LCO No. 4792 1 of 9 General Assembly Raised Bill No. 1092 January Session, 2023 LCO No. 4792 Referred to Committee on COMMERCE Introduced by: (CE) AN ACT CONCERNING THE ACQUISITION AND CONVEYANCE OF CERTAIN PROPERTIES BY CONNECTICUT BROWNFIELD LAND BANKS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 32-760 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2023): 2 As used in this chapter: 3 (1) "Bona fide prospective purchaser" means a person who acquires 4 ownership of a property after July 1, 2011, and establishes by a 5 preponderance of the evidence that: 6 (A) All disposal of regulated substances at the property occurred 7 before such person acquired the property; 8 (B) Such person made all appropriate inquiries, as set forth in 40 CFR 9 Part 312, into the previous ownership and uses of the property in 10 accordance with generally accepted good commercial and customary 11 standards and practices, including, but not limited to, the standards and 12 practices set forth in the ASTM Standard Practice for Environmental Site 13 Assessments, Phase I Environmental Site Assessment Process, in effect 14 Raised Bill No. 1092 LCO No. 4792 2 of 9 on the date such person acquired the property. In the case of property 15 in residential or other similar use at the time of purchase by a 16 nongovernmental or noncommercial entity, a property inspection and a 17 title search that reveal no basis for further investigation shall be 18 considered to satisfy the requirements of this subparagraph; 19 (C) Such person provides all legally required notices with respect to 20 the discovery or release of any regulated substances at the property; 21 (D) Such person exercises appropriate care with respect to regulated 22 substances found at the property by taking reasonable steps to (i) stop 23 any continuing release, (ii) prevent any threatened future release, and 24 (iii) prevent or limit human, environmental or natural resource 25 exposure to any previously released regulated substance; 26 (E) Such person provides full cooperation, assistance and access to 27 persons authorized to conduct response actions or natural resource 28 restoration at the property, including, but not limited to, the cooperation 29 and access necessary for the installation, integrity, operation and 30 maintenance of any complete or partial response actions or natural 31 resource restoration at the property; 32 (F) Such person complies with any land use restrictions established 33 or relied on in connection with the response action at the property and 34 does not impede the effectiveness or integrity of any institutional 35 control employed at the property in connection with a response action; 36 and 37 (G) Such person complies with any request for information from the 38 Commissioner of Energy and Environmental Protection; 39 (2) "Brownfield" means any abandoned or underutilized site where 40 redevelopment, reuse or expansion has not occurred due to the presence 41 or potential presence of pollution in the buildings, soil or groundwater 42 that requires investigation or remediation before or in conjunction with 43 the redevelopment, reuse or expansion of the property; 44 Raised Bill No. 1092 LCO No. 4792 3 of 9 (3) "Commissioner" means the Commissioner of Economic and 45 Community Development; 46 (4) "Contiguous property owner" means a person who owns real 47 property contiguous to or otherwise similarly situated with respect to, 48 and that is or may be contaminated by a release or threatened release of 49 a regulated substance from, real property that is not owned by that 50 person, provided: 51 (A) With respect to the property owned by such person, such person 52 takes reasonable steps to (i) stop any continuing release of any regulated 53 substance released on or from the property, (ii) prevent any threatened 54 future release of any regulated substance released on or from the 55 property, and (iii) prevent or limit human, environmental or natural 56 resource exposure to any regulated substance released on or from the 57 property; 58 (B) Such person provides full cooperation, assistance and access to 59 persons authorized to conduct response actions or natural resource 60 restoration at the property from which there has been a release or 61 threatened release, including, but not limited to, the cooperation and 62 access necessary for the installation, integrity, operation and 63 maintenance of any complete or partial response action or natural 64 resource restoration at the property; 65 (C) Such person complies with any land use restrictions established 66 or relied on in connection with the response action at the property and 67 does not impede the effectiveness or integrity of any institutional 68 control employed in connection with a response action; 69 (D) Such person complies with any request for information from the 70 Commissioner of Energy and Environmental Protection; and 71 (E) Such person provides all legally required notices with respect to 72 the discovery or release of any hazardous substances at the property; 73 (5) "Department" means the Department of Economic and 74 Raised Bill No. 1092 LCO No. 4792 4 of 9 Community Development; 75 (6) "Economic development agency" means (A) a municipal economic 76 development agency or entity created or operating under chapter 130 or 77 132; (B) a nonprofit economic development corporation formed to 78 promote the common good, general welfare and economic development 79 of a municipality or a region that is funded, either directly or through 80 in-kind services, in part by one or more municipalities; (C) a