00 HOUSE BILL NO. 382 01 "An Act relating to the evaluation and cleanup of sites where certain controlled 02 substances may have been manufactured or stored." 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 6A. Cleanup of Illegal Drug Sites.  13 Sec. 46.03.500. Notice of illegal drug manufacturing site. (a) When a law 14 enforcement officer, qualified under federal regulations to investigate and dismantle 01 illegal drug manufacturing sites, determines that a site constitutes an illegal drug 02 manufacturing site, the law enforcement agency that employs the officer shall notify 03 the owner of the property and the department that the determination has been made. 04 (b) The notice to the property owner required under this section must include 05 the following information: 06 (1) the parcel identification number and legal description of the 07 property where the site is located; 08 (2) a statement of the determination made by the law enforcement 09 officer that the site was an illegal drug manufacturing site and the findings that formed 10 the basis for the determination; 11 (3) a citation to, and short summary of, AS 46.03.510, which restricts 12 transfer and occupancy of the site until it is determined to be fit for use; and 13 (4) the following information if it has been provided to the law 14 enforcement agency by the department: 15 (A) a copy of the standards contained in regulations adopted 16 under AS 46.03.530 that determine whether the property is fit for use; 17 (B) a copy of the testing procedures established under 18 AS 46.03.520(b) and a copy of the list of laboratories maintained under 19 AS 46.03.520(c) that must be used for determining whether the property is fit 20 for use; and 21 (C) a copy of the guidelines for decontamination established by 22 the department under AS 46.03.540(b). 23 (c) The notice to the department required under this section must include 24 (1) the parcel identification number and legal description of the 25 property where the site is located; 26 (2) a statement of the determination made by the law enforcement 27 officer that the site was an illegal drug manufacturing site and the findings that formed 28 the basis for the determination; and  29 (3) the name and mailing address of the person who owns the property 30 where the site is located. 31 Sec. 46.03.510. Restrictions on property. (a) Until determined to be fit for 01 use under AS 46.03.550, the property for which a notice has been issued under 02 AS 46.03.500 may not be used or occupied for any purpose or transferred, sold, 03 leased, or rented to another person except as provided in (b) of this section and except 04 as necessary for testing or decontamination under AS 46.03.520 and 46.03.540. An 05 oral or written contract that would transfer, sell, use, lease, or rent the property in 06 violation of this subsection is voidable between the parties at the option of the 07 purchaser, transferee, user, lessee, or renter. However, this subsection does not 08 (1) make voidable a promissory note or other evidence of indebtedness 09 or a mortgage, trust deed, or other security interest securing the promissory note or 10 evidence of indebtedness, if the note or evidence of indebtedness, mortgage, trust 11 deed, or other security interest was given to a person other than the person 12 transferring, selling, using, leasing, or renting the property to induce the person to 13 finance the transfer, sale, use, leasing, or rental of the property; or 14 (2) impair obligations or duties required to be performed on 15 termination of a contract, as required by the contract, such as payment of damages or 16 return of refundable deposits. 17 (b) Notwithstanding (a) of this section, property covered by (a) of this section 18 may be transferred or sold if full written disclosure is made to the prospective 19 transferee or purchaser that the property has been determined to be an illegal drug 20 manufacturing site and the property has not been determined to be fit for use. The 21 disclosure shall be attached to the earnest money receipt, if any, and shall accompany 22 the transfer or sale document. The disclosure is not considered to be part of the 23 transfer or sale document, however, and may not be recorded. The property shall 24 continue to be subject to the restrictions in (a) of this section after transfer or sale 25 under this subsection. 26 (c) A person who knowingly uses, transfers, sells, leases, rents, or occupies 27 property in violation of this section is guilty of a class A misdemeanor. In this 28 subsection, "knowingly" has the meaning given in AS 11.81.900(a). 