June 2, 2000 * Issue No. 4 * The 2000 Short Session
This is the text-only version of the Bulletin, with no pictures or graphics

Member Alert: Your Response Requested

On Two Critical Issues, NCCBI -- And You -- Must Speak Up

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CCBI's influence in state politics -- meaning, the collective influence the association exerts for its 2,000 members -- was acknowledged twice this week in Raleigh's politically savvy newspaper, the News & Observer. It's nice to get your name in the paper, but now NCCBI and its members must show we deserve the credit so we can go on to win on two important issues we're advocating -- passage this fall of the $3.1 billion bond issue for higher education facilities and a constitutional referendum on legislative session limits. The bottom line is, it is critical that you get involved in supporting both these issues.

On the opinion page of Sunday's N&O, Associate Editor Steve Ford said:

“Who's to complain that Phil Kirk, who wears two 10-gallon hats as president of North Carolina Citizens for Business and Industry and also as chairman of the State Board of Education, will head up the campaign to win approval of the big university/community college bond issue this fall? Don't look at me. The bonds need to pass, and Kirk has the savvy and clout to make sure they do.

“With all that horsepower behind it,” Ford adds, “this drive to pass the largest bond issue in Tar Heel history has the makings of a blowout success.” That's an admittedly optimistic view, he continues, but “victory on the bonds would be consistent with what seems to be a general pattern: What the business boys want, the business boys tend to get.”

Later in the column he grudgingly admits that what the business boys want is also what the N&O has solidly supported over the years. Better public schools. A nationally recognized system of higher education. A booming economy that lifts all boats. Efficient, effective state government. Better teacher pay. Smart Start. The list goes on.

Then in Friday's Under the Dome column, Raleigh's most reliable source of hot political news, the House and Senate leaders said it's up to NCCBI whether the legislature passes session limits. "I'm ready to run the session limits bill," House Speaker Jim Black said in the column. "That doesn't mean I'm going to try to round up the votes to pass it. We'll run it when N.C. Citizens for Business and Industry say they have the votes." Black first issued this challenge -- departing from his prepared text to do so -- when he spoke at NCCBI's Legislative Conference three weeks ago.

Dome said Black knew an informal head count by NCCBI showed that 49 of 80 House members surveyed would vote for session limits. "We're very pleased with the positives," Kirk said. "We haven't gotten very many hard no's, but a lot of undecideds.”

"I need to know if this is something we're going to try to do," Black told Dome. He said there might be -- and he emphasized "might" -- the required 72 votes in the House to place on the ballot a constitutional amendment limiting the length of sessions.

Do we have the votes? We will if enough NCCBI members contact their legislators and urge them to support session limits. Pick up the phone. Send a fax. Send an e-mail. Button-hole them at the grocery story. Tell them North Carolina's doesn't want professional politicians running a General Assembly whose sessions run on for months and months. We want to keep our 200-year history of a citizen's assembly where people who have real jobs can still serve in the legislature.

North Carolina is one of a very few states that doesn't have any limit on the length of state legislative sessions. Texas' legislature meets every two years. Virginia's meets for 60 days one year, 90 days the next. In 1998 the North Carolina legislature convened in May and stayed in Raleigh until Halloween.

Last year, the Senate passed a bill that would limit the legislature to meeting no more than 135 days in even-numbered years and to 60 days in odd-numbered years. That bill is now awaiting action in the House while House Speaker Black waits to hear from you.

Keeping our citizens' legislature. Passing the university and community college bonds. These are important issues. You need to get involved to make them happen. Together, NCCBI and its members have helped shape a better North Carolina. Let's not rest on our laurels, though. These are today's challenges. We hope you respond today.


Utilities Commission Approves Natural Gas Expansion
The State Utilities Commission on Wednesday approved a request by CP&L and the Albemarle-Pamlico Economic Development Corp. -- a consortium of 14 Northeastern North Carolina counties -- to use $38 million in state bond money to begin offering natural gas service in that part of the state. The commission granted a certificate of public convenience and necessity to Eastern North Carolina Natural Gas Co. LLC, the venture created by CP&L and the counties. The commission authorized a 12.1 percent profit margin for the entity.

The money comes from proceeds of a $200 million bond referendum approved by voters in 1998 to provide grants and other inducements to providers so they will find it more economically feasible to offer gas service in unserved areas of the state.

However, the Utilities Commission cut the request for bond money from $44.2 million to $38.8 million on grounds that $4.5 million of the request was to be used for economic development activities not directly related to laying gas distribution lines. CP&L said the $38.8 million that was approved isn't enough and the company may have to re-evaluate its plans. The money approved represents the negative net present value of the first phase of the proposed project.

The proposed 231-mile gas system would be connected to Transcontinental Gas Pipeline Corp.'s system in Hertford County and run eastward through Gates, Chowan, Perquimans, Pasquotank, Camden and Currituck counties in the northeastern corner of the state.

CP&L, which entered the gas business last year when it bought N.C. Natural Gas Corp., would construct and operate the new gas system on behalf of Eastern. The Raleigh-based utility also would be in charge of customer service.

Thirty-four North Carolina counties do not have any piped natural gas service.

Line-up Now Set for Fall Elections
Rep. Cherie Berry (R-Catawba) defeated China Grove Alderman John Miller in the May 30 GOP primary run-off for state Labor Commissioner, while Guilford County tobacco farmer Steve Troxler defeated Durham agribusiness consultant Tom Davidson in the run-off for state Agriculture Commission.

Turnout of Republican voters in the second primary was barely 5 percent statewide. Not a single voter went to the polls in Currituck, Macon and Montgomery counties, and 100 or fewer GOP voters bothered to vote in several other counties.

Berry, who beat Miller 57% to 43%, will face Democrat Doug Berger in the fall general election for the right to succeed Labor Commissioner Harry Payne, who did not seek re-election to a third term. Troxler, who garnered 60 % of the vote, will face Meg Scott Phipps for the right to succeed retiring Agriculture Commissioner Jim Graham.

Meanwhile, former Davidson County Commissioner Stan Bingham won the GOP nomination in the 38th Senate District. He defeated Larry Potts, the current Davidson commissioners' chairman. Bingham, who trailed by 70 votes in the May 2 primary, won 3,085 votes to Potts' 1,628. He will face Libertarian Michael Smith in the fill, but no Democratic opposition.

In a Democratic runoff in the 49th House District, David Huskins, a member of the NCCBI Board of Directors, beat former Rep. Annette Bryant, 1,307-1,113, and will face incumbent Rep. Mitch Gillespie (R-Burke).

Liquor-by-the-drink passed in two cities. Lincolnton voters approved mixed-drink sales, 1,565-1,231, as turnout topped 45 percent. In Claremont, 32 percent of voters turned out and approved mixed drinks 177-144.


State Government News Briefs

Cutting Red Tape: The Senate Judiciary II Committee on Thursday spend several hours discussing and hearing public comments on H. 968 Amend Contested Case Procedures. The bill, which is co-sponsored by Reps. Martin Nesbitt (D-Buncombe), Connie Wilson (R-Mecklenburg) and David Redwine (D-Brunswick), is strongly supported by NCCBI and is on this year's list of hot topics the association is following. The measure would simplify the administrative review process by making the decisions of the Administrative Law Judges (ALJ) final. Contested cases would continue to be commenced and conducted as they are under current law. However, once the ALJ makes a decision it will be the final administrative decision, rather than merely a recommendation as it is now. The bill also amends the Administrative Procedures Act to allow agencies to seek judicial review of administrative decisions by which they are aggrieved, in the same manner as now applies to petitioners. Speaking on behalf of NCCBI in support of the bill, Leslie Bevacqua, vice president of government affairs, said that “approval of this bill will make the process cleaner and we believe it is also a faster and fairer process. Time is a real factor for all businesses. One of the most frequent complaints we hear from our member companies is the amount of time it takes to process permits and the time it takes to get decisions. By making the decision of the ALJs final, it could cut as much as nine months out of the process and that would be a positive thing for everybody. The main opposition to the bill has come from state agencies which believe this would dilute their power. Gov. Jim Hunt has threatened to veto the bill if it passes in its current form. Other groups supporting the proposal include the N.C. Home Builders Association, the N.C. Forestry Association, the N.C. Academy of Trial Lawyers, the N.C. Association of Realtors, the N.C. Retail Merchants Association, the Manufacturers and Chemical Industry Council, the National Federation of Independent Businesses and a number of other associations. The committee will probably vote on the bill next week.

Senate Passes Million-Acre Bill: Gov. Jim Hunt on Wednesday praised the Senate for its quick action in approving legislation to place the goals of his Million Acres initiative into state law, and urged the House to act accordingly to begin the effort to preserve an additional one million acres of open space in the state by 2010. The legislation, S. 1328 Million Acre Open Space Goal, was sponsored by Sen. Fountain Odom (D-Mecklenburg) and appropriates no money for the land-preservation effort. Odom said the lack of money is the "only drawback" to the bill. "We all recognize the fact that North Carolina is experiencing unprecedented growth. We expect an addition 2 million people to become residents of this state by 2020," he told reporters. Sen. Bob Carpenter (R-Macon) cast the only vote against the bill. He said he fears the program will lead to government takeovers of private property, such as when the state condemned land surrounding a state forest in Transylvania County. The Senate vote came a day after a budget subcommittee cut $1 million the governor had proposed for farmland preservation. "This is a tough budget year, and we simply can't afford to do everything we would have liked," Hunt said. "But the whole idea of the Million Acres initiative is to get as many segments of our society as we can working in partnership to preserve our open space and quality of life." About 2.8 million acres, the majority in state and national parks and forests, already is set aside from development in North Carolina. The total constitutes about 8.6 percent of the state's land mass, and preserving one million additional acres would bring the total to about 12 percent. Rep. Phil Baddour has introduced similar legislation in the House.

House Panel Debates Four-Year Terms: The House Rules Committee on Wednesday debated but took no action on legislation calling for a constitutional referendum on giving legislators four-year terms. The bill, H. 98 Four-Year Terms for Legislators, by Rep. Ronnie Sutton (D-Robeson) comes 18 years after North Carolina voters soundly defeated the idea of extending legislators' terms from two years to four years. "My concern, more than anything else, is constantly having to campaign and constantly going to people, whether in person or by mail, and asking for their support, both at the polls and financially," Sutton said. A similar bill passed the Senate last year. Itis pending in the House would extend senators' terms to four years and impose a limit on the number of days of the General Assembly can remain in session each year. Rules Committee Chairman Bill Culpepper (D-Chowan) said his panel would also take up that measure. Constitutional amendment bills must receive a three-fifths vote to pass the General Assembly.

House Panel OKs Telephone Solicitations Bill: The House Public Utilities Committee on Wednesday approved a bill, H. 1493 Control Telephone Soliciations, that would impose rules on when solicitors could call residences and require that they disclose their identity. The measure by Rep. Gordon Allen (D-Person) would require intrastate telephone solicitors to state their names and the identity of the business at the beginning of the call; provide the phone number and address the telemarketer is calling from; end the call if the recipient does not consent; and remove the person from contact lists if asked to do so. Calls could not be made between 9 p.m. and 8 a.m. Telemarketers who violate the law could face a $500 civil penalty.

Floyd's Toll: In two days Hurricane Floyd did enough damage in Eastern North Carolina to wipe out an entire year's worth of homeowner's insurance premiums for all of North Carolina, insurance industry officials told the Senate Insurance Committee on Wednesday. Insurance industry representatives said companies selling property insurance collected $771 million in premiums in the state in 1998. Losses from Hurricane Floyd totaled $400 million for private companies and $373 million for the federal flood insurance program.

Toll Roads Discussed: The House Transportation Committee on Wednesday debated but took no action on a bill that would allow six pilot-project toll roads in the state -- three built by the state and three privately owned. The legislation, H. 1630 Toll Roads, by Rep. Jim Crawford (D-Granville) doesn't specify locations for any of the pilot projects, but witnesses said a proposed bridge over the Catawba River between Gaston and Mecklenburg counties would be the leading contender for a privately built toll road. The bridge would carry commuters from southern Gaston County to downtown Charlotte. The General Assembly traditionally has rejected toll roads, but a cash shortage has made them more appealing.


Federal Government News

OSHA Irate Over Ergonomics Vote
O
fficials at the U.S. Department of Labor are irate that Congress is again stepping in to control the agency's rush to adopt national ergonomic workplace rules. The agency isn't commenting publicly on last week's vote by the House Appropriations Committee to bar the agency from spending a nickel to implement ergonomics rules during the coming fiscal year. However, insiders are saying that the agency is attempting to persuade the White House to get into the fray.

The House panel voted 32-22, largely along party lines, to adopt an amendment to the Labor appropriations bill offered by Cong. Anne Northrup of Kentucky that says: "None of the funds made available in this act my be used by the Occupational Safety and Health Administration to promulgate, issue, implement, administer, or enforce any proposed, temporary, or final standard on ergonomic protection."

The committee then approved funding for OSHA at $381 million, $44 million below the president's request. The spending measure is part of the larger appropriations bill for the Labor, Health and Education departments totaling $327 billion.
Some Democrats sympathetic to OSHA's cause said they will challenge the provision on the House floor later this month.

OSHA, under pressure from organized labor, issued a 1,000-page proposed rule on ergonomic (repetitive motion) disorders last November. The rule, which applies to all manufacturers and up to 5.5 million workplaces nationwide, could cost U.S. firms between $8 billion and $18 billion. Key provisions would require employers to set up a comprehensive ergonomics program if just one musculoskeletal disorder (MSD) is reported; and require manufacturers to compensate employees with MSDs 90 percent of pay and 100 percent of benefits during their absence from work.

Nationally, MSDs are down 17 percent over three years. Opponents argue that the federal government should wait until an $890,000 scientific study of the causes of MSDs is available later this year. In August 1999, the House narrowly approved legislation requiring OSHA to wait for the scientific study results.

Reports Show Economy Slowing: Two economic reports issued on Wednesday confirm that the economy's rate of growth is slowing down. The Conference Board reported that the index of leading economic indicators declined by 0.1 percent in April, and the Department of Commerce said that housing sales declined by 5.8 percent. "Growth is slowing like a car in a school zone: Its engine is still revved up, but the vehicle itself is traveling at a lower speed," the NAM said. "These numbers confirm the emergence of a slowdown, especially in the wake of last week's data showing a decline in orders and slower consumer spending. The leading indicators demonstrate that the slowdown is broad-based. There was a decrease in new orders for consumer goods, pointing to a falling off in demand, while building permits declined, indicating that higher interest rates are slowing construction. The fall in home sales shows that there will be fewer home purchases and less construction in the face of higher mortgage rates. In the face of this new evidence, nobody can seriously argue that the rate increases have failed to slow the economy. There is now virtually no danger that the economy will overheat," the NAM concluded.

House Actions: The House Ways and Means Committee on May 25 approved a bill, H.R. 8, to phase-out the federal estate and gift tax over the next 10 years. Congress passes a similar bill last year but it was vetoed by President Clinton. . . .The House voted 420-2 on May 25 in support of a measure to abolish the 3 percent telephone excise tax, which was first imposed in 1898. The excise tax currently is imposed on both home and business phone bills for local and long-distance service. It was originally enacted as a temporary tax, but has been raised, lowered and extended over the past 102 years. Repeal of the excise tax was one of the majority recommendations submitted to Congress last month by the Advisory Commission on Electronic Commerce (ACEC).

Census Count Rising: Census Bureau Director Kenneth Prewitt reported Thursday that in every region of the country 90 percent or more of U.S. housing units have been accounted for -- meaning that a census form has been received for a unit or it has been identified as vacant. Some 66 percent of households mailed in their questionnaires, and field efforts to obtain information from households that did not respond are about 70 percent complete.

E-tail Increases: The data for retail e-commerce sales in the first quarter of this year show that e-retail continues to grow, the U.S. Commerce Department said Thursday. E-tail sales increased from $5.198 billion in the fourth quarter of 1999 to $5.260 billion in the first quarter of this year, an increase of 1.2 percent. Over the same period, total retail sales including e-tail declined 8.9 percent, from $821.35 billion in the fourth quarter of last year to $747.84 billion in the first quarter of this year. The fall in retail sales from the fourth to the first quarters is normal, reflecting the end of holiday buying. The continued growth of e-tail commerce indicates that on-line retail purchasing is not merely or primarily an end-of-year holiday phenomenon. The relative strength of online retail commerce, compared to all retail sales, was evident across industry categories, including computers, autos, books, sporting goods and catalogue sellers. E-tail commerce represents a very small share of all retail sales, 0.70 percent in the first quarter. However, this compares to 0.63 percent in the fourth quarter of 1999. Therefore, e-tail's share of all retail sales grew 10 percent from the fourth quarter to the first quarter.

Corporate Support for Wetlands: U.S. Department of Commerce Secretary William M. Daley on Thursday inaugurated the National Corporate Wetlands Restoration Partnership, a new first-of-its-kind public-private program combining corporate contributions with federal and state funds to restore the nation's environmentally valuable wetlands and other aquatic habitats. The Gillette Company and the National Association of Manufacturers, founding partners of the program, worked with the federal office of Coastal America to create the National Corporate Wetlands Restoration Partnership. The partnership expands a program initiated in Massachusetts last year by Gillette, the Massachusetts Executive Office of Environmental Affairs and the U.S. Environmental Protection Agency. The program was extended to all New England states earlier this year. Secretary Daley said, "Recognizing the value of this unique public-private partnership, Gillette and the National Association of Manufacturers have agreed to take the program nationwide working through the Coastal America Partnership. These efforts epitomize the benefits that can be accomplished through public-private partnerships that bring together our collective resources to meet a common goal." The Massachusetts Partnership now has 17 corporate partners who have contributed a total of $1 million in funds and in-kind services. One restoration project is already underway in Massachusetts, and several others are in the planning stage.

Bills of Interest Introduced This Week

Senate Bills

S 1497 LAKE JAMES STATE PARK FUNDS. Appropriates $5,000,000 for 2000-2001 from General Fund to Department of Environment & Natural Resources as title indicates. Effective July 1, 2000. Introduced by Metcalf and Carter. Referred to Appropriations

S 1501 AMEND CLEAN WATER TRUST FUND (=H 1815). Changes the method of allocation in the Clean Water Trust Fund. Identical to H 1815, introduced 5/30/00. Introduced by Rand. Referred to Agriculture. See House bill below.

S 1502 INCREASE FEES/INVESTMENT ADVISOR. Amends GS 78C-16(b1) to allow investment adviser representatives to be registered with more than one investment adviser if purpose is to solicit, offer, or negotiate sale of investment advisory services for investment advisers. Requires such representatives to register separately for each investment adviser for whom business is solicited and to disclose to each person solicited any compensation arrangements to extent required by Sec' y of State. Also amends GS 78C-17(b) to increase the registration fee from $45 to $55 for investment adviser representatives. Effective Oct. 1, 2000. Introduced by Harris. Referred to Finance

S 1506 COURT COSTS FOR TECHNOLOGY (=H 1854). Amends various sections of GS 7A to raise fees for district and superior court criminal, civil, special proceeding and estate cases by $4 per case. Raises General Court of Justice fee in small claims cases by $5 per case. Raises minimum fee for each annual filing for trust created under will and for each filing indicating additional assets in gross estate of decedent by $5. Raises fee for probate of will without personal representative by $3. Raises fee for administration of decedent' s estate by affidavit by $4. Raises fee assessed in foreclosure by $10. With exception of increase fees for administration of estate by affidavit, amount equal to fee increase to be credited to Court Information Technology Fund under GS 7A-343.2. Effective July 15, 2000 and applies to costs assessed or collected on and after that date. Introduced by Hoyle, Hartsell, Kerr and Odom. Referred to Appropriations

S 1507 MODIFY BILL LEE ACT. Identical to H 1814 (detailed below), introduced 5/30/00. Introduced by Hoyle. Referred to Finance

S 1510 SIMPLIFY TAX LAWS. Repeals SL 1999-414, which, effective January 1, 2001, adds GS 105-163.2A to require parties paying out pensions to withhold state income tax in some instances. Introduced by Webster. Referred to Rules

S 1512 CLEAN WATER TRUST FUND/ADDITIONAL FUNDS. Directs State Controller to not reserve any of unreserved credit balance in General Fund to cited fund at end of fiscal 2000-2001. Effective July 1, 2001, amends GS 143-15.3B to direct legislature to appropriate $40,000,000 per year to fund; amends same statute in 2002 to raise annual amount to $70,000,000 and to $100,000,000 in 2003. Deletes statutory requirement that a portion of unreserved credit balance in General Fund be credited to fund. Effective June 30, 2001. Introduced by Robinson, Carter and Metcalf. Referred to Appropriations

S 1513 SCHOOL CALENDAR LAW CHANGES (=H 1847). Amends GS 115C-84.2(a)(1) to require each local board of education to adopt a school calendar of 220 days per fiscal year, which shall include either 180 days or 1,000 hours of instruction covering at least nine calendar months. One thousand hours shall be considered the equivalent to 180 days for the purpose of computing the minimum number of instructional days required by subdivision and for the purpose of computing the number of instructional days worked by teachers. Amends GS 115C-84.2(c) to provide that during any period of emergency or state of disaster which requires (i) the evacuation of all or part of the population from any stricken or threatened area or (ii) severe limitations on nonessential vehicular traffic in or to the area, the Governor may order the closing of public schools in the area. Hours or days the schools are closed pursuant to this section shall be counted as instructional hours or days, and they do not have to be made up by students or teachers and do not affect teacher pay. Introduced by Lucas. Referred to Education

S 1514 OVERWIDTH PERMITS. Required the DOT to issue special permits for the transit of manufacturing housing up to 16 feet in width; sets a fee of $12 for single trip and $60 for annual permit. Introduced by Albertson. Referred to Finance

S 1520 ADDITIONAL FLEXIBILITY/COMM. COLL. FUNDS. Deletes provision in S.L. 1999-237 sec. 9.5 (1999 Appropriations Act) requiring funds appropriated for salary increases to be used only for salary increases and necessary employer contributions. Introduced by Hagan. Referred to Education

S 1525 BEACH NOURISHMENT/CLEAN WATER FUNDS. Specifies that the Clean Water Management Trust Fund can make grants for beach nourishment projects. Introduced by Ballantine. Referred to Agriculture

S 1526 GOOD ROADS FOR NORTH CAROLINA (=H 1836). Appropriates $45,000,000 for fiscal 2000-2001 from Highway Fund to Department' t of Transportation for additional contract resurfacing. Directs Department' t to study ways of incorporating measures of maintenance needs into allocation formulas for maintenance funds, with report to Legislative Transportation Oversight Comm' n no later than Dec. 1, 2000. Introduced by Foxx and Carpenter. Referred to Transportation

S 1527 STATE HIGHWAY PATROL REIMBURSED SPECIAL SERVICES. Requires Department to study implementation of a program for reimbursement to the State of costs for added services provided by the State Highway Patrol at various categories of scheduled events organized and operated by private, for-profit corporations. Department to report results of study to Joint Legislative Transportation Oversight Committee by December 1, 2000. Introduced by Foxx. Referred to Appropriations
S 1534 UNC NONAPPROPRIATED CAPITAL/REV. BONDS (=H 1853). Authorizes the construction and financing, without appropriations from the General Fund, of certain capital improvement projects at UNC System campuses, and amends the laws regarding certain revenue bonds that may be issued by the Board of Governors. The capital improvements projects authorized are:
1. Appalachian State University
New Dining Hall – Supplement $9,569,744
Steam Distribution – Reconstruction $3,109,200
2. East Carolina University
West End Dining Hall – Supplement $5,089,700
3. North Carolina School of the Arts
Technology Infrastructure – Residence Halls $1,000,000
4. North Carolina State University
Expansion of Parking Facilities $9,000,000
Centennial Campus Infrastructure $18,780,000
Centennial Campus Tenant Upfits $6,750,000
5. UNC-Asheville
New Residence Hall – Supplement $3,720,800
6. UNC-Chapel Hill
Sonja H. Stone Black Cultural Center $9,000,000
7. UNC-Charlotte
Alumni Center $3,300,000
8. UNC-Greensboro
Parking Deck $11,000,000
9. UNC-Pembroke
Dining Hall Addition $750,000
Amends GS 116-187 to authorize issuance of bonds to pay for projects or for nonprofit corporations providing such projects. Amends definition of “institution” at GS 116-189(4) to include the UNC Health Care System and UNC General Administration. Amends GS 116-189(5) to revise definition of term “project.” Amends GS 116-190(8a) to provide that in connection with contracts with nonprofit corporations, (i) to use alternative contracting methods, (ii) to direct that insurance be provided by the nonprofit rather than the State, and (iii) to contract with certified code-compliance reviewers, with no other reviews by State or local jurisdictions required. Introduced by Kerr. Referred to Finance

S 1542 VIDEO POKER MACHINES ILLEGAL. To make possession of more than three video poker machines on one premise illegal in North Carolina and to impose a privilege tax on all video poker machines. Introduced by Wellons. Referred to Finance

S 1543 REDUCE PAPERWORK IN PUBLIC SCHOOLS-1 (=H 1848). Amends GS 115C-307(g) to require that teachers in public schools be given access to information in the Student Information Management System. Prohibits local school boards from requiring teachers to provide information that is already in information system, or from providing same information more than once a year, or to complete forms related to federal Individuals with Disabilities Education Act unless the form is required by the federal government. Allows local school board to require information twice if it shows a compelling need to do so. Amends GS 115C-47(18) to eliminate duplicate and obsolete reports required of teachers, and to require board to establish a paperwork reduction committee. Directs State Board of Education to review reports it requires from local boards to see if any are duplicative or obsolete, to develop plan for paperless student information system by 2005-2006 school year, to work with federal education department to standardize forms required in cases involving disabled students, to study use of funds to comply with state and federal laws on education of students with disabilities, and to develop plan to reduce costs in such compliance matters by 50% for 2001-2002, and to use only federal funds for such compliance by 2002-2003 school year. Requires report to Legislative Education Oversight Committee by Dec. 15, 2001. Appropriates $20,000 from General Fund to State Board for 2000-2001 to conduct study. Effective July 1, 2000. Introduced by Dalton. Referred to Education

S 1544 TOURIST DIRECTIONAL SIGN PROGRAM. Requires DOT to implement a tourist oriented directional sign (TODS) program. Defines a TODS as a guide sign displaying business identification and directional information for tourist-oriented businesses, services, and activities. Specifies eligibility criteria for businesses to be included on signs and requires DOT to issue rules dealing with, among other things, fees for cost of signs; size, color, and letter height of signs; and number of panels per sign. Appropriates $10,000 from General Fund to DOT for 2000-2001 to implement program. Effective July 1, 2000. Introduced by Garrou. Referred to Appropriations

S 1552 ESTABLISH INVESTMENT ADVISORY COMM. Adds GS 147-69.4 to create the Investment Advisory Committee, consisting of five members who serve staggered two-year terms. One member appointed by Governor, and two each appointed by President Pro Tempore of the Senate and the Speaker of the House of Representatives. Sets forth duties of Committee. Adds GS 147-69.5 to provide for development of investment policy statement by Committee that sets forth standards governing investment of trust funds by State Treasurer. Requires State Treasurer to meet quarterly with Committee, and to note in annual report to General Assembly any investment policy made against the recommendation of the Committee. Effective April 1, 2001. Introduced by Hoyle. Referred to Finance

S 1554 PASS-THROUGH ENTITY/HOUSING TAX CREDIT. Amends GS 105-129.16B to provide that a pass-through entity that qualifies for the credit provided in this section may allocate the credit among any of its owners in its discretion as long as the amount of credit allocated to an owner does not exceed the owner' s adjusted basis in the pass-through entity at the end of the taxable year in which the federal credit is first claimed. Makes provisions for forfeiture for disposition and for change in ownership, with exception to latter if change in ownership is result of death of owner or a merger, consolidation, or similar transaction requiring approval by shareholders, partners, or members of the taxpayer, to extent taxpayer does not receive cash or tangible property. Provides for liability from forfeiture. Effective for taxable years beginning January 1, 2000, and applies to buildings to which federal credits are allocated on or after January 1, 2000. Introduced by Hoyle. Referred to Finance

H 1812 NO SALES TAX ON DONATIONS. Rewrites GS 105-164.13(42) to allow exemption from sales tax for any donation of personal property by merchant that is removed from inventory and donated to any entity for which contributions may be deducted for federal income tax purposes. Introduced by Allred. Referred to Finance.


House Bills

H 1814 MODIFY BILL LEE ACT (=S1507). Amends GS 105-129.6(a1) to provide that fee does not apply to any credit the taxpayer intends to claim with respect to a location that is in a development zone as defined in GS 105-129.3A. Amends GS 105-129.13(e) to provide that there is no fee for an application under this section. Amends GS 105-129.5 to provide that any unused portion of a credit may be carried forward for the succeeding 15 years if the Sec' y of Commerce certifies when an application for the credit is first made that the taxpayer will purchase or lease, and place in service in connection with the eligible business within a two-year period, at least $50 million of real property, machinery and equipment, or central office or aircraft facility property. Makes forfeiture provision. Amends SL 1999-237 and GS 143B-437.01(a) to provide limit use of industrial recruitment competitive fund. Amends GS 143B-431.2 to provide Department of Commerce may not make a loan nor award a grant to any individual, organization, or governmental unit in default on Department loan. Makes conforming changes to GS 105-129.2, 105-129.4, 105-129.7(b), and 105-129.12. Amends GS 105-129.4(e) to add as condition to new investment definition requirement that business was acquired by its employees directly or indirectly through an acquisition company, as defined in this section. Defines “qualified low income building” to include those located in a county that, at the time the federal credit is allocated to the building, has been designated as having sustained severe or moderate damage from a hurricane or hurricane-related disaster, and lists counties. Makes other conforming changes. Makes various sections of act effective between May 1, 1999 and January 1, 2001. Introduced by Owens and Nesbitt. Referred to Finance

H 1815 AMEND CLEAN WATER TRUST FUND (=S 1501). Requires that funds in the Clean Water Management Trust Fund be allocated to 17 river basin accounts in amount equal to the population in that river basin on June 30 of that fiscal year (at rate of $1.00 per person). Directs trustees of Clean Water Fund to award grants from these accounts for purposes described in current GS 113-145.3. Provides further that eligible river basin association, as defined in new GS 113-145.3A(d), may apply to trustees for authority to award grants for its river basin. Also amends GS 113-145.6A to require river basin associations that award grants to submit quarterly financial reports, beginning Nov. 1, 2000, to Trustees of Clean Water Fund and specified commissions and legislative committees. Effective July 1, 2000. Introduced by Hurley. Referred to Rules

H 1816 GENDER EQUITY REPORTING. Provides that in appointing members to any statutorily created county board of health, district board of health, area mental health authority, board of social services, alcoholic beverage control board, or any other decision-making or regulatory public office as that term is defined by GS 143-47.6(2), the appointing authority should select, from among the most qualified persons, those persons whose appointment would promote membership that accurately reflects the proportion that each gender represents in the State, unless the law requires otherwise. Requires annual report, by December 1, to Sec' y of State by each comm' n, council, committee, board, or other entity, on forms to be provided by Sec' y. Single report to be compiled by Sec' y and made to the Governor, the Speaker of the House of Representatives, and the President Pro Tempore of the Senate. Appropriates $25,000 for 2000-2001 from General Fund to Department of the Secretary of State. Effective July 1, 2000. Introduced by Adams. Referred to Rules

H 1819 RURAL REDEVELOPMENT AUTHORITY FUNDS (=S 1516). Adds Part 2D (GS 143B-437.20 through 143B-437.33) in GS Ch. 143B, Art. 10, which creates NC Rural Redevelopment Authority and specifies its powers, duties and purposes. Locates Redevelopment Authority within Department of Commerce but gives it power to employ, direct, and supervise its personnel independently of Secretary of Commerce. Establishes 8-member board comprised of two members appointed by Governor, two by Speaker, and two by President Pro tem; Secretary of Commerce, who serves ex officio; and CEO of Redevelopment Authority. Authorizes Redevelopment Authority to create Rural Investment Fund to make intermediate-term loans to government entities and nonprofits for self-liquidating projects, such as shell buildings, in rural counties. Also authorizes creation of Long-Term Rural Development Fund for, among other purposes, acquiring and developing property for industrial sites and industrial parks in rural counties; providing road and railroad improvements for such projects; and providing fiber optic cable and other infrastructure to accommodate high-speed Internet access. Adds Redevelopment Authority to entities covered by GS 120-123 (prohibiting service by members of General Assembly on certain boards) and 126-5(c1) (exempting certain state employees from state personnel system). Appropriates $250,000 from General Fund to Redevelopment Authority for 2000-2001. Effective July 1, 2000. Introduced by Tolson, Baddour, Redwine, and Easterling. Referred to Ways & Means

H 1823 TOBACCO SETTLEMENT RECEIPTS BONDS. Adds GS 142-57 to provide that State Treasurer may, by and with the consent of the Council of State, issue and sell from time to time special limited obligation bonds of the State to pay the cost of State-authorized programs. Sets terms for sale of bonds. Adds GS 142-58 to provide that any bonds issued under this article may be secured by a trust agreement by and between the State and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State. Adds GS 142-59 to provide that State is authorized to pledge all or any portion of the settlement receipts to the payment of the principal of, premium, if any, and interest on bonds issued under this article, and makes provision for limited obligations. Introduced by Baddour, Allen, Alexander, and Hill. Ref. to SLCTTB

H 1824 TEACHER TAX CREDIT. Adds new GS 105-151.29 to give classroom teachers in low-performing public schools, as defined in GS 115C-105.37, a $400 tax credit for each semester of taxable year. Defines classroom teacher as full-time permanent employee who spends at least 50% of school day providing classroom instruction. For married couple filing joint return, allows each qualifying spouse to claim separate credit. Effective for taxable years beginning on or after Jan. 1, 2001. Introduced by Arnold. Referred to Finance

H 1858 LOCAL WATER QUALITY PLANS. Creates Art. 17 in GS Ch. 113A (GS 113A-240 through 113A-244) establishing cooperative program of water quality management among local governments in coastal area, local governments in the eight coastal river basins, and state government. Creates 15-member Clean Water Comm' n within DENR, composed of five members appointed by Governor, five appointed by General Assembly on recommendation of Speaker, and five appointed by General Assembly on recommendation of President Pro Tem. Requires that nominees be residents within upstream counties or coastal areas and limits number of appointees from any particular county. Requires each local government within the eight coastal river basins that has within its jurisdiction a watershed that drains into the coastal area to adopt a local water quality management plan, which must be submitted to Comm' n for approval. Requires plan to include, among other things, inventory of local government' s surface water resources, analysis of water quality, and inventory and analysis of land uses adjacent to water sources. Requires Comm' n to assist local governments in developing plan. Also requires Comm' n, after notice to local government, to assume responsibility for water quality management planning when the local government fails to adopt a plan meeting Comm' n standards or fails to enforce the provisions of its plan. Provides for civil penalties for failure to administer, enforce, or comply with plan. Introduced by Culpepper. Referred to Environment

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