ARIZONA STATE SENATE
Phoenix, Arizona
neighborhood
preservation and improvement act
Purpose
Creates statutory procedures and requirements relating to drug contaminated properties. Establishes requirements on liquor establishments relating to activities occurring in parking lots and to revocation of liquor licenses. Allows a governmental agency to require an on-site manager of an apartment complex of more than 20 units to submit a full set of fingerprints for a criminal records check and to attend any crime prevention or abatement program offered by the city, town or county in which the residential rental property is located. Applies neighborhood and victim’s rights for juvenile offenses statutes to acts that would be considered a violation of graffiti laws if committed by an adult. Makes various changes to liquor laws and licensing requirements. Appropriates $3 million, as amended by the Government Committee and $25,000 as amended by the Appropriations Committee 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), $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.
Background
In 2000, H.B. 2125 established the Arizona Neighborhood Preservation and Investment Commission and its membership, authorities and procedures and the Arizona neighborhood preservation and investment fund to award grants to cities to fund neighborhood preservation and investment projects that must be for the installation, repair or upgrading of publicly owned municipal infrastructure.
This legislation appropriates $3 million, as amended by the Government Committee and $25,000 as amended by the Appropriations Committee 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), $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. Future personnel costs related to the continued service of the newly hired DLLC special investigators may be expected.
Provisions
1. Identifies this legislation as the “Neighborhood Preservation and Improvement Act.”
2. Requires a peace officer who has discovered a property where methamphetamine, ecstasy or LSD is being manufactured or a person is arrested for having chemicals to manufacture such drugs to send written notice of removal.
3. Requires a peace officer to deliver a notice of removal to the property owner, manager or drop box if they are on-site following discover 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.
4. Allows peace officers to post the notice of removal on the law enforcement agency’s web site.
5. Provides element of the notice of removal.
6. Establishes violation of an order or notice of removal as a class 6 felony.
7. Establishes knowingly disturbing a posted notice of removal as a class 2 misdemeanor.
8. Allows an owner, landlord or manager to disregard notice requirements to prospective buyers and tenants and to allow any person to utilize the real property or any person to remove the notice of removal posted by a peace officer once ADEQ issues a compliance letter that remediation methods have been properly applied to the property.
9. Prohibits unauthorized persons from entering the contaminated portion of a property until the owner, landlord, manager or other person establishes that the area has been satisfactorily remediated and ADEQ has issued a compliance letter.
10. Requires ADEQ to issue a compliance letter when it has received documentation showing that any of the following remediation methods has been properly applied to the contaminated portion of the property:
a. the method prescribed by ADEQ’s remediation standards of practice.
b. having an environmental professional or licensed contractor physically remove contaminated porous surfaces and decontaminate nonporous surfaces with an appropriate cleaning solution.
c. 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.
11. Requires ADEQ to issue or decline to issue a compliance letter within 10 business days after receipt of documentation showing that any authorized remediation methods have been properly applied.
12. Allows ADEQ to issue compliance letters through its voluntary remediation program and to apply any part of the program that ADEQ determines is applicable to the remediation of contaminated property.
13. Establishes legislative intent that ADEQ exhaust the $160,000 state general fund appropriations in FY 2001-2002 and FY 2002-2003 prior to applying the voluntary remediation program.
14. 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.
15. Requires a peace officer, following removal of persons from a contaminated property or unit, to post a written notice of removal in a conspicuous place on the property or unit that it is unlawful for any unauthorized person to enter the contaminated portion of the property until ADEQ issues a compliance letter.
16. Prohibits the entry of contaminated property after posting of notice by anyone other than the owner, landlord, manager or a environmental professional or licensed contractor.
