APRIL 12, 2001

Universities submit list of fee-supported capital projects

It’s usually just pro forma, but the General Assembly last week began the yearly task of giving the UNC System permission to begin construction on projects that don’t require taxpayer support. Each year the university system submits a list of projects that will be paid for through user fees, student fees and other revenue sources independent of state appropriations.

N.C. State University, with nearly $200 million in fee-supported capital projects planned, will see far more construction than any of the 16 UNC System campuses. More than half of that is tied up in a proposed $103 million expansion to State’s football stadium.

Here is this year’s list, as described in S. 986 UNC NONAPPROPRIATED CAPITAL PROJECTS, introduced by Sen. John Kerr (D-Wayne):

Appalachian State University
Student recreation complex, $19,530,000
Renovation and addition to Miles Annas Student Support Facility, $1,977,000
East Carolina University
Baseball stadium, $8,700,000
North Carolina A&T State University
Student union renovation, $3,600,000
Stadium tract and field upgrade, $2,065,000
Reid greenhouse, $2,500,000
North Carolina Central University
Shepard House restoration. $685,000
North Carolina State University
Alumni center, $25,000,000
Carter Finley Stadium improvements, $103,000,000
Center for Educational Innovation, $9,000,000
Greek housing renovations, $8,000,000
Upgrade baseball and tennis facilities, $4,000,000
Partners V building, $30,000,000
Welcome and Visitors Center, $4,960,000
Residence halls fire safety improvements, $1,300,000
Support Services Center, $2,000,000
University of North Carolina at Chapel Hill
Ramshead complex, $4,000,000
Renovations to Connor, Winston, and Alexander halls, $10,000,000
University of North Carolina at Charlotte
Recreation field lighting, $930,100
University of North Carolina at Greensboro
Parking deck supplement, $2,500,000
Renovations to residence halls, $4,950,000
Western Carolina University
Improvements to athletic facilities, $8,192,100
Winston-Salem State University
Renovations to Residence Halls, $3,100,000.

The legislation would allow N.C. State to construct and finance the Alumni Center through a lease with the university’s Alumni Association and the improvements to Carter Finley Stadium through a lease with the university’s Student Aid Association. The bill was referred to the Finance Committee.

Many important bills filed at deadline

We’re still sorting through the dozens of pieces of legislation filed in the Senate at the end of last week as that chamber hit its bill-filing deadlines. The House hit its bill-filing deadline Wednesday and officials said more than 200 bills were filed at the last minute. Next week we will give you a list of important measures that snuck under the wire in the House.

Under rules each chamber adopted at the beginning of the current sessions, members of the Senate had until April 4 to file bills and members of the House had until April 11 to do so. The next major deadline is Thursday, April 26, the so-called “crossover” deadline when any bill that has not been passes in other chamber or another automatically dies. 

From the flood of bills introduced in the last few days, mainly in the Senate, we have culled out the 75 or so ones summarized below as of most interest to NCCBI members. They are sorted by categories (banking and finance, business and industry, economic development, education, election law and campaign finance, environment, government operations, health care, law and the courts, and tax and fiscal policy).


Banking and finance

S. 890 MONEY TRANSMITTERS ACT {Hagan}. Establishes licensing and regulatory program for those engaged in sale or issuance of payment instruments (such as money orders or travelers checks) and those engaged in the business of receiving money for transmission within the US or abroad. Requires a license from the Commissioner of Banks to engage in this business within the state (including making an internet website available to persons within the state). Federal, state, and local governments are exempt, as are banks, credit unions, and savings and loan associations. Sets license qualifications, application procedures, bonding requirements, and application fees ($500 investigation fee, $1,000 plus $10 per location annual application fee (location fee not to exceed $5,000). Provides for reports, examinations, and record keeping by licensees. Regulates those acting as authorized delegates of licensees. Provides for administrative hearings and enforcement procedures (civil penalties not to exceed $1,000 per violation, injunctive relief, and criminal penalties of a Class J felony for money transmission without a license, a Class I felony for false statements with an intent to deceive in filings, and Class 1 misdemeanor for any other violation). Authorizes Banking Commission to adopt implementing rules and designates Secretary of State to serve as licensee’s agent for accepting service of process. Effective Oct. 1, 2001, and applies to contracts entered into on or after that date. Referred to Judiciary II.

S. 904 MORTGAGE LENDERS AND BROKERS LICENSURE {Gulley}. Repeals GS Chapter 53, Art. 19, which establishes a registration system for mortgage lenders and brokers, and replaces it with a new GS Ch. 53, Art. 19A, establishing a licensing system for such persons. Prohibits persons from acting as mortgage lenders or as mortgage brokers without license from state Commissioner of Banks, and sets out various exemptions to licensing requirement. Allows persons currently registered as mortgage lenders or brokers to continue to operate until April 30, 2002, by which time they must be licensed under this act. Effective April 1, 2002. Referred to Judiciary I.

S. 1023 REVISE UNIFORM ELECTRONIC TRANSACTIONS ACT {Hagan}. Provides that a consumer transaction will be deemed to have been entered into in N.C., if the consumer is located in N.C. and the transaction is subject to a N.C. statute, regulation, or rule of law requiring that information relating to the transaction be provided or made available to the consumer in writing, and such information is created or documented by an electronic record. Effective Oct. 1, 2001. Referred to Judiciary II.

