MARCH 23, 2001

Legislative actions

Other topics treated below include:
Education issues
Health care and insurance issues
General government and tax issues
Economic development issues
Meanwhile, in Mecklenburg County


DOT report  endorses toll roads as 'necessary'
to solve state's transportation problems

Toll roads seem to gaining momentum in the General Assembly, with separate bills introduced this week in the House and Senate and a new state Department of Transportation report out which concludes that they will be necessary if the state is to get highways it needs but can't afford. The DOT report didn't officially endorse toll roads but this is the strongest backing the department has yet expressed for them. Meanwhile, the House and Senate bills, which are officially supported by the DOT, would create an independent turnpike authority within DOT to build and operate toll roads. The authority would have the power to sell bonds and acquire land by eminent domain. It also could convert existing highways to toll roads. As talk about toll roads mounted, Sen. David Hoyle (D-Gaston) offered up a quote that accurately captures the public and legislative sentiment: "We've got a lot of people out there, they want the finest highway system in the world, they want low taxes to pay for them, and they don't want toll roads. They want the good Lord to come build them for us." Here are the toll road bills moving in the legislature: 

S. 474 N.C. TOLL ROAD AND BRIDGE AUTHORITY {Shaw of Cumberland}. To change the name of the North Carolina bridge authority to the North Carolina Toll Road and Bridge Authority, to authorize the authority to charge a toll on a north-south primarily rural interstate highway, and to direct use of toll proceeds to expansion and maintenance of that interstate highway and for other transportation purposes. Applies to any major north-south interstate route in NC that does not pass through a municipality with a population greater than 250,000 according to the latest decennial census. Interstate highway toll will be levied at discretion of authority but may not exceed $10. Referred to Transportation.  

H. 644 TOLL ROAD AND BRIDGE AUTHORITY CREATED {Crawford}. Authorize public toll roads and bridges in North Carolina and the creation of a Turnpike Authority. Creates new Art. 6H of GS Ch. 136, describing Turnpike Authority. Provides for seven-member board of directors, and outlines its terms, process of removal, compensation, and support. Outlines powers of Authority, which include: (a) developing, constructing, operating, and maintaining projects (any part of the state highway system, including primary and secondary roads, bridges, tunnels, and feeder roads); (b) fixing, revising, charging, and collecting tolls and fees for the Authority’s use, (c) issuing bonds or notes, in cooperation with the State Treasurer, as provided in the bill, and (d) constructing, purchasing, equipping, and operating any structures or facilities associated with the turnpike system. Authorizes acquisition of real property, conversion of free highways to toll highways, and control of vehicles with toll collection. Provides that operation of the authority is an eligible administrative expense chargeable to the Highway Trust Fund. Referred to Transportation.

Moratorium proposed on school systems'
exclusive contracts with soft drink companies
Saying she's concerned about kids' health, Rep. Julia Howard, a Davie County Republican, has proposed legislation imposing a two-year moratorium on local school boards signing exclusive deals with soft drink companies. Several school systems, hoping to generate some much-needed revenue, have signed such exclusive arrangements in which soft drink companies pay handsome fees for the exclusive rights to sell their products on school grounds. Winston-Salem/Forsyth County Schools  signed a five-year, $4.79 million deal with Pepsi in December and Wake County Schools  approved a $6.3 million contract with Pepsi in January. The bill would establish a 10-member commission of legislators, pediatricians, dentists and child-nutrition specialists to review medical research and laws regarding soft-drink sales to children. The N.C. School Boards Association doesn't have an official position on the issue, but Executive Director Ed Dunlap said it typically opposes legislation limiting the authority of school boards. Here's a summary of the bill:

H. 650 MORATORIUM ON SOFT DRINK CONTRACTS/SCHOOLS {Howard}. To place a moratorium on the authority of local boards of education to enter into contracts for the sale of soft drinks to students in public schools, and to appoint an independent study commission to study the public health issues and make recommendations regarding whether certain foods, including soft drinks, should be made available to students in public schools. Allows local board to exercise an existing option to renew or extend that is contained in an existing contract allowing sale of soft drinks to students on school property during school day. Creates a ten-member Commission on Nutrition and Public School Students to study issues indicated in title. Study commission members will be appointed by Senate President Pro Tem and House Speaker. Study commission must submit an interim report to Joint Legislative Education Oversight Committee no later than convening of 2002 legislative session and a final report by Dec. 1, 2002. Expires Jan. 31, 2003. Referred to Rules.