17. Requires, if notice of removal has been received that methamphetamine, ecstasy or LSD was manufactured or an drug manufacturing equipment arrest occurred:
a. owners of real property to notify a buyer of the property in writing within five days of purchase of this fact. Requires a buyer to acknowledge receipt of the notice. Allows a buyer to cancel the real estate contract within five days of receiving the notice. Allows a buyer who was not given notice to void the contract at their discretion.
b. landlords of real property to notify a prospective tenant for 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 tenant to void a rental agreement at their discretion of the landlord fails to provide notice.
c. owners or managers of hotels or motels to notify a customer in writing of this fact prior to the customer occupying the room. Allows the customer to void the agreement at their discretion if the owner or manager fails to provide notice.
d. owners of a mobile home or RV to notify a buyer or prospective tenant in writing of this fact. 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 buyers and tenants to void the purchase contract or rental agreement at their discretion if an owner fails to provide notice.
18. Requires ADEQ to establish and promulgate standards of practice guidelines for remediation of residual contamination from the manufacture of methamphetamine, ecstasy or LSD or storage of manufacturing equipment or materials by January 1, 2002.
19. Requires ADEQ to contract for an independent study to develop and recommend 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. Exempts ADEQ from procurement rules in obtaining the study.
20. Requires ADEQ to make draft recommendations public, to allow for a 30 day public comment period on the draft recommendations and to hold a public meeting to receive oral comments on the draft recommendations prior to promulgating the standards.
21. Establishes the legislative intent 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.
22. Prohibits the use of water quality assurance revolving fund monies 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.
23. Stipulates that compliance with cleanup laws does not preclude liability for damages stemming from gross negligence or intentional misconduct by a state or local government.
On-Site Manager of Residential
Rental Property (33-1906)
24. Allows a governmental agency to require an on-site manager of an apartment complex that is a nuisance or slum property and which consists of 20 or more units:
a) to submit a full set of fingerprints and fingerprinting fee via the Department of Public Safety for the purposes of a criminal records check. Requires the on-site manager to bear the cost of obtaining a criminal records check, and
b) to attend any crime prevention or abatement program offered by the city, town or county in which the residential rental property is located.
25. Establishes a $500 fine for a liquor licensee who serves a disorderly or obviously intoxicated person or allows them to remain on the premises. (4-246)
26. Requires off-site or on-sale retailers to post one or more signs in the patrons’ parking lot that clearly state that no trespassing is allowed. Requires the DLLC to adopt rules relating to the posting of no trespassing signs. (4-262)
27. Requires the Director of DLLC to notify a licensee of failure to post no trespassing signs on a determination that a licensee is in violation of no trespassing sign requirements. Subjects licensee to a civil penalty of no more than $500 if trespassing signs are not posted 30 days after notice of the violation. (4-262)
28. Includes within the mandatory floor plan submittal of liquor licensees to include the designated customer parking area and prohibits physical alteration of the parking area without having obtained written approval from the Director of DLLC. (4-207.01)
29. 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. (Sec. 25)
30. Allows the Director of DLLC to suspend, revoke or refuse to renew any liquor license for the following reasons:
a) the licensee knows of and fails to avoid or mitigate acts that occur in an area that is subject to the licensee’s control surrounding the licensed premises but not on the licensed premises.
b) the licensee is convicted of a violation of recklessly creating or maintaining a condition that endangers the health and safety of others or knowingly conducting or maintaining any premises where persons gather to engage in unlawful conduct under public nuisance laws.
c) the licensee or an employee of the licensee during normal business hours to know about or knowingly permit the occurrence of the following acts in an adjacent parking lot without calling law enforcement: prostitution, underage drinking, drug use or sales, stolen property trafficking, serious altercations or unlawful gambling. Stipulates that such reports to law enforcement cannot be used against the licensee. (4-210)
31. Requires applicants for a liquor license, who have forfeited their license as opposed to having it revoked, to follow the normal application procedure for a liquor license. (4-210)
32. Requires the director of DLLC to consider mitigating circumstances in any action, rather than solely an action to revoke a license, if a lienholder to a liquor establishment can prove specified elements. Allows lienholders to participate in the action.
