STATE OF NEW JERSEY

209th LEGISLATURE

INTRODUCED NOVEMBER 19, 2001

Sponsored by: Assemblyman JOSEPH AZZOLINA District 13 (Middlesex and Monmouth) SYNOPSIS     Concerns mold hazards in indoor environments; appropriates $2 million. CURRENT VERSION OF TEXT     As introduced.

An Act concerning mold hazards in indoor environments and making an appropriation.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. As used in this act:

    "Department" means the Department of Community Affairs.

    "Eligible owner" means an owner who provides proof to the satisfaction of the department of the presence of a mold hazard on the owner's property.

    "Fund" means the Mold Hazard Assistance Fund established pursuant to section 9 of this act;

    "Interim controls" means a set of measures designed to reduce temporarily human exposure or likely exposure to mold hazards, including specialized cleaning, repairs, maintenance, painting, temporary containment, ongoing monitoring of mold hazards or potential hazards and the establishment and operation of management and resident education programs.

    "Mold" means any form of multicellular fungi that live on plant or animal matter and in indoor environments. Types of mold include, but are not limited to, Cladosporium, Penicillium, Alternaria, Aspergillus, Fusarium, Trichoderma, Memnoniella, Mucor and Stachybotrys Chartarum, often found in water-damaged building materials.

    "Mold hazard" means any exposure level to mold great enough to result in adverse human health effects;

    "Mold remediation" means a set of measures designed to mitigate mold hazards through the use of interim controls or to permanently eliminate mold hazards on a premises by a person certified to perform mold abatement work pursuant section 7 of this act;

    "Residential housing" means any residential dwelling unit, whether detached or attached or in the form of a multiple dwelling, for occupancy by persons as their usual and permanent residence.

 

    2. Before a purchaser or lessee is obligated under any contract to purchase or lease housing, a seller or lessor of residential housing shall:

    a. provide the purchaser or lessee with a mold hazard information pamphlet developed by the department;

    b. disclose to the purchaser or lessee the presence of any known mold hazard in the residential housing and provide to the purchaser or lessee any mold hazard evaluation report available to the seller or lessor; and

    c. permit the purchaser a 10-day period, unless the parties mutually agree upon a different period of time, to conduct a risk assessment or inspection for the presence of mold hazards.

 

    3. Every contract for the purchase or sale of any interest in residential housing shall contain a mold hazard warning statement and a statement signed by the purchaser that the purchaser:

    a. read the mold hazard warning statement and understands its contents;

    b. received a mold hazard information pamphlet; and

    c. received a 10-day opportunity, unless the parties mutually agreed upon a different period of time, before becoming obligated under the contract to purchase the housing, to conduct a risk assessment or inspection for the presence of mold hazards.

 

    4. The mold hazard warning statement shall contain the following text printed in large type on a separate sheet of paper attached to the contract:

    "Every purchaser of any interest in residential real property is notified that such property may present exposure to mold that may present a serious health risk. The seller of any interest in residential real property is required to provide the buyer with any information on mold hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known mold hazards. A risk assessment or inspection for possible mold hazards is recommended prior to purchase."

    5. a. The department shall establish a program of confirmatory monitoring of the presence of mold hazards in residential housing, utilizing local health officers and department personnel.

    b. The department is authorized to employ persons with specialized scientific training necessary to implement the provisions of this act without regard to the provisions of Title 11A of the Revised Statutes.

    6. The department shall establish a public information and education program concerning potential health effects of the presence of mold hazards in residential housing, the geographic areas in the State subject to an actual or potential threat of danger and the measures which can be taken to protect the health, safety and welfare of the citizens of the State. This public information and education program shall include:

    a. A cooperative program with county and local health departments to facilitate health education in response to requests from the public; and

    b. A toll-free public telephone information service within the department to answer questions from residents of the State concerning mold hazards. The availability of the public telephone information service shall be published in the major newspapers circulated in the geographic areas of this State subject to an actual or potential threat of danger from mold hazards.

    7. a. The department shall within 180 days of the enactment of this act establish a program for the certification of persons who test for the presence of mold hazards in buildings and for persons who remediate, and safeguard buildings from, the presence of mold hazards.

    b. Beginning 90 days after the establishment of the certification programs pursuant to subsection a. of this section, only certified personnel shall test for, or remediate or safeguard a building from, the presence of mold hazards. The provisions of this section shall not apply to a person performing this testing or remediation on a building which the person owns, or to a person performing testing or remediation without remuneration.

    c. A person certified pursuant to subsection a. of this section to provide testing or remediation services shall, within 30 days of the provision of these services, disclose to the department the address or location of the building, the name of the owner of the building where the services were provided, and the results of any tests performed.

    d. A person who violates this section, or any rule or regulation adopted pursuant thereto, is guilty of a crime of the third degree.

    8. For the purposes of P.L.1963, c.73 (C.47:1A-1 et seq.), health data relating to individuals and data relating to mold hazards at specific properties, including residential housing, gathered pursuant to the provisions of this act are not public records. The department shall destroy all information in its possession relating to the names and addresses of persons owning properties on which data were collected relating to mold hazards, at the end of five years from the date on which the data were collected.

