Inside this issue: Second Mile campaign exceeds $150,000... NCCBI hosts luncheon for NCCBI chairman...Legislative Conference on May 12 is NCCBI's next big event... NCCBI joins major tax case before Court of Appeals... Young Executives Forum to meet April 23... Welcome our new and returning members... Wilmington leaders host reception for NCCBI... U.S. Chamber offers tax tips for small businesses... Randolph County officials plan innovation conference... Names in the News... J-DIG cited in three additional relocation deals... Murphy-Brown praised for environmental actions... Are your employees registered to vote?... Strong sales tax receipts push state budget into black...Treasurer sells largest bond issue in state history... N.C. courts rank 19th nationally in fairness...


Overflow crowd witnesses stronger
NCCBI at successful annual meeting

An overflow crowd of members and guests witnessed one of NCCBI’s most successful annual meetings in several years on March 17 and saw a reinvigorated association focused like a laser beam on its new three-pronged agenda. At several points during the event, members were reminded that NCCBI’s top priorities are promoting economic development and new jobs, lowering corporate and personal income tax rates, and improving government efficiency.

That message seemed to resonate with the luncheon audience whose sheer size strained the abilities of the Raleigh Civic and Conference Center. About 1,000 were expected to attend the luncheon but 1,300 actually came, prompting a scramble to set up additional tables and bring in more food. Similar scenes occurred after lunch when staff rushed to set up additional seating for standing-room-only crowds at the two afternoon seminars.

NCCBI’s pro-growth, pro-jobs message even struck a chord with the keynote speaker, Bob Johnson, the owner of the Charlotte Bobcats, the new NBA basketball team in Charlotte. The long-time resident of Washington, D.C., who is believed to be America’s first black billionaire, said that if NCCBI succeeds in cutting North Carolina’s corporate and personal income tax rates, he would make Charlotte his permanent residence. “Get it down and I’m here,” he said to loud applause.

IBM executive Barry Eveland of Cornelius and RTP (right) succeeded Sue W. Cole of Greensboro, the U.S. Trust Co. executive, as NCCBI’s top volunteer leader for the year ahead. Biltmore Company Executive Vice President Steve Miller of Asheville moved up to the first vice chair spot and Graham Denton of Charlotte, the Bank of America North Carolina president, became second vice chair. Cary insurance broker Steve Zaytoun remains treasurer of the association. Salisbury native Phil Kirk remains president and secretary. Read the bios of all the new NCCBI officers.

During its annual business meeting, the board of directors heard a year-end financial report from Zaytoun and approved a budget for the association as recommended by the Finance Committee. The budget projects total revenue of about $2.9 million for the year. House Speakers Jim Black (D-Mecklenburg) and Richard Morgan (R-Moore), as well as Senate President Pro Tem Marc Basnight (D-Dare) briefed the board on issues pending before the General Assembly.

A slew of top government officials attended the annual meeting, including Gov. Mike Easley who praised NCCBI during extended comments at the luncheon. Also present were Lt. Gov. Beverly Perdue, who led one of the afternoon seminars, Supreme Court Chief Justice I. Beverly Lake Jr., other judges, several Cabinet secretaries and dozens of legislators. U.S. Sen. Elizabeth Dole strolled through the Expo trade show during the evening reception and spoke to many members. Bert Collins of Durham, the N.C. Mutual Life Insurance Co. executive who received the Citation for Distinguished Citizenship award, and retired Supreme Court Justice Burley Mitchell Jr. of Raleigh, who received the Citation for Distinguished Public Service award, were effusive in their thanks to NCCBI. The texts of their citations are reprinted below.

Annual meeting events began the evening beforehand with the Chair’s Reception at the N.C. Museum of Art. Several new members of the board of directors attended an orientation meeting, followed by a reception at which drawings for prizes were held to reward board members for recruiting new members. Special recognition was extended to directors who brought in the most new members, including Bradley Thompson, who brought in 20 new members; Steve Parrott (17); Graham Denton (14); Kelly King (10); David Sink (9); Louise McColl (9); Linwood Davis (8); Glenn Jernigan (6); Steve Miller (6); and Bruce Biggs, Mike Coltrane and Doug Stafford, who each recruited 5. These totals are through March 16. The membership campaign and the fiscal year ends March 31 and a final report will be available in a couple of weeks.


Remarks by Sue Cole concluding her year as NCCBI chair
It has been an honor to serve as your chair. I can never sufficiently thank Phil Kirk and the NCCBI staff for what they do every single day to make this organization run smoothly. We are indeed fortunate to have such strong and capable people at the helm of our organization. My thanks also go to fellow members of the board and Executive Committee. It’s been a pleasure to meet and work with so many business and community leaders across this state.

During the past year I carried on the idea started by my predecessor, Jim Hyler, to fully involve the top officers. Barry Eveland and the other officers were always willing and able partners, enabling us to hit the ground running with our agenda. Using the ageless adage, “plan your work and work your plan,” we developed a set of overriding priorities that would help focus NCCBI’s energies and resources. Through several special meetings and communications with Executive Board members, we identified and adopted three key external strategies for NCCBI. They are a fairer tax system, improved economic development, and more effecient government operations.

This year NCCBI has moved aggressively in each of those areas. For example, reduction of the state’s corporate income tax – third highest in the Southeast – and personal income tax – 8^th highest in the country – now loom larger on the radar screen for the Governor and legislative leaders. NCCBI has been adamant in its advocacy for improvements in the area of economic development. North Carolina has been hit harder by business closings – textiles and technology – and job losses than almost any state in the country. It’s been a wake up call for the General Assembly, the governor and all of us. I’m confident that by working together we will come roaring back by investing in proven winners and business incentives like the One North Carolina Fund.

NCCBI’s toughest challenge may be sparking more efficiency government operations. It is a challenge worth taking. Poorly run government operations affect the bottom line for each of your companies and your employees. Jim Hyler, Bill Coley and other NCCBI members got the ball rolling a year or so ago as members of the Governor’s Efficiency Commission. They issued a detailed report with 75 recommendations for improving government operations. Jim and Bill are co-chairs of the Business Council for Fiscal Reform which the governor appointed to follow up on those recommendations. As these issues begin to unfold I hope you will lend your support to NCCBI’s efforts to improve services and maximize the use of the state government’s limited resources.

The same holds true in the areas of a fairer tax system and improved economic development. You drive the success of this organization. Your one-on-one contacts with legislators, your membership on committees and your financial support make the difference. The legislators want to hear from the business community. As the voice of business, we at NCCBI will continue our work but we need each of you to let your local legislators know what is important to you. Use our resources, such as our web site, weekly legislative bulletins, magazine and committee structure to stay informed and to communicate your perspective. On behalf of NCCBI, let me say that we appreciate your input, your involvement, and your financial support through membership, advertising in our magazine, second mile and sponsorships of various programs and events.

And there is one more thing that I ask you to support. North Carolina has an important constitutional amendment on the ballot in November. “Amendment One: Self-Financing Bonds is a tool that has been used in 48 other states as a catalyst for the development for hundreds of millions of dollars of commercial and industrial building facilities and the creation of jobs. There is information in your program about this issue. NCCBI is playing a leadership role in getting this measure approved by the voters. Barry Eveland is serving as one of the campaign co-chairs and Graham Denton is serving as financial chair. We hope that all of you will get involved in this important effort.

I thank you for the opportunity to serve NCCBI. It’s been a great privilege to represent you.


