MAY 21, 2004	ISSUE No. 3	2004 SHORT SESSION
Published every Friday during legislative sessions exclusively for NCCBI members

Executive Committee takes action on school calendar bill
NCCBI’s Executive Committee met this week to consider its position on legislation pending before the NC General Assembly that would impact school calendars in the state. H 1464 School Calendar Changes, sponsored by Rep. Connie Wilson (R-Mecklenburg), would require schools to open after Aug. 25 and close by June 10. The bill would also eliminate 10 teacher workdays from the school calendar while making no reduction in teacher pay, and gives an additional mandate to local school systems on how teacher workdays can be used.

Last year, NCCBI’s Executive Committee stuck with its long-time support for local control and opposed a bill that would mandate that schools start after Labor Day. The bill did not have as many specifics as this year’s version. Because of the significant changes in this year’s proposal and after much discussion within NCCBI’s membership regarding the new bill, NCCBI’s Executive Committee decided to reconsider last year’s position on the school calendar issue.

Recognizing the importance of this issue to the travel and tourism industry in the state and to the education community, and noting that there are still many unanswered questions with regard to the economic, educational and fiscal impacts of this proposal, the Executive Committee approved the following motion:

“NCCBI’s Executive Committee recommends that the North Carolina General Assembly direct the State Board of Education and the North Carolina Travel and Tourism Board to conduct a joint study of the potential benefits and liabilities associated with mandating a date specific when public schools should begin. Dates that have been recommended previously (after Labor Day or Aug. 25) should be considered as a part of the study. Because of the impact on businesses across the state and our concern that this issue needs to be resolved in a way that will accommodate business and education needs, NCCBI is also indicating to the legislative leadership our willingness to play a role in the study process as a convener of the group or as a third party to be a part of the study committee. In addition, we believe that it is important for this issue to be resolved in a timely manner with recommendations prepared for the beginning of the 2005 legislative session and recommend that the study be completed no later than Nov. 15, 2004.”

NCCBI’s position is being forwarded to House and Senate leaders and groups who have indicated interest in the proposal.

H 1464 is currently pending in the House Committee on Commerce. Consideration of the bill is expected in that committee next week.

Senate OKs bill to fund healthcare facilities at UNC, ECU
By a vote of 44-1, the Senate gave final approval Wednesday to legislation that would build a cancer research hospital at UNC-Chapel Hill and a cardiovascular disease center at East Carolina University. S 1098 Finance Cancer Center & Cardio Institute, sponsored by Sens. Clark Jenkins (D-Edgecombe) and John Kerr (D-Wayne), would use certificates of participation to pay for the $240 million cost of the two projects -- $180 million for the cancer research hospital in Chapel Hill and $60 million for the cardiovascular disease center in Greenville. Certificates of participation don’t require a vote of the people. Republicans complained about the high cost of using certificates of participation and suggested paying off the bonds with money taken from the state’s tobacco settlement proceeds. Sen. Ham Horton (R-Forsyth) cast the sole vote against the bill. Democrats said the projects would create 1,100 jobs and make North Carolina a national leader in health care and research.


House approves $20 million for governor’s incentive fund
The House voted 99 to 14 on Thursday to pass legislation that would grant Gov. Mike Easley’s request for an immediate $20 million infusion into his One North Carolina fund for economic incentives. H 1352 Emergency Funding For One NC & NEIT (Owens), which was favorably reported Tuesday by the Appropriations Committee, appropriates the $20 million from the current year’s budget. It also appropriates $4.5 million for the New and Expanding Industry Training program operated by the community colleges. The training money was cut from the state budget last year. The governor asked for the emergency appropriation because the One NC fund has been emptied by a number of companies lured by the state’s new Jobs Development Investment Grant program. The measure now goes to the full House. H 1352 states it is the intention of lawmakers to put $10 million in the fund annually starting in 2006, but it can't force future General Assembly sessions to do so. The House has scheduled a final vote on the bill for Monday. If it passes that final vote, the measure goes to the Senate, where Sen. Walter Dalton (D-Rutherford) has filed a companion bill.



Legislative Actions

Shaw tries to stop Fayetteville annexation
Legislation filed by Sen. Larry Shaw (D-Cumberland) would stop Fayetteville’s planned annexation of 27 square miles and 42,000 people. S 1126 Fayetteville Annexation Referendum would modify Fayetteville's charter so the city could not annex any area unless residents of the area approved it in a vote. Shaw said he filed the bill because he has received complaints from people who don't want to be annexed into the city. Observers give the bill little chance of passing before the huge annexation occurs. Sen. Tony Rand (D-Cumberland), chairman of the Senate Rules Committee, was quoted as saying he thinks the bill is a bad idea. Also, the rules that the General Assembly is operating under in the short session preclude the introduction of local bills that are controversial or require a public hearing. The area being annexed this summer is in Shaw's legislative district, where he faces two opponents in the Democratic primary.

DOI fails to find legislator to sponsor Blue Cross bill
The N.C. Department of Insurance failed to find a sponsor for its proposed legislation to cap excess reserves accumulated by Blue Cross and Blue Shield of North Carolina. The agency drafted legislation giving the state insurance commissioner the power to make Blue Cross return some of its reserves to customers when its surplus hits a certain level. The DOI had until 4 p.m. Thursday, the legislators' deadline to request budget bills, to find a sponsor. House Speakers Jim Black and Richard Morgan were cool to the proposal.



Bills of Interest Introduced This Week
Note: A flurry of bills was filed as the Wednesday deadline passed to propose legislation recommended by study commissions.

