BILL NUMBER: SB 189 CHAPTERED 10/04/01 CHAPTER 466 FILED WITH SECRETARY OF STATE OCTOBER 4, 2001 APPROVED BY GOVERNOR OCTOBER 3, 2001 PASSED THE SENATE SEPTEMBER 13, 2001 PASSED THE ASSEMBLY SEPTEMBER 12, 2001 AMENDED IN ASSEMBLY JULY 14, 2001 AMENDED IN ASSEMBLY JUNE 20, 2001 AMENDED IN SENATE APRIL 3, 2001 INTRODUCED BY Senator Bowen FEBRUARY 7, 2001 An act to add and repeal Sections 1102.18 and 1940.7.5 of the Civil Code, relating to controlled substance releases. LEGISLATIVE COUNSEL'S DIGEST SB 189, Bowen. Controlled substance release: notification. Existing law requires a seller of residential property to make disclosures upon the transfer of that property, and sets forth the content and form of these disclosures. This bill would require any owner of residential real property who knows, by receipt of a specified notice or actual knowledge, that any release of an illegal controlled substance has come to be located on or beneath that real property to give written notice of that condition to the buyer, as prescribed. The bill would also require an owner of a residential dwelling unit who knows, by receipt of a specified notice or actual knowledge, that such a release has come to be located on or beneath that dwelling unit to give written notice to a prospective tenant prior to the execution of a rental agreement, as prescribed. The bill would repeal the changes made by the bill on January 1, 2004. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1102.18 is added to the Civil Code, to read: 1102.18. (a) For purposes of this section, the following definitions shall apply: (1) "Illegal controlled substance" means a drug, substance, or immediate precursor listed in any schedule contained in Section 11054, 11055, 11056, 11057, or 11058 of the Health and Safety Code, or an emission or waste material resulting from the unlawful manufacture or attempt to manufacture an illegal controlled substance. An "illegal controlled substance" does not include, for purposes of this section, marijuana. (2) "Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing of an illegal controlled substance in a structure or into the environment. (b) (1) Any owner of residential real property who knows, as provided in paragraph (2), that any release of an illegal controlled substance has come to be located on or beneath that real property shall, prior to the sale of the real property by that owner, give written notice of that condition to the buyer pursuant to Section 1102.6 by checking "yes" in question IC1 of the Real Estate Transfer Disclosure Statement contained in that section and attaching a copy of any notice received from law enforcement or any other entity, such as the Department of Toxic Substances Control, the county health department, the local environmental health officer, or a designee, advising the owner of the release on the property. (2) For purposes of this subdivision, a seller's knowledge of the condition is established by the receipt of a notice specified in paragraph (1) or by actual knowledge of the condition from a source independent of the notice. (3) If the seller delivers the disclosure information required by paragraph (1), delivery shall be deemed legally adequate for purposes of informing the prospective buyer of that condition, and the seller is not required to provide any additional disclosure of that information. (4) Failure of the owner to provide written notice to the buyer when required by this subdivision shall subject the owner to actual damages and any other remedies provided by law. In addition, if the owner has actual knowledge of the presence of any release of an illegal controlled substance and knowingly and willfully fails to provide written notice to the buyer, as required by this subdivision, the owner is liable for a civil penalty not to exceed five thousand dollars ($5,000) for each separate violation, in addition to any other damages provided by law. (c) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends that date. SEC. 2. Section 1940.7.5 is added to the Civil Code, to read: 1940.7.5. (a) For purposes of this section, the following definitions shall apply: (1) "Illegal controlled substance" means a drug, substance, or immediate precursor listed in any schedule contained in Section 11054, 11055, 11056, 11057, or 11058 of the Health and Safety Code, or an emission or waste material resulting from the unlawful manufacture or attempt to manufacture an illegal controlled substance. An "illegal controlled substance" does not include, for purposes of this section, marijuana. (2) "Release" means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing of an illegal controlled substance in a structure or into the environment. (b) (1) The owner of a residental dwelling unit who knows, as provided in paragraph (2), that any release of an illegal controlled substance has come to be located on or beneath that dwelling unit shall give written notice to the prospective tenant prior to the execution of a rental agreement by providing to a prospective tenant a copy of any notice received from law enforcement or any other entity, such as the Department of Toxic Substances Control, the county health department, the local environmental health officer, or a designee, advising the owner of that release on the property. (2) For purposes of this subdivision, the owner's knowledge of the condition is established by the receipt of a notice specified in paragraph (1) or by actual knowledge of the condition from a source independent of the notice. (3) If the owner delivers the disclosure information required by paragraph (1), the delivery shall be deemed legally adequate for purposes of informing the prospective tenant of that condition, and the owner is not required to provide any additional disclosure of that information. (4) Failure of the owner to provide written notice to a prospective tenant when required by this subdivision shall subject the owner to actual damages and any other remedies provided by law. In addition, if the owner has actual knowledge of the presence of any release of an illegal controlled substance and knowingly and willfully fails to provide written notice to the renter, as required by this subdivision, the owner is liable for a civil penalty not to exceed five thousand dollars ($5,000) for each separate violation, in addition to any other damages provided by law. (c) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends that date.