Remarks by Barry Eveland beginning his year as NCCBI chair
Thank you, Sue, for a great year. You have provided tremendous leadership, energy and focus to NCCBI. I have really enjoyed working with Sue this year. As the old saying goes, behind every successful woman is a man, and I’m that man.

As she mentioned, Jim Hyler, and then Sue, fully involved the NCCBI officers. During her term, Sue started what we’ve come to call the three-year priority plan to help keep our business climate strong. We intend to modify this plan every year to reflect current events – but we’d like it to be a three-year horizon so that we have a consistent set of objectives in front of us from one year to the next. Sue mentioned our three top priorities. These priorities focus on economic development and jobs, efficiency in government, and reductions in both corporate and personal income tax rates.

The executive committee and the board of directors together with the NCCBI staff have developed detailed action plans to address each priority – and we will focus on implementation this coming year. In addition to the three external priorities, we’ll continue to focus on internal governance, with several goals in mind:

 Continue to grow the membership base.
 Reach out to you, our members, to hear what you think.
 Involve our board of directors more fully.
 And partner with other organizations to achieve mutually beneficial goals.

I had the opportunity to visit with many of you over the past year at a good number of area meetings. I found that experience to be invaluable in getting to know many of you and to listen to your priorities. We’ll do that again this year. I’m very much looking forward to visiting with all of you. It is my great fortune to represent you as chairman – and I am most appreciative. I will do my best to serve NCCBI in an exemplary fashion.

Second Mile campaign exceeds $150,000
Members set a new record in their giving to NCCBI’s Second Mile Campaign to support expenses associated with the Annual Meeting. A total of $151,885 was contributed, which exceeds the previous record by about $25,000. It also exceeded this year’s budgeted goal by $51,885 and last year’s total by $56,000. Please join us in thanking the members listed on the next page for their generous support.

Platinum Sponsor $10,000
Blue Cross and Blue Shield of North Carolina, Durham
Martin Marietta Materials, Raleigh
Wachovia Bank, Winston-Salem

Gold Sponsor $5,000
BB&T Corp., Winston-Salem
North Carolina Electric Membership Corp., Raleigh
Womble Carlyle Sandridge & Rice, PLLC, Winston-Salem

Silver Sponsor $2,500
Bank of America, Charlotte
Corning Inc., Raleigh
Dixon Hughes PLLC, High Point
Duke Energy, Charlotte
First Citizens Bank, Raleigh
Gateway Bank, Elizabeth City
GlaxoSmithKline, RTP
Haynsworth, Baldwin, Johnson & Greaves, Cary
IBM Corp., RTP
Kennedy Covington Lobdell & Hickman LLP, Charlotte
Metro Magazine, Raleigh
Piedmont Natural Gas, Charlotte
Progress Energy, Raleigh
RBC Centura Banks Inc., Rocky Mount
Sprint, Wake Forest

Bronze Sponsor $1,000
Alston & Bird LLP, Raleigh
Altria Corporate Services Inc., Richmond, VA
Bank of Granite, Granite Falls
Bayer HealthCare Corp., Alpharetta, GA.
BellSouth, Raleigh
Brody Brothers Foundation, Kinston
Capstrat, Raleigh
Carolina CAT, Charlotte
Charlotte Chamber of Commerce, Charlotte
Cisco Systems Inc., Research Triangle Park
Citigroup Global Markets Inc., New York, NY
Cloninger Ford Toyota, Salisbury
Crescent State Bank, Cary
Eastern Band of the Cherokee Indians, Cherokee
Elster Electricity LLC, Raleigh
Ernst & Young LLP, Raleigh
Faircloth Farms, Clinton
First Bank, Troy
Forsyth Medical Center & Presbyterian Hospital, Charlotte
The Freelon Group, Durham
Frontier Spinning Mills Inc., Sanford
Georgia-Pacific Corp., NC Operations, Columbia, SC
Golden Corral Corp., Raleigh
The Hardwood Group, Charlotte
Harrah’s Casino and Hotel, Cherokee
Harvey Enterprises & Affiliates, Kinston
The Hearst Corp., Charlotte
Helms Mulliss & Wicker PLLC, Charlotte
Hickory Furniture Mart, Hickory
Lexington State Bank, Lexington
Longistics, Research Triangle Park
Lowe’s Companies Inc., Mooresville
Maupin Taylor PA , Raleigh
Miller Brewing Co., Eden
Murphy-Brown LLC, Warsaw
NAI Carolantic, Raleigh
News 14 Carolina, Raleigh
Nortel Networks, Research Triangle Park
N.C. Association of Defense Attorneys, Cary
North State Bancorp, Raleigh
Paragon Commercial Bank, Raleigh
Phillips Interests, High Point
Poyner & Spruill LLP, Raleigh
PSNC Energy, Asheville     
Research Triangle Foundation, Research Triangle Park
Rex Healthcare, Raleigh
RSM McGladrey Inc., Raleigh
Sara Lee Branded Apparel, Winston-Salem
SAS Institute, Cary
Shelco Inc., Charlotte
Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan LLP, Raleigh
Southern Shows, Inc., Charlotte
Ty Cox & Co. CPAs, Durham
United Guaranty Corp., Greensboro
University Health Systems of Eastern Carolina, Greenville
UNC Wilmington, Wilmington
U.S. Trust, Greensboro
Visiting International Faculty Program, Chapel Hill
Wal-Mart Stores Inc., Bentonville, AR 
Ward and Smith P.A., New Bern
Waste Industries, Raleigh
Webb Patterson Communications Inc., Durham
Wesley Hall Inc., Hickory

Financial Support
Aladdin Travel & Meeting Planners, Winston-Salem
Alex Lee Inc., Hickory
Alphanumeric Systems Inc., Raleigh
Biggs Pontiac Inc., Elizabeth City
Brady Trane Services, Greensboro
Capel Inc. Troy
EnergyUnited, Statesville
Hafer & Caldwell P.A., Raleigh
T. A. Loving Co., Goldsboro
Mt. Olive Pickle Co., Mount Olive
Parkdale Mills Inc., Gastonia
Rowan Investment Co., Salisbury
Jack G. Suddreth, Morganton
John W. Wardlaw Jr., Raleigh
Yadkin Valley Bank, Elkin

NCCBI hosts luncheon for FCC chairman
About 150 business and political leaders heard FCC Chairman Michael Powell (center) say that the deployment of broadband technology is critical to the development of new media outlets as well as North Carolina’s economy. Powell, who visited North Carolina for two days last month, was the special guest at a luncheon hosted by NCCBI and Corning in Raleigh on March 5. Powell, the son of Secretary of State Colin Powell, also toured a Corning fiber optic cable manufacturing plant in Wilmington and witnessed a Progress Energy demonstration of high-speed Internet service over power lines in Raleigh. NCCBI President Phil Kirk (right) welcomed Powell, who was introduced by Utilities Commission Chair Jo Anne Sanford (left).

Legislative Conference on May 12 is our next big event
NCCBI’s annual Legislative Conference will be held on Wednesday, May 12, beginning at 1:00 p.m. at McKimmon Center on the campus of N.C. State University. The conference will feature comments on pending issues by key legislative leaders. Other speakers at the conference will include Lt. Gov. Beverly Perdue, who will address the group on N.C.’s military bases; Attorney General Roy Cooper, who will speak about issues in the N.C. Department of Justice; Community College President Martin Lancaster, will give an update on workforce development; General Assembly Fiscal Analyst David Crotts, who will give the latest news on state revenues; and Wilmington Chamber executive Connie Majure-Rhett, who will brief the conference attendees on Amendment One: Self Financing Bonds. The conference will conclude at 5:00 p.m.

