APRIL 6, 2001

Senate rushes to meet deadline for filing bills

The staff of the Senate Principal Clerk's office had to work late into the evening Wednesday to catalogue and process a flood of more than 200 bills introduced in the Senate that day as members raced to beat the deadline for filing public bills and resolutions. So many bills were in the hopper that the 3 p.m. deadline had to be extended until 5:30 p.m. Roughly 1,100 separate pieces of legislation have now been introduced in the Senate since the session began on Jan. 24.

Members of the House, who as of Wednesday had authored 998 pieces of legislation, have until next Wednesday to file public bills and resolutions. The House and Senate adopt their own rules and deadlines. However, both chambers set April 26 as the crossover deadline, meaning that on that date a bill must have passed one chamber or the other to remain alive. The crossover deadline is generally considered the midway point of the session.

Among the bills filed at the deadline Wednesday was S. 986, a measure by Senate Majority Leader Tony Rand (D. Cumberland) calling for a voter referendum on establishing a state lottery, with the proceeds going to education. Gov. Mike Easley has called for such a lottery. The bill earmarks net proceeds from a lottery to a voluntary preschool program for at-risk four-year-olds and to reduce class sizes. It also specifies that lottery funds "shall supplement and not supplant other state funds appropriated for education." Other measures filed include:

S. 1098, filed by Sen. Brad Miller (D-Wake) which would impose a moratorium on new billboards along I-40 from the Tennessee border to Wilmington. An existing ban on new billboards from Wilmington to the Triangle was set to expire.

S. 1088, filed by Sen. Dan Clodfelter (D-Mecklenburg), would create a state earned income credit, phase out the remaining 2 percent sales tax on food collected by local governments, reduce the marriage penalty, expand the homestead exemption, provide additional sales tax revenues for local governments, give those governments other "revenue options" and repeal some reimbursements to cities and counties for repealed taxes.

S. 1089, filed by Sen. Charlie Albertson (D-Duplin), would extend the existing moratorium on new hog farms.

Other important measures were filed in the House and Senate this week and are grouped by category below.


Education

The first bill aimed at satisfying a judge's decision that the state must begin delivering adequate services to at-risk 4-year-olds was filed in the Senate. The measure by Sen. Charlie Albertson (D-Sampson) attacks the spending side of the problem by raising the state sales tax by half a cent and allowing local governments to raise the local sales tax by a like amount. The measure would create the Basic Education Opportunities Fund that would administer the program. The bill is summarized below:

S. 773 EDUCATION OPPORTUNITY & EXCELLENCE ACT {Albertson}. Provide additional funding for educational opportunities for at-risk students by raising the state sales and use tax by one-half cent and to provide additional funding for public school construction at the local level without increasing property taxes by authorizing counties to levy an additional one-half cent local sales and use tax. Increases the state sales tax from 4% to 4.5%. Creates Basic Education Opportunities Fund in Department of Public Instruction administered by State Board of Education to meet constitutional obligation to provide all students with sound basic education, improve academic performance of children identified as at risk of academic failure, reduce school discipline and behavioral problems, and reduce student dropout rates. Authorizes local board of education and board of county commissioners to apply jointly for grants to meet particular need in local school administrative unit. Authorizes counties to levy third supplemental local government sales tax of one-half cent. Tax must be approved by voters in referendum. Counties may use net proceeds of tax only for public school capital outlay purposes or to retire indebtedness incurred for those purposes. Municipalities must use 50% of tax proceeds for water and sewer capital outlay projects. Local governments that receive tax proceeds must continue to spend for specified purposes the same amount as they would have spent for those purposes if tax had not been levied. State sales tax provision is effective July 1, 2002. Creation of Basic Education Opportunities Fund is effective Oct. 1, 2002. Local sales tax may not become effective before July 1, 2002. Referred to Finance.


