Bill Summary for H 573 (2017-2018)

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Summary date: 

Jun 7 2018

Bill Information:

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.

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Bill 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.