nonstock 81 corporation or limited liability company established or controlled by a 82 municipality, municipal economic development agency or an entity 83 created or operating under chapter 130 or 132; or (D) an agency, as 84 defined in section 32-327; 85 (7) "Eligible costs" means the costs associated with the investigation, 86 assessment, remediation and development of a brownfield, including, 87 but not limited to, (A) soil, groundwater and infrastructure 88 investigation, (B) assessment, (C) remediation, (D) abatement, (E) 89 hazardous materials or waste disposal, (F) long-term groundwater or 90 natural attenuation monitoring, (G) (i) environmental land use 91 restrictions, (ii) activity and use limitations, or (iii) other forms of 92 institutional control, (H) attorneys' fees, (I) planning, engineering and 93 environmental consulting, and (J) building and structural issues, 94 including demolition, asbestos abatement, polychlorinated biphenyls 95 removal, contaminated wood or paint removal, and other infrastructure 96 remedial activities; 97 (8) "Financial assistance" means grants, loans or loan guarantees, or 98 any combination thereof; 99 (9) "Innocent landowner" has the same meaning as provided in 100 section 22a-452d; 101 (10) "Interim verification" has the same meaning as provided in 102 section 22a-134; 103 (11) "Manufacturing facility" means a business establishment 104 classified under sector 31, 32 or 33 of the North American Industrial 105 Raised Bill No. 1092 LCO No. 4792 5 of 9 Classification System; 106 (12) "Municipality" means a town, city, consolidated town and city or 107 consolidated town and borough. For purposes of sections 32-771 to 32-108 775, inclusive, as amended by this act, "municipality" includes a district, 109 as defined in section 7-324, a metropolitan area, as defined in section 7-110 333, and any political subdivision of the state that has the power to levy 111 taxes and to issue bonds, notes or other obligations; 112 (13) "PCB regulations" means the polychlorinated biphenyls 113 manufacturing, processing, distribution in commerce and use 114 prohibitions found at 40 CFR Part 761; 115 (14) "Person" means any individual, firm, partnership, association, 116 syndicate, company, trust, corporation, nonstock corporation, limited 117 liability company, municipality, economic development agency, agency 118 or political or administrative subdivision of the state or any other legal 119 entity; 120 (15) "Planning region" has the same meaning as provided in section 121 4-124i; 122 [(15)] (16) "Real property" means land, buildings and other structures 123 and improvements thereto, subterranean or subsurface rights, any and 124 all easements, air rights and franchises of any kind or nature; 125 (17) "Regional council of governments" has the same meaning as 126 provided in section 4-124s; 127 [(16)] (18) "Regulated substance" has the same meaning as provided 128 in section 22a-134g; 129 [(17)] (19) "Release" means any discharge, spillage, uncontrolled loss, 130 seepage, filtration, leakage, injection, escape, dumping, pumping, 131 pouring, emitting, emptying or disposal of a substance; 132 [(18)] (20) "Remediation standards" has the same meaning as 133 provided in section 22a-134; 134 Raised Bill No. 1092 LCO No. 4792 6 of 9 [(19)] (21) "State" means the state of Connecticut; 135 [(20)] (22) "UST regulations" means the regulations adopted pursuant 136 to subsection (d) of section 22a-449; 137 [(21)] (23) "Verification" has the same meaning as provided in section 138 22a-134; and 139 [(22)] (24) "Connecticut brownfield land bank" means a Connecticut 140 nonstock corporation, certified by the Commissioner of Economic and 141 Community Development pursuant to section 32-771, established for 142 the purposes of (A) acquiring, retaining, remediating and selling 143 brownfields in the state for the benefit of municipalities, (B) educating 144 government officials, community leaders, economic development 145 agencies and nonprofit organizations on best practices for redeveloping 146 brownfields, and (C) engaging in all other activities in accordance with 147 sections 32-771 to 32-775, inclusive, as amended by this act. 148 Sec. 2. Section 32-773 of the general statutes is repealed and the 149 following is substituted in lieu thereof (Effective July 1, 2023): 150 (a) The purposes of a Connecticut brownfield land bank shall be to 151 (1) acquire, retain, remediate and sell brownfields in the state on behalf 152 of municipalities pursuant to land banking agreements with such 153 municipalities, (2) acquire, retain, remediate and sell brownfields in the 154 state for the purpose of enhancing the aquatic life and environmental 155 quality of one or more rivers of the state, pursuant to land banking 156 agreements with regional councils of governments that represent the 157 municipalities in which such brownfields are located, (3) educate 158 government officials, community leaders, economic development 159 agencies and nonprofit organizations on best practices for redeveloping 160 brownfields, and [(3)] (4) engage in all other activities in accordance 161 with sections 32-771 to 32-775, inclusive, as amended by this act. In 162 addition to those powers, rights, privileges and immunities granted 163 under chapter 602, a Connecticut brownfield land bank is authorized 164 and empowered to do the following in furtherance of its purposes: 165 Raised Bill No. 1092 LCO No. 4792 7 of 9 (A) Enter into land banking agreements with (i) municipalities for the 166 acquisition, retention, remediation and sale of real property within such 167 municipalities on behalf of such municipalities, or (ii) regional councils 168 of governments for the acquisition, retention, remediation and sale of 169 real property located within the planning regions of such regional 170 councils of governments. 