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Legislative
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Other stories below:
House approves toll roads legislation
Conferees named for air quality/motor vehicle
inspection fees legislation
Moratorium
on government health insurance mandates passes
Treasurer
given broader investment authority
Senate
approves another special ABC district
Several
local governments authorized to levy hotel taxes
List of new laws on the books
Amendment
to Bill Lee Act legislation sends it back to first reading
After
another round of lengthy debate Oct. 25 on the William S. Lee
Act, the House approved an amendment to delay reduced rates
for most industries that use large amounts of electricity in
their manufacturing processes. The amendment was considered
“material” and takes S. 748 Bill Lee Act Changes
{Hoyle} back to first reading.
The latest debate on the issue of economic development
incentives centered primarily on the section of the bill that
provides lower sales tax rates for certain sales of
electricity. The amendment, introduced by Rep. David Redwine
(D-Brunswick), would delay the effective date for the reduced
rates until July 1, 2005, for most of the state’s industrial
users of electricity. Only companies that use more than 1.2
million megawatts of electricity annually would see lower
rates beginning July 1, 2002. The only known company that uses
that amount of electricity is Alcoa, which operates an
aluminum plant in Badin.
The entire
bill is intended to expand the Bill Lee Act, which provides
incentives to recruit and retain quality business and industry
into North Carolina. The bill currently pending before the
House extends credits to companies that make substantial
investments in real property in Tier 1 and 2 counties and
expands the act to include customer service centers and
electronic mail order houses located in enterprise tier 3
areas. The bill also creates additional exceptions that allow
longer carryforwards, including any unused portion of a credit
with respect to research and development activities.
House
approves toll roads legislation
An
hour after it voted to kill the measure, the House on Oct. 4
reconsidered its action and then gave second-reading approval
to H. 644 Toll Road and Bridge Authority {Crawford}, a
measure that would create a state Turnpike Authority empowered
to build and operate toll roads. The bill received
third-reading approval the next day, and the measure was sent
to the Senate. The bill at first was rejected by a vote of
58-52 on Oct. 3, but Rep. Edd Nye (D-Bladen) later asked for
reconsideration of the vote and the measure passed by 65-47.
The Turnpike Authority would consist of the state Secretary of
Transportation and six members appointed by the governor. It
would be empowered to issue bonds to pay for highway
construction and to set tolls drivers would pay for using the
roads.
Conferees
named for air quality/motor vehicle inspection fees
legislation
After
the House failed to concur on Oct. 10 with a committee
substitute for H. 969 Air Quality/Motor Vehicle Inspection
Fees {Hackney}, conferees were appointed from both
chambers. Senate conferees are Sens. A.B. Swindell, chair;
David Hoyle; Fountain Odom; Tony Rand; Linda Garrou; and Aaron
Plyler. House conferees are Reps. Joe Hackney, chair; Pryor
Gibson; Connie Wilson; Bill Culpepper; and Jennifer Weiss.
The proposed committee substitute
would have modified the fee structure so that when fully
implemented, the total fee that a motorist would pay for an
emissions inspection would be $26 and the total fee that a
motorist would pay for a safety inspection would be $12. The
proposed committee substitute also directed the Joint
Legislative Transportation Oversight Committee to evaluate the
effectiveness of the safety inspection program and to evaluate
the potential impacts of eliminating the program.
Moratorium
on government health insurance mandates passes
By
a vote of 102-5, the House on Oct. 17 concurred with Senate
amendments to H. 1048 Moratorium on Health Insurance
Mandates {Redwine} and the measure was enrolled. The
measure creates a study of how state government mandates cause
increases in health insurance premiums. The House bill
originally would have initiated the moratorium on Jan. 1,
2002, but it accepted a Senate amendment delaying the
completion of the study and the beginning of the moratorium
until July 1, 2003.
