Budget compromise to be examined
during rare weekend session of legislature
State government apparently won’t have to shut down Tuesday because it’s likely there will be a new budget in place by the start of a new fiscal year. House and Senate budget conferees expected to unveil a two-year budget plan today that will be examined during a rare weekend session of the General Assembly. By law, it takes three days for the legislature to enact a budget and – counting today – there are four days left in the fiscal year. If all goes as planned, the $14.7 billion compromise measure will receive tentative approval on the floor of the House and Senate either today or Saturday, final approval either Saturday or Sunday and hurried over to Gov. Mike Easley for his signature by Sunday or Monday. The fiscal year ends at midnight Monday.

The breakthrough in what had become a nearly two-month impasse between the chambers broke Thursday evening when Senate Democrats threw in the towel on raising taxes on cigarettes and alcohol to generate $326 million in new revenue – enough to fully fund higher spending on education and to prevent further cuts to many social programs. The Senate’s move came after the House on Wednesday softened its hard line against higher spending and offered a budget that came within $132 million of the Senate’s proposal.

While there was a palpable easing of tensions in Raleigh, where officials in recent days have seriously studied the implications of a government shutdown, many devilish details remained to be worked out to close the budget deal. Ironing out those final kinks will be even harder because the budget brinkmanship has left bruised egos all over the Capitol. The pivotal development came Wednesday when Gov. Easley, after summoning reporters to his office, said in so many words that the legislature could write a balanced budget – even in the second year of the biennium when the state won’t have the $510 million windfall from Uncle Sam -- without raising taxes on a pack of cigarettes by a quarter and by a nickel on a six-pack of beer. Senate Democrats, normally Easley’s staunchest allies, felt betrayed and fired back that the only way to balance the budget without higher taxes was to forego additional money for the governor’s pet projects – $34 million for the More at Four prekindergarten program and smaller classes in fourth grade.

Other sticking points include looming cuts of $21 million for higher education, $10 million for high school vocational education, and new restrictions on Medicaid benefits. That’s even with the agreement to continue for two years the additional half-cent state sales tax and the higher income tax rate on wealthy individuals. Senate leaders said the only way to avoid those cuts is to ax additional money for Easley’s pet projects.

NCCBI will provide a complete report on the budget in next week’s Bulletin, which will come out a day early because of the Independence Day holiday.
 

In a major victory for business,
House strikes provision requiring
disclosure by corporate taxpayers
With the strong leadership of NCCBI and hard work by several business lobbyists, an onerous provision was struck from a Senate bill that would have required corporations to disclose extensive information about their financial operations to the state Department of Revenue. The victory came Tuesday in the House during floor debate on S. 236 Revenue Administrative Changes, a bill sponsored by Sen. John Kerr (D-Wayne). The measure generally makes several administrative changes to state revenue laws, but a provision was added in the Senate which would have required additional reporting by North Carolina corporations who have affiliates outside the state. 

The provision would require corporate taxpayers to disclose information regarding affiliated members that join in a federal consolidated return. In addition, the legislation would target affiliated entities operating in “tax haven” countries. As written, the provision would require, to the extent a taxpayer is a member of a consolidated federal group, that the taxpayer include with its North Carolina return the gross receipts, cost of goods, total income, deductions and federal taxable income before net operating losses reported on the affiliated group’s federal consolidated return.

Taxpayers also would be required to provide, among other things, the numerator and denominator of the property factor, payroll factor, and sales factor and whether the member files a North Carolina return on a separate entity basis.

The justification for adding the provision to the bill was to give the Department of Revenue information it says is necessary to calculate the impact on state revenues if the state decides to allow corporations to file consolidated returns. NCCBI strongly objected to the provision and offered several options for obtaining appropriate data for this type of research purpose. (It’s worth noting that Illinois defeated a similar provision proposed in their state legislature and Massachusetts is currently considering a similar provision.)

Rep. Nelson Cole (D-Rockingham) offered an amendment supported by NCCBI during floor debate on the bill Tuesday to delete the burdensome reporting requirements and substituted language directing the Revenue Laws Study Commission to establish “a study group composed of state tax professionals from accounting firms and representatives from the Department of Revenue to work together on gathering appropriate data to conduct an analysis of the potential revenue impact of modifying the corporate income tax law to require consolidate returns.”   