S. 1064 MORTGAGE LENDING ACT {Soles}. Adds new GS Chapter 93F requiring a license, from Commissioner of Banks, in order to engage in mortgage lending or mortgage brokering in N.C.; also requires persons soliciting and accepting applications for mortgage loans, as employee of another, to be licensed. Requires each licensed mortgage banker and mortgage broker to have managing principal in full charge of business, and to have branch manager in charge of each branch office. Provides for automatic licensing for persons currently registered as mortgage broker or banker and for persons currently working as loan officers. Referred to Commerce.

Business and industry

S. 971 NET METERING/UTILITIES {Kinnaird}. Requires North Carolina utilities selling electric power to offer net metering to customers having their own on-site, small-scale, renewable-fueled electric generating facilities. Net metering means measuring the difference between the electricity supplied by the utility and the electricity generated by the customer-generator that is fed back to the utility, and then billing only for the difference. Applies only where the customer-generator uses solar, wind, biomass, biogas, or hydroelectric energy to generate electricity, and only where customer-generator has generating capacity below 10 kilowatts for residential customers and 100 kilowatts for commercial generators. Effective July 1, 2001. Referred to Commerce.

S. 897 LABOR COMMISSIONERS FEE AUTHORITY {Weinstein}. Authorizing the Commissioner of Labor to establish fees relating to elevator and amusement device inspections and certifications. Effective Oct. 1, 2001. Referred to Finance.

S. 899 MOTOR VEHICLE GLASS REPAIRS {Wellons}. Amends GS 58-3-180 to specify that an insurance policy covering damage to a motor vehicle must allow the claimant to select the repair service or source for repair or replacement of automobile glass. Effective Oct. 1, 2001. Referred to Insurance.
 
S. 908 HOMEBUILDER RESPONSIBILITY {Clodfelter}. Adds new Art. 1B (“Homebuilder Responsibility Act”) to GS Ch. 87 directing the State Licensing Board for General Contractors to develop and implement rules establishing minimum experience requirements (up to a maximum of four years) for applicants for licensure as general contractors, providing credit for a portion of any experience requirement for technical training or certification or for a bachelors or graduate degree in architecture, engineering, construction management, or related field (this requirement not to apply to people licensed before adoption of the minimum experience rules). Also directs the board to adopt rules establishing minimum amounts of commercial general liability insurance each contractor must maintain. Effective Jan. 1, 2002. Referred to Judiciary I.

S. 1003 SOLICITATION-FREE DINNER ACT {Gulley}. Restrict telephone solicitation to the hours between 8:00 a.m. and 6:00 p.m. and increases the penalty for violation of the telephone solicitation statutes to up to $5,000. Effective Oct. 1, 2001. Referred to Commerce.

S. 1036 BUILDING CODE SUBJECT TO APA {Hoyle, Rand, Kerr, Foxx}. Amends GS 143-138 to provide that the N.C. State Building Code is a rule within the meaning of the N.C. Administrative Procedure Act (APA) and must be adopted in accordance with the procedural requirements of that act. Referred to Judiciary I.
 
S. 1049 DISCOUNT CARD PRIVACY PROTECTION ACT {Metcalf}. Prohibits a merchant from disclosing the personal information gained from issuing a customer discount card to any other person without the written authorization of the customer. Referred to Commerce.

S. 1098 OUTDOOR ADVERTISING ALONG I-40 {Miller}. To place a moratorium on outdoor advertising along Interstate 40. Extends moratorium originally established in 1999 and extended in 2000. Extends moratorium to include the entire portion of I-40 in N.C. from the Tennessee state line to Wilmington. Referred to Judiciary II.


Economic development

S. 1050 NORTH CAROLINA TOURISM DEVELOPMENT ACT {Metcalf}. To provide tax incentives for capital tourism projects in tier one, two, and three counties, and to create the travel and tourism capital incentive grant program. To be eligible for the credit, the taxpayer must: (1) qualify as an “attractor,” defined as a tourism facility that draws tourists to a local area for one or more days on its own merits, is designed primarily to attract tourists rather than local residents, and invests its own capital to market its products and services; (2) meet specified wage standards; (3) be located in an enterprise tier one, two, or three area or in a development zone; (4) provide health insurance for the jobs for which the credit is claimed; (5) certify that the taxpayer has no pending administrative, civil, or criminal enforcement actions based on alleged violations of environmental laws, or final determination of responsibility for any significant violation of those laws; (6) certify that the taxpayer has no outstanding citations under the Occupational Safety and Health Act and has had no serious violation of that Act within the previous three years; and (7) has five or more full-time employees and hires an additional employee during the taxable year. The amount of the credit is based on the enterprise tier in which the taxpayer is located and is increased by $4,000 if the position is located in a development zone. In tier one, the credit is $12,500; in tier two, $4,000; and in tier three, $3,000. Allows a tax credit for a taxpayer that purchases or leases eligible tourism property and places it in service in an enterprise tier one, two, or three area during the taxable year. The credit is equal to 7 percent of the excess of the eligible investment amount over the following thresholds: for tier one, $0, for tier two, $100,000; and for tier three, $200,000. A taxpayer that takes a credit under this program may not take any other credit with respect to the same jobs or property. Referred to Finance.

S. 944 EXPAND CALL CENTERS ELIGIBLE FOR BILL LEE ACT {Berger}. Allows call centers located in enterprise tier three areas to be eligible for credits under the Bill Lee Act (now only in tier one and two counties). Referred to Finance.

