July 20, 2000 * Issue No. 8 * Wrapping Up of the
2000 Short Session
This is the print-out version of the Bulletin,
with no pictures or graphics
Surprise! The Short Session Ends
Up Being Relatively Short
The General Assembly
adjourned its so-called short session on July 13
after a 13-hour meeting in which a few bills of
major importance were passed and hundreds of
other pieces of legislation were "postponed
indefinitely" -- given a merciful death. It
was the earliest adjournment date of a short
session -- those held in even-numbered years
whose main purpose is to adjust the state's
two-year budget -- since 1988, when lawmakers
went home on July 12. See the complete list of
bills ratified by the General Assembly.
The final day saw a resolution of the bill to
outlaw video poker machines, agreement on how to
divide the tobacco settlement money for two trust
funds, and a compromise reached on legislation to
allow the first-ever toll roads in North
Carolina. And as lawmakers were trying to
complete their business and leave town, tempers
became heated over a seemingly innocuous change
in state law governing how county elections
boards determine the locations for one-stop
voting -- places where voters can apply for and
cast absentee ballots in the days before an
election. Before, local elections boards, which
include Republicans and Democrats, had to be
unanimous in choosing such one-stop voting sites.
But the House took up a bill (actually, it was
tacked onto a bill to limit fundraising by
lobbyists during legislative sessions) that said
any single member of a local elections board
could petition the State Board of Elections to
set up a one-stop voting site.
Republicans in the House perceived that as a
political tactic that would help Democrats, and
each member wanted to express their opposition to
the measure. House Speaker Jim Black, even as he
called security guards to stand by outside the
chamber in case they were needed inside, allowed
each GOP member to speak that wanted to. That
debate took more than four hours before the bill,
S. 767 Lobbyist Waiting Period, finally passed on
a party line vote of 61-48.
NCCBI's legislative agenda fared pretty well this
year. First and foremost, the association
achieved all of its objectives for education,
including the fourth and final step in raising
teacher salaries to the national average, the
final installment in extending Smart Start into
all 100 counties, and continued funding for the
Excellent Schools Act.
In that same vein, NCCBI was pleased that the
General Assembly approved legislation calling for
a fall referendum on issuing $3.1 billion in
higher education facilities bonds. NCCBI is
leading the campaign for passage of the bonds.
NCCBI recorded a major legislative victory when
lawmakers approved a major rewrite of the state's
Administrative Procedures Act, including changes
that will make the process fairer and faster when
a business person needs to challenge a decision
by a state regulatory agency. See a complete
story on that issue.
In addition, the General Assembly took important
steps toward implementing recommendations by the
Rural Prosperity Task Force. A vote on session
limits, however, never came up nor did four-year
terms for legislators.
"In general, I think we had a very good
session," said NCCBI Vice President of
Legislative Affairs Leslie Bevacqua.
"Heading the list of things we're proud of
is the education bonds, naturally, and full
funding for the other educational objectives --
which is no small accomplishment in a tough
budget year. But," Bevacqua added,
"we're very happy about passage of the
Administrative Procedures Act rewrite because I
think that will make life a lot easier for
companies when they have to deal with all the red
tape of state government. The bottom line is,
there weren't any major bills passed that I would
say are bad for business."
Most public attention centered on the
legislature's battle over video poker machines.
Initially, the Senate passed a bill to completely
outlaw the machines from the state. The House
didn't want to go that far and the thorny issue
was handed to a conference committee. The
compromise reached basically outlaws any
additional machines but grandfathers the ones
already operating in the state. The legislation
says no location -- they're mostly found at truck
stops and small convenience stores -- may have
more than three machines.
And after being declared all but dead, the
legislation to allow toll roads in the state was
resurrected and approved. Pared down
substantially from its original version, which
called for five toll roads built by the state and
five others built by private developers, the bill
that was adopted on the legislature's final day
allows only one toll road to be built as a pilot
project. Further, the DOT will not be allowed to
use its broad powers to condemn and acquire land
for the private developer; it can use its powers
only to develop access roads leading to the toll
road. The legislation is H. 1630 Toll Roads.
