MARCH 3, 2001

Other bills grouped by topic below:
Health care issues
Insurance, workers comp issues
Tax issues
Economic development issues
Other bills of interest

GOP lawmakers propose letting a citizens commission redraw districts
Some GOP lawmakers are proposing what is the unthinkable to most politicians – allowing average citizens to determine the boundaries of legislative and congressional districts. That’s a chore – done every 10 years after a federal census – the politicians want to keep for themselves because it's the best way they know to protect their turf against possible challengers. But Reps. Art Pope of Raleigh, John Weatherly of Kings Mountain and Sen. Ham Horton of Winston-Salem said at a Tuesday press conference that voters should be able to choose their representatives rather than letting lawmakers pick their voters. They said they believe redrawing legislative and congressional districts is too important to leave to the people who will then run for office from those districts. A constitutional amendment bill they filed would transfer the job to a nine-member panel appointed by the chief justice of the state Supreme Court, the governor, the speaker of the House and the president pro tem of the Senate. Legislative leaders later said they measure is an idealistic gesture that doesn't stand much change of passing. The bill is summarized below:

H. 318 INDEPENDENT REDISTRICTING COMMISSION {Pope (R-Wake), Weatherly (R-Cleveland)}} Requires referendum in November 2002 on constitutional amendments creating an Independent Redistricting Commission to set General Assembly and congressional districts. If passed, would establish the commission as a bipartisan body of nine persons appointed by the chief justice of the Supreme Court (2), the governor (3), the speaker of the House (2) and the president pro tem of the Senate (2). Terms after the initial appointees would be ten years. Members would be precluded from holding elective state office for four years before and after service on the commission. Would require that General Assembly districts created by the commission be geographically compact and, to the extent practical, avoid crossing county boundaries. Commission redistricting plans would have the force of law. Requires plans to be created without consideration of political affiliation of voters, voting data from previous elections, the location of incumbents’ residences and demographic data other than Census Bureau data. Referred to Rules. 

Meanwhile, a couple of other bills were introduced that would impact the way state government operates:

H. 280 CONVENE SESSION EARLIER {Redwine (D-Brunswick)}. Provides that the regular session of the General Assembly will convene on the second Wednesday in January following the election (currently convenes on third Wednesday in January) and that after adjournment that day, the General Assembly will stand adjourned for two weeks. Referred to Rules. 

H. 337 LEGISLATORS' PER DIEM/EXPENSES {Buchanan (R-Avery)}. Increases expense allowances for Speaker of the House, Senate President Pro Tem., Speaker Pro Tem of the House, Deputy President Pro Tem. of the Senate, and majority and minority leaders of House and Senate, from $666 to $707 per month. Increases other legislators’ monthly expense allowance from $559 to $594. Makes changes to GS 120-3.1(a) to reflect current business standard mileage reimbursement rates (as set by Internal Revenue Service) and to match federal employees’ current subsistence allowances. Effective upon convening of 2003 General Assembly. Referred to Rules. 


Other bills of interest introduced this week. . . 

Health care issues

S. 241 HEALTH INSURANCE TERMINATION NOTICE {Dalton (D-Rutherford)} Strengthens the law making it a felony for an insurance fiduciary to cause termination of group health or life insurance coverage by nonpayment of premium without giving notice to members of the group. Amends GS 58-50-40 to clarify that section applies to group health plans as defined in the federal Employment Retirement Income Security Act. Makes violation of GS 58-50-40 a class G felony (currently, class H). Requires insurers to notify Commissioner of Insurance when an insurance fiduciary fails to pay group health or life insurance premiums, and to notify insureds by publication of notice of the fiduciary’s failure to pay. Authorizes insurer to recover costs of publication and related administrative expenses from the insurance fiduciary. Referred to Insurance.

