SENATE . . . . . . . . . . . . . . No. 2559
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
SENATE, January 18, 2024.
The committee on Environment and Natural Resources to whom was referred the petition
(accompanied by bill, Senate, No. 495) of Anne M. Gobi, Ryan C. Fattman, Brian M. Ashe,
Angelo J. Puppolo, Jr. and other members of the General Court for legislation relative to
crumbling concrete foundations, reports the accompanying bill (Senate, No. 2559).
For the committee,
Rebecca L. Rausch 1 of 9
FILED ON: 1/12/2024
SENATE . . . . . . . . . . . . . . No. 2559
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act relative to crumbling concrete foundations.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 3B of chapter 7 of the General Laws is hereby amended by
2inserting after the words “twenty-one A” the following words:- , section sixteen of chapter
3twenty-one B.
4 SECTION 2. Section 97 of chapter 13 of the General Laws is hereby amended by
5inserting at the end thereof the following words:-
6 Said board shall require all licensed home inspectors who perform an inspection on a
7residential home for the purpose of a sale or lease of the home to provide the potential buyer or
8lessee information regarding the possible presence of pyrite or pyrrhotite in the concrete
9foundation, prepared by the crumbling concrete relief agency established by section 2 of chapter
1023B.
11 SECTION 3. Section 2 of chapter 21B of the General Laws is hereby amended by
12inserting the following words:- 2 of 9
13 “Aggregate”, granular materials such as gravel, sand and crushed rock that are combined
14for a particular purpose
15 “Certified geologist”, a professional geologist certified by the American Institute of
16Professional Geologists.
17 SECTION 4. Said chapter 21B is hereby further amended by adding the following new
18section:-
19 Section 16. (a) Any person seeking to mine, expand, excavate or otherwise operate a
20quarry for the purpose of producing aggregate concrete for sale or use in foundations, structural
21elements, or infrastructure such as roadways and bridges shall submit to the commissioner and
22the state geologist an application for a license to conduct such quarry activity. Each license
23application shall consist of: (i) a description of the geographic location of the quarry; (ii) a quarry
24operations plan, including without limitation mining, processing, storage, and quality control
25methods; (iii) a geological source report, consistent with the provisions of paragraph (b) of this
26section; and (iv) the results of aggregate testing for the presence of pyrite or pyrrhotite,
27consistent with the provisions of paragraph (c) of this section. Each license application shall be
28accompanied by a fee in an amount to be determined by the commissioner. Fees received by the
29department under this section shall be used to implement the provisions of this section, provided
30that any surplus fee receipts shall be deposited into the crumbling concrete assistance fund
31established in section 2RRRRR of chapter 29.
32 (b) The geological source report required by this section shall be prepared by a certified
33geologist in a form and manner prescribed by the commissioner, in consultation with the state
34geologist and a representative nominated by the Massachusetts Concrete and Aggregate 3 of 9
35Producers, and shall include, without limitation: (i) a description of the characteristics of the
36aggregate to be excavated at the subject quarry; (ii) a description of the products to be produced
37by such quarry; (iii) a copy of the results of an inspection of face material and geologic log
38analysis conducted within the preceding 60 days; and (iv) analyses of grab or core samples.
39 (c) Aggregate testing to identify the presence of pyrite or pyrrhotite required by this
40section shall include, without limitation, a total sulfur test to measure total sulfur content in a
41representative sample. Aggregate testing shall be performed by a certified geologist in
42accordance with applicable standards established by ASTM International or alternate standards
43to be determined by the commissioner in consultation with the state geologist.
44 (d) The commissioner or their designee shall review each license application submitted
45pursuant to this section and notify each applicant whether or not the license has been approved,
46as well as any conditions of operation, if applicable. If the license is denied, the notification shall
47include the reason or reasons for denial. A license granted under this section shall be valid for
48one year from the date of approval; provided, however, that a geological source report prepared
49in accordance with paragraph (b) of this section shall be acceptable for a period of four years
50from the date of preparation; and provided further, that aggregate test results demonstrating a
51total sulfur content of less than one-tenth percent-by-mass shall be acceptable for a period of four
52years from the date of testing. No license shall be approved under this section if the total sulfur
53content is equal to or greater one percent-by-mass. If the total sulfur content is equal to or greater
54than one-tenth percent-by-mass but less than one percent-by-mass, the license shall be denied
55unless the state geologist, in their sole discretion, recommends approval to the commissioner
56consistent with applicable ASTM International standards. The state geologist may require
57additional testing or information to justify an approval recommendation. 4 of 9
58 (e) A person owning or operating a quarry subject to licensure pursuant to this section
59shall maintain all records relevant to such licensure and quarry operation, including without
60limitation a record of the aggregate source in concrete batches, for a period of not less than 30
61years.