33. Allows a lienholder to a liquor establishment who has a bona fide interest to retain the license if mitigation is allowed by the director of DLLC. Defines bona fide interest.
34. Requires the director of DLLC to require the lienholder of a liquor establishment to pay any civil monetary penalty imposed on the license if the director does not revoke a liquor license following a hearing.
35. Stipulates that peace officers can enter any parking lot associated with a liquor establishment to enforce state laws.
36. Expands the definition of “act of violence” to include assault. (4-101)
37. Applies neighborhood and victim’s rights for juvenile offenses statutes to acts that would be considered a violation of graffiti laws if committed by an adult. (8-381 and 13-4401.01)
38. Includes violation of graffiti laws under the definition of criminal offense under victim’s rights statutes. (13-4401)
39. Makes an appropriation 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. Exempts the appropriation from lapsing. Under the Government Committee amendment, $3 million is appropriated; under the Appropriations Committee amendment, $25,000 is appropriated.
40. Appropriates $200,000 in FY 2001-2002 and FY 2002-2003 from the state general fund to DLLC for hiring four special investigators for the purposes of this act and operating expenses associated with the special investigators.
41. 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.
42. 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. Exempts the appropriation from lapsing in FY 2001-2002 and FY 2002-2003.
43. Prescribes definitions.
44. Makes technical and conforming changes.
45. Provides for a general effective date.
Amendments Adopted by Government Committee
1. Limits ability of governmental agencies to request an on-site manager to submit fingerprints for a criminal records check or to attend crime prevention or abatement programs to only the managers of nuisance or a slum property.
2. Removes language regarding the rebuttable presumption that a liquor establishment serves the public good and the inclusion of a parking lot as part of the establishment for liquor violations.
3. Requires the director of DLLC to consider mitigating circumstances in any action, rather than solely an action to revoke a license, if a lienholder to a liquor establishment can prove specified elements. Allows lienholders to participate in the action.
4. Allows a lienholder to a liquor establishment who has a bona fide interest to retain the license if mitigation is allowed by the director of DLLC. Defines bona fide interest.
5. Requires the director of DLLC to require the lienholder of a liquor establishment to pay any civil monetary penalty imposed on the license if the director does not revoke a liquor license following a hearing.
6. Prohibits a liquor licensee or an employee of a licensee, during business hours, to knowingly permit the following activity in a parking lot immediately adjacent to the premises and fail to notify a law enforcement agency: prostitution, underage drinking, drug use or sale, selling stolen goods, a serious altercation or unlawful gambling.
7. Stipulates that calls reporting such acts to law enforcement cannot be used against the licensee in any disciplinary or compliance action or in an administrative proceeding.
8. Stipulates that peace officers can enter any parking lot associated with a liquor establishment to enforce state laws.
9. Requires a written notice rather than affidavit for notification regarding drug properties.
10. Allows a criminal, civil or administrative action to be brought against a seller or lessor of property for failure to follow statutory guidelines for notification of drug properties, yet stipulates that such failure is not grounds for terminating or ending any property transaction for lease.
11. Lowers the appropriation in FY 2001-2002 from the state general fund to the neighborhood preservation and investment fund to provide grants for the improvement of declining areas in cities and towns from $10 million to $3 million.
1. Removes language relating to drug property clean-up and establishes the following:
2. Requires a peace officer who has discovered a property where methamphetamine, ecstasy or LSD is being manufactured or a person is arrested for having chemicals to manufacture such drugs to send written notice of removal.
3. Requires a peace officer to deliver a notice of removal to the property owner, manager or drop box if they are on-site following discover 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.
4. Allows peace officers to post the notice of removal on the law enforcement agency’s web site.
5. Provides element of the notice of removal.
6. Establishes violation of an order or notice of removal as a class 6 felony.
7. Establishes knowingly disturbing a posted notice of removal as a class 2 misdemeanor.
8. Allows an owner, landlord or manager to disregard notice requirements to prospective buyers and tenants and to allow any person to utilize the real property or any person to remove the notice of removal posted by a peace officer once ADEQ issues a compliance letter that remediation methods have been properly applied to the property.