S. 252 INFANT HOMICIDE PREVENTION ACT (=H 275) {Martin (D-Guilford)} Decriminalizes abandonment of an infant under certain circumstances and modifies some procedures involving abandoned juveniles. Amends GS 7B-302 to require a county director of social services who receives a report of child abandonment to immediately initiate an investigation, to take steps to arrange for the child’s custody, and to determine whether an abandoned child has been reported as a missing child. Amends GS 7B-500 to require law enforcement officers, department of social services workers, certain health care workers, and emergency medical technicians at fire stations to take temporary custody of an infant under 15 days of age that is voluntarily delivered to the individual by a parent who intends to abandon the child. Permits, but does not require, any other adult to take temporary custody of an infant under the same circumstances. Requires individuals who take such custody to perform any act necessary to protect the physical health and well-being of the infant. States that an individual who takes temporary custody of an infant under those conditions may inquire as to the parents’ identities and relevant medical history, but the parent is not required to respond. Immunizes individuals who take custody under this law from civil or criminal liability, so long as the individual was acting in good faith. Amends GS 7B-1111(a)(7) to permit a court to terminate parental rights upon a finding that a parent has voluntarily abandoned an infant for at least 60 days pursuant to GS 7B-500 as amended. Adds new GS 14-322.3 to prohibit the criminal prosecution for abandonment of a parent who voluntarily delivers an infant less than 15 days old to a health care provider, a law enforcement officer, a department of social services worker, an emergency medical technician at a fire station, or another suitable adult who willingly accepts the infant. Makes additional conforming changes to the criminal code. Directs state officials to develop a media campaign to inform the public of this law. Referred to Judiciary II.

H. 339 STANDARDIZED CREDENTIALING/HEALTH CARE PRACTITIONERS {Wilson (R-Mecklenburg)}. Creates new GS 131E-256.5 to require Department of Health and Human Services to establish and maintain a database of core credentials data on each health care provider. Authorizes Department to charge a fee, not to exceed actual costs, for release of this data. Prohibits health care entity or credentials verification program from collecting duplicate core credentials if data is available on the Department database. Requires practitioners to report changes in their core credential data to Department within 45 days of the change. Requires registration, licensing and liability insurance for credentials verification organizations. Appropriates from General Fund to the Department of Health and Human Services $250,000 for fiscal year 2001-2002 and $250,000 for fiscal year 2002-2003 to implement standard credentialing. Standard credential database requirements effective Jan. 1, 2002. Referred to Rules.  

Insurance, workers comp issues

H. 343 REMOVE EMPLOYMENT SECURITY SUNSETS {Redwine (D-Brunswick)}. Repeals sunset provisions of SL 1997-404 (redefining base period for unemployment benefits and eliminating one and one-half times test) and SL 1999-196 (providing that an individual may not be disqualified for unemployment benefits when the individual declines employment during a particular shift because it would cause undue family hardship). GS 96-9(c)(2)b. provides, among other things, that benefits shall not be charged to the employer when the claimant was discharged solely for inability to do the work for which he was hired, but only when the claimant was hired pursuant to a job order placed with a local office of the Employment Security Commission and other conditions were met. Bill deletes those requirements, so that benefits will not be charged to an employer whenever a claimant is discharged solely for inability to do the work for which he was hired. Referred to Judiciary I. 
 
H. 347 INSURANCE FINANCIAL AMENDMENTS {Hurley (D-Cumberland)}. To amend North Carolina's insurance laws concerning insurance company reserving methods, licensing provisions, reinsurance for domestic companies, domestic company formation, solvency protection, life insurance company variable accounts, consolidations, investments, mutual insurance companies, reinsurance intermediaries, mortgage guaranty insurance, risk-based capital requirements, asset protection, foreign insurance companies, promoting and holding companies, holding company systems, surplus lines insurance, risk retention groups, insurance company receiverships, managing general agents, self-insured workers’ compensation, and continuing care retirement communities. Makes extensive revisions to financial solvency provisions of GS Ch. 58, including changes in minimum reserves; changes in credit for reinsurance; allowing more liberal investments, such as derivatives, by insurance companies; changes in demutualization law; changes in the process for stock to mutual insurer conversion; a new Part 5 to Art. 10 of Ch. 58 that sets requirements for mortgage guaranty insurance; background checks on persons forming domestic insurance companies; placing HMOs and service corporations under risk-based capital law; increasing trust fund amounts for alien surplus lines insurers; authority for Comm’r of Insurance to require additional net worth for health maintenance organizations; and stronger process protections for residents of continuing care retirement communities. Referred to Insurance.

H. 348 INSURANCE FEE REPEALS AND INCREASES {Hurley (D-Cumberland)}. To repeal miscellaneous fees paid by insurance companies to the Department of Insurance; and to increase the insurance company license application and renewal fees to make the repeals revenue neutral. Fee increase effected by amendment to GS 58-6-5 increasing from $250 to $1,000 the fee for filing and examining an insurance company application for admission. Referred to Insurance. 

