00 SENATE CS FOR CS FOR HOUSE BILL NO. 59(FIN) 01 "An Act relating to the evaluation and cleanup of sites where certain controlled 02 substances may have been manufactured or stored; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 PURPOSE. The purpose of this Act is to provide a just, equitable, and practicable 07 method, to be cumulative with and in addition to any other remedy provided by law, whereby 08 property that endangers the life, safety, or welfare of the general public or occupants of the 09 property because of toxic chemical contamination that may result from illegal drug 10 manufacturing may be required to be decontaminated or vacated and secured against use. 11  * Sec. 2. AS 46.03 is amended by adding new sections to read: 12 Article 7A. Cleanup of Illegal Drug Sites.  13 Sec. 46.03.500. Notice of illegal drug manufacturing site. (a) When a law 14 enforcement officer or team of law enforcement officers, qualified under federal 01 regulations to investigate and dismantle illegal drug manufacturing sites, determines 02 that a site constitutes an illegal drug manufacturing site, the primary law enforcement 03 agency that conducted the investigation shall notify the owner of the property, the 04 occupants and users of the property, and the department that the determination has 05 been made. The owner of the property may appeal the determination to the superior 06 court for review of whether the determination was made in compliance with this 07 subsection. In the appeal, the burden of proving by a preponderance of the evidence 08 that the determination was made in compliance with this subsection is on the primary 09 law enforcement agency that conducted the investigation. 10 (b) The notice to the property owner required under (a) of this section shall be 11 given in a manner that is consistent with the Alaska Rules of Civil Procedure for the 12 service of process in a civil action in this state and must include the following 13 information: 14 (1) the parcel identification number and legal description of the 15 property where the site is located; 16 (2) a statement of the determination made by the primary law 17 enforcement agency that the site was an illegal drug manufacturing site and the 18 findings that formed the basis for the determination; 19 (3) a citation to, and short summary of, AS 46.03.510, which restricts 20 transfer and occupancy of the site until it is determined to be fit for use; and 21 (4) the following information, which shall be provided to the primary 22 law enforcement agency by the department: 23 (A) a copy of the standards contained in regulations adopted 24 under AS 46.03.530 that determine whether the property is fit for use; 25 (B) a copy of the sampling and testing procedures established 26 under AS 46.03.520(b) and a copy of the list of laboratories maintained under 27 AS 46.03.520(c) that must be used for determining whether the property is fit 28 for use; and 29 (C) a copy of the guidelines for decontamination established by 30 the department under AS 46.03.540(b). 31 (c) The notice to the department required under (a) of this section must 01 include 02 (1) the parcel identification number and legal description of the 03 property where the site is located; 04 (2) a statement of the determination made by the primary law 05 enforcement agency that the site was an illegal drug manufacturing site and the 06 findings that formed the basis for the determination; and  07 (3) the name and mailing address of the person who owns the property 08 where the site is located. 09 (d) The notice required under (a) of this section for the occupants and users of 10 the property shall be accomplished by immediate posting of the property with a notice 11 that includes the location of the property, the information described in (b)(2) and (3) of 12 this section, and a statement that the property may pose a substantial risk of physical 13 harm to persons who occupy or use the property. For purposes of posting of the notice 14 to the occupants and users of the property required by this subsection, the posting shall 15 be made, for property that is 16 (1) a single family dwelling, at the main entryway of the property; and 17 (2) other than a single family dwelling and for a hotel, motel, public 18 inn, or similar place of public accommodation that provides lodging, at the door of the 19 unit that is the site that constitutes the illegal drug manufacturing site. 20 (e) If a person other than the owner, such as a property manager or rental 21 agency, is authorized to let others use or occupy property for which an owner has 22 received a notice under (a) of this section or is authorized to transfer, sell, lease, or 23 rent the property to others, the owner of the property shall communicate the substance 24 of the notice to that person within four days after receiving the notice. 