February 9, 2001

Senate to elect members of the UNC Board of Governors
This year it's the Senate's turn to fill some of the most sought-after appointments in all of state government -- seats on the UNC Board of Governors. The Senate will fill eight seats on the board, four at-large members, two minority members and two women. If you want one of these plum positions, you have to get a senator to place your name in nomination by Feb. 22. The Senate will hold the election on or before March 1. Here's the bill:

S. 103 ELECTING UNC BOARD OF GOVERNORS {Dalton (D-Rutherford), Carter (D-Buncombe), Lucas (D-Durham)}. Establishes the procedure for nominating and electing members of the UNC Board of Governors. Assigns to the Senate Committee on Education/Higher Education the duty to nominate members of UNC Board of Governors and sets forth nominating procedures. A candidate for nomination must be proposed as such by a member of the Senate. The proposals must be in writing and submitted to the Senate principal clerk by 5:00 p.m. on Thursday, Feb. 22. Provides that Senate will elect eight board members to serve four-year terms. Four of the members must be in the at-large category, two in the minority race category, and two in the woman category. Provides for screening and interviewing of nominees by the committee, to assure that the candidates are willing and able to serve. Directs the committee to present a slate of candidates with at least twice the number of candidates for the total number of seats open in each category, if the numbers of proposed candidates are sufficient to do so. Requires Senate to hold its election no later than the beginning of the daily session on March 1, 2001. Referred to Education.

Big changes in health-care proposed
Several companion bills were offered in the House and Senate that would impact how HMOs operate and what they must do in certain instances. One would stipulate that HMO patients have a right of continued coverage for 90 days after an HMO terminates its contract to provide care. Others address HMO provider directories, impose a new requirement that HMOs disclose payment obligations for covered services, and create a new HMO ombudsman in the state Department of Insurance. Those bills are summarized below:

H. 48 CONTINUITY OF CARE (=S. 65) {Nye (D-Bladen), Nesbitt (D-Buncombe), Cunningham (D-Mecklenburg), Edwards (D-Hyde), Insko (D-Orange)}. Requires HMOs to provide and give notice to insureds of their right to continued coverage during a transition period after a health care provider’s contract is terminated. Patients who (1) have ongoing special conditions, such as a life-threatening illness, (2) are pregnant; or (3) have a terminal illness would be entitled to continued treatment by their health care provider for the transition period. The transition period generally would last 90 days after notice that coverage is being discontinued, except that (1) for scheduled surgery, organ transplants, or institutional care, coverage would continue for 90 days after discharge; (2) for pregnancy beyond the first trimester, coverage would continue through postpartum care after delivery; and (3) for terminal illness, coverage would continue as long as the terminal illness is being treated. Certain conditions on reimbursement, quality assurance, referrals and provision of service are permitted to be imposed by the HMO. Effective for all health benefit plans delivered, issued or renewed on or after Jan. 1, 2002. Referred to Insurance.

S. 62 PROVIDER DIRECTORIES (=H 39) {Dannelly (D-Mecklenburg)}. Establishes standards for managed care provider directories. 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. Referred to Insurance.

S. 63 DISCLOSE PAYMENT OBLIGATIONS (=H 38) {Wellons (D-Johnston), Harris (D-Harnett), Dannelly (D-Mecklenburg)}. Require insurers to disclose payment obligations for covered services. Requires specific notice and explanation to the insured if an insurer calculates a benefit amount through a method other than a fixed dollar co-payment. Referred to Insurance.

S. 64 MANAGED CARE OMBUDSMAN (=H 36) {Wellons, Harris, Dannelly}. Establishes a managed care ombudsman program within the Department of Insurance to provide educational materials as well as dispute assistance to HMO customers. Appropriates $250,000 for 2001-02 and $500,000 for 2002-03 to fund the program. Referred to Insurance.

S 66. HEALTH BENEFIT PLAN DISCLOSURE (=H 37) {Wellons, Harris, Dannelly} Provides for health benefit plan disclosure to and summary plan information for prospective insureds. Referred to Insurance. 

More bills offered to change election laws, procedures
Last week we wrote about a spate of bills offered that are intended to help North Carolina avoid the mess that Florida got into during the presidential election (see last week's story on that). This week several more were filed, but these seem to address more narrow interests. They are summarized below:

S. 31 SINGLE-MEMBER DISTRICTS {Foxx (R-Watauga)}. Requires the establishment of single-member districts for all members of the General Assembly. Referred to Rules.