H. 349 INSURANCE INFORMATION PRIVACY {Hurley (D-Cumberland)}. To make the North Carolina Insurance Information and privacy protection act comply with the consumer information privacy requirements in the federal gramm-leach-bliley act, public law 106-102. As title indicates. Also adds a new section to GS Ch. 58, Art. 39, providing that an insurance institution, agent, or support organization shall not disclose account number information to a nonaffiliated third party, other than a consumer reporting agency, for marketing purposes. Intro. by Hurley and Dockham. Referred to Insurance 

H 353. WORKERS' COMP CANCELLATIONS AND RENEWALS {Dockham (R-Davidson)}. To provide for guidelines, rights, and obligations in workers' compensation insurance policy cancellations and nonrenewals. Adds new GS 58-36-105, prohibiting workers’ compensation insurance policy cancellations except for one of the following reasons: (1) nonpayment of premium, (2) material misrepresentations or nondisclosures of material facts in policy transactions, (3) material changes in risk that could not have been contemplated by the parties, (4) substantial breach of contractual duties, conditions, or warranties materially affecting insurability, (5) an insured’s fraudulent act that materially affects insurability, (6) an insured’s willful failure to take reasonable loss control measures that materially affect insurability, (7) loss of facultative reinsurance or substantial changes in applicable reinsurance, (8) an insured’s conviction of a crime arising out of acts that materially affect insurability, (9) a determination by the Comm’r of Insurance that continuation of the policy would violate state law, or (10) the insured’s failure to meet requirements in the insurer’s corporate charter, articles of incorporation, or bylaws, when the insurer is a company organized for the sole purpose of providing members of an organization with insurance coverage in NC. Requires 15 days advance written notice of permitted cancellations. Adds new GS 58-36-110, requiring insurers to give 45 days advance written notice of a refusal to renew a policy and 30 days advance written notice of reductions in coverage limits or increases in deductibles or premiums. Effective Oct. 1, 2001. Referred to Insurance.

H. 354 WORKERS' COMPENSATION AMENDMENTS {Dockham}. To remove an inequity from the insurance guaranty association act relating to workers’ compensation claims arising on or after Jan. 1, 1993; to change a requirement in the loss costs rate-making law; and to amend the rate bureau appeal statute to provide that member companies are not allowed to appeal bureau decisions on rates or loss costs. Provision removing inequity from the Insurance Guaranty Association Act becomes effective Jan. 1, 1993. Apparently intends for the other provisions of the act to become effective when it becomes law. Referred to Insurance. 

H. 360 HEALTH INSURANCE OMNIBUS CHANGES. {Dockham}. To expressly allow nonbinding arbitration in health insurance policies; clarify the preferred provider plan law; amend the small employer rate guarantee law; provide for the promotion of alcohol and narcotic screening and intervention; amend the law on newborn and foster child coverage; provide for successor health plan coverage for confinement or pregnancy; provide for a health insurance continuation election period; require an HMO group coverage premium change notice; provide for successor health plan coverage for conditions first diagnosed under previous coverage; to expand Medicare supplement guaranteed issuance for disabled persons; to allow the insurance commissioner to adopt temporary rules for Medicare supplement and long-term care insurance to implement federal requirements; and to make technical corrections to reflect repeals of laws. Adds new GS 58-3-35(c), authorizing nonbinding arbitration clauses in health or life insurance policies or annuity contracts and providing that arbitration procedures and rights of parties must be substantially similar to those contained in the NC Supreme Court’s rules. Adds new GS 58-51-16, prohibiting conditions or stipulations in accident or health insurance contracts that defeat or avoid coverage when a loss results from the insured’s being under the influence of alcohol or a narcotic. Amends GS 58-31-30(b) to require health benefit plans to extend coverage to newborn children without requirements for prior notification, unless there is an additional premium charge to add the child. Amends GS 58-51-110(b) to require coverage of pregnancy or hospital confinement by successor health plans when statutory requirements are met. Amends GS 58-53-10 to provide a minimum 60-day period during which an employee or member of a group plan may elect continuing coverage. Adds new GS 58-67-50(b)(3); requiring health plans for group coverage to guarantee premiums for a period of at least 12 months and to give enrollees 45 days advance written notice of premium changes. Prohibits such plans from individually determining an enrollee’s premiums based upon the enrollee’s health status. Adds new GS 58-38-30(e), prohibiting group health insurers from excluding preexisting conditions when the condition was first diagnosed or treated while the insured held qualifying previous coverage that covered the condition. Amends GS 58-54-45 to provide disabled persons under the age of 65 who lose managed care coverage with a guaranteed right to purchase Medicare Supplement Plans A and C from any insurer within 63 days of the loss of coverage. Authorizes Medicare supplement plans to develop premium rates specific to disabled population, but prohibits discrimination in pricing when an application is submitted during an open enrollment period or within 63 days after loss of a managed care plan. Adds new GS 58-55-50, authorizing Commissioner of Insurance to adopt temporary rules necessary to conform long-term care policies to federal law. Amends unspecified section of GS Ch. 58, Art. 56 (probably intended GS 58-56-51) to authorize Comm’r of Insurance to receive and use otherwise confidential information in the performance of the Comm’r’s duties, and to provide for the protection of that information. Makes additional technical and conforming changes. Effective Oct. 1, 2001. Intro. by Dockham and Hurley. Referred to Insurance.

