A lottery bill is the first measure filed in the House;
the Senate's first measures deal with election reform
Observers
usually pay attention to the first few bills filed during a
new legislative session on the theory that it indicates the
order of priorities for the chamber. If that's true, then the
House wants to give voters the opportunity of voting on a
state lottery and the Senate is preoccupied with reforming
state election laws.
The first bill filed in the House last week was H. 1
Lottery for Education/Infrastructure, introduced by Rep.
Bill Owens (D-Pasquotank). If calls for a referendum in two
years on creating a lottery whose proceeds would be
distributed as follows: half would be given away as prizes, 16
percent reserved for operating expenses, and 34 percent
reserved for state revenues. The portion going into the
General Fund would be distributed as follows: 25 percent for
higher education scholarships, 25 percent for school
technology, 25 percent going to counties for water and sewer
improvements, and 25 percent for pre-kindergarten programs for
at-risk children. The measure was referred to the Rules
Committee.
Gov. Mike Easley favors a state lottery but he has said he
wants the entire proceeds over expenses to be dedicated to
education, mostly for reducing class sizes in the lower
grades.
As is customary, the first bill filed in the Senate
establishes procedures and rules the chamber will adhere to
this session. Those rules and deadlines are important because
the process of drafting a new biennial state budget, a chore
that rotates between the chambers, starts in the Senate this
time. A rules bill usually is the first bill the House and
Senate take up each session. The uncertainty over the House
leadership apparently caused the House to be later than usual
in getting its rules bill on the floor. S. 1 2001 SENATE RULES, introduced by
Rules Committee Chairman Tony Rand (D-Cumberland), was adopted
by voice vote. It sets these deadlines:
 Local bills must be filed for introduction
by March 14;
Public bills and resolutions must be filed for
introduction by March 28;
The crossover deadline
for bills from the House will be April 26.
Several related election law reform bills also were filed in
the first days of the new session by Sen. Wib Gulley, the
Durham Democrat who has been concerned with election laws for
many years. Gulley was the Senate co-chair of the Elections
Laws Revision Study Commission created by the General Assembly
at the end of the last legislative session. One of Sen.
Gulley's bill would make it much easier for third-party
candidates to get their names on the ballot. "You have to
be careful that not just anybody can get on the ballot,"
Easley told us, "but in North Carolina we’ve gone too
far in the over direction. Our current requirements are the
second-most onerous in the nation. If we adopt these changes
we still will have one of the top five toughest ballot access
laws." Gulley's bills
also would include national political
parties in the limits on campaign contributions and establish clear rules
governing the counting and recounting of ballots in contested
elections. Those measures would establish rules on discerning the intent of the
voter, a measure recommended by the study commission to help
North Carolina avoid the problems encountered by Florida
during the presidential election.
Those and other bills of interest to NCCBI members are
summaried below.