Other education bills filed this week:

H. 619 TEACHER ASSISTANT SALARY SCHEDULE {Warner, Buchanan, Bonner}. Requires the State Board of Education to adopt guidelines for the implementation of a teacher assistant salary schedule to be phased in over three fiscal years and fully implemented by June 30, 2004. Schedule is based on years of experience and level of education, and pay ranges from $14,000 to $21,560. Phase-in requires that funds appropriated in 2001-02 for a teacher assistant salary increase be used to begin implementation of the salary schedule; sets minimum salary levels by Jan. 31, 2002, for five-year intervals of experience up to 20 years and more. For example, teacher assistants with at least five but less than 10 years of experience must be paid at least the amount on the salary schedule for a teacher assistant with five years of experience. Requires that 2002-03 appropriation be used to place all teacher assistants on schedule in accordance with years of experience, and requires that 2003-04 appropriation be used to place all on the salary schedule in accordance with their years of experience and educational level. Provides that pay is to be established based on a teacher assistant’s experience and education as of July 1 prior to the school year’s beginning, and that no teacher assistant may be paid less under the schedule than they were paid in the previous school year. Requires that State Board adopt policies defining years of experience as well as forms for documenting experience and education level. Directs the Community College System to evaluate teacher assistant coursework and issue various levels of certification if teacher assistants meet requirements for a teacher assistant program developed by the System. Explicitly provides that this law may not be construed as modifying GS 115C-105.25( b)(1) (limits on transferring funds between funding allotment categories). Provides that transfers of funds allocated for a teacher assistant position to reduce class size must be equal to the average teacher assistant salary. Provides that effective July 1, 2002, state funds for teacher assistants shall be allocated as a position allotment. Effective July 1, 2003, requires allocation of those funds as a position allotment based on years of experience and education. Effective July 1, 2001. Referred to Appropriations.

S. 512 PROVIDE FUNDING BEFORE NEW SCHOOL STANDARDS {Lucas}. To suspend the application of the statewide student accountability standards until adequate resources are available to ensure that all students have a full and fair opportunity to pass these standards. Provides that Statewide Accountability Standards will not take effect until (1) State Board of Education provides Joint Legislative Education Oversight Committee with detailed analysis of resources needed to meet needs of all students, and (2) General Assembly finds that resources are adequate. Referred to Education. 

S. 515 SCHOOL HEALTH CURRICULUM MODIFIED {Lucas}. G.S. 115C-81(e1) now mandates a comprehensive school health education program in the public schools for grades K-9, outlines the subject areas to be addressed, and addresses in detail the objectives and curriculum components of instruction in prevention of sexually transmitted diseases, especially as pertains to abstinence until marriage. This bill makes the following modifications in these provisions: (1) requires that the curriculum teach that abstinence from sexual activity until marriage is the only certain means of avoiding “out-of-wedlock pregnancy and sexually transmitted diseases” (now, “out-of-wedlock pregnancy, and other associated health and emotional problems”) and that “a monogamous relationship is the best lifelong means” of avoiding diseases transmitted by sexual contact (now, “a mutually faithful monogamous heterosexual relationship in the context of marriage”); (2) requires that instruction in causes of sexually transmitted diseases, where either homosexual or heterosexual acts are a significant means of transmission, shall include current legal status of such acts (now, refers only to homosexual acts); (3) adds provision clarifying that “factually accurate biological or pathological” information pertaining to the human reproductive system means information supported by research recognized as accurate and objective by leading medical, psychological, public health organizations, and where relevant, tested in clinical trials and published in peer review journals; (4) provides that the health education program may also include other age appropriate curricula approved by the local school administrative unit; and (5) adds provision that program may include off-campus components, but that the program does not include individual consultation or counseling outside of the curriculum of instruction. Effective for beginning of 2001-02 school year. Referred to Education. 

S. 527 SCHOOLS SALES TAX EXEMPTION {Kerr}. To allow for a sales and use tax exemption for certain purchases made by a local school administrative unit. Exempts from sales tax under GS 105-164.4 items (other than electricity and telecommunications services) purchased by a local school administrative unit if the items are paid for by check, credit card, procurement card, or credit account of the unit and are purchased pursuant to a signed purchase order of the unit that contains the unit’s tax exemption number and a description of the property purchased. Effective July 1, 2002; applies to taxes paid on or after that date. Referred to Finance. 

S. 531 UMSTEAD ACT EXCEPTION/COMMUNITY COLLEGES {Dalton}. Amends GS 66-58 to allow community college trustees to allow private businesses the use of community college personnel or facilities to support economic development. Permissible activities are information technology outsourcing and telecommuting services, small business incubators, and product testing services for N.C.-based industries. Referred to Education. 