Tax issues

S. 242 MAKE FRANCHISE TAX MORE EQUITABLE {Dalton (D-Rutherford)} Equalize the franchise tax treatment of entities organized as corporations and entities taxed as corporations under federal law and to clarify the franchise tax liability of corporations that own entities that are disregarded for tax purposes. Amends GS 105-114(b)(2) to include within the definition of “corporation” for purposes of the franchise tax, any entity that is treated as a corporation for federal income tax purposes, and to exclude a limited liability company that is treated as a partnership for income tax purposes. Amends GS 105-122(b) to add provision that if a corporation is the sole shareholder or sole member of an entity that is disregarded for federal income purposes, the two are considered the same corporation for franchise tax purposes. Amendment to definition of “corporation” effective for tax years beginning on or after Jan. 1, 2002; remainder effective when it becomes law. Referred to Finance. 

H. 231 EQUALIZE SALES TAX ON SOFTWARE {Allen (D-Person)}. Treats sales of computer software equally for sales and use tax purposes regardless of the method of delivery. Under current law, tangible personal property is subject to sales and use taxes. The current definition of tangible personal property in GS 105-164.3(20) includes only computer software delivered on a storage medium, such as a disk. Bill amends definition to include computer software delivered electronically. Effective July 1, 2001. Referred to Science & Technology.

H. 284 HARNETT LOCAL SALES TAX {Davis R-Harnett)}. Authorizes Harnett County commissioners to levy additional one cent tax if passed by referendum, with proceeds to be used as title indicates.  Referred to Rules.

H. 312 NO SALES TAX ON FUNERALS {Rayfield (R-Gaston)}. Amends GS 105-164.13(18) to exempt from sales and use tax “funeral expenses, including coffins and caskets.” Effective July 1 and applies to sales made on or after that date. Referred to Finance. 

S. 268 SIMPLIFY TAXES ON TELECOMMUNICATIONS {Hoyle (D-Gaston)}. Bill recommended by the Revenue Laws Study Committee. Applies one tax at one rate to all telecommunications services. Combines multiple tax rates into one uniform rate of 4.5%. Broadens the tax base by eliminating exemptions for interstate calls and telephone membership corporations. Taxes prepaid telephone calling cards at the point of sale. Establishes a local sourcing rule for wireless communications. Eliminates complicated distribution formulas for local revenue sharing while preserving the local revenue stream. Requires Dep’t of Revenue to report to the Revenue Laws Study Committee by Oct. 1, 2003, on the effects of certain changes made. Effective January 1, 2002, and applies to taxable services reflected on bills dated on or after that date. Reporting requirement expires July 1, 2004. Referred to Finance.

H. 426 LEE LOCAL SALES TAX. {Cox} Authorizes Lee County commissioners to levy additional one cent tax if approved by referendum, with proceeds to be used as title indicates. Referred to Rules.

Economic development issues

H. 379 BILL LEE ACT CHANGES {Owens} Provides 15-year carry-forward for research and development credits under GS 105-129.10. Clarifies OSHA compliance requirement in GS 105-129.4 and adds requirement regarding average lost workday injury and illness case rates. Extends sunset provision for FedEx freight distribution facility credits to July 1, 2007 (was, Jan. 1, 2004). Effective Jan 1, 2001 except for OSHA compliance changes, which are effective Jan. 1, 2002. Referred to Finance. 

