Weekly Legislative Overview - August 26, 2005
Lottery Legislation Still Alive?
House Speaker Jim Black refused to concede that a lottery is dead for this year, just hours after the Senate failed to swing the single needed vote to approve the game and all but adjourned.
This year's session of the General Assembly now appears likely to continue into next week, with the Speaker telling House members to plan to meet through Tuesday. The Senate is holding skeleton sessions until the House adjourns and has no bills calendared. Senate leader Marc Basnight (D-Dare), said the bills approved and sent to the House around 6:30 a.m. Wednesday would be the final legislation acted on in 2005. "We're full. We're finished," he said. Basnight spokeswoman Amy Fulk added that the only further action by the Senate would be to approve a House-amended adjournment resolution. The adjournment maneuvering caused some lobbyists to speculate that House leaders are trying to revive lottery legislation before leaving town. But Black said his chamber needs to take a long look at the omnibus technical corrections bill (House Bill 327), which contains some substantive changes to the law.
The House also is considering several bills that would allow as many as 48 North Carolina counties to hold referenda on increasing local sales taxes. Representative Bill Daughtridge (R-Nash), was helping to shepherd the legislation through committees and onto the House floor, but even he acknowledged that there might be no point to it. Senate leaders say they won't take up any more legislation this year. House Speaker Jim Black (D-Mecklenburg), said the legislation would be voted on before the House adjourns. He said he also isn't convinced that the Senate wouldn't act on the bills. Black acknowledged that the local-option sales tax legislation is one way to help local government pay for school construction in the absence of a lottery. He said he hopes the Senate would reconsider the lottery and predicted that public pressure on opponents might increase over the weekend. "I don't think it has dawned on the public yet that we might not have a lottery, and that every day we don't we lose a million dollars," Black said, referring to the revenue loss from North Carolinians playing the lottery in other states. The Senate failed to bring a lottery bill to a vote when the 26 opponents in the 50-member chamber refused to budge.
Methamphetamine Legislation Idle
The House, meanwhile, still hasn't acted on compromise legislation that would require all or some forms of pseudoephedrine to be sold behind the counter at drug stores. The legislation is an effort to curb the production of illegal methamphetamine. After meeting until 4 a.m. Wednesday, the House met just briefly in the afternoon, approving a single bill.
County Legislation
Early Wednesday morning, a ½% sales tax for Haywood County was adopted by the House. This bill contains a six-year sunset and is specifically for the benefit of the local community college. Two other sales tax bills passed third reading in the House Thursday morning, one affecting 4 counties and the other 12. A fourth bill will be considered in the House next week and affects 31 counties. Forsyth County was deleted from this bill by a floor amendment on Thursday.
Senate Bill 868, permitting certain counties to join together to jointly develop industrial parks utilizing William S. Lee credits to which the member of the less affluent county (Tier One) would be entitled, has been ratified. The affected counties are Granville, Warren, Vance and Franklin. Tracts of land in each county are currently under option, and the legislature earlier appropriated $4 million to assist the project.
An item of legislation which could be significant to some counties which have suffered job losses due to closing of textile and furniture mills is House Bill 474. A companion Senate bill failed to move, but this bill has passed the House and has been referred to the Senate Finance Committee. The bill would permit something similar to the historic tax credit for old mill structures which are suitable for redevelopment.
House Bill 1413 (Enhance Local Government Administration of Environmental Programs) contains a provision allowing local governments to enter to a memorandum of understanding with the Department of Environment and Natural Resources to inspect sludge fields and to charge a fee for such inspections. The bill has been referred to the Senate Agriculture and Environment Committee.
Street Gang Legislation in Doubt
Representative Mickey Michaux has campaigned the entire session for assistance in fighting the growth of gangs. He obtained a $2 million appropriation earlier in the session, and fought hard for House Bill 50 (Street Gang Prevention Act). His bill has passed the House, but is now resting in the Senate Appropriations Committee where it will not be acted upon unless the Senate returns to session.
Planning/Zoning Legislation Adopted
The Homebuilders Association and various interested member companies took an active part in revising Senate Bills 814 and 518 dealing with local planning and zoning laws. After months of work, the two bills reached consensus status and were adopted early Wednesday morning when the Senate concurred in various changes made in the House with the consent and participation of its sponsor, Senator Dan Clodfelter. Senate Bill 814, among other things, will permit pre-sale agreements in certain instances legitimizing a necessary and long standing practice which had been called into question by the North Carolina Real Estate Commission.
