NC Weekly Legislative Update
Overview
Last week at the General Assembly budget negotiations continued, major legislation was on the move and committees were meeting on a busy schedule. The end of the state fiscal year looms over budget negotiations as chief budget writers struggle to deal with the likely absence of $450 million in federal Medicaid funding. A number of major bills were voted on in the House and Senate last week. On Tuesday, North Carolina voters completed the primary election with voting in a handful of primary runoffs. On Thursday, the General Assembly honored the national champion Duke University basketball team.
Negotiations between the House and Senate on the State Budget continued last week. It appears that lawmakers have reached agreement on the Education and Health and Human Services portions of the budget, the two largest sections, in order to complete their work on the budget. Inaction by the Congress on legislation that would bring North Carolina $450 million in Medicaid funding has complicated their work. Included in the budget is a set of budget reductions that would be effective if the federal funding is not approved. Publicly, legislative leaders are maintaining the current plans to vote on the state budget on Tuesday June 29, one day before the state fiscal year ends. Legislative leaders have indicated that if the budget is approved early this week, then the current session would end before July 15.
The Senate has approved a revised version of legislation (House Bill 1840) that would make permanent the authorization for the E-NC Authority, an organization that focuses on access to broadband internet in rural areas. The revisions approved by the Senate now include direction that the Revenue Laws Study Committee undertake a study on municipal authority to own and operate broadband internet services. Municipal broadband authority has been a topic of discussion throughout the current session and the Senate passed similar legislation (Senate Bill 1209) earlier this year. The latest move to revise House Bill 1840 to include the study sets up a standoff between the House and Senate on the issue because Senate Bill 1209 has stalled in the House. House Bill 1840 now awaits action by the House Rules Committee and Senate Bill 1209 awaits action by the House Ways and Means/Broadband Connectivity Committee.
The House passed revisions to the electronic recycling law last week (Senate Bill 887). Senate Bill 887 amends the state law that requires recycling of televisions and computers. The bill is a part of a multi-year effort to refine these laws and focuses mostly on provisions related to recycling of computers. Disagreement between major manufacturers Dell and Apple is resolved in Senate Bill 887. Other provisions allow for collection of fees that will fund the recycling program, education efforts to teach consumers about the new requirements, and aid local governments in their efforts to keep electronics out of landfills. Senate Bill 887 was approved by the House on Thursday and is scheduled for a final vote in the House on Monday.
The House also approved a sweeping reform (House Bill 1717) of the State Alcoholic Beverage Control (ABC) laws last week. House Bill 1717 would enact new ethics laws for the local ABC boards, empower the State ABC Commission to evaluate the efficiency of local ABC operations, and adopt new financial reporting requirements for local ABC operations. Many of the provisions have come in response to highly publicized allegations of conflict of interest and nepotism by local ABC board members and managers. House Bill 1717 now goes to the Senate, where review of the legislation has already begun.
Environmental laws were also a focus of work in the House this week. The House approved legislation (Senate Bill 836) that anticipates the arrival of oil from BP oil spill in the Gulf of Mexico. Senate Bill 836 removes the cap on oil spill clean up liability and calls for a study of North Carolina’s preparedness to deal with oil on the coast. In other action, the House has approved legislation (House Bill 1804) that calls for the Energy Policy Council to conduct a “green energy study.” After the House approved an amendment to the bill, the legislation now directs that the study include a more balanced review of the costs and benefits for energy efficiency efforts and to include an evaluation of the role of nuclear power in North Carolina’s energy future. Lastly, the House approved a bill containing “technical corrections” to environmental laws (House Bill 1801) and a bill (House Bill 1802) consolidating the environmental reports received by the legislative research division. These bills now go to the Senate for further action.
In the Senate last week, lawmakers approved a major revision (Senate Bill 1213) to the State Purchase and Contract laws. The Purchase and Contract laws detail the process of soliciting and reviewing bids from outside contractors and ultimately how the bids are awarded and overseen. Senate Bill 1213 would enact new authority for the Secretary of Administration to oversee contracts, require the Attorney General to review certain contracts and prohibit the use of cost plus percentage of cost contracts. Senate Bill 1213 now awaits action in the House.
The Senate also approved a resolution (House Joint Resolution 1907) that would confirm former Representative Lucy Allen as a member of the Utilities Commission. Representative Allen was appointed to the Commission before the current legislative session began and has already begun work pending her formal confirmation. After a unanimous approval by the Senate last week, Mrs. Allen is officially a member of the Utilities Commission.
In other news last week, members of the national champion Duke University basketball team were at the General Assembly on Thursday to be honored. Duke Coach Mike Krzyzewski received the honors on behalf of the team and made brief remarks before a rare joint session of the General Assembly. The 2010 NCAA Championship was Duke’s fourth national championship.