H. 390 CHANGE TO NEW & EXPANDING INDUSTRY PROGRAM {Smith}. Adds new GS 115D-5(k1) authorizing Community College System Office to use up to $250,000 of funds appropriated each fiscal year to the New and Expanded Industry Training Program (NEIT) for a field representative for each of the state’s seven economic development regions, and up to $250,000 of funds so appropriated to purchase training equipment to support NEIT projects. Effective July 1, 2001. Referred to Education. 

Other bills of interest

H. 228 ELECTION OF COMMUNITY COLLEGE BOARD MEMBERS {Bonner (D-Hoke)}. Sets March 22 as date for electing members of State Board of Community Colleges. House will elect one member for six-year term beginning July 1; Senate will elect one member for six-year term beginning July 1 and one member to fill an unexpired term expiring June 30, 2005. Referred to Education. 

S. 263 SEXUAL PRIVACY ACT {Kinnaird (D-Orange)} Amends GS 14-177 (criminalizing a crime against nature) to provide that it does not apply to acts between consenting adults in privacy and not for hire. Referred to Judiciary II.

S. 264 REQUIRE STATE REPORTS DOUBLE-SIDED {Kinnaird (D-Orange)}. Amends GS 130A-309.14(j) to eliminate practicability exception to requirement that state agency, legislative, judicial, and university reports be printed on both sides of the paper. Effective July 1, 2001. .Referred to State & Local Government.

S. 265 PROHIBIT DOT FROM BURNING {Kinnaird (D-Orange)}. Qmend the laws regarding nonhazardous solid waste management by prohibiting the Department of Transportation from burning yard trash and other organic solid waste in highway construction and maintenance projects and requiring the Department of Transportation to recycle or reuse this waste. Effective July 1. Ref. to Transportation.

S. 267 AT-LARGE MEMBER/UNC BOARD GOVERNORS {Dalton (D-Rutherford)}. Establishes the procedure for nominating and electing one at-large member of the Board of Governors of the University of North Carolina. The Senate must elect a person to fill the remainder of an unexpired term on the board. The position to be filled is an at-large position with a term expiring June 30, 2003. Resolution directs Senate Committee on Education/Higher Education to choose nominees for the position and sets forth procedures and timelines that are identical to those found in the committee substitute for S. 267 that was adopted on Feb. 21. Referred to Education.

H. 308 ENVIRONMENTAL MANAGEMENT COMMISSION MEMBERSHIP {Gillispie (R-McDowell)}. Intends to amend GS 143B-283 to require appointing authorities to attempt to ensure fair geographic representation on the EMC. Referred to Rules. 

H. 325 LEVEL 2 GRADUATED DRIVERS LICENSE CHANGES {Culp (R-Randolph)} Amends GS 20-11(e) to authorize the holder of a level 2 limited provisional license to drive without supervision to or from a school-related activity, and to extend the hours during which the license holder may drive unsupervised to 10 p.m. (currently, license holder may drive unsupervised between the hours of 5:00 a.m. and 9:00 p.m.).  Referred to Rules.

S. 269 AMEND INVESTMENT ADVISER LAW {Hoyle (D-Gaston)}. Amends GS 78C-2(3) (definition of investment adviser representative) to provide that person who is employed by or associated with investment adviser covered by federal law only includes person who has place of business in state and is covered by federal definition of investment service representative or is not a “supervised person” under federal law and regulations. Amends GS 78C-16 to allow investment adviser representative to be registered with more than one investment adviser, subject to disclosure requirements specified in bill. Amends GS 78C-17 to allow designee of Administrator (Sec’y of State) to charge reasonable costs for processing filings required for initial or renewal application. Rewrites GS 78C-20(a) to designate that applications for initial and renewal registrations and notice filings to be filed with Investment Adviser Registration Depository, and repeals current subsection (b) of that section. Effective Oct. 1, 2001, for filings on or after that date. Intro. by Hoyle. Referred to Commerce. 

S. 273 TRUCK SPEED LIMIT {Hoyle (D-Gaston)}. To establish a maximum speed limit of 65 miles per hour for commercial motor vehicles on highways with a 70 mile per hour speed limit for other motor vehicles. Effective Dec. 1, 2001, and applies to offenses committed on or after that date. Referred to Judiciary I. 

H. 376 INVITING CHIEF JUSTICE LAKE {Culpepper}. As title indicates, extends invitation to Chief Justice Lake to address a joint session of the General Assembly on March 19 at 7:00 p.m. Referred to Rules. 

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