A BILL TO BE ENTITLED
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 AMEND THE LAWS ON ALIMONY AND POSTSEPARATION SUPPORT FOR DEPENDENT SPOUSES.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 57D‑1‑03 reads as rewritten:
"§ 57D‑1‑03.  Definitions.
Unless otherwise specifically provided, the following definitions apply in this Chapter:
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(10)	Economic interest. – The proprietary interest of an interest owner in the capital, income, losses, credits, and other economic rights and interests of a limited liability company, including the right of the owner of the interest to receive distributions from the limited liability company.
(11)	Economic interest owner. – A person, including a special economic interest owner, who owns an economic interest but is not a member.
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(15)	Interest owner. – A member, an economic interest owner, or a special economic interest owner.
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(21)	Member. – A person who has been admitted as a member of the LLC as provided in the operating agreement or G.S. 57D‑3‑01, who was a member of the LLC immediately before the repeal of Chapter 57C of the General Statutes until the person ceases to be a member as provided in the operating agreement or G.S. 57D‑3‑02, or, with respect to a foreign LLC, a person who has been admitted as a member of the foreign LLC under the law of the jurisdiction in which the foreign LLC is organized until the person ceases to be a member under that law.
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(25)	Ownership interest. – All of an interest owner's rights and obligations as an interest owner in an LLC, including (i) any economic interest, (ii) any right to participate in the management or approve actions proposed by persons responsible for the management of the LLC, (iii) any right to bring a derivative action, and (iv) any right to inspect the books and records of or receive information from the LLC.
(26)	Person. – An individual or an entity.
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(32c)	Special economic interest owner. – A person who owns an economic interest and, as provided in G.S. 57D‑3‑02, has rights to information and to seek dissolution but is not a member.
…."
SECTION 1.(b)  G.S. 57D‑3‑02 reads as rewritten:
"§ 57D‑3‑02.  Cessation of membership.
(a)	A person ceases to be a member upon the occurrence of any of the following events:
(1)	The person does any of the following:
a.	Becomes a debtor in bankruptcy.
b.	Executes an assignment for the benefit of creditors under any applicable law.
c.	Has a general receiver appointed for the person pursuant to G.S. 1‑507.24 or has a trustee, receiver, or liquidator appointed for the person or for all or substantially all of the person's property.
(2)	In the case of an individual, the person's death or being adjudicated by a court of competent jurisdiction as incompetent to manage his or her person or property.
(3)	In the case of a member with an economic interest, the transfer or abandonment of the person's entire economic interest, excluding the liquidation of a member's economic interest in connection with the dissolution and winding up of the LLC under G.S. 57D‑6‑08(2), regardless of whether the transferee is or becomes a member.
(4)	The person abandoning all of the rights of his or her ownership interest except his or her economic interest, or any portion thereof.
(b)	Upon the occurrence of any of the events described in subdivision (1) of subsection (a) of this section with respect to a member, that person will automatically become an economic interest owner entitled only to the economic interest attributable to the person's ownership interest.
(c)	Upon the occurrence of either of the events described in subdivision (2) of subsection (a) of this section with respect to a member, 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 (i) the economic interest attributable to the member's ownership interest, (ii) the member's information rights as described in G.S. 57D‑3‑04, and (iii) the member's standing to seek judicial dissolution under G.S. 57D‑6‑02(2) or under an alternative remedy, if applicable, in the operating agreement.
(d)	Any person who ceases to be a member shall remain liable to the LLC for any obligation the person may have under G.S. 57D‑4‑02, 57D‑4‑06, and 57D‑6‑12(a)(2)."
SECTION 2.  G.S. 29‑19 reads as rewritten:
"§ 29‑19.  Succession by, through and from children born out of wedlock.
(a)	For purposes of intestate succession, a child born out of wedlock shall be treated as if that child were the legitimate child of the child's mother, so that the child and the child's lineal descendants are entitled to take by, through and from the child's mother and the child's other maternal kindred, both descendants and collaterals, and they are entitled to take from the child.