H. 991 BILL LEE ACT STUDY {Tucker}. Authorize the Legislative Research Commission to study issue regarding the equity and impact of the Bill Lee Act.. Directs study to investigate enterprise tier system and effect of Lee Act incentives upon business location and expansion. Referred to Rules.

S. 1042 HOSPITALITY/TOURISM JOB TRAINING FUNDS {Hoyle}. To appropriate funds to the Department of Commerce for the purpose of conducting and promoting hospitality and tourism job training programs. Appropriates $215,000 for 2001-2002; $100,000 is for a tourism job training coordinator and a clerical assistant, $65,000 is for a training coordinator to start a specified restaurant, food service, and lodging curriculum for high school students, and $50,000 is for promotion and coordination of job training programs and conducting regional conferences. Referred to Appropriations.

S. 1045 BILL LEE ACT CHANGES {Hoyle}. Amends GS 105-129.5(c) to provide that unused tax credits for research and development activities under GS 105-129.10 may be carried forward for the succeeding 15 years. Amends GS 105-129.4(b4) to provide that the taxpayer must certify that there are no Occupational Safety and Health Act (OSHA) final orders within the past three years for willful serious violations or for failing to correct such violations. Imports the definition of “serious violation” from GS 95-127. Requires taxpayer also to certify that within the preceding three years the taxpayer’s rate for lost workday injury and illness cases is at or below the 75th percentile, as those rates are published by the Bureau of Labor Statistics. Extends expiration date of provisions in SL 1998-55 allowing Piedmont Triad International Airport to contract for the design and construction of an air freight distribution facility on airport property from Jan. 1, 2004 to July 1, 2007. Referred to Finance.
 

Education

S. 1076 HIGH PRIORITY SCHOOL ASSISTANCE & ACCOUNTABILITY ACT {Lee}}. Enacts act cited in title to address problems of lowest-performing schools. Appropriates $12,246,878 for 2001-2002 and $15,930,285 for 2002-2003 from General Fund to Department of Public Instruction, State Aid to Local School Administrative Units, to provide lowest-performing elementary schools with tools to improve student achievement. Funds are to be used for the 38 elementary schools at which, in 1999-2000 school year, over 80% of students qualified for free or reduced-lunch prices and no more than 55% of students performed at or above grade level. Allocates funds for (1) reducing class size in kindergarten through third grade to no more than 17 students, (2) extension of teachers’ contracts at these schools by 18 days, (3) costs, other than cost of teacher salaries, of adding at least 10 instructional days each year, (4) recruiting and retention incentives, including signing bonuses and housing subsidies, for three teachers at each of the 38 schools, and (5) state-identified leadership teams for a period of no less than four years to the first five schools requesting leadership teams. Also appropriates $5,521,000 for 2001-2002 and $5,371,000 for 2002-2003 from General Fund to Department of Public Instruction, State Aid to Local School Admin. Units, to expand the pool of qualified teachers and to provide recruitment and retention incentives to attract and retain high-quality teachers to low-performing schools and schools with shortages of teachers in certain areas of certification. Appropriates $4,573,196 for 2002-2003 from General Fund to State Board of Education to implement specified strategies at continually low-performing schools, if strategy has not been implemented previously with state funds. Amends GS 115C-105.25(b) to allow local boards of education, in accordance with a school improvement plan, to transfer up to 15% of state funds allocated for teacher assistants for use for personnel to staff day care centers for teachers’ children. Referred to Appropriations.

S. 898 STUDENT CITIZEN ACT OF 2001 {Dalton, Carter, Lucas}. Modifies GS 115C-81 regarding the Basic Education Program to require the high school and middle school social studies curricula to include instruction in civic and citizenship education (at the high school level to be offered as a one-week unit or throughout the year). Specifies items encouraged to be included within the curricula. Amends character education curriculum requirements to include items on responsibility for school safety, service to others, and good citizenship. Amends GS 115C-391(a) to direct local boards of education to adopt reasonable dress codes. Effective July 1, 2001, with curriculum revisions to be implemented for the 2002-03 school year and the dress code provision effective for the 2001-02 school year. Referred to Education.

S. 914 AMEND LAW REGARDING SCHOOL CONSTRUCTION PROJECTS {Dalton}. Amends GS 115C-521 to (1) add to the requirements that a board of education must meet before investing any money in any new building a requirement to ensure that the proposed construction complies with all applicable requirements of the State Building Code and of local building and electrical codes, and (2) to add to the circumstances in which a school board may contract for the erection of a building on land not owned by the board in fee simple (a) entering operational leases and (b) entering lease or lease-purchase agreements for the operation of a school building as authorized by local legislation. Effective July 1, 2001. Referred to Education.

S. 927 MODIFY LAWS RE: STUDENTS WITH DISABILITIES {Lucas}. Throughout Article 9 (“Special Education”) of GS Ch. 115C, substitutes the term child (or children) “with disabilities” for the term child (or children) “with special needs.” Amends GS 115C-108 to redefine “special education” (1) to include within the term vocational training and training in development of awareness of the environment and the skills necessary to move effectively and safely from place to place and (2) to clearly distinguish between the components of special education and the components of “related services,” defined to mean the set of services that may be required to assist a child with a disability to benefit from special education, and includes the early identification and assessment of disabling conditions. Within the new statutory section on “related services,” the bill adds new definitions of the following terms: audiology, counseling services, early identification, medical services, occupational therapy, orientation and mobility, parent counseling and training, physical therapy, psychological services, recreation, school health services, social work services in schools, speech-language pathology, and transportation (this last term to include travel to and from school and between schools, travel in and around school buildings, and specialized equipment (such as special or adaptive buses, lifts, and ramps), if required to provide special transportation for a child with a disability. Referred to Education.