In addition to Rep. Cole, Rep. Don Munford (R-Wake) spoke in favor of the provision. Rep. David Miner (R-Wake) and Rep. Danny McComas (R-New Hanover) spoke against the pro-business amendment.

The amendment to delete the reporting requirement was approved by a vote of 93-24. The bill was later displaced from the House calendar when an amendment to another section of the bill raised some fiscal questions. If the bill is recalendared and approved by the House, it will have to be returned to the Senate for concurrence.

Members supporting the pro-business position were:  Bernard Allen, Gordon Allen, Lucy Allen, Cary Allred, Rex Baker, Bobby Barbee, Jeffrey Barnhart, Larry Bell, Jim Black, Curtis Blackwood, John Blust, Donald Bonner, Joanne Bowie, Harold Brubaker, Russell Capps, Walter Church, Debbie Clary, Lorene Coates, Nelson Cole, Jim Crawford, Billy Creech, Arlie Culp, Bill Culpepper, Bill Daughtridge, Leo Daughtry, Margaret Dickson, Jerry Dockham, Beverly Earle, Rick Eddins, Sam Ellis, Bob England, Phillip Frye, Mitch Gillespie, Bruce Goforth, Wayne Goodwin, Mike Gorman, Robert Grady, Jim Gulley, Phillip Haire, John Hall, Jim Harrell, Dewey Hill, Mark Hilton, Hugh Holliman, George Holmes, Maggie Jeffus, Linda Johnson,  Earl Jones, Carolyn Justus, Joe Kiser, Stephen LaRoque, David Lewis, Marvin Lucas, Paul Luebke, Mary McAllister, Gene McCombs, William McGee, Patrick McHenry, Marian McLawhorn, Ed McMahan, Frank Mitchell, Tim Moore, Don Munford, Martin Nesbitt, Edd Nye, Bill Owens, Earline Parmon, Louis Pate, Jean Preston, Ray Rapp, Karen Ray, John Rayfield, John Rhodes, John Sauls, Drew Saunders, Mitchell Setzer, Wayne Sexton, Paul Stam, Edgar Starnes, Bonner Stiller, William Wainwright, Trudi Walend, Tracy Walker, Alex Warner, Edith Warren, Roger West, Arthur Williams, Keith Williams, Connie Wilson, Gene Wilson, Steve Wood, Tom Wright, Doug Yongue.

Members opposing the amendment were: Alma Adams, Martha Alexander, Alice Bordsen, Becky Carney, Jean Farmer-Butterfield, Pryor Gibson, Rick Glazier, Joe Hackney, Julia Howard, Howard Hunter, Verla Insko, Charles Johnson, Carolyn Justice, Danny McComas, Mickey Michaux, Paul Miller, David Miner, Richard Morgan, Deborah Ross, Wilma Sherrill, Ronnie Sutton, Joe Tolson, Jennifer Weiss, Larry Womble.

Not Voting: Michael Decker. Excused Absence: Pete Cunningham, Stan Fox.

Senate unanimously approves air permits legislation
The Senate on Tuesday unanimously approved legislation a bill that would allow companies to begin plant expansions before obtaining an air quality permit. The legislation, S. 945 (Hoyle) Timely Environmental Permit Process, is a compromise worked out between NCCBI, MCIC, environmental groups and Gov. Mike Easley's administration.

The legislation, just as proposed in the original bill, does not change any air quality standard; does not allow a facility to operate without meeting all state and federal requirements and receiving all needed permits; and does not affect any federal requirement nor relieve any business from preconstruction or construction prohibitions imposed by any federal requirement. The bill does allow a business to go forward and begin construction or modifications to an existing facility at the same time the company is moving forward to finalize their permits.

The bill, which now goes to the House, limits construction at new facilities to clearing and grading; development of access roads, driveways, and parking lots; installation of underground utilities; and construction of accessory structures that are not part of the pollution control equipment such as fences and office buildings. A new facility can do these things without giving advance notice to DENR.

An existing facility is allowed to apply for permission from DENR to begin construction or modifications to the air pollution sources and/or pollution control equipment, before a permit is issued – subject to certain requirements. Requirements include 15-day notice to DENR and to the public. DENR is to review the information submitted by the applicant within the 15-day time frame and determine if it meets the following specified criteria: 1) has the facility been in substantial compliance; 2) will the modification or expansion result in emissions that are the same or similar to what is already being emitted from the site; 3) will the modification have a significant effect on air quality; 4) is the permit likely to be issued. If the department determines that all these criteria have been met, it must notify the applicant that construction may begin.