H. 659 STATE PAYS FOR SCHOOL UTILITIES {Arnold}. Appropriates $182 million for 2002-2003 from General Fund to Department of Public Instruction, State Aid to Local School Administrative Units as title indicates. Amends GS 115C-408 to provide that state revenues will be provided for public schools’ costs for water and sewer, electricity, natural gas, and other energy costs, as well as for instructional expenses for current operations. Referred to Appropriations. 

H. 645 SCHOOL DRESS CODES AND APPEARANCE POLICIES {Capps}. Requires principals to establish and enforce (by suspending or expelling students who violate dress code) student appearance and dress codes. Requires that these codes prohibit a long list of “inappropriate” dress, such as wearing sunglasses inside building, wearing skirt that is higher than three inches above the knee, wearing saggy pants, wearing shoes with untied laces, etc. Applies beginning with the 2001-02 school year. Referred to Education.  

S. 586 CLASSROOM EXPERIENCE FOR SCHOOL PERSONNEL {Hartsell}. Adds new GS 115C-47(18b) directing local boards of education to adopt a policy requiring professional school employees who do not have daily classroom instructional contact with students to deliver instruction or have other contact with students in classroom during the instructional day, through service as substitute teachers, teaching model lessons, assisting teachers in the classroom, tutoring individual students in the classroom, or other classroom services. Referred to Education.  

S. 650 COMMUNITY COLLEGE SATELLITE CAMPUS IN STOKES COUNTY {Foxx, Berger}. Directing Forsyth Technical Community College to study the feasibility of establishing a satellite campus in Stokes County. Study must assess the 10 criteria set out in state policies regarding establishment of satellite campus. Study must be completed by Oct. 15, 2001. Referred to Education.  


Health care and insurance

S. 459 INSURANCE FINANCIAL AMENDMENTS (=H. 347) {Wellons}. 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. Referred to Insurance.

S. 460 UMBRELLA INSURANCE IMPROVEMENTS (=H 357) {Wellons}. To increase the amount of liability insurance that may be ceded to the North Carolina motor vehicle reinsurance facility to facilitate the purchase of excess or umbrella coverage by motor vehicle owners and to clarify other laws relating to umbrella insurance. Referred to Insurance.

S. 461 INSURANCE INFORMATION PRIVACY (=H 349) {Wellons}. 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. Referred to Insurance GS.

S. 462 HEALTH INSURANCE OMNIBUS CHANGES (=H 360) {Wellons}. 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. Referred to Insurance.

S. 463 AMEND NURSING PRACTICE ACT {Purcell}. Amends the Nursing Practice Act to redefine nursing to include the assessing, caring, counseling, teaching, referring and implementing of prescribed treatment in the maintenance of health, prevention and management of illness, injury, disability or the achievement of a dignified death. Defines practice of nursing by an advanced practice registered nurse as a recognized nurse practitioner, nurse anesthetist, nurse midwife, or clinical nurse specialist who has graduated from or completed a nationally-accredited graduate level advanced practice nursing education program and maintains current certification or recertification from an approved national credentialing body or meets other requirements established by the Board of Nursing. Requires that one member of the Board of Nursing be an advanced practice registered nurse (now, a registered nurse approved to perform medical acts). Redefines practice of nursing by a registered nurse and practice of nursing by a licensed practical nurse to include maintaining safe and effective nursing care, whether rendered directly or indirectly. Amends GS 90-171.37 to allow the Board of Nursing to impose probation for violation of Nursing Practice Act or Board rules governing practice of nursing. Referred to Health Care.  

S. 466 WORKERS' COMPENSATION AMENDMENTS (=H. 354) {Wellons}. To remove an inequity from the Insurance Guaranty Association Act relating to workers’ compensation claims arising on and 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. Referred to Insurance.  

S. 468 WORKERS' COMP. CANCELLATIONS AND RENEWALS (=H 353) {Wellons}. To provide for guidelines, rights, and obligations in workers' compensation insurance policy cancellations and nonrenewals. Referred to Insurance.  

S. 481 HEALTH INSURANCE LICENSED PROFESSIONAL COUNSELOR (=H 593) {Martin of Guilford and Soles}. To provide for direct payment of licensed professional counselors under health insurance policies and plans. Referred to Insurance.