Treasurer
given broader investment authority
By
a vote of 63-49, the House on Oct. 3 concurred with Senate
amendments to H. 237 Revise Treasurer Investment
{Allen} and the measure was enrolled and sent to Gov. Mike
Easley for his signature. The legislation, which was sought by
state Treasurer Richard Moore, gives the state treasurer
authority to invest more state employee pension money in
stocks, venture capital and hedge funds. The state's pension
funds now amount to about $50 billion. Currently, the
treasurer can invest up to 50 percent of the book value of the
pension fund, or about 56 percent of its market value, in
stocks. H. 237 The legislation would allow the percentage
invested in stocks to increase to 65 percent. Reporting
requirements by the treasurer's office also would be expanded.
Senate
approves another special ABC district
The
Senate on Oct. 3 gave second- and third-reading approval to H.
948 Redefine Special ABC Area {Haire} and returned the bill to
the House for concurrence in amendments. The measure adds to
the list of places where alcoholic beverage sales are allowed
in specially-defined districts even through mixed drinks may
not have been approved in a local referendum. H. 948 would
allow a special ABC area in a county where the following
requirements are met: The county borders on the Atlantic Ocean
and has a seaport supporting oceangoing vessels; ABC stores
have been established in the county and the sale of mixed
beverages is allowed in six or more municipalities; the
population of the county, according to the 2000 census,
exceeds
Several
local governments authorized to levy hotel taxes
The
General Assembly recently completed action on S. 92 Various
Local Occupancy Taxes {Hoyle}, a measure authorizing
several cities and counties to levy room occupancy taxes,
mostly for promoting travel and tourism. The House also
accepted a conference committee report resolving differences
between House and Senate versions of a similar bill, H. 685
Occupancy Taxes for Certain Counties {Gibson). The local
governments given the additional taxing authority under the
two bills, and the uses specified for the proceeds, are:
Gastonia: Room
occupancy tax of up to three percent, with net proceeds given
to the Gastonia Tourism Development Authority. The authority
shall use at least two-thirds of the funds to promote travel
and tourism in Gastonia and the remainder for tourism-related
expenditures.
Kings
Mountain: Room occupancy tax of up to three percent, with
net proceeds given to the Kings Mountain Tourism Development
Authority. The authority shall use at least two-thirds of the
funds to promote travel and tourism in Kings Mountain and the
remainder for tourism-related expenditures.
Lincolnton: Room occupancy tax of up to three percent,
with net proceeds given to the Lincolnton Tourism Development
Authority. The authority shall use at least two-thirds of the
funds to promote travel and tourism in Lincolnton and shall
use the remainder for tourism-related expenditures.
Monroe: Room occupancy tax of up to five percent, with
the net proceeds given to the Monroe Tourism Development
Authority. For the first 10 years, the authority shall use at
least two-thirds of the funds for tourism-related expenditures
and shall use the remainder to promote travel and tourism in
Monroe. Thereafter, the authority shall use at least
two-thirds of the funds to promote travel and tourism and the
remainder for tourism-related expenditures.
North Topsail Beach: Room occupancy tax of up to three
percent, with the net proceeds spent for beach nourishment.
Pender County: Room occupancy tax of up to three
percent, with the proceeds derived from accommodations in Surf
City remitted to that town and the proceeds derived from
accommodations in Topsail Beach remitted to that town. Surf
City and Topsail Beach shall spend the net proceeds of the tax
levied for beach nourishment. Proceeds derived from
accommodations elsewhere in Pender County shall be remitted to
the Pender Tourism Development Authority. The authority shall
use at least two-thirds of the funds to promote travel and
tourism in Pender County and the remainder for tourism-related
expenditures.
Dare County: Room occupancy tax of three percent, with
proceeds spent on beach nourishment.
Wilkesboro: Room occupancy tax of up to three percent,
with the net proceeds given to the Wilkesboro Tourism
Development, Convention, and Visitors Bureau. The bureau
shall use at least two-thirds of the funds to promote travel
and tourism in Wilkesboro and shall use the remainder for
tourism-related expenditures.
Harnett County: Room occupancy tax not to exceed three
percent on accommodations in Aversboro Township, with net
proceeds remitted to the Aversboro Township Tourism
Development Authority. The authority shall use at least
two-thirds of the funds remitted to it under this subsection
to promote travel and tourism in Aversboro Township and shall
use the remainder for tourism-related expenditures.
