BUSINESS/REGULATORY CHANGES. (NEW)

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View NCGA Bill Details2017-2018 Session
House Bill 573 (Public) Filed Wednesday, April 5, 2017
AN ACT TO MAKE BUSINESS AND REGULATORY CHANGES TO VARIOUS STATE LAWS.
Intro. by Faircloth, Ross, Blust, Brockman.

Status: Ch. SL 2018-65 (House Action) (Jun 25 2018)

SOG comments (1):

Long title change

Senate committee substitute to the 1st edition changed the long title. Original long title was AN ACT AUTHORIZING MUNICIPALITIES TO PETITION THE SUPERIOR COURT TO APPOINT A RECEIVER TO REHABILITATE, DEMOLISH, OR SELL A VACANT BUILDING, STRUCTURE, OR DWELLING WHERE THE OWNER HAS FAILED TO COMPLY WITH AN ORDER TO DO SO AND TO CHARGE THE OWNER AN ADMINISTRATIVE FEE.

Bill History:

H 573/S.L. 2018-65

Bill Summaries:

  • Summary date: Jun 26 2018 - View Summary

    AN ACT TO MAKE BUSINESS AND REGULATORY CHANGES TO VARIOUS STATE LAWS. Enacted June 25, 2018. Effective June 25, 2018, except as otherwise provided.


  • Summary date: Jun 11 2018 - View Summary

    Senate amendments make the following changes to the 2nd edition.

    Amendment #1 deletes proposed GS 153A-372.2, which authorizes counties to petition the superior court to appoint a receiver to rehabilitate, demolish, or sell a vacant building, structure, or dwelling upon the occurrence of any specified situation the statute deemed a nuisance per se. Makes conforming changes to the descriptive heading to Section 1 of the act and to the effective date provisions set out for Section 1 of the act.

    Amendment #2 directs the Alcoholic Beverage Control Commission (Commission) to amend the Advertising Rule (14B NCAC 15B .1006) to allow a sports or entertainment venue with a permanently constructed seating capacity of 3,000 or more that is not located on the campus of a school, college, or university, to display point-of-sale advertising for malt beverages and fortified wine inside the venue that is visible from outside the venue, and not require the venue to move or remove the advertising. Requires that the existing Advertising Rule be implemented as provided until the Rule is amended. 


  • Summary date: Jun 7 2018 - View Summary

    Senate committee substitute makes the following changes to the 1st edition.

    Makes organizational changes to the act, including adding section headers.

    Amends proposed GS 160A-439.1 to allow the governing body of a municipality or its delegated commission (was, a city) to petition the superior court for appointment of a receiver to rehabilitate, demolish, or sell a vacant building, structure, or dwelling upon one of the listed occurrences. Adds to those occurrences that the governing body of the municipality adopts any ordinance under GS 160A-439(f)(1), related to nonresidential buildings or structures that fail to meet minimum standards of maintenance, sanitation, and safety, and orders a public officer to continue enforcement actions prescribed by the ordinance with respect to the named nonresidential building or structure. Allows the public officer to submit a petition on behalf of the governing body to the superior court for the appointment of a receiver, and if granted, the petition is considered an appropriate means of complying with the ordinance; if the petition is not granted, allows the public officer and the governing body to take action under the ordinance in any manner authorized in GS 160A-439. Amends the information that must be included in a petition for the appointment of a receiver to (1) require that when an owner is requesting to the governing body for a petition for appointment of a receiver, that a verified pleading that avers that at least one owner consents to the petition be included; (2) no longer require the identification and qualifications of a proposed receiver in a verified pleading that avers that the required rehabilitation or demolition has not been completed; (3) require inclusion of the names of all parties in interest, as defined in GS 160A-442(5). Amends the notice requirements to require that the city give notice of the pendency and nature of the proceedings to the last known address of all owners of the property, and mortgagee with a recorded property interest, and all other parties in interest as defined in GS 160A-442(5) (was, to the last known address of all judgment creditors and lienholders with a recorded interest in the property). Makes conforming changes. Specifies that the court is to appoint a qualified receiver. Deletes proposed language on alternative appointments the court may make and instead provides that if the court does not appoint a person to rehabilitate or demolish the property under new subsection (e) of the statute, or if the court dismisses such an appointee, the court must appoint a qualified receiver to rehabilitate and manage the property, demolish the property, or sell the property to a buyer. Adds to the conditions that must be demonstrated in order to be considered as a qualified receiver to also require the ability to obtain any necessary insurance. 