H 1513 Increase Local Government Death Benefit (Bell). Raises the minimum death benefit payable from the local governmental employees' retirement system from $20,000 to $25,000 and the maximum benefit to $50,000.
H 1514 State Retirement COLA (Bell). Provides a cost of living adjustment for retirees in the teachers' and state employees' retirement system of 2.5 percent effective July 1.
H 1520 Gaston Temporary Sales Tax Referendum (Clary). Authorizes Gaston County to levy a temporary half-cent local sales tax for economic development and tourism projects if approved by voters of the county.
H 1521 Phase II Stormwater for Small Municipalities (Eddins). Requires the Department of Environment and Natural Resources to complete stormwater control programs required under the Phase II stormwater rules for municipalities with a population of 2,000.
H 1527 UNC/Cap Out-of-State Students (Allen). Limit out of state undergraduate enrollment at each constituent UNC System institution except the NC School of the Arts to 18 percent of the entering freshman class at the institution.
H 1577 Increase Cigarette Excise Tax to 75 Cents (Justice). Increases the state excise tax on cigarettes to 75 cents per pack, as recommended by the Legislative Study Commission on Children and Youth.
H 1581 Phase II Stormwater Management-2 (Gibson). Provides for implementation of federal Phase II stormwater management requirements, as recommended by the Environmental Review Commission.
H 1582 Water Conservation/Submeters (Gibson). Promotes water conservation in multifamily residential properties by amending various state laws regarding the use of submeters in consecutive water systems.
H 1583 Dry Cleaning Solvent Cleanup Act Amendments (Gibson). Increases the percentage of revenue credited to the dry-cleaning solvent cleanup fund that may be used to pay costs of assessment or remediation of dry-cleaning solvent contamination that occurred prior to July 1, 2001, as recommended by the Environmental Review Commission.
H 1584 Leaking UST Fund Liquidity (Gibson). Improves and accelerates processing of claims under the leaking petroleum underground storage tank cleanup program, as recommended by the Environmental Review Commission.
H 1585 Phase II Stormwater Management-1 (Gibson). Provides for implementation of federal phase II stormwater management requirements, as recommended by the Environmental Review Commission.
H 1590 Reduce Franchise Tax (Gibson). Removes the minimum franchise tax base for corporations experiencing a net economic loss.
H 1599 Labor Audit Systems/Incentives (Goodwin). Allows income tax credits to employers that implement automated traceable audit systems to track hourly employee work time and attendance.
H 1602 Tax Credit for Certain Real Property Donations (McComas). Recodifies the credit for certain real property donations and increases the credit for certain pass-through entities, as recommended by the Environmental Review Commission.
H 1603 Limit Liability for Environmental Cleanups (McComas). Promote economic development by facilitating the reuse of contaminated real property by limiting the liability of purchases, as recommended by the Environmental Review Commission.
H 1615 Environmental Reports Amendments (Gibson). Amend various environmental reporting requirements, as recommended by the Environmental Review Commission.
H 1626 Reduce Workers' Comp Premiums (Goodwin). Provides a tax credit of 5 percent of workers comp premiums for employers who maintain safe workplaces.
H 1630 Incentives for Border/Low-Tier Counties (Goodwin). Addresses the competitiveness of certain border counties by providing an incentive for investment in real property in order to match an incentive provided in South Carolina. The incentive would be an annual refund of all sales and use taxes.
H 1631 Create New Jobs/Recruit New Business.- AB (Owens). Allows C corporations to deduct $10,000 of new profits before computing state corporate income taxes. Others would deduct $20,000.
H 1632 Multicampus Community College Funding Formula (Yongue). Modifies the funding formula for multicampus community colleges and to appropriate $6.8 million for that purpose.
H 1633 Low-Wealth School Supplemental Funding (Yongue). Appropriates $77.8 million in supplemental funding for low wealth school systems.
H 1636 Renewable Energy Tax Credits (Tolson). Provides consumers a tax credit worth 10 percent of the purchase price for purchase of at least 750 gallons of renewal fuels during a year. Provides commercial interests a tax credit of 25 percent of the cost of building a facility for dispensing renewal fuels.
H 1638 Repeal Sales Tax (Gorman). Repeals the additional one-half cent state sales tax on July 1, 2004, instead of planned sunset on July 1, 2005.
S 1157 Military Base Support (Hargett). Waive one-third of the fuel tax collected on military installations each year to enable the armed forces to improve quality of life programs for military members and their families in NC.
S 1158 Military Base Land Preservation Fund (Hargett). Creates a military base land preservation fund and appropriates funds to protect lands around military bases.
S 1161 Military Planning Notices (Hargett). Requires counties and cities near military installations to give notice of land use planning changes to the military installations.
S 1217 Modify Franchise Tax Loophole (Clodfelter). Close a loophole that allows corporations to continue avoiding franchise taxes and to remove provisions that could result in franchise taxes on assets not indirectly owned by a corporation.
S 1242 Withholding Exemption Documentation (Foxx). Requires employers to see documentation when an employee claims more than four withholding exemptions.
S 1263 Notice of Additional Building Code Requirements (Clodfelter). Requires the state Building Code Council to cross-reference all additional requirements imposed by occupational licensing boards, commissions, or other agencies.


Legislative Politics

House Democrats look strong heading into fall election
Political observers are blaming Republican Party infighting on the fact that no GOP candidates are challenging incumbent Democrats in six House districts that were considered toss-ups. With the passing of the May 7 filing deadline, five of the six Democrats now are virtually reassured of another term, including Reps. Hugh Holliman (D-Davidson), Walter Church (D-Burke), Marian McLawhorn (D-Pitt), Jennifer Weiss (D-Wake) and Ray Rapp (D-Madison). In addition, no Republican filed in the new 4^th District in Duplin County, which means the winner of the Democratic primary likely will win the seat. The candidates there are Russell Tucker, Naverro Brown and Martin Herring.

The House filings “very clearly shows the level of contention within the state Republican Party,” said NC FREE’s John Davis. He was referring to the feud between House Republican Speaker Richard Morgan and the conservative wing of the party led by Rep. Leo Daughtry. Daughtry’s bid to become House speaker failed last year when Morgan formed a power-sharing coalition with Jim Black.

Davis noted that only six Democrat incumbents will have a primary and general election, compared to 19 Republican incumbents who will be faced with a primary and general election. Thirteen Democratic and 11 Republican incumbents will have only a primary election. Twenty-five Democrat and 14 Republican incumbents will only have a general election, many of which will only face a Libertarian challenger. Twenty Democrat and 18 Republican incumbents will face no opposition in either the primary or general election. 

House Democratic Speaker Black told the Winston-Salem paper that the developments bolster the party’s hopes of controlling the House. "I'm optimistic that we can very much hold our own,” he told the paper. “They should've been contested districts, actually."Observers noted that with no Republican opponents in the six districts, the Democratic Party will be able to conserve campaign cash and concentrate on nine or 10 contested districts whose outcome could swing the political balance of the House.
 
In the state Senate, filing resulted in more balanced totals between the parties for primary and general elections. Four Democrat and four Republican incumbents will face no opposition. Two Democrat and two Republican incumbents will only have a primary. Ten Democrat and five Republican incumbents will have both a primary and a general election. Fifteen Democrat and 10 Republican incumbents will have only a general election in November. All incumbents in swing seats will face a general election challenger, NC FREE said.
 
In only one district, where Democrat Nelson Cole faces Republican Wayne Sexton in Rockingham County, will incumbents from opposite parties square off. Twenty Democratic incumbents and 18 Republican incumbents face no opposition at all.

Thirteen Democrats have opposition only in a primary, while 11 Republicans have only a primary; Six Democrats face opposition in both a primary and the general election, while 19 Republicans face both a primary and a general-election challenge. Twenty-five Democrats face a challenge in the general election alone, while just 14 Republicans face opposition only in the general election.

A complete list of the 502 candidates running for the House and Senate is included below.