Electronic Recording Bill Passes
A bill of special interest to Registers of Deeds was passed late Tuesday or early Wednesday. Senate Bill 671 (Real Property Electronic Recording) was amended to add the provisions of another bill designed to revise the Notary Public laws and implement electronic notaries to a bill which originated in the General Statutes Commission to facilitate the use of electronic recording. The bill was developed over a period of one year after many meetings between the Registers of Deeds, Bankers Association, Secretary of State, Archives, Land Title Association, North Carolina Bar Association Real Property Section and various interested vendors. The bill has been ratified and is expected to be signed by the Governor very soon.
Lobbying Laws Amended
The General Assembly gave final legislative approval early Wednesday morning to a rewrite of state lobbying rules (Senate Bill 612) that requires more disclosure of expenses to influence legislators and top executive branch officials. The compromise between competing House and Senate bills largely follows the House version, which requires lobbyists and their principals to report any expenditures above $10. Legislative lobbyists, including those employed by state agencies, would have to file monthly reports while the General Assembly is in session starting in 2007, and quarterly reports the rest of the year. The measure, which now heads to Governor Easley for his signature, also eliminates the so-called "goodwill" loophole that has allowed for undisclosed spending on entertaining legislators as long as no specific legislation was discussed.
Workers' Compensation Legislation Ratified
A compromise between industry lobbyists and advocates for injured workers resulted in the overwhelming approval by the House of a workers' compensation reform bill late Tuesday. House Bill 99 was concurred in by a vote of 101-9 and makes several changes to the current workers' compensation law. The bill defers most of the controversial issues -- including the length and coverage of wage and medical payments, whether compensation rates for injuries should be adjusted for inflation and compensation for workers exposed to asbestos -- to a study commission that is to report back the General Assembly next spring. Among the changes contained in the bill are:
The bill was sent to the Governor for signature.
Senate Bill 319 (Workers' Comp. Self-Insurance Security), introduced by Senator Clodfelter, was debated and amended in the House Insurance Committee on Tuesday morning, passed the House Tuesday night, was concurred in by the Senate early Wednesday morning, and was sent to the Governor.
Identity Theft Bill Ratified
Senate Bill 1048, sponsored by Senator Clodfelter, enacts North Carolina's Identity Theft Protection Act of 2005. The bill was ratified and presented to Governor Easley on August 23. Indications are the Governor will sign the bill.
The House amended Senate Bill 1048 on August 22. The amendments inserted the term "employer taxpayer identification numbers" into the definition of "identifying information" as it is applied to Section 6 of the bill. The amendments clarify what types of personal information are to be excluded from the security breach, provision such as electronic identification numbers, electronic mail names or addresses, Internet account numbers, Internet identification names, parent's legal surname prior to marriage, or a password unless this information would permit access to a person's financial account or resources". Finally, the amendments clarify what identifying information is permissible for State agency to intentionally communicate or make available to the general public. Personal information "shall not include electronic identification numbers, electronic mail names or addresses, Internet account numbers, Internet identification names, parent's legal surname prior to marriage, or driver's license numbers appearing on law enforcement records."
Budget Technical Corrections Awaits Consideration
Early Wednesday, the Senate committee substitute to House Bill 320 (Budget Technical Corrections) passed the Senate and was sent to the House. Section 3 of this committee substitute would amend Senate Bill 62, Section 6.29 (Health Benefit Plan Co-Payments) by changing the effective date of this provision to March 1, 2006 and by amending the provision to prohibit a co-pay from being charged to an insured for chiropractic services that is higher than the co-pay charged to an insured for primary care physician services for a comparable (was, the same) medically necessary treatment or condition. The bill is on the calendar for consideration by the House on Monday, August 29.
Securities Bill Presented to the Governor
Senate Bill 290 (Transfer on Death), introduced by Senator Hoyle, was heard in the House Finance Committee on Tuesday morning and passed by the House early Wednesday morning without amendment and was sent to the Governor.