House Bills
H. 1 LOTTERY FOR EDUCATION/INFRASTRUCTURE
{Owens (D-Pasquotank)}. Provides for a referendum on a state
lottery at the next statewide election. If the lottery
referendum passes, the bill (1) creates the State Lottery
Commission, consisting of nine members, five appointed by the
Governor, two by the Senate President Pro Tem and two by the
Speaker of the House, with staggered five-year terms; (2)
grants rulemaking and oversight authority for the lottery to
the commission and sets qualifications, compensation, and
decision making procedures of the commission; (3) provides for a
full-time lottery director, to serve at the pleasure of the
Governor, along with staff and basic agency procedures and
responsibilities; (4) directs that lottery games shall begin
within 180 days of approval of the referendum; (5) permits any
type of lottery games and gaming technology that has been used
by any other state, with limited restrictions; and (6) directs
lottery revenues to be as follows: at least 50 percent of total
annual revenue returned as prizes, at least 34 percent reserved for
state revenue, and no more than 16 percent for lottery expenses. Of
the monies reserved for state revenue and remaining after
prizes and expenses, 25 percent is directed to higher education
scholarships, 25 percent for public education technology, 25
percent to
counties for water and sewer infrastructure, and 25 percent for
pre-kindergarten programs for at-risk children. The bill makes
further provisions for lottery procedures and vendor contracts
and preempts local regulation of lottery games. Referred to
Rules
H 2. RECIPROCAL PREFERENCE FOR BIDS
{Owens}. Amends GS 143-59 to require that a percent increase
be added to bids from nonresident bidders; percent added must
equal the percent of preference given in each bidder’s home
state. Applies to contracts for equipment, materials,
supplies, and services valued over $25,000 entered into by all
state departments, institutions, agencies, community colleges,
local school administrative units, and the Office of
Information Technology, except contracts entered into under GS
143-53(5)(contracts not using competitive bidding) or GS
143-57(emergencies). Authorizes Sec’y of Administration to
waive preference if nonresident bidder would otherwise be
lowest bidder. Authorizes Sec’y to adopt temporary rules to
implement act. Appropriates $250,000 from General Fund to
Dep’t of Administration for fiscal year 2001-02 for
reciprocal preference program. Appropriation is effective July
1, 2001. Remainder of act is effective Jan. 1, 2002. Referred
to Rules
H. 3
RECIPROCITY IN BIDDING PROCESS {Owens}. Amends GS 143-59
(preference given to NC products and citizens, and to articles
made by state agencies) to require that state agencies and
local school administrative units apply a reciprocal
preference to bids from bidders who do not reside in North
Carolina. Applying a reciprocal preference means adding a
percentage increase to the bid equal to the percentage
increase, if any, that the state in which the bidder resides
adds to bids from nonresident bidders. Requires that Secretary
of Administration maintain a list of states with preferences
and the percentage they add to out-of-state bids. Permits
Secretary and Board of Award to waive reciprocal preference
requirement if it would affect the award of the contract and
it is in the public interest to do so. Defines resident bidder
of North Carolina as a bidder with a NC business address who
has paid unemployment taxes or income taxes in NC during the
12 calendar months preceding bid submission. Exempts from this
requirement emergency purchases under GS 143-57 and purchases
authorized by GS 143-53(a)(5) that do not require competitive
bidding. Authorizes Sec’y of Administration to adopt rules
for implementation. Effective Sept. 1, 2001. Referred to
Rules
H. 7 AMEND WORTHLESS CHECK PROGRAM {Hill (D-Columbus)}. An
act to provide that a program established by a district
attorney for the collection of worthless check cases in
certain counties may include worthless check offenses
punishable as Class I felonies as well as those punishable as
Class II misdemeanors.
H. 8 REPEAL GIFT TAX
{Gray (R-Forsyth)}. As title indicates. Also repeals
prescribed organization of Department of Revenue in GS
143B-221. Effective Jan. 1, 2002. Referred to Finance.
H. 12 CONDEMNATION REIMBURSEMENT {Justus (R-Henderson)}
Requires that when the state takes property by eminent domain
for purposes other than transportation, local governments
shall be reimbursed for lost ad valorem revenues. Indexes
payments to the consumer price index in succeeding years in
which the property is exempt from taxes. Effective with
respect to condemnations in which title passes to the state on
or after July 1, 2001. Referred to Rules.
H. 13 MOTOR VEHICLE REPAIRS {Sherrill (R-Buncombe)}
Prohibits insurance companies from encouraging insurance
claimants to obtain car repairs from particular sources. Adds
new GS 58-3-180 prohibiting any insurer from (1) recommending
or encouraging a claimant to use a particular motor vehicle
repair service for estimates or repairs, and (2) informing a
claimant that the insurer will guarantee repairs performed by
particular repair services but not by others. Effective Oct.
1, 2001. Referred to Rules.
H.
25 REMOVE CAP ON CHARTER SCHOOLS
{Blust (R-Guilford)}.
