AN ACT TO REQUIRE PERSONS FURNISHING LABOR OR MATERIALS IN CONNECTION WITH CERTAIN IMPROVEMENTS TO REAL PROPERTY TO GIVE WRITTEN NOTICE TO THE DESIGNATED LIEN AGENT OF THE OWNER OF THE IMPROVED REAL PROPERTY TO PRESERVE THEIR LIEN RIGHTS. Summarized in Daily Bulletin 6/20/12, 6/21/12, and 6/27/12. Enacted July 12, 2012. Effective April 1, 2013.
Bill Summaries: S42 (2011-2012 Session)
Summary date: Jul 17 2012 - View summary
Summary date: Jun 27 2012 - View summary
Conference report recommends the following changes to 4th edition to reconcile matters in controversy.
SECTION 1. Identical.
SECTION 2. Same as 4th edition except:
(1) Amends proposed GS 44A-11.1(a) to exempt an owner from the requirement to designate a lien agent when making improvements to an existing single-family residential dwelling unit (as defined in GS 87-15.5(7)) that is used by the owner as a residence.
(2) Amends proposed GS 44A-11.1(d)(2) to clarify that the owner must provide successor lien agent information to any persons who requested information from the owner relating to the predecessor lien agent.
(3) Amends proposed GS 44A-11.2(c) to delete language providing that noncompliance with notice requirements constitutes a violation of GS 75-1.1 (unfair trade practice), and adds language providing that notice may be given either by complying with the requirements of subsection (f), or by including lien agent contact information in a written contract with lower-tier subcontractor entitled to notice, and that any contractor or subcontractor who received lien agent contact information that does not furnish that information to the lower-tier subcontractor in the time required by the subsection will be liable to that lower-tier subcontractor for any actual damages incurred as a result of failure to give notice.
(4) Amends proposed GS 44A-11.2 by adding a new proposed subsection (g1) providing for lien agent notification requirements for contracts involving design professionals (architects, engineers, land surveyors, and landscape architects registered under Chapter 83A, 89A, or 89C of the General Statutes).
SECTION 3. Same as 4th edition except:
(1) Amends proposed GS 58-26-41(a) to clarify that title insurance companies required to register are those that consent to serve as a lien agenc upon designation by any owner.
(2) Amends proposed GS 58-26-41(b)(2) and (b)(3) to clarify obligations of lien agents when receiving and acknowledging notices delivered by potential lien claimants.
SECTIONS 4, 5, and 6. Same as 4th edition except exempts from requirement that lien agent name and contact information be included on city-issued and county-issued building permits those projects involving improvements to an existing single-family residential dwelling unit (as defined in GS 87-15.5(7)) that is used by the permit applicant as a residence. Makes conforming changes.
SECTION 6.1. New provision amending GS 44A-23 to provide that no action of a contractor shall be effective to prejudice the rights of a subcontractor, including a second or third tier subcontractor, without the subcontractor’s written consent when all of the following have occurred in compliance with the applicable statutory requirements: (1) the subcontractor has given notice to the owner’s designated lien agent (if any); (2) the subcontractor has served notice of a lien claim on the owner; and (3) the subcontractor has delivered a copy of the lien claim notice served on the owner to the owner’s lien agency (if any).
Summary date: Jun 21 2012 - View summary
House amendment makes the following changes to 3rd edition. Amends proposed GS 44A-11.2(f)(6) to require written notice that is delivered by electronic mail to include delivery receipt. Amends (h) to clarify in the notice form set out in the statute that the description is of real property. Amends GS 58-26-41(b)(7) to amend a lien agent’s duty, upon receiving notice of designation, to provide written notice of potential claimants having delivered notice, within one day of receiving a request from specified entities, to include a request from a title insurance agency issuing a policy of title insurance on the improved property. Makes a clarifying change to GS 44A-11.1.
Summary date: Jun 20 2012 - View summary
House committee substitute makes the following changes to 2nd edition.
Deletes all provisions of previous edition and replaces them with AN ACT TO REQUIRE PERSONS FURNISHING LABOR OR MATERIALS IN CONNECTION WITH CERTAIN IMPROVEMENTS TO REAL PROPERTY TO GIVE WRITTEN NOTICE TO THE DESIGNATED LIEN AGENT OF THE OWNER OF THE IMPROVED REAL PROPERTY TO PRESERVE THEIR LIEN RIGHTS.
