AN ACT to authorize the Department of Environment and Natural resources to transfer certain environmental permits associated with property development when the original property owner is unwilling or unable to agree to the permit transfer.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143‑214.7 is amended by adding a new subsection to read:
"§ 143‑214.7.  Stormwater runoff rules and programs.
…
(c5)	The Department may transfer a permit issued pursuant to this section without the consent of the permit holder to a successor‑owner of the property on which the permitted activity is occurring or will occur as provided in this subsection.
(1)	The Department may transfer a permit if all of the following conditions are met:
a.	The successor‑owner of the property submits to the Department a written request for the transfer of the permit.
b.	The Department finds all of the following:
1.	The permit holder is one of the following:
I.	A natural person who is deceased.
II.	A partnership, limited liability corporation, corporation, or any other business association that has been dissolved.
III.	A person who has been lawfully and finally divested of title to the property on which the permitted activity is occurring or will occur.
IV.	A person who has sold the property on which the permitted activity is occurring or will occur.
2.	The successor‑owner holds title to the property on which the permitted activity is occurring or will occur.
3.	The successor‑owner is the sole claimant of the right to engage in the permitted activity.
4.	There will be no substantial change in the permitted activity.
(2)	The permit holder shall comply with all terms and conditions of the permit until such time as the permit is transferred.
(3)	The successor‑owner shall comply with all terms and conditions of the permit once the permit has been transferred.
(4)	Notwithstanding changes to law made after the original issuance of the permit, the Department may not impose new or different terms and conditions in the permit without the prior express consent of the successor‑owner.
…."
SECTION 2.  G.S. 143‑215.1 is amended by adding a new subsection to read:
"§ 143‑215.1.  Control of sources of water pollution; permits required.
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(d3)	The Department may transfer a permit issued pursuant to subsection (d) of this section without the consent of the permit holder to a successor‑owner of the property on which the permitted activity is occurring or will occur as provided in this subsection.
(1)	The Department may transfer a permit if all of the following conditions are met:
a.	The successor‑owner of the property submits to the Department a written request for the transfer of the permit.
b.	The Department finds all of the following:
1.	The permit holder is one of the following:
I.	A natural person who is deceased.
II.	A partnership, limited liability corporation, corporation, or any other business association that has been dissolved.
III.	A person who has been lawfully and finally divested of title to the property on which the permitted activity is occurring or will occur.
IV.	A person who has sold the property on which the permitted activity is occurring or will occur.
2.	The successor‑owner holds title to the property on which the permitted activity is occurring or will occur.
3.	The successor‑owner is the sole claimant of the right to engage in the permitted activity.
4.	There will be no substantial change in the permitted activity.
(2)	The permit holder shall comply with all terms and conditions of the permit until such time as the permit is transferred.
(3)	The successor‑owner shall comply with all terms and conditions of the permit once the permit has been transferred.
(4)	Notwithstanding changes to law made after the original issuance of the permit, the Department may not impose new or different terms and conditions in the permit without the prior express consent of the successor‑owner.
…."
SECTION 3.  G.S. 113A‑54.1 reads as rewritten:
"§ 113A‑54.1.  Approval of erosion control plans.
(a)	A draft erosion and sedimentation control plan must contain the applicant's address and, if the applicant is not a resident of North Carolina, designate a North Carolina agent for the purpose of receiving notice from the Commission or the Secretary of compliance or noncompliance with the plan, this Article, or any rules adopted pursuant to this Article. Except as provided in subsection (a1) of this section, if the applicant is not the owner of the land to be disturbed, the draft erosion and sedimentation control plan must include the owner's written consent for the applicant to submit a draft erosion and sedimentation control plan and to conduct the anticipated land‑disturbing activity. The Commission shall approve, approve with modifications, or disapprove a draft erosion and sedimentation control plan for those land‑disturbing activities for which prior plan approval is required within 30 days of receipt. The Commission shall condition approval of a draft erosion and sedimentation control plan upon the applicant's compliance with federal and State water quality laws, regulations, and rules. Failure to approve, approve with modifications, or disapprove a completed draft erosion and sedimentation control plan within 30 days of receipt shall be deemed approval of the plan. If the Commission disapproves a draft erosion and sedimentation control plan or a revised erosion and sedimentation control plan, it must state in writing the specific reasons that the plan was disapproved. Failure to approve, approve with modifications, or disapprove a revised erosion and sedimentation control plan within 15 days of receipt shall be deemed approval of the plan. The Commission may establish an expiration date for erosion and sedimentation control plans approved under this Article.
(a1)	If the applicant is not the owner of the land to be disturbed and the anticipated land‑disturbing activity involves the construction of utility lines for the provision of water, sewer, gas, telecommunications, or electrical service, the draft erosion and sedimentation control plan may be submitted without the written consent of the owner of the land, so long as the owner of the land has been provided prior notice of the project.
