December 12, 2001

New law gives public bodies greater flexibility
in contracting for construction of new facilities
The General Assembly on Dec. 4 adopted a bill giving public institutions, notably the UNC System, greater flexibility to construct buildings. The legislation, H. 623 Public Construction Law Changes, allows institutions to construct buildings in a more effective and efficient way and affords additional opportunities for North Carolina businesses to contract with public entities. 

Final revisions accepted on amended Bill Lee Act
After weeks of wrangling over whether the state can afford more tax breaks for industry, the House and Senate gave final approval to new incentives to help existing businesses expand and to attract new companies to North Carolina, particularly those locating in rural areas. Among those that would benefit are Lowe's, which plans to build a $75-million distribution center in Northampton County; and FedEx, which plans to build a hub in the Triad. Incentives also will be available for any company that invests at least $10 million in real estate and hires at least 200 new workers within two years. Alcoa gets a tax break for the electricity it uses to produce aluminum at its plant in Badin. Starting in 2005, all companies that use at least 5,000 megawatts of electricity in their manufacturing processes will get the tax break. The legislation continues until 2008 an exemption from sales taxes for a $300 million sorting hub that the Piedmont Triad Airport Authority plans to build and lease to FedEx.

Bill passes extending tax credit for exporting through state ports
The House and Senate on Dec. 3 accepted conference committee reports on H. 1388 Extend Sunset on State Ports Tax Credit {Hurley}, legislation that extends for two years an existing tax break for wood chip mills and other shippers that export products through the state ports at Wilmington and Morehead City. The Senate vote on the conference committee report was 36-1 while the House voted 79-11. Some House members, at the urging of environmentalists, had wanted to drop wood chips from the type of products that qualify for the tax credits, but the Senate balked. The tax credit is designed to stimulate business at North Carolina's ports and applies to those present or potential ports' customers -- businesses or individuals -- who are subject to the North Carolina state income tax. The law allows customers to earn tax credit on certain fees for cargo which exceeds the average of fees paid on cargo handled through the ports for the previous three years, inclusive of the current tax year. This amount is credited against income taxes due the state, up to 50 percent of the total annual tax liability. Any unused credit can be carried forward for the succeeding five years. The lifetime tax credit is limited to $2 million per corporation or individual taxpayer.

Legislation Enacted
Below are brief summaries of bills passed during the final weeks of the session

SL 2001-462 (S. 139) Local Flexibility Regarding Charter School Teachers. An act to permit local flexibility with regard to the rehiring of teachers who leave public schools to teach in charter schools, and to authorize certain charter schools to elect to participate in the teachers' and state employees' retirement system. Effective Nov. 16, 2001. Section 1 applies to requests under GS 115C-238.29F(e)(3) that are made on or after the effective date.

SL 2001-460 (S. 17) Election Rewrite/Ballots and Voting. An act to rewrite Article 13 and Article 14 of chapter 163 of the general statutes, as recommended by the Election Laws Revision Commission; to permit the use of certain gender titles on the ballot; to give the county board of elections flexibility in setting a buffer zone around a voting place, with a minimum of 25 feet; and to make conforming changes. Effective Jan. 1, 2002.

SL 2001-461 (S. 833) Possession/Manufacture of Fraudulent IDs. An act to make possession or manufacture of fraudulent forms of identification an offense, to make it illegal to possess fraudulent identification while attempting to enter the premises of an alcohol permittee or obtain alcoholic beverages, and to authorize the drivers license technology fund. The electronic system to be established pursuant to Section 4 of this act shall not be operated by the commissioner until such time as the Drivers License Technology Fund contains sufficient funds to meet the purposes of Section 4 of this act and only for so long as adequate funds are available to operate the electronic system. Sections 4 and 5 are effective Nov. 14, 2001. The remainder of this act is effective Dec. 1, 2001.

SL 2001-457 (H. 1471) Terrorism Defense Funds. An act to appropriate funds from the General Fund and to authorize the governor to access funds from the savings reserve account to address terrorism issues. Effective Nov. 8, 2001.

SL 2001-463 (S. 968) UNC Nonappropriated Capital Projects. An act to authorize the construction and the financing, without appropriations from the General Fund, of certain capital improvements projects of the constituent institutions of the University of North Carolina. Effective Nov. 16, 2001.