25 Sec. 46.03.510. Restrictions on property. (a) Until determined to be fit for 26 use under AS 46.03.550, the property for which a notice has been issued under 27 AS 46.03.500(a) may not be transferred, sold, leased, or rented to another person 28 except as provided in (b) of this section, and a person may not use or occupy the 29 property at any time after the fourth day following the day on which the property was 30 posted with the notice required under AS 46.03.500(d), except as necessary for 31 sampling, testing, or decontamination under AS 46.03.520 and 46.03.540. An oral or 01 written contract that would transfer, sell, lease, rent, or otherwise allow the use of the 02 property in violation of this subsection is voidable between the parties at the option of 03 the purchaser, transferee, user, lessee, or renter. However, this subsection does not 04 (1) make voidable a promissory note or other evidence of indebtedness 05 or a mortgage, trust deed, or other security interest securing the promissory note or 06 evidence of indebtedness, if the note or evidence of indebtedness, mortgage, trust 07 deed, or other security interest was given to a person other than the person 08 transferring, selling, using, leasing, or renting the property to induce the person to 09 finance the transfer, sale, use, leasing, or rental of the property; 10 (2) make voidable a lease or rental agreement between the property 11 owner and the person who caused the property to be contaminated and determined 12 unfit for use; or 13 (3) impair obligations or duties required to be performed on 14 termination of a contract, as required by the contract, such as payment of damages or 15 return of refundable deposits. 16 (b) Notwithstanding (a) of this section, property covered by (a) of this section 17 may be transferred or sold if full written disclosure is made to the prospective 18 transferee or purchaser that the property has been determined to be an illegal drug 19 manufacturing site and the property has not been determined to be fit for use. The 20 disclosure shall be attached to the earnest money receipt, if any, and shall accompany 21 the transfer or sale document. The disclosure is not considered to be part of the 22 transfer or sale document, however, and may not be recorded. The property shall 23 continue to be subject to the restrictions in (a) of this section after transfer or sale 24 under this subsection. 25 (c) A person who knowingly transfers, sells, leases, or rents property to 26 another, knowingly allows another to use or occupy property, or, being the owner of 27 property, knowingly occupies or uses the property, in violation of this section is guilty 28 of a class A misdemeanor. In this subsection, "knowingly" has the meaning given in 29 AS 11.81.900(a). 30 (d) It is an affirmative defense to a prosecution under (c) of this section for 31 allowing another to use or occupy the property that the defendant or an agent of the 01 defendant, within four days after receiving a notice under AS 46.03.500, filed an 02 appropriate civil action to remove the user or occupier from the property for which the 03 notice was received. 04 Sec. 46.03.520. Sampling and testing procedures. (a) If the owner of the 05 property for which notice was received under AS 46.03.500(b) desires to determine if 06 the property is fit for use, the owner shall cause the site to be sampled and tested for 07 the substances covered in regulations adopted under AS 46.03.530, using the 08 procedures and laboratory services specified under (b) and (c) of this section. The 09 property owner shall inform the laboratory used for sampling or testing under this 10 subsection that the sampling and testing are related to property that has been 11 determined to be an illegal drug manufacturing site. 12 (b) The department shall establish procedures for sampling and testing 13 property that may have been an illegal drug manufacturing site. 14 (c) The department shall establish and maintain a list of laboratories in the 15 state that have notified the department that they have the capacity to perform the 16 sampling and testing procedures and that they wish to be on the list maintained under 17 this subsection. A laboratory may not be included on the list unless the laboratory 18 agrees to send the department a copy of test results related to properties whose owners 19 have informed the laboratory that the test results are for property that has been 20 determined to be an illegal drug manufacturing site. 21 Sec. 46.03.530. Standards for determining fitness. (a) Property for which a 22 notice was received under AS 46.03.500(b) is not fit for use if sampling and testing of 23 the property under AS 46.03.520 shows the presence of substances for which the 24 department has set a limit under (b) of this section. 