METH Disclosure Act

Summary: Meth Exposure to the Home Disclosure Act or the METH Disclosure Act This bill directs the Department of Housing and Urban Development (HUD), in coordination with the Environmental Protection Agency and any other federal agency with knowledge of methamphetamine-based hazards, to promulgate regulations meeting certain criteria for the disclosure of methamphetamine-based hazards in housing (other than newly constructed or never occupied housing) offered for sale or lease. &quot;Methamphetamine-based hazard&quot; means any condition that causes exposure to any hazardous substance, pollutant, or contaminant associated with the manufacture of methamphetamine that would result in adverse human health effects. HUD may carry out necessary investigations, and any U.S. district court within the jurisdiction of which one is carried out may issue orders for compliance with it. The bill prescribes civil money penalties for violations of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Meth Exposure to the Home Disclosure 
Act'' or the ``METH Disclosure Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) since 2007, there has been a net increase in 
        methamphetamine laboratory incidents across the United States, 
        as the number of incidents has risen from 6,858 in 2007 to 
        9,240 in 2014, with a peak of 15,217 in 2010;
            (2) 23 States have laws that require landlords to inform 
        new renters or potential buyers if a building was previously 
        used as a methamphetamine lab, but the Drug Enforcement Agency 
        estimates that only 5 percent of homes used to make 
        methamphetamine in the United States are disclosed;
            (3) research shows that for every pound of methamphetamine 
        created by a lab, 5 pounds of toxic waste is produced, most of 
        which becomes airborne and is subsequently absorbed by other 
        objects, such as carpets, furniture, drywall, and countertops;
            (4) the toxic waste that does not become airborne can 
        remain as residue in bathtubs, toilets, sinks, and floors if it 
        is spilled or not disposed of properly, and without proper 
        cleaning, these harmful chemicals can remain in the affected 
        buildings for years;
            (5) harmful methamphetamine by-products include propane 
        fuel, lithium, sodium hydroxide, and solvents like benzene, 
        acetone, and hexane, all of which can have negative and lasting 
        effects on families and children in particular;
            (6) coming into contact with these substances has been 
        shown to cause dry mouth, nose bleeds, respiratory issues, 
        issues with the brain, liver, and kidneys, birth defects, and 
        reproductive problems;
            (7) solvents like acetone can cause death, while chronic 
        inhalation of hexane can cause significant damage to the 
        central nervous system, and the by-product benzene has been 
        linked to anemia and leukemia in adults as well as children;
            (8) testing for methamphetamine and harmful by-products of 
        methamphetamine is relatively simple and inexpensive;
            (9) once a family or business has moved into an affected 
        building, properly cleaning and sterilizing the building can 
        cost up to $10,000, and such an expense can represent a 
        crippling and unexpected financial burden on families and 
        businesses in the United States; and
            (10) a law requiring landlords to disclose information 
        about the previous methamphetamine usage of a building could 
        prevent unnecessarily exposing millions of people in the United 
        States to potentially lethal circumstances, and the Federal 
        Government must therefore take initiative on this issue to 
        preserve the health and financial stability of the people of 
        the United States.

SEC. 3. DISCLOSURE OF INFORMATION CONCERNING THE MANUFACTURE OF 
              METHAMPHETAMINE UPON TRANSFER OR LEASE OF COVERED 
              HOUSING.

