UNOFFICIAL COPY 23 RS BR 1385 Page 1 of 6 XXXX 2/14/2023 3:31 PM Jacketed AN ACT relating to testing for lead content prior to a home sale or rental and 1 making an appropriation therefor. 2 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3 SECTION 1. A NEW SECTION OF KRS CHAPTER 382 IS CREATED TO 4 READ AS FOLLOWS: 5 (1) As used in this section: 6 (a) "Commissioner" means the commissioner of the Department for 7 Environmental Protection; 8 (b) "Department" means the Department for Environmental Protection; 9 (c) "Pervious outdoor space" means any outdoor soil, natural turf, or other 10 surface that does not substantially reduce or prevent absorption of storm 11 water into land, and that can be dug and harvested from the ground 12 through the use of ordinary garden tools without great effort; 13 (d) "Lead-based paint" means paint or other surface coatings that contain lead 14 in excess of safe limits established by the Environmental Protection Agency 15 or other appropriate federal agency; 16 (e) "Lead-contaminated dust" means surface dust in residential dwellings that 17 contains an area or mass concentration of lead in excess of levels 18 determined by the Environmental Protection Agency or other appropriate 19 federal agency to pose a threat of adverse health effects in pregnant women 20 or young children; 21 (f) "Lead-contaminated soil" means bare soil on residential real property that 22 contains lead at or in excess of the levels determined to be hazardous to 23 human health by the Environmental Protection Agency or other appropriate 24 federal agency; and 25 (g) "Soil-testing laboratory" means a soil-testing laboratory certified by the 26 department pursuant to administrative regulations to determine lead content 27 UNOFFICIAL COPY 23 RS BR 1385 Page 2 of 6 XXXX 2/14/2023 3:31 PM Jacketed in soil. 1 (2) A contract of sale for an individual lot of real property built before 1978 that is 2 intended for residential purposes and includes at least two thousand five hundred 3 (2,500) square feet of pervious outdoor space shall require that: 4 (a) The seller conduct tests for: 5 1. Lead-contaminated soil, conducted by a soil-testing laboratory; 6 2. Lead-based paint inside the residence; and 7 3. Lead-contaminated dust inside the residence; 8 (b) The cost of all testing shall be paid by the seller; and 9 (c) The transfer of title shall not occur unless both the buyer and seller have 10 received and signed a copy of the results of the tests for lead-contaminated 11 soil, lead-based paint, and lead-contaminated dust. 12 (3) (a) The results of each test required under subsection (2)(a) of this section to 13 determine lead content shall be reported to the buyer, the seller, and the 14 department in a format that provides the level of lead content in the soil of 15 the lot, in parts per million, as well as the results of tests for lead-based 16 paint and lead-contaminated dust and whether the lead content is high 17 enough to constitute a hazard under the standards established by the 18 Environmental Protection Agency or other appropriate federal agency. 19 (b) The department shall compile the data accumulated from the test results in 20 a manner that shall be useful for studying lead contamination 21 comprehensively throughout the Commonwealth. 22 (4) The commissioner, in accordance with KRS Chapter 13A and in consultation 23 with the commissioner of the Department for Public Health and the secretary of 24 the Cabinet for Health and Family Services, shall promulgate administrative 25 regulations necessary for the implementation of this section, including but not 26 limited to standards for tests for lead-contaminated soil, lead-based paint, and 27 UNOFFICIAL COPY 23 RS BR 1385 Page 3 of 6 XXXX 2/14/2023 3:31 PM Jacketed lead-contaminated dust; the certification of soil-testing laboratories; and 1 acceptable methods of soil harvesting, delivery, and testing. 2 Section 2. KRS 324.360 is amended to read as follows: 3 (1) This section shall apply to sales and purchases involving single-family residential 4 real estate dwellings if any person licensed under this chapter receives 5 compensation. 6 (2) The commission shall promulgate an administrative regulation authorizing a 7 "seller's disclosure of conditions form." 8 (3) The form shall provide for disclosure by the seller of the following: 9 (a) Basement condition and whether it leaks; 10 (b) Roof condition and whether it leaks; 11 (c) Source and condition of water supply; 12 (d) Source and condition of sewage service; 13 (e) Working condition of component systems; 14 (f) Results of tests for lead-based paint, lead-contaminated soil, and lead-15 contaminated dust as required under Section 1 of this Act; and 16 (g)[(f)] Other matters the commission deems appropriate. 