Richmond County: Room occupancy and tourism development
of three percent, with the net proceeds remitted to the
Richmond County Tourism Development Authority. The authority
shall use 50 percent of the funds to promote travel and
tourism in Richmond County and the remaining 50 percent for
tourism-related expenditures in the City of Rockingham that
are mutually agreed upon by the Richmond County Tourism
Development Authority and the Rockingham City Council.
Carrboro: Room occupancy tax of up to three percent,
with the net proceeds remitted to the Carrboro Tourism
Development Authority. The authority shall use at least
two-thirds of the funds to promote travel and tourism in
Carrboro and shall use the remainder for tourism-related
expenditures.
Beech Mountain: Room occupancy and tourism development
tax of three percent, with the net proceeds of the occupancy
tax to the Beech Mountain Tourism Development Authority. The
authority shall use at least two-thirds of the funds to
promote travel and tourism in Beech Mountain and shall use the
remainder for tourism-related expenditures.
Anson County: Room occupancy tax of up to three
percent, with the next proceeds distributed quarterly to the
Anson Tourism Development Authority. The authority shall use
at least two-thirds of the money to promote travel and tourism
in the county and the remainder for tourism-related
expenditures.
Avery County: Cities in the county that are not
otherwise authorized to do so may levy a room occupancy tax of
up to three percent. The taxing city shall remit the net
proceeds of the occupancy tax to the taxing city’s Tourism
Development Authority. The authority shall use at least
two-thirds of the funds remitted to it to promote travel and
tourism in the taxing city and shall use the remainder for
tourism-related expenditures.
Cabarrus County: Room occupancy tax of not less than
three percent nor more than six percent, with the net proceeds
remitted to the Cabarrus County Tourism Authority. The
authority may expend occupancy tax revenue remitted to it by
the county during a fiscal year, and any other revenue it
receives, only to develop or promote tourism, tourist-related
support services and facilities, tourist-related events,
tourist- related activities, or tourist attractions.
Montgomery County: Room occupancy tax of up to three
percent, with the proceeds distributed quarterly to the
Montgomery Tourism Development Authority. The authority shall
use at least two-thirds of the money to promote travel and
tourism in the county and the remainder for travel-related
expenditures.
Stanly County: Room occupancy tax of up to six percent,
with five-sixths the proceeds distributed quarterly to the
city of Albemarle. Albemarle then will remit 40 percent of its
proceeds to the Stanly County Tourism Development Authority.
Albemarle may spend the remainder on tourism-related
activities. Stanly County shall remit to each city in the
county other than Albemarle the net proceeds of the occupancy
tax derived from accommodations in that municipality. Each of
these municipalities shall remit to the authority each year
the greater of one dollar per capita or one-half of the amount
remitted to the municipality. The municipalities shall use the
remaining funds for tourism-related expenditures in the
county. The county shall remit to the authority the greater of
$25,000 a year or one-half of the remaining net proceeds of
the occupancy tax. The authority shall use the funds only to
promote travel and tourism in Stanly County. Stanly County
shall use the remainder of the proceeds only for
tourism-related expenditures in the county.
Legislation
Enacted
Sl 2001-446 (S. 199) Managed Care Patients’ Bill Of
Rights. An act to improve patient access to health care
advice, information, and services to covered persons under
health benefit plans by providing for: continuity of care in
HMOs, extended or standing referral to a specialist, selection
of specialist as primary care provider, direct access to
pediatricians, access to nonformulary and restricted access
prescription drugs, establishment of the managed care patient
assistance program, patient's right to choose the provider of
services under a health benefit plan and prohibition of
discrimination against providers as participating providers
based on the provider's license or certification, prohibition
on certain managed care provider incentives, managed care
reporting and disclosure requirements, provider directory
information, disclosure of payment obligations, mandated
coverage for clinical trials and newborn hearing screening,
and standards for independent review of noncertifications by
an insurer or managed care plan; to provide that enrollees of
health maintenance organizations receive the protections
provided by the North Carolina Life and Health Insurance
Guaranty Association; and to hold managed care entities liable
for harm caused to insureds or enrollees by the failure to
exercise ordinary care in making health care decisions.
