Assembly Bill No. 675–Committee on Commerce and Labor

March 22, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to hazardous materials. (BDR 40-808)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to hazardous materials; providing certain persons with immunity from liability for certain contaminated property; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 459 of NRS is hereby amended by adding thereto

1-2 a new section to read as follows:

1-3 1. A person who has a security interest in property which is

1-4 contaminated with a hazardous waste or hazardous substance is immune

1-5 from liability and free from any obligations imposed by this chapter and

1-6 any regulations adopted pursuant thereto, for any contamination that

1-7 existed on the date the security interest was obtained if he did not know

1-8 that the property was contaminated at the time that he obtained the

1-9 security interest and if he has not caused or contributed to the

1-10 contamination or hazardous condition.

1-11 2. A person who is immune from liability pursuant to subsection 1,

1-12 may foreclose upon and sell the contaminated property without incurring

1-13 liability or any obligations imposed by this chapter and any regulation

1-14 adopted pursuant thereto, if the person gives the department written

1-15 notice of his intention to foreclose upon and sell the property at least 20

1-16 days before the foreclosure and if the person has not caused or

1-17 contributed to the contamination.

1-18 3. A person:

1-19 (a) Who purchases contaminated property at a foreclosure sale from a

1-20 person who is immune from liability pursuant to subsection 2; or

2-1 (b) Who obtains title to contaminated property from a person who is

2-2 immune from liability and whose chain of title contains a purchase

2-3 described in paragraph (a),

2-4 is immune from liability and free from any obligations imposed by this

2-5 chapter and any regulation adopted pursuant thereto, if the person has

2-6 not caused or contributed to the contamination.

2-7 4. This section must not be construed to grant immunity from

2-8 liability and obligations to a person who causes or contributes to the

2-9 contamination upon or in the property.

2-10 5. As used in this section:

2-11 (a) The phrase "cause or contribute to contamination" includes,

2-12 without limitation, knowingly and intentionally interfering with or

2-13 preventing a person from cleaning or decontaminating the property. The

2-14 phrase does not include, without limitation:

2-15 (1) Holding, enforcing, abandoning or releasing a security interest

2-16 in the property;

2-17 (2) Foreclosing upon the property;

2-18 (3) Cleaning or decontaminating the property; or

2-19 (4) Selling or otherwise conveying title to the property.

2-20 (b) "Hazardous substance" has the meaning ascribed to it in NRS

2-21 459.429.

2-22 (c) "Hazardous waste" has the meaning ascribed to in NRS 459.430.

2-23 (d) "Security interest" means an interest in real estate or personal

2-24 property, created by contract or conveyance, that secures payment or

2-25 performance of an obligation. The term includes a lien created by a

2-26 mortgage, deed of trust, trust deed, security deed, contract for deed, land

2-27 sales contract, lease intended as security, assignment of lease or rents

2-28 intended as security and any other consensual lien or contract for

2-29 retention of title intended as security for an obligation.

2-30 Sec. 2. NRS 459.770 is hereby amended to read as follows:

2-31 459.770 Any county or city in this state may adopt an ordinance

2-32 authorizing its legal representative to initiate recovery by legal action from

2-33 the person responsible for any hazardous material involved in a spill or

2-34 accident of the amount of any costs incurred by the county or city in

2-35 responding to the spill of or accident involving hazardous material. A

2-36 county or city shall not adopt an ordinance pursuant to this section that

2-37 imposes liability upon a person who is immune from liability pursuant to

2-38 section 1 of this act.

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