A BILL TO BE ENTITLED
AN ACT to direct the legislative Research Commission to study methods by which contractors and subcontractors would give notice to lien agents upon receipt of payment in full.
The General Assembly of North Carolina enacts:
SECTION 1.  The Legislative Research Commission shall study mechanisms by which any potential lien claimant (PLC) who has provided a notice to the lien agent would be required to notify the lien agent within 10 days of receiving payment in full for the labor, materials, rental equipment, or professional design or surveying services furnished by the PLC. The LRC may examine use of the existing online system as a method for notification, but shall also examine other methods. The LRC shall also consider the consequences of failure to comply with the notification request and the extent to which the notification may be relied upon for purposes of title work.
SECTION 2.  This act is effective when it becomes law.