House tentatively approves tourism investment act
The House gave second-reading approval Wednesday to H. 1316 (Earle, Miner and McComas) N.C. Travel And Tourism Investment Act, legislation creating a grant program that would help finance publicly owned sports arenas, convention centers and other projects designed to increase tourism. The grants would come from rebates of as much as 40 percent of the sales and business privilege taxes generated by the new facilities. The program ultimately could hand out up to $60 million annually in the form of rebates on taxes the projects are estimated to generate. Local government could apply for grants for tourism projects in which they own a minimum of 25 percent or 50 percent, depending on where the project is located. Qualifying investments for the program would be at least $500,000 in the state's poorest counties. The committee lowered the minimum for projects in the wealthiest counties from $10 million to $4 million before approving it on a voice vote with several no votes. A committee would approve no more than 15 projects and $20 million in grants in any fiscal year. The program would expire in 2006, but the grants could continue for a 10-year period.

Four legislators maintain perfect records in attendance and voting
After nearly five months in session, two members of the House and two in the Senate have perfect attendance and voting records, according to an NCCBI analysis of General Assembly data. In the House, Reps. Frank Mitchell (R-Iredell) and Bill Owens (D-Pasquotank) have been present and voted each of the 802 times the roll was called through June 24. In the Senate, Andrew Brock (R-Davie) and Bill Purcell (D-Scotland) have been present and voted each of the 742 times the roll was called in that chamber, also through June 24.

Several other legislators have perfect voting records so far but missed some roll calls due to excused absences. Rep. John Rayfield (R-Gaston) voted in each of the 787 roll calls he was present for. In the Senate, Patrick Ballantine (R-New Hanover), Stan Bingham (R-Davidson), Jim Forrester (R-Gaston), Virginia Foxx (R-Watauga), Robert Pittinger (R-Mecklenburg), R.B. Sloan (R-Iredell), R.C. Soles (D-Columbus), Richard Stevens (R-Wake), A.B. Swindell (D-Nash), Scott Thomas (D-Craven) and David Weinstein (D-Robeson) missed one or more days of the session but cast ballots every time the roll was called when they were present.

Generally, attendance and voting records are quite high so far this year. All but seven House members have voting records of 90 percent or better. They are Reps. Ed McMahan (R-Mecklenburg), 89 percent; Mickey Michaux (D-Durham), 89 percent; Connie Wilson (R-Mecklenburg), 88 percent; George Holmes (R-Yadkin), 85 percent; Billy Creech (R-Johnston), 77 percent; Howard Hunter (D-Hertford), 67 percent; and Speaker Jim Black (D-Mecklenburg), 40 percent. However, Black only votes on days when he is not presiding.

All 50 senators have voting records of 90 percent or more through June 25.

During the 2001-02 legislative session, House members on average voted 91 percent of the time and members of the Senate voted nearly 93 percent of the time.




Legislative Actions

 The Senate Finance Committee on Wednesday favorably reported H. 1294 Extend Qualified Business Venture Tax Credit, a measure that extends the only state tax credit that helps small, high-tech start-up companies, which is scheduled to expire next year, through Jan. 1, 2007. The bill was amended in the Senate to also include an extension of the State Ports Tax Credit. Numerous business organizations, including NCCBI, support the bill, which is sponsored by Rep. Gordon Allen. Enacted in August 1987, the qualified business investment tax credit is allowed to individuals and pass through entities. For individual taxpayers, the credit is for those who purchase the equity securities or subordinated debt of a qualified business venture or a qualified grantee business directly from that business. The credit is equal to 25 percent of the amount invested and may not exceed $50,000 per individual in a single taxable year. An individual investor may also claim the allocable share of credits obtained by "pass-through entities" of which the investor is an owner. Pass-through entities include limited partnerships, general partnerships, S corporations, and limited liability companies. To be eligible for the tax credit, an individual investor must file Form D-499, Application for Tax Credit for Qualified Business Investments, with the Department of Revenue on or before April 15 of the year following the calendar year in which the investment was made. Any unused credit may be carried forward for the next five years. The State Ports tax credit, originally enacted in 1992, has provided a unique business development tool. The credit cannot exceed 50 percent of the amount of tax imposed and any unused portion of the credit may be carried forward for five years. In 2002, the statewide impact of the tax credit provided more than 1,016 jobs and generated more than $3.8 million in tax revenues.

