Legislative Bulletin

December 12, 2001


Studies bill gives hints at legislation that may surface next year
Observers and lobbyists closely read the so-called “studies bill” adopted by the General Assembly before it adjourns each year because it specifies what issues the Legislative Research Commission (LRC) may study during the interim. Often, these studies turn into bills that are introduced during the following legislative session. We’ve gone through this year’s lengthy studies bill and culled out those topics that will be of interest to NCCBI members:

Insurance and Managed Care Issues: Issues the LRC may study include high-risk insurance health pools; insurance availability in beach and coastal areas; moratorium on health insurance mandates; uninsured motorist coverage; motor vehicle insurers may not mandate non-original crash parts; workers’ compensation insurance classifications.

Environmental/Agricultural Issues: The LRC will study deposits on beverage containers.

Government Regulatory Issues: Clear cutting and development growth management in Raleigh; safety requirements in state building code; naturopathy; establishing a state energy program and the use of alternative financing agreements to finance energy conservation projects in state facilities; government tort claims; impact of licensure and reimbursement requirements for licensed psychological associates on health care and on these practitioners; construction contracts/retainage reform.

Transportation Issues: Steering and the offering of incentives with regard to motor vehicle glass repairs; use of cellular telephones in vehicles.

Election Issues: Providing for a later primary date.

Consumer Issues: Mandatory arbitration provisions in consumer contracts. 

Education-Related Issues: Payment of costs incurred by constituent institutions of the University of North Carolina for municipal services, including issues related to storm water systems, fire protection, and traffic congestion; reporting threats of school violence.

Civil Law: Distribution of wrongful death proceeds; use of traffic control photographic systems.

Other: Economic impact of state’s tourism industry; zero-based budgeting.

Availability of Liability Insurance for Long-Term Care Facilities, Physicians and Hospitals:
The LRC shall consider: The factors causing and compounding reductions in underwriting capacity; the underwriting and marketing practices of insurers and producers writing liability insurance for long-term care facilities, physicians, and hospitals; optional methods of risk management or risk sharing that may be utilized by long-term care facilities, physicians, and hospitals; the effects of diminished underwriting capacity in long-term care facility, physician, and hospital liability insurance on the state’s economy. 

Employment Security: The LRC may study issues relating to the state’s Employment Security Law, with an emphasis on the unemployment insurance tax. The study may include the following issues: Changes in the North Carolina economy and job market and their effect on the balance of the state Unemployment Insurance Trust Fund. What minimum and maximum balances would be most reasonable for the fund to assure that it will be adequate but not excessive. Recommendations from the Employment Security Commission, including the appropriate low balance in the Unemployment Trust Fund; the average duration of unemployment in the state and its impact on the appropriate tax rate and balance of the Trust Fund; the current reserve of the Employment Security Commission Reserve Fund, and the proper use of that reserve; the state Unemployment Insurance Tax base rate, options for adjusting the rate, and the effect on Trust Fund revenue resulting from the various options available to adjust the rate.

Additional studies of interest approved in the study bill include:

Joint Legislative Growth Strategies Oversight Committee: The committee shall examine growth and development issues and strategies in order to make recommendations to the General Assembly on ways to promote comprehensive and coordinated local, regional, and state growth planning and public investment. The Committee may study recommendations of the Commission to Address Smart Growth, Growth Management, and Development Issues; consider strategies that help communities and regions maximize the benefits of growth by developing transportation choices, protecting natural and cultural resources, enhancing the vitality of downtowns and existing neighborhoods; analyze legislation from other states regarding local, regional and state planning and growth management; assess the viability of a comprehensive statewide growth policy; determine how to increase the full range of affordable housing opportunities for low- and moderate-income North Carolinians; and study the fiscal relationship between state agencies and the communities in which they are located.

Legislative Alcoholic Beverage Control Study Commission: The commission shall study the following matters: benefits and costs of “control” and “license” systems, as implemented in other states, or privatization of alcoholic beverage control, with particular focus on which type of system is more efficient; aspects of organization, structure, and function of the North Carolina ABC Commission and local alcoholic beverage control systems, including statutory authority, policy-making and regulatory functions, price-setting functions, distribution functions, purchasing, budget, staffing, capital assets, and other fiscal and financial matters; schedule, collection and distribution of alcohol-related taxes and fees, including the taxes and fees currently applicable and not applicable to the sale of alcoholic beverages; possible efficiency enhancements to the ABC system; other issues, including location and zoning of retail stores, liquor advertising, effects of price on alcohol consumption, uniformity throughout the state of alcoholic beverage availability and sales, and direct purchase of alcoholic beverages from out-of-state wholesalers.

DOT Study of Piedmont Area Commuter Rail Line Acquisition: The Department of Transportation Rail Division shall study the feasibility of acquiring rail lines or usage rights on rail lines in Forsyth, Guilford and neighboring counties for commuter rail service operated by the Piedmont Authority for Regional Transportation. The department shall consult with the authority in conducting its study. The Department shall report its findings and recommendations to the Joint Legislative Transportation Oversight Committee by May 1, 2002.