Other education bills

S 762. ENSURE FAIRNESS IN SCHOOL TESTING PROGRAM {Lucas}. Enacts several provisions relating to the use of standardized tests in public schools: Prohibits a principal from determining appropriate grade for pupil solely on the basis of standardized test scores. Requires a local board of education to provide a child’s parent or guardian the right to appeal a decision to retain a child if local board policy requires child be retained at a grade level or attend summer school, based on standardized test scores. Requires school to provide parent or guardian a copy of any test administered and a copy of the student’s actual graded or evaluated test. Requires schools to identify students who have been placed at risk for academic failure and implement a free personal education plan for academic improvement with focused intervention and performance benchmarks. Activities in plan and transportation must be free of charge to students. Referred to Education 

S 735. CHANGE EDUCATION CABINET MEMBERSHIP {Dalton}. Adds president of the N.C. Independent Colleges and Universities to the state Education Cabinet, which already includes the president of the UNC System, the president of the Community Colleges, the chairman of the State Board of Education and the Superintendent of Public Instruction. Referred to Education. 

S. 744 TEACH PERSONAL FINANCIAL LITERACY IN SCHOOLS {Hagan, Bingham}. Prohibits a person, firm, or corporation engaged in lending money from delivering to a person an unsolicited check made out to the recipient . Requires State Board of Education to develop personal financial literacy curriculum and establish up to five pilot projects to determine best methods of equipping students with knowledge and skills to become self-supporting and to make critical decisions regarding their personal finances. Referred to Education. 

S. 778 CRIMINAL HISTORY CHECKS OF SCHOOL EMPLOYEES {Hartsell}. Amends GS 115C-332 to provide local school boards with criminal history from State and National Repositories of Criminal Histories of any school personnel or applicant for position (was, applicant) for any position for which board requires criminal history check. Board to determine if applicant or employee poses threat or is otherwise unsuitable for employment. Board may delegate duty to superintendent. Provides that applicant who willfully gives false information on employment application that is basis for criminal history record check is guilty of a Class A1 misdemeanor. Referred to Education. 


Workers comp

S. 839 WORKERS' COMP CARRIERS/THIRD-PARTY CLAIMS {Rucho}. Prohibit workers' compensation carriers from increasing premiums, reducing coverage, or increasing an employer's loss modification factor when the injury of that employer's employee is caused by a third party. Referred to Insurance.  

S. 880 WORKERS' COMP/HEALTH & DISABILITY REIMBURSEMENT {Soles}. To overturn the case decided by the 2000 Court of Appeals of North Carolina entitled Hansen v. Crystal Ford-Mercury, by providing that insurers that provide health benefit plans, disability income plans, or any other health insurance are not real parties in interest in any proceeding or settlement under the workers’ compensation act and to prohibit insurers that provide health benefit plans from offsetting against provider reimbursement any charge for medical services unless the specific medical charges were found to be compensable according to a final adjudication under the workers’ compensation act or a settlement agreement under the act approved by the North Carolina Industrial Commission. Referred to Judiciary I.  

S. 881 WORKERS' COMP AWARDS FILED AS JUDGMENTS {Soles}. Provide that agreements, orders, and final awards under the workers' compensation act may be entered as judgments by the clerk of Superior Court in the county in which the injury occurred. Referred to Judiciary I.  


Health care

S. 781 HEALTH INSURANCE: CLINICAL TRIALS COVERAGE {Odom}. Require health insurance plans and the Teachers' and State Employees' Comprehensive Major Medical Plan to provide coverage for patient costs incurred as a result of treatment provided in a clinical trial for all cancers and for life-threatening, degenerative, or permanently disabling conditions. Requires that coverage include coverage for patient cost incurred for drugs and devices approved for sale by U.S. FDA, whether or not FDA approval has approved drug or device for use in treating the patient’s particular condition. Requires insurers to provide process for expedited review of request for coverage denied by insurer, with review and final determination within five business days after request for review is received. Referred to Insurance.  

S. 822 STATE SELF-FUNDED HEALTH CARE PLAN {Rand}. Authorize the executive administrator and board of trustees of the Teachers' and State Employees' Comprehensive Major Medical Plan to adopt an arrangement for an optional prepaid hospital and medical benefits program as an alternative to those currently available. Referred to Insurance.  

S. 788 MENTAL HEALTH/CHEMICAL DEPENDENCE PARITY {Hartsell}. This companion bill to a measure offered in the House last week, H. 808, was referred to State & Local Government.