Following the conference, NCCBI will stage its popular Legislative Reception at the Capital City Club in downtown Raleigh. The reception from 5:30 to 7:00 p.m. will honor legislators, the Council of State and judges from the Supreme Court and Court of Appeals.

NCCBI joins major tax case before Court of Appeals
The N.C. Court of Appeals has accepted NCCBI’s petition to file a friend of the court brief in the A&F Trademark Inc. v. Tolson case (No. COA03-1203), a major tax case now pending before the appellate court. The case centers on whether companies are doing business in the state and, accordingly, subject to North Carolina's corporate income and franchise taxes even though they have no physical presence in North Carolina. In this case, the companies' only connection to North Carolina is that they license intangible intellectual property such as trademarks or computer programs to in-state businesses.

The only tax year in question in the A&F case is 1994. The state Department of Revenue imposed state taxes for that year based on an administrative rule it issued in 1992. For decades, the state had sought only to tax companies with a physical presence in North Carolina. Revenue’s administrative rules takes a dramatically different taxing approach based solely on the so-called "economic nexus" between the out-of-state company and North Carolina. NCCBI believes there is no change in the General Statutes to trigger or justify DOR's new taxing approach.

NCCBI joined the legal brief for several reasons, including the fact that in order to attract and retain businesses, the state needs predictable tax statutes. The Attorney General's Office filed a motion asking the court to deny NCCBI standing in the case, which was denied by the Court of Appeals.

Background: Last May, the Wake County Superior Court upheld a decision by the N.C. Tax Review Board that several subsidiaries of the Limited Stores Inc.– Lane Bryant Inc., Lerner Inc., Victoria’s Secret Inc., Abercrombie & Fitch Inc., Cacique Inc., Limited Too Inc., Express Inc. and Structure Inc. – were liable for state corporate income and franchise taxes for the value of trademarks they leased from the parent company. The Limited is incorporated in Ohio. The subsidiaries all are incorporated in Delaware. They own no property in North Carolina and have no employees here.

Limited Stores and its retail subsidiaries transferred the trademarks they owned to the subsidiaries. The subsidiaries then licensed the trademarks back to the retail companies, which paid royalties to the holding companies based on the retail companies’ sales. Due to the structure of the arrangement, the holding companies paid no state taxes on the use of the royalties.

When state Secretary of Revenue Norris Tolson first announced that North Carolina would seek to impose state taxes on trademarks under such business arrangements, he said Revenue intended to collect more than $150 million in taxes from other companies that had established such relationships.

Young Executives Forum to meet in Raleigh on April 23
The Young Executives Forum will meet from 10 a.m. to 2 p.m. on Friday, April 23, at the Legislative Building in downtown Raleigh to learn more about our state government and how young professionals can impact public policy in North Carolina. The meeting will be held in the Legislative Auditorium, located on the third floor of the State Legislative Building on Jones Street in downtown Raleigh.

We will hear from lobbyists who will explain first-hand what works and what doesn’t when you’re trying to impact decisions made in Raleigh. The panel of lobbyists will include NCCBI President Phil Kirk; Amy Fullbright, governmental affairs specialist with Hunton and Williams; and Don McCorquodale, manager of global government affairs with SAS Institute. Plus, Barry Eveland, NCCBI’s chair and IBM’s senior state executive for North Carolina, will share his tips for success in the “Lessons from a Leader” segment of our program.

There will also be a networking lunch and an optional tour of the N.C. Museum of Natural Sciences. Cost is just $50 for the entire day’s activities. If you are interested in attending this meeting (it’s open to all NCCBI members who are 50 years old and younger), please e-mail Julie Woodson at jwoodson@nccbi.org

Please welcome these new and returning members
Companies that joined or rejoined NCCBI during January and February include: Allen Tate Realtors, Allen Tate, Charlotte; Animal Medical Center of Garner, Nelson Haden, Garner; Avery/Banner Elk Chamber of Commerce, Glenn Grizzard, Banner Elk; Beasley Broadcasting, Danny Highsmith, Fayetteville; Beverly-Hanks & Associates, Neal Hanks Jr., Asheville; Brown and Caldwell, James Laughlin, Charlotte; Brunswick County Chamber of Commerce, Mitzi York, Shallotte; Brunswick County Tourism Development Authority, Debbie O'Brien, Shallotte; Campbell/Carlson, Cynthia Carlson, Charlotte; Charlotte Business Journal, Jeannie Falknor, Charlotte; Cohen and Green Salvage Co. Inc., Michael Green, Fayetteville; County of Camden, Randell K. Woodruff, Camden;

Ellis & Winters, Alex Hagan, Raleigh; Enterprise Distribution Inc., C. Hardy Butler, Durham; Healy Wholesale Co. Inc., John Healy, Fayetteville; Hedrick, Eatman, Gardner & Kincheloe LLP, Lisa R. Woodie, Charlotte; Hendrick & Bryant LLP, T. Paul Hendrick, Winston-Salem; Impact Design-Build Inc., Colen Davidson, Cary; Lees-McRae College, Andy Jackson, Banner Elk; MAC Panel Co., Tom Craycroft, High Point; Mad Boar Restaurants, Kim Loyd, Wallace; Makin It Work - Pronto!, Jane Martin, Winston-Salem; Matthews Specialty Vehicles Inc., Brad Matthews, Greensboro; McRae & Associates Inc., Cameron McRae, Kinston; N.C. Office of the State Auditor, Ralph Campbell, Raleigh; Niblock Development Corp., William Niblock, Concord; Northampton Economic Development Commission, Gary Brown, Jackson;

Office of Arnold Lakey, Arnold Lakey, North Wilkesboro; Office of Edward B. Bright, Edward B. Bright, Kinston; Office of H. C. Roemer, H. C. Roemer, Winston-Salem; Office of the Hon. Lucy T. Allen, Lucy Allen, Raleigh; Office of the Hon. Becky Carney, Becky Carney, Charlotte; Onslow County Economic Development/You Inc., Bruce Gombar, Jacksonville; Pace Communications, Bonnie McElveen-Hunter, Greensboro; PharmaLink FHI Inc., Albert J. Siemens, RTP; PPG Industries Inc., Jerry Strong, Lexington; RSM McGladrey Inc., Kurt Heinrich, Raleigh; Service Roofing & Sheet Metal Co. Inc., Hank Redecker, Raleigh; Shelton Vineyards Inc., George Denka, Dobson; Sims and Steele Consulting, Wilson Sims, Asheville; Southeastern Regional Medical Center, J. L. Welsh Jr., Lumberton;

Southern Community Bank, F. Scott Bauer, Winston-Salem; Technologies Edge Inc., Charles Spruill, Concord; The Hispanic Group, Jose Isasi, Winston-Salem; The Signature Agency, R. Frank Timberlake Jr., Raleigh; The Steel Network, Michael Torres, Raleigh; Tippett, Padrick & Bryan, W. Lyndo Tippett, Fayetteville; United Plywood, Ralph Greco, Mocksville; University of North Carolina -Chapel Hill, James Moeser, Chapel Hill; Wind Channel Communications, Jim Crawford, Raleigh.