SL 2001-464 (H. 108) Counties Collect Delinquent Taxes Before Record Deeds. An act to authorize Alleghany, Anson, Beaufort, Cabarrus, Camden, Cherokee, Chowan, Currituck, Forsyth, Graham, Granville, Harnett, Haywood, Jackson, Lee, Madison, Montgomery, Pasquotank, Perquimans, Pitt, Stanly, Swain, Vance, Warren, and Yadkin counties to require the payment of delinquent property taxes before recording deeds conveying property. Effective Nov. 16, 2001. Section 2 of this act is repealed July 1, 2002.

SL 2001-465 (S. 826) Criminal Record Check Change/Long-Term Care. An act to suspend the requirement for a national criminal history record check for certain applicants for certain positions in certain long-term care facilities because of federal requirements limiting distribution of record check results until Jan. 1, 2003, and to authorize the Legislative Research Commission to study criminal history record checks. Effective Nov. 16, 2001.

SL 2001-466 (H. 1046) Election Changes. An act to provide for postponing the filing period for candidates in 2002 primary elections and for postponing the 2002 primary elections if necessary; to permanently change filing periods beginning after 2002; to improve the accuracy and understandability of precinct data; and to make definitional and technical changes to the election laws. Effective Nov. 16, 2001.

SL 2001-462 (S. 139) Local Flexibility Regarding Charter School Teachers. An act to permit local flexibility with regard to the rehiring of teachers who leave public schools to teach in charter schools, and to authorize certain charter schools to elect to participate in the Teachers' and State Employees' Retirement System. Effective Nov. 16, 2001.

SL 2001-469 (H. 1472) Biological Agents Registry. An act directing the Department of Health and Human Services to establish a biological agents registry, and imposing civil penalties for violation of registry requirements. Effective Jan. 1, 2002.

SL 2001-470 (H. 1468) Certain Weapons of Mass Destruction. An act to provide criminal penalties for the knowing manufacture, assembly, possession, storage, transportation, sale, purchase, delivery, or acquisition of nuclear, biological, or chemical weapons of mass destruction, to provide criminal penalties for the use or attempted use of nuclear, biological, or chemical weapons of mass destruction, to provide criminal penalties for the false reporting of a nuclear, biological, or chemical weapon of mass destruction, to provide criminal penalties for the perpetration of a hoax by the use of a false nuclear, biological, or chemical weapon of mass destruction, and to provide that murder by means of a nuclear, biological, or chemical weapon is first degree murder. Effective Nov. 28, 2001.

SL 2001-471 (H. 1477) Congressional Redistricting Wright 3A. An act to divide North Carolina into thirteen congressional districts. Effective Nov. 28, 2001.

SL 2001-473 (S. 774) Public Enterprise Customer Billing Privacy. An act to provide for the privacy of billing information of customers of public enterprises. Effective Nov. 29, 2001.

SL 2001-474 (S. 920) Environmental Technical Corrections. An act to repeal obsolete statutes and to make clarifying, conforming, and technical amendments to various laws related to the environment, public health, and natural resources. Effective Nov. 29, 2001, except as otherwise provided.

SL 2001-475 (S. 970) Grape Growers Council Funds. An act to increase the amount of wine tax proceeds earmarked annually for the grape growers council. Effective Oct. 1, 2001.

SL 2001-476 (S. 748) Bill Lee Act Changes. An act to amend the William S. Lee Quality Jobs and Business Expansion Act; to apply a graduated tax rate to sales of electricity to manufacturers based on annual volume of electricity used; to apply definitions from the streamlined sales tax project to the sales tax holiday; and to provide a four-year extension on the exemption from bidding law requirements for the Piedmont Triad International Airport Authority. Effective Nov. 29, 2001, except as otherwise provided.

SL 2001-477 (S. 881) Workers’ Comp Awards Filed As Judgments. An act to provide that agreements, orders, and final awards under the workers' compensation act may be entered as judgments by the clerk of Superior Court. Effective June 1, 2002, and applies to all forms filed and awards arising under GS 97-18(b), 97-18(d), or 97-82(b) that are filed or that arise before, on, or after that date; all agreements approved by the North Carolina Industrial Commission under the Workers’ Compensation Act, Article 1 of Chapter 97 of the General Statutes, that are approved before, on or after that date; all orders or decisions of the North Carolina Industrial Commission under the Workers’ Compensation Act that are entered before, on, or after that date; and all awards of the North Carolina Industrial Commission unappealed from or affirmed upon appeal under the Workers’ Compensation Act that are awarded before, on, or after that date, and to all Certificates of Accrued Arrearages that are issued on and after that date.

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