MARCH 30, 2001

Developments this week in the General Assembly

Other issues treated below:
Economic development: A bill is offered to aid the film industry.
Tax and fiscal policy: The Taxpayer Protection Act is back; a bottle bill pops up.
General government: A measure further tinkers with the powers of the Centennial Authority. 
New license plates: Harley owners could get their own special plates.
Committee actions and floor votes: The House passes a bicycle safety bill.

Legislation filed requiring health benefit plans
to treat mental health, chemical dependency equally
Four prominent Democratic House members, including Majority Leader Phil Baddour of Goldsboro and Speaker Pro Tem Joe Hackney of Chapel Hill, introduced legislation this week that would require health plans to cover mental health and chemical dependency treatments the same as any other physical ailment. NCCBI opposes all government mandates on private health insurance policies. The bill is summarized below:

H. 808 MENTAL HEALTH/CHEMICAL DEPENDENCE PARITY {Alexander, Baddour, Hackney, Wainwright}. Requires every group health benefit plan to include benefits for the treatment of chemical dependency that are not less favorable than benefits for physical illness generally. If a group health benefit plan contains annual limits, lifetime limits, co-payments, deductibles, or coinsurance only on selected physical illness and injury benefits, and these benefits do not represent substantially all of the physical illness and injury benefits under the health benefit plan, then the insurer may impose limits on the chemical dependency treatment benefits based on a weighted average of the respective annual, lifetime, co-payment, deductible, or co-insurance limits on the selected physical illness and injury benefits. Adds a provision regarding the use of a case management program for chemical dependency treatment benefits. Adds a provision stating a group health benefit plan is not prohibited from managing the provision of benefits through common methods designed to limit coverage for chemical dependency treatment only to those that are deemed medically necessary. Effective Jan. 1, 2002. Referred to Rules. 

Other health care bills:
S. 714 AMEND CERTIFICATE OF NEED {Rand}. Amends the definition of "ambulatory surgical facility" by reducing the number of required operating rooms from two to one and to amend the definition of "new institutional health service" by including construction, development, establishment, increase in number, or relocation of an operating room or operating rooms and to extend the determinative effect of the state medical facilities plan to all operating rooms. Referred to Health Care. 

Economic development: travel and tourism
S. 692 FILM INDUSTRY FUNDS {Jordan, Ballantine, Lee, Carter, Metcalf}. Appropriates $2.5 million for 2001-2002 and $2.5 million for 2002-2003 from General Fund to Department of Commerce, Division of Tourism, Film and Sports Development for use in promoting North Carolina as a site for film production. Referred to Appropriations.

S. 693 FILM INDUSTRY INCENTIVES {Ballantine, Lee, Carter, Metcalf, Jordan}. Allows the refund of state sales tax (but not general local sales tax) to a production company for renting accommodations for employees as long as room is rented more than 30 but less than 90 days. Amends state law regarding the film industry development account to provide that a grant for production of an episode of a television or radio series may not exceed 1 percent of the amount spent by production company and to provide that each episode of a television or radio series is considered a separate production in determining $200,000 per production cap on grants. Effective July 1, 2001. Referred to Finance.

Other economic development bills:
S. 709 INDUSTRIAL POLLUTION CONTROL FACILITY FINANCE {Rand}. Amends the Industrial and Pollution Control Facilities Financing Act and the N.C. Industrial And Pollution Control Facilities Pool Program Financing Act to include within the definition of special purpose project: bridges, tunnels and railroads; improvements on or remediation to brownfields property; facilities for the generation, transmission or distribution of electric energy or gas; facilities leased or sold in installment sale to the state, a state agency, or political subdivision; and facilities or portions of facilities used by a nonprofit corporation in any lawful activity (now, facilities for the provision of rehabilitation, education, training, and employment opportunities for persons with disabilities and the disadvantaged). Includes within the definition of special purpose institution a partnership, limited liability company, the state, a state agency, or a political subdivision that engages in specified activities. Provides that the approval of the board of county commissioners or governing body of a municipality is not required for the issuance of bonds by the issuing agency. Referred to Finance. 