 The Senate has given final approval to S. 75 (Rand) Life Sciences Revenue Bond Authority, legislation that creates a seven-member authority to issue bonds to pay for construction of biotech manufacturing facilities that would be used by private companies. The governor, the speaker of the House and the president pro tem of the Senate each would appoint two members of the authority, and the state Treasurer would serve as the seventh member. The bill was forwarded to the House and referred to the Commerce Committee.

 The Senate on Wednesday concurred with House amendments to S. 1011 (Berger) Health Care Provider Liens and the measure was enrolled. The legislation would allow a lienholder to request an accounting of disbursements of sums recovered for personal injury with respect to liens in favor of providers of health-related goods and services.

 The Senate on Wednesday concurred with House amendments to S. 698 (Metcalf) Advisory Members on State Board of Education and the measure was enrolled.

 The Senate on Monday gave third-reading approval to H. 684 (Crawford) Psychiatric Hospital Financing and returned the bill to the House for concurrence in amendments.

 The house on Tuesday gave second- and third-reading approval to S. 824 (Albertson) Amend Environmental Laws-1 and returned the bill to the Senate for concurrence in amendments.

 The Senate Agriculture/Environment/Natural Resources Committee on Tuesday favorably reported H. 1028 (K. Williams and Justice) New Bulkhead Permit Regulations after amending the bill to codify an exiting regulation banning the use of hard seawalls on the coastline to block encroaching surf. The measure was then sent to the Senate Finance Committee.

 The House Public Utilities Committee on Wednesday favorably reported S. 872 (Thomas) Unwanted Telephone Solicitation after amending the measure to exempt in-state newspapers, television and radio stations, cable television companies and real estate agents from a do-not-call registry of telemarketers. The bill already exempts small businesses and nonprofit organizations from the no-call prohibition. Companies that already have a relationship with a person on the registry could also call and not be punished. The Senate has rejected such exemptions. A federal law takes effect July 1 creating a national do-not-call registry.

 The House gave third-reading approval Wednesday to H. 79 (Alexander) DNA Registry, a measure that would expand DNA testing to all convicted felons. Now, only certain violent criminals are required to provide DNA samples. The bill now goes to the Senate.

 The House gave third-reading approval Wednesday to S. 919 (Rand) Homicide Prevention Act/Domestic Violence and returned the bill to the Senate for concurrence in amendments. The legislation that would allow judges to seize the guns of people who have domestic violence orders issued against them.

 The Senate Rules Committee on Wednesday favorably reported H. 886 (Wright and Howard) Due Process for Physicians, a measure which stipulates that one of the governor’s five appointees to the North Carolina Medical Board must be a duly licensed physician who is a doctor of osteopathy or a full- time faculty member of one of the medical schools in North Carolina who utilizes integrative medicine in that person's clinical practice or a member of The Old North State Medical Society.

 By a vote of 104-10, the House on Wednesday failed to concur with Senate amendments to H. 147 (Gulley) Left Turn On Red and conferees were appointed. As originally passed by the House, the measure would allow motorists to turn left at a red light from a one-way street onto another one-way street. The Senate stripped the bill of that essential element.

 The House Finance Committee on Wednesday favorably reported H. 1301 (Fox and G. Allen) Local Government Economic Development Tools, a measure specifies that when two or more units of local government are engaged in a joint undertaking, they may enter into agreements regarding financing, expenditures and revenues related to the joint undertaking. Funds collected by any participating unit of government may be transferred to and expended by any other unit of government in a manner consistent with the agreement. An agreement regarding expenses and revenues may be of reasonable duration not to exceed 99 years.

 The House Finance Committee on Wednesday favorably reported a committee substitute for  S. 668 (Metcalf) Wine Shippers Permits and then re-referred the measure to the Rules Committee. The substitute bill added provisions that change the laws related to brewery permits.