Economic Development

Rubbermaid expands in Huntersville
Newell Rubbermaid said it will locate its new Rubbermaid Foodservice Products division headquarters in a new 30,000-square-foot building on the Huntersville Campus at NorthPointe Executive Park. New employees will fill professional and administrative positions with an average salary of $67,900 per year. The facility represents 100 new jobs and a $1 million investment for the state. Newell Rubbermaid, a Fortune 500 company headquartered in Atlanta, is also the parent company of the IRWIN Industrial Tool Co. and the Rubbermaid/IRWIN Sales Division, which are both located in Huntersville, as well as Levolor/Kirsch Window Fashions, which is headquartered in High Point. This addition brings Newell Rubbermaid’s total employment to 550 in North Carolina. Rubbermaid received $200,000 in One N.C. Funds, a $170,000 grant from the Town of Huntersville and Mecklenburg County, as well as a $30,000 grant from EnergyUnited.

Poultry processor locates new plant in Anson County
Elite Foods, a poultry processing company, will locate a new plant in Morven, creating 110 jobs and a $9 million investment for the state, Gov. Mike Easley said. Easley also joined state and local leaders in a ground-breaking ceremony for a new terminal building as part of an $11 million renovation of the Anson County Airport. The company will process poultry within a new 90,000-square-foot building located off U.S. 52 south of Morven. Positions available include processing and manufacturing jobs with hourly wages of $8-$10 an hour. By year three, Elite Foods expects to employ 200 to 250 workers. Elite Foods was awarded a Community Development Block Grant from the state Department of Commerce for $1 million to go toward installing sewer lines and a pumping station. The Rural Center contributed $400,000 and Anson County contributed $100,000 to the project.


NCCBI News

Slots available for next class of Leadership North Carolina
The deadline for applying for admission to Leadership North Carolina is June 30 for Class XII that will begin in November and end next May. "This is a great program designed to expose aspiring leaders in our state to public policy issues and to prominent elected and appointed officials," said NCCBI President Phil Kirk, a member of the initial board of directors. "I would strongly encourage anyone interested in learning more about this special program to visit the website at www.leadershipnc.org for complete information regarding application forms, tuition, participant requirements, and specific program dates."

Brooks Raiford, Executive Director of Leadership North Carolina, which is a member of NCCBI, added, "Also available on the site is a roster of the current class, a complete alumni listing, and sample program agendas." Raiford may be contacted at brooks@leadershipnc.org or by telephone, 919-890-6250. Julie Woodson, NCCBI's Director of Governmental Affairs, endorsed the program. "In my Leadership class, I made friends and business contacts that will last a life-time. I can call on any one of my classmates and know that they will respond immediately." Kevin Brafford, senior editor of the North Carolina magazine, added, "Leadership North Carolina opened my eyes to the inner-workings of our state. The programs are diverse and well-planned, the speakers interesting and informative." Rosemary Wyche, NCCBI vice president of development, also praised the program. "The programs and the opportunity to meet people from government, business, and non-profits were great benefits and were well worth the time and money spent."


Kirk addresses Wilkes Chamber meeting
NCCBI President Phil Kirk told a breakfast meeting of the Wilkes Chamber of Commerce last Friday morning at Wilkes Community College that the General Assembly has returned to Raleigh and that despite news reports to the contrary, "there is not a lot of extra money available for the legislators to spend." Conceding that this year's budget situation is markedly better than the past three years, Kirk told chamber members that the "almost automatic funding needs" outstrip the available funds by more than $600 million. He referred to funds for enrollment increases in community colleges, UNC system, and the K-12 system; additional funds for Medicaid; and salary increases for state employees, including educators.

"The economy is improving, but at a slower rate in North Carolina than the national economy," Kirk said. "Much of that is due to our reliance on manufacturing." He pointed out that the unemployment rate improved dramatically last month and expressed cautious optimism that it would continue to improve. He said that agribusiness, tourism, and the military have a tremendous economic impact on our state and added that we will see job growth in health fields, biotechnology, services, and education.

Kirk said NCCBI will continue to push for lower taxes on corporations and high-income individuals and small businesses because "we are not competitive with our neighboring states in these areas." The breakfast was sponsored by The Bank of Granite. Kirk was introduced by Dale Isom, vice president of economic development support for the chamber. Linda Cheek, president of the Wilkes Chamber, organized the breakfast.

Kirk delivers Surry Community College commencement
"Take the time to live so that when your family and friends think of fairness, caring and integrity, they think of you," NCCBI President Phil Kirk told more than 300 graduates of Surry Community College at ceremonies held on May 13 in Wait Chapel on the Wake Forest University campus. He also encouraged the new grads to "take the time to relax more. Tensions, pressures to succeed, pressures to pass a test or complete a paper, competition, parental pressures and peer pressures---all these things have made real relaxation a luxury."

"Schedule time for yourself. That is important. Also remember that you do not have to go abroad to see some wonderful things. We have so much to see and do right here in North Carolina. Travel and tourism brings $13 billion a year into our economy and the total economic impact of this important industry is more than $34 billion a year. We are now the sixth most visited state out of 50." While emphasizing that a formal education is important, Kirk said that a positive attitude--something not easily taught nor easily learned--will go farther in bringing the graduates success and happiness. "Remember attitude determines altitude. How high you fly, how much you succeed in life is by and large determined by you."

Introduced by Michael L. McHone, vice president of student services, Kirk concluded his remarks by saying, "I sincerely hope the tassel has been worth the hassle."



Names in the News

Weedle to succeed Roberson
at Research Triangle Foundation
Rick Weddle, a former president of Winston-Salem Business Inc. who spent the past seven years as president and CEO of the Greater Phoenix Economic Council, was named president and CEO of the Research Triangle Foundation, succeeding the retiring Jim Roberson. Weddle (right) will begin work sometime after July 1. Weedle established Winston-Salem Business Inc. and served as its president from 1987-1991. From 1991-97, he was president and CEO of the Regional Growth Partnership in Toldeo, Ohio. He then began work at the Greater Phoenix Economic Council, which created more than 26,000 new jobs with a payroll of $1 billion.

Raleigh chamber program named one of nation’s best
Wake County Economic Development, a program sponsored by the Greater Raleigh Chamber of Commerce, was named one of the nation’s 10 best economic development groups in 2003 by Site Selection Magazine. Among the group’s 2003 successes cited by the magazine were Infineon's $8 million headquarters location, R.H. Donnelley's $10 million investment, and Kioti Tractor's $7.8 million investment. Ken Atkins is executive director of the program. Receiving honorable mentions were the Mooresville-South Iredell Chamber of Commerce and the Randolph County Economic Development Corp. The magazine used four criteria to pick the best economic development groups: new jobs, new jobs per 10,000 residents, new investment amount and new investment amount per 10,000 residents.