29 Sec. 46.03.520. Testing procedures. (a) If the owner of the property for 30 which notice was received under AS 46.03.500 desires to determine if the property is 31 fit for use, the owner shall cause the site to be tested for the substances specified in 01 AS 46.03.530, using the procedures and laboratory services specified under (b) and (c) 02 of this section. The property owner shall inform the laboratory used for a test under 03 this subsection that the test is related to property that has been determined to be an 04 illegal drug manufacturing site. 05 (b) The department shall establish procedures for testing property that may 06 have been an illegal drug manufacturing site. 07 (c) The department shall establish and maintain a list of laboratories in the 08 state that have the capacity to perform the testing procedures and have notified the 09 department that they wish to be on the list maintained under this subsection. A 10 laboratory may not be included on the list unless the laboratory agrees to send the 11 department a copy of test results related to properties whose owners have informed the 12 laboratory that the test results are for property that has been determined to be an illegal 13 drug manufacturing site. 14 Sec. 46.03.530. Standards for determining fitness. (a) Property for which a 15 notice was received under AS 46.03.500 is not fit for use if a test of the property 16 shows the presence of one of the following substances above the limit set by the 17 department for that substance: lead, mercury, methamphetamines, and volatile organic 18 compounds. 19 (b) The department shall adopt regulations that set the limit for each substance 20 listed in (a) of this section for purposes of determining whether the property for which 21 a notice was received under AS 46.03.500 is fit for use. 22 Sec. 46.03.540. Decontamination requirements. (a) If testing under 23 AS 46.03.520 shows the presence of a substance that exceeds the limits set by 24 regulations adopted under AS 46.03.530 and the owner desires to decontaminate the 25 property, the owner shall follow the guidelines established by the department under (b) 26 of this section. 27 (b) The department shall establish guidelines for decontamination of sites that 28 are determined to be unfit for use under AS 46.03.530. The department shall provide 29 a copy of the guidelines to any person who requests a copy. 30 Sec. 46.03.550. Fitness for use. (a) Property for which a notice has been 31 issued under AS 46.03.500 shall be determined by the department to be fit for use if 01 the owner submits satisfactory evidence to the department that 02 (1) based on testing procedures established by the department under 03 AS 46.03.520(b) and performed by laboratories that are on the list maintained by the 04 department under AS 46.03.520(c), the limits on substances specified in AS 46.03.530 05 are not exceeded on the property; or 06 (2) if the property was ever tested under AS 46.03.520 and the test 07 results showed the property to be unfit for use under AS 46.03.530, decontamination 08 procedures were performed in accordance with the guidelines established under 09 AS 46.03.540(b) and the requirements of (1) of this subsection have been met. 10 (b) The department shall maintain a list of properties for which the department 11 has received notice under AS 46.03.500. When the department determines under (a) 12 of this section that a property on the list is fit for use, the department shall remove the 13 property from the list and notify the owner of the property that the property is fit for 14 use. On request, the department shall give a copy of the list maintained under this 15 section to any person who requests the list. 16 Sec. 46.03.560. Securing the property. The owner of property for which a 17 notice was received under AS 46.03.500 shall ensure that the property is vacated and 18 secured against use 19 (1) within four days after receiving the notice if the owner does not test 20 the property under AS 46.03.520 within four days after receiving the notice; or 21 (2) within four days after receiving the test results if the owner tests 22 the property within four days after receiving the notice, the test shows the presence of 23 a substance that exceeds the limits set in regulations adopted under AS 46.03.530, and 24 the owner does not begin decontamination procedures under AS 46.03.540 within four 25 days after receiving the test results. 26 Sec. 46.03.570. Duties of the department; regulations.  (a) The department 27 shall adopt regulations implementing AS 46.03.500 - 46.03.599. 28 (b) The department shall periodically review information related to 29 decontamination of illegal drug manufacturing sites to determine whether substances 30 should be added to or deleted from AS 46.03.530. The department shall report written 31 findings to the governor if the department determines that a change should be made to 01 the list of substances in AS 46.03.530. The governor shall notify the legislature when 02 written findings have been made under this subsection and provide a copy of the 03 findings to a legislator on request. 04 Sec. 46.03.599. Definitions. In AS 46.03.500 - 46.03.599, 05 (1) "illegal drug manufacturing site" means property on which there is 06 a reasonably clear possibility of contamination with chemicals associated with the 07 manufacturing of a controlled substance and where 08 (A) activity involving the unauthorized manufacture of a 09 controlled substance listed on schedule I or II in AS 11.71 or any precursor 10 chemical for such substances occurs; or 11 (B) there are kept, stored, or located any of the devices, 12 equipment, things, or substances used for the unauthorized manufacture of a 13 controlled substance listed on schedule I or II in AS 11.71; 14 (2) "site" means an illegal drug manufacturing site.