House of Representatives

SB 1347

neighborhood preservation and improvement act

Sponsors: Senators Cummiskey, Gerard, Bundgaard, Mitchell, et al.

DPA	Committee on Counties & Municipalities
X	Committee on Appropriations
	Caucus and COW	This bill as passed the Senate contains an Appropriation clause.
	As Passed the House

SB 1347 is designated as “the neighborhood preservation and improvement act”. The bill outlines statutory procedures and requirements relating to drug contaminated properties and establishes requirements on liquor establishments regarding activities occurring in parking lots and revocation of liquor licenses. The bill allows a government agency to require an on-site apartment complex manager to submit fingerprints for a criminal records check and outlines programs which the manager may be required to attend. SB 1347 makes various changes to liquor laws and licensing requirements. The bill appropriates $25,000 in FY 2001-2002 from the state general fund to the Arizona neighborhood preservation and investment fund, $200,000 in FY 2001-2002 and in FY 2002-2003 from the state general fund to the Arizona Department of Liquor Licenses and Control (DLLC) to fund four special investigators to work exclusively in the neighborhood association interaction and liquor enforcement management unit, $200,000 in FY 2001-2002 for the Arizona Department of Environmental Quality (ADEQ) for developing contaminated property clean up standards and $160,000 in FY 2001-2002 and FY 2002-2003 to ADEQ to hire two employees to implement the provisions of this legislation.

History

Laws 2000, Chapter 202 established the Arizona Neighborhood Preservation and Investment Commission. The legislation outlined the Commission’s makeup, powers and duties and established the Arizona neighborhood preservation and investment fund consisting of monies provided from a variety of sources. The Commission was then authorized to grant monies from the fund to cities to fund neighborhood preservation and investment projects. SB 1347 appropriates $25,000 in the next fiscal year from the state general fund to the Arizona neighborhood and investment fund.

Provisions

· Designates the legislation as the “Neighborhood Preservation and Improvement Act”.

· Establishes a $500 fine for a liquor licensee who serves a disorderly or obviously intoxicated person or allows them to remain on the premises.

· Provides that as a condition of licensure, a licensee shall allow a peace officer at any time to enter any parking lot associated with the licensed premises.

· Requires off-sale or on-sale retailers to post one or more signs in the parking lot used by the licensee’s patrons that clearly state that no trespassing is allowed. States that this is not intended to create a new duty of the licensee to protect the safety of any person.

· Requires liquor licensees to file floor plans and diagrams, including the designated customer parking area, with DLLC by August 1, 2002. Allows the Director of DLLC to suspend, revoke or refuse to renew the licenses of individuals who do not comply with the filing deadline.

· Permits the Director of DLLC to suspend, revoke or refuse to renew any liquor license if the licensee or an employee of the licensee, during normal business hours, knows about or knowingly permits the occurrence of the following acts in an immediate adjacent parking area and fails to contact a law enforcement agency: prostitution, underage drinking, drug use or sales, stolen property trafficking, an act of violence or unlawful gambling.

· States that the prohibitions regarding the liquor licensee knowingly allowing the outlined practices to occur in the adjacent parking area are deemed for the purpose of bringing an offender to justice, rather create a new duty for the licensee.

· Allows the lien holder of a liquor establishment to participate in any action against the establishment and requires the director of DLLC to consider mitigation on behalf of the lienholder if the lienholder can prove certain elements. Adds to those elements:

Ø That the lienholder’s interest is a bona fide security interest. Defines bona fide security interest.

Ø That the lienholder reasonably attempted to remain informed by the licensee the business’ conduct.

· Permits the director of DLLC, in the event that the director does not decide to revoke the license based on the mitigating circumstances, to require the lien holder to pay any civil monetary penalty imposed on the licensee.

· Stipulates that if the director of DLLC forfeits the licensee’s interest, then the location shall requalify for a license unless a bona fide lien holder demonstrates mitigation.

· Applies neighborhood and victim’s rights for juvenile offense statutes to acts that would be considered a violation of graffiti laws if committed by an adult.

· Includes graffiti crimes under the definition of criminal offense under victim’s right statutes.

· Expands the definition of act of violence to include assault.

· Requires a peace officer who discovers real property on which methamphetamine, ecstacy or LSD is being manufactured or if a person is arrested for having chemicals or equipment used to manufacture these drugs on their property, to send a written notice of removal.

· Stipulates that all of the following shall occur if a notice of removal has been received due to an arrest or discovery regarding methamphetamine, ecstacy or LSD manufacturing:

Ø Owners of the real property shall notify a buyer of the property within five days after the buyer signs the purchase contract of this fact in writing. Requires the buyer to acknowledge receipt of the notice. Stipulates that a buyer may cancel the purchase contract within five days of notice. Allows a buyer who has not received notice to void the purchase contract.

Ø Landlords of real property shall notify prospective tenants of the dwelling unit of this fact in writing. Requires tenants to acknowledge receipt of the notice prior to taking possession of the property or signing a rental agreement. Requires notice to be attached to the rental agreement. Allows a tenant who has not received notice to void the rental contract.

Ø Owners or managers of hotels or motels shall notify prospective customers of the room of this fact in writing. Allows a customer who has not received notice to void the agreement.

Ø Owners of a mobile home or RV shall notify buyers or prospective tenants of this fact in writing. Requires a buyer to acknowledge receipt of the notice prior to taking possession of the mobile home or RV and requires the tenant to acknowledge receipt prior to taking possession or signing a rental agreement. Requires notice to be attached to mobile home or RV rental agreements. Allows a buyer or tenant who has not received notice to void the purchase contract or rental agreement.