Enacts two provisions to Article 2 (statutory liens on real property) in GS Chapter 44A to require designation of a lien agent when an owner makes certain improvements to real property and to set out the procedure to notify a lien agent. Requires an owner to designate a lien agent, defined as a title insurance company or title insurance agency, before contracting with any person for an improvement to real property costing $30,000 or more. Directs the owner to notify the lien agent of this designation. Requires the lien agent to be selected from a list of registered agents maintained by the Department of Insurance. Directs the owner to meet certain listed conditions to designate a successor lien agent if the lien agent becomes unable or unwilling to serve. Specifies that a closing attorney fulfills his or her duty by contacting the lien agent and requesting copies of the notices received by the agent no more than five business days before the deed is recorded. Adds definitions for lien agent, inspection department, and potential lien claimant to GS 44A-7.
Requires the posting of any building permit and a sign displaying the lien agent’s contact information on any property where the owner is required to designate a lien agent. Directs an owner to provide the lien agent’s contact information to a potential lien claimant within seven days of a request from the claimant. Details the requirement for a contractor or subcontractor to provide certain lower-tier subcontractors with the lien agent’s information. Specifies the delivery methods to satisfy the written notice requirement and sets out the form language to provide notice to lien agent under the provision. Specifies that service of such notice to lien agent does not satisfy the requirements for a notice of claim of lien upon funds. Lists the alternate conditions a potential lien claimant must meet to perfect a claim of lien on real property. Makes a claim of lien on real property that is not filed before the mortgage or deed of trust is recorded subordinate to the previously recorded mortgage or deed of trust unless (1) the designated lien agent received notice from the claimant within 15 days after the first furnishing of labor or materials or (2) the designated lien agent received notice from the claimant before the mortgage or deed of trust was recorded to benefit a person not affiliated or related to the owner. States that a potential lien claimant is not required to comply with these provisions if the lien agent’s contact information is not included in the building permit or posted on the property and not otherwise provided to the claimant in response to a request.
Enacts new GS 58-26-41 to require title insurance companies and title insurance agencies serving as lien agents to register with the Department of Insurance, as specified. Directs the lien agent to perform listed duties after an owner’s designation. Provides for removal from the registration list, and sets fees imposed by lien agents.
Makes conforming changes to GS 87-14 (concerning the issuance of building permits), GS 160A-417 (issuance of permits by cities), and GS 153A-357 (issuance of permits by counties).
Applies to improvements to real property for which the first furnishing of labor or materials is on or after April 1, 2013.
Summary date: Mar 28 2011 - View summary
Senate committee substitute makes the following changes to 1st edition. Deletes the provisions of the 1st edition and instead amends GS 15A-1225.1 (child witnesses; remote testimony) to prohibit the court from requiring that expert testimony be presented at an evidentiary hearing. Allows the court to make its determination based solely on lay testimony whether or not expert testimony is presented. Maintains the October 1, 2011, effective date and provides that the act does not amend or alter the evidentiary rules applying to proceedings that occur before the effective date.
Changes the title of the act to AN ACT TO CLARIFY THAT A COURT MAY RELY SOLELY ON LAY TESTIMONY WHEN MAKING A DETERMINATION THAT A CHILD WITNESS IN A CRIMINAL CASE WOULD SUFFER SERIOUS EMOTIONAL DISTRESS AND THE CHILD’S ABILITY TO COMMUNICATE WITH THE TRIER OF FACT WOULD BE IMPAIRED BY TESTIFYING IN THE DEFENDANT’S PRESENCE.
Summary date: Feb 8 2011 - View summary
Enacts GS 15A-1225.1(b1) to provide that in a criminal case involving an alleged sexual offense against a child witness, the court may rely solely on lay testimony in determining (1) whether the child would suffer serious emotional distress by testifying in the defendant’s presence and (2) whether the child’s ability to communicate with the trier of fact would be impaired by so testifying, so as to authorize remote testimony by the child witness. Applies to criminal proceedings pending on or after October 1, 2011.