S 70. PRESIDENTIAL ELECTORS BY DISTRICT (=H 33) {Lee (D-Orange)}. Provide for the election of two presidential electors at large and one from each congressional district. Referred to Judiciary.

S. 96 FOUR-YEAR TERMS {Weinstein (D-Robeson)}. Amends the North Carolina Constitution to provide for four-year terms for members of the General Assembly with the first election to such a term in 2002, and (2) that the president pro tem of the Senate shall serve until the expiration of his or her term as senator or until a new lieutenant governor is qualified (currently president pro tem serves until the expiration of his or her term as senator). Provide (1) that elections for governor and lieutenant governor shall occur in 2000 and every four years thereafter and (2) that state executive officers shall be elected at the same time as the governor. Provide that clerks of Superior Court and district attorneys be elected at the same time as elections for General Assembly or governor (currently these officials are elected when the General Assembly is elected). Provides that the amendments shall be submitted to the voters in the next statewide general election and if approved, shall apply to the General Assembly members elected in the 2002 general election. Referred to Judiciary.

S. 104 SESSION LENGTH LIMITS {Hoyle (D-Gaston)}. Requires a referendum in November 2002 on amendments to Article II of the North Carolina Constitution that limit long sessions of the General Assembly to 135 calendar days plus one 10-day extension and short sessions to 60 calendar days plus one 10-day extension. Sets starting date of term of office for members of the General Assembly on the first Wednesday in December following their election (currently, Jan. 1). Referred to Judiciary I.  

H. 83 FOUR-YEAR GENERAL ASSEMBLY TERMS (=S 96) {Sutton (D-Robeson)}. Amends the North Carolina Constitution to provide for four-year terms for members of the General Assembly. Referred to Rules.

H. 57 LABELING CAMPAIGN ADS {Baker}. Provides reasonable and practical requirements for the labeling of campaign ads, provides that if the type in a print media ad is at least 28 points in size, the total height of the disclosure statement is not required to constitute five percent of the height of the printed space, except on a billboard; and (2) require that the disclosure statement in a radio ad be spoken at a normal speed. Referred to Election Law.


Education bills filed addressing specific goals
Bills aimed at helping students with disabilities, students who've been suspended from school and low-wealth school districts were filed. They are summarized below:

S 71. SUSPENDED STUDENTS TO ALTERNATIVE PROGRAMS {Carter (D-Buncombe)}. Establishes a pilot program under which participating local school administrative units place all students who are on short-term out-of-school suspension in alternative learning programs. Directs State Board of Education and Department of Juvenile Justice to establish pilot programs with no more than five local schools. Requires Department of Public Instruction and Department of Juvenile Justice to report to Joint Legislative Education Oversight Commission by April 15, 2003. Referred to Education.

S. 98 STUDENTS WITH DISABILITIES {Dannelly (D-Mecklenburg), Lucas (D-Durham), Moore (R-Caldwell), Wellons (D-Johnston)}. Implements the recommendations of the Study Commission on Children with Special Needs. Establishes the Commission on students with Disabilities, with seven members appointed by the speaker of the House; seven by the president pro tem. and four by the governor. Directs the commission to study specified issues, including (1) numbers of children receiving or needing services and the cost of educating students in state residential institutions compared to community-based programs; (2) effect of testing students with disabilities for accountability purposes versus the federal mandate for including these students in testing; (3) effect of possible tension between the state’s preference for safe schools and the federal preference for keeping students with disabilities in school if their discipline problems are related to their disabilities; (4) the rate and timing, in relation to testing, of expulsion or suspension of students with disabilities; (5) the cost of Increasing the 12.5% funding cap to 13% or 13.5%; (6) whether special education services are being distributed equitably statewide; (7) whether the State Board of Education has a neutral, clear appeal process for the exit exam and how that process is working for students with disabilities; (8) whether the board has made the alternative assessment portfolio available to all students who need it; (9) problems with training, recruiting, and retaining special education teachers; and (10) state law regarding time limits in resolving disputes about education placement of students with disabilities. Authorizes the commission to report to the 2001 session of the General Assembly when it convenes. Requires It to make its final report to the 2002 General Assembly upon its convening. Referred to Children & Human Resources. 