J. Bradley Wilson was elected to a second two-year term as chairman of the UNC Board of Governors. Raleigh businessman J. Craig Souza was elected vice chairman, and retired Durham educator Patsy B. Perry was re-elected secretary.

Laura Carpenter Bingham, president of Peace College in Raleigh, was named chair of the Association of Presbyterian Colleges and Universities. The group consists of 15 colleges.

Charles E. Burnell was appointed vice president of real estate for the North Carolina Railroad Co. Burnell has more than 25 years experience as a senior manager in manufacturing and services operations, most recently serving as manager of business development for Martin Marietta Materials.

Washington Update
 
House approves package of OSHA reform bills
The National Association of Manufacturers on Wednesday applauded the U.S. House for passing a legislative package designed to protect small businesses from overzealous OSHA regulators while creating a worker safety regime in which the scales of justice are more evenly balanced. “Employers -- particularly small manufacturers -- face a daunting task in attempting to navigate the ambiguous provisions of the 30-year-old Occupational Safety and Health Act,” NAM Employment Policy Director Chris Tampio said. “The system’s ‘due process’ standards are woefully inadequate, and this new legislation is a good first step toward modernizing and improving fairness, along with worker safety.”

“These are common sense reforms that will make important improvements in the way small businesses work with OSHA,” said Randel Johnson, vice president of labor policy at the U.S. Chamber of Commerce.“The measures are a good first step to give small businesses better ways to contest questionable citations, recoup fees and expedite the appeals process.”

“Some provisions of current law stack the cards so high against employers that they are frequently forced to settle even the most ridiculous legal claims rather than risk huge jury awards,” Tampio said. “None of this makes workers any safer. It just makes doing business more expensive, and that means companies can hire fewer workers. The lawyers win but our economy loses,” he concluded.

Here’s a synopsis of the four bills passed by the House:

H.R. 2728, the Occupational Safety and Health Small Business Day in Court Act – Under current law, if an employer fails to appeal an OSHA citation within 15 days, he or she forever loses the opportunity to contest the citation, even if the employer provides reasonable justification for missing the 15-day deadline.The bill provides the OSHA Review Commission flexibility in applying the 15-day period in which employers can contest citations, reducing the chance that employers are deprived of their day in court based on a technicality.
 
H.R. 2729, the Occupational Safety and Health Review Commission Efficiency Act – When an employer contests an OSHA citation, it can be years before the OSHA Review Commission will hear the case because of case backlogs.The legislation seeks to reduce this delay by expanding the number of sitting OSHA Review Commission members.
 
H.R. 2730, the Occupational Safety and Health Independent Review of OSHA Citations Act – Currently, OSHA’s interpretations of the law are given strong deference by the courts, even though Congress originally intended the OSHA Review Commission to be given such deference so it could serve as a “check” on OSHA.The bill seeks to remedy this by having courts defer to the Review Commission, rather than OSHA, on legal matters.
 
H.R. 2731, the Occupational Safety and Health Small Employer Access to Justice Act – It is hard for small employers to recover attorneys’ fees even when they have successfully defended against an OSHA citation.The measure would ensure small employers recoup their attorneys’ fees each time they successfully contest an OSHA citation.


Senate passes measure aimed at ending EU trade sanctions
With a huge bipartisan majority, the Senate passed legislation that would repeal the extraterritorial income regime (ETI, successor to FSC) and institute $170 billion in badly needed tax reforms that would help manufacturers. This bill is needed to end punitive European Union sanctions on 44 categories of key U.S. exports. Sanctions started at 5 percent on 3/1, grew to 7 percent on 5/1 and will increase 1 percentage point each month to a maximum of 17 percent next year or until the ETI regime is repealed. Additionally, the sanctions now cover exports to the 10 nations that joined the EU last month. The bill includes NAM-supported provisions to extend and strengthen the R&D credit and to allow companies to repatriate foreign profits at a reduced tax rate. It also contains the tax title from the Senate-passed energy bill. A conference committee would need to consolidate a House bill with the Senate-passed measure. A brief summary of selected provisions in the bill appears below.

Tax relief includes:
Manufacturing Tax Relief: phased-in 9 percent deduction on domestic manufacturing income that effectively lowers the corporate tax rate for these firms by 3 percentage points.
International Reforms: includes provisions to fix the current inequities in the interest allocation rules, provide a 20-year carry forward for foreign tax credits, apply look-through to 10-50 companies, repeal the 90 percent limitation on foreign tax credits for AMT companies, recharacterize overall domestic loss, and expand the subpart F de minimis rules.
Domestic Investment Incentive: provision that allows companies, for a period of one year, to bring foreign profits back to the United States at a 5.25 percent toll charge rather than the regular 35 percent corporate tax rate.
R&D: extension and expansion of the R&D tax credit through 2005.
Net Operating Losses: provision to allow companies to elect five-year carryback for NOLs incurred in either 2003 or 2004, in lieu of bonus depreciation.
Corporate AMT: separate provisions allow companies to opt to use accumulated AMT credits in lieu of bonus depreciation, repeal the 90% limitation on the AMT foreign tax credit and repeal the 90% limitation on NOL carrybacks for NOLs incurred in either 2003 and 2004 (see description above).
Energy Incentives: $18 billion in tax incentives for various energy production and conservation programs and initiatives including shorter depreciation lives for gas transmission lines, credits for renewable electricity production, alternative motor vehicles and fuel incentives, and clean coal incentives.
Expensing: increased section 179 expensing.


Revenue raisers include:
Repeal of the ETI Regime: repeals the current ETI provisions to bring us into compliance with our WTO obligations.
Punitive Damages and Settlement Payments: separate provisions eliminate tax deductions for punitive damage and settlement payments.
Corporate Donations: limits on the deduction for donations of intellectual property.
CEO Signatures: requirement that the corporate chief executive officer (CEO) sign a declaration that the corporation’s income tax return complies with federal tax laws.
Executive Compensation: new restrictions on non-qualified deferred compensation.
Corporate Tax Shelters: several provisions including new corporate tax shelter penalties and reporting requirements and codification of the economic substance doctrine.
Inversions: new restrictions on “inverted” companies, including disregarding transactions intended to avoid U.S. taxes.
Earnings Stripping: application of Sec. 163(j) rules to partnerships and S corporations.
Leasing Transactions: restrictions on leasing tax transactions including requirement that all tax-exempt use property subject to a lease have a recovery period of at least 125% of the lease term.
Sec. 911 Housing Allowance: provision to include in the cost of employer-provided housing benefit for U.S. expatriate workers in determining the $80,000 income exclusion amount.