Outside of the legislative building and all across the state voters selected party nominees in a number of runoff elections. Secretary of State Elaine Marshall (D-Harnett) is the Democratic nominee to face US Senator Richard Burr (R-NC) in the General Election. Also, Republican voters selected nominees in a number of Congressional districts that are currently held by Democratic lawmakers. In Cumberland County, Democratic voters in the 21st Senate District chose Eric Mansfield to run in the General Election, a nomination that carries a strong advantage in the heavily Democratic district.
Committee Meetings
The Senate Judiciary I Committee spent much of last week working on legislation (House Bill 961) that would enact new “pay-to-play” regulations and alter the laws that govern lobbyists and lobbyists’ principals. After a false start that sent the bill to the full Senate last week, Senate leaders returned the bill to the Judiciary I Committee and approved an amendment that removed provisions authorizing publicly financed campaigns for numerous statewide offices. Even after removing those provisions, the committee continued to debate other provisions of the bill. These include the pay-to-play regulations that prohibit certain state agency decision-makers from soliciting campaign contributions or gifts from those persons seeking to do business with the agency and changes to the way that lobbyists and lobbyists’ principals must report compensation to the Secretary of State.
The Senate Transportation Committee met in the afternoon on Thursday and approved legislation (House Bill 1729) that includes a number of changes to the state’s motor vehicle laws. Among these provisions are new requirements that motorists “move over” or slow down when passing utility service vehicles that are parked along roadways and showing an amber colored light. This provision is an addition to the “move over” law that already requires motorists to slow down or switch lanes when passing law enforcement officers.
Last week, the House Judiciary III Committee continued work on legislation (Senate Bill 372) that would drastically alter the standard for showing a nuisance violation. The bill was met with tough questions from committee members who were concerned with the authority for seizing private property that comes with establishing a nuisance violation. The bill was not voted on because the committee wants to conduct additional work on the legislation.
The House Environment Committee met on Tuesday and Thursday last week and considered legislation (House Bill 1870) related to safe artificial slope construction. House Bill 1870 would require local governments to adopt ordinances to regulate construction of artificial slopes, direct the Sedimentation Control Commission to assist in this effort by developing a model ordinance, and provide for disclosure to purchasers of properties that are in steep slope areas. Slope construction and its environmental impact is a hotly debated issue in North Carolina’s mountains where the public is divided over how to balance the competing interests of development and environmental protection. House Bill 1870 now goes to the House Finance Committee for further action.
The Senate Agriculture/Environment/Natural Resources Committee is struggling to broker an agreement on legislation (Senate Bill 1170) that would call for new regulation of river basin modeling and access to water resources. Disagreement between business and environmental interests stalled the legislation’s progress this week as the committee took no action on the bill. Local governments, utilities and businesses, and environmental advocates follow water resource issues closely every year at the General Assembly. Also, access to water has been the subject of litigation between North Carolina and South Carolina because much of western South Carolina is down stream from North Carolina’s mountains and Charlotte, North Carolina’s largest city.
The House Finance Committee met with a full agenda last week. The Committee adopted a revised version of legislation (Senate Bill 1216) that would extend the Emergency Foreclosure program. Under the revisions, the program would continue into 2013 and apply to all home loans. The original authorization for the program was set to expire in November of this year and applied only to high rate spread loans, commonly referred to as “sub-prime” loans. Senate Bill 1216 is a part of a multi-year effort to reform North Carolina lending laws and to cope with the high rates of foreclosure experienced in the wake of the financial crisis of 2008. Senate Bill 1216 is scheduled for a vote by the full House on Monday. The House Finance Committee advanced about a dozen other proposals this week as well, including technical corrections to the tax law (Senate Bill 1177) and approval for UNC to use funds collected on campus finance construction projects (Senate Bill 1154).
Looking Ahead
The General Assembly is on the doorstep of ending the 2010 session. This week look for the conference report on the State Budget (Senate Bill 897) to be put to a vote in both the House and Senate. Lawmakers are working on a tight deadline as the end of the state fiscal year approaches on Wednesday June 30. If the deadline is met and the budget is passed this week, look for lawmakers to start a downhill sprint to the adjournment of the 2010 session. Lawmakers will have to sort through and prioritize the dozens of bills still eligible and being considered for passage this year.
Upcoming Meetings
Monday, June 28, 2010
- 7 PM - House and Senate Session
- After session House Committee on Ways and Means/Broadband Connectivity
Tuesday, June 29, 2010
- 10 AM - House and Senate Judiciary Committees
- 11 AM - House Insurance Committee
- 11 AM - House Education Committee
- 12 PM - Senate State and Local Government Committee
- 2 PM - House State Government/State Personnel Committee
Wednesday, June 30, 2010
- 10 AM - Senate Education/Higher Education Committee
- MIDNIGHT - State Fiscal Year Ends
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.