H. 848 INCOME TAX HEALTH CREDIT {Arnold}. Enacts new state income tax credit equal to 7% of amount paid for health insurance premiums, medical exams related to sight or hearing, hearing aids, or prescription eyeglasses for taxpayer or taxpayer’s dependent child. Effective for taxable years beginning on or after Jan. 1, 2002. Referred to Finance.

H. 934 C.O.N.-ADULT CARE HOMES REGULATED {Nye, Earle}. Regulates the development of adult care homes under the certificate of need law. Referred to Health.


Tax issues

S. 792 AMEND SALES TAX {Plyler, Purcell, Hartsell}. Adds GS 105-164.4( a)(1g) applying rate of 2.73% to sales price of electricity that is separately metered or separately measured to manufacturing industries and plants for use in connection with operation of industries or plants other than sales of electricity to be used for residential heating purposes. Quantity of electricity purchased or used at any one time not a determinative factor as to whether its sale or use is subject to tax rate in this section. Referred to Finance.  

S. 807 BROADBAND INTERNET TAX CREDIT {Reeves, Hartsell, Hoyle}. Adds new section to GS Ch. 105, Art. 3B, Business and Energy Tax Credits, to provide tax credit to taxpayer providing broadband internet access services. Credit is 10% of expenditures on equipment offering to rural or underserved subscribers current broadband services (1.5 billion bits/second from server to subscriber), and 20% of expenditures on equipment offering to such subscribers next generation service (22 billion bits/second). Total credits allowed not to exceed $750,000. Effective Jan. 1, 2002. Referred to Finance.

S. 859 INTERSTATE RECIPROCAL TAX AGREEMENTS {Webster}. To exclude from income tax wages received by a nonresident from work performed in this state if that individual's home state has a similar law and to make conforming changes. Effective for tax years beginning on or after Jan. 1, 2002. Referred to Finance.

S. 767 IT TRAINING TAX CREDIT {Reeves}. Providing a tax credit to a taxpayer that provides information technology training for employees. The credit equals the sum of wages paid to the employee during the training and the instructional costs of the training, with maximum of $1,500 per employee trained during the year. Credit is not available for wages paid to employee who is doing his/her job while being trained or for expenditure paid or reimbursed by a governmental entity. Taxpayer cannot claim both this credit and any other credit allowed for employee training with respect to the same training. Referred to Finance. 


Constitutional amendments

S. 787 JUDICIAL APPOINTMENT/VOTER RETENTION {Odom}. Amend the state constitution to provide for gubernatorial appointment of justices of the Supreme Court and judges of the Court of Appeals subject to confirmation by the General Assembly and to provide for retention by vote of the people. After Dec 31, 2002, any vacancy (including first appointment to newly-created judgeship) in position on Supreme Court or Court of Appeals is to be filled by appointment by governor, subject to approval by majority vote of each house of General Assembly. A person so appointed and confirmed is subject to a retention election at first statewide election for General Assembly held more than 60 months after appointment; a person retained by the voters is subject to retention election each 8 years thereafter. Proposed rewrite of Article IV, section 16, also requires that Superior Court judges be elected by district (current provision permits election by district or statewide, at discretion of General Assembly). Directs that proposed amendment be submitted to voters at November 2002 general election. Referred to Judiciary II.  

S. 883 JUDICIAL APPOINTMENT/VOTER RETENTION {Clodfelter}. To amend the state constitution to provide for nomination of justices of the Supreme Court and judges of the Court of Appeals, gubernatorial appointment, and retention by vote of the people. Substantially similar to S 787, introduced 4/3/01, with the following differences: (1) does not provide for General Assembly confirmation of judicial appointments by the governor; (2) provides that the initial retention election for newly appointed judges and justices is to take place at the first statewide election more than 18 months after appointment; (3) makes justice and judge terms run through June 30, and makes conforming changes for transition treatment of sitting justices and judges; (4) adds a statement to the constitution that judicial appointments should be based on personal and professional fitness and be free from partisan politics. Referred to Judiciary I.  