    9. a. There is established in the department a Mold Hazard Assistance Fund for the purpose of funding loans and grants authorized pursuant section 10 of this act. Moneys in the fund not immediately required for payment or liquid reserves may be invested and reinvested by the department in the same manner in which other department funds may be invested.

    b. There shall be paid into the fund: (1) moneys deposited into the fund as repayment of principal and interest on outstanding loans made from the fund; (2) any income earned upon investment of moneys in the fund by the department pursuant to subsection a. of this section; and (3) moneys made available to the fund through appropriation by the Legislature or otherwise.

    c. Moneys in the fund shall be used exclusively for funding loans and grants made by the department pursuant to section 10 of this act and for defraying the administrative costs of the department in carrying out the purposes and provisions of this act, up to an amount not to exceed 5% of the total moneys appropriated to the fund during the fiscal year. The department shall determine the amounts to be made available from the fund for the purposes of grants and loans on an annual basis.

    10. a. The department shall provide financial assistance in the forms of grants or loans, or a combination thereof, with moneys available from the fund to eligible owners of residential housing for mold remediation, in compliance with the terms of this act.

    b. The department may provide financial assistance, upon application, for up to 100% of the costs of mold remediation, including associated inspection costs, and for temporary relocation assistance, except that no award of financial assistance for a dwelling unit may exceed $20,000.

    c. Financial assistance provided in the form of a loan shall be secured by a lien upon the real property on which the mold remediation is performed and other collateral as the department may consider necessary to secure the interests of the fund in accordance with the provisions and purposes of this act. The department may require the financial assistance to be secured by a personal loan guarantee by the owner of the property or by a lien upon other real property belonging to the person to whom the loan is made.

    d. The department shall establish a program to provide the grants authorized pursuant to this section. Grants shall not be made available to owners of multiple dwellings comprising more than four separate dwelling units. Priority shall not be granted to any residential housing on the basis of its location. Priority may be given, however, to those residences in which children under the age of six reside. The department may award the grants on a pro-rata basis to the applicants, if there is an insufficient amount in the fund to award grants for the full amount of the projected cost of the mold remediation .

    11. Whenever a loan or grant is provided pursuant to this act, the address of the residential housing of the recipient and the details concerning the project shall be entered into a registry that shall be maintained by the department. The department shall enter into the registry mold hazard information it may have for any other residential housing. The residential housing shall be categorized as either mold-free or mold remediated, including housing in which preventative maintenance practices and interim controls have been implemented.

    The purpose of the registry shall be to supply a list from which mold-safe housing can be easily identified, and through which the State's progress in mold remediation may be tracked. The department shall conduct a feasibility study on making the information contained in the registry available to the public through electronic means such as the Internet.

    12. a. There is created in the State Treasury an account appropriated from the funds in the "Catastrophic Illness in Children Relief Fund," established pursuant to section 3 of P.L.1987, c.370 (C.26:2-150), in an amount not to exceed $1,000,000 for the purpose of emergency relocation assistance for children suffering from an illness caused by a mold hazard.

    b. Whenever a child, who is suffering from an illness caused by a mold hazard, is removed from the child's dwelling unit in connection with an order to abate a mold hazard from a local or State health official, the department shall be authorized to make payments from the fund created pursuant to this section for the purpose of providing emergency relocation assistance to that child and the child's family.

    c. Notwithstanding any other provision of law to the contrary, a payment made from the fund created pursuant to this section shall be authorized regardless of whether the relocation assistance is covered by any other State or federal program or any insurance contract, and regardless of whether such expense will exceed 10% of the first $100,000 of annual income of a family plus 15% of the excess income over $100,000, provided that if reimbursement is received from federal or State sources or from insurance proceeds, such reimbursement shall be directed to reimburse the fund for expenses paid under this section .

    13. a. A rental unit required to be registered pursuant to section 2 of P.L.1974, c.50 (C.46:8-28) but not subject to inspection under the “Hotel and Multiple Dwelling Law,” P.L.1967, c.76 (C. 55:13A-1 et seq.) and containing less than five units of dwelling space which are utilized as rental premises, excluding those full-time owner-occupied units of dwelling space, shall be inspected for mold hazard in accordance with the provisions of subsection b. of this section and a schedule and procedures to be established by the department. The schedule shall provide that all such units will be inspected initially prior to the property being placed into rental status or within 36 months if the property is placed into rental status prior to the effective date of this act and once every five years thereafter.

    b. Inspection of rental units under subsection a. of this section may be performed by a local health inspector, local housing inspector, department inspector or a State-certified private mold hazard inspector, subject to the requirements for inspectors as may be established by regulations.

    c. Any local government entity, private or department inspector authorized to perform inspections pursuant to subsection b. of this section shall be permitted to charge a fee to the homeowner to cover the reasonable costs of inspection, pursuant to a schedule to be established by the department.

    d. (1) Any entity that performs an inspection pursuant to this section shall report the inspection results to the homeowners and to the department in such manner and on such forms as the department may prescribe.