(b)	For purposes of intestate succession, a child born out of wedlock shall be entitled to take by, through and from:
(1)	Any person who has been finally adjudged to be the father of the child pursuant to the provisions of G.S. 49‑1 through 49‑9 or the provisions of G.S. 49‑14 through G.S. 49‑16.
(2)	Any person who has acknowledged himself during his own lifetime and the child's lifetime to be the father of the child in a written instrument executed or acknowledged before a certifying officer named in G.S. 52‑10(b).
(3)	A person who died prior to or within one year after the birth of the child and who can be established to have been the father of the child by DNA testing.
…."
SECTION 3.(a)  G.S. 50‑16.1A reads as rewritten:
"§ 50‑16.1A.  Definitions.
As used in this Chapter, unless the context clearly requires otherwise, the following definitions apply:
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(1a)	"Cohabitation" means the act as provided in G.S. 50‑16.9.
…."
SECTION 3.(b)  G.S. 50‑16.3A reads as rewritten:
"§ 50‑16.3A.  Alimony.
(a)	Entitlement. – In an action brought pursuant to Chapter 50 of the General Statutes, either party may move for alimony. The court shall award alimony to the dependent spouse upon a finding that one spouse is a dependent spouse, that the other spouse is a supporting spouse, and that an award of alimony is equitable after considering all relevant factors, including those set out in subsection (b) of this section. If the court finds that the dependent spouse participated in an act of illicit sexual behavior, as defined in G.S. 50‑16.1A(3)a., during the marriage and prior to or on the date of separation, the court shall not award alimony. If the court finds that the supporting spouse participated in an act of illicit sexual behavior, as defined in G.S. 50‑16.1A(3)a., during the marriage and prior to or on the date of separation, then the court shall order that alimony be paid to a dependent spouse. If the court finds that the dependent and the supporting spouse each participated in an act of illicit sexual behavior during the marriage and prior to or on the date of separation, then alimony shall be denied or awarded in the discretion of the court after consideration of all of the circumstances. Any act of illicit sexual behavior by either party that has been condoned by the other party shall not be considered by the court.
The claim for alimony may be heard on the merits prior to the entry of a judgment for equitable distribution, and if awarded, the issues of amount and of whether a spouse is a dependent or supporting spouse may be reviewed by the court after the conclusion of the equitable distribution claim.
(a1)	If the court finds that the dependent spouse engages in cohabitation at any time during the marriage until a decree of divorce, the court shall not award alimony. If the court finds that the supporting spouse engages in cohabitation at any time during the marriage until a decree of divorce, then the court shall order that alimony be paid to the dependent spouse.
…."
SECTION 3.(c)  G.S. 50‑16.2A reads as rewritten:
"§ 50‑16.2A.  Postseparation support.
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(d1)	If the court finds that the dependent spouse participated in an act of illicit sexual behavior, as provided in G.S. 50‑16.1A(3)a., during the marriage and prior to or on the date of separation, the court shall not award postseparation support. If the court finds that the supporting spouse participated in an act of illicit sexual behavior, as defined in G.S. 50-16.1A(3)a., during the marriage and prior to or on the date of separation, then the court shall order that alimony be paid to a dependent spouse. If the court finds that the dependent spouse engages in cohabitation at any time during the marriage until a decree of divorce, the court shall not award postseparation support. If the court finds that the supporting spouse engages in cohabitation at any time during the marriage until a decree of divorce, then the court shall order that alimony be paid to the dependent spouse.
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SECTION 4.  Section 1 of this act becomes effective October 1, 2023, and applies to requests for information and actions for dissolution commenced on or after that date. Section 2 of this act is effective when it becomes law, and applies to the estates of decedents opened on or after that date. Section 3 of this act becomes effective October 1, 2023. Except as otherwise provided, this act is effective when it becomes law.