Legislative Bulletin

August 3, 2001


See the list of new laws put on the books recently

There have been these developments on bills of general interest

The General Assembly on Monday night adopted a third continuing resolution that will allow state government to continue operating until a budget has been adopted for the new fiscal year that began July 1. The bill, S. 34 Continue Budget Authority {Odom} received second- and third-reading approval in the Senate and was enrolled. It specifies that state agencies may continue operating at spending levels set in last year’s budget through Aug. 29. The previous continuing resolutions, which each ran for two weeks, expired July 30. The Senate approved the continuing resolution on a vote of 37-4. While keeping state government operating, the measure also provides $36 million for the state health plan to help make current payments to doctors and hospitals. It also authorizes the Department of Correction to contract for the construction of three prisons in Anson, Alexander and Scotland counties.

Legislation allowing public schools to post the Ten Commandments received final approval in the House on July 26 and the measure was enrolled. The bill, H. 195 N.C. History Taught in 4th and 8th Grade {Barefoot}, also requires schools to teach a class in North Carolina history and geography in elementary school and again in middle school. The bill’s sponsor, Rep. Dan Barefoot (D-Lincoln) said he had met with two staff attorneys from the Attorney General’s office and that they said the bill would pass constitutional muster. The bill limits posting of the commandments to part of a display showing other documents that have led to the development of the western system of law and the U.S. Constitution.  Gov. Easley said he would sign the bill “because the character education and dress code provisions will help give our students a proper environment not just to learn, but to excel. We all like to believe our young people are taught respect, responsibility and self-discipline at home but the truth is some are not. If they do not learn it at the schoolhouse, the next stop may be the courthouse. This is an effort to ensure that every student who wants to learn will be in an environment that enables them to learn.”

The House on Wednesday adopted a conference committee report on S. 16 Municipal Election Boards {Gulley}, the measure that abolishes most municipal boards of elections in favor of having county boards of elections administer all elections.

By a vote of 82-19, the House on Monday gave third-reading approval to S. 92 Various Local Occupancy Taxes {Kerr} and sent the bill to the Senate for concurrence in amendments. The measure allows Gastonia, Kings Mountain, Lincolnton, North Topsail Beach and Pender County to levy new 3 percent occupancy taxes. The measure requires Gastonia, Kings Mountain and Lincolnton to earmark at least two-thirds of the taxes generates to promote travel and tourism in the towns. The towns may use the rest for other tourism-related projects, such as convention centers.

The House on July 24 gave third-reading approval to H. 698 Carteret Occupancy Taxes {Smith} and sent the measure to the Senate. The bill raises the occupancy tax in Carteret County from 3 cents to 6 cents, with the extra revenue earmarked to fund the local share of beach nourishment projects in the county until 2006, when 1 cent of the tax would go to build a new convention center, probably on Bogue Banks.

The Senate on Monday concurred with House amendments to S. 11 Election Changes – Miscellaneous {Gulley} and the measure was enrolled. The bill, one of many adopted by the General Assembly this year updating North Carolina’s election statutes in the wake of the Florida presidential balloting controversy, requires local boards of elections to notify voters at least 30 days before an election of a precinct change. It also sets procedures to be followed of a vacancy in a presidential ticket on the state ballot is filled after the nomination process is over. The bill also specifies that military personnel, their spouses and Peace Corps members can register and vote on Election Day in their home counties if they were overseas during the registration period.

The Senate on July 26 gave unanimous second- and third-reading approval to S. 904 Enact Mortgage Lending Act {Gulley} and sent the measure to the House. The bill, a compromise measure worked out earlier in the month with the mortgage industry after three years of effort by consumer advocates, imposes tighter regulations on the mortgage lenders. It requires mortgage brokers and lending businesses to be licensed and sets out uniform business and education standards. The provisions encourage brokers to offer the best loan terms for clients. Originating loans without a license is a felony under the bill. The bill has the support of mortgage bankers and mortgage brokers, the Coalition for Responsible Lending and the Attorney General's office.

By a vote of 92-19, the House on July 26 gave third-reading approval to H. 381 Mental Health System Reform {Insko} and sent the measure to the Senate. The legislation gives county governments more authority over local mental health programs. The bill is the first of several measures proposed by a study commission to overhaul of the state's mental health system. North Carolina’s mental health system has been criticized for mismanagement and providing inadequate services. H. 381 requires that the state's 39 local mental health programs be trimmed to at least 20 by 2007.

The Senate on Monday concurred with House amendments to S. 398 Check Casher Act Sunset Extended {Foxx} and the measure was enrolled. It extends the state's current payday lending statutes, which was about to expire, to Aug. 31. The extension gives legislators more time to update regulations governing the rapidly-growing payday lending industry.

By a vote of 41-1, the Senate on Monday gave second- and third-reading approval to S. 400 No Tax on Newspapers Sold in Vending Machines {Hoyle} and sent the measure to the House. The measure clarifies that newspapers sold ion vending machines are not subject to the 6 percent sales tax. The bill now goes to the House.