    (2) Upon receipt of a report finding that mold hazards may exist, the owner of a rental property or multiple dwelling shall correct the hazard through mold remediation.

    (3) The department shall adopt quality control measures to ensure the quality of the inspections being performed, as well as monitoring the progress of any mold remediation required to be performed.

    (4) Any person violating the provisions of this section, or any order of the department made pursuant to this act, shall be liable for penalties as may be levied against the owner of a multiple dwelling pursuant to section 19 of P.L.1967, c.76 (C.55:13A-19), and the department shall have all of the enforcement powers granted under that section of law to enforce this section.

    14. The department shall establish standards for mold remediation including specialized cleaning, repairs, maintenance, painting, temporary containment and ongoing monitoring of mold hazards or potential hazards.

    15. The department shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), a mold hazard code, or may propose amendments to revise the appropriate model code adopted pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), for the purpose of establishing adequate and appropriate standards to ensure that schools and residential buildings are constructed in a manner that minimizes mold hazards and facilitates any subsequent remediation that might prove necessary. In preparing the mold hazard code standards, the department may employ a guideline of permissible mold exposure limits.

    The department shall include in the mold hazard code standards such testing requirements as may prove reliable, practical and economical to identify sites where a proposed school or residential building will require construction in a manner that minimizes mold hazards and facilitates any subsequent remediation. If a feasible predictive test method is developed, then the standards adopted pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), shall be revised to include further changes in construction standards as necessary to prevent the entry of mold hazards into new schools or residential buildings.

    16. No construction permit shall be issued for the construction of any new school or residential building, except after submission to the construction official of documentation sufficient to establish that the construction will be in accordance with the mold hazard code standards adopted pursuant to section 15 of this act.

    17. No certificate of occupancy shall be issued for any newly constructed school or residential building required to be constructed in accordance with mold hazard code standards as provided in section 16 of this act, except upon verification by the construction official that the school or residential building conforms to the mold hazard code standards.

    18. The department, in consultation with the Department of Environmental Protection, the National Institute of Standards and Technology, the National Association of Homebuilders Research Center and the United States Environmental Protection Agency, shall investigate methods of testing building sites for the purpose of predicting the presence of mold hazards in buildings to be constructed thereon.

    19. a. The department shall prepare and transmit to the Governor and Legislature a study concerning the dangers posed to the public health, safety, and welfare by the presence of mold in indoor environments in the State. The study shall identify the potential sources of contamination in the State, identify demographic, geologic, and geographic areas subject to an actual or potential threat or danger of contamination, and develop a cost-effective strategy for mold contamination testing. The study shall include recommendations for private actions to solve or alleviate potential health problems and any legislative or executive action that should be taken. The department shall prepare and transmit to the Governor and the Legislature interim reports on its progress in implementing this subsection. The department shall transmit its first report six months following enactment of this act and subsequent reports every six months thereafter.

    b. On or before the last day of the 36th month ending after the effective date of this act, and each two years thereafter, the department shall issue a report to the Governor and Legislature on the effectiveness of this act, which report shall include:

    (1) Details on the number and amounts of loans and grants provided and the households served;

    (2) Information obtained and entered on the housing registry created pursuant to this act; and

    (3) The costs incurred and the revenues derived by the department in administering this act including information regarding any fees which may be authorized to be charged therein.

    20. The department shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations necessary to effectuate the provisions of this act.

    21. There is appropriated from the General Fund to the Department of Community Affairs for deposit in the Mold Hazard Assistance Fund established pursuant to section 9 of this act the amount of $1,000,000 for the purposes of the fund as provided by this act.

    22. This act shall take effect on the 90th day following enactment, except that the department may take such administrative actions prior to that date as are necessary to promptly effectuate this act.

                            STATEMENT

    This bill establishes a comprehensive program for remediating the risk of mold hazards in residential housing. First, the bill mandates certain mold hazard disclosures for home sellers. Specifically, the bill requires sellers to do the following: (1) provide the buyer with a mold hazard information pamphlet; (2) disclose the presence of any known mold hazards to the buyer; and (3) give the buyer 10 days to conduct an inspection of the home. If the seller fails to perform any of these tasks, the buyer is released from all obligations under the contract.

    Second, the bill establishes a program of study, monitoring and public information concerning the problem of mold hazards in indoor environments. Specifically, the bill mandates that: (1) the department study the health effects of mold hazards and report its findings to the Governor Legislature every six months; (2) the department conduct an education campaign to inform the public of health effects of mold hazards; and (3) maintain a toll-free telephone information service. Additionally, the bill authorizes the department to create a program of testing for new homes.

    Third, the bill authorizes the department to adopt a mold hazard code. The bill also allows the department to issue construction permits and certificates of occupancy for new schools and residential buildings only if the schools and residential buildings are to be constructed in accordance with the code. The department is also directed to investigate methods of testing for mold hazards.