    Adds new subsection (e) to the statute to allow the court to, instead of appointing a qualified receiver, appoint an owner, mortgagee, or other parties in interest in the property to rehabilitate or demolish the property if that person meets the specified requirements, including agreeing to comply with a specified schedule and posting a bond. Requires the person to report on their progress to the court. Provides that if it is determined that the individual is not proceeding with due diligence or in compliance with the court-ordered schedule, allows the city or its delegated commission to apply to the court for immediate revocation of that person's appointment and for the appointment of a qualified receiver. 

    Provides that upon the appointment of a receiver and after the receiver records a notice of receivership in the county in which the property is located that identifies the property, all other parties are divested of any authority to collect rents or other income from or to rehabilitate, demolish, or sell the building, structure, or dwelling subject to the receivership. Any party other than the appointed receiver who actively attempts to collect rents or other income from or to rehabilitate, demolish, or sell the property may be held in contempt of court and will be subject to penalties.

    Adds the following to a receivership's authority: (1) manage the property prior to rehabilitation or demolition and pay operational expenses of the property and debt secured by an interest in the property and (2) collect all rents and income from the property, which must be used to pay for current operating expenses and repayment of outstanding rehabilitation or demolition expenses.

    Clarifies that the deed conveying title to the property after the court's ratification of the sale of the property is subject to restrictions that run with the land.

    Deletes the provision that limited the statute to cities with a population of 30,000 or more as of July 2013, with a majority of the corporate boundaries in a county with a Tier 1 or Tier 2 annual ranking.

    Changes the effective date of the statute from October 1, 2017, to October 1, 2018.

    Adds a new section to the act enacting new GS 153A-372.2. The provisions of this statute are identical to the provisions of GS 160A-439.1, as amended, but are applicable to counties instead of cities.

    Enacts GS 143-138(b19), directing the Building Code Council to provide for an exemption for deteached and attached garages located on the same lot as a dwelling from any requirements in the energy efficiency standards pursuant to Chapter 11 of the NC Residential Code for One- and Two-Family Dwellings and Chapter 4 of the NC Energy Conservation Code. Effective October 1, 2018.

    Amends GS 18B-600(c1), which sets forth the criteria for cities to hold a malt beverage or unfortified wine election. Modifies the third criterion to require that the county in which more than 50% of the area of the primary corporate limits of the city is located also contains three or more other cities that have previously voted to allow malt beverage or unfortified wine sales (currently, contains three or more other cities that have previously voted to allow malt beverage and unfortified wine sales).

    Requires the Environmental Management Commission (Commission) to amend the Well Standard Rules to establish well casing, grouting, and setback requirements as specified, instead of as provided in the Criteria and Standards Applicable to Water-Supply and Certain Other Types of Wells set forth in 15A NCAC 02C .0101 through 15A NCAC 02C .0119. Requires that the existing Well Standard Rules be implemented as provided until the Rules are amended.

    Requires the Environmental Management Commission (Commission) to amend the Monitoring Plans and Requirements for C&DLF Facilities Rules to no longer require semiannual monitoring frequency for required groundwater sampling and instead only require the sampling on an annual basis. Requires that the existing Monitoring Plans and Requirements for C&DLF Facilities Rules be implemented as provided until the Rules are amended.

    Makes conforming changes to the act’s titles.


