Connecticut 2023 2023 Regular Session

Connecticut Senate Bill SB01092 Comm Sub / Bill

Filed 03/29/2023

                     
 
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General Assembly  Substitute Bill No. 1092  
January Session, 2023 
 
 
 
 
 
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 Section 32-760 of the general statutes is repealed and the 1 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 9 
CFR 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 12 
and practices set forth in the ASTM Standard P ractice for 13 
Environmental Site Assessments, Phase I Environmental Site 14 
Assessment Process, in effect on the date such person acquired the 15 
property. In the case of property in residential or other similar use at 16  Substitute Bill No. 1092 
 
 
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the time of purchase by a nongovernmental or noncommercial entity, a 17 
property inspection and a title search that reveal no basis for further 18 
investigation shall be considered to satisfy the requirements of this 19 
subparagraph; 20 
(C) Such person provides all legally required notices with respect to 21 
the discovery or release of any regulated substances at the property; 22 
(D) Such person exercises appropriate care with respect to regulated 23 
substances found at the property by taking reasonable steps to (i) stop 24 
any continuing release, (ii) prevent any threatened future release, and 25 
(iii) prevent or limit human, environmental or natural resource 26 
exposure to any previously released regulated substance; 27 
(E) Such person provides full cooperation, assistance and access to 28 
persons authorized to conduct response actions or natural resource 29 
restoration at the property, including, but not limited to, the 30 
cooperation and access necessary for the installation, integrity, 31 
operation and maintenance of any complete or partial response actions 32 
or natural resource restoration at the property; 33 
(F) Such person complies with any land use restrictions established 34 
or relied on in connection with the response action at the property and 35 
does not impede the effectiveness or integrity of any institutional 36 
control employed at the property in connection with a response action; 37 
and 38 
(G) Such person complies with any request for information from the 39 
Commissioner of Energy and Environmental Protection; 40 
(2) "Brownfield" means any abandoned or underutilized site where 41 
redevelopment, reuse or expansion has not occurred due to the 42 
presence or potential presence of pollution in the buildings, soil or 43 
groundwater that requires investigation or remediation before or in 44 
conjunction with the redevelopment, reuse or expansion of the 45 
property; 46  Substitute Bill No. 1092 
 
 
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(3) "Commissioner" means the Commissioner of Economic and 47 
Community Development; 48 
(4) "Contiguous property owner" means a person who owns real 49 
property contiguous to or otherwise similarly situated with respect to, 50 
and that is or may be contaminated by a release or threatened release 51 
of a regulated substance from, real property that is not owned by that 52 
person, provided: 53 
(A) With respect to the property owned by such person, such person 54 
takes reasonable steps to (i) stop any continuing release of any 55 
regulated substance released on or from the property, (ii) prevent any 56 
threatened future release of any regulated substance released on or 57 
from the property, and (iii) prevent or limit human, environmental or 58 
natural resource exposure to any regulated substance released on or 59 
from the property; 60 
(B) Such person provides full cooperation, assistance and access to 61 
persons authorized to conduct response actions or natural resource 62 
restoration at the property from which there has been a release or 63 
threatened release, including, but not limited to, the cooperation and 64 
access necessary for the installation, integrity, operation and 65 
maintenance of any complete or partial response action or natural 66 
resource restoration at the property; 67 
(C) Such person complies with any land use restrictions established 68 
or relied on in connection with the response action at the property and 69 
does not impede the effectiveness or integrity of any institutional 70 
control employed in connection with a response action; 71 
(D) Such person complies with any request for information from the 72 
Commissioner of Energy and Environmental Protection; and 73 
(E) Such person provides all legally required notices with respect to 74 
the discovery or release of any hazardous substances at the property; 75 
(5) "Department" means the Department of Economic and 76  Substitute Bill No. 1092 
 
