Nelson Mullins Riley & Scarborough

Since the North Carolina General Assembly adjourned after passing a budget and completing the majority of their work on June 18, 2011, legislators have since reconvened for four abbreviated sessions to handle a limited number of matters.  The most recent of these few-day sessions adjourned Tuesday, November 29.

Only a handful of legislation was considered in this session.  The legislature passed two largely non-controversial measures: H 796 which allows breweries to sell a broader scope  of beverages on their premises and S 224 to officially appoint some members to various statewide boards and commissions.  Additionally, the Senate passed SB 9, "No Discriminatory Purpose in Death Penalty," which was the final step necessary for that legislation to be sent to the Governor for approval.  This bill changes the way that death penalty cases may appeal their sentence on the basis of racial discrimination.  If the Governor does not sign or veto the measure in 30 days, it becomes law.  The House passed a resolution supporting the utilization of North Carolina businesses as vendors for the Democratic National Convention which will be held in Charlotte in 2012.  This resolution was a response to media and anecdotal reports that because of North Carolina's status as a "right-to-work" state, the Democratic National Committee was awarding contracts to unionized companies outside of North Carolina. 

In what was largely a ceremonial move, the House passed a measure to cap the state gasoline tax.  The bill requires Senate approval, and since that chamber adjourned hours prior to this passage, the legislation is stalled indefinitely. 

While the legislature was in town, a meeting of the Joint Legislative Commission on Governmental Operations was convened to receive various reports and approve several procedural consent items.  Of significance, the Commission received an update on the revenue collections through October for fiscal year 2011-12 which began July 1.  Dr. Barry Boardman, the lead staff economist in the General Assembly's Fiscal Research Division, reported that in the first four months of the fiscal year, revenues were approximately $115 million above the $6 billion projection.  Personal income tax collections are up 6.7 percent compared to the -0.2 percent they were down at this time last year.  Click here to view the full revenue report presentation.

In the same meeting, legislators heard from NC Insurance Commissioner Wayne Goodwin.  Commissioner Goodwin shared that his Department recently received clearance to spend the $12.4 million in federal grant money allocated to North Carolina to begin setting up infrastructure for the federally mandated health insurance exchange.  As a part of the federal Affordable Care Act, states are required to have a health insurance exchange marketplace for the uninsured and small businesses.  As a part of the requirement, if states choose not to accept grant monies to build and run the exchange, the federal government will step in and run it for them.  Commissioner Goodwin outlined the details of the fund allocations which will be primarily spent on staff, consultants, IT contracts and software.

In the 2011 long session, the House passed legislation creating the exchange, however, the bill was not taken up by the Senate.  State leaders in 26 states, including North Carolina, have filed challenges regarding constitutionality of the Affordable Care Act.  The Supreme Court is expected to hear the matter in 2012.  Commissioner Goodwin fielded questions regarding this situation, clarifying that the state will not be required to repay the grant monies if the Supreme Court rules the federal law unconstitutional.  He shared with legislators that the North Carolina must pass the law creating the exchange by June 30, 2012 to continue to receive federal money to set up the exchange.

The House and Senate are scheduled to reconvene for another abbreviated session on February 18, 2012.  Their regular session will reconvene on May 16, 2012.