Joint Legislative Education Oversight Committee Studies. This ongoing study commission was authorized to consider a wide range of issues, including: residential charter schools, including what portion, if any, of the residential costs should be borne by the state, and whether nonresident students should be required to pay tuition; Halifax Community College service area, including whether additional townships in Northampton County should be included in the Halifax Community College service area; teaching personal financial literacy in schools; classroom experience for school personnel; schoolwork of suspended students; nutrition in public schools; tuition rates for noncitizen immigrant students; science, math and technology education; health care personnel education; the effects of requiring nine-month contracts of all full-time community college faculties; review of low-wealth school funding formula; high priority school assistance; performance-based licensure program; advisory State Board of Education members; participation of nonpublic students in public school extracurricular activities; and higher education residency requirements. 

Revenue Laws Study Committee:  Compliance with tax laws; travel and tourism capital incentive grants; credit card solicitation; apportionment formula.

Joint Legislative Health Care Oversight Committee:  Medical services to persons with disabilities; prescription drugs; county share of the cost of Medicaid; long-term care aide workforce.

Joint Select Committee On Information Technology Study: The committee shall examine issues related to protections for personal privacy and security, including the following: (1) Privacy protection and security of nonpublic personal financial information. (2) Privacy protection and security of personal consumer information. (3) Privacy protection and security of personal information collected on students by or through schools and their contractors. (4) Privacy protection and security of Internet use and use of electronic messaging. (5) Privacy protections and security for children online. (6) Privacy protection and security of medical records and personal health information. (7) Privacy protection and security of personal insurance information. (8) Privacy protection and security of personal information collected by the State. (9) Privacy protection and security of credit card numbers on credit card receipts. (10) Adequacy of the State’s computer “hacking” laws. (11) The potential interplay between federal security proposals and personal privacy considerations.

Environmental Review Commission Studies: Appointment of local health directors; expanding land and water conservation options; interconnection of public water systems; storm water programs and policies; abandoned mobile homes; and alternative energy sources.

House Select Committee On Various Environmental Rules: The committee may study any current rule adopted by, or any rule proposed by, the Environmental Management Commission or by the Coastal Resources Commission under the Coastal Area Management Act of 1974, Article 7 of Chapter 113A of the General Statutes, regarding the following subjects as well as the process whereby any such rule is adopted: (1) The creation, preservation, maintenance, and restoration of riparian buffers, buffers along lake shorelines, or buffers along the North Carolina coast. (2) Control of erosion and sedimentation resulting from the DOT engaging in land- disturbing activities. (3) The process of obtaining an air quality permit. (4) Any other current rule that the Committee determines is appropriate for study. The committee shall submit a final report of its findings and recommendations by Feb. 1, 2003, to the General Assembly.

Reestablish North Carolina Tax Policy Commission:  The mission of the commission is to study, examine, and, if necessary, design a realignment of the state and local tax structure in accordance with a clear, consistent tax policy. This mission requires: (1) Establishing the principles of taxation upon which a sound state and local tax structure should be built for the 21st century. (2) Examining the current state and local tax structure to determine if it reflects these principles. (3) Recommending changes in the state and local tax structure to the extent it does, and does not, reflect these benchmark tax principles. (4) Recommending principles and practices to simplify and consolidate existing taxes to provide uniformity; to ease the administrative burden on the taxpayer; to maximize taxpayers’ use of electronic tax payment and reporting methods; and to reduce the costs of collecting and administering taxes.

Joint Legislative Utility Review Committee Studies:  The committee is authorized to study clarifying and expanding the allowed uses of the money in emergency telephone system funds and making other statutory changes for the purpose of expanding the use of telecommunications systems for public safety purposes. The committee also is authorized to study requiring reductions in the emissions of certain pollutants from certain facilities that burn coal to generate electricity.

UNC Board Of Governors Study Commission:  The commission shall study the method of election or appointment of members of the Board of Governors, the length of members’ terms, the number of terms a member may serve, and the size of the Board of Governors. The commission may examine the governing boards of other states’ institutions of higher education.

Election Laws Revision Commission:  The commission shall prepare and recommend to the General Assembly a comprehensive revision of the election laws of North Carolina that will accomplish the following: (1) Remove inconsistencies, inaccuracies, ambiguities, and outdated provisions in the law. (2) Incorporate in the law any desirable uncodified procedures, practices, and rulings of a general nature that have been implemented by the State Board of Elections or its executive secretary-director. (3) Conform the statutory law to state and federal case law and to any requirements of federal statutory law and regulation. (4) Ensure the efficient and effective administration of elections in this state. (5) Continue the impartial, professional administration of elections, which the citizens of the state expect and demand. (6) Recodify the election laws, as necessary, to produce a comprehensive, clearly understandable structure of current North Carolina election law, susceptible to orderly expansion as necessary.

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