171 (B) Enter into contracts and agreements with municipalities or 172 regional councils of governments for staffing services to be provided to 173 the Connecticut brownfield land bank by such municipalities, regional 174 councils of governments or agencies or departments thereof, or for a 175 Connecticut brownfield land bank to provide such staffing services to 176 such municipalities, regional councils of governments or agencies or 177 departments thereof in relation to the duties of such land bank. 178 (C) Obtain grant funds or borrow from private lenders, 179 municipalities, regional councils of governments, the state or the federal 180 government, as may be necessary, for the operation of such Connecticut 181 brownfield land bank. 182 (D) Procure insurance or guarantees from the state or federal 183 government of the payments of any debts, or parts thereof, incurred by 184 such Connecticut brownfield land bank, and to pay premiums in 185 connection therewith. 186 (E) Do all other things necessary or convenient to achieve the 187 purposes of such Connecticut brownfield land bank and comply with 188 any law relating to the purposes and responsibilities of such land bank. 189 (F) Acquire real property, as described in subsection (b) of section 32-190 775, as amended by this act, by purchase contracts, lease purchase 191 agreements, installment sales contracts, land contracts and foreclosure 192 of municipal tax liens. A Connecticut brownfield land bank may accept 193 transfers of real property from municipalities upon such terms and 194 conditions as agreed to by the brownfield land bank and the 195 municipality. Notwithstanding any provision of the general statutes or 196 of any special act, municipal charter or home rule ordinance, any 197 Raised Bill No. 1092 LCO No. 4792 8 of 9 municipality may transfer and convey to a Connecticut brownfield land 198 bank real property and interests in real property located in the 199 municipality on such terms and conditions and according to such 200 procedures as determined by the municipality. 201 (b) A Connecticut brownfield land bank shall neither possess nor 202 exercise the power of eminent domain. 203 Sec. 3. Section 32-775 of the general statutes is repealed and the 204 following is substituted in lieu thereof (Effective July 1, 2023): 205 (a) A Connecticut brownfield land bank shall hold in its own name 206 all real property acquired by such land bank irrespective of the identity 207 of the transferor of such property. 208 (b) A Connecticut brownfield land bank shall acquire only 209 brownfield sites and other real property, located adjacent or in close 210 proximity to brownfield sites to be acquired, that are (1) identified in a 211 land banking agreement between such Connecticut brownfield land 212 bank and the municipality in which such properties are located, or (2) 213 identified in a land banking agreement between such Connecticut 214 brownfield land bank and the regional council of governments that 215 represents the municipality in which such properties are located and 216 that are determined to enhance the aquatic life and environmental 217 quality of one or more rivers in the state by such regional council of 218 governments. 219 (c) A Connecticut brownfield land bank shall maintain and make 220 available for public review and inspection an inventory of all real 221 property held by such land bank. 222 (d) A Connecticut brownfield land bank shall determine and set forth 223 in policies and procedures the general terms and conditions for 224 consideration to be received by such land bank for the transfer to such 225 land bank of real property and interests in real property, which 226 consideration may take the form of monetary payments and secured 227 financial obligations, covenants and conditions related to the present 228 Raised Bill No. 1092 LCO No. 4792 9 of 9 and future use of such real property, contractual commitments of the 229 transferee, and such other forms of consideration as determined by the 230 board of directors to be in the best interest of such land bank. 231 (e) A Connecticut brownfield land bank may convey, exchange, sell, 232 transfer, lease as lessee, grant, release and demise, pledge and 233 hypothecate any and all interests in, upon or to real property of the 234 brownfield land bank, provided such land bank may only convey, 235 exchange, transfer or sell real property with the approval of (1) the 236 municipality in which such real property is located pursuant to the 237 terms of a land banking agreement entered into with such municipality, 238 or (2) the regional council of governments that represents the 239 municipality in which such real property is located, pursuant to the 240 terms of a land banking agreement entered into with such regional 241 council of governments. 242 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2023 32-760 Sec. 2 July 1, 2023 32-773 Sec. 3 July 1, 2023 32-775 Statement of Purpose: To: (1) Authorize Connecticut brownfield land banks to acquire and convey certain properties to enhance the aquatic life and environmental quality of rivers; and (2) authorize Connecticut brownfield land banks to enter into land banking agreements with regional councils of governments. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]