Wilmington leaders host reception for NCCBI
NCCBI executive committee member Louise McColl and Greater Wilmington Area Chamber of Commerce President Connie Majure-Rhett hosted a reception for more than 25 prospective members for NCCBI at the chamber headquarters in Wilmington on Feb. 23. NCCBI President Phil Kirk spoke about the history of the statewide business organization and discussed its primary functions--lobbying, publishing, networking, and advocacy.  He also discussed the priority issues for the next three years, which include reduction in the personal and corporate income taxes, greater efficiency in government, and more effective economic development. He urged more involvement in public policy issues from the business community and encouraged those in attendance to join and become active in NCCBI, which serves as the state chamber of commerce and state manufacturing association. Accompanied by McColl, Kirk spent the day in the Wilmington area. He met with Dr. Rosemary DePaolo, the new chancellor at UNC Wilmington, and toured the new School of Education building, which is being constructed primarily with state higher education bond funds, and taped a television program. He also received a briefing and toured the State Port and enjoyed a reception with the key staff at Cape Fear Community College, in addition to having lunch with the new mayor of Wilmington, Spence Broadhurst, and dinner with David Jones, the former mayor.  Interviews were also held at the Wilmington Star News and with the Wilmington Business Journal.


U.S. Chamber offers tax tips for small businesses
The U.S. Chamber of Commerce has announced that the Chamber's Online Small Business Tax Center is open to assist small businesses across the country. "Since it is tax time, the chamber wants to make sure that it assists our small business members," NCCBI President Phil Kirk said.  "A special tax section, www.uschamber.com/sb/tax, has been created as a part of its Small Business Center." It contains feature articles on taxes, business and personal tax planners, information on business deductions, federal and tax forms, tax calculators, and filing deadlines.


Randolph County officials plan innovation conference
NCCBI, along with Randolph Community College, Randolph County Economic Development Corporation, N.C. Department of Commerce, Piedmont Triad Partnership, Piedmont Associated Industries, Sprint and the Asheboro/Randolph Chamber of Commerce, is sponsoring a one-day Innovation Conference at Randolph Community College on May 12.  The purpose will be to showcase new ideas, business models and products, according to Bob Edwards, who recently retired from N.C. State University, where he directed the manufacturing extension program.  During the conference, successful innovation and entrepreneurship will be described by a panel of industrial leaders active in central North Carolina, representing RF Micro Devices, Thorlo, Acme-McCrary, and The Timken Company. The Innovation Conference is designed for owners and executives from manufacturing companies who want to learn how North Carolina companies have profited by devising new business methods, finding new markets or marketing new products. Registration for the conference is $35 and includes lunch. Registration must be received by May 5.  For more information or to register, visit RCC's web site at www.randolph.edu/2004innovation.html or call Sharon Warren at 336-633-0275.

Names in the News
Horace Johnson retiring after 37-year career
Horace Johnson, who has served as office managing partner of the Ernst & Young Raleigh practice since 1987 and also as NCCBI’s treasurer for several years, is retiring from the firm on June 30. He will be succeeded by Robert (Bob) Thorburn, who joined Ernst & Young’s audit practice in 1984 and most recently worked with real estate clients throughout North Carolina and the Southeast. Johnson is a 37-year veteran of Ernst & Young. He has been an active and committed community leader in Raleigh serving as chairman of the Wake County United Way and the N.C. Symphony Society, and as a trustee and on advisory boards for the Wake Education Partnership, the N.C. Museum of History Associates, the Carolina Ballet and the NC State University-College of Management. “Having spent my career in the Raleigh office, I’m extremely excited about the opportunity to serve as managing partner. Ernst & Young has become a market leader under Horace’s leadership and we will continue to expand upon his legacy,” said Thorburn.

Stephen P. Zelnak Jr. of Raleigh, chairman and CEO of Martin Marietta Materials Inc. and a past chair of NCCBI, was elected chairman of the National Stone, Sand and Gravel Association (NSSGA), the national trade association representing about 750 producers and suppliers of aggregates. Martin Marietta Materials is the nation’s second-largest producer of aggregates. Zelnak assumed the position in late January during NSSGA’s annual convention in Phoenix.

has been named the BioNetwork director of the N.C. Community College System. She will develop and coordinate all components of the BioNetwork System, a new economic development initiative funded by the Golden LEAF Foundation, which as committed up to $60 million to launch a program to train North Carolinians for the emerging biotechnology industry. The community college share of the funding is $8.7 million for two years, which will be used to set up the BioNetwork System. Industry is also contributing in-kind support valued at $700,000 to the BioNetwork. The Biotechnology Office will oversee the management, partnership building, program administration and supervision of professional, paraprofessional and support staff.

Six-term state Sen. Wib Gulley (D-Durham) resigned his Senate seat effective March 22 to take a job as general counsel of the Triangle Transit Authority. The former mayor of Durham legislative pay, the length of legislative sessions and the cost of campaigns led to his decision. "I just can't do it anymore. I can't afford to continue to serve. I'm really sorry that's the case, because I've loved it," Gulley said. Gulley will earn $112,700 a year in his new job. That compares with a little over $49,000 in total income from the General Assembly last session.

of Chapel Hill, who served as research director for the N.C. Rural Economic Development Center, was named assistant secretary of policy, research and strategic planning in the N.C. Department of Commerce. He will act as the department’s chief economist and economic policy director and as liaison to the governor’s economic policy team.

The Fayetteville Area Chamber of Commerce and the Greenville-Pitt Chamber of Commerce have received accreditation from the U.S. Chamber of Commerce. Accreditation means the chambers have defined, reached and maintained basic operational performance standards and that they have significantly contributed to the good of their communities, regions, state and country.

of Asheville, vice president of marketing for The Biltmore Co., and Joyce Dugan of Cherokee, director of external affairs at Harrah’s Cherokee Casino and Hotel, were appointed by Gov. Mike Easley to the North Carolina Travel and Tourism Board. The board advises the secretary of the N.C. Department of Commerce on policies and directions in promoting and marketing the state as a travel destination and developing the state’s travel industry.

State Rep. Wilma Sherrill (R-Buncombe) was appointed by President Bush to a three-year term on the board of the Atlanta branch of the Federal Home Loan System. She becomes one of eight public interest directors on the board.

Dr. Robert “Robin” Dorff was named the new executive director of the North Carolina Institute of Political Leadership, succeeding Dr. Walt De Vries, who founded the institute and led it for 17 years until his recent retirement.

of Charlotte, a partner with the law firm of Parker, Poe, Adams and Bernstein, was appointed by Gov. Mike Easley to the N.C. Turnpike Authority. Fox serves on the N.C. State Banking Commission, Charlotte-Mecklenburg Coliseum Convention Center Authority, Charlotte Center City Partners and is director of the Charlotte Chamber of Commerce. The authority was established to create and maintain turnpike projects in North Carolina. There are nine members on the board, each serving a four-year term. The governor appoints four members.

Economic Development
J-DIG cited in three additional relocation deals
North Carolina’s Jobs Development Investment Grant (J-DIG) program offering state income tax rebates to targeted industrial prospects has landed three additional relocation deals since the turn of the year-old and a total of 10 since its enactment by the General Assembly 11 months ago. The latest came March 18 when ZF Lemforder Corp., an automobile component manufacturing and supply company, announced it would locate a facility in Newton, in Catawba County, bringing 200 jobs and up to $28.8 million in additional investment to the area.