S. 933 SIMPLIFY REEMPLOYMENT OF TEACHERS/PRINCIPALS {Harris, Lee, Carpenter, Dalton, Dannelly, Foxx, Garrou, Garwood, Hartsell, Lucas, Martin of Guilford, Moore, Purcell, Wellons}. To enable retired teachers and principals to return to the public schools the next year without losing retirement benefits, as follows: (1) if the person has been retired for at least 12 months, he or she may be reemployed at same school from which retired; (2) the person may work the year subsequent to retirement at a different school from the one from which he or she retired. Effective July 1, 2001, and expires July 1, 2003. Referred to Education.

S. 939 MORAL, ETHICAL, AND VIRTUOUS EDUCATION {Odom}. Authorizes local boards of education to have materials posted to educate students about the moral, ethical, and virtuous principles of the world's religions and the great philosophers of civilization. Provides that Ten Commandments and Torah are examples of material that might be posted, and requires that materials must include principles from several religions and philosophies. Referred to Education.

S. 1029 COMPETITIVE BIDS/FOOD/BEVERAGES IN SCHOOLS {Garrou}. Requires local school administrative units to competitively bid all contracts for food and beverage services under the laws relating to food service in public schools and authorizing the Secretary of Administration to adopt rules to implement the competitive bidding process. Milk is not to be considered a beverage for this purpose. Referred to Commerce.


Election law and campaign finance

S. 1054 VOTER-OWNED ELECTIONS ACT {Gulley}. To phase in a voluntary program that gives candidates for certain elective offices the option of choosing to finance their campaigns from a publicly supported fund, provided that they gain authorization to do so from registered voters and that they abide by fund-raising and spending limits . Adds new Art. 22D (“The Voter-Owned Elections Act”) to GS Ch. 163. Applies to elections for Council of State offices in 2004, elections to the General Assembly in 2006, and to Governor and Lt. Governor in 2008. Provides that a candidate may choose to raise campaign funds as is currently done, or may choose to be funded through the North Carolina Democracy Fund established by the bill. If a candidate chooses to be funded through the Fund, the candidate may not accept other contributions. To be eligible to receive funding through the Fund, a candidate must receive “qualifying contributions” from individuals (within time frames before an election specified in the bill) in amounts of between $10 and $100 per individual contributor. A candidate for Governor must receive 7,000 qualifying contributions, a candidate for Lt. Governor or Council of State Seat 3,000, a candidate for State Senator 400 and a candidate for State Representative 200. Once the candidate has received the requisite number of qualifying contributions, he may not accept any other contributions other than payments from the Fund. Referred to Judiciary I.

H. 977 EARLY VOTING {Nesbitt}. Amends GS 163-226 and 163–230.1(a) and deletes GS 163-227.2(a1) to remove all excuses from the requirements for absentee voting (current law requires for most absentee voting that the voter must expect to be absent from the county on election day, be incapacitated, or be incarcerated). Effective Jan. 1, 2002. Referred to Election Law.

H. 978 EARLY VOTING FUNDS/GRANTS {Nesbitt}. Directs the State Board of Elections to make grants in the following amounts to assist the indicated counties for costs incurred in satellite absentee voting in the 2000 general election (grants are to be made from funds previously appropriated): Buncombe $15,000; Chatham $5,000; Durham $10,000; Edgecombe $5,000; Lenoir $10,000; Orange $5,000; Wake $10,000. Referred to Appropriations.

S. 1002 CAMPAIGN FINANCE ENFORCEMENT {Gulley}. Strengthen the campaign enforcement and disclosure laws by add inga new civil penalty (in addition to current criminal provisions) for making or receiving an illegal campaign contribution. Authorizes the State Board of Elections to impose a civil fine of up to $20,000 or three times the contribution, whichever is greater, and to issue cease and desist orders, to order remedial actions, and to publicly reprimand the violator. Referred to Judiciary I.


Environment

S. 953 BAN CERTAIN WASTE FROM LANDFILLS {Odom}. Prohibits the disposal of corrugated cardboard, clean wood waste, and wooden pallets in landfills. Effective Oct. 1, 2001. Referred to Agriculture.

S. 954 CLARIFY PETROLEUM CLEANUP REQUIREMENTS {Odom}. Amends GS 143B-279.9 to require that a risk-based remedial action plan for cleanup of environmental damage resulting from a leaking underground storage tank that will not require that the site meet current standards plan include an agreement by the owner, operator, or other party responsible for the discharge or release of petroleum to record approved land-use restrictions. Provides that the restrictions are only to apply to the real property on which the source of the contamination is located and any real property on which contamination is located at the time the remedial action plan was approved, which property was owned or controlled by any owner or operator of an underground storage tank or other responsible party at the time the discharge or release is discovered or reported or at any time thereafter. Effective Oct. 1, 2001. Referred to Agriculture.

