AMD LLC LAWS/PATERNITY DOCS/SPOUSE SUPP. (NEW)

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View NCGA Bill Details2023-2024 Session
Senate Bill 546 (Public) Filed Tuesday, April 4, 2023
AN ACT TO CREATE SPECIAL ECONOMIC INTEREST OWNERS OF LIMITED LIABILITY COMPANIES AND TO GRANT THEM INFORMATION RIGHTS AND STANDING TO SEEK JUDICIAL DISSOLUTION, TO CHANGE THE PROCESS FOR ESTABLISHING PATERNITY OF CHILDREN BORN OUT OF WEDLOCK, AND TO DENY ALIMONY TO A DEPENDENT SPOUSE FOR ENGAGING IN COHABITATION AND TO DENY POSTSEPARATION SUPPORT TO A DEPENDENT SPOUSE THAT ENGAGES IN ILLICIT SEXUAL ACTS OR COHABITATION.
Intro. by Sawrey.

Status: Re-ref Com On Rules, Calendar, and Operations of the House (House action) (Jun 28 2023)

SOG comments (1):

Long title change

Senate amendment to the 2nd edition changed the long title. Original title was AN ACT TO CREATE SPECIAL ECONOMIC INTEREST OWNERS OF LIMITED LIABILITY COMPANIES AND TO GRANT THEM INFORMATION RIGHTS AND STANDING TO SEEK JUDICIAL DISSOLUTION, TO CHANGE THE PROCESS FOR ESTABLISHING PATERNITY OF CHILDREN BORN OUT OF WEDLOCK, AND TO DENY ALIMONY TO A DEPENDENT SPOUSE FOR ENGAGING IN COHABITATION AND TO DENY POSTSEPARATION SUPPORT TO A DEPENDENT SPOUSE THAT ENGAGES IN ILLICIT SEXUAL ACTS OR COHABITATION.

S 546

Bill Summaries:

  • Summary date: Jun 28 2023 - View Summary

    House committee substitute to the 3rd edition makes the following changes.

    Amends GS 130A-101(f) (pertaining to affidavits of paternity) to remove provision requiring that an affidavit of paternity be filed with the clerk of court in order for a child born out of wedlock to inherit under a putative parent’s estate.

    Amends GS 50-16.3A by making clarifying changes and deleting provision requiring that the court award alimony to the dependent spouse if the court finds that the supporting spouse engages in cohabitation at any time during the marriage until a decree of divorce.

    Deletes amendments to GS 50-16.2A (postseparation support) that would have required that a court enter an award of postseparation support to a dependent spouse if the court finds that the supporting spouse participated in an act of illicit sexual behavior. Also would have required that if a court finds that the supporting spouse engaged in cohabitation during the marriage until a decree of divorce, then the court must order that alimony be paid to the dependent spouse.

    Amends GS 50-16.9 (modification of order for alimony or postseparation support) to require a court to terminate alimony if a dependent spouse who is receiving postseparation support from a supporting spouse under a judgment or order of a court of this State engages in an act of illicit sexual behavior, as defined in GS 50-16.1A(3)a (acts of sexual or deviate sexual intercourse, deviate sexual acts, or sexual acts defined in GS 14-27.20(4) [Cunnilingus, fellatio, analingus, or anal intercourse, but does not include vaginal intercourse, or the penetration, however slight, by any object into the genital or anal opening of another person's body]), voluntarily engaged in by a spouse with someone other than the other spouse. Effective October 1, 2023.

    Makes organizational changes.


  • Summary date: May 4 2023 - View Summary

    Senate amendment to the 2nd edition makes the following changes.

    Amends GS 50-16.3A (alimony) to specify that if a court finds that the supporting spouse engages in cohabitation during the marriage until a decree of divorce, then the court must order that alimony be paid to the dependent spouse.

    Amends GS 50-16.2A(d1) (postseparation support) to require that a court enter an award of postseparation support to a dependent spouse if the court finds that the supporting spouse participated in an act of illicit sexual behavior. Also specifies that if a court finds that the supporting spouse engage in cohabitation during the marriage until a decree of divorce, then the court must order that alimony be paid to the dependent spouse.

    Specifies that changes to GS 29-19 (succession by, through, and from children born out of wedlock) are effective when the act becomes law and applies to the estate of decedents opened on or after that date. Makes organizational changes to the effective date. Makes conforming changes to the act’s long title.


  • Summary date: May 2 2023 - View Summary

    Senate committee substitute to the 1st edition adds the following content.

    Amends GS 29-19 (pertaining to succession by, through, and from children born out of wedlock) to delete the requirement that a father must also file the writing acknowledging the child born out of wedlock with the clerk of superior court of the county where either the father or child resides. Makes technical change.  

    Amends GS 50-16.1A to define cohabitation to mean the act as provided in GS 50-16.9 (act of two adults dwelling together continuously and habitually in a private heterosexual relationship, even if this relationship is not solemnized by marriage, or a private homosexual relationship). Amends GS 50-16.3A by prohibiting a court from awarding alimony if the court finds that the dependent spouse engages in cohabitation at any time during the marriage until a degree of divorce. Amends GS 50-16.2A by adding that if the court finds that the dependent spouse participated in an act of illicit sexual behavior during the marriage and before or on the date of separation, the court must not award postseparation support. Also prohibits postseparation support if the court finds that the dependent spouse engages in cohabitation at any time during the marriage until a decree of divorce. Effective October 1, 2023.

    Amends the act's titles.


  • Summary date: Apr 4 2023 - View Summary

    Amends GS 57D-1-03, the definitions provisions of the NC Limited Liability Company Act to add defined term special economic interest owner, which means a person who owns an economic interest and, as provided in GS 57D-3-02 (cessation of LLC membership), has rights to information and to seek dissolution but is not a member. Makes conforming changes to defined terms economic interest owner and interest owner to include a special economic interest owner among the definitions of those terms. 

    Amends GS 57D-3-02 to delineate two types of interest that arise when a person ceases to become a member. First, if a person ceases to become a member of the LLC because they are a debtor in bankruptcy; execute an assignment for the benefit of creditors under applicable law; or has a general receiver appointed for them or a trustee, receiver, or liquidator appointed for the liquidation of their property, then the person becomes an economic interest owner. If an individual dies or is adjudicated by a court of competent jurisdiction as incompetent then the member's estate or the member through the  member's designated agent or court-appointed guardian will automatically become a special economic interest owner entitled to (1) the economic interest attributable to the member's ownership interest; (2) the member's information rights; and (3) the member's standing to seek judicial dissolution or under an alternative remedy, if applicable, in the operating agreement. Makes organizational changes and terms gender neutral.

    Effective October 1, 2023, and applies to requests for information and actions for dissolution commenced on or after that date.