North Carolina Sen. Sawrey’s bill on special economic interest owners in LLCs passes House and Senate

Passed bill sponsored by State Sen. Benton G. Sawrey seeks to establish rights and responsibilities for special economic interest owners within limited liability companies and address their access to information and judicial dissolution, according to the North Carolina State Senate.

In the House, 46 Democrats and 64 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 17 Democrats and 28 Republicans voted in favor of the bill.

Sawrey filed the bill in the North Carolina Senate on March 17 during the 2025 regular session.

The legislation, known as SB 307, was passed on June 25 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text was formally listed with the short title: “Info. Rights of Estate/Death of LLC Member.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends North Carolina statutes to establish special economic interest owners within limited liability companies (LLCs). It defines these owners as individuals who possess an economic interest without being members of the LLC. These individuals are granted the right to access information and seek judicial dissolution of the LLC. The bill outlines the conditions under which a person ceases to be a member, such as bankruptcy, death, or incompetence, and becomes an economic interest owner. It also extends economic interest rights to the estate of deceased or incapacitated members and mandates that former members remain liable for any obligations they had to the LLC. The act becomes effective Oct. 1, 2025, applying to information requests and dissolution actions commenced on or after this date.

The bill was sponsored only by Sen. Benton G. Sawrey (Republican-10th District).

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Sawrey graduated from North Carolina State University in 2009 with a BA and again in 2013 from University of South Carolina School of Law with a JD.

Sawrey, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 10th Senate district, replacing previous state senator Brent Jackson.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.