(b)	If, following commencement of a land‑disturbing activity pursuant to an approved erosion and sedimentation control plan, the Commission determines that the plan is inadequate to meet the requirements of this Article, the Commission may require any revision of the plan that is necessary to comply with this Article. Failure to approve, approve with modifications, or disapprove a revised erosion and sedimentation control plan within 15 days of receipt shall be deemed approval of the plan.
(c)	The Commission shall disapprove an erosion and sedimentation control plan if implementation of the plan would result in a violation of rules adopted by the Environmental Management Commission to protect riparian buffers along surface waters. The Director of the Division of Energy, Mineral, and Land Resources may disapprove an erosion and sedimentation control plan or disapprove a transfer of a plan under subsection (d1) of this section upon finding that an applicant or a parent, subsidiary, or other affiliate of the applicant:
(1)	Is conducting or has conducted land‑disturbing activity without an approved plan, or has received notice of violation of a plan previously approved by the Commission or a local government pursuant to this Article and has not complied with the notice within the time specified in the notice;
(2)	Has failed to pay a civil penalty assessed pursuant to this Article or a local ordinance adopted pursuant to this Article by the time the payment is due;
(3)	Has been convicted of a misdemeanor pursuant to G.S. 113A‑64(b) or any criminal provision of a local ordinance adopted pursuant to this Article; or
(4)	Has failed to substantially comply with State rules or local ordinances and regulations adopted pursuant to this Article.
(d)	In the event that an erosion and sedimentation control plan or a transfer of a plan is disapproved by the Director pursuant to subsection (c) of this section, the Director shall state in writing the specific reasons that the plan was disapproved. The applicant or the proposed transferee may appeal the Director's disapproval of the plan to the Commission. For purposes of this subsection and subsection (c) of this section, an applicant's record or a proposed transferee's record may be considered for only the two years prior to the application date.
(d1)	The Department may transfer an erosion and sedimentation control plan approved pursuant to this section without the consent of the plan holder to a successor‑owner of the property on which the permitted activity is occurring or will occur as provided in this subsection.
(1)	The Department may transfer a plan if all of the following conditions are met:
a.	The successor‑owner of the property submits to the Department a written request for the transfer of the plan and an authorized statement of financial responsibility and ownership.
b.	The Department finds all of the following:
1.	The plan holder is one of the following:
I.	A natural person who is deceased.
II.	A partnership, limited liability corporation, corporation, or any other business association that has been dissolved.
III.	A person who has been lawfully and finally divested of title to the property on which the permitted activity is occurring or will occur.
IV.	A person who has sold the property on which the permitted activity is occurring or will occur.
2.	The successor‑owner holds title to the property on which the permitted activity is occurring or will occur.
3.	The successor‑owner is the sole claimant of the right to engage in the permitted activity.
4.	There will be no substantial change in the permitted activity.
(2)	The plan holder shall comply with all terms and conditions of the plan until such time as the plan is transferred.
(3)	The successor‑owner shall comply with all terms and conditions of the plan once the plan has been transferred.
(4)	Notwithstanding changes to law made after the original issuance of the plan, the Department may not impose new or different terms and conditions in the plan without the prior express consent of the successor‑owner. Nothing in this subsection shall prevent the Commission from requiring a revised plan pursuant to G.S. 113A‑54.1(b).
(e)	The landowner, the financially responsible party, or the landowner's or the financially responsible party's agent shall perform an inspection of the area covered by the plan after each phase of the plan has been completed and after establishment of temporary ground cover in accordance with G.S. 113A‑57(2). The person who performs the inspection shall maintain and make available a record of the inspection at the site of the land‑disturbing activity. The record shall set out any significant deviation from the approved erosion control plan, identify any measures that may be required to correct the deviation, and document the completion of those measures. The record shall be maintained until permanent ground cover has been established as required by the approved erosion and sedimentation control plan. The inspections required by this subsection shall be in addition to inspections required by G.S. 113A‑61.1."
SECTION 4.  G.S. 113A‑61 reads as rewritten:
"§ 113A‑61.  Local approval of erosion and sedimentation control plans.
(a)	For those land‑disturbing activities for which prior approval of an erosion and sedimentation control plan is required, the Commission may require that a local government that administers an erosion and sedimentation control program approved under G.S. 113A‑60 require the applicant to submit a copy of the erosion and sedimentation control plan to the appropriate soil and water conservation district or districts at the same time the applicant submits the erosion and sedimentation control plan to the local government for approval. The soil and water conservation district or districts shall review the plan and submit any comments and recommendations to the local government within 20 days after the soil and water conservation district received the erosion and sedimentation control plan or within any shorter period of time as may be agreed upon by the soil and water conservation district and the local government. Failure of a soil and water conservation district to submit comments and recommendations within 20 days or within agreed upon shorter period of time shall not delay final action on the proposed plan by the local government.
(b)	Local governments shall review each erosion and sedimentation control plan submitted to them and within 30 days of receipt thereof shall notify the person submitting the plan that it has been approved, approved with modifications, or disapproved. A local government shall only approve a plan upon determining that it complies with all applicable State and local regulations for erosion and sedimentation control.
