A BILL TO BE ENTITLED
AN ACT to protect public health and water quality for residents of the State that receive drinking water from private wells by requiring testing of certain water quality parameters prior to the transfer, lease, or rental of property served by a private well; to require notification of groundwater contamination to well owners and well users that live or work near a contaminated well; to establish a groundwater contamination database; to establish an emergency drinking water fund; and to appropriate funds.
The General Assembly of North Carolina enacts:
SECTION 1.  Chapter 130A of the General Statutes is amended by adding a new Article to read:
"Article 10A.
"Private Drinking Water Wells.
"§ 130A‑330.1.  Purpose.
The purpose of this Article is to ensure the safety and quality of potable water delivered from private drinking water wells in the State.
"§ 130A‑330.2.  Definitions.
The following definitions shall apply throughout this Article:
(1)	'Certified laboratory' means a facility that has received interim or final certification by either the United States Environmental Protection Agency or the Department for performing bacteriological, chemical or other analyses on water.
(2)	'Contaminant' means any physical, chemical, biological, or radiological substance or matter in water.
(3)	'Department' means the Department of Environment and Natural Resources.
(4)	'Fund' means the Emergency Drinking Water Fund established by G.S. 130A‑330.7.
(5)	'Groundwater standards' means water quality standards for groundwater adopted by the Environmental Management Commission pursuant to G.S. 143‑214.1.
(6)	'Owner' means each person having a recorded present or future interest in real estate that is identified in a real estate contract but shall not mean or include the trustee in a deed of trust, or the owner or holder of a mortgage, deed of trust, mechanic's or materialman's lien, or other lien or security interest in the real property, or the owner of any easement or license encumbering the real property.
(7)	'Private well' means a drinking water well that has less than 15 service connections or that does not regularly serve 25 or more individuals.
(8)	'Purchaser' means each person or entity named as 'buyer' or 'purchaser' in a real estate contract.
(9)	'Real estate contract' means a contract for the transfer of ownership of real property.
(10)	'Real property' means a lot, tract, or parcel of land, and any business or dwelling unit located thereon that is described in a real estate contract.
(11)	'Transfer' means the transfer, sale, exchange, installment land sales contract, option, or lease with option to purchase of real estate property.
(12)	'Water test' means a test of drinking water conducted in accordance with G.S. 130A‑330.5 and rules adopted by the Commission pursuant to this Article.
(13)	'Well user' means a person or group of persons residing in the same dwelling unit or working at the same business at which drinking water is supplied from a private well.
"§ 130A‑330.3.  Scope of the Article.
The provisions of this Article shall apply to all transfers of real property in the State unless the transfer occurs under one of the following conditions:
(1)	Transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.
(2)	Transfers to a beneficiary from the grantor or his successor in interest in a deed of trust, or to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a foreclosure sale under a deed of trust.
(3)	Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust.
(4)	Transfers from one or more co‑owners solely to one or more other co‑owners.
(5)	Transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors.
(6)	Transfers between spouses resulting from a decree of divorce or a distribution pursuant to Chapter 50 of the General Statutes or comparable provision of another state.
(7)	Transfers made by virtue of the record owner's failure to pay any federal, State, or local taxes.
(8)	Transfers to or from the State or any political subdivision of the State.
"§ 130A‑330.4.  Water test required before transfer of real property; rental or leased properties.
(a)	No person shall transfer real property to which water is supplied from a private well for human consumption unless a water test has been conducted on the well in accordance with this Article within the previous six months.
(b)	A closing on the transfer of real property to which water is supplied from a private well for human consumption shall not occur unless both the owner and the purchaser have received and reviewed a copy of the results of the most recent water test. At closing, the owner and purchaser both shall certify in writing that they have received and reviewed the results of the most recent water test.
(c)	A lessor of any rental or leased property to which water is supplied from a private well for human consumption shall conduct a water test pursuant to this Article at least once every three years. The lessor shall provide a copy of the results of the most recent water test to the tenants of each rental or leased property no later than 30 days after receipt of the test results. The lessor shall also provide a copy of the results of the most recent water test to a new lessee prior to the signing of a rental or lease agreement.
"§ 130A‑330.5.  Water test procedures.
(a)	The Commission shall establish criteria and procedures for a test of water provided from a private well to determine whether a well provides water that complies with groundwater standards. The criteria and procedures shall include an analysis for at least the following contaminants:
(1)	Bacteria (total coliform).
(2)	Nitrates.
(3)	Heavy metals.
(4)	Volatile organic compounds.
(b)	The Commission may require testing for additional contaminants in areas of the State where additional contaminants may pose a threat to public health.
(c)	A water test conducted pursuant to this Article shall be completed by a certified laboratory.
(d)	The Commission shall develop a standard report form that certified laboratories shall use to report the results of a water test conducted pursuant to this Article.
(e)	A certified laboratory shall submit results of the water test to the owner no later than 15 days after completion of any analysis required by transfer, sale, or lease of property or as required to obtain a well permit under a local well program. A certified laboratory shall electronically submit the results of a water test conducted pursuant to this Article to the Department and to the State Health Director no later than 15 days after completion of the analysis.
"§ 130A‑330.6.  Emergency Drinking Water Fund.