S. 955 ENVIRONMENTAL REMEDIATION NOT CAPITAL IMPROVEMENT {Odom}. Provides that environmental remediation and restoration activities are not state capital improvement projects. Referred to Agriculture.

S. 956 PAY FOR PERFORMANCE/LUST CLEANUPS {Odom}. Provides for performance-based cleanups of discharges or releases of petroleum from underground storage tanks. Amends GS 143-215.94B to provide that the Department of Environment and Natural Resources may each quarter allocate up to fifty percent of funds in the Commercial Fund that are not otherwise obligated for performance-based clean-ups. Allows Department to contract for such cleanups. Amends GS 143-215.94D to include similar provisions for the Noncommercial Fund. Effective July 1,2001. Referred to Agriculture.

S. 958 BROWNFIELDS POSITION {Odom}. Fund a position in the brownfields program to facilitate and expedite the cleanup and reuse of contaminated and abandoned properties throughout North Carolina. Appropriates $62,500 for 2001-2002 and $56,500 for 2002-2003 from General Fund to DENR. Effective July 1, 2001. Referred to Appropriations.

S. 972 SCRAP TIRE AMENDMENTS {Odom}. Removes sunset on scrap tire disposal tax (was to expire June 30, 2002). Authorizes Department of Environment and Natural Resources to use up to $55,000 or 3 percent of the revenue in the Scrap Tire Disposal Account, whichever is less, to support a position to assist local governments in developing and implementing scrap tire management programs. Referred to Agriculture

S. 973 UNDERGROUND STORAGE TANK PROGRAM FUNDS {Odom}. For 2001-2002, appropriates $247,500 from Commercial Leaking Petroleum Underground Storage Tank Cleanup Fund and $247,500 from Noncommercial Leaking Petroleum Underground Storage Tank Cleanup Fund to Department of Environment & Natural Resources. Effective July 1, 2001. Referred to Appropriations.

S. 984 ENHANCE STORMWATER REGULATIONS {Reeves}. Provides that the Environmental Management Commission shall assess the problem of sedimentation in certain waters of the state, revise the stormwater rules and program to address more completely the interrelationship between sedimentation and water quality in certain areas, and survey other waters of the state to establish a hydrographic baseline. Requires Environmental Management Commission to survey waters in developed areas to identify any threat to those waters posed by sedimentation and erosion resulting from construction or other land-disturbing activities. Based on the survey, Commission must revise the stormwater rules and program to require, among other things, that the best available scientific methods for protecting waters from sedimentation and erosion be implemented. Requires each local government to establish an office of stormwater management charged with reducing surface runoff. Directs Commission to survey waters in undeveloped areas for the purpose of developing a hydrographic baseline, to be used to establish stormwater standards that preserve predevelopment hydrography to the extent feasible. Amends mandatory standards for land-disturbing activity to require the use of sedimentation and erosion control devices and practices whenever a tract of more than one-quarter acre is subject to land-disturbing activity (currently required only when tract involved exceeds one acre). Referred to Agriculture.

S. 1011 CONSISTENT RISK-BASED REMEDIAL ACTIONS {Clodfelter}. Expands and make consistent the circumstances under which DENR shall allow for risk-based remedial actions. Referred to Agriculture.

S 1015. INDUSTRIAL/POLLUTION CONTROL FACILITIES FINANCE {Rand}. In the Industrial and Pollution Control Facilities Financing Act (GS Ch. 159C), this bill amends GS 159C-3(15a) to include within the definition of “special purpose project” bridges, tunnels, toll roads, museums, art galleries, improvements or remediations on brownfields properties, facilities for the generation and transmission of electricity or gas, and facilities leased or sold in an installment sale to state, an agency of the state, or a political subdivision. Also includes facilities to be used by a not-for-profit corporation in any activity in which such a corporation may lawfully engage. In the North Carolina Industrial and Pollution Control Facilities Pool Program Financing Act (GS Ch. 159D), this bill amends GS 159D-37(6b) to include within the definition of “special purpose institution” not-for-profit partnerships and limited liability companies and the state, agencies of the state, and political subdivisions. Amends GS 159D-45(f) to specify that the approval of the board of commissioners of the county is not a prerequisite to the issuance of the bonds under the act. Referred to Finance.

S. 1031 STUDY AIR QUALITY IMPROVEMENTS {Carter}. To direct the Senate Select Committee on Mountain Air Quality to study the use of tax incentives and to promote the improvement of mountain air quality. Referred to Rules.

S. 1033 ANIMAL WASTE MORATORIA AND STUDY {Odom}. To extend the moratoria on the construction or expansion of swine farms, to study funding options to improve animal waste management systems , and to plan the development of markets for by-products of animal waste managements systems. Extends the expiration date of the moratorium on Environmental Management Commission permits for new or expanded swine farms from July 1, 2001, to September 1, 2003. Referred to Agriculture.

S. 1034 ENVIRONMENTAL REPORT CONSOLIDATION {Odom}. Repeals, amends, or recodifies numerous session laws and general statutes requiring reports related to environmental issues. Requires Department of Environment and Natural Resources and NC State University to jointly establish the NC Water Quality Workgroup. Directs Workgroup to work collaboratively with designated state agencies to identify databases that can be used to formulate state water quality policies, to evaluate the databases, and establish priorities for obtaining information not available in the databases. Requires Workgroup to develop a water quality monitoring system, to be known as Rivernet. Requires Rivernet system to have the ability to trigger alarms and notify an appropriate member of the Workgroup when a monitoring station indicates a spill or a significant water quality or nutrient measurement event. Referred to Agriculture.