Overtime Rule: One of the amendments adopted by the Senate in S. 1637 is the Harkin (D-IA) amendment, which would largely prevent the first revamping of the nation’s white-collar regulations in more than 50 years. The passage of this amendment represents a victory for the trial-lawyer industry and a setback for employers who would much rather pay overtime to their workers than legal fees. Final action on the amendment will be determined in conference.

Internet Tax Moratorium: In April, the Senate approved 93-3 the McCain (R-AZ) substitute amendment to S. 150, the Internet Tax Non-discrimination Act. The NAM-supported bill would extend the Internet tax moratorium, which expired 11/1/03, for four years; extend for four years the grandfather clause for states that taxed Internet access in 1998; and address state government concerns regarding Voice Over Internet Protocol (VOIP). The bill now goes to conference with House-passed H.R. 49, a permanent moratorium bill.

House Competitiveness Initiative: House Republicans kicked off an eight-week competitiveness agenda, titled “Careers for the 21st Century” on 5/11. They will debate pro-growth issues, including health care security, red tape elimination, lifelong learning, trade fairness, tax simplification, energy self-sufficiency, spurring innovation and ending lawsuit abuse. Week One covers health care with votes on flexible savings accounts (H.R. 4279), medical liability reform (H.R. 4280) and association health plans (H.R. 4281). The NAM is tracking the eight priorities on its Web site at http://www.nam.org/priorities and NAM members can submit their comments online to the House leadership.

Health Care: As part of its competitiveness agenda, the House, in May, considered three health care-related bills, including flexible savings accounts (H.R. 4279); medical liability reform (H.R. 4280) and association health plans (AHP) (H.R. 4281). H.R. 4279 proposes that $500 in unused Flexible Spending Account (FSA) funds (e.g., the employees‚ tax deferred money) be allowed to either roll over to be used in the following year or to roll over into a Health Savings Account. Current law mandates that unused funds revert back to the employer, resulting in fewer employees electing FSAs. H.R. 4280 would provide reasonable limits on medical liability awards that lead directly to higher health coverage costs and fewer health care providers. H.R. 4281 encourages association health plans for small businesses. Votes on all three bills will be considered as NAM Key Manufacturing Votes. The House plans to bundle all three bills and send them to the Senate.

Asbestos: Despite a lack of votes to reach cloture on asbestos litigation reform bill S. 2290, the FAIR Act (50-47), Majority Leader Frist (R-TN) and Minority Leader Daschle (D-SD) agreed to a negotiating process mediated by former U.S. appeals court Judge Edward Becker, an experienced asbestos litigator. Two weeks of talks involving defendant companies, insurers, the AFL-CIO and Senate leadership did not result in a resolution, but Frist and Daschle have not given up hope and are expected to continue the negotiations.


Candidates for the N.C. House
Incumbents names are underlined. D = Democrat. R = Republican. L = Libertarian
The county listed after a candidate’s name is the candidate’s county of residence.

