Legislative
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Streamlined
Sales Tax Bill Passes Senate
The
Senate on Thursday gave final approval to legislation that
will provide a process for collecting state sales and use
taxes on Internet and catalog sales. The bill, S. 144
Streamlined Sales and Use Tax Agreement, sponsored by Sen.
John Kerr (D-Wayne), passed along party lines, with Democrats
favoring the measure and Republicans against; the vote was
35-15 Wednesday on second reading and 33-14 on third reading
on Thursday. The bill now goes to the House.
“This is not a tax on the Internet. This merely allows our
own merchants to be on the same playing field as those that
are out of state," Sen. Kerr said.
The Department of Revenue
estimates the state is losing $120 million to $140 million a
year from Internet, catalog and home-shopping purchases on
which use taxes -- the equivalent of sales taxes -- aren't
collected. State budget analysts estimate the loss could grow
to $450 million by 2003 -- $300 million in state taxes and
$150 million for local governments.
NCCBI strongly supports this legislation, along with the N.C.
Retail Merchants Association, the N.C. Association of County
Commissioners, N.C. League of Municipalities, National
Federation of Independent Business, N.C. Association of
Certified Public Accountants, N.C. Association of Convenience
Stores, N.C. Association of Municipal Police Chiefs, N.C.
Association of Realtors, N.C. Association of School
Administrators, N.C. Automobile Dealers Association, N.C.
Budget and Tax Center, N.C. Home Builders Association, N.C.
Manufacturers Association, N.C. Petroleum Marketers
Association, N.C. Recreation and Park Society, N.C. Restaurant
Association and N.C. School Boards Association.
Air
quality, car inspection fee bill advances
After
lengthy debate on Thursday, the state House voted 68-36 in
support of legislation that sets fees and implements
provisions of clean-air legislation passed by the legislature
two years ago. That 1999 legislation expands vehicle
emissions testing from nine counties to 48 and requires that
only low-sulfur gasoline be sold in the state.
NCCBI supports the bill, H. 969 Air Quality/Motor Vehicle
Inspection Fees {Hackney}, along with the N.C. Department
of Environment and Natural Resources, N.C. Department of
Health and Human Services, N.C. Department of Transportation,
N. C. Service Station Association, the Carolina AUTO PRO
Association, American Lung Association, Manufacturers and
Chemical Industry Council, Sierra Club, Conservation Council
of North Carolina, Independent Garage Owners of North
Carolina, Inc., N.C. Tire Dealers and Retreaders Association,
Inspection Station Association of North Carolina, and the N.C.
Retail Merchants Association.
Senate
concurs with minor amendment to superintendent bill
The
Senate concurred Monday with a minor amendment to the bill
that will give school boards more flexibility in hiring
superintendents. The bill, S. 378 Degree Not Required/Local
Superintendent {Lee}, passed both the Senate and House
overwhelmingly. It eliminates a requirement that a person must
hold a college degree in education and have classroom
experience to be considered for a job as superintendent of a
local school system.
The minor amendment was added during House debate that directs
the State Board of Education to establish minimum credentials,
education pre-requisites and relevant experience for local
superintendents. But that minimum qualification cannot include
an education degree or certification. The issue was a top
priority for the NCCBI Education Committee, chaired by Clark
Plexico. See May 25 Legislative Bulletin, page 3.
Committee
actions and floor votes
The House and
Senate on Wednesday accepted a conference committee report on H.
438 Clarify Community College Performance Measure {Yongue}.
Both chambers had passed slightly different versions of the
bill and then each rejected the other’s amendments. The
conference committee resolved the differences.
The Senate on Monday gave second- and third-reading approval
to H. 665 Extend Limitations for Some Intentional Torts
{Hackney} and the measure was enrolled. The bill extends to
three years the statute of limitations for assault, battery
and false imprisonment so it will be the same as the period of
limitations for unintentional torts.
The Senate on
Monday gave second- and third-reading approval to H. 1053
Action on Construction Payment Bond {Baddour} and the
measure was enrolled. The bill shortens from 180 days to 120
days the time in which a claimant may bring an action on a
payment bond when the claimant has a direct contractual
relationship with a subcontractor but no contractual
relationship with the contractor.