S. 1037 NO AIR PERMIT UNTIL FACILITY/EQUIPMENT OPERATIONAL {Hoyle}. Clarifies the event that triggers the requirement to obtain an air quality permit and to prevent a permit applicant's or a permittee’s financial investment in such facility or equipment from being used as the basis for challenging the decision on whether to issue the permit in a contested case regarding the applicant or permittee operating its facility or equipment prior to obtaining the permit. Referred to Agriculture.

S. 950 AMEND N.C. CONSTITUTION TO CONSERVE OPEN SPACE [Odom}. Amends the constitution, if approved by the voters in the 2002 general election, to levy an additional excise tax on transfers of real property to be used only to conserve open space, farmland, and surface waters; to create the North Carolina Open Space and Farmland Conservation Trust Fund. Directs the General Assembly to impose an additional excise tax of $1 on each $500 of the consideration or value of property conveyed, on each deed, instrument, or writing by which real property is conveyed after Jan. 1, 2003. The proceeds are to be paid to the fund, and are to be used only for grants for planning, acquisition, conservation, and administration of open space and farmland, and grants to finance projects that address water pollution problems and focus on upgrading surface waters, eliminating pollution, protecting and conserving surface waters, including urban drinking water supplies, and establishing a network of riparian buffers and greenways. Referred to Finance.


Government operations

S. 892 SECURITY STANDARDS FOR STATE IT {Reeves}. Provides for the adoption of enterprise-wide security and encryption standards for state government information technology. Adds new GS 147-33.89 directing the State Chief Information Officer, in consultation with the Information Technology Management Advisory Council, to establish an enterprise-wide set of standards for information security for all state agencies, including the legislative and judicial branches and the University of North Carolina. Referred to Information Technology.

S. 976 EXEMPT EMPLOYEE CHANGES {Soles, Weinstein}. Amends GS 126-5(c) to increase from one to two the number of confidential assistants to each elected or appointed department head that are exempt from the State Personnel Act. (2) Amends GS 126-5(d)(1) to specify that the Governor may designate exempt managerial positions up to 1% of the total number of full-time positions in each cabinet department listed in that subsection or 30 positions in that department, whichever is greater (now, maximum is 30). Referred to Commerce.

S. 977 LOCAL REGULATION OF KEGS OF MALT BEVERAGE {Allran}. Authorizes cities and counties to enact ordinances regulating the sale of kegs of malt beverages. Referred to Commerce.

S. 985 LEGISLATIVE COMPENSATION COMMISSION {Gulley}. Establishes the Legislative Compensation Commission to periodically review the compensation of members of the General Assembly. Commission to be composed of 15 members, 5 each appointed by the Governor, Speaker, and President Pro Tempore, none of whom may be members of the General Assembly, appointed for four-year terms beginning July 1, 2001. The commission is to review the compensation paid to members of the General Assembly in light of the actual time required of members, compensation of other legislatures with similar time responsibilities, and the need to allow North Carolinians of all walks of life to serve. The commission is to report in 2002 within 30 days of the start of that session, and then by Feb. 1, 2005, and every four years thereafter. Referred to Rules.
 
S. 1012 GOOD GOVERNMENT WORKFORCE DEVELOPMENT ACT {Foxx}. Provides that positions in state government that have been vacant for more than nine months are abolished. Provides for the transfer of the following workforce development programs to the Department of Labor: (a) the Governor’s Commission on Workforce Preparedness; (b) the Employment Security Commission; (c) the Division of Employment and Training; (d) the Work First Program; (e) the Food Stamp Employment and Training Program; (f) the Jobs Corps Outreach and Recruitment Program; and (g) the Division of Vocational Rehabilitation. Referred to Appropriations.
 
S. 1024 AMEND APPOINTMENT OF EMC MEMBERS {Carter}. Amends GS 143B-283 to provide for the possibility of reappointment of members of the commission appointed by the Governor (statute does not now provide for possibility of reappointment). Referred to Rules.
 
S. 1084 WORKERS' COMP. LOSS MODIFICATIONS AND STUDY {Berger, Foxx}. To require the North Carolina Rate Bureau to revise and refile a classification plan for loss modifications in workers' compensation insurance and to authorize the Legislative Research Commission to study workers' compensation insurance classifications, including the development and implementation of loss modifications. Referred to Rules.
 

Health care

H. 1002 HOSPITAL GOVERNING AUTHORITY {Wright}. Provide that the members of a hospital authority board are a public body and have the right to sue and be sued. Referred to Health. 

H. 1032 HEALTH INS./UR RETROSPECTIVE REVIEW LIMIT {Nye}. Amends GS 58-50-61(g) to provide that an insurer may use retrospective review for certification or noncertification of coverage only if there has been a failure to comply with applicable notification procedures for prospective or concurrent review or a failure to modify care as required by applicable standards communicated to the provider. Referred to Insurance.

S. 907 ORGAN DONATION PRESUMED {Lee}. Providing that organ donation by a deceased individual is presumed under certain circumstances. Effective Oct. 1, 2001. Referred to Judiciary II.