There is established under the control and direction of the Department the Emergency Drinking Water Fund. The Fund shall be a nonreverting, interest‑bearing fund consisting of monies appropriated to the Fund by the General Assembly and investment interest credited to the Fund. The Fund may be used to pay for the provision of alternative drinking water supplies for parties affected by groundwater contamination on a temporary or permanent basis. The Department shall disburse monies from the Fund based on financial need and on the risk to public health posed by groundwater contamination.
"§ 130A‑330.7.  Annual report.
The Department, in consultation with the Commission and county health departments, shall report no later than 1 November of each year to the Environmental Review Commission, the House and Senate Appropriations Subcommittees on Natural and Economic Resources, and the Fiscal Research Division on the implementation of this Article. The report shall include the purpose and amount of all expenditures from the Fund during the prior fiscal year, a discussion of the benefits and deficiencies realized as a result of the Article, and may also include recommendations for any legislative action."
SECTION 2.  Article 21 of Chapter 143 of the General Statutes is amended by adding a new part to read:
"Part 11. Groundwater Quality Database.
"§ 143‑215.74J.  Database established.
The Department shall establish a Groundwater Quality Database as a resource center and repository for the results of groundwater quality monitoring conducted and submitted pursuant to programs administered by the Department under Articles 9, 10, and 10A of Chapter 130A and Articles 21 and 21A of Chapter 143 of the General Statutes. The Department shall:
(1)	Collect, maintain, and make available the information contained in the Database in a manner that is accessible to State agencies, local governments, and the general public.
(2)	Assess the quality and reliability of the data and organize the Database in a usable format. The Database shall include geographic information sufficient to map the groundwater resources of the State and to map areas in which groundwater contamination exceeds groundwater standards.
(3)	Prescribe the format for submission of information and ensure quality control for all data collected or submitted.
"§ 143‑215.74K.  Public notification.
(a)	The definitions in G.S. 130A‑330.2 apply to this section. For water tests of private wells submitted to the Department pursuant to Article 10A of Chapter 130A, the Department shall add this information to the Groundwater Quality Database. If the water test results indicate an exceedance of groundwater standards, the Department shall, within 15 business days of receipt of the water test results, provide notice of the exceedance to all of the following:
(1)	The local health department that serves the county in which the well is located.
(2)	Owners of real property served by any other private well that is located within a 1,500‑foot radius of the well.
(3)	Well users who occupy a dwelling or work at a business within a 1,500‑foot radius of the well.
(b)	The Department shall provide notice for all groundwater quality samples submitted for inclusion in the Groundwater Quality Database that exceed groundwater standards to all of the following:
(1)	The local health department that serves the county in which the sampling location is located.
(2)	Owners of real property served by a private well that is located within a 1,500‑foot radius of the sampling location.
(3)	Well users who occupy a dwelling or work at a business within a 1,500‑foot radius of the sampling location.
(c)	The Commission, in consultation with the State Health Director, shall establish criteria and procedures for notification required by this section. The notification shall be issued in both English and Spanish and shall include all of the following information:
(1)	The location of the well from which the sample was collected.
(2)	The name, groundwater standard, and level of exceedance of each detected contaminant present that exceeds groundwater standards.
(3)	The potential health effects of each contaminant that exceeds the groundwater standards.
(4)	Contact information for the local health department and the closest office of the Department.
(5)	Any other information required by the rules of the Commission.
"§ 143‑215.74L.  Annual report.
The Department shall report no later than 1 November of each year to the Environmental Review Commission on the status of groundwater quality in the State. The report shall include information on the status of the groundwater quality Database, public notification efforts, groundwater monitoring efforts conducted by the Department, and trends in groundwater quality, movement, and quantity. The report may also include issues related to groundwater quality, deficiencies in groundwater quality information, and recommendations, if any, to improve the Department's understanding of the quality, movement, and quantity of groundwater resources in the State."SECTION 3.  The Department of Environment and Natural Resources shall evaluate current programs to identify existing groundwater quality information that may be incorporated into the Groundwater Quality Database established in Section 2 of this act.  The Department shall complete this review on or before 1 January 2007.  The Department shall evaluate the effectiveness of current public notification requirements for known exceedances of groundwater standards in providing accurate and timely information to users of private drinking water wells.  The Department shall report to the Environmental Review Commission on or before 1 March 2007 on the implementation of this section.
SECTION 4.  There is appropriated from the General Fund to the Emergency Drinking Water Fund established by G.S. 130A‑330.6, as enacted by Section 1 of this act, the sum of one million dollars ($1,000,000) for the 2006‑2007 fiscal year.
SECTION 5.  There is appropriated from the General Fund to the Department of Environment and Natural Resources the sum of two hundred eighty‑six thousand dollars ($286,000) for the 2006‑2007 fiscal year to implement the provisions of this act.
SECTION 6.  It is the intent of the General Assembly that the funds appropriated by this act shall be recurring funds.
SECTION 7.  Nothing in this act shall be construed to limit or preempt the authority of a local health department or local board of health to make or cause to be made an inspection or test of a private well as may be necessary to ensure the health and safety of residents of the State.
SECTION 8.  The first report required pursuant to G.S. 130A‑330.7, as enacted by Section 1 of this act, is due on or before 1 November 2007.  The first report required pursuant to G.S. 143‑215.74L, as enacted by Section 2 of this act, is due on or before 1 November 2007.
SECTION 9.  Sections 1 and 2 of this act become effective 1 January 2007. Sections 3, 6, 7, 8, and 9 are effective when the act becomes law.  Sections 4 and 5 of this act become effective 1 July 2006.