Environment

S. 827 REMOVE LUST SUNSET/LAND-USE RESTRICTIONS {Plyler}. Repeals the sunset for certain provisions regarding cleanups of petroleum from leaking underground storage tanks. Provides that land-use restrictions imposed to reduce danger to public health at contaminated sites do not apply to cleanups of petroleum from leaking underground storage tanks. That amendment expires Sept. 1, 2001. This bill removes the sunset clause. Referred to Agriculture.  


General government
 
S. 809 LIVABLE STATE MINIMUM WAGE {Martin of Guilford and Lucas}. Raise the state minimum wage (currently set at the level of the federal minimum wage) to $6.15 per hour. Raises minimum wage further as follows: to $7 per hour on Labor Day, 2002, and to $8.50 per hour on Labor Day, 2003. Provides that if federal minimum wage rises above state minimum wage, state minimum wage to increase automatically to federal level. Effective Sept. 3, 2001. Referred to Commerce.  

H. 948 REDEFINE “SPECIAL ABC AREA” {Haire}. Amends GS 18B-101( 13a) to include in definition of special ABC area an area located in a county that borders another state, that has at least one city that has approved the operation of an ABC store, and in which the sale of unfortified wine and malt beverages is permitted countywide or in one city (was, in at least two cities). Referred to Alcoholic Beverage Control.  

S. 840 ESC ATTORNEYS FEES {Rucho}. Adds GS 96-15(l) to allow the ESC to award attorney’s fees, up to $500 (subject to appropriation having been made for that purpose) when party’s claim before an appeals referee or the commission has to be reconvened due to loss or unavailability of records or transcripts due to fault of the Commission. Referred to Insurance.  

S. 860 INTERSTATE TRUST BUSINESS {Clodfelter, Warren, Soles}. To authorize the chartering of independent trust companies and to permit banks and trust companies to conduct trust business on an interstate basis. Part 2, entitled the “Multistate Trust Institutions Act,” is intended to permit trust institutions to engage in the trust business on a multistate and international basis subject to the regulatory provisions of the act. Part 3, entitled the “State Trust Company Charter Act,” is intended to provide for the chartering of trust companies independent of banks and to permit those companies to engage in the trust business subject to the regulatory provisions of the act. The remainder of the act concerns oversight of these activities and institutions by the Commissioner of Banks. Effective July 1, 2001. Referred to Judiciary I.  

H. 967 COLLATERAL SOURCE EVIDENCE RULE {Russell}. Provides that in property damage, personal injury, or wrongful death actions, the court shall allow into evidence proof of collateral source payments made to the plaintiff from the following sources: (1) income disability or workers’ compensation or similar benefits; (2) health, accident, or disability insurance (other than life insurance, Social Security benefits, or pension payments); (3) HMO payments; (4) wage continuation plans. Referred to Judiciary II.  

S 759. TTA INSURANCE {Gulley}. Authorizes the state to enter into contracts with railroads that provide commuter rail service by or on behalf of the state allocating financial responsibility for claims against the railroad or the state in connection with passenger service. Contract must require the state to maintain liability insurance policy covering state liability and railroad for property damage, personal injury, bodily injury, and death arising from passenger rail service. Policy limits must be at least $50 million per occurrence and $50 million aggregate annually, subject to self-insured retention of at least $5 million secured by acceptable financial surety. Provides that aggregate allowable award to all persons for claims arising from a single incident may not exceed $50 million and that State and railroad will not be liable in excess of policy limits. Referred to Judiciary I.

S. 723 UNSOLICITED CHECKS TO SECURE LOANS {Bingham}. Requires disclosures and a warning on unsolicited checks that, when cashed, obligates the recipient to repay the amount of the check plus interest and fees, without making the disclosure specified in the act and providing notice of a three-day right to cancel the loan without penalty (other than returning the moneys received from cashing the check). Effective Oct. 1, 200. Referred to Commerce. 

S. 729 MOTORCYCLE INSURANCE RATES {Carrington}. Provide that motorcycle insurance rates are set in accordance with the law regulating insurance rates rather than established by the North Carolina Rate Bureau. Effective Oct. 1, 2001. Referred to Rules. 

H. 870 JUDICIAL CONTRIBUTIONS {Baker}. Prohibit attorneys from practicing before a judge to whom they have given a political contribution exceeding $100 for at least four years. Provides that violation of act is grounds for discipline by the N.C. State Bar. Referred to Rules. 
 
