Connecticut 2023 2023 Regular Session

Connecticut Senate Bill SB01092 Introduced / Bill

Filed 02/22/2023

                       
 
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 Section 32-760 of the general statutes is repealed and the 1 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 
 
 
 
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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 
 
 
 
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(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 
 
 
 
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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 
 
 
 
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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 
 
 
 
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[(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 
 
 
 
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(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 
 
 
 
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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 
 
 
 
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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.]