Economic Development
RF Micro plans major expansion in Greensboro adding 50 new jobs
RF Micro Devices Inc., a manufacturer of wireless communications products, will invest $40 million expanding its Greensboro headquarters and create 50 new high-paying jobs, the company confirmed Tuesday. The company said higher demand for its products overseas was behind the expansion and that it chose to expand its Greensboro headquarters over an existing site in China. The company said it would spend $38.5 million buying new equipment and $1.5 million expanding its facilities. Construction will begin in July with completion expected in December. The new jobs will pay salaries averaging more than $50,000, the company said. Guilford County, Greensboro and the state combined to put together a package of incentives worth $1.2 million for the project.  "We're excited to expand our manufacturing operations, and we're very appreciative for the support from city, county and state representatives that enabled us to create these local additional jobs," said Jerry Neal, executive vice president of marketing and strategic development of RF Micro Devices. "This support was particularly important in driving our decision to expand right here in Greensboro."  Along with William J. Pratt and Powell T. Seymour, Neal founded RF Micro Devices in Greensboro in 1991. Since then the company has grown from a small design shop into a global leader in wireless technology and proven world-class component supplier. FR Micro provides the world's leading wireless manufacturers the critical components that enable wireless devices to transmit and receive signals. The company has more than $500 million in annual revenue and employs almost 1,400 people locally.

North Carolina bids for Boeing aircraft assembly plant
State Commerce Secretary Jim Fain indicated North Carolina’s interest in landing Boeing Co.’s new aircraft assembly plant when he delivered extensive documents to the company last Friday. Officials wouldn’t comment on what incentives, if any, the state included in its proposal, or which sites it’s promoting for the plant. Those sites reportedly include Elizabeth City, Wilmington, the Global TransPark in Kinston, Charlotte and Greensboro. North Carolina is one of about 24 states bidding for the project.

Laurinburg, Wilson named All-America Cities
Laurinburg and Wilson were among 10 cities nationwide selected as All-America Cities by the National Civic League. They were among 30 finalists for the honor. Thomasville was among the 30 finalists. The recognition came during a June 14 ceremony in Washington. The 54-year-old program recognizes civic excellence in communities that best exemplify the spirit of grassroots citizen involvement and cross-sector collaborative problem solving.

In addition to Laurinburg and Wilson, the other All-America Cities are Tempe, Arizona; New Haven, Connecticut; Miami Beach, Florida; Des Moines, Iowa; Marquette County, Michigan; South Sioux City, Nebraska; Corpus Christi, Texas; and Greater Racine Area, Wisconsin. Delegations comprised of government officials, neighborhood activists, business leaders and volunteers from each of the 30 finalist communities traveled to Washington to compete in hearings before the 10-member All-America City Jury. Following extraordinary presentations from each community, the 10 All-America Cities were announced at an awards ceremony at the Hilton Washington & Towers Hotel. 

"These All-America Cities symbolize the best of our nation - the ability of citizens, government, businesses and nonprofit organizations to come together, effectively address their local issues, and produce tangible results," said Christopher T. Gates, president of the National Civic League. "The accomplishments of these 10 All-America Cities serve as an inspiration to communities across the United States that are facing similar challenges."

State Government
Jobless rate falls as most sectors, except manufacturing, add workers
Unemployment in North Carolina fell to 6.1 percent in May from 6.4 percent in April as the number of people working climbed by roughly 7,400, enough to push the labor force back over the four million mark. All industries showed employment gains during the month except manufacturing, which shed 1,900 jobs.

During May, 81,551 initial claims for unemployment insurance were filed, down from 94,019 in April. Over three-fifths of these claimants were attached to a company payroll and were expected to return to work within 30-60 days.

A total of $95.2 million was paid in UI benefits to 130,495 people during May. The trust fund showed a balance of $133.7 million, with $10 million remaining in the State Reserve. The state repaid the $61.87 million that it borrowed from the federal government to shore up its UI trust fund. Because the loan was repaid in a timely manner, the state did not have to pay any interest on the loan. The average weekly benefit amount was $247.20 during the period. The maximum benefit amount per week is $408 and the minimum is $35.





Study finds state’s computers relatively safe from hacker attacks
North Carolina’s chief information officer said state government computers are relatively safe from hackers but that the state should develop a master plan to ensure that it’s adhering to the best security policies, standards and procedures. The study, released Monday by George Bakolia, the state’s chief information officer, is the first of a two-step analysis required under legislation adopted by the General Assembly last year. The second step will involve a review of security procedures at each state agency. The second phase of the study also will include cost estimates for ensuring that agencies operate in a secure computing environment. “Keeping the state’s information technology secure is an ongoing job,” Bakolia said.  “This study will tell us—and lawmakers—what we must do to make North Carolina’s information technology as safe as possible from attack.” Bakolia is coordinating the study with the Information Protection and Privacy Committee of the Information Resources Management Commission.  Major supporters include Lt. Gov. Beverly Perdue, Secretary of Revenue Norris Tolson and Brian Beatty, the secretary of Crime Control and Public Safety. Beatty coordinates the state’s homeland security efforts. In the first phase of the study, a consultant compared the state’s security policies and procedures with the best that are used in government and private industry. Ciber Inc. was awarded a contract for the first phase of the study. 