(b1)	A local government shall condition approval of a draft erosion and sedimentation control plan upon the applicant's compliance with federal and State water quality laws, regulations, and rules. A local government shall disapprove an erosion and sedimentation control plan if implementation of the plan would result in a violation of rules adopted by the Environmental Management Commission to protect riparian buffers along surface waters. A local government may disapprove an erosion and sedimentation control plan or disapprove a transfer of a plan under subsection (b3) of this section upon finding that an applicant or a parent, subsidiary, or other affiliate of the applicant:
(1)	Is conducting or has conducted land‑disturbing activity without an approved plan, or has received notice of violation of a plan previously approved by the Commission or a local government pursuant to this Article and has not complied with the notice within the time specified in the notice.
(2)	Has failed to pay a civil penalty assessed pursuant to this Article or a local ordinance adopted pursuant to this Article by the time the payment is due.
(3)	Has been convicted of a misdemeanor pursuant to G.S. 113A‑64(b) or any criminal provision of a local ordinance adopted pursuant to this Article.
(4)	Has failed to substantially comply with State rules or local ordinances and regulations adopted pursuant to this Article.
(b2)	In the event that an erosion and sedimentation control plan or a transfer of a plan is disapproved by a local government pursuant to subsection (b1) of this section, the local government shall so notify the Director of the Division of Energy, Mineral, and Land Resources within 10 days of the disapproval. The local government shall advise the applicant or the proposed transferee and the Director in writing as to the specific reasons that the plan was disapproved. Notwithstanding the provisions of subsection (c) of this section, the applicant may appeal the local government's disapproval of the plan directly to the Commission. For purposes of this subsection and subsection (b1) of this section, an applicant's record or the proposed transferee's record may be considered for only the two years prior to the application date.
(b3)	A local government administering an erosion and sedimentation control program may transfer an erosion and sedimentation control plan approved pursuant to this section without the consent of the plan holder to a successor‑owner of the property on which the permitted activity is occurring or will occur as provided in this subsection.
(1)	The local government may transfer a plan if all of the following conditions are met:
a.	The successor‑owner of the property submits to the local government a written request for the transfer of the plan and an authorized statement of financial responsibility and ownership.
b.	The local government finds all of the following:
1.	The plan holder is one of the following:
I.	A natural person who is deceased.
II.	A partnership, limited liability corporation, corporation, or any other business association that has been dissolved.
III.	A person who has been lawfully and finally divested of title to the property on which the permitted activity is occurring or will occur.
IV.	A person who has sold the property on which the permitted activity is occurring or will occur.
2.	The successor‑owner holds title to the property on which the permitted activity is occurring or will occur.
3.	The successor‑owner is the sole claimant of the right to engage in the permitted activity.
4.	There will be no substantial change in the permitted activity.
(2)	The plan holder shall comply with all terms and conditions of the plan until such time as the plan is transferred.
(3)	The successor‑owner shall comply with all terms and conditions of the plan once the plan has been transferred.
(4)	Notwithstanding changes to law made after the original issuance of the plan, the local government may not impose new or different terms and conditions in the plan without the prior express consent of the successor‑owner. Nothing in this subsection shall prevent the local government from requiring a revised plan pursuant to G.S. 113A‑54.1(b).
(c)	The disapproval or modification of any proposed erosion and sedimentation control plan by a local government shall entitle the person submitting the plan to a public hearing if the person submits written demand for a hearing within 15 days after receipt of written notice of the disapproval or modification. The hearings shall be conducted pursuant to procedures adopted by the local government. If the local government upholds the disapproval or modification of a proposed erosion and sedimentation control plan following the public hearing, the person submitting the erosion and sedimentation control plan is entitled to appeal the local government's action disapproving or modifying the plan to the Commission. The Commission, by regulation, shall direct the Secretary to appoint such employees of the Department as may be necessary to hear appeals from the disapproval or modification of erosion and sedimentation control plans by local governments. In addition to providing for the appeal of local government decisions disapproving or modifying erosion and sedimentation control plans to designated employees of the Department, the Commission shall designate an erosion and sedimentation control plan review committee consisting of three members of the Commission. The person submitting the erosion and sedimentation control plan may appeal the decision of an employee of the Department who has heard an appeal of a local government action disapproving or modifying an erosion and sedimentation control plan to the erosion and sedimentation control plan review committee of the Commission. Judicial review of the final action of the erosion and sedimentation control plan review committee of the Commission may be had in the superior court of the county in which the local government is situated.
(d)	Repealed by Session Laws 1989, c. 676, s. 4."

SECTION 5.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 10th day of June, 2013.

	s/	 Daniel J. Forest
	 President of the Senate

	s/	 Thom Tillis
	 Speaker of the House of Representatives

	s/	 Pat McCrory
	 Governor

Approved 4:16 p.m. this 19th day of June, 2013