Bill Summary for S 42 (2011-2012)

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Summary date: 

Jun 27 2012

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 42 (Public) Filed Tuesday, February 8, 2011
Intro. by Mansfield.

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Bill 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).