ZF Lemforder is the car chassis technology division of ZF Friedrichshafen AG, a worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world. The company has a total workforce of 53,300 at 119 locations in 25 countries, and combined revenues for the group totaled more than $10 billion in 2002.

The company plans to start construction on the new 150,000-square-foot facility, which is expected to be completed in 2005. ZF will initiate incremental hiring later this year through the Employment Security Commission. These jobs will have an average salary of $33,400 per year.

For each year the company meets required performance targets, the state will provide a grant equal to 65 percent of the personal state withholding taxes derived from the creation of new jobs. If the company creates the jobs called for under the agreement and sustains them for 10 years, the agreement could yield $1.7 million to the company of over the life of the grant.

Two days before the ZF announcement, Unilin, a Belgian manufacturer of glueless laminate flooring known as Quick-Step, became the ninth J-DIG grant recipient when it announced it would expand its operations in Davidson County, bringing 330 jobs and up to $80 million in additional investment to the area. The company plans to start construction on a new building immediately and will initiate incremental hiring later this year through the Employment Security Commission. These jobs will have an average salary of $16 per hour.

For each year Unilin meets required performance targets, the state will provide a grant equal to 60 percent of the personal state withholding taxes derived from the creation of new jobs. If the company creates the jobs called for under the agreement and sustains them for 10 years, the agreement could yield maximum benefits to the company of $2 million over the life of the grant.

On March 15, Verizon Wireless, one of the nation's leading providers of wireless communications, became the eighth J-DIG recipient when it announced it would build a call center in Wilmington, creating up to 1,211 jobs with an investment of up to $29 million. The company said it expects to complete construction of the 150,000-square-foot facility by the end of this year. Verizon said it plans to begin hiring in the spring and will fill 700 jobs this year, with a total of up to 1,211 positions planned long-term. The jobs come with a benefits package and salaries starting at $25,000 and up. Under terms of the J-DIG grant to Verizon, the state will rebate 60 percent of the personal state withholding taxes paid the by new workers each year in which the company meets the required performance targets. The agreement could yield as $7.2 million to the company over 10 years.

On March 1, Citi Cards became the seventh J-DIG recipient when it announced it would expand its operations in Guilford County, bringing 900 jobs and up to $35 million in additional investment to the area. Citi Cards, the nation’s leading credit card provider, is a division of Citigroup, which has more than 200 million customer accounts and does business in more than 100 countries. The company provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The company plans to start construction on a new building soon and will initiate incremental hiring later this year. The chosen location is just off I-40 between Greensboro and Burlington. These jobs will have an average salary of $31,400.

Under the terms of Citi Card’s J-DIG grant, for each year in which the company meets the required performance targets, the state will provide a grant equal to 60 percent of the personal state withholding taxes derived from the creation of new jobs. If the company creates the jobs called for under the agreement and sustains them for 10 years, the agreement could yield maximum benefits to the company of as much as $5.2 million over the life of the grant.
 
The Job Development Investment Grant initiative awards up to 15 grants annually to strategically important new and expanding businesses and industrial projects. These grants are only awarded to projects whose benefits exceed their costs to the state and which would not locate in North Carolina without the grant. Cumulative annual grant amounts are capped at $10 million.

The first Job Development Investment Grant was awarded in May 2003 and has been responsible for bringing 4,421 new jobs and more than $256 million in investment in North Carolina. Twenty-five percent of the eligible grant amount for each announcement made in more prosperous counties will be used to fund the state’s Industrial Development Fund, a rural infrastructure fund. This fund, which will be worth $15 million, works toward the fulfillment of Gov. Mike Easley’s commitment to build One North Carolina.

Wallboard maker selects Roxboro for new plant
BPB, a manufacturer and marketer of wall and ceiling products, has selected Roxboro for a new $100 million gypsum wallboard plant, generating more than 200 direct and indirect jobs. Officials said the siting of the facility is directly related to the NC Clean Smokestacks Act and the N.C. Moving Ahead! initiative. BPB will locate its new plant adjacent to Progress Energy's coal-fired power generator and will use synthetic gypsum, produced as a by-product of that plant, to produce 700 million square feet of gypsum wallboard annually. The plant will be commissioned in 2007. The plant will also use synthetic gypsum produced at Progress Energy's Mayo Plant, also in Person County. Funds from the N.C. Moving Ahead! transportation initiative will be used for the BPB project to widen and resurface 12.9 miles of state roads at a value of $3.9 million.

In other economic development news:

Lyndall said it would spend $5 million expanding its existing thermal acoustical products plant in Hamptonville in Yadkin County, adding 104 new jobs. The plant already employs 140 people. The Connecticut-based company received a $100,000 One North Carolina incentive grant and $150,000 in incentives from county agencies.

Framatome ANP, an AREVA subsidiary, said it would expand its Mecklenburg County facility and add 100 new jobs. The majority of the jobs are engineering positions with an average salary of $75,000. The expansion represents an estimated $4 million investment. AREVA will receive $350,000 in One N.C. competitive fund money to be used for new equipment, machinery and infrastructure improvements. “Charlotte has been the home of our nuclear engineering and federal services teams for many years and we are proud to be a part of this business community,” said AREVA Enterprises CEO Tom Christopher. “We appreciate the outstanding efforts of the North Carolina Department of Commerce, the City of Charlotte, the County of Mecklenburg and the Charlotte Chamber of Commerce to assist AREVA in the decision to expand in North Carolina.”
 
Texas Encore Materials (TEM) will locate a tire recycling plant in Gaston County, creating 100 jobs over three years. Twenty new jobs will be created in the company’s first year of operation. The location of this facility is directly related to North Carolina’s efforts in waste management and recycling and the partnership between the Department of Commerce and the Department of Environment and Natural Resources. The company received a $983,360 grant from the Scrap Tire Disposal Account managed by the Department of Environment and Natural Resources’ Division of Waste Management. TEM is moving from Romulus, Mich., and will locate to a 74,840 square foot existing industrial facility that will be fully operational in April 2004. Investment during the three-year period is estimated at $2.5 million. “I would like to take this opportunity to thank the state of North Carolina and to commend the Department of Commerce, Department of Environment and Natural Resources, Gaston County Economic Development Commission, Duke Power and the Southside Companies for their roles in making this move possible,” said Dr. Philip Friedman, chief executive of TEM.

Film Council recommending new tax credit for movie makers
The N.C. Film Council's committee on incentives is spearheading a push for film incentives and has accepted a plan to present to the General Assembly in May.  According to the N.C. Travel and Tourism Coalition, the current plan is to request an amendment to current statutes and provide a 12 percent tax credit to production companies on all in-state expenditures on goods and services.  To qualify, a project must spend at least $50,000. There is no cap on the amount of the rebate.  The approved tax credits can then be taken to an approved broker, which will pay the production company cash for 10 percent of the credits, keeping the other 2 percent as a handling fee. 

Nash Community College receives $1 million dollar grant
Nash Community College in Rocky Mount will receive a $1 million federal grant from the U.S. Department of Commerce that will be used in the construction of a 46,000-square-foot Science and Technology Center. Sen. Elizabeth Dole (R–N.C.) and Dr. David Sampson, assistant secretary for economic development for the U.S. Department of Commerce, announced the grant during a visit to the community college on Feb. 19. The Science and Technology Center’s mission will be to train students in state-of-the-art classrooms and labs in sciences and technologies to meet local workforce needs, as well as attract businesses to the Nash/Rocky Mount area needing employees with these skills.