62 (f) A person owning or operating a quarry without a license as required by this section
63shall be: (i) liable in perpetuity for property damage resulting from or related to the use or sale of
64such aggregate product; and (ii) subject to a civil penalty in an amount to be determined by the
65commissioner, not to exceed $500,000 in each instance. Amounts collected under this paragraph
66shall be deposited into the crumbling concrete assistance fund established in section 2RRRRR of
67chapter 29.
68 (g) A contractor who uses aggregate concrete produced in violation of this section shall
69be liable in perpetuity for property damage resulting from or related to the use or sale of such
70aggregate product, unless the violation was intentionally concealed from the contractor.
71 (h) The commissioner, in consultation with the state geologist, shall catalogue and
72maintain the quarry data collected under this section.
73 (i) Nothing in this section shall prohibit a municipality of the Commonwealth from
74requiring permits for quarry operation or excavation. Municipalities may establish pyrite and
75pyrrhotite presence restrictions more stringent than those set forth in this section.
76 (j) Nothing in this section shall affect the operations of quarries producing aggregate for
77purposes other than those described in paragraph (a). 5 of 9
78 (k) The department in consultation with the state geologist shall promulgate regulations
79to implement the provisions of this section.
80 SECTION 5. Section 2 of chapter 23B of the General Laws is hereby amended by
81inserting at the end thereof the following new paragraph:-
82 (c) There shall also be within the department a crumbling concrete relief agency
83to provide assistance to owners of residential real property with concrete foundations that have
84deteriorated due to the presence of pyrite or pyrrhotite. The agency shall be overseen by
85an executive director who reports to the undersecretary. The executive director shall have the
86authority to hire staff sufficient to meet the requirements and obligations of the agency. The
87agency shall, without limitation: (a) provide information to the public regarding structurally
88sound concrete and the dangers of pyrite and pyrrhotite; (b) publish a list of quarries licensed
89pursuant to section 16 of chapter 21B and a searchable electronic database of all quarries
90applying for such licensure, including aggregate and other testing results; and (c) administer the
91crumbling concrete assistance fund established in section 2RRRRR of chapter 29, including
92establishing eligibility requirements and implementing a process for impacted homeowners to
93secure foundation repair and replacement funding from the fund. A decision on a request from an
94impacted homeowner for such financial assistance shall be provided in writing to the homeowner
95and shall include the information relied upon and the basis for such decision, including the
96relevant eligibility and underwriting criteria. An impacted homeowner may request a review of
97any decision by the agency relating to such homeowner not later than 30 days after the decision.
98A final determination on such a request for review shall be provided in writing to the homeowner
99not later than 30 days after receipt of the homeowner’s request, unless an extension is agreed to
100by the homeowner. 6 of 9
101 SECTION 6. Chapter 29 of the General Laws is hereby amended by inserting after
102section 2QQQQQ the following section:-
103 Section 2RRRRR. (a) There shall be a Crumbling Concrete Assistance Fund. The fund
104shall be expended to provide financial assistance to owners of residential real property for the
105repair or replacement of concrete foundations of such property that have deteriorated due to the
106presence of pyrite or pyrrhotite and to minimize any negative economic impacts on
107municipalities in which such property are located. The crumbling concrete relief agency
108established by section 2 of chapter 23B shall administer the fund and shall make expenditures
109from the fund, without further appropriation. The agency shall seek to maximize available federal
110reimbursements for money spent from the fund.
111 The fund shall consist of: (i) revenue from appropriations or other money authorized by
112the general court and specifically designated to be credited to the fund; (ii) interest earned on
113such revenues; (iii) funds from public and private sources, including but not limited to gifts,
114grants, donations, and settlements received by the commonwealth that are specifically designated
115to be credited to the fund; (iv) federal funds paid to the commonwealth under paragraph (b) of
116this section; (v) monies paid to the commonwealth under paragraph (c) of this section; (vi)
117monies paid to the commonwealth under paragraph (d) of this section; and (vi) monies paid to the
118commonwealth under paragraph (f) of section 16 of chapter 21B. Any bond proceeds deposited
119into the fund shall be kept separate from any and all other funds deposited into the fund. Any
120balance in the fund at the close of a fiscal year shall be available for expenditure in subsequent
121fiscal years and shall not be transferred to any other fund or revert to the General Fund. 7 of 9
122 (b) The crumbling concrete relief agency established by section 2 of chapter 23B may
123apply for, receive and deposit any federal funds, including but not limited to funds made
124available by the United States Department of Housing and Urban Development Section 108
125Loan Guarantee program, into the fund established by this section.