District 1: Camden, Currituck, Pasquotank, Tyrrell. William C. Owens Jr. (Pasquotank) (D)
District 2: Chowan, Dare, Hyde, Washington. Daniel M. Beall (Dare) (R); William T. Culpepper III (Chowan) (D).
District 3: Craven (part) and Pamlico. Kirby R. Braxton (Craven) (R); Michael A. Gorman (Craven) (R); John M. Nichols (Craven) (R); Herbert M. Sobel (Craven) (L); Michael Speciale (Craven) (R); Alice Graham Underhill (Craven) (D).
District 4: Duplin and Onslow (part). Naverro Brown (Duplin) (D); Martin L. Herring (Duplin) (D); Russell E. Tucker (Duplin) (D).
District 5: Bertie, Gates, Hertford, and Perquimans. Larry Cooke (Bertie) (L); Howard J. Hunter Jr. (Hertford) (D); Fred Yates (Perquimans) (D).
District 6: Beaufort and Pitt (part). Al Klemm (Beaufort) (R); Arthur J. Williams (Beaufort) (D).
District 7: Halifax (part) and Nash (part). John D. Hall (Halifax) (D).
District 8: Martin and Pitt (part). Curt Hendrix (Pitt) (R); Edith D. Warren (Pitt) (D); Mary Lawrence Williams (Pitt) (D).
District 9: Pitt (part). Marian N. McLawhorn (Pitt) (D).
District 10: Greene, Lenoir (part), and Wayne (part). James D. (Lew) Llewellyn (Lenoir) (D); Stephen LaRoque (Lenoir) (R); Willie Ray Starling (Wayne) (R).
District 11: Wayne (part). Louis M. Pate Jr. (Wayne) (R).
District 12: Craven (part) and Lenoir (part). William L. Wainwright (Craven) (D); John Percy Wetherington Jr. (Craven) (R).
District 13: Carteret and Jones. Malcolm Fulcher (Carteret) (D); Jean R. Preston (Carteret) (R).
District 14: Onslow (part). Kever M. Clark (Onslow) (D); George C. Cleveland (Onslow) (R); Keith P. Williams (Onslow) (R).
District 15: Onslow (part). W. Robert Grady (Onslow) (R).
District 16: New Hanover (part) and Pender (part). Carolyn H. Justice (Pender) (R); Rick Catlin (New Hanover) (R).
District 17: Brunswick (part). Edward Gore (Brunswick) (L); E. David Redwine (Brunswick) (D); Bonner L. Stiller (Brunswick) (R).
District 18: New Hanover (part) and Pender (part). Frankie Roberts (New Hanover) (R); Fred Spain (New Hanover) (D); Thomas E. Wright (New Hanover) (D).
District 19: New Hanover (part). Daniel F. McComas (New Hanover) (R).
District 20: Brunswick (part) and Columbus. Dewey L. Hill (Columbus) (D); Richard Wright (Columbus) (D).
District 21: Sampson (part) and Wayne (part). Larry M. Bell (Sampson) (D).
District 22: Bladen and Cumberland (part). William Brisson (Bladen) (D); Edd Nye (Bladen) (D).
District 23: Edgecombe (part) and Wilson (part). Joe P. Tolson (Edgecombe) (D); Henry Williams, II (Edgecombe) (R).
District 24: Edgecombe (part) and Wilson (part). Jean Farmer-Butterfield (Wilson) (D)
District 25: Nash (part). Bill G. Daughtridge Jr. (Nash) (R).
District 26: Johnston (part). N. Leo Daughtry (Johnston) (R).
District 27: Northampton, Vance (part), and Warren. Grace M. Edwards (Northampton) (D); Richard Henderson (Vance) (D); John Soles (Vance) (D); Julius Webb (Northampton) (D); Michael H. Wray (Northampton) (D).
District 28: Johnston (part) and Sampson (part). James H. Langdon Jr. (Johnston) (R).
District 29: Durham (part). Paul Miller (Durham) (D).
District 30: Durham (part). Sean Haugh (Durham) (L); Paul Luebke (Durham) (D).
District 31: Durham (part). Michael P. Owen (Durham) (L); Henry M. Michaux Jr. (Durham) (D).
District 32: Granville and Vance (part). James W. Crawford Jr. (Granville) (D); Tom Howe (Granville) (L); James J. Gooch (Granville) (D).
District 33: Wake (part). Bernard Allen (Wake) (D); Steve Hilton (Wake) (L).
District 34: Wake (part). Grier Martin (Wake) (D); Don Munford (Wake) (R); J. H. Ross (Wake) (R).
District 35: Wake (part). Graham Yarko Thomas (Wake) (L); Jennifer Weiss (Wake) (D).
District 36: Wake (part). Nelson Dollar (Wake) (R); Gary Goodson (Wake) (L); David M. Miner (Wake) (R).
District 37: Wake (part). H. Wade Minter (Wake) (L); Paul Stam (Wake) (R).
District 38: Wake (part). Phil Jeffreys (Wake) (R); Deborah K. Ross (Wake) (D).
District 39: Wake (part). Linda Coleman (Wake) (D); Jeff Eddins (Wake) (R); J. Sam Ellis (Wake) (R); Darren Jackson (Wake) (D).
District 40: Wake (part). Rick L. Eddins (Wake) (R); Andrew Hatchell (Wake) (L); Joe O’Shaughnessy (Wake) (D); David S. Robinson (Wake) (R).
District 41: Wake (part). J. Russell Capps (Wake) (R); Thayne N. Conrad (Wake) (R).
District 42: Cumberland (part). Marvin W. Lucas (Cumberland) (D); Bob White (Cumberland) (R).
District 43: Cumberland (part). Elmer Floyd (Cumberland) (D); Mary E. McAllister (Cumberland) (D).
District 44: Cumberland (part). Margaret H. Dickson (Cumberland) (D); Ralph Reagan (Cumberland) (R).
District 45: Cumberland (part). Rick Glazier (Cumberland) (D); Robert T. Lawrence (Cumberland) (R); Alex Warner (Cumberland) (D).
District 46: Hoke (part), Robeson (part), and Scotland (part). Douglas Y. Yongue (Scotland) (D).
District 47: Robeson (part). Ronnie N. Sutton (Robeson) (D).
District 48: Hoke (part), Robeson (part), and Scotland (part). Garland Pierce (Scotland) (D); Russell Smith (Hoke) (D); J. D. Willis (Scotland) (D).
District 49: Franklin, Halifax (part), and Nash (part). Lucy T. Allen (Franklin) (D); Renee’ McCormick (Franklin) (R).
District 50: Caswell and Orange (part). Bill Faison (Orange) (D); Barry Jacobs (Orange) (D); Joel F. Knight, II (Orange) (D); Duke Underwood (Orange) (D).
District 51: Harnett (part) and Lee. A. Leslie Cox Jr. (Lee) (D); John I. Sauls (Lee) (R).
District 52: Moore (part). Peggy Crutchfield (Moore) (R); Richard T. Morgan (Moore) (R).
District 53: Harnett (part). David R. Lewis (Harnett) (R); Louise Taylor (Harnett) (D).
District 54: Chatham, Moore (part), and Orange (part). Joe Hackney (Orange) (D).
District 55: Durham (part) and Person. Tom Rose (Person) (L); W. A. (Winkie) Wilkins (Person) (D).
District 56: Orange (part). Verla C. Insko (Orange) (D).
District 57: Guilford (part). Joanne W. Bowie (Guilford) (R); Mary (Pricey) Harrison (Guilford) (D).
District 58: Guilford (part). Alma S. Adams (Guilford) (D); Walter Sperko (Guilford) (L); Olga Morgan Wright (Guilford) (R).
District 59: Guilford (part). Allison N. Jaynes (Guilford) (L); Maggie Jeffus (Guilford) (D); Jim Rumley (Guilford) (R).
District 60: Guilford (part). Earl Jones (Guilford) (D).
District 61: Guilford (part). Laura I. Wiley (Guilford) (R); Steve W. Wood (Guilford) (R).