S. 911 COMPETITIVE HEALTH CARE INFORMATION {Rand}. Amends GS 131E-97.3 to extend the section to hospital authorities and to delete the proviso that makes any contract entered into by a public hospital a public record. Referred to Judiciary I.

S. 923.STATE PAYS FULL MEDICAID COST/PHASE-IN {Hartsell}. To phase out the county share of Medicaid cost over four years and to cover the cost of the county share by phasing out reimbursements to counties over four years. Referred to Appropriations.

S. 992 PROTECTED HEALTH INFORMATION {Rand}. In December 2000, the US Department of Health and Human Services issued a final rule regulating the privacy of medical information. Among other things, the federal rule contains provisions granting individuals the right to have access to confidential medical information about themselves. This bill codifies into state law the individual right-of-access provisions of the federal medical privacy rule. Referred to Judiciary I.

S. 1044 MORATORIUM ON HEALTH INSURANCE MANDATES {Hoyle}. To provide that health benefit plans shall not mandate additional coverage beyond what is required as of Dec. 31, 2001, with certain exceptions; and to authorize the Legislative Research Commission to study the issue of health insurance mandates. Referred to Insurance.

S. 1055 C.O.N. MODIFICATIONS WITH FEE {Horton}. Amends GS 131E-184 (exemptions from review) to exempt from certificate of need review the following projects and facilities: (1) an ambulatory surgical facility, ambulatory surgical program, specialty or multispecialty ambulatory surgical program, and imaging services attendant to a physician’s practice (including use of one or more magnetic resonance imaging scanners), if developed by an established practice or by a rural hospital within either’s county; (2) the conversion of a specialty ambulatory surgical program to a multispecialty ambulatory surgical program, or the addition of a specialty to a specialty ambulatory surgical program, if developed by an established practice or rural hospital within either’s county; (3) the acquisition of major medical equipment (other than lithotriptor equipment) by a rural hospital operating under a certificate of need; and (4) a change in bed capacity or the conversion of nonhealth service facility beds to health service facility beds in a rural hospital operating under a certificate of need. Requires an applicant for an exemption to certify that (1) licensed facilities will continue to maintain those licenses; (2) if a project or facility is subject to minimum standards established under state statutes or rule, it will continue to maintain those standards; (3) that the project or facility will provide nonselective necessary medical treatment to medically uninsured, medically indigent or low income persons, Medicaid recipients, and Medicare recipients; and (4) that the transfer of care of any patient is not based on the patient’s income or available health insurance coverage. Referred to Health Care.

S. 1072 MENTAL HEALTH PRACTITIONER ACT {Miller}. Requires that only persons licensed pursuant to act may practice as a mental health practitioner or identify themselves as mental health practitioners. Creates the N.C. Mental Health Practitioner Licensing Board consisting of seven members who serve staggered terms. Members are appointed by the Governor and must each be from a different congressional district. The members must be appointed on or before Jan. 1, 2002. Five members must be mental health practitioners licensed pursuant to the new act who have at least 5 years experience in mental health services and two must be members of the general public who are not licensed under GS 90 and are not the spouse of a person licensed under GS 90. Applicant for licensure must (1) be 18 years of age; (2) be of good moral character as determined by the Board; (3) hold a masters degree in a Board-approved program; (4) submit any documentation requested by the Board; and (5) successfully complete an examination administered by the Board. Licenses must be renewed every two years. Referred to Health Care.

S. 1079 REMOVE CAP ON STATE MAXIMUM HEALTH BENEFITS {Metcalf}. Removing the $4 million lifetime cap on the maximum lifetime benefit allowed participants in the state teachers' and state employees' comprehensive major medical plan. Referred to Insurance.


Law and the courts

S. 925 REQUIRE DNA TEST/FIRST DEGREE MURDER CASE {Rand}. To require DNA testing of defendant charged with first degree murder for which the state seeks the death penalty. Referred to Judiciary I.
 
S. 931 CAPITAL CASE/JUDGE OVERSEE DISCOVERY {Rand}. Provides that in capital cases, a Superior Court judge, upon motion of the state, shall conduct an in camera review of the state’s material to assure compliance with constitutional and statutory obligations to provide such material to the defendant. At the review the state shall provide the judge with all state material, other than work product, not provided to defendant; if the judge finds any such material discoverable, the judge is to direct the state to provide that material to the defendant, and the remaining material is to be sealed for appellate review. Effective Dec. 1, 2001. Referred to Judiciary I.

S 932. DNA TESTS/CONVICTED MURDERERS {Rand}. Provides that a defendant convicted of first degree murder and sentenced to death may have an opportunity for DNA testing if relevant to the defendant's assertion of actual innocence. Provides that court selects the test performer. Referred to Judiciary I.

S. 995 BUSINESS COURT FUNDS {Hagan}. Appropriates $42,000 for 2001-2002 and $42,000 for 2002-2003 from General Fund to Judicial Department for purpose indicated in title. Referred to Appropriations.


Tax and fiscal policy

S. 1058 CORPORATE AFFILIATE TRANSACTIONS {Kerr}. Adds new GS 105- 130.7A providing that for the purpose of computing its state net income for corporate income tax, a taxpayer must add interest expense and costs and intangible expense and costs paid or incurred to, or in connection with transactions with, “related members,” as defined by the bill. A related member is (1) a related person, (2) a component member as defined in Section 1563(b) of the Internal Revenue Code, or (3) a person to or from whom there would be attribution of stock ownership in accordance with Section 1563(b) if the phrase “5 percent or more” were replace by “20 percent or more” each place it appears in that section. Referred to Finance.
 