· Requires ADEQ to establish and promulgate guidelines for standards of practice for remediation of residual contamination found on real property from the manufacturing of methamphetamine, ecstacy or LSD by January 1, 2002.

· Requires ADEQ to contract for an independent study to develop and recommend the standards of practice and remediation levels for the cleanup of residual contamination found on real property resulting from the manufacture of methamphetamine, ecstasy and LSD and standards for certifying remediation specialists by the Board of Technical Registration.

· Contains a legislative intent section that stipulates that any remediation levels for the cleanup of residual contamination from manufacturing methamphetamine, ecstasy or LSD can only be prescribed in statute after the independent study is completed.

· Requires ADEQ to ensure all of the following occur regarding the independent study:

Ø The contractor draft recommendations are made available to the public.

Ø A 30-day public comment period on the draft is held to allow the public time to comment on the draft recommendations.

Ø A public meeting is held during the public comment period to receive oral comments on the draft recommendations.

· Requires a peace officer to order the removal of all persons from the contaminated portion of the property, dwelling unit or mobile home or RV after the gross contamination has been removed.

· Stipulates that after persons are removed from the property, the peace officer shall post a written notice of removal in a conspicuous place on the property that it is unlawful for any unauthorized person to enter the contaminated portion of the property until ADEQ issues a compliance letter.

· Prohibits anyone except the owner, the landlord or manager of the property, the environmental professional or licensed contractor from entering the property after the notice has been posted and before ADEQ issues a compliance letter.

· Requires a peace officer to deliver a notice of removal to the property owner, manager or drop box if they are on-site following discovery of a lab or arrest of a person. Requires a peace officer to send the notice of removal by certified mail within two business days to the property owner’s address on file with the county assessor, the owner’s on-site manager or the owner of the mobile home or RV who are deemed to receive the notice of removal five days after the notice is mailed.

· Stipulates that a peace officer may also post the notice of removal on the law enforcement agency’s web site.

· Outlines required elements of the notice of removal.

· Stipulates a person who knowingly violates an order or notice of removal is guilty of a class 6 felony.

· States a person who knowingly disturbs a posted notice of removal is guilty of a class 2 misdemeanor.

· Requires ADEQ is issue a compliance letter after it receives documentation showing any of the following remediation methods have been properly applied to the property:

Ø The methods prescribed by ADEQ’s remediation standards of practice.

Ø Having an environmental professional or licensed contractor physically remove contaminated porous surfaces and decontaminate nonporous surfaces with an appropriate cleaning solution.

Ø Having an environmental professional or licensed contractor attest that the portion of real property does not presently pose a risk from the residual contamination if persons are allowed to occupy the area.

· Allows all of the following to occur once ADEQ issues a compliance letter that remediation methods have been applied to the property:

Ø The owner, landlord, or manager may disregard notice requirements.

Ø Any person may use, enter, occupy, rent and sell the property.

Ø Any person may remove the notice of removal posted by a peace officer.

· Allows ADEQ to issue a compliance letter through its voluntary remediation program and to apply any part of that program it determines is applicable to the remediation of the property.

· Requires ADEQ to issue or decline to issue a compliance letter within ten business days after receipt of documentation showing that any authorized remediation methods have been properly applied.

· Clarifies that a state or local government and its employees shall not be held liable for costs or damages incurred resulting from the implementation of the drug property cleanup provisions of this act unless the damages occurred from gross negligence or intentional misconduct.

· Clarifies that a judicial officer may take into account whether the accused is manufacturing any drug found in a drug test submitted to the court, when determining the method of release or amount of bail.

· States monies in the water quality assurance revolving fund shall not be used for any costs associated with drug property cleanup, except for reimbursing a political subdivision for its costs in response to a threat of a release of a hazardous substance or pollutants that present an immediate and substantial endangerment to the public health or the environment.

· Allows a government agency to a require an on-site manager of a residential rental property that is determined to be a nuisance or slum property consisting of 20 or more units to:

Ø Submit a full set of fingerprints and pay the fingerprinting fee to the Department of Public Safety (DPS) for the purposes of a criminal records check. Requires the manager to bear the cost of obtaining the criminal records check.

Ø Attend any crime prevention and abatement programs offered by the city, town or county in which the property is located.

· Appropriates $25,000 in FY 2001-2002 from the state general fund to the Arizona neighborhood preservation and investment fund for the purpose of providing grants for the improvement of declining areas in cities and towns.

· Appropriates $200,000 in FY 2001-2002 and FY 2002-2003 from the state general fund to DLLC for hiring four special investigators that work exclusively in the neighborhood association interaction and liquor enforcement management unit.

· Appropriates $200,000 in FY 2001-2002 from the state general fund to ADEQ to pay for the independent study to develop and recommend standards for the cleanup of contaminated property.

· Appropriates $160,000 in FY 2001-2002 and in FY 2002-2003 from the state general fund to ADEQ for hiring two full-time employees to implement contaminated property laws.

· Makes other technical and conforming changes

SB 1347 was amended in the Counties & Municipalities Committee as follows:

· Stipulates that a peace officer may not publish the notice of removal for a drug property on the law enforcement agency’s web site unless the owner fails to remediate the contamination.

· States that the property owner may have an environmental professional treat the contaminated porous surfaces in a drug property rather than just remove those surfaces.

· Clarifies the definition of real property.

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45th Legislature

First Regular Session 5 April 3, 2001

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