Technical Corrections Act Uncertain
The current version of the Technical Corrections Act (House Bill 327), passed by the Senate but pending in the House, includes an omnibus amendment adopted early Wednesday morning, including a number of both technical and substantive provisions. One technical provision clarifies a bill passed earlier in the session involving the requirement that owners of dogs seized for illegal fighting post a deposit. The corrective provision would clarify the ability of the operator of animal shelters to utilize and enforce the provisions of the bill.
Another provision of the House Bill 327 would make permissive the purchase of motor vehicle records from the Department of Motor Vehicles by insurance companies, thus lessening the impact of a fee increase from $5 to $8 contained in the budget.
Also in House Bill 327 is a provision that would assure the newly opened hospital in Huntersville, North Caroline could remain open and operating during the pendency of any litigation over the CON issued to the hospital. Passage of House Bill 327 remains in doubt as the House is looking at many of the Senate amendments to the bill. If the House objects to any portion of the bill and the Senate does not return, the bill will be on hold until next May.
Studies Act of 2005
Among the Legislative Research Commission studies authorized in House Bill 413, passed by the House but not yet considered by the Senate, is a study of cost control of medical services for persons in local confinement facilities. House Bill 1402 (Medical Charges for County Prisoners) would have capped medical costs at the Industrial Commission reimbursement rates, but the study is expected to further develop efforts by the affected parties to address a number of issues including a default cap of the cost of such services, clarification of the custody/responsibility and prompt pay.
Other studies authorized are:
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exempt builders incentives from property tax increases (Senate Bill 508 – Dalton);
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eminent domain (Sherrill);
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impact of regulation on the cost of housing (Hoyle);
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transferring the Deferred Compensation Program from the Department of Administration to the Department of State Treasurer (Rand);
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Chapter 24 exemptions (Brubaker);
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- consumer credit counseling (Dorsett).
The Joint Legislative Health Care Oversight Committee is authorized to study among other things:
The Joint Legislative Utility Review Committee is authorized to study among other things:
The Revenue Laws Study Committee is authorized to study among other things:
Additionally, there are numerous free-standing study commissions authorized by House Bill 413. Among them are:
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House Select Study Commission on a Mandatory Cost-of-Living Increase for Retirees of the Teachers' and State Employees' Retirement System (House Bill 1653 – B. Allen, Coleman, Farmer-Butterfield, Faison);
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Study Commission on Alternatives to State Health Plan for the University of North Carolina (House Bill 775 – Earle, Insko, Kinnaird);
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Study Commission on State Construction Inspections (Owens);
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Study Commission on State Disability Income Plan and Other Related Plans;
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Continue UNC Board of Governors Study Commission;
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Joint Legislative Commission on Health Insurance Accessibility (Kerr);
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Study Commission on Elimination of County Financial Participation in Medicaid Services (Rand);
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Legislative Study Commission on Deferred Deposit Transactions (Senate Bill 947 – Holloman, Culpepper);
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Legislative Study Commission on Information Technology (Malone);
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Study Commission on Economic Development Infrastructure;
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Legislative Study Commission on State Government Efficiency;
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Study Mitigation of Potential Flooding in Certain Areas (House Bill 24 – Gillespie, Goforth, Rapp);
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Study the Organization of the General Court of Justice into Districts and Divisions (Senate Bill 173 – Bingham);
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State Fair Housing Act Study (Kinnaird);
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Legislative Commission on Patient Safety (House Bill 1334 – L. Allen, England, Rapp);
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Study of Rate-Setting Methodology for State-Funded Kidney Dialysis (House Bill 1725 – Earle);
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Study of a Renewable Energy Portfolio Standard for North Carolina (Albertson, Kinnaird).
Obviously, if the legislature attempts to approve members to and provide staff for all these study commissions, they will be able to do nothing but meet and study until May 6, 2006!
Adjournment?
Finally, the Senate adopted Senate Joint Resolution 1184 (Adjournment Resolution) setting August 24 as the adjournment date for the 2005 Session of the North Carolina General Assembly. That resolution was sent to the House, and obviously the House has not adopted it. In order to adjourn sine die, both chambers must adopt the resolution. When will that date be? Stay tuned.
Bill Tracking / Bill Texts
If we are monitoring specific bills for you, we will forward this week's current list of legislation under separate cover. To access printed copies of any of the bills listed in this report, you may simply click on the bill number, and you will be directed to the bill's summary on the North Carolina General Assembly's website.