126 (c) Any entity licensed and engaged in the provision of homeowners insurance that has
127denied or rejected claims for repair or replacement of foundations due to the presence of pyrite or
128pyrrhotite at any time during the period beginning January 1, 2000, and continuing through
129December 31, 2023, inclusive, shall be required to pay to the department of revenue an amount
130equal to the total estimated or actual cost of repair or replacement, adjusted for inflation as
131applicable, in each instance of a denial. No later than November 30, 2024, the attorney general
132shall determine which insurers are subject to the provisions of this paragraph, including through
133collection and review of claims denial and related documentation from impacted homeowners,
134and shall provide a list of subject insurers to the department of revenue, the senate and house
135committees on ways and means, the joint committee on environment and natural resources, and
136the joint committee on state administration and regulatory oversight no later than December 31,
1372024. The department of revenue shall notify subject insurers of penalties owed in writing no
138later than March 30, 2025. Penalties owed under this paragraph shall be paid on or before June
13930, 2025. Penalties collected under this paragraph shall be deposited into the fund established by
140this section. An entity failing to pay a penalty a penalty owed under this paragraph shall have its
141license revoked and shall not be eligible for a new or renewed license for a period of five years.
142 (d) Annually not later than May 1, the commissioner of revenue shall assess any
143entity licensed and engaged in the provision of homeowners insurance in the commonwealth an
144amount not less than 3 per cent of the entity’s net profits from the provision of homeowners 8 of 9
145insurance in the commonwealth during the immediately preceding tax year. Penalties collected
146under this paragraph shall be deposited into the fund established by this section.
147 (e) Amounts issued from the fund to impacted homeowners for the repair or replacement
148of concrete foundations that have deteriorated due to the presence of pyrrhotite shall be exempt
149from taxation under chapter 62.
150 (f) Annually not later than June 1, the crumbling concrete relief agency shall report on the
151activities of the fund from the previous calendar year to the senate and house committees on ways
152and means and the joint committee on environment and natural resources.
153 (g) The crumbling concrete relief agency shall promulgate regulations or issue other
154guidance for the expenditure of the funds under this section.
155 SECTION 7. Chapter 59 of the General Laws is hereby amended by inserting after
156section 59A the following section:-
157 Section 59B. (a) Notwithstanding any general or special law to the contrary, an owner of
158real property in the commonwealth may apply for a residential property tax abatement due to the
159presence of pyrite or pyrrhotite minerals in the foundation. The presence of pyrite or pyrrhotite
160shall be established by: (i) not less than 2 core samples from the foundation proving the presence
161of pyrite or pyrrhotite; or (ii) a certified visual inspection conducted by a professional civil
162engineer. The owner shall also provide a certified estimate of the cost to repair or replace the
163foundation. Upon receipt of such documentation, a municipal board of assessors or equivalent
164entity shall determine a value per square foot of the foundation and percentage of functional
165obsolescence. If an abatement is sought on multiple properties within a municipality the board of
166assessors may determine a general value per square foot of foundation and percentage of 9 of 9
167functional obsolescence to be used for all properties within said municipality. The board of
168assessors shall use the value and percentage to calculate the reduction in assessment for each
169affected property. Such reductions shall be effective until the foundation is repaired or replaced.
170 SECTION 8. Chapter 143 of the General Laws is hereby amended by adding the
171following section:-
172 Section 110. Notwithstanding any general or special law to the contrary, fees for building
173permits for work associated with crumbling concrete foundations replacement shall be waived. In
174order to qualify for the waiver of fees, the applicant shall provide written documentation
175showing that pyrite or pyrrhotite minerals are present in the foundation to be replaced. Nothing
176in this section shall waive any of the permit application requirements, including, but not limited
177to, holding public hearings, associated with a permit application. A determination to waive fees is
178not a guarantee of the issuance of a permit.
179 SECTION 9. Within 2 months of passage of this act, active quarries subject to licensure
180under the provisions of section 4 of this act shall either submit a complete license application or
181obtain interim approval from the state geologist to continue operations for a period of not more
182than six months. Interim operations approvals shall not be renewed.