Environmental News
Murphy-Brown praised for developing new management tool
Murphy-Brown LLC, the swine production subsidiary of Smithfield Foods Inc., and the N.C. Divsion of Pollution Prevention and Environmental Assistance (DPPEA) in the Department of Environment and Natural Resources, have unveiled a management tool which is designed to help swine producers across the United States to better protect the environment.

Officials announced at a March 8 news conference on the N.C. State University campus that they are offering swine producers a "free, user friendly management tool that provides an organized approach to identifying and managing those parts of swine operations that could affect the environment, such as feeding, clean-up, waste treatment systems and spray irrigation.”

The tool is a prototypical environmental management system (EMS) that can meet the needs of swine producers for an environmental action plan. An EMS program consists of policies, procedures and practices designed to ensure that high environmental standards are maintained at swine operations.

Don Butler, director of government relations and public affairs for Murphy-Brown, said at the news conference, "We wanted to make it as easy as possible for producers to take the EMS and adapt it to meet their specific needs. The materials that we and the DPPEA team developed provide a simple step-by-step guide to creating an effective environmental management tool."

Dennis H. Treacy, vice president of environmental, community and government affairs for Smithfield Foods, added that the Murphy-Brown EMS "has produced excellent results for us and we want to share its benefits with all producers because we feel very strongly that these management techniques are good for our industry and the environment."

DENR Secretary Bill Ross said, "Increasingly both public and private organizations are using comprehensive environmental management systems to ensure sound environmental management. Smithfield Foods and Murphy-Brown are pioneers in the use of EMS for the pork industry." Agriculture Commissioner Britt Cobb said "swine farms play a significant role in North Carolina's $62 billion agriculture industry, providing jobs and supporting rural communities. The EMS template is a good example of how the public and private sectors can work together to resolve issues affecting farms and their neighboring communities."

NCCBI President Phil Kirk, who attended the news conference, said, "This is a perfect example of the private sector doing the right thing for the environment and for business without the government mandating it. In addition, the fact that Murphy-Brown and Smithfield Foods are giving the product they developed to their competitors at no cost is a tribute to their forward-thinking leadership."

Help Get Out the Vote!

Here’s an idea: Distribute voter registration
forms to workers at your place of business
Encouraging your employees to get to the polls on Election Day is important, but first people need to be registered to vote. There are several places where people can register and obtain registration forms, including local Division of Motor Vehicle (DMV) offices, public libraries and public high schools.

You can also provide voter registration forms at your business. Call your local elections office to get the forms and other registration information. Applicants will be notified by the county board of elections of their precinct and polling place assignments.

The deadline to register to vote in this state is 25 days before the day of the election. Forms that are received by the county board of elections office or postmarked by the deadline are accepted as valid applications for the upcoming election. With the state’s primary elections being pushed back to July 20, many people outside the political arena may be tempted to grow complacent.

However, the business community should look at this delay as an opportunity to devote more time to educating their employees about candidates and issues and encouraging them to register to vote. Starting with your next newsletter, staff meeting, company meeting, etc., you can articulate the importance of voting and electing pro-business candidates who will promote job growth and economic development.

If your employees do not get information from you, they will get it from other sources that may or may not be fair and accurate. Do not assume that your employees are getting the same information that you are.

For example, you may get most of your information about political candidates and issues from civic clubs, the newspaper or on-line news sources. Many of your employees may not be members of groups that provide these opportunities. Some may not have newspaper subscriptions or access to the Internet.

So, if you see a piece of good information, share it in your company newsletter or post it in a common area at work. Remember that polling data shows that most employees want to hear political information from their employers.  That’s why you have a great opportunity to get your employees registered and help them understand the candidates running for office and the issues at stake in North Carolina.


State Government

Strong sales tax receipts push state budget into the black
The strong retail sales trend that began in January continued into February and is now largely responsible for the small surplus that has accumulated in the state’s General Fund through eight months of its fiscal year. Sales and use taxes were $30.2 million greater than expectations in February, which came after January’s $31.1 million windfall. Through eight months, the state has collected $94 million more in sales and use tax receipts are than the $2.77 million projected.  Gross corporate income tax collections are substantially lower at this point than last year, at $372.3 million compared to $477.6 million after eight months last fiscal year. In the table below, corporate income and all other taxes are reported net of transfers to other accounts. The full report can be viewed at the State Controllers' web site.

Settlement reached in Microsoft class action lawsuit
The Shanahan Law Group of Raleigh and Microsoft Corp. have reached a settlement of $89 million in a class action lawsuit alleging that Microsoft violated North Carolina's antitrust and unfair competition laws. The case is being heard before Judge Ben Tennille in the North Carolina Business Court for Complex Litigation. The Shanahan Law Group is the lead counsel for North Carolina consumers in this case against Microsoft.

"This could be one of the largest such settlements ever reached under the antitrust or unfair competition laws of North Carolina," said plaintiffs' co-lead counsel Kieran J. Shanahan. "This settlement represents a significant portion of the amount that North Carolinians paid to Microsoft for its operating system and key applications software over a seven-year period. It stands to be a tremendous victory for North Carolina's businesses and consumers. The settlement can also benefit directly our schools and bridge the digital divide at a time when that help is desperately needed."

The settlement payments would go to consumers and businesses who purchased Microsoft operating system, productivity suite, spreadsheet, or word processing software between Dec. 9, 1995, and Dec. 31, 2002, for use in North Carolina. The proceeds will be distributed to class members in the form of vouchers that can be used to buy any manufacturer's desktop, laptop and tablet computers, any software used with those computer products, and specified peripheral devices for use with computers.

Fifty percent of any unclaimed proceeds from the proposed settlement are expected to be donated to North Carolina's most needy public schools in the form of vouchers for the future purchase of computer equipment, professional development services and non-Microsoft software. According to Shanahan, the law firm will be looking into ways to leverage those contributions into more dollars to help place technology into North Carolina’s most needy schools.

Private citizens and businesses can go to a website set up by the firm to determine if they qualify under the rules of the settlement, as well as find out any other information about the lawsuit. The web address for the information site is www.shanahansettlesmicrosoft.com. Interested parties can also call the firm at 866-392-1962.

DENR starts pilot program to speed environmental permits
The N.C. Department of Environment and Natural Resources has begun a pilot program in seven southeastern counties that promises to cut the time it takes to receive environmental permits by up to 60 percent. Since the program began in November, 29 permits have been issued on an expedited basic, including three multiple permits. Businesses pay higher fees but get quicker decisions on coastal stormwater permits, water quality wetland certifications, stream origin determinations, erosion and sedimentation control plans and permits required by the Coastal Area Management Act. If multiple permits are required for a project, a permit team would concurrently review applications. Program participation is voluntary. Permit fees range from $200 to $4,000, with a cap of $5,500 for multiple permits. The higher fees will be used to support extra staff dedicated to the express review. The service is available in Brunswick, Carteret, Columbus, Duplin, New Hanover, Onslow and Pender. Other regions of the state may be added later, and projects from other areas will be considered on a case-by-case basis. To learn more about express permitting visit www.envhelp.org. To participate in the one-stop express permitting program, contact Cameron Weaver at 910-395-3900 or e-mail denr.permits@ncmail.net.

