Weekly Legislative Update
Overview
Lawmakers returned to Raleigh on Monday this week to hold a rare Joint Session of the General Assembly where Governor Bev Perdue's (D-Craven) appointments to the State Board of Education were unanimously confirmed. The State Budget continues to languish in a conference committee appointed to negotiate differences between the House and Senate versions of the budget legislation. This week lawmakers extended the temporary budget authority through the 31st of July in place of a formal State Budget. Although progress on the budget is stalled other legislation was advanced through the process this week in a highly productive week of work at the North Carolina General Assembly.
Negotiations between the House and Senate show only a few signs of producing a compromise bill that could pass both chambers of the General Assembly. Officially in a conference committee for a month now, the tax and spending provisions of legislation (Senate Bill 202) that would enact the 2009-2011 State Budget are the subject of the ongoing disagreement between the House and Senate. Most observers continue to believe that the detailed spending plan could be quickly agreed to if only the House and Senate tax code writers could agree on how to raise the $18.9 billion needed to fund the budget. Few details are known about which specific provisions are the sources of the disagreement. It is equally likely that deep seeded philosophical disagreement between the House and Senate leaders is the cause of the stalemate rather than any one or two tax provisions.
With the impasse, lawmakers have approved and Governor Perdue signed into law legislation (House Bill 1504) to extend a temporary continuing budget authority. House Bill 1504 was enacted on Wednesday, the day a similar prior extension expired. The new "continuing resolution" allows for the spending of State funds through July 31. Legislative leaders hope to have completed work on the formal State Budget by then. If a budget is not adopted lawmakers would have to continue to extend the budget authority or the lack of a budget would stop the expenditure of non-essential state spending. House Bill 1504 maintains the current state tax structure and allows for spending at 84% of last year's level.
Dozens of significant bills received action by the chambers of the General Assembly this week. On Tuesday, the House approved legislation (House Bill 1305) to reform the "Beach Plan," the insurance administration designed to act as an insurer of last resort for coastal properties. Proponents of the legislation defeated an attempt to amend the bill prior to its passage by an overwhelming margin. The proposed amendment would have increased the value of properties that the Plan would have to cover and increase overall liability under the plan. The final vote on the bill was 99-23. The bill now goes to the Senate where Senate President Pro Tempore Marc Basnight (D-Dare), himself a resident of North Carolina's coast, will play a crucial role in shaping the outcome of the bill.
Much of the House session on Tuesday and Wednesday this week was consumed with passage of the "North Carolina Racial Justice Act" (Senate Bill 461). This bill sets up an appeal procedure available to defendants in death penalty trials and death row convicted inmates for the purpose of showing that seeking or imposing the death penalty was racially based. If the defendant or convict can prove the racial bias claim as required in the bill, the sentence would automatically be converted to a life term without parole. Debate was tense on the House floor as the members debated the bill that encompasses two of the most sensitive issues in North Carolina politics today: race and capital punishment. In recent years, North Carolina's death penalty procedures have been the subject of protracted litigation and a failed attempt to enact a legislative moratorium on executions. Senate Bill 461 now returns to the Senate for consideration of the House changes.
A bill (House Bill 1389) that would allow cities and counties to finance energy improvements with assessments on property owners was approved by the House and sent to the Senate this week. In related action, the House gave final approval to legislation (Senate Bill 304) that would raise the cap on the size of State projects that can be financed through the energy savings contracts program. Still other action on energy issues included an aborted attempt to pass legislation (Senate Bill 1068) that would allow for permitting and citing of energy generating wind turbines on the coast. Senate Bill 1068 was sent back to committee for consideration of a proposed amendment related to allowing turbines to be located on the tops of mountains that are currently protected by the State Ridge Law.
The General Assembly sent to Governor Perdue legislation (Senate Bill 1017) that enacts protections from identity theft, including new guidance and requirements for Registers of Deeds who publish on the internet documents that contain personal information. With House approval this week, Governor Perdue will also receive legislation (House Bill 1185) that would give habitual drunken drivers a chance to have their license reinstated after ten years of good behavior. Changes (Senate Bill 877) to the law governing how health insurers can modify contracts with their insured customers were also approved by the House this week and now goes to Governor Perdue for executive action.