H. 54 LOW-WEALTH SCHOOL SUPPLEMENTAL FUNDING {Yongue (D-Hoke}. Appropriates $43 million for 2001-2002 and $43 million for 2002-2003 from General Fund to state aid to local school administrative units as title indicates. Effective July 1, 2001. Referred to Appropriations.


Tax and economic development bills filed
Should the state encourage more businesses to do business with the Department of Defense? Should the state Commerce Department have a "competitiveness" council? Those and several other bills were filed impacting taxation and economic development. They are summarized below:

S. 85 EXPAND NC BUSINESS OPPORTUNITIES (=H 66) {Harris (D-Harnett), Ballantine (R-New Hanover), Rand (D-Cumberland)}. Directs the Department of Commerce to encourage North Carolina businesses to seek federal contracts with the Department of Defense and to corroborate with other government and nonprofit entities to develop a plan to effectively promote and market the Department of Defense as an industry in this state. Requires the secretary of Commerce to convene a work group, which must meet at least quarterly, with goals of (1) increasing the amount paid to NC businesses from federal contracts and (2) utilizing the skilled workforce of military service members who transition from active duty in NC. Authorizes Department of Commerce to contract for consultant services the work group determines to be necessary and requires the department to report on the work group’s progress to the Natural and Economic Resources-Governmental Operations Subcommittee by April 2002 and by January 2003. Referred to Commerce.  

S. 87 LOCAL SALES TAX/HARNETT AND CUMBERLAND (=H 67) {Harris, Rand}. Authorizes Harnett and Cumberland counties to levy one-cent local sales and use tax for public school buildings and public school current expenses and for water and sewer capital outlay projects. Gives option to county commissioners to hold referendum or adopt tax by resolution after public hearing, as title indicates. Referred to Finance.

S. 90 LOCAL OPTION HOMESTEAD RELIEF (=H 50) {Hoyle (D-Gaston)}. Amends the North Carolina constitution, if approved by the voters in the 2002 general election, to authorize the Feneral Assembly to enact legislation allowing each county to (i) increase the amount of the property tax homestead exemption for low-income elderly and disabled individuals in that county and (ii) raise the definition of “low income” so that more elderly and disabled individuals can qualify for the exemption. Referred to Finance.

S. 92 GASTONIA OCCUPANCY TAX {Hoyle}. Authorizes the Gastonia City Council to levy a room occupancy and tourism development tax of up to three percent. Requires the council, if it levies the tax, to create a city tourism development authority to expend the tax proceeds to promote travel and tourism in Gastonia and for tourism-related expenditures. Referred to Finance.

H. 44 MODIFY INTANGIBLES REIMBURSEMENT {Cansler (R-Buncombe)}. Modifies the annual reimbursement to local governments for repeal of the state tax on intangible personal property. Sets new amount distributed annually statewide at lesser of $129 million or 1.8% of net individual income tax collections for previous fiscal year. Allocates this amount as follows: (1) for first $129 million, funds allocated to each county in same proportions as received in August 2000; (2) for amounts over $129 million, if any, 30% allocated pro rata to each county and remaining 70% of excess allocated in proportion to estimated amount of individual income tax paid by county in most recent 12-month period. Effective July 1, 2001. Referred to Finance. 

H. 56 NC COMPETITION INITIATIVE {Baker (R-Forsyth)}. Establishes the North Carolina Government Competition Commission in the Department of Commerce, but acting independently of the secretary, and charges it to cause the use of competition to improve delivery of state services and increase efficiency. Commission consists of nine members, three each appointed by governor, speaker of the House and president pro tem of the Senate, with two-thirds of members from the private sector. Authorizes governor, General Assembly, or commission to require any state agency to perform a “public-private competition analysis” if commission has received a proposal from a private entity for competition. Requires annual reports by Office of State Budget, Planning and Management and the commission to the governor and the General Assembly. Referred to Rules. 

Crime and punishment
Should it be a crime to talk on a cell phone while driving? Should children be required by law to wear safety helmets while riding bicycles? Should the police be allowed to collect DNA samples from people they arrest? Those and other bills affecting criminal law and procedures were filed last week. They are summarized below:

S. 93 EN BANC PROCEDURE {Rand}. Provides for the North Carolina Court of Appeals to conduct en banc proceedings upon a vote of a majority of the judges on the Court of Appeals. Requests the Supreme Court to adopt rules of procedure for en banc proceedings in the Court of Appeals. Referred to Judiciary.
 