The Senate on July 26 gave unanimous concurrence to House amendments to S. 278 Theft of Gasoline/License Suspension {Hagan} and the measure was enrolled. The bill allows the state to suspend the driver’s license of motorists who pump gas but drive off without paying. A person convicted twice of stealing gasoline would get a 90-day license suspension; a third or subsequent conviction would mean a six-month suspension.

The Senate on July 25 gave unanimous second and third-reading approval to H. 977 Early Voting {Nesbitt} and the measure was enrolled. The bill extends the popular "no-excuse" absentee voting first allowed in last November's election to primaries. About 400,000 voters cast ballots during a three-week period before Election Day last November. Without having to give a reason for voting early. H. 977 extends the one-stop no-excuse absentee voting to party primaries and eliminates the excuse requirement for mail-in ballots in all elections.

By a vote of 41-1, the Senate on July 24 concurred with House amendments to S. 173 No Death Penalty/Mentally Retarded {Balance} and the measure was enrolled. As amended by the House, the legislation gives jurors more power in determining whether a defendant is truly mentally retarded or trying to avoid a death sentence. Seventeen states and the District of Columbia already have some kind of ban on executions of the mentally retarded, according to the Death Penalty Information Center. The legislation defines as mentally retarded anyone whose IQ was recorded at 70 or lower before the age of 18, with "significant limitations in adaptive functioning" at the same time. The ban would apply to capital trials that begin on or after Oct. 1. Any current death row prisoner would have several months to file a motion seeking a hearing before a judge on the issue.

The Senate on July 26 gave third-reading approval to S. 144 Streamlined Sales and Use Tax Agreement {Kerr} and the measure was enrolled. The measure authorizes the secretary of he Department of Revenue to enter into agreements with other states to try to collect the sales taxes from purchases made online. The measure, which is supported by NCCBI and many other groups, attempts to streamline the state's sales tax code to make it easily enforceable through the use of computer software that would be made available to online merchants in other states. Sen. John Kerr (D-Wayne), the bill’s sponsor, has said that the collection mechanism could bring in $450 million in new revenue. The measure was recommended by the Revenue Laws Study Commission.

Legislation Enacted

SL 2001-289 (H. 31). Presidential Elector Challenge. An act to provide for selection of presidential electors by the General Assembly if the election results have not been proclaimed by the sixth day before electors are to meet, and by the governor if electors have not been selected by the day before electors are to meet. Effective July 19, 2001.

SL 2001-290 (H. 218). Injury to Commodities or Production Systems. An act to provide for double damages for the injury to, or the destruction of, agricultural commodities or production systems. Effective Oct. 1, 2001.

SL 2001-291 (H. 275). Infant Homicide Prevention Act. An act to decriminalize abandonment of an infant under certain circumstances and to modify some procedures involving abandoned juveniles. Effective July 19, 2001.

SL 2001-309 (S. 715). DSS/Indian Affairs Collaboration. An act to require collaboration between the Division of Social Services and the Commission of Indian Affairs and the North Carolina directors of Social Services Association on Indian Child Welfare Issues. Effective July 27, 2001.

SL 2001-310 (H. 34). Ban Butterfly and Punch-Card Ballots. An act to ban butterfly and punch-card ballots. Effective July 28, 2001.

SL 2001-311 (S. 690). Centennial Authority Changes. An act to amend the Facility Authority Act so as to clarify that the chancellor represents the interest of a constituent institution of the University of North Carolina. Effective July 28, 2001.

SL 2001-312 (H 1246). BOG Study Admissions/Youths in Institutions of Higher Education. An act to direct the Board of Governors of the University of North Carolina, in cooperation with the State Board of Education and the State Board of Community Colleges, to study the measures used for admissions, placement, and advanced placement decisions by the constituent institutions of the state's university system, to allow intellectually gifted youths to attend community colleges, and to allow certain youths to be employed by institutions of higher education. Effective July 28, 2001.

SL 2001-313 (S 628). Out-of-State CPAs/Fees. An act requiring out-of-state certified public accountants to notify the State Board of Certified Public Accountant Examiners when they perform work in this state, authorizing the board to increase fees, and amending certain provisions relating to certified public accountants. Effective July 28, 2001.

SL 2001-314 (H. 1193). Voter Address Change by Fax. An act to allow voters to report changes of address by fax. Effective Jan. 1, 2002.

SL 2001-315 (H. 1186). Voter Registration by Fax. An act to allow civilians the same right as military personnel to register to vote by fax. Effective Jan. 1, 2002.

SL 2001-316 (H. 1126). Clarify Residency for Registration or Voting. An act to clarify the definition of residency for persons engaging in the service of state government, and to make other technical changes. Effective July 28, 2001.

SL 2001-317 (H. 57). Labeling Campaign Ads. An act to provide reasonable and practical requirements for the labeling of campaign ads; and to clarify media liability. Effective July 28, 2001.