S. 1088 TAX RESTRUCTURING ACT OF 2001 {Clodfelter}. To create an earned income tax credit, phase out the remaining sales tax on food, reduce the marriage tax penalty, expand the property tax homestead exemption, provide additional sales tax revenue for local governments, authorize additional revenue options for local governments, and repeal certain reimbursements for repealed taxes. Referred to Finance.

S. 889 R&D TAX CREDIT {Reeves}. Adds a new GS 105-129.16D providing that a taxpayer that claims for the taxable year a federal income tax credit under section 41(a) of the Internal Revenue Code for increasing research activities is allowed a North Carolina tax credit equal to 15% of any increase in qualified research expenses in the state during the taxable year over the average amount of qualified research expenses in the state over the preceding three years (and 40% of any increase in basic research payments to constituent institutions of UNC during the taxable year over the average of the preceding three years). Provides for exchanges of the credit for cash (at 70% of the amount of the credit) or transfers to certain other taxpayers, in addition to permitted carryovers. Effective for taxable years beginning on or after Jan. 1, 2002. Referred to Finance.

H. 975 NO SALES TAX ON FREE PUBLICATIONS {Nesbgitt}. Adds new GS 105-164.13(39) to exempt from the sales tax sales of paper, ink, and other tangible personal property to commercial printers and publishers for use as ingredients or component parts of free circulation publications, and sales by printers of these publications to the publishers. “Free circulation publications” means publications that are published regularly and are mailed or otherwise distributed without charge. The ratio of news to advertising is not a factor. Effective July 1, 2001. Referred to Finance.

S. 1039 TECHNOLOGICAL DEVELOPMENT TAX CREDIT {Hoyle}. Creates a tax credit for losses due to a “qualified investment default.” A qualified investment default occurs when a technology development fund cannot make a required repayment of an investment in the fund, including any required payment of interest or other return on the investment. Provides that total amount of credits for qualified investment defaults that occur in any calendar year may not exceed the maturity ceiling for that year. Sets maturity ceilings for calendar years beginning with 2006. Referred to Finance.


Committee actions and floor votes

Bevacqua testifies for local superintendent bill
NCCBI Vice President of Governmental Affairs Leslie Bevacqua testified this week in support of S. 378 Education Degree Not Required/Local Superintendent. State law and State Board of Education policy now require that a local school superintendent have a principal certificate, which this bill would change. The bill received a favorable report from the Senate Education/Higher Education Committee and was to be considered by the full Senate Thursday. Bevacqua echoed arguments by bill sponsor Sen. Howard Lee (D-Orange) arguments that a local superintendent does not necessarily need a formal education degree to be effective. "A local superintendent should be a good manager and administrator," Bevacqua told the committee. "There are many qualified individuals who do not have an education degree but who have a strong knowledge of education issues, are good managers and could lead a school system well." John Dornan, executive director of the Public School Forum of North Carolina, expressed his personal support of the bill and stressed that the Forum had taken no position on the issue. He emphasized that the K-12 public education system in North Carolina should be afforded the same opportunity as higher education, which can hire leaders who do not have purely education degrees.

Telecommunications bill passes House
H. 571 Simplify Taxes on Telecommunications passed the House this week after lengthy debate about its impact on businesses and telephone cooperatives in rural areas. The legislation would add a tax to interstate calls and would reduce the rate on intrastate calls so that all service (interstate and intrastate) would be taxed at a uniform rate of 4.5 percent. Rep. David Redwine (D-Brunswick) offered an amendment to remove the coops from the bill, but the amendment was defeated on Wednesday. The bill ultimately passed the House overwhelmingly (90-21) and will now be considered by the Senate.

House tentatively approves liquor bill
The House gave tentative approval Wednesday to a bill that would issue liquor permits to sports clubs operating in counties where voters have defeated liquor-by-the-drink. The measure, H. 1143 Sports Club ABC Permits, is an attempt by the House ABC Committee, which collectively introduced the measure, to overcome an expected court ruling revoking alcohol permits for more than 100 private clubs. The bill passed on second reading by a 70-32 margin; a final vote was scheduled for Thursday. Over the years, legislators have passed special provisions granting liquor permits to more than 100 golf clubs, travel resorts and private clubs located in dry counties. Owners of some other clubs who don’t have liquor permits sued, saying the special permits violate the state Constitution.

The Senate on Wednesday gave second- and third-reading approval to S. 531 Umstead Act Exception/Community Colleges {Dalton} and sent the measure to the House.

The House Financial Institutions Committee on Wednesday favorably reported H. 803 Reorganize Savings Institutions Divisions {Church, Morgan}.

The House Election Law and Campaign Finance Reform Committee on Wednesday favorably reported H. 57 Labeling Campaign Ads {Baker}.

The House Transportation Committee on Wednesday favorably reported H. 455 State Highway Patrol Reimbursement/Special Events {McCombs}.

The House Education/Community Colleges Committee on Wednesday favorably reported H. 443 Community College Instructional Trust Fund {Gibson}.

The Senate Education/Higher Education Committee on Wednesday favorably reported S. 304 Legislators Can't Serve/Community College Board {Albertson}.


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