S. 95 DNA SAMPLES ON ARREST {Rand}. Requires that a DNA sample be taken from any person arrested for certain felonies and stored in the state DNA database, establishes pilot programs to implement this procedure, and provides that a defendant may file a motion for appropriate relief at any time after a verdict if DNA evidence is available regarding the crime for which the defendant was convicted but the DNA evidence was not admitted into evidence at the trial. Applies to the following offenses: (1) Class A through E felonies other than offenses under drug and medicine-related; (2) assaults resulting in serious injury or death; (3) sexual offenses; and (4) felonies against juveniles, the elderly or the disabled. Requires SBI to respond to requests by persons incarcerated for such offenses about the availability of DNA samples. Appropriates $250,000 for fiscal year 2001-2002 and $250,000 for 2002-2003 from General Fund to Administrative Office of the Courts to implement pilot program in three counties. Referred to Judiciary.

S. 109 REQUIRE EXPERIENCE FOR DEATH PENALTY CASES {Shaw (D-Guilford)}. Requests the North Carolina Supreme Court to adopt rules establishing minimum standards for defense attorneys, prosecutors, and judges handling capital cases. Asks the high court to adopt rules requiring specialized training and specifying minimum number of years of experience required of any defense attorney, prosecutor, or judge participating in the trial of a capital case. Referred to Judiciary II.  

H. 45 GAS DRIVE AWAYS/LICENSE SUSPENSION {Decker (R-Guilford)}. Provides that persons convicted of offenses involving driving away without paying for gasoline or motor fuel shall have their drivers license suspended. In addition to the fine and imprisonment otherwise authorized, the court (1) for a first offense, may order suspension of the person’s drivers license for up to six months; (2) for a second offense, must order suspension of the person’s drivers license for six months; and (3) for a third or subsequent offense, must order suspension of the person’s drivers license for one year. Effective Dec. 1 and applies to offenses committed on or after that date. Referred to Rules. 

H. 62 USE OF CELLULAR TELEPHONES {McAllister (D-Cumberland)}. Prohibits certain uses of cellular telephones by an operator of a motor vehicle by making it an infraction for a person to drive while using a handheld cellular telephone, except (1) the operator has a one-minute grace period on the receipt and transmission of calls; (2) the restriction does not apply to calls to a 911 emergency number; And (3) the section does not restrict the use of a radio-line telephone by any public safety, emergency service, or Law enforcement agency. Effective Dec. 1, 2001. Referred to Rules.

H. 74 NO CELL PHONE USE WHILE DRIVING {Bowie (R-Guilford)}. Like H. 62, this bill would generally prohibit the use of handheld telephones by drivers operating motor vehicles on the streets or highways and allow exceptions for public safety personnel and individuals in emergency circumstances. Differs from H. 62 in the following ways: (1) does not provide a one-minute grace period for receipt and transmission of calls; (2) provides exception for taxi drivers on duty; (3) sets fines for first and subsequent violations; and (4) prohibits the assessment of driver’s license points or insurance surcharges for violations. Effective Dec. 1. Referred to Rules.  

H. 63 CHILD BICYCLE SAFETY ACT {McAllister}. Requires (1) all bicycle riders under age 16 to wear helmets while on public rights-of-way; (2) all bicycle passengers under 40 pounds or 40 inches in height to be seated in separate restraining seats; and (3) persons who cannot maintain an erect, seated position to not be passengers in bicycle restraining seats, and all other bicycle passengers to be seated on saddle seats. Provides civil penalties as infractions and authorizes civil fines Up to $10 for violations. Effective Oct. 1. Referred to Rules. 

Other bills of interest

H. 69 REPEAL HIGHWAY USE TAX TRANSFER—3 YEARS {Bowie (R-Guilford)}. Repeals, with a three-year phaseout, the annual transfer of $170 million in highway use tax collections from the Highway Trust Fund to the General Fund for three years and to provide that those funds shall be used by the Department of Transportation for highway maintenance. Effective July 1. Referred to Transportation.

S. 32 BEACH NOURISHMENT/CLEAN WATER FUNDS {Ballantine (R-New Hanover)}. Includes beach nourishment and beach management practices as purposes for which grants may be made from the Clean Water Management Trust Fund. Referred to Agriculture.

H. 55 RONALD REAGAN DAY {Daughtry (R-Johnston)}. Recognizes Feb. 6, the former president’s birthday, as "Ronald Reagan Day" in North Carolina. Referred to Rules.

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