Section 1.6 is effective Jan. 1, 2002. Sections 4.1-5(a) of
this act are effective July 1, 2002. Sections 7 and 8 are
effective Oct. 18, 2001. The remainder of this act is
effective March 1, 2002. This act applies to health benefit
plans that are in effect, delivered, issued for delivery, or
renewed on or after Oct. 18, 2001.
Sl 2001-426 (H. 1324) Amend Retirement Definitions. An
act to amend definitions applying to the teachers' and state
employees' retirement system and the local governmental
employees' retirement system in order to comply with recent
United States Department of Labor regulations requiring that
certain visa holders be offered retirement benefits and
eligibility for retirement benefits on the same basis as
United States citizens. Effective Aug. 1, 2001.
SL 2001-427 (H. 232) 2001 Budget Revenue Provisions. An
act to set the insurance regulatory charge, the public utility
regulatory fee, and the electric membership corporation
regulatory fee; increase the nonresident fee for searching
public archives; update the reference to the internal revenue
code; accelerate payment of withholding taxes; accelerate
payment of sales and utility taxes; authorize certain counties
to acquire property for public schools; provide general
assembly oversight of agency fees; exempt from fuel tax fuel
used by community colleges; make clarifying changes in the
subsidiary dividend provisions; authorize the commissioner of
labor to establish certain fees; make technical and clarifying
changes to the franchise tax; accelerate payment of local
sales and use tax revenue to local governments; and accelerate
payment of the revenue generated by the state excise tax on
conveyances to the state and exempt prisons located on land
owned by the state and built pursuant to a contract with the
state from property tax. Various effective dates.
SL 2001-428 (S. 433) Fairview Incorporated. An act to
incorporate the town of Fairview, subject to a referendum.
Effective Oct. 4, 2001.
SL 2001-429 (S. 35) Mecklenburg/Iredell Boundary Correction.
An act to make a technical correction in the boundary between
Iredell and Mecklenburg counties, and to allow the town of
Swansboro to require sidewalk improvements through the site
plan review process under the authority of the town zoning
ordinance. Effective Oct. 4, 2001.
SL 2001-430 (H. 571) Simplify Taxes On Telecommunications.
An act to simplify the collection of telecommunications taxes.
Effective Jan. 1, 2002.
SL 2001-431 (S. 181) Pass-Through Entity/Housing Tax Credit.
An act to allow a passthrough entity to allocate a housing tax
credit to any of its owners at the discretion of the
pass-through entity. Effective for taxable years beginning on
or after Jan. 1, 2001, and applies to buildings that are
placed in service on or after Jan. 1, 2001.
SL 2001-432 (H. 1269) Rental Cars—Advertising And Charges.
An act regarding airport fees and charge for rental cars.
Effective Oct. 6, 2001.
SL 2001-437 (H. 381) Mental Health System Reform. An
act to phase in implementation of mental health system reform
at the state and local level. Sections 1.1-1.21(b) of this act
are effective July 1, 2002. Section 2 is effective July 1,
2002, only if funds are appropriated by the 2001 General
Assembly, Regular Session 2002, for that purpose. The
remainder of this act is effective Oct. 15, 2001.
SL 2001-438 (S. 210) Satellite Annexation Agreements.
An act authorizing cities that have entered into annexation
agreements to annex certain noncontiguous areas without
complying with general annexation standards. Effective Oct.
15, 2001.
SL 2001-439 (S. 92) Various Local Occupancy Taxes. An
act to authorize various municipalities and counties to levy
room occupancy taxes. Effective Oct. 15, 2001.
SL 2001-440 (S. 312) Amend Environmental/Health Laws.
An act to: (1) amend certain laws relating to the
certification of well contractors and to increase the maximum
civil penalty that may be assessed for violations of the well
contractors certification act or the well construction act;
(2) clarify that the requirements of G.S. 106-660 apply only
to installations that handle, store, distribute, or apply
anhydrous ammonia for fertilizer use; (3) require that solid
waste that is to be incinerated in certain incinerators be
visually inspected in order to prevent the incineration of
waste that may not be lawfully incinerated; and (4) amend the
exemption of certain establishments that prepare or serve food
or drink from regulation as food and lodging facilities.