    (a) Definitions.--In this section--
            (1) the term ``covered housing''--
                    (A) means any housing that is a dwelling unit, 
                including the grounds, outbuildings, fences, 
                structures, and, where applicable, common areas; and
                    (B) does not include housing that, as of the date 
                on which a seller or lessor sells or leases the 
                housing, is--
                            (i) newly constructed; or
                            (ii) has never been occupied;
            (2) the term ``methamphetamine-based hazard'' means any 
        condition that causes exposure to any hazardous substance or 
        pollutant or contaminant associated with the manufacture of 
        methamphetamine that would result in adverse human health 
        effects, as established by the appropriate Federal agency; and
            (3) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
    (b) Disclosure in Purchase and Sale or Lease of Covered Housing.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary, in coordination with the 
        Administrator of the Environmental Protection Agency and any 
        other Federal agency with knowledge of methamphetamine-based 
        hazards, shall promulgate regulations for the disclosure of 
        methamphetamine-based hazards in covered housing that is 
        offered for sale or lease.
            (2) Requirements.--The regulations promulgated under 
        paragraph (1) shall require that--
                    (A) before the purchaser or lessee is obligated 
                under any contract to purchase or lease covered 
                housing, the seller or lessor shall--
                            (i) provide a written disclosure to the 
                        purchaser or lessee--
                                    (I) of any knowledge of whether 
                                methamphetamine was manufactured in the 
                                covered housing; and
                                    (II) of the presence of any known 
                                methamphetamine-based hazards in the 
                                covered housing; and
                            (ii) allow the purchaser or lessee 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 
                        methamphetamine-based hazards; and
                    (B) each contract for the purchase or lease of 
                covered housing shall contain a statement signed by the 
                seller and purchaser or the lessor and lessee, as 
                applicable, that--
                            (i) the seller or lessor has made the 
                        written disclosures required under subparagraph 
                        (A)(i); and
                            (ii) the purchaser or lessee had a 10-day 
                        opportunity (unless the parties mutually agreed 
                        upon a different period of time or waived the 
                        opportunity) before becoming obligated under 
                        the contract to purchase or lease the covered 
                        housing to conduct a risk assessment or 
                        inspection for the presence of methamphetamine-
                        based hazards.
            (3) Compliance assurance.--Whenever a seller or lessor has 
        entered into a contract with an agent for the purpose of 
        selling or leasing a unit of covered housing, the regulations 
        promulgated under paragraph (1) shall require the agent, on 
        behalf of the seller or lessor, to ensure compliance with the 
        requirements of this section.
            (4) Investigative authority of the secretary.--
                    (A) Investigations.--The Secretary may--
                            (i) conduct such investigations as may be 
                        necessary to administer and carry out the 
                        duties of the Secretary under this section; and
                            (ii) in carrying out clause (i), administer 
                        oaths and require by subpoena the production of 
                        documents and the attendance and testimony of 
                        witnesses as the Secretary deems advisable.
                    (B) Enforcement.--Any district court of the United 
                States within the jurisdiction of which an inquiry is 
                carried, on application of the Attorney General, may, 
                in the case of contumacy, failure, or refusal to permit 
                entry under this section or to obey a subpoena of the 
                Secretary issued under subparagraph (A), issue an order 
                requiring such entry or such compliance therewith, and 
                any failure to obey such order of the court may be 
                punished by such court as a contempt thereof.
    (c) Penalties for Violations.--
            (1) In general.--Any person who knowingly violates any 
        provision of this section shall be jointly and severally liable 
        to--
                    (A) the purchaser or lessee of the covered housing, 
                as applicable, in an amount equal to--
                            (i) any costs associated with--
                                    (I) the remediation or clean-up of 
                                the covered housing to remove any 
                                methamphetamine-based hazards; and
                                    (II) any health-related injuries or 
                                ailments related to methamphetamine-
                                based hazards in the covered housing; 
                                and
                            (ii) reasonable attorney's fees associated 
                        with the claim; and
                    (B) the Secretary, for civil money penalties in 
                accordance with section 102(f) of the Department of 
                Housing and Urban Development Reform Act of 1989 (42 
                U.S.C. 3545(f)).
            (2) Enjoinment.--The Secretary may take such lawful action 
        as may be necessary to enjoin any violation of this section.
    (d) Validity of Contracts and Liens.--Nothing in this section 
shall--
            (1) affect the validity or enforceability of--
                    (A) any sale or contract for the purchase and sale 
                or lease of any interest in covered housing; or
                    (B) any loan, loan agreement, mortgage, or lien 
                made or arising in connection with a mortgage loan; or
            (2) create a defect in title.
    (e) Effective Date.--The regulations promulgated under subsection 
(b)(1) shall take effect on the date that is 1 year after the date of 
enactment of this Act.
    (f) Authorization of Appropriations.--For purposes of carrying out 
this section, there are authorized to be appropriated--
            (1) $500,000 for fiscal year 2017;
            (2) $1,000,000 for fiscal year 2018; and
            (3) $2,000,000 for each of fiscal years 2019, 2020, and 
        2021.