Treasurer sells $708 million in bonds, largest single sale in history
State Treasurer Richard Moore executed the largest single bond sale in state history on March 10 when awarded approximately $708 million in general obligation bonds for clean water and higher education purposes and $36 million for natural gas purposes. The clean water and higher education bonds were awarded to Merrill Lynch & Co. who submitted the most favorable of the six bids at a true interest cost of 3.93 percent. The natural gas bonds were awarded to Griffin, Kubik, Stephens & Thompson Inc. who submitted the most favorable of the fifteen bids at a true interest cost of 2.48 percent.

DOT funds two needed projects in Greenville
The N.C. Board of Transportation voted last month to fund two projects that will greatly help traffic flow in Greenville -- the Arlington Boulevard Extension and a modernization project of U.S. 264. Both were added to the State Transportation Improvement Program. The first project calls for Arlington Boulevard to be extended from Beasley Drive to McGregor Downs Road at an estimated cost of $1.7 million. Construction is scheduled to begin in summer 2005. The project will relieve congestion in the northwestern part of the city and provide a direct route to the Trauma Center at Pitt Memorial Hospital. The second project will widen, resurface and add paved shoulders to U.S. 264 in Pitt and Greene counties. The project has an estimated cost of $6.6 million, with construction scheduled to begin later this year.

NCCBI applauds Easley’s decision on call center
Gov. Mike Easley has announced that the state is ending a contract that resulted in food stamp eligibility questions from North Carolinians being answered at a call center in India. The contract will be moved back to North Carolina. Thirty-four jobs will be added to an existing call center in Martin County. NCCBI President Phil Kirk applauded the action.  "After criticizing the federal government's lack of enforcement of existing trade regulations in 19 area speeches across the state last fall, I was equally critical of state government's outsourcing which resulted in a loss of jobs for our citizens," Kirk said.  "I indicated that state government needed to be setting the proper example in this area." On Oct. 13, Kirk sent a letter to the Governor asking a number of questions about the contract and requesting that it be cancelled if legally possible. He also asked if there were other similar contracts for outsourcing state government work overseas. NCCBI received a briefing from the Governor's office in December and was assured that the contract would be ended and that there were no similar ones in place. "This move will help employment in Martin County and it sends a signal that state government is interested in hiring North Carolinians for necessary jobs," Kirk said.

Washington Watch 
N.C. ranks 19^th in U.S. Chamber study of state legal fairness
The United States Chamber of Commerce Institute for Legal Reform’s annual State Liability Systems Ranking Study found a wide gap between the best and worst states in legal fairness – a difference that underscores the need for both federal and state-based legal reform.

North Carolina ranked 19^th in the study. Virginia ranked 3^rd, Georgia was 29^th and South Carolina was 40^th. “It’s good not to be in the bottom half of states,” said NCCBI President Phil Kirk, “but in today’s competitive economic environment, being 19^th is not good enough.”
 
“Opportunistic trial lawyers are flocking to courts in a handful of out-of-the-way places that are stacked in favor of plaintiffs’ attorneys and that have shown a willingness to dole out huge awards in frivolous cases,” said Thomas Donohue, U.S. Chamber President and CEO.
  
The Institute for Legal Reform, an affiliate of the U.S. Chamber, also is launching a national advertising campaign highlighting the results of the study and the need for comprehensive legal reform. For the third year in a row, Mississippi is ranked 50th and West Virginia is 49th. Delaware is ranked number one.
 
States with the best-rated legal systems enjoy an advantage over the lower-ranked states in attracting investment. “Businesses go where they are wanted and they brings jobs and economic growth to the states with the best legal systems,” said Donohue.
 
The Institute for Legal Reform/Harris Interactive survey of more than 1,400 senior attorneys, now in its third year, is the preeminent standard by which companies, policymakers and the media judge the legal fairness of states.
 
“This is a comprehensive problem that needs comprehensive solutions,” Donohue continued. “We need federal legislative reforms for class actions, asbestos litigation and medical malpractice. And we need states like Mississippi, West Virginia and Illinois to enact legislation that will restore fairness and balance to their civil litigation systems.”
 
The mission of the Institute for Legal Reform is to make America's legal system simpler, fairer and faster for everyone. It seeks to promote civil justice reform through legislative, political, judicial and educational activities at the national, state and local levels.
 

NORTH CAROLINA CITIZENS FOR BUSINESS AND INDUSTRY
awards its Citation for Distinguished Citizenship
to Bert Collins of Durham, North Carolina

As a child helping his parents on their Texas farm, Bert Collins would often glance up with wonder as yet another jet from a nearby Air Force base took off or landed. Rather than grow up to fly fighter jets, Bert was content to earn a private pilot’s license and serve on the board of the Raleigh-Durham Airport Authority during the years he helped lead North Carolina Mutual Life Insurance Co. in Durham.

 Despite his love of flying, Bert is the picture of a man who is down to earth, grounded in his community, and deeply rooted to the place he has called home for 37 years. And true to his agrarian roots, he has helped people and organizations thrive, whether it’s the young boy from a single-parent family he and his family took under their wing, a fundraising campaign for the United Way or relationships between the business community and minority groups. In fact, his friends and associates have a hard time naming a local cause or organization he or his civic-minded wife, Carolyn, haven’t lent their support to.

“Not only was he engaged in the very high-profile non-profit endeavors,” says longtime friend and Duke Energy executive Richard “Stick” Williams, “but you would also see him involved in some neighborhood or grass-roots activities, too.”

Stick Williams, who currently chairs the UNC-Chapel Hill Board of Trustees, recalls how he first met his friend. “I was running the Durham office of what was then called Duke Power, and I took the opportunity to call on Bert, mainly because I had always been in awe of the company he worked for — North Carolina Mutual is the oldest and largest African-American owned life insurance company in the nation. He became an advocate and mentor to me, and as we worked together on a number of boards and efforts I observed his quiet, engaged leadership. People know he’s involved in the effort because he wants it to succeed, not to promote Bert Collins.”

Now that Bert has retired as president and CEO of North Carolina Mutual, his roster of civic activities and commitments is somewhat reduced. But in his new capacity as chairman of the board, Bert will continue to play an active role in the community even as he enjoys more time with Carolyn, their three grown children and one grandchild.

For his part, Bert says much of the credit for his long resume of civic service must go to North Carolina Mutual and its ideals. “I work for a great company — we’ve always given our people the encouragement to give back to the community,” he says. “Going back to our founders in 1899, there’s a culture that leads employees to volunteer and use their influence to improve the lives and lot of all citizens in our communities, whether local, regional or national.”

Whether the company shaped the man or the man helped shape the company into the responsible corporate citizen it continues to be, one thing is certain: Durham is a better place to live and work because of North Carolina Mutual. As one of its first ads proclaimed in 1899, it was a “company with a soul and a service,” and it would make good on that promise by providing jobs for hundreds of African-American women and men and paving the way for other local minority-owned business to prosper such that Durham’s Parrish Street earned the nickname “the black Wall Street.” Its two founders, John Merrick and Aaron Moore, believed that education and economic opportunity were intrinsically linked, as did the towering figure who inspired them and influenced their thinking, Booker T. Washington. Besides being a visionary business man, Aaron Moore was also Durham’s first black physician and co-founder of the city’s first hospital for African-Americans.

As Bert Collins wrote in a recent North Carolina Mutual annual report, “Our founders believed in education as a tool to achieve and accomplish the better things in life. It is an important duty and responsibility of every family member, friend, extended family member and loved one to teach and preach the importance of education as a means of escaping poverty, a hedge against unemployment, and control by others, and most importantly a means to achieve one’s dreams.”