Tax and fiscal policy: constraining budget growth

H. 764 TAXPAYER PROTECTION ACT {Russell, Blust}. Generally limits increases in General Fund expenditures that exceed General Fund expenditure limit for prior fiscal year increased by percentage rate equal to fiscal growth factor (average of sum of inflation and population change for preceding three years). Requires that revenue in excess of General Fund expenditure limit, as adjusted, plus 25 percent of year-end General Fund credit balance be placed in an Emergency Reserve Trust Fund. Establishes limitations on use of Emergency Reserve Trust Fund (including two-thirds vote of each chamber of General Assembly to appropriate funds). If Trust Fund exceeds 5 percent of General Fund appropriations for nonrecurring expenditures, excess funds must be returned to taxpayers. Referred to Rules. 

Other tax and fiscal policy bills
H. 772 DEPOSITS ON BEVERAGE CONTAINERS {Edwards}. Requires consumers to pay refundable deposits on beverages sold in glass, metal, or plastic containers. Sets refund values as follows: for beverage containers containing any beverage but fortified or unfortified wine or liquor, 10 cents; for beverage containers of 50 milliliters or more containing fortified or unfortified wine or liquor, 25 cents. Requires manufacturers to emboss or imprint the refund value on the product label or container. Requires retailers to accept beverage containers from consumers and pay the consumer the refund value for the containers, subject to a maximum of 24 containers per consumer per day. Retailers may refuse to accept containers that are not labeled with the refund value, or that are not empty or are contaminated. A retailer may also refuse to accept containers if the retailer has contracted with a private redemption center approved by  Environment and Natural Resources. Vending machine operators who are not otherwise retailers of beverages covered by the law are relieved of the duty to redeem containers if they make arrangements with another retailer or a private redemption center to redeem the containers. Authorizes DENR to approve private redemption centers for the return of empty beverage containers. Requires that beverage containers be made of recyclable or recycled materials. Provides for civil penalties of up to $1,000 for violations of the act. Effective Jan. 1, 2002 and applies to beverage containers sold or offered for sale after that date. Referred to Rules.

H. 790 INCREASE DAMAGE LIMITS FOR MV ACCIDENTS {Starnes}. Increases amounts in defined accident types as follows: (1) a “major accident,” property damage of $4,000 or more (currently, $2,500 or more); (2) an “intermediate accident,” property damage of at least $3,500 but not more than $4,000 (currently, at least $1,500 but not more than $2,500); and (3) a “minor accident,” property damage of $3,000 or less (currently $1,500 or less). Effective Oct. 1, 2001. Referred to Insurance.  

H. 803 REORGANIZE SAVINGS INSTITUTION DIVISION {Church, Morgan}. Transfers the Savings Institution Division in the Department of Commerce to the State Banking Commission. Effective July 1, 2001. Referred to Financial Institutions.

S. 706 SOFT DRINK TAX {Kinnaird}. Reenacts the Soft Drink Tax Act, which was phased out beginning in 1997 and repealed as of July 1, 1999. Sets tax rate at $.02 per bottle, $2 per gallon of liquid base product, and $.02 per ounce of dry base product. All exemptions and administrative provisions unchanged. Effective July 1, 2001. Referred to Finance.


General government measures

S. 690 CENTENNIAL AUTHORITY CHANGES {Weinstein}. To amend the Facility Authority Act so as to clarify that the chancellor represents the interest of a constituent institution of the University of North Carolina. Excludes from GS 160A-480.3(g)(2) (provision on conflicts for members, officers, and employees of an Authority) chancellor of the main campus of a constituent institution of UNC within the county, or the chancellor’s designee. Provides that it is not a violation of GS 160A-480.3(g) for the chancellor of the main campus of a constituent institution of UNC within the county, or the chancellor’s designee, to participate in discussion of or vote on any matter, including but not limited to the execution of any contract by the Authority, where the matter relates to the interest of a constituent institution of UNC. Amends GS 160A-480.3( d) to provide that any bylaw adopted by an Authority that conflicts with the declared public policy of the state is void and unenforceable. Referred to Education.  

S. 708 REDUCE SCHOOL PAPERWORK {Horton}. Amends GS 115C-12 to place limits on information the State Board of Education, the State Superintendent, and the Department of Public Instruction (DPI) can require from local school units. Directs the state board to adopt rules to ensure local units are not required to (1) provide information already available on the student information management system or housed within DPI, (2) provide the same information more than once in a school year if information is unchanged, (3) complete forms for students with disabilities if forms are not required by the federal Individuals with Disabilities Education Act. Permits the state board to require information already on its student information management system or require the same information twice only if the state board can demonstrate a compelling need and that there is not a more expeditious manner of getting the information. Effective July 1, 2001. Referred to Education.

