California:
California's Gov. Gray Davis has signed two bills directing that the state health department study the effects of mold on public health and implement guidelines and regulations based on its findings. Once the California State Department of Health Services adopts standards for acceptable mold levels, anyone who sells, transfers, or rents property will be liable to inform prospective buyers and renters of the presence of mold levels that exceed those standards.

The primary bill, SB 732, directs the DHS to convene a task force to advise the department on the development of permissible exposure limits to mold, standards for the assessment of mold in indoor environments, and standards for the identification and remediation of mold. If the task force deems it feasible to adopt permissible exposure limits to mold, commercial and industrial landlords will be required to disclose the presence of excessive mold to potential and current tenants, although landlords will be under no obligation to conduct tests to determine if mold is present. If the available scientific information on mold is not sufficient to support regulations, the task force will develop non-binding recommendations for appropriate levels of mold.

The other bill, AB 284, requires that the California Research Bureau assemble a task force of its own to perform a study and publish findings on fungal contamination affecting indoor environments. The review panel will examine the health effects of fungi exposure, practices for assessing fungal contamination, the appropriateness of commercially available methods for identifying fungal contamination, and options for preventing and remediating fungal contamination in indoor environments. The panel, whose research is partially meant to support the work of the task force mandated by SB 732, will be required to submit its findings to the legislature and the director of health services by Jan. 1, 2003, while the DHS task force must present its findings to the legislature by July 1, 2003.

Illinois:
Has allocated funds for mold remediation.

Maryland:
Has pledged to study the matter of toxic mold.

Nevada:
Has allocated funds for mold remediation.

New Jersey:
Has pledged to study the matter of toxic mold.

Texas:
Late last month, Texas Insurance Commissioner Jose Montemayor issued an order concerning the coverage of mold-related claims in homeowners' insurance policies. The popular HO-B policy will continue to provide coverage for the removal of mold caused by water damage. However, homeowners will have to purchase additional coverage for procedures that go beyond repairing or replacing property that is damaged by water. Those procedures include testing, treating, containing or disposing of mold. Insurance companies must offer the additional coverage. Insurance companies can begin offering the new coverage on Jan. 1, 2002, and must do so by Jan. 1, 2003. Stacking of claims within the same policy year is also prohibited under the order.