 
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Community Development; 77 
(6) "Economic development agency" means (A) a municipal 78 
economic development agency or entity created or operating under 79 
chapter 130 or 132; (B) a nonprofit economic development corporation 80 
formed to promote the common good, general welfare and economic 81 
development of a municipality or a region that is funded, either 82 
directly or through in-kind services, in part by one or more 83 
municipalities; (C) a nonstock corporation or limited liability company 84 
established or controlled by a municipality, municipal economic 85 
development agency or an entity created or operating under chapter 86 
130 or 132; or (D) an agency, as defined in section 32-327; 87 
(7) "Eligible costs" means the costs associated with the investigation, 88 
assessment, remediation and development of a brownfield, including, 89 
but not limited to, (A) soil, groundwater and infrastructure 90 
investigation, (B) assessment, (C) remediation, (D) abatement, (E) 91 
hazardous materials or waste disposal, (F) long-term groundwater or 92 
natural attenuation monitoring, (G) (i) environmental land use 93 
restrictions, (ii) activity and use limitations, or (iii) other forms of 94 
institutional control, (H) attorneys' fees, (I) planning, engineering and 95 
environmental consulting, and (J) building and structural issues, 96 
including demolition, asbestos abatement, polychlorinated biphenyls 97 
removal, contaminated wood or paint removal, and other 98 
infrastructure remedial activities; 99 
(8) "Financial assistance" means grants, loans or loan guarantees, or 100 
any combination thereof; 101 
(9) "Innocent landowner" has the same meaning as provided in 102 
section 22a-452d; 103 
(10) "Interim verification" has the same meaning as provided in 104 
section 22a-134; 105 
(11) "Manufacturing facility" means a business establishment 106 
classified under sector 31, 32 or 33 of the North American Industrial 107  Substitute Bill No. 1092 
 
 
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Classification System; 108 
(12) "Municipality" means a town, city, consolidated town and city 109 
or consolidated town and borough. For purposes of sections 32-771 to 110 
32-775, inclusive, as amended by this act, "municipality" includes a 111 
district, as defined in section 7-324, a metropolitan area, as defined in 112 
section 7-333, and any political subdivision of the state that has the 113 
power to levy taxes and to issue bonds, notes or other obligations; 114 
(13) "PCB regulations" means the polychlorinated biphenyls 115 
manufacturing, processing, distribution in commerce and use 116 
prohibitions found at 40 CFR Part 761; 117 
(14) "Person" means any individual, firm, partnership, association, 118 
syndicate, company, trust, corporation, nonstock corporation, limited 119 
liability company, municipality, economic development agency, 120 
agency or political or administrative subdivision of the state or any 121 
other legal entity; 122 
(15) "Planning region" has the same meaning as provided in section 123 
4-124i; 124 
[(15)] (16) "Real property" means land, buildings and other 125 
structures and improvements thereto, subterranean or subsurface 126 
rights, any and all easements, air rights and franchises of any kind or 127 
nature; 128 
(17) "Regional council of governments" has the same meaning as 129 
provided in section 4-124s; 130 
[(16)] (18) "Regulated substance" has the same meaning as provided 131 
in section 22a-134g; 132 
[(17)] (19) "Release" means any discharge, spillage, uncontrolled 133 
loss, seepage, filtration, leakage, injection, escape, dumping, pumping, 134 
pouring, emitting, emptying or disposal of a substance; 135  Substitute Bill No. 1092 
 
 
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[(18)] (20) "Remediation standards" has the same meaning as 136 
provided in section 22a-134; 137 
[(19)] (21) "State" means the state of Connecticut; 138 
[(20)] (22) "UST regulations" means the regulations adopted 139 
pursuant to subsection (d) of section 22a-449; 140 
[(21)] (23) "Verification" has the same meaning as provided in 141 
section 22a-134; and 142 
[(22)] (24) "Connecticut brownfield land bank" means a Connecticut 143 
nonstock corporation, certified by the Commissioner of Economic and 144 
Community Development pursuant to section 32-771, established for 145 
the purposes of (A) acquiring, retaining, remediating and selling 146 
brownfields in the state for the benefit of municipalities, (B) educating 147 
government officials, community leaders, economic development 148 
agencies and nonprofit organizations on best practices for 149 
redeveloping brownfields, and (C) engaging in all other activities in 150 
accordance with sections 32-771 to 32-775, inclusive, as amended by 151 
this act. 152 
Sec. 2. Section 32-773 of the general statutes is repealed and the 153 
following is substituted in lieu thereof (Effective July 1, 2023): 154 
(a) The purposes of a Connecticut brownfield land bank shall be to 155 
(1) acquire, retain, remediate and sell brownfields in the state on behalf 156 
of municipalities pursuant to land banking agreements with such 157 
municipalities, (2) acquire, retain, remediate and sell brownfields in 158 
the state for the purpose of enhancing the aquatic life and 159 
environmental quality of one or more rivers of the state, pursuant to 160 
land banking agreements with regional councils of governments that 161 
represent the municipalities in which such brownfields are located, (3) 162 
educate government officials, community leaders, economic 163 
development agencies and nonprofit organizations on best practices 164 
for redeveloping brownfields, and [(3)] (4) engage in all other activities 165 
in accordance with sections 32-771 to 32-775, inclusive, as amended by 166  Substitute Bill No. 1092 
 