S. 710 DCR ADMISSION FEES-2 {Rand}. Allowing the Department of Cultural Resources to charge an admission fee to any museum, historic property, or other location or event administered by the department. Fees must be deposited into nonreverting account and will be used for maintenance, repairs, renovations, and other purposes. Referred to Finance. 

S. 712 DISTRICT JUDGE 8-YEAR TERMS {Rand}. Amends N.C. Constitution, if approved by voters at next statewide primary election, as title indicates (district court judges now serve four-year terms). If approved, constitutional amendment will become effective with 2002 general election. Referred to Judiciary I.

S. 716 POLL WORKER DISCHARGE {Kinnaird}. To give precinct election officials (chief judges, judges, and assistants) the same protection from discharge as jurors. Enacts new GS 163-41.2 to prohibit an employer from discharging or demoting any employee because the employee has been appointed as, or is serving as, a precinct official. Employers who violate section are liable in a civil action (one-year statute of limitations) for reasonable damages suffered by the employee as a result of violation, and must reinstate employees who were unlawfully discharged or demoted. Effective Aug. 1, 2001. Referred to Judiciary II.

S. 718 SUPREME COURT RULEMAKING {Clodfelter}. To provide the Supreme Court with authority to revise the rules of civil procedure and the rules of evidence, subject to amendment or veto by the General Assembly. Amends GS 7A-34 to delegate to the Supreme Court the General Assembly’s authority to adopt and amend the rules of civil and criminal procedure and the rules of evidence for the trial divisions of the Court of General Justice. Authorizes Chief Justice to appoint committees to advise court with respect to adoption or amendment of rules. Requires that new or amended rules be published in N.C. Register and become effective no earlier than thirty-first legislative day of next regular session of General Assembly that begins at least 25 days after publication. Provides that General Assembly may amend or veto any proposed new or amended rule and specifies procedure for doing so. Referred to Judiciary I.

New license plates on the way Bills were introduced this week to add three new kinds of "affinity" license plates to the dozens that already are available. They are: H. 789 "FIRST IN FURNITURE" SPECIAL LICENSE PLATE {Starnes}. To authorize the Division of Motor Vehicles to issue a "First in Furniture" special registration plate. DMV may not issue special plate unless it receives 300 applications. No additional fee will be charged. Referred to Finance.   H. 759 HARLEY OWNERS' GROUP LICENSE PLATE {Weiss}. To authorize the Division of Motor Vehicles to issue a "Harley Owners' Group" special registration plate. DMV may not issue plate unless it receives at least 300 applications. Fee will be $20 — $10 to special registration plate account, and $10 to collegiate and cultural attraction plate account transferred quarterly to State Board of Community Colleges to support motorcycle safety instruction. Referred to Finance.   H. 795 "CHOOSE LIFE" LICENSE PLATE {Gillespie}. To authorize the Division of Motor Vehicles to issue a "Choose Life" special license plate. Sets additional fee amount for plate of $25. Requires Division to transfer money derived from the sale of the plates to the Tri-County Crisis Prevention Center Inc. of Burnsville. Referred to Rules.

Committee actions and floor votes

The House on Wednesday gave second- and third-reading approval to H. 63 Child Bicycle Safety Act {McAllister} and H. 382 Adopt Strawberry as State Fruit {Russell} sent the measures to the Senate.

The Senate on Wednesday gave second- and third-reading approval to S.139 Local Flexibility/Charter School Teachers {Rand} and sent the measure to the House.

The House Transportation Committee on Wednesday amended and then favorably reported a bill, H. 69 Repeal Highway Use Tax Transfer in 3 Years {Bowie}, that would end the practice of diverting $170 million a year from the Highway Trust Fund to the General Fund. The transfer was started in 1989, when the sales tax on motor vehicles, which went to the General Fund, was changed to a user tax and earmarked for the Highway Trust Fund. The General Assembly then began dipping into the Highway Trust Fund to make up the difference. The House bill, which was re-referred to the Appropriations Committee, would begin phasing out the transfer in the 2003-04 fiscal year, eliminating it entirely by the 2006-07 fiscal year. Two years ago, the House approved eliminating the transfer, but the Senate did not agree. This year, the Senate will act first on the budget. 

The House on Thursday gave third-reading approval to H. 495 Left Turn on Red {Hensley} and sent the measure to the Senate.

The House Insurance Committee on Thursday favorably reported H. 109 Reimbursement for Marriage/Family Therapists {Alexander}.

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