District 62: Guilford (part). James P. Attaway (Guilford) (R); John M. Blust (Guilford) (R).
District 63: Alamance (part). Alice L. Bordsen (Alamance) (D); Jerry Rudd (Alamance) (R).
District 64: Alamance (part). Cary D. Allred (Alamance) (R); Andrea Glass (Alamance) (R).
District 65: Rockingham (part). E. Nelson Cole (Rockingham) (D); P. Wayne Sexton, Sr. (Rockingham) (R).
District 66: Montgomery (part) and Richmond. Anthony G. Copeland (Montgomery) (D); Melanie W. Goodwin (Richmond) (D).
District 67: Montgomery (part), Stanly and Union (part). David Almond (Stanly) (R); Bobby H. Barbee, Sr. (Stanly) (R); W. P. (Bill) Davis (Union) (R); Kenny Furr (Stanly) (R); Lester F. Galloway (Stanly) (R); June Mabry (Stanly) (D).
District 68: Union (part). J. Curtis Blackwood Jr. (Union) (R).
District 69: Anson and Union (part). Pryor A. Gibson, III (Anson) (D); Ken Honeycutt (Union) (D); Hilda L. Morton (Union) (R).
District 70: Randolph (part). Arlie F. Culp (Randolph) (R); Bucky Jernigan (Randolph) (R); Jim Parker (Randolph) (R).
District 71: Forsyth (part). Lynn Haggerty (Forsyth) (L); Larry W. Womble (Forsyth) (D).
District 72: Forsyth (part). Earline W. Parmon (Forsyth) (D).
District 73: Davidson (part) and Forsyth (part). Larry Brown (Forsyth) (R); Michael P. Decker (Forsyth) (R); Michael Smith (Davidson) (L).
District 74: Forsyth (part). Winfield Beroth (Forsyth) (R); Tom Brandon (Forsyth) (D); Jonathan Dills (Forsyth) (R); Dale Folwell (Forsyth) (R); Derrick Hinson, Sr. (Forsyth) (R); Debra Conrad Shrader (Forsyth) (R); Tom Southern (Forsyth) (R); Josh Wood (Forsyth) (R).
District 75: Forsyth (part). William C. McGee (Forsyth) (R).
District 76: Rowan (part). Chad Mitchell (Rowan) (R); Thomas L. (Tom) Smith (Rowan) (R); Fred F. Steen, II (Rowan) (R).
District 77: Rowan (part). Lorene T. Coates (Rowan) (D); Lynn Dula (Rowan) (R).
District 78: Randolph (part). Harold J. Brubaker (Randolph) (R); Douglas Kania (Randolph) (D).
District 79: Davie and Iredell (part). Julia C. Howard (Davie) (R); W. Franklin Mitchell (Iredell) (R).
District 80: Davidson (part). Jerry C. Dockham (Davidson) (R).
District 81: Davidson (part). L. Hugh Holliman (Davidson) (D).
District 82: Cabarrus (part). Jeffrey L. Barnhart (Cabarrus) (R); W. Drew Becker (Cabarrus) (R); Scott R. Herman (Cabarrus) (R); Carl Miller (Cabarrus) (L).
District 83: Cabarrus (part). Caroline Gellner (Cabarrus) (L); Linda P. Johnson (Cabarrus) (R).
District 84: Avery, Caldwell (part), Mitchell, and Yancey (part). Charles F. Buchanan (Mitchell) (R); Phillip D. Frye (Mitchell) (R); C. Barry Williams (Yancey) (L).
District 85: Burke (part) and McDowell. Mitch Gillespie (McDowell) (R); Philip Tate (McDowell) (D).
District 86: Burke (part). Walter G. Church, Sr. (Burke) (D).
District 87: Caldwell (part). Larry K. Clark (Caldwell) (D); Edgar V. Starnes (Caldwell) (R); Keith B. Triplett (Caldwell) (R); Woody Tucker (Caldwell) (D).
District 88: Alexander and Catawba (part). Dr. Grimes Byerly (Catawba) (R); Jill Griffin. (Catawba) (R); Joel Harbinson (Alexander) (D); William (Ray) Henderson (Catawba) (R); Mark Hollo (Alexander) (R).
District 89: Catawba (part) and Iredell (part). Mitchell S. Setzer (Catawba) (R).
District 90: Alleghany and Surry (part). Jack Conway (Alleghany) (R); James A. Harrell, III (Surry) (D).
District 91: Rockingham (part) and Stokes. Rex L. Baker (Stokes) (R); Bryan Holloway (Stokes) (R); Robert W. Mitchell (Stokes) (D).
District 92: Iredell (part), Surry (part), and Yadkin. George M. Holmes (Yadkin) (R).
District 93: Ashe and Watauga. Brandon Derr (Watauga) (L); Dan Hense (Watauga) (D); Cullie Tarleton (Watauga) (D); W. Eugene Wilson (Watauga) (R).
District 94: Wilkes. David Sprinkle (Wilkes) (R); R. Tracy Walker (Wilkes) (R).
District 95: Iredell (part). Karen B. Ray (Iredell) (R).
District 96: Catawba (part). Mark K. Hilton (Catawba) (R).
District 97: Lincoln. Ken H. Fortenberry (Lincoln) (D); Joe L. Kiser (Lincoln) (R).
District 98: Mecklenburg (part). John W. Rhodes (Mecklenburg) (R).
District 99: Mecklenburg (part). Drew P. Saunders (Mecklenburg) (D).
District 100: Mecklenburg (part). James B. Black (Mecklenburg) (D).
District 101: Mecklenburg (part). Beverly M. Earle (Mecklenburg) (D).
District 102: Mecklenburg (part). Becky Carney (Mecklenburg) (D).
District 103: Mecklenburg (part). Stephen Burr (Mecklenburg) (L); Jim Gulley (Mecklenburg) (R); Sid Sowers (Mecklenburg) (D).
District 104: Mecklenburg (part). W. Edwin McMahan (Mecklenburg) (R).
District 105: Mecklenburg (part). Ken Gjertsen (Mecklenburg) (R); Doug Vinson (Mecklenburg) (R).
District 106: Mecklenburg (part). Martha B. Alexander (Mecklenburg) (D).
District 107: Mecklenburg (part). W. Pete Cunningham (Mecklenburg) (D); Kenny Houck (Mecklenburg) (R).
District 108: Gaston (part). William Manning, Sr. (Gaston) (D); John M. Rayfield (Gaston) (R).
District 109: Gaston (part). William A. Current, Sr. (Gaston) (R); Donnie Loftis (Gaston) (R); Pat Underwood (Gaston) (R); Shirley Wiggins (Gaston) (D).
District 110: Cleveland (part) and Gaston (part). Debbie A. Clary (Cleveland) (R); Glenda P. Eudy (Gaston) (D); Jim Long (Gaston) (D); Floyd Wright (Gaston) (R).
District 111: Cleveland (part). Kathryn H. Hamrick (Cleveland) (D); Tim Moore (Cleveland) (R).
District 112: Cleveland (part) and Rutherford. Bobby F. England (Rutherford) (D); Mike Hager (Rutherford) (R); Ralph Haulk (Rutherford) (L).
District 113: Henderson (part), Polk, and Transylvania. Trudi Walend (Transylvania) (R).
District 114: Buncombe (part). Susan C. Fisher (Buncombe) (D); Bill Porter (Buncombe) (R).
District 115: Buncombe (part). Barbara Boyd (Buncombe) (R); D. Bruce Goforth (Buncombe) (D); Robert Parker (Buncombe) (L).
District 116: Buncombe (part). Doug Jones (Buncombe) (D); Wilma M. Sherrill (Buncombe) (R).
District 117: Henderson (part). Wayne Bastedo (Henderson) (D); Carolyn K. Justus (Henderson) (R).
District 118: Haywood (part), Madison, and Yancey (part). Ray Rapp (Madison) (D).
District 119: Haywood (part), Jackson, Macon (part), and Swain. Marge Carpenter (Haywood) (R); R. Phillip Haire (Jackson) (D).
District 120: Cherokee, Clay, Graham, and Macon (part). Roger West (Cherokee) (R).


