LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092-R01- SB.docx 1 of 9 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 Section 32-760 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective July 1, 2023): 2 As used in this chapter: 3 (1) "Bona fide prospective purchaser" means a person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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 2 of 9 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 3 of 9 (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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 4 of 9 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 5 of 9 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 6 of 9 [(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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 7 of 9 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 8 of 9 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 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01092- R01-SB.docx } 9 of 9 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.