  • Summary date: Apr 5 2017 - View Summary

    Enacts new GS 160A-439.1 declaring a building or structure under Part 5 (building inspection) or a dwelling under Part 6 (minimum housing standards) of this Article as a nuisance per se and allows a city to petition the superior court for the appointment of a receiver to rehabilitate, demolish, or sell the vacant building, structure, or dwelling if the owner fails to comply with an order: (1) issued pursuant to GS 160A‑429 (order to take corrective action) from which no appeal has been taken; (2) of the city council issued pursuant to GS 160A‑429 following an appeal; or (3) to repair, alter, improve, remove, or demolish a structure issued under GS 160A‑443 (ordinance authorized as to repair, closing, and demolition; order of public officer). Specifies what must be included in a petition for the appointment of a receiver. 

    Requires the city, within 10 days after filing the petition, to give notice of the pendency and nature of the proceeding by regular and certified mail to the last known address of all judgment creditors and lienholders with a recorded interest in the property. Allows a judgment creditor or lienholder, within 30 days of the date on which the notice was mailed, to apply to intervene in the proceeding and to be appointed as receiver. If the city fails to give required notice, the proceeding may continue, but the receiver's lien for expenses incurred in rehabilitating, demolishing, or selling the vacant building, structure, or dwelling will not have priority over the lien of that judgment creditor or lienholder.

    Requires the court to appoint a receiver if the above provisions are satisfied, but allows to the court instead to allow an owner, mortgagee, or other person with an interest in the property to rehabilitate or demolish the property if that person meets three specified requirements. If that person is proceeding with due diligence or in compliance with the court-ordered schedule, the court may apply for immediate revocation of that person's appointment and for the appointment of a receiver. 

    Provides that upon the appointment of a receiver, all other parties are divested of any authority to rehabilitate, demolish, or sell the building, structure, or dwelling subject to the receivership. Any party other than the appointed receiver who actively attempts to rehabilitate, demolish, or sell the property may be held in contempt of court.

    Gives a receiver the right of possession with authority to: (1) contract for necessary labor and supplies for rehabilitation or demolition; (2) borrow money for rehabilitation or demolition from an approved lending institution or through a governmental agency or program, using the receiver's lien against the property as security; (3) manage the property after rehabilitation, with all the powers of a landlord, for a period of up to two years and apply the rent received to current operating expenses and repayment of outstanding rehabilitation expenses; and (4) foreclose on the receiver's lien or accept a deed in lieu of foreclosure.

    Gives a receiver the authority to sell the property under specified procedures. Requires that after deducting the expenses of the sale, the amount of outstanding taxes and other government assessments, and the amount of the receiver's lien, the receiver must apply any remaining proceeds of the sale first to the city's costs and expenses and then to the liens against the property in order of priority, with any remaining proceeds remitted to the property owner.

    Sets out the procedure under which a receiver may foreclose on the lien.

    Requires the receiver, after the court's ratification of the sale of the property, to sign a deed conveying title to the property to the buyer, free and clear of all encumbrances. Limits the tenure of a receiver to no longer than two years after the rehabilitation, demolition, or sale of the property. Allows any party to the receivership, any time after the rehabilitation, demolition, or sale of the property, to file a motion to dismiss the receiver upon the payment of the receiver's outstanding costs, fees, and expenses. 

    Allows the city to charge the owner of the building, structure, or dwelling subject to the receivership the lesser of an administrative fee of 5% of the profits from the sale of the building, structure, or dwelling or $100.

    Applicable only to cities with a population of 30,000 or more as of July 2013, according to the annual estimate of the Office of State Budget and Management, and with a majority of the corporate boundaries in a county with a Tier 1 or Tier 2 annual ranking as designated by the Department of Commerce under GS 143B‑437.08.

    Effective October 1, 2017, and applies to any nuisance per se described in new GS 160A‑439.1 that occurs on or after that date.