S. 484 INCREASE PHARMACY BOARD MEMBERSHIP {Ballance}. To increase the membership of the North Carolina Board of Pharmacy from six to nine. Three new members must be licensed pharmacists (eight of the nine must be licensed pharmacists). Five pharmacists are to be chosen by the election process currently described in the statute. Three pharmacists are to be appointed: one by President Pro Tem, one by Speaker of the House, and one by the Governor. Requires that appointing authorities consider geographic, gender and racial diversity of the state and appoint at least one member who is an employee of an organization operating in five or more community pharmacies in the state. Provides that three new appointed pharmacist members will serve five-year terms commencing when this act is effective and expiring April 30, 2006. Referred to Commerce.

General government

S. 470 CLARIFY MV DEALER FRANCHISE LAWS {Hoyle, Plyler, Dalton, Carter}. Makes several changes to clarify relationship between new motor vehicle dealers and manufacturers. Amends GS 20-287 to make it unlawful for any person or entity to sell or take steps to sell a new motor vehicle without current valid franchise issued by manufacturer. Adds new GS 20-301.1 to provide that manufacturers must give dealers detailed description of any charges other than published cost of new motor vehicles. Allows dealer to challenge charge by filing petition before the Commissioner of Motor Vehicles or by using informal dispute resolution procedure set out in act. Amends GS 20-305(30) to clarify that it is unlawful for manufacturer to make a vehicle or accessory available to any dealer at a lower actual price than is available to all other dealers. Allows rebates, incentives, or other payments as long as they are uniformly available to all dealers. Adds new GS 20-305.6 to make it unlawful for manufacturer or captive finance company to treat some dealers on a more favorable basis than others. Amends GS 20-308.1 to broaden causes of action under act and to provide for triple damages. Grants association standing to file petition before Commissioner or to sue for violation of Motor Vehicles Dealers and Manufacturers Licensing Law if association has membership of at least 500 dealerships and meets conditions set out in act. Provides that cognizable injury is action by manufacturer or by State of North Carolina that actually harms or affects, or threatens to harm or affect, all new motor vehicle dealers in N.C. Amends GS 20-305 to provide that it is unlawful for manufacturer to assign or change dealer’s area of responsibility arbitrarily or without due regard to pattern of sales and registrations within that market. Referred to Commerce.  


H. 635 REGULATE BODY PIERCING {Mitchell}. Requires Department of Environment & Natural Resources (DENR) to establish sterilization, sanitation and safety standards for persons engaged in business of body piercing. Establishes minimum certification requirements for body piercing technicians. Requires body piercing technicians and operators of body piercing facilities to register with DENR. Requires operators of body piercing facilities to obtain permit from DENR. Requires body piercing technicians and operators of body piercing facilities to follow infection control precautions specified in act. Enacts criminal and administrative penalties for violations of act. Act does not apply to activities of licensed physicians or surgeons. Registration requirements are effective Oct. 1, 2002; permit requirement is effective Jan. 1, 2002; remainder of act is effective Jan. 1, 2002. Referred to Finance.  

H. 637 MODIFY FUEL TAX FORMULA {Crawford}. Amends GS 105-449.80(a) to raise the variable wholesale component of motor fuel excise tax rate from 5.5 cents a gallon, up from 3.5 cents, or 7% (unchanged) of the average wholesale price of motor fuel, whichever is greater. Effective July 1, 2001. Referred to Finance.

H. 643 TESTIMONIAL PRIVILEGE FOR VIOLENCE VICTIMS {Hackney}. Amends Art. 7, GS Ch. 8 to create privilege for victim of domestic violence or of sexual assault. Grants domestic violence or sexual assault victim absolute privilege not to disclose and to prevent any other person from disclosing communication made by, for, or about the victim or made, given to or prepared by or for any agent, employee, or volunteer of center. Allows District Court judge or Superior Court judge to supersede the privilege after a hearing only if the party seeking access to communication meets burden defined in act. Permits court to order disclosure only if standard for disclosure set out in act is met. Defines “victim” of domestic violence or of sexual assault to include persons who have a significant relationship with victim and who have sought advice, counseling, or assistance concerning a mental, physical, or emotional condition caused or reasonably believed to be caused by the domestic violence or sexual assault against the victim. Provides that act does not relieve any person of duty to report abuse or neglect. Effective Dec. 1, 2001, and applies to actions and proceedings pending in the courts on or after that date. Referred to Judiciary I.