Legislation (House Bill 1228) to repeal the Alcohol Beverage Control Commission's authority to make rules requiring a waiting period to join private clubs was given tentative approval by the Senate this week. Submission of a Republican sponsored amendment delayed the final vote on the bill, which is currently scheduled for Monday evening's session. In related action, grocery stores and markets would be allowed to have a special permit to conduct tastings of specialty beers under legislation (House Bill 1595) approved this week.
Changes to the Certificate of Need law (Senate Bill 804) were approved by the House this week but Senate action was delayed at the request of primary bill sponsor and Majority Leader, Senator Tony Rand (D-Cumberland). The House gave final approval to legislation (House Bill 1134) that would allow prevailing plaintiffs to recover attorney fees from governments in actions to compel disclosure of public information. House Bill 1134 now goes to the Senate for action in that chamber. It would become more difficult for public condemnors to claim a right to land held as a conservation easement under legislation (Senate Bill 600) that requires a showing of a lack of a "prudent and feasible alternative." Senate Bill 600 now returns to the Senate for concurrence.
The House approved legislation (Senate Bill 660) that would allow for an alternative method of calculating damages in auto accidents by the diminution of value caused by the accident. Senate Bill 660 now returns to the Senate for further action in that chamber. Legislation (Senate Bill 755) designed to promote the use of compensatory mitigation banks, an insurance concept for environmental cleanups, under the ecosystem enhancement program was given final approval this week and sent to Governor Perdue. A bill (House Bill 1222) updating North Carolina's rate spread and high-cost home loans statutes was given Senate approval this week and is heading back to the House for consideration of the Senate changes. Also approved this week on the first of two votes, was legislation (House Bill 1159) requested by the Department of Insurance to make various updates and technical changes to the insurance licensing laws.
Committee Action
Committees of the General Assembly were actively meeting and advancing legislation this week.
A Thursday meeting of the House Environment committee advanced a revised version of legislation (Senate Bill 1004) that would extend the timeline for compliance with the Clean Smokestacks Act. The new version of the bill includes those provisions and others that would allow for recovery of the costs of "carbon offset facilities" that displace existing fossil fuel facilities and that bring coal ash ponds under regulation of the Department of Environment and Natural Resources. The redrafted bill was approved by the committee and awaits scheduling by the House leadership.
The House Water Resources and Infrastructure Committee continued its consideration of legislation (Senate Bill 967) that would create a public trust to compete in the relicensing process before the federal regulatory commission against aluminum manufacturer Alcoa. The Committee's next meeting has been cancelled and the future of the bill is in doubt.
In the House Commerce Committee this week, approval was given to a new version of a bill (Senate Bill 882) that creates a 12 year statute of repose for product liability actions. The bill, a compromise position between plaintiffs' attorneys and businesses, now goes to the House Judiciary I Committee for further review.
The House Energy and Energy Efficiency Committee approved a version of House Bill 1440 that would authorize a legislative study on "feed-in rates," rates paid to producers of renewable energy.
In the Senate Commerce Committee this week, legislation (Senate Bill 516) requiring licensure of Community Association Managers was given approval. The Bill now goes to the Senate Finance Committee for further action.
At a Thursday meeting of the House Insurance Committee, the Committee gave its approval to a bill (House Bill 1183) that would enact miscellaneous changes to the Insurance laws at the request of the Department of Insurance. House Bill 1183 now awaits scheduling by the House leadership.
Upcoming Meetings
Monday, July 20, 2009
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7 PM - House and Senate Session
Tuesday, July 21, 2009
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8:30 AM - House Appropriations Committee
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10 AM - House and Senate Judiciary Committees
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11 AM - Senate Commerce Committee
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11 AM - House Education Committee
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12 PM - House Health Committee
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2 PM - House State Government/State Personnel Committee
Wednesday, July 22, 2009
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11 AM - Senate Health Care Committee
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12 PM - Senate Select Committee on Employee Hospital and Medical Benefits
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.