Other bills of interest that were passed in the
session's final days include:
H. 1431 Tobacco and Health Trust Funds. This
measure sets the formula for dividing North
Carolina's proceeds from the national tobacco
settlement.
H. 1499 Interlock/Open Container Changes. This
bill makes it illegal for a passenger in a car to
have an open alcoholic beverage.
H. 1804 Establish Juvenile Department. This
measure elevates the Office of Juvenile Justice
and Delinquency Prevention to department-level
status.
S. 1192 Criminal Record Checks/Long-Term Care.
This new law requires the operators of rest homes
and other long-term care facilities to conduct
criminal record background checks on all
prospective employees.
S. 1183 NCRR Amendments. This measure gives the
board of directors of the N.C. Railroad broad
powers to operate the railroad like a business,
while still requiring annual reports to the
General Assembly.
S. 1252 Brownfields Tax Incentive. This measure
induces developers to reclaim brownfields by
reducing local property taxes over a five-year
period. During the first year, the tax exclusion
is 90 percent.
S. 1266 Uniform Electronic Transactions Act. This
measure seeks to make it easier to conduct
business over the Internet by using electronic
signatures.
S. 1381 Reallocate Water Bond Funds. This measure
makes more of the money from the 1998 state bond
issue for water and sewer improvements to be
available as grants to local governments, instead
of low-interest loans.
S. 1460 Film Industry Incentives. This new law
makes grants available to filmmakers who produce
works in the state by offering grants of up to 15
percent of the value of the production.
Major Rewrite of Administrative
Procedures Act Passes
Ending a two-year debate and handing NCCBI one of
its major legislative goals for the year, the
House voted 99-11 on Tuesday to approve
legislation that significantly restructures the
way administrative hearings will be handled in
North Carolina in the future. The primary purpose
and effect of the bill is to send a message to
government agencies that they are to give greater
credence to the decisions reached by
Administrative Law Judges (ALJs) in the Office of
Administrative Hearings.
The bill, H. 968 Amend Contested Case
Proceedings, sponsored by Rep. Martin Nesbitt
(D-Buncombe), passed the House last year but
became bogged down in the Senate. After 18
separate revisions, the Senate eventually
approved the bill and returned it to the House
for concurrence in amendments, which the House
did Tuesday.
At issue is what happens when someone contests a
decision by a state agency. For most NCCBI
members, this might happen after a state agency
denies a required environmental permit, for
example, or issues a fine or other penalty.
Up to now, such decisions by state agencies could
be appealed to the Office of Administrative
Hearings and the case would be heard by an ALJ.
The parties would present evidence much like a
regular court case. But once the ALJ announced
his decision, the state agency was not bound to
abide by it. In fact, statistics showed that
state agencies simply ignored the ALJ's decision
about 90 percent of the time. From there, the
plaintiff would have to take the matter into
Superior Court.
A major complaint NCCBI has repeatedly heard
about this process is how much time seems to be
wasted. The legislation enacted Tuesday shortens
somewhat the times in which the agencies must
act. The sponsors of the bill hope and believe
that it will provide faster and fairer hearings
for individuals, state employees, private
companies, local governments and anyone else
whose interactions with North Carolina are
governed by the state's Administrative Procedure
Act.
The bill makes the decision by the ALJ more
meaningful in a number of ways, as reflected by
the basic fact that the ALJ's action is no longer
a "recommended decision," but is now a
decision, which is returned to the agency for a
"final decision."
The legislation says agency is to adopt the
decision by the ALJ unless the agency
demonstrates that the decision is clearly
contrary to the preponderance of the evidence in
the record.
The bill places special requirements on the
agency if it tries to modify the findings of fact
by the ALJ, and also requires explanation by the
agency if it does not accept the result reached
by the ALJ. Even more importantly, if the agency
does not accept the decision by the ALJ, the
standard of judicial review by the Superior Court
is modified from its current deferential standard
to a standard known as "de novo."