25 (b) The Department of Public Safety shall annually submit a list of substances 26 to the Department of Environmental Conservation. The department shall adopt 27 regulations that set the limit for each substance specified by the Department of Public 28 Safety for purposes of determining whether the property for which a notice was 29 received under AS 46.03.500 is fit for use. The department may also determine 30 whether there are other substances associated with illegal drug manufacturing sites 31 that may pose a substantial risk of harm to persons who occupy or use the site or to 01 public health and may adopt regulations that set limits for those substances for the 02 purposes of determining whether the property for which notice was received under 03 AS 46.03.500 is fit for use. 04 Sec. 46.03.540. Decontamination requirements. (a) If the owner desires to 05 decontaminate the property for which a notice has been issued under AS 46.03.500, 06 the owner shall follow the guidelines established by the department under (b) of this 07 section. 08 (b) The department shall establish guidelines for decontamination of sites that 09 are determined to be unfit for use under AS 46.03.530. The department shall provide 10 a copy of the guidelines to any person who requests a copy. 11 Sec. 46.03.550. Fitness for use. (a) Property for which a notice has been 12 issued under AS 46.03.500 shall be determined by the department to be fit for use if 13 the owner certifies to the department under penalty of unsworn falsification that 14 (1) based on sampling and testing procedures established by the 15 department under AS 46.03.520(b) and performed by laboratories that are on the list 16 maintained by the department under AS 46.03.520(c), the limits on substances 17 specified in regulations adopted under AS 46.03.530 are not exceeded on the property; 18 (2) if the property was ever sampled and tested under AS 46.03.520 19 and the test results showed the property to be unfit for use under AS 46.03.530, 20 decontamination procedures were performed in accordance with the guidelines 21 established under AS 46.03.540(b) and the requirements of (1) of this subsection have 22 been met; or 23 (3) a court has held that the determination that the property was an 24 illegal drug manufacturing site was not made in compliance with AS 46.03.500(a). 25 (b) The department shall maintain a list of properties for which the department 26 has received notice under AS 46.03.500(c). When the department determines under 27 (a) of this section that a property on the list is fit for use, the department shall remove 28 the property from the list and notify the owner of the property that the property is fit 29 for use. On request, the department shall give a copy of the list maintained under this 30 section to any person who requests the list. 31 Sec. 46.03.560. Securing the property. The owner of property for which a 01 notice was received under AS 46.03.500(b) shall ensure that the property is vacated 02 and secured against use 03 (1) within four days after receiving the notice if the owner does not test 04 the property under AS 46.03.520 within four days after receiving the notice; or 05 (2) within four days after receiving the test results if the owner tests 06 the property within four days after receiving the notice, the test shows the presence of 07 a substance that exceeds the limits set in regulations adopted under AS 46.03.530, and 08 the owner does not begin decontamination procedures under AS 46.03.540 within four 09 days after receiving the test results. 10 Sec. 46.03.570. Duties of the department; regulations.  The department 11 shall adopt regulations implementing AS 46.03.500 - 46.03.599. 12 Sec. 46.03.599. Definitions. In AS 46.03.500 - 46.03.599, 13 (1) "illegal drug manufacturing site" means property on which there is 14 reasonable cause to suspect contamination with chemicals associated with the 15 manufacturing of a controlled substance and where 16 (A) activity involving the unauthorized manufacture of a 17 controlled substance listed on schedule I or II in AS 11.71 or a precursor 18 chemical or necessary chemical for the substances has occurred; or 19 (B) there are kept, stored, or located any of the devices, 20 equipment, things, or substances used for the unauthorized manufacture of a 21 controlled substance listed on schedule I or II in AS 11.71; 22 (2) "site" means an illegal drug manufacturing site. 23  * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 REGULATIONS. The Department of Environmental Conservation may immediately 26 begin to develop and adopt regulations to implement this Act. The regulations take effect 27 under AS 44.62 (Administrative Procedure Act). 28  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 CERTIFICATION OF EFFECTIVE DATE OF REGULATIONS. The lieutenant 31 governor shall certify to the revisor of statutes the effective date of the initial regulations 01 adopted by the Department of Environmental Conservation under sec. 3 of this Act. 02  * Sec. 5. Sections 1 and 2 of this Act take effect on the effective date of the initial 03 regulations adopted by the Department of Environmental Conservation under sec. 3 of this 04 Act. 05  * Sec. 6. Sections 3 and 4 of this Act take effect immediately under AS 01.10.070(c).