Effective Oct. 15, 2001. Section 1.3 expires Sept. 1, 2008.
SL 2001-441 (S. 438) Clarify Public Vehicular Area. An
act to allow private property to be designated as a public
vehicular area by the private property owner. Effective Dec.
1, 2001.
SL 2001-442 (H. 1063) Pay for Performance/Lust Cleanups.
An act to provide for performance-based cleanups of discharges
or releases of petroleum from underground storage tanks and to
authorize the state building commission to adopt rules to
authorize open-end design agreements for wetlands mitigation
and similar projects. Sections 1-5 are effective Oct. 1, 2001.
The remainder of this act is effective Oct. 15, 2001. Sections
1-5 and 7 expire Oct. 1, 2006.
SL 2001-443 (S. 890) Money Transmitters Act. An act to
revise the North Carolina Money Transmitters Act, Article 16
of Chapter 53 of the General Statutes. Effective Nov. 1, 2001.
SL 2001-444 (H. 327) Revise Treasurer Investment Authority.
An act to make technical and conforming changes to the State
Treasurer's investment authority and to give the State
Treasurer more investment flexibility with retirement systems'
assets. Effective Oct. 1, 2001.
SL 2001-445 (S. 703) Immunity/Honoring Portable DNR Order.
An act to clarify immunity for honoring a portable do not
resuscitate order. Effective Dec. 1, 2001.
Sl 2001-433 (H. 1154) Crime Victims’ Rights Act Amendments.
An act to amend the crime victims' rights act and to otherwise
improve the rights of victims of crime in North Carolina.
Effective Oct. 1, 2001.
Sl 2001-434 (H. 685) Occupancy Tax For Certain Counties.
An act to authorize Anson, Montgomery, and Stanly counties to
levy a room occupancy and tourism development tax, to change
the purposes for which Beech Mountain can use its occupancy
tax, to make administrative changes to the Beech Mountain
occupancy tax, to create an occupancy tax district in Beech
Mountain, and to authorize the Beech Mountain Tax District to
levy an occupancy tax. Parts V and VII are effective the first
day of the fourth month after Oct. 11, 2001. The remainder of
this act is effective Oct. 11, 2001.
Sl 2001-435 (H. 943) Discontinued Service Retirement
Allowance. An act to authorize discontinued service
retirement allowances under the local governmental employees'
retirement system. Effective oct. 12, 2001.
Sl 2001-436 (H. 359) Viatical Settlements Rewrite. An
act to revise North Carolina's law regulating viatical
settlements in accordance with a model act of the National
Association of Insurance Commissioners. Effective April 1,
2002.
SL
2001-451 (H. 13) Motor Vehicle Repairs.
An act to prohibit insurance companies from recommending that
insurance claimants obtain motor vehicle repair services from
particular sources without informing them of their options; to
amend the surplus lines law to conform it to the
Gramm-Leach-Bliley act; and to correct an error in an
amendment to the workers' compensation act. Section 1 of this
act is effective April 1, 2002. Sections 2 and 2.2 are
effective Jan. 1, 2002. The remainder of this act is effective
Oct. 28, 2001.
SL
2001-452 (H. 1006) Environmental Report Consolidation. An
act to consolidate various environmental reporting
requirements. Effective Oct. 28, 2001.
SL
2001-453 (H. 1048) Moratorium on Health Insurance Mandates.
An act to provide that health benefit plans shall not mandate
additional coverage beyond what is required as of June 30,
2003, with certain exception; and to authorize the Legislative
Research Commission to study the issue of health insurance
mandates. Effective Oct. 28, 2001. Section 1 expires July 1,
2005.
SL
2001-454 (H. 1299) Underground Storage Tank Program Funds.
An act to appropriate funds from the noncommercial leaking
petroleum underground storage tank cleanup fund to support the
administration of the petroleum underground storage tank
program. Effective July 1, 2001.
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