S. 731 TRANSPORTATION PLANNING {Clodfelter}. Requires each municipality not located within a metropolitan planning organization (MPO) and each MPO to develop a comprehensive transportation plan. For municipalities located within an MPO, development of plan will take place through the MPO. Provides that after completion and analysis of the plan, both the municipality’s governing body or the MPO and the Department of Transportation must adopt it. Authorizes DOT to participate in development and adoption of plan under specified circumstances. Provides that any change to plan becomes effective only if adopted by both the municipality or MPO and DOT. Allows municipalities and MPOs to develop a collector street plan to assist in developing the roadway network. Authorizes each county to develop a comprehensive transportation plan using procedures for municipalities. Referred to Transportation.


Local bills of interest

Charlotte/Mecklenburg
Rep. Ed McMahon (R-Mecklenburg) has introduced companion bills to four measures already offered in the Senate addressing issues important to Mecklenburg County. They are H. 850 CHARLOTTE ENTERTAINMENT TAX (=S 636), which authorize Charlotte to levy a gross receipts tax on certain entertainments offered in city-owned facilities; H. 851 MODIFY MECKLENBURG ROOM TAX USE (=S 634), which clarifies the purposes for which Mecklenburg County and Charlotte may spend occupancy tax proceeds; H. 852 CHARLOTTE LEASES (=S 625), which authorizes the Charlotte Auditorium-Coliseum-Convention Center Authority to lease or rent properties for terms up to 30 years; H. 853 CHARLOTTE RENTAL CAR TAX (=S 635), which authorizes Charlotte to levy a gross receipts tax on short-term rentals of certain vehicles; and H. 854 CHARLOTTE PUBLIC CONTRACTS EXEMPTION (=S 637), which allows Charlotte to contract for the design, construction, equipping, and furnishing of a new arena without being subject to the requirements of the law regulating public contracts.

S. 857 CHARLOTTE PHOTO RADAR {Odom}. Adds new GS 160A-300.2, applicable to Charlotte only, to authorize the city to adopt ordinance for civil enforcement of speed limit laws (maximum penalty $50) by means of photographic speed-measuring systems. Referred to Judiciary II.


Wilmington/New Hanover
H. 925 WILMINGTON RIVER WALK DISTRICT {McComas}. Creates the Wilmington River Walk Tax District and authorizes the Wilmington City Council to levy to room occupancy tax of up to 3% of gross receipts from rental of accommodations. Requires tax district to use net proceeds of tax to construct, maintain and operate a convention center in or near the district; any excess not needed for convention center may be used only for tourism-related expenditures to benefit district. Amends method of distribution of net proceeds of New Hanover County occupancy tax to provide for distribution to new tax district tax; this provision is effective Sept. 1, 2001 and applies to taxes that accrue on or after that date. Permits City of Wilmington and the Wilmington River Walk Tax District to contract for design and construction of convention center without being subject to GS Ch. 143, Art. 8; this provision is repealed effective July 1, 2006. Referred to Rules.

H. 926 MODIFY NEW HANOVER ROOM USE TAX {McComas}. Provides that 60% of net tax proceeds will be used by county for beach nourishment projects in areas of Kure Beach, Wrightsville Beach, and Carolina Beach that undergo regular nourishment under an agreement with the US Army Corps of Engineers and for loans to local governments for beach nourishment in other areas approved by county commissioners and the three beach towns. Establishes formula for use of remaining tax proceeds by beach towns for (a) promotion of travel and tourism and (b) tourism-related expenditures (including public beach access. Effective Jan. 1, 2002; applies to taxes collected on or after that date. Referred to Local Government II. 

Clinton/Sampson
H 930. SAMPSON/CLINTON ROOM TAXES {Bell}. Authorizes Sampson County Board of Commissioners to levy a room occupancy tax of up to 3% of gross receipts from rental of accommodations and to create a county Tourism Development Authority. Authority must use at least two-thirds of proceeds to promote travel and tourism in Sampson County and the remainder for tourism-related expenditures. Provides authorization for Clinton City Council to levy this tax and to create city Tourism Development Authority, which must use proceeds of tax as described above. Referred to Finance.

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