Transfer Act Revisions
ENVIRONMENTAL LAW UPDATE:
TRANSFER ACT REVISIONS
EFFECTIVE OCTOBER 1, 2019
By: Mark J. Zimmermann, Esq.
On June 28, 2019 Governor Lamont signed a bill entitled “An Act Concerning the Audit Period for the Transfer of Hazardous Waste Establishments”. The bill makes numerous amendments to the Transfer Act that will be effective on October 1, 2019. These amendments serve to ease some of the present burdens imposed upon certain establishments involved with the transfer of contaminated properties under Connecticut’s Transfer Act.
The Transfer Act requires the filing of certain prescribed forms, and can impose investigation and/or remediation obligations on a party to the transaction, when certain types of business or real estate “establishments” are transferred. The Act is unique to Connecticut and is generally viewed by the regulated community as somewhat onerous and an impediment to the redevelopment of contaminated property.
Pursuant to these amendments, the following types of activities will no longer trigger the Transfer Act:
- The one-time generation of hazardous waste
- The remediation of polluted soil, groundwater or sediment
- The removal or abatement of building materials
- The removal of unused chemicals or materials as a result of emptying or cleaning out a building
- The removal of waste within 90 days of the complete cessation of a business operation
If you are contemplating the transfer of a business or real estate that currently meets the definition of “establishment” solely due to one of these listed activities, it may be advantageous to wait until after October 1, 2019 to consummate the transaction.
In addition, the current Transfer Act allows DEEP to conduct an audit of a Transfer Act Verification within three years of receipt. The amendments now provide that DEEP must commence the audit within one year and complete it within three years.
While the regulated community was hoping for more wide-ranging reform of the Transfer Act, these Amendments are helpful and should reduce the scope of transactions that fall within the Act’s purview.