H. 648.MEDICAL EXAMINER STUDY {Earle}. To study the effectiveness of the current North Carolina medical examiner system. Lists issues to be addressed, including the extent to which suspicious deaths are unreported or underreported, the adequacy of investigations, and whether county medical examiners are adequately trained. Creates 13-member commission, and provides for its administration. President Pro Tem appoints five members: three members of the Senate, a nominee of the Association of County Commissioners, and a county medical examiner or licensed physician. Speaker of the House appoints five members: three members of the House, a nominee of the N.C. Public Health Association, and a nominee of the N.C. Child Fatality Task Force. The Governor appoints a member of the general public. Requires final written report of findings and recommendations on or before the convening of the 2003 Session. Permits report to 2002 Session. Requires that Legislative Services Commission allocate funds from its 2001-03 appropriation to support the Commission. Referred to Public Health.  

Economic development

S. 538 BILL LEE TWO-COUNTY PROJECTS {Thomas, Albertson, Jordan}. To amend the William S. Lee Quality Job and Business Expansion Act to allow more flexibility in creating two-county industrial parks. Amends GS 105-129.3(d) to add condition related to contribution required by county with lower tier designation in order for two-county industrial park to receive lower enterprise tier designation. Effective for taxable years beginning on or after Jan. 1, 2001. Referred to Finance. 

H. 685 OCCUPANCY TAX FOR CERTAIN COUNTIES {Gibson}. To authorize Anson, Montgomery, and Stanly counties to levy a room occupancy and tourism development tax. Maximum rates are 3% for Anson and Montgomery and 6% for Stanly. Net proceeds in Anson and Montgomery distributed to county tourism development authority. For Stanly, 5/6 of proceeds derived from accommodations Albemarle go to the city, with city required to remit 40% of that amount to county tourism development authority. County must remit to other municipalities proceeds from accommodations within their jurisdiction, and those municipalities are required to remit $1 per capita to county tourism development authority. County required to remit annually to the authority the greater of $25,000 or one-half the remaining proceeds. Referred to Finance. 

S. 557 MILLERS CREEK INCORPORATED {Garwood}. To incorporate the town of Millers Creek in Wilkes County, subject to a referendum. Town will operate under mayor-council form of government. Town council will consist of six members. Mayor will serve two-year term. Town council will serve four-year staggered terms. Elections will be conducted on nonpartisan plurality basis. Referred to Finance.  

H. 704 BUILDING CODE PILOT PROGRAM {Wilson of Mecklenburg}. To establish a building code pilot program for rehabilitating existing buildings. Pilot program will utilize building code standards based on Maryland Building Rehabilitation Code, New Jersey Building Rehabilitation Code, or combination of the two. Program will be administered by Department of Insurance and applies only to counties with populations of at least 650,000 according to most recent decennial census. Act does not obligate General Assembly to appropriate funds to implement program. Pilot program will be effective Jan. 1, 2002, until Jan. 1, 2006. Buildings in compliance with pilot program will not have to be retrofitted to come into compliance with applicable statewide building code when pilot program expires. Requires Department of Insurance to make interim report on effectiveness of pilot program to General Assembly by Dec. 1, 2004, and submit final report and recommendations regarding program by April 1, 2006. Referred to Rules.


Meanwhile, in Mecklenburg County . . .

S. 634 MODIFY MECKLENBURG ROOM TAX USE {Clotfelter}. Adds coliseums, including arenas and stadiums, to list of purposes for which occupancy tax proceeds may be spent. Referred to Finance.

S. 635 CHARLOTTE RENTAL CAR TAX {Clodfelter}. Authorizes Charlotte to levy additional tax of up to 5% on gross receipts from short-term lease or rental of vehicles to general public. Tax proceeds may be used only for: acquiring, constructing, financing, maintaining, operating, marketing, and promoting convention centers, civic centers, performing arts centers, coliseums, arenas, stadiums, auditoriums, and museums; off-street parking used in conjunction with these facilities; or tourism and tourism-related programs and activities. Referred to Finance.

S. 636 CHARLOTTE ENTERTAINMENT TAX {Clodfelter}. Authorizes a tax of 3% on gross receipts from specified entertainments. City may use the tax proceeds only for purposes of (1) acquiring, constructing or maintaining convention centers, civic centers, performing arts centers, coliseums, auditoriums, and museums, (2) parking for those listed facilities, or (3) promoting tourism. Referred to Finance.

S. 637 CHARLOTTE PUBLIC CONTRACTS EXEMPTION {Clodfelter}. To allow the city of Charlotte to contract for the design, construction, equipping, and furnishing of a new arena without being subject to the requirements of the laws regulating public contracts. Referred to Commerce.