Bert should know. Inspired by his aunt, a school teacher and the only member of his immediate family at that time with a college education, Bert received a business administration degree from Huston-Tillotson College in Austin in 1955. Later, while an accountant in Detroit, Bert earned his CPA designation and an MBA degree from the University of Detroit. His education continued once the Collinses arrived in Durham, with Bert graduating from the Young Executive Program at UNC-Chapel Hill. And even though he was well on his way to the top position at North Carolina Mutual, Bert took the time to earn a law degree at N.C. Central University, not in order to practice but to be a better executive and citizen.

And still Bert devoted himself to civic activities, including the NAACP, the N.C. Museum of Art, the Food Bank of North Carolina, the Durham Rotary Club, the Boys and Girls Club of America, the Research Triangle Regional Partnership, this organization — NCCB I— and the list goes on. In the words of North Carolina Mutual board member Ben Ruffin,  “Bert Collins is one of the most unselfish persons I’ve ever met. Here is a guy who is so capable of leading, but he is willing to defer to other people’s direction, Bert has a quiet fire in him, and when he calls on people to help with projects or causes, they know he has no ulterior motive.”

Longtime friend John Atkins agrees. “Bert is modest and humble, with a steadying influence,” says Atkins, a Raleigh architect. “He has an innate ability to get things done in a quiet, tenacious manner, always looking for the positive outcome. I’ve never heard him say anything negative.”

In honoring Bert Collins for his distinguished citizenship, NCCBI joins organizations such as the Durham YMCA, the National Business League, the United Negro College Fund and the Durham Chamber of Commerce, all of which have recognized him in recent years. We in North Carolina and especially the Triangle are grateful to have had Bert as a friend, neighbor and business partner these 37 years and look forward to an even longer association.

Done this 17^th day of March 2004 at Raleigh
Sue W. Cole, Chair of the Board
Phillip J. Kirk, Jr., President

NORTH CAROLINA CITIZENS FOR BUSINESS AND INDUSTRY
awards its Citation for Distinguished Public Service
to Burley B. Mitchell, Jr. of Raleigh, North Carolina

When a high school dropout manages to eventually graduate from both college and law school, that’s a story. When a high school dropout graduates from college and law school and goes on to become one of the state’s most distinguished jurists in a half-century, that’s the stuff of legends.

The straight-shooting Burley Mitchell would be the last person to call himself a legend, but given his fondness for stories, he acknowledges that his background is indeed a colorful one. How many of us can claim we were so patriotic and at the same time, rebellious, that we quit school at 15 to join the Marines? The officials who kicked Mitchell out after discovering he had lied about his age must have predicted that such an impulsive young man would never amount to much. But they would have been wrong. They also would have failed to gauge the settling influence of Mary Lou Willett, who worked two jobs and sold Tupperware to help put Burley through N.C. State after the couple married in 1962.

Five years ago, Burley Mitchell retired from public service after dedicating 30 years of life to North Carolina’s justice system. From 1995 to 1999 he served as chief justice of the N.C. Supreme Court, a body he was first elected to as an associate justice in 1982. He also spent two years on the Court of Appeals. During his 19 years on the appellate bench, Burley authored 484 decisions, including eight cases considered landmarks by his peers. His earlier positions were also in public service: Secretary of Crime Control and Public Safety; Wake County District Attorney; and his first job out of UNC law school, Assistant State Attorney General.

For Burley Mitchell, lending his legal talents to the public was one way to make things better — if only a little at a time — for his fellow North Carolinians. “I enjoyed the entire 30 years in government,” he says. “I truly looked forward to going to work each morning because I felt like I was doing some good.”

These days, Burley spends his time standing before the bench instead of sitting behind it, facing exciting new challenges as a private citizen.  He heads up the appellate advocacy and government relations groups of Womble Carlyle Sandridge & Rice, arguing corporate cases on appeal before the Court of Appeals and Supreme Court. So he’s never far from the courtrooms and offices where his legacy lives on.

As Beverly Lake, current Chief Justice of the N.C. Supreme Court, puts it, “Burley Mitchell has made so many extraordinary contributions to the law in North Carolina. He’s a tremendous legal scholar and writer and his decisions represent a great contribution to the development of the law in North Carolina. And over all he has a deep-seated drive to leave the world better than he found it — to make a significant contribution — which he has done in many ways.”

What Burley gave to the justice system wasn’t just a lot of finely crafted opinions, as important as they were. His colleagues on the bench also point to Burley’s determination to help restore public confidence in the justice system. From this drive arose many practical improvements. For instance, when he became chief justice, the Supreme Court was way behind on its caseload. Rather than get further behind, Mitchell put his buck-stops-here attitude into practice. He told the other members of the court that they needed to dig in, work longer hours, and hold additional days of court. In his first year as Chief Justice, the court heard and decided almost twice as many cases as it had the previous year, and when Burley left the bench in 1999, the docket was current.

Burley also persuaded the court to establish the Chief Justice’s Commission on Professionalism, which has a broad ranging program to enhance legal professionalism and each year honors a North Carolina attorney for displaying a high level of professionalism and ethics. The way Burley sees it, professionalism is “doing right by the public, doing what you should do, not just what you must do in order to keep your license.” The commission’s aim is to raise the bar on the standards lawyers and judges are measured against, in an effort to improve the way all players in the process treat each other.

By all accounts, Burley’s own standards are exceedingly high. But he is not above a little fun, and in fact is known for his wit and one-liners, many of which can’t be repeated in polite company. A consensus-builder, Burley even established a practice on the Supreme Court called the Collegiality Report, which encouraged justices to render unanimous decisions. The reports, which an assistant prepared after each opinion conference, noted how the justices were leaning and what their eventual opinions were.

He made his own opinions clear, of course, but not in a commandeering way, notes Bob Orr, a justice on the N.C. Supreme Court who served with Burley for four years. “As a leader on the court, he had one of those calm, reasoned ways of leading and steering discussions, both case related and on other court business,” Orr says. “He struck me as totally in control of the situation in a wonderfully positive way, and never retreated from a challenge or responsibility.”

One responsibility that Burley took seriously was protecting and preserving the constitutional rights of all citizens. In Leandro vs. the State of North Carolina, the court in 1997 concluded that the state’s constitution does indeed guarantee every child the opportunity to receive a sound basic education, regardless of the economic status of their community. To quote from Burley’s decision: “An education that does not serve the purpose of preparing students to participate and compete in the society in which they live and work is devoid of substance and constitutionally inadequate.”

Burley later said of that decision that it was one time when his mind and heart were able to work together. But as his friend and former associate justice Willis Whichard notes, there were many such instances. “Those of us who have closely observed his 30 years of public service would say it was not the only time a great mind and a great heart worked together to produce a result with long-term potential benefits to the people of North Carolina,” says Whichard, currently dean of the School of Law at Campbell University. “We are all the better for his efforts.”

Perhaps his own words best capture the reason Burley Mitchell is being honored today for his distinguished public service to North Carolina. As he once told a convocation of law students at Chapel Hill: “If your objective in becoming a lawyer is to make a lot of money, I suggest you walk out of this room and go over to the business school. If your goal is to serve your community and make this society better today than it was yesterday, you’re in the right place.”

In honoring Burley Mitchell for his distinguished public service, we are indeed setting the bar high for those who would follow him.

Done this 17^th day of March, 2004.at Raleigh
Sue W. Cole, Chair of the Board
Phillip J. Kirk Jr., President

END OF NEWSLETTER