State reaches settlement with cigarette manufacturers
North Carolina will receive about $3.6 million as its share of a multi-state settlement with certain tobacco manufacturers, Attorney General Roy Cooper said last week. Another approximately $1.5 million will go to the Growers Trust Fund for distribution to tobacco farmers and quota holders. The settlement resolves disputes over the implementation of the tobacco Master Settlement Agreement. The disputes stems from cigarettes manufactured by Brown & Williamson under contract for Star Tobacco Inc. and Star Scientific Inc. from 1999 through 2002. Brown & Williamson has agreed to make $150 million in additional payments to the states to compensate for cigarettes it sold to Star. Payments by MSA manufacturers to the states are based on the number of cigarettes shipped in a given year. Under terms of the agreement, MSA manufacturers including Brown & Williamson, will now count cigarettes that they produce for non-MSA companies, such as Star, when determining how much they owe the states.

Briefly Noted: A $250 million, nine-mile extension of Interstate 26 through Madison County will open Aug. 5, state officials said Tuesday. With the section completed, motorists will be able to drive 600 miles on uninterrupted four-lane highways from South Carolina to Ohio.

State spending grew 35% faster than population growth
A story in USA Today on Monday said North Carolina is one of six states that have done an excellent job of managing their money over the five-year period from 1997 to 2002 when the national economy went from boom to recession. The newspaper article, which placed North Carolina tied for fourth-place among the 50 states in budget management, was based on an extensive study by Governing magazine.

We looked the same data to more narrowly analyze how well states kept spending in line with growth in population and inflation. Measured that way, North Carolina ranks 13^th nationally. Over the five-year period, the state’s population plus inflation increased 25.5 percent while spending grew 34.3 percent. That’s a difference of 8.8 percentage points or about 35 percent.

While that’s not great, it’s still better than the national average. The nation’s population plus inflation grew 20 percent over the five-year period but combined spending by the 50 states grew 38.4 percent. Thus, spending rose nearly 48 percent faster than population and inflation.

Using both USA Today’s benchmarks and our own, Georgia comes out smelling like a rose. Georgia’s population actually grew faster than North Carolina’s over the five-year period and its spending growth was lower than ours. This year Georgia already has adopted a balanced budget and still has $562 million in a rainy day fund.

Why? Two reasons: Georgia's governor line-item veto power. And he has the constitutional authority to estimate how much revenue the state will have to spend. A state economist provides three estimates of revenue, and Georgia governors have chosen the most conservative number in 23 of the past 25 years. The legislature cannot adopt a budget that appropriates more than the governor’s revenue estimate

Washington Watch
 U.S. Chamber stands up for NCCBI’s Texas counterpart
The U.S. Chamber of Commerce filed a friend-of-the-court brief challenging a Texas district court’s decision that three employees of the Texas Association of Business were in contempt for refusing to answer a grand jury’s questions about the organization’s electioneering activities.  “The First Amendment free speech and associational rights of the Texas business community are being impermissibly threatened here,” said Steven A. Bokat, executive vice president of the U.S. Chamber’s Litigation Center. “Our legal system is based on the principle that people are innocent until proven guilty. By holding these people in contempt for failing to disclose information about their speech without first confirming that their remarks did, in fact, constitute express advocacy, that principle has been violated.”  In a case with far-reaching free speech implications for the business community, the National Chamber Litigation Center, the public policy legal arm of the U.S. Chamber, filed an amicus brief questioning whether the 167th District Court of Travis County, Texas, properly entered a judgment of contempt and commitment orders. The district court had originally held three Texas Association of Business employees in contempt for failing to answer grand jury questions about their association’s mailings and activities.  The grand jury is investigating whether the association employees violated a Texas law that forbids corporations from spending money on electioneering.  According to the chamber’s brief, the court did not properly determine whether the employees’ actions were protected speech under electoral advocacy provisions. The issues at stake in this case directly concern the chamber and its members. The chamber is committed to ensuring the robust competition in the marketplace for ideas that results when voters are afforded access to relevant information about candidates. 