Removes the current cap of 100 charter schools in
the state.
Identical to S.
23,
H.
26 {Shubert (R-Union)} and
H.
29 {Daughtry (R-Johnston)}.
Referred
to Rules.
H.
30 HMO PATIENT PROTECTION
{Nye (D-Bladen)}
Provides that a managed care entity is liable for
damages caused by uits failure to exercise ordinary care and
to provide standards for the establishment and maintenance of
external review procedures in health insurance and managed
care.
Identical to S 21. Referred.
to Rules.
H.
31 PRESIDENTIAL ELECTOR CHALLENGE
{Goodwin (D-Richmond)} Provides for selectionof presidential
electors by the General Assembly if election results have not
been certified by the date provided by federal law.
Referred
to Election Law.
H.
32 FAITHLESS
ELECTOR PENALTY INCREASED
{Goodwin} Doubles the penalty, from $500 to
$1,000, for presidential electors who refuse or fail to vote
for the candidates of the party which nominated that elector.
Referred
to Election Law.
H
33. PRESIDENTIAL ELECTORS BY DISTRICT
{Goodwin}
Requires electors at large to vote for the presidential ticket
receiving the largest number of votes statewide, while
requiring district electors to vote for the presidential
ticket receiving the largest number of votes in that
congressional district. Referred
to Election Law.
H.
34 BAN BUTTERFLY AND PUNCH-CARD BALLOTS
{Goodwin}
Amends GS 163-140(a) to prohibit the use of ballots that
require the voter “to punch out a hole with a stylus or
other tool.” Amends GS 163-140(b) to provide that ballots
for president and vice-president “shall not have two
parallel
sets of columns with some of the parties in one column and the
other parties in a second column.” Punch-card provision
becomes effective for elections conducted on or after July 1,
2002; remainder effective when it becomes law. Referred
to Election Law.
H.
39 PROVIDER DIRECTORIES {Nye} Enacts
new GS 58-3-245 to require health insurers that use a network
of health care providers to provide a directory to all
insureds with specified, updated information. Directory must
include (1) name, contact information, and specialty for each
provider and facility; (2) whether the provider may be
selected as a primary care provider; (3) whether the provider
is currently accepting new patients and whether access to the
provider is otherwise restricted; (4) date of publication; and
(5) instructions for getting updates on directory information.
Applies to all health benefit plans delivered, issued, or
renewed on or after July 1, 2002. Referred
to Insurance.
Senate
Bills
S. 1 2001 SENATE RULES {Rand
(D-Cumberland)}.
Substantially similar to the rules of the 1999 Session, with
the following differences. Deletes former Rule 9 (permitted
the Presiding Officer, while in the Senate Chamber, to call on
any member of the Senate to perform the duties of the Chair).
Changes standing/select committee list in Rule 32 as follows:
(1) adds new Appropriations on Information Technology
subcommittee and Redistricting committee; (2) changes name of
“Insurance” committee to “Insurance and Consumer
Protection” and changes “Appropriations on Human
Services” to “Appropriations on Health and Human
Services”; and (3) deletes select committee on Tobacco
Settlement Issues. Modifications of Rules 40.1 and 41 provide
the following deadlines for introduction and crossover: (1)
local bills must be filed for introduction not later than
March 14 (bills filed by 4 p.m. on that date with Bill
Drafting must be filed for introduction before 3 p.m. on March
21); (2) public bills and resolutions must be filed for
introduction not later than March 28 (bills filed by 4 p.m. on
that date with Bill Drafting must be filed for introduction
before 3 p.m. on April 4); and (3) to be considered in 2001 or
2002, bills must crossover from the House no later than April
26. Modifies Rule 53 (effect of defeated measure) to
provide that if a substitute amendment is adopted on the
floor, the contents of the previously pending amendment not
contained in the substitute shall be considered to have been