SL 2001-318 (H 897). Appointments/Triangle Native American Society. An act to provide for representation of the Triangle Native American Society on the North Carolina Commission of Indian Affairs, the North Carolina Indian Housing Authority, and the board of the North Carolina Indian Cultural Center Inc. Effective July 28, 2001.

SL 2001-319 (H. 831). Election Changes. An act to provide a greater role for the State Board of Elections in personnel decisions concerning county election directors; to enhance the certification program for election officials; to remove limitations on two provisions concerning precincts; to change the length of the one-stop voting period; to allow county boards of elections to use other one-stop sites instead of the county board office as long as a nearby site is provided; to allow later acceptance of voter registration applications; to provide for electronic transfer of voter registration applications from the Division of Motor Vehicles; to update the statutes concerning voter registration list maintenance; to require permanent voter registration numbers; to apply the write-in statute to Superior Court judge elections; to correct a reference in the campaign finance law; to require that all new precinct lines follow census block lines unless the executive director of the State Board of Elections grants a waiver after making certain findings; and to rename the executive secretary-director of the State Board of Elections the executive director. Effective July 28, 2001.

SL 2001-320 (H. 668). Settlement Procedures in District Court Actions. An act to establish mediated settlement procedures in District Court actions involving family financial issues. Effective Oct. 1, 2001.

SL 2001-292 (H. 980). Children in Voting Enclosures. An act to allow children of a voter to accompany the voter into the voting enclosure. Effective July 21, 2001.

SL 2001-293 (H. 558). Real Estate/Travel Agent Fees Regulated. An act to authorize the real estate commission to adopt rules to permit real estate brokers to pay travel agents for procuring potential tenants in vacation rentals. Effective Jan. 1, 2002.

SL 2001-294 (H. 440). Embalmers and Funeral Directors. An act to amend the embalmers and funeral directors law of North Carolina. Effective Dec. 1, 2001.

SL 2001-295 (S. 1023). Revise Uniform Electronic Transactions Act. An act to revise the Uniform Electronic Transactions Act. Effective Oct. 1, 2001.

SL 2001-296 (H. 824). Installation of Sewer Cleanout Required. An act to require the installation of an accessible cleanout at the junction of the public sewer line and the house or building sewer line. Effective Oct 1, 2001, and applies to the installation of house and building sewer lines that occur on or after that date.

SL 2001-297 (H. 593). Health Insurance/Licensed Professional Counselor. An act to provide for direct payment of licensed professional counselors under health insurance policies and plans. Effective Oct. 1, 2001, and applies to claims for payment or reimbursement for services rendered on or after that date.

SL 2001-298 (H. 1067). Clarify Auto Repair Bill of Rights. An act to clarify the Automotive Bill of Rights. Effective July 21, 2001.

SL 2001-299 (S. 367). Low-Income Housing Credit Program Exempt/APA. An act to exempt the North Carolina Federal Tax Reform Allocation Committee and the North Carolina Housing Finance Agency from the rule-making requirements of the Administrative Procedure Act with regard to adoption of the qualified allocation plan. Effective July 21, 2001.

SL 2001-300 (H. 968). Soil and Water Employee Judgments. An act to clarify the authority of counties and cities to provide for the defense of and to pay judgments against soil and water conservation supervisors and employees. Effective July 21, 2001.

SL 2001-301 (H. 236). Sanitary District Satellite Annexation. An act to allow certain sanitary districts to make satellite annexations in conjunction with similar annexations made by municipalities located within the sanitary district. Effective July 21, 2001.

SL 2001-302 (H. 1286). Victims’ Information Repository. An act repealing the requirement of the conference of district attorneys to maintain a repository relating to victims' information. Effective July 21, 2001.

SL 2001-303 (S. 836). School Assignment/Child In Pre-Adoptive Home. An act to modify the public school residency requirement for children residing in pre-adoptive homes. Effective July 21, 2001.

SL 2001-304 (S 407). Charlotte Stormwater/Transit Quick Take. An act to amend the charter of the city of Charlotte to allow that city to use quick take procedure for acquisition of property to be used for stormwater and public transportation systems. Effective July 23, 2001.

SL 2001-305 (H. 757). Raise Washington Occupancy Tax. An act to authorize Washington County to increase its room occupancy tax for tourism promotion. Effective July 24, 2001.

SL 2001-306 (S. 653). Foothills and Mitchell County Local Acts. An act to make local modifications in the Foothills region concerning airports and in Mitchell county concerning elections. Effective July 26, 2001.

SL 2001-307 (H. 1174). Increase Penalty/Drug Sales at Parks. An act to increase the criminal penalty for the sale of drugs in public parks and playgrounds. Effective Dec. 1, 2001

SL 2001-308 (H. 42). Property Tax Homestead Exclusion. An act to provide property tax reductions by authorizing local governments to reduce property taxes in light of the governor's unanticipated release of withheld reimbursements and by expanding homestead property tax relief for elderly and disabled homeowners. Section 3 of this act becomes effective July 1, 2001, and expires Oct. 1, 2001. The remainder of this act becomes effective for taxes imposed for taxable years beginning on or after July 1, 2002. 

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