9. Prohibits unauthorized persons from entering the contaminated portion of a property until the owner, landlord, manager or other person establishes that the area has been satisfactorily remediated and ADEQ has issued a compliance letter.
10. Requires ADEQ to issue a compliance letter when it has received documentation showing that any of the following remediation methods has been properly applied to the contaminated portion of the property:
a. the method prescribed by ADEQ’s remediation standards of practice.
b. having an environmental professional or licensed contractor physically remove contaminated porous surfaces and decontaminate nonporous surfaces with an appropriate cleaning solution.
c. 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.
11. Requires ADEQ to issue or decline to issue a compliance letter within 10 business days after receipt of documentation showing that any authorized remediation methods have been properly applied.
12. Allows ADEQ to issue compliance letters through its voluntary remediation program and to apply any part of the program that ADEQ determines is applicable to the remediation of contaminated property.
13. Establishes legislative intent that ADEQ exhaust the $160,000 state general fund appropriations in FY 2001-2002 and FY 2002-2003 prior to applying the voluntary remediation program.
14. 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.
15. Requires a peace officer, following removal of persons from a contaminated property or unit, to post a written notice of removal in a conspicuous place on the property or unit that it is unlawful for any unauthorized person to enter the contaminated portion of the property until ADEQ issues a compliance letter.
16. Prohibits the entry of contaminated property after posting of notice by anyone other than the owner, landlord, manager or a environmental professional or licensed contractor.
17. Requires, if notice of removal has been received that methamphetamine, ecstasy or LSD was manufactured or an drug manufacturing equipment arrest occurred:
a. owners of real property to notify a buyer of the property in writing within five days of purchase of this fact. Requires a buyer to acknowledge receipt of the notice. Allows a buyer to cancel the real estate contract within five days of receiving the notice. Allows a buyer who was not given notice to void the contract at their discretion.
b. landlords of real property to notify a prospective tenant for 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 tenant to void a rental agreement at their discretion of the landlord fails to provide notice.
c. owners or managers of hotels or motels to notify a customer in writing of this fact prior to the customer occupying the room. Allows the customer to void the agreement at their discretion if the owner or manager fails to provide notice.
d. owners of a mobile home or RV to notify a buyer or prospective tenant in writing of this fact. 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 buyers and tenants to void the purchase contract or rental agreement at their discretion if an owner fails to provide notice.
18. Requires ADEQ to establish and promulgate standards of practice guidelines for remediation of residual contamination from the manufacture of methamphetamine, ecstasy or LSD or storage of manufacturing equipment or materials by January 1, 2002.
19. Requires ADEQ to contract for an independent study to develop and recommend 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. Exempts ADEQ from procurement rules in obtaining the study.
20. Requires ADEQ to make draft recommendations public, to allow for a 30 day public comment period on the draft recommendations and to hold a public meeting to receive oral comments on the draft recommendations prior to promulgating the standards.
21. Establishes the legislative intent 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.
22. Prohibits the use of water quality assurance revolving fund monies 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.
23. 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.
24. 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. Exempts the appropriation from lapsing in FY 2001-2002 and FY 2002-2003.
25. Lowers from $10,000,000 to $25,000 the appropriation to the Arizona neighborhood preservation and investment fund for providing grants for the improvement of declining areas in cities and towns.
26. Extends the $200,000 appropriation in FY 2001-2002 to DLLC for hiring four special investigators for an additional fiscal year (through FY 2002-2003).
27. Stipulates that compliance with cleanup laws does not preclude liability for damages stemming from gross negligence or intentional misconduct by a state or local government.
28. Prescribes definitions.
Senate Action
GOV 2/26/01 DPA 5-0-1-0
APPROP 3/9/01 DPA 11-0-1-0
Prepared by Senate Staff
March 12, 2001