17 (4) The seller of the property shall complete and sign the form at the time he or she 18 executes any listing agreement or similar agreement by which a licensee intends to 19 market the property. A copy of the form shall be provided by the listing agent to 20 any prospective buyer or a buyer's authorized representative upon request. A copy 21 of the form shall be delivered by the listing agent to any prospective purchaser or 22 his representative within seventy-two (72) hours of the listing agent's receipt of a 23 written and signed offer to purchase. The listing agent shall solicit the signature of 24 the buyer on a copy of the form which the listing agent shall retain in the principal 25 broker's records. The signature shall evidence the listing agent's compliance with 26 the provisions of this section. Should the buyer refuse to sign the form, the licensee 27 UNOFFICIAL COPY 23 RS BR 1385 Page 4 of 6 XXXX 2/14/2023 3:31 PM Jacketed shall record the buyer's refusal to sign on the form and retain a copy in his principal 1 broker's records. 2 (5) If the subject property is offered for sale by the property's owner without a listing 3 agreement, any licensee involved in the transaction shall provide a blank form to 4 the property's owner and shall request that the property's owner complete and sign 5 the form. If the property's owner completes and signs the form, the licensee shall 6 deliver the form to the buyer or potential buyer not later than one hundred twenty 7 (120) hours after the creation of any executory contract for sale of the property. The 8 licensee shall solicit the signature of the buyer on a copy of the form as delivered to 9 the buyer or prospective buyer and shall retain the copy in his or her principal 10 broker's records. The signature of the buyer or prospective buyer shall evidence the 11 listing agent's compliance with the provisions of this section. Should the buyer 12 refuse to sign the form, the licensee shall record the buyer's refusal to sign on the 13 form and retain a copy in his or her principal broker's records. 14 (6) The original of the form shall be retained by the listing broker or by the broker of 15 any licensee who presents an offer on a property not subject to a listing agreement. 16 (7) The form shall not be required for residential purchases of new homes if a warranty 17 is offered, for a sale of real estate at an auction, or for a court supervised 18 foreclosure. 19 (8) If the seller refuses to complete and sign the form, his refusal shall be 20 communicated in writing by the broker or sales associate who is involved in the 21 transaction to the purchaser or prospective purchaser, without unreasonable delay. 22 (9) It shall be a violation of this chapter for a licensee to complete any portion of the 23 form unless the licensee is the owner of the property or has been requested by the 24 owner to complete the form. The request shall be acknowledged in writing on the 25 form and the licensee shall be held harmless for any representation that appears on 26 the form. 27 UNOFFICIAL COPY 23 RS BR 1385 Page 5 of 6 XXXX 2/14/2023 3:31 PM Jacketed (10) Nothing in this section shall be construed to restrict any municipality or city, 1 county, urban-county, charter county, consolidated local, or unified local 2 government from imposing stricter guidelines regarding testing for lead-based 3 paint, lead-contaminated soil, and lead-contaminated dust. 4 SECTION 3. A NEW SECTION OF KRS CHAPTER 211 IS CREATED TO 5 READ AS FOLLOWS: 6 (1) There is created the lead mitigation and control fund as a separate trust and 7 agency fund in the State Treasury to be administered by the Cabinet for Health 8 and Family Services. All fees, fines, and other moneys received by the cabinet 9 pursuant to KRS 211.9061 to 211.9079 shall be deposited in the fund and shall be 10 used and are hereby appropriated for: 11 (a) The implementation of KRS 211.9061 to 211.9079; and 12 (b) Disbursement to homeowners and landlords whose properties have lead 13 levels that exceed a safe level as determined by the Environmental 14 Protection Agency or other appropriate federal agency. 15 (2) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of 16 the fiscal year shall not lapse but shall be carried forward to the next fiscal year. 17 (3) Any interest earnings of the fund shall become part of the fund and shall not 18 lapse. 19 SECTION 4. A NEW SECTION OF KRS CHAPTER 383 IS CREATED TO 20 READ AS FOLLOWS: 21 A landlord shall conduct tests for lead-contaminated soil, lead-based paint, and lead-22 contaminated dust as defined in Section 1 of this Act on both the interior and exterior 23 of all rental property built before 1978 that the landlord owns. The results of the tests 24 shall be provided to all tenants prior to entering into a lease agreement. These tests 25 shall be completed once every five (5) years at the expense of the landlord after the 26 initial tests are conducted. 27 UNOFFICIAL COPY 23 RS BR 1385 Page 6 of 6 XXXX 2/14/2023 3:31 PM Jacketed Section 5. This Act takes effect January 1, 2024. 1