 
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this act. In addition to those powers, rights, privileges and immunities 167 
granted under chapter 602, a Connecticut brownfield land bank is 168 
authorized and empowered to do the following in furtherance of its 169 
purposes: 170 
(A) Enter into land banking agreements with (i) municipalities for 171 
the acquisition, retention, remediation and sale of real property within 172 
such municipalities on behalf of such municipalities, or (ii) regional 173 
councils of governments for the acquisition, retention, remediation and 174 
sale of real property located within the planning regions of such 175 
regional councils of governments. 176 
(B) Enter into contracts and agreements with municipalities or 177 
regional councils of governments for staffing services to be provided to 178 
the Connecticut brownfield land bank by such municipalities, regional 179 
councils of governments or agencies or departments thereof, or for a 180 
Connecticut brownfield land bank to provide such staffing services to 181 
such municipalities, regional councils of governments or agencies or 182 
departments thereof in relation to the duties of such land bank. 183 
(C) Obtain grant funds or borrow from private lenders, 184 
municipalities, regional councils of governments, the state or the 185 
federal government, as may be necessary, for the operation of such 186 
Connecticut brownfield land bank. 187 
(D) Procure insurance or guarantees from the state or federal 188 
government of the payments of any debts, or parts thereof, incurred by 189 
such Connecticut brownfield land bank, and to pay premiums in 190 
connection therewith. 191 
(E) Do all other things necessary or convenient to achieve the 192 
purposes of such Connecticut brownfield land bank and comply with 193 
any law relating to the purposes and responsibilities of such land 194 
bank. 195 
(F) Acquire real property, as described in subsection (b) of section 196 
32-775, as amended by this act, by purchase contracts, lease purchase 197  Substitute Bill No. 1092 
 
 
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agreements, installment sales contracts, land contracts and foreclosure 198 
of municipal tax liens. A Connecticut brownfield land bank may accept 199 
transfers of real property from municipalities upon such terms and 200 
conditions as agreed to by the brownfield land bank and the 201 
municipality. Notwithstanding any provision of the general statutes or 202 
of any special act, municipal charter or home rule ordinance, any 203 
municipality may transfer and convey to a Connecticut brownfield 204 
land bank real property and interests in real property located in the 205 
municipality on such terms and conditions and according to such 206 
procedures as determined by the municipality. 207 
(b) A Connecticut brownfield land bank shall neither possess nor 208 
exercise the power of eminent domain. 209 
Sec. 3. Section 32-775 of the general statutes is repealed and the 210 
following is substituted in lieu thereof (Effective July 1, 2023): 211 
(a) A Connecticut brownfield land bank shall hold in its own name 212 
all real property acquired by such land bank irrespective of the 213 
identity of the transferor of such property. 214 
(b) A Connecticut brownfield land bank shall acquire only 215 
brownfield sites and other real property, located adjacent or in close 216 
proximity to brownfield sites to be acquired, that are (1) identified in a 217 
land banking agreement between such Connecticut brownfield land 218 
bank and the municipality in which such properties are located, or (2) 219 
identified in a land banking agreement between such Connecticut 220 
brownfield land bank and the regional council of governments that 221 
represents the municipality in which such properties are located. 222 
(c) A Connecticut brownfield land bank shall maintain and make 223 
available for public review and inspection an inventory of all real 224 
property held by such land bank. 225 
(d) A Connecticut brownfield land bank shall determine and set 226 
forth in policies and procedures the general terms and conditions for 227 
consideration to be received by such land bank for the transfer to such 228  Substitute Bill No. 1092 
 
 
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land bank of real property and interests in real property, which 229 
consideration may take the form of monetary payments and secured 230 
financial obligations, covenants and conditions related to the present 231 
and future use of such real property, contractual commitments of the 232 
transferee, and such other forms of consideration as determined by the 233 
board of directors to be in the best interest of such land bank. 234 
(e) A Connecticut brownfield land bank may convey, exchange, sell, 235 
transfer, lease as lessee, grant, release and demise, pledge and 236 
hypothecate any and all interests in, upon or to real property of the 237 
brownfield land bank, provided such land bank may only convey, 238 
exchange, transfer or sell real property with the approval of (1) the 239 
municipality in which such real property is located pursuant to the 240 
terms of a land banking ag reement entered into with such 241 
municipality, or (2) the regional council of governments that 242 
represents the municipality in which such real property is located, 243 
pursuant to the terms of a land banking agreement entered into with 244 
such regional council of governments. 245 
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 
 
CE Joint Favorable Subst.