NCCBI News
Dates, locations finalized for fall Area Meetings
The NCCBI staff, under the leadership of Chair Sue Cole of Greensboro, will visit 19 cities across the state in September and October during the association’s fall Area Meetings. The dates and locations for those meetings now have been set and are detailed in the chart below. All NCCBI members are invited to attend one or more of the events.

A brochure will arrive in your mail soon that you can use to register to attend the meeting of your choice. Please refer to the schedule below for the date of the meeting in your city. Please notice that the meetings are scheduled by geographic region. That means that if a schedule conflict prevents you from attending your local meeting, there’s a good chance of catching one the next day in a town not far away.

 
Names in the News
Duke Energy receives high honor from Red Cross
Duke Energy was honored with the Philos Award by the Greater Carolinas Chapter of the American Red Cross, recognizing it as the top philanthropic organization of the year. The company was honored for its support of the many Red Cross programs, and for motivating other companies to be financial contributors. After the 9-11 tragedy in 2001, Duke Energy donated more than $1 million to the Red Cross’ Sept. 11 Liberty Fund – through a donation, but also by matching employee contributions, too. The company has also helped the Red Cross bring relief to victims of natural disasters around the world.  “Our partnership with the Red Cross has allowed Duke Energy to reach out to the many areas we serve around the globe, and to help the Red Cross bring disaster relief and aid to regions in need,” said Jim Hendricks, Duke Energy’s vice president of corporate responsibility. “We are pleased to help support the fine efforts of the Red Cross.” The Philos Award is bestowed upon the individual and the organization, corporation, or foundation that best exemplifies the spirit of charitable giving. For 2002, the actions of the receiving organization contributed significantly to the operations, programs and services of the Red Cross and have motivated other financial contributions.

Parsons named new head of Association of Defense Attorneys
Gary S. Parsons, a partner in the Raleigh law firm of Bailey & Dixon, was installed as president of the N.C. Association of Defense Attorneys for the 2003-2004 year. D. Clark Smith Jr., a partner in the Lexington law firm of Brinkley Walser PLLC, is immediate past president. Other association officers elected during the group’s recent annual meeting include:  J. Nicholas Ellis, a partner with Poyner & Spruill practicing in the firm's Rocky Mount office, as president-elect; Mel J. Garofalo, a partner with Hedrick Eatman Gardner & Kincheloe in Charlotte, as executive vice president; Jodee Sparkman Larcade, a partner with Larcade & Heiskell in Raleigh, continues a second year as treasurer; Harvey L. Cosper Jr., a partner with Parker Poe Adams & Bernstein practicing in the firm's Charlotte office, as secretary. Elected to serve a three-year term on the board of directors were: Roger A. Askew, Baker Jenkins Jones Murray Askew & Carter, Rocky Mount; Stuart L. Egerton, Patterson Dilthey Clay Bryson & Anderson, Raleigh; Jacqueline D. Grant, Roberts & Stevens, Asheville; Robert H. Griffin, Cranfill Sumner & Hartzog, Raleigh; and Erna A. P. Womble, Womble Carlyle Sandridge & Rice, Winston-Salem.  Elected to serve two-year terms on the board was Douglas W. Ey Jr., Helms Mulliss & Wicker, Charlotte. Elected to a one-year term was Martha W. Surles, Morris York Williams Surles & Barringer, Charlotte. Ex-officio members of the board include Stephen C. Baynard, Ennis Newton & Baynard, Wrightsville Beach, will serve as chair of the NCADA's Young Lawyers Committee. Richard V. Bennett, Bennett Guthrie & Dean, serves as the DRI State Representative for North Carolina. James H. Kelly Jr., Kilpatrick Stockton, Winston-Salem, will serve a one-year ex-officio term as a past president of the Association.  

 Reuben Young was elevated to legal counsel to Gov. Mike Easley, succeeding Hampton Dellinger, who resigned to become a partner in the Raleigh law offices of Womble Carlyle Sandridge & Rice. Young has served as the governor's deputy legal counsel since 2001. Before joining Easley’s staff, Young was an assistant attorney general from 1995-2001. He was an assistant attorney general for the State of Texas from 1994-1995. He earned his bachelor's degree from Howard University in Washington, D.C. in 1980 and earned his law degree from N.C. Central University in 1985.