Candidates for the N.C. Senate

District 1: Beaufort, Camden, Currituck, Dare, Hyde, Pasquotank, Tyrrell, Washington. Marc Basnight - Dare (D); Ron Toppin - Beaufort (R).
District 2: Carteret, Craven, Pamlico. Scott Thomas – Craven (D); Charles (Chuck) Tyson - Craven (R); Richard Evey - Craven (L).
District 3: Edgecombe, Martin, Pitt (Part). Clark Jenkins – Edgecombe (D); Beverly Moore - Pitt (R); Charles Johnson - Pitt (D); Jim Rouse - Pitt (D); Shelly Willingham - Edgecombe (D).
District 4: Bertie, Chowan, Gates, Halifax, Hertford, Northampton, Perquimans. Patricia Ferguson - Bertie (D); Robert Lee Holloman - Hertford (D); Sammy Webb - Halifax (D).
District 5: Greene, Pitt (Part), Wayne (Part). John H. Kerr III – Wayne (D); Tony P. Moore - Pitt (R).
District 6: Jones, Onslow. Cecil Hargett – Onslow (D); Harry Brown - Onslow (R); Tommy Pollard - Onslow (R); Mathew Tillman - Onslow (L).
District 7: Franklin, Granville, Vance, Warren. Doug Berger - Franklin (D); Harold Frazier - Vance (R); Jack Day - Granville (D); Bernard Holliday - Granville (D); C. Douglas Jackson - Franklin (D); Darryl D. Moss - Granville (D); Bobby W. Rogers - Vance (D).
District 8: Brunswick, Columbus, Pender. R. C. Soles Jr. – Columbus (D); Jack Swann - Pender (R).
District 9: New Hanover. Julia Boseman - New Hanover (D); Don Hayes - New Hanover (R); Buford (Buff) McConatha - New Hanover (D); Haywood (Woody) White - New Hanover (R).
District 10: Duplin, Lenoir, Sampson. Charles W. Albertson - Duplin (D); Adrain Ray Arnett - Duplin (R);Rich Jarman - Lenoir (R).
District 11: Nash, Wilson. A. B. Swindell – Nash (D); Dennis Nielson - Nash (R).
District 12: Johnston, Wayne (Part). Fred Smith – Johnston (R).
District 13: Hoke, Robeson. David F. Weinstein - Robeson (D).    
District 14: Wake (Part). Vernon Malone - Wake (D); Carol Bennett - Wake (R); Johnnie C. Mayfield - Wake (R); John Odom - Wake (R).
District 15: Wake (Part). John H. Carrington – Wake (R); Neal Hunt - Wake (R); Jean Koch - Wake (R); Lee Griffin - Wake (L).
District 16: Wake (Part). Janet Cowell - Wake (D); Mark Bradrick - Wake (R); Jack Nichols - Wake (D); Jason Mara - Wake (L); Mike Shea - Wake (D); Carter Worthy - Wake (D).
District 17: Wake (Part). Norwood Clark - Wake (D); Richard Stevens - Wake (R); Ryan Maas - Wake (L).
District 18: Chatham, Durham (Part), Lee. Robert (Bob) Atwater - Chatham (D); Christine Mumma - Durham (R); Paul D. Carrington - Durham (D); Jon Guze - Durham (L); Tommy Griffin Jr. - Chatham (D).
District 19: Bladen, Cumberland (Part). Tony Rand – Cumberland (D); George Quigley - Cumberland (R).
District 20: Durham (Part). Jeanne Hopkins Lucas – Durham (D); Ray Ubinger - Durham (L).
District 21: Cumberland (Part). Darrell (DJ) Haire - Cumberland (D); Richard Evans - Cumberland (R); Larry Shaw – Cumberland (D); Brian Irving - Cumberland (L); Eronomy (Mohammed) Smith - Cumberland (D).
District 22: Harnett, Moore. Oscar N. Harris - Harnett (D); Harris Blake - Moore (R).
District 23: Orange, Person. Eleanor Kinnaird - Orange (D); Kim James - Orange (R).
District 24: Alamance, Caswell. Tony Foriest - Alamance (D); Hugh Webster - Alamance (R); Tim Purgason - Alamance (D).
District 25: Anson, Richmond, Scotland, Stanly. William R. Purcell - Scotland (D).            
District 26: Guilford (Part), Rockingham. Phil Berger – Rockingham (R); Roger Erdely - Guilford (R); Timothy Sessoms - Guilford (R).
District 27: Guilford (Part). Kay R. Hagan - Guilford (D); Bobby Coffer - Guilford (R); Rusty Sheridan - Guilford (L).
District 28: Guilford (Part). Katie G. Dorsett - Guilford (D).
District 29: Montgomery, Randolph. Charles K. Moss - Randolph (D); Joseph O. (Joe) Shaw - Randolph (R); Jerry W. Tillman - Randolph (R).   
District 30: Alleghany, Stokes, Surry, Yadkin. Melvin T. Jackson - Surry (D); Don East - Surry (R).
District 31: Forsyth (Part). Hamilton C. Horton Jr. – Forsyth (R).
District 32: Forsyth (Part). Jermaine Baxter - Forsyth (D); W. R. (Bill) Dowe - Forsyth (R); Linda Garrou - Forsyth (D).
District 33: Davidson, Guilford (Part). Stan Bingham – Davidson (R).                     
District 34: Davie, Rowan. Larry C. Brown - Rowan (D); Gus Andrews - Rowan (R); Andrew C. Brock - Davie (R).
District 35: Mecklenburg (Part), Union. W. Edward (Eddie) Goodall - Union (R); Paul Standridge - Union (R); Sean A. Johnson - Mecklenburg (L).
District 36: Cabarrus, Iredell (Part). Fletcher L. Hartsell Jr. – Cabarrus (R); Mike Helms - Cabarrus (L).
District 37: Mecklenburg (Part). Daniel G. Clodfelter – Mecklenburg (D).    
District 38: Mecklenburg (Part). Lawrence B. Brinson - Mecklenburg (D); Charlie Smith Dannelly - Mecklenburg (D).
District 39: Mecklenburg (Part). Robert Pittenger – Mecklenburg (R); Andy Grum - Mecklenburg (L).
District 40: Mecklenburg (Part). Malcolm Graham - Mecklenburg (D); Brian Sisson - Mecklenburg (R); Fountain Odom - Mecklenburg (D).
District 41: Gaston (Part), Iredell (Part), Lincoln. Rita W. McElwaine - Gaston (D); James (Jim) Forrester - Gaston (R) ;R. B. Sloan Jr. - Iredell (R).
District 42: Catawba, Iredell (Part). Austin M. Allran – Catawba (R).
District 43: Gaston (Part). David W. Hoyle – Gaston (D); Russell Fleming - Gaston (R).
District 44: Burke, Caldwell. Richard Cornwell Avery - Burke (D); Jim Jacumin - Burke (R); Dan DeHart - Burke (D); George Robinson - Caldwell (R).
District 45: Alexander, Ashe, Watauga, Wilkes. Jim Cain - Ashe (D); John A. Garwood - Wilkes (R).
District 46: Cleveland, Rutherford. James W. (Buck) Carr - Cleveland (D); James (Jim) Testa - Cleveland (R); Walter H. Dalton - Rutherford (D).
District 47: Avery, Haywood (Part), Madison, McDowell, Mitchell, Yancey. Joe Sam Queen – Haywood (D); Keith Presnell - Yancey (R).
District 48: Buncombe (Part), Henderson, Polk. Matthew C. Rogers – Polk (D); Tom Apodaca – Henderson (R).
District 49: Buncombe (Part). Martin L. Nesbitt Jr. - Buncombe(D); RL Clark - Buncombe (R).
District 50: Cherokee, Clay, Graham, Haywood (Part), Jackson, Macon, Swain, Transylvania. John Snow Jr. - Cherokee (D); Robert C. Carpenter - Macon (R);Ben Lamm - Transylvania (L).