The Senate on
Monday gave second- and third-reading approval to S. 628
Out-of-State CPAs/Fees {Clodfelter} and sent the measure
to the House. The bill requires a CPA registered in another
state to notify the State Board of Certified Public Accountant
Examiners when they perform work in this state. The bill also
raises the CPA exam fee from $200 to $400 and raises other
fees charged by the board.
The House on
Tuesday concurred with Senate amendments to H. 1149 School
Policies on Harassment of Employees {Insko} and the
measure was enrolled. The bill authorizes local boards of
education to adopt policies addressing the sexual harassment
of school employees, and clarifies the law prohibiting
retaliation against employees who report sexual harassment.
The House on
Tuesday concurred with Senate amendments to H. 1160 Health
Insurance/Uniform Provider Credentials {Alexander} and the
measure was enrolled. The bill directs the state Commissioner
of Insurance to develop a single form capable of accessing the
credentials of all health care providers.
The Senate on
Tuesday gave third-reading approval to H. 344 Domestic
Employer Wage Reports {Redwine} and returned the bill to
the House for concurrence in amendments. The bill allows those
who hire domestic service employees to file annual (now,
quarterly) wage and tax withholding reports with the
Department of Revenue.
The Senate on
Tuesday failed to concur with House amendments to S. 16
Municipal Elections Boards {Gulley} and a conference
committee was appointed to resolve the differences. As
written, the legislation would abolish all municipal boards of
elections in the state except those in Morganton, Granite
Falls, Old Fort and Rhodhiss, and require that all elections
by conducted by county boards of election.
The House Health
Care Committee on Tuesday favorably reported S. 937 C.O.N./Adult
Care Homes Regulated {Purcell} and the Senate-passed bill
was calendared for a floor vote. The measure regulates the
development of adult care homes under the state’s
Certificate of Need law.
The House Rules
Committee on Tuesday favorably reported S. 825 State Health
Plan Contract/Exempt from APA {Rand}. The bill exempts
from the contested case provisions of the Administrative
Procedure Act contract disputes between the Teachers’ and
State Employees’ Comprehensive Major Medical Plan and
entities under contract with the plan.
The Senate on Thursday gave second- and third-reading approval
to H. 1045 Restore Workers’ Comp Stability {Baddour}
and the measure was returned to the House for concurrence in
amendments. The legislation overturns a decision by the N.C.
Court of Appeals last year in the Hansen v. Crystal
Ford-Mercury case.
The House on Thursday concurred with Senate amendments to H.
105 Product Development Fund for Buncombe County {Nesbitt}
and the measure was enrolled. The measure authorizes Buncombe
County to levy an additional one percent room occupancy and
tourism development tax. Three-fourths of the proceeds of the
levy must be used to promote development of travel, tourism
and conventions in the county through increased advertising.
The remainder will go to a Tourism Product Development Fund to
provide financial assistance for major tourism projects to
increase the number of hotel rooms rented.
The House on Thursday gave second- and third-reading approval
to S. 1101 Confirming Utilities Commission Appointments
{Soles} and the measure was enrolled. The bill confirms Gov.
Mike Easley’s appointments to the N.C. Utilities Commission
of James Kerr II and Mike Wilkins and the reappointment of
Robert Gruber as head of the commission’s Public Staff.
The House Judiciary I Committee on Thursday favorably reported
S. 719 TTA Eminent Domain {Gulley} and the
Senate-passed bill was calendared for a floor vote. The
measure provides quick-take procedures in eminent domain
proceedings undertaken by the Triangle Transit Authority and
the North Carolina Railroad.
The House Alcoholic Beverage Control Committee on Thursday
favorably reported S. 823 Promoting N.C. Grape and Wine
Industry {Rand}. The Senate-passed bill allows wineries in
the state, if they operate in locales that allow ABC permits,
to offer wine tastings at which patrons are offered free
samples of wine.
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