Other stories below:
Senate approves changes to
Bill Lee Act
Senate
redistricting plan moves toward a House vote
Senate
gives Treasurer more leeway in investments
Bill
to extend sunset on state ports tax credit passes Senate
Conferees
named on Patients Bill of Rights
Legislative
Actions
NCCBI
testifies in support of air permits bill
NCCBI
Vice President of Governmental Affairs Leslie Bevacqua
testified Tuesday in support of a committee substitute for a
bill that clarifies what construction can take place prior to
final approval of an air quality permit. The committee
substitute received a favorable report from the Senate
Committee on Agriculture, Environment and Natural Resources
and now will go to Senate Finance.
“This bill does not change any air quality standards,”
Bevacqua said. “The bill is a reasonable approach to address
the concerns of the state, the environmental interests and the
business community.”
S. 1037 No Air Permits/Facility/Equipment/Operation,
sponsored by Sen. David Hoyle (D-Gaston), has the full support
of the N.C. Department of Environment and Natural Resources (DENR)
as well as the business community. It allows businesses to
proceed with construction projects on a timely and
cost-effective basis while protecting the ability of DENR to
fully and fairly consider all aspects of the proposed projects
during permitting.
For the last decade, businesses that were constructing
facilities which would emit air pollutants were required to
obtain an air permit before beginning operations of that
facility. No permit was required to begin construction.
Recently, DENR and the Department of Justice have
reinterpreted the relevant statutes and began requiring
businesses to obtain air quality permits before beginning
construction. The new legislation specifies what part of the
construction is possible prior to final permit approval and
makes it clear that any business that chooses to begin
construction is acting at its own risk.
Senate
approves changes to Bill Lee Act
The
Senate gave final approval Friday to legislation expanding the
job credits offered in the Bill Lee Act to include companies
that build large distribution warehouses in the state’s
poorest counties. The bill, S. 748 Bill Lee Act Changes-AB
{Hoyle}, also includes a sales tax break on electricity for
companies that use electricity in manufacturing.
Although S. 748 could affect a number of businesses it was
designed to lure a Lowe's distribution center proposed in
Northampton County, where the home improvement chain announced
last spring that it would spend $90 million building a new
distribution center and hire as many as 600 people. Under the
legislation, distribution centers would only be eligible for
the tax breaks if they build in a Tier 1 or Tier 2 county.
They would also have to invest $10 million in land, buildings
or infrastructure and create at least 200 jobs within two
years.
The proposed changes in the Bill Lee Act would reduce
anticipated corporate income tax collections by $4.7 million
in the 2003-2004 fiscal year, rising to $14.3 million by
2005-2006, according to the legislature’s Fiscal Research
Division. That would be more than offset by increases in
personal income taxes from people taking new jobs created.
One piece of the bill has caused some concern for businesses
currently receiving tax credits for varied business
activities. Recently, the Department of Revenue has begun
taking the position that it is the business classification of
the entire legal entity that determines whether or not a
taxpayer is engaged in an eligible business for purposes of
the Lee Act credits. The legislation will only allow
businesses to receive credits for one type of business, rather
than receive credits for different business activities that
are taking place at different sites.
Bill
to extend sunset on state ports tax credit passes Senate
The
Senate Finance Committee favorably reported H. 1388 Extend
Sunset on State Ports Tax Credit, the measure sponsored by
Rep. Bill Hurley (D-Cumberland), and the bill later received
second- and third-reading approval in the Senate.
NCCBI’s
Transportation and Economic Development committees strongly
support this legislation which will continue to ensure the
strength of our state’s ports and credits for businesses
that use the ports. The credit, which expired Feb. 28, 2001,
is a valuable incentive for businesses currently in North
Carolina and a valuable tool for recruiting new businesses.
H 1388 extends the sunset to 2006.
In a letter to House Finance Committee chairs in support of
the bill, NCCBI President Phil Kirk stated, “Now is not the
time for North Carolina to remove tax credits for businesses.
Our economy is suffering, the unemployment rate exceeds the
national rate, and we have lost more manufacturing jobs than
any other state.”
Senate
redistricting plan moves toward a House vote
The
Senate gave second- and third-reading approval to S. 798
Senate Redistricting {Miller} on Wednesday. The plan emerged
from the Senate Redistricting Committee after the panel
rejected two other maps that committee leaders said would harm
blacks and rural residents. Observers said the redistricting
plan essentially would preserve the status quo in the Senate,
which Democrats control by a 35-15 majority.
Observers said the plan proposes 11 solidly Democratic
districts and 15 other districts that tilt Democratic. It
includes 9 solidly Republican districts and 6 others that tilt
Republicans. The map includes 9 swing districts. All of the
swing districts currently are represented by Democrats.
An analysis of the proposed Senate redistricting map by Sam
Watts of Strategic Analysis and Messaging concludes that, to
maintain a minimal majority of 26 seats in the chamber, Senate
Democrats would only need to hold their base seats and keep at
least two of the nine swing districts. On the other hand, for
Republicans to gain control, their would need to hold all of
their base seats, win all nine of the swing seats and take two
of the Democratic base seats.
Senate
gives Treasurer more leeway in investments
In
a 32-12 vote, the Senate on Tuesday gave second- and
third-reading approval to H. 327 Revise Treasurer
Investment Authority {Allen} and returned the measure to
the House for concurrence in amendments. The legislation gives
the state Treasurer the discretion to invest up to 65 percent
– now, 50 percent -- of state employee pension funds in the
stock market and up to 5 percent – now, none -- in venture
capital and hedge funds. The bill also requires the Treasurer
to report more frequently to the legislature and in more
understandable terms the results of such investments.
Conferees
named on Patients Bill of Rights
Senate
President Pro Tem Marc Basnight and House Speaker Jim Black
announced their appointments to a conference committee to
resolve differences in S. 199 Patients Bill of Rights
legislation that each chamber passed last month. The Senate
conferees are Allen Wellons (D-Johnston), Jeanne Lucas
(D-Durham), Tony Rand (D-Cumberland), Jim Forrester (R-Gaston)
and Bill Purcell (D-Scotland). The House conferees are Edd Nye
(D-Bladen), Joe Hackney (D-Orange), Wilma Sherrill
(R-Buncombe), Zeno Edwards (D-Beaufort), Bill Hurley
(D-Cumberland) and Larry Justus (R-Henderson). Sen. Wellons,
who sponsored the original legislation, and Rep. Nye are the
co-chairs.
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