In this de novo review, the court takes the
record (including the decisions by the ALJ and
agency) and makes its own decision, giving no
deference to any previous decision. The court is
given broad powers to affirm, reverse or modify
the decision. It is contemplated that this new
formulation will allow courts, for the first
time, to correct agency decisions that the court
believes to be wrong, but which in the past, have
been allowed to stand, because the courts felt
constrained by the very deferential standards
contained in the APA.
The bill makes other changes designed to
implement a fairer process. It allows a reviewing
court to grant attorney fees to a party appealing
an administrative decision to include the time
and expense of the hearing in front on the ALJ
and the agency, reversing the current law, which
allows such fees only for the time spent before
the court. (The party must, however, still meet
the requirements in the fee statute, including
that the agency acted without substantial
justification.)
The bill also allows the ALJ to award attorneys
fees for state employee appeals, as well as
making other significant changes in the appeals
process for those employees, the most significant
of which is to place the burden of proof on the
State in cases where the employee is discharged,
suspended or demoted for just cause. Finally, the
bill requires that ALJs must comply with relevant
portions of the Model Code of Judicial Conduct.
The bill reflects the hard work of Reps. Martin
Nesbitt and Connie Wilson, as well as Sen. Brad
Miller. (The committee substitute adopted by
Senator Miller's Judiciary 2 Committee was draft
No. 18 as reviewed by a working group composed of
supporters and representatives of the Governor
and Attorney General's office.) The bill was
supported by a broad and diverse coalition of
groups, including NCCBI, the N.C. Home Builders,
and other industry groups, as well as the Academy
of Trial Lawyers, the AFL-CIO, and the N.C.
Justice & Community Development Center (which
often represents State employees).
Although the final bill reflects a less drastic
change than would have been made by the bill as
initially by the House (which gave the ALJ's
final decision-making authority), the bill as
passed by the General Assembly reflects a
important effort by the legislature to deal with
those instances where the agencies appear not
have given the ALJs' recommended decisions enough
credence in the past. For the majority of those
agency decisions which are upheld by ALJs and
then readopted by the agencies, the bill makes
much more modest changes, although still
shortening the time periods for appeal and
allowing attorneys fees in appropriate cases.
Note: NCCBI thanks Charles Case of the Hunton
& Williams law firm in Raleigh for helping
prepare this article.
New Laws on the Books
Below is the complete list
of bills ratified by the General Assembly during
the short session. A few had not yet been signed
into law by Gov. Jim Hunt, but he has not
indicated he intended to veto any of them. In the
list below, the number of the bill is given
first, followed by the sponsor and then the short
title.
HOUSE BILLS ENACTED DURING 2000 LEGISLATIVE
SESSION
H 0133 (Gene Rogers) EXEMPT DISABLED VETERAN
VEHICLES
H 0519 (Larry Justus) HENDERSON FIRE DISTRICTS
H 0541 (Frank Mitchell) PWC AMENDMENTS
H 0684 (Jane Mosley) MUNICIPALITIES' TREE
ORDINANCES
H 0723 (Verla Insko) DARK WINDOW INSPECTION FEE
H 0813 (Bob Hensley) PROHIBIT CYBERSTALKING
H 0973 (Dewey Hill) MARRIAGE BY SUPERIOR CT.
JUDGE
H 1021 (Dewey Hill) AMEND ARTICLE 3 UCC
H 1153 (Larry Justus) RETIRED PHYSICIAN LICENSE
H 1184 (Thomas Wright) HOSPITAL GOVERNING
AUTHORITY
H 1288 (Paul Luebke) ESTABLISH METRO. PLANNING
BDS.
H 1302 (Donald Bonner) CHARTER SCHOOL FUEL
EXEMPTION
H 1326 (Pryor Gibson) DRY-CLEAN. SOLV. CLEANUP
AMENDS.
H 1463 (Dan Barefoot) HONOR DAVID CLARK
H 1473 (Joe Hackney) RENEWABLE ENERGY MFR. CREDIT
H 1485 (Lyons Gray) HONORING THOMAS H. DