Senate Bill S6924

                                 BILL NUMBER:  S6924

 TITLE OF BILL :

An act to designate as brownfield sites, certain real property
previously owned by the state that has been transitioned to private
use or ownership

 PURPOSE :

This bill includes property previously owned by the state that is
being transitioned to private use for redevelopment or reuse and is
complicated by the presence of asbestos to be designated as a
brownfield site for the purposes of the brownfield cleanup program.

 SUMMARY OF PROVISIONS :

Section 1 includes property previously owned by the state that is
being transitioned to private use for redevelopment or reuse and is
complicated by the presence of asbestos to be designated as a
brownfield site for the purposes of the brownfield cleanup program.

Section 2 sets an immediate effective date.

 JUSTIFICATION :

              

Asbestos poses a significant public health risk in many older
buildings across our state, and has serious long-term health effects
including an increased risk of lung cancer, mesothelioma, as well as
asbestosis. Currently, there are comprehensive processes that govern
the abatement of toxic hazards associated with asbestos through the
Asbestos Control Bureau in the Department of Labor. Pursuant to the
Department of Labor's Asbestos regulations (Industrial Code Rule 56),
building owners are not required to inspect for or remove asbestos
containing materials, but inspection and abatement procedures are
triggered by demolitions or renovations. Often, the development costs
required for the removal of asbestos can be crippling to a
revitalization project, and can lead to the failure of the project,
threaten the abandonment of the property, and compromise the financial
integrity of the developer or business.

As a result, many developers have been unable to continue projects
intended to transition these properties into community businesses,
leaving the facility in disrepair and the maintenance costs a
liability for the counties. While the State must continue to ensure
that unnecessary costs and property-holdings are addressed, it also
has a responsibility to the business community, our local governments
and our community members to ensure that the transition of state
facilities into operational business enterprises is done in a safe,
responsible and effective manner.

In many respects, the issues presented by asbestos are quite similar
to those presented by brownfield sites, in that inherent complications
of the property, including health and safety considerations, prohibit
it from being a viable capital enterprise.

This bill would assist in advancing the reuse and redevelopment of the
previously state-owned facilities that are sitting vacant due to the
cost factors associated with safe and responsible asbestos removal.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

Tax credits to redevelop former state facilities should provide an
economic return.

 EFFECTIVE DATE :
Immediately.