirements set forth in this section.
51 e. any individual who has a two-year associate of applied science
52 degree in environmental science from an accredited college or university
53 and in addition not less than four years practice immediately prior to
54 July first, nineteen hundred ninety-seven, within the scope of the mean-
55 ing of industrial hygiene is exempt from the degree requirements set
56 forth in this section.
S. 5113 6
1 § 1378-a. Methamphetamine illegal drug laboratories rules. The commis-
2 sioner, in conjunction with the commissioner of the department of envi-
3 ronmental conservation, shall jointly promulgate regulations addressing
4 property contamination issues for properties previously used for the
5 production or storage of methamphetamine. Such regulations shall
6 include, but not be limited to: establishing procedures for testing and
7 evaluation of contaminated properties, establishing and maintaining
8 acceptable standards for the cleanup and remediation of contaminated
9 properties, establishing and maintaining documentation of contaminated
10 properties including a state-sponsored informational service listing of
11 properties that are deemed contaminated, and ensuring that all such
12 regulations ensure the health and safety of the people of the state of
13 New York.
14 § 1378-b. Discovery of illegal drug laboratories, property owner,
15 clean-up and liability.
16 1. An owner of any personal property within a structure or vehicle
17 contaminated by illegal drug laboratory activity and whose owner chooses
18 to remediate shall have ten days after the date of discovery of the
19 laboratory or contamination to remove or clean his or her personal prop-
20 erty according to department rules. If the personal property owner fails
21 to remove the personal property within ten days, the owner of the struc-
22 ture or vehicle may dispose of the personal property during the clean-up
23 process without liability to the owner of the personal property for such
24 disposition.
25 2. Once a property owner has provided the necessary documentation and
26 testing results as established by the department the provisions of
27 subdivision three of this section shall control.
28 3. Upon completion of any provision outlined in subdivision two of
29 this section immunity shall be established for the property owner from a
30 suit for alleged health-based civil actions brought by any future owner,
31 renter, or other person who occupies such property, or a neighbor of
32 such property, in which the alleged cause of the injury or loss is the
33 existence of the illegal drug laboratory used to manufacture methamphe-
34 tamine; except that immunity from a civil suit is not established for
35 the person convicted for the production of methamphetamine.
36 4. A person who removes personal property or debris from a drug labo-
37 ratory shall secure the property and debris to prevent theft or exposing
38 another person to any toxic or hazardous chemicals until the property
39 and debris is appropriately disposed of or cleaned according to depart-
40 ment rules.
41 5. Governing bodies may enact ordinances or resolutions to further
42 enforce this article, including, but not limited to, preventing unau-
43 thorized entry into contaminated property; requiring contaminated prop-
44 erty to meet clean-up standards before it is occupied; notifying the
45 public of contaminated property; coordinating services and sharing
46 information between law enforcement, building, public health, and social
47 services agencies and officials; and charging reasonable inspection and
48 testing fees provided, however local ordinances shall not conflict with
49 any rules established by the department. Should a conflict arise
50 between a state regulation and any local law, ordinance or resolution
51 the state rule shall be deemed to preempt any local law, ordinance or
52 resolution.
53 § 3. Subdivision 16 of section 220.00 of the penal law is amended by
54 adding a new paragraph (f) to read as follows:
55 (f) "Illegal drug laboratory" means the areas where controlled
56 substances, as defined in this section, have been manufactured, proc-
S. 5113 7
1 essed, cooked, disposed of, used, or stored and all proximate areas that
2 are likely to be contaminated as a result of such manufacturing, proc-
3 essing, cooking, disposal, use, or storing.
4 § 4. Subdivision 2 of section 221-d of the executive law, as added by
5 chapter 394 of the laws of 2005, is amended to read as follows:
6 2. Whenever the division of state police receives a report of an
7 unlawful methamphetamine laboratory, or discovers or recognizes the
8 presence of an unlawful methamphetamine laboratory, such division, as
9 soon as reasonably practicable shall notify, or cause to be notified,
10 the department of environmental conservation and the department of
11 health of such information.
12 § 5. This act shall take effect on the three hundred sixty-fifth day
13 after it shall have become a law, provided however, that the commission-
14 er of health and the commissioner of environmental conservation shall
15 have the authority to jointly issue any rules or regulations necessary
16 for the implementation of this act prior to or after it becomes a law.