defeated. Provides that Rule 29, subsection (h) (Senators who
wish to change their vote must make a motion on the same day
of the vote) may not be suspended. Modifies subsection (i) of
Rule 17 (general decorum) to prohibit Senators from operating
wireless phones, pagers, or laptop computers on the floor
during session, and to prohibit any other person from
operating wireless communication devices that may be
disruptive on the floor or in the gallery during session (rule
formerly applied only to wireless phones). Makes
gender-neutral language changes throughout, as well as other
technical and conforming changes. Adopted
S. 2 GUBERNATORIAL TEAM TICKET {Rand}. Provides for a
referendum at the general election in November 2002 on
constitutional amendment requiring candidates for Governor and
Lt. Governor to run as a team. Passage of the referendum would
also (1) amend the constitution to permit the Governor to
retain gubernatorial powers while absent from the State, and
(2) trigger conforming statutory changes providing for
nomination of candidates for Governor and Lt. Governor as a
team, beginning with the 2004 election. Held as Filed
S. 8 SOFT MONEY CONTROL {Gulley (D-Durham)}. Amends GS
163-278.13(e) to delete the exemption of national political
parties from the limits on campaign contributions. Held as
filed
S. 9 INTERSTATE HIGH-SPEED RAIL COMMISSION
{Gulley} Upon concurrence of the Virginia General Assembly,
creates the Virginia-North Carolina Interstate High-Speed Rail
Commission, consisting of 3 representatives appointed by the
Speaker of the House and 3 senators appointed by the President
Pro Tem. of the Senate. Commission is to determine the
desirability and feasibility of establishing high-speed
passenger service between North Carolina and Virginia and make
recommendations to the Governor and 2003 General Assembly. Held
as filed.
S. 10 BALLOT ACCESS CHANGES {Gulley}
Rewrites GS 163-96 to require that any petition for
formulation of a new political party be filed before the last
Friday in July (instead of first day in June) preceding the
general state election in which the party wants to participate
and to change the required contents of the heading of the
petition, so that it names location of the state headquarters
but not the state chairperson, and specifies span of years
during which the party wants its candidates to be listed on
the ballot. Rewrites GS 163-97 to provide that a party’s
failure to poll at least 10 percent of the vote results in its
ceasing to be included on the ballot (losing ballot status),
not in its ceasing to be a political party. Rewrites GS
163-97.1 to require county board of elections, within 90 days
after a party loses its ballot status, to notify each voter
affiliated with that party of the legal consequences of
continued affiliation with the party, including potential
inability to vote in any party primary. Rewrites GS 163-98 to
allow a new political party, in the first general election
after it qualifies, to have its candidates for any offices
(not just state, Congressional, and national) listed on
ballots. Rewrites GS 163-122 to provide that petitions
supporting a person’s candidacy as an unaffiliated candidate
be signed by a specified percent of voters who voted in the
most recent election for that office (instead of registered
voters) and, in the case of presidential candidates or
candidates for any office elected statewide, reduces the
percent from 2 to 1.5 and adds requirement that the petition
be signed by at least 200 registered voters from each of four
congressional districts in the state. In GS 163-209, changes
the deadlines for the filing of names of presidential electors
and candidates with the Secretary of State. Rewrites GS
163-123, regarding write-in candidates, to make the procedures
regarding candidates for statewide office also apply to
candidates for president, vice president, and presidential
elector. Effective with respect to elections held on and after
Jan. 1, 2002. Held as filed.
S. 14 ELECTION REWRITE/COUNTING AND CANVASSING {Gulley
(D-Durham)}. Rewrites Articles 15 and 15 of Chapter 163, as
recommended by the Election Laws Revision Commission. Article
15 concerns counting ballots, canvassing votes, and certifying
results in precincts and counties. Article16 addresses canvass
of returns for higher offices and preparation of state
abstracts. Bill reorganizes these topics into single article
on counting official ballots, canvassing votes, hearing
protests, and certifying results. New GS 163-182 defines
terms, including abstract, certificate of election, and
protest. New GS 163-182.1 lays out principles and rules for
counting ballots, including rules on write-in votes,
discerning voter’s choice, and interpreting straight-party
and split-ticket voting (similar to present GS 163-170). For
example, official ballots rejected by a counting machine are
to be counted by hand and eye. Also authorizes State Board of
Elections to promulgate rules for applying these principles in
each type of voting system, and requires that Board direct the
county boards of elections in the application of the statute
and rules. The new article contains statutes addressing the
following topics: initial counting of official ballots,
jurisdiction of state and local election officials, canvassing
of votes, creation of abstracts summarizing the vote, ordering
recounts, determining result in case of a tie, filing an
election protest, the county board’s consideration of
protests, appeals of county board decision’s about protest
to the State Board of Election, the ordering of new elections
(replaces present GS 163-22.1, now in a different Article),
appeal of State Board decisions to superior court, and
certification of election results. New statutes addressing the
handling of election protests generally provide rules for
notice and hearing, as well as standards to be followed and
permissible actions by the reviewing body. The new statute on
ordering recounts provides for discretionary and mandatory
recounts, and lists requirements for demanding a recount. New
GS 163- 182.8 (determining results in case of tie) provides
for a new election involving only the tied parties in races
where more than 5,000 voters cast official ballots, and calls
for random selection of a winner in races involving 5,000 or
fewer voters (present GS 163-191 provides only for new
election). New GS 163-182.17 summarizes duties of various
officials under the new Article, including precinct officials,
county boards of elections, State Board of Elections, and the
Governor. Absent from the new article are present statutes on
proceedings when polls close (GS 163-168) and preservation of
ballots and sealing ballot boxes (GS 163-171). Effective Jan.
1, 2002. Referred to Judiciary I.
S. 16 MUNICIPAL ELECTION BOARDS {Gulley}. As title
indicates, abolishes municipal elections boards and requires
that all elections be conducted by county boards of elections.
Rewrites GS 163-285 to make counties responsible for
registration of all voters and for conducting all elections,
including those for municipalities and special districts.
Makes numerous conforming and technical changes. Provides that
the act prevails over local acts. Effective Jan. 1, 2002, and
applies to all primaries and elections held on and after that
date. Referred to Judiciary I.
S. 17 ELECTION REWRITE/BALLOTS AND VOTING {Gulley}.
Rewrites Articles 13 and 14 of Chapter 163 of the General
Statutes, as recommended by the Election Laws Revision
Commission. Rewrites and combines into one article the general
instructions and voting systems provisions of state election
law. Creates more flexible and generally simpler statutory
provisions on (1) ballot types, (2) sample ballots, (3) ballot
standards, content, format, preparation, and certification;
(4) purchase and use of voting systems by counties; and (5)
procedures at voting places, including assistance to voters
and the actual voting process. Referred to Judiciary I.
S.
24 WEST NORMAN INCORPORATION
{Odom (D-Mecklenburg)} Requires referendum not less than 60
nor more than 120 days after act becomes law on incorporation
of the Town of West Norman in Lincoln County. If the
referendum passes, requires the town to adopt council-manager
form of government and sets transition rules for council
elections, fire protection and tax collection. Referred to
State and Local Government.
S. 26 SALES TAX HOLIDAY {Kerr (D-Wayne) and Hoyle
(D-Gaston)} Adds new GS 105-164.13C to provide that the sales
and use taxes do not apply to specified items sold on the
first Friday of August and the following Saturday and Sunday.
Covered items include clothing, clothing accessories,
footwear, school supplies, computers (defined as a unit for
personal use, peripherals sold with it, and software installed
at time of purchase), printers and printer supplies, and
educational computer software. The exemption does not apply to
rentals or to the sale of jewelry, cosmetics, eyewear,
wallets, watches, furniture, any item for use in a trade or
business, or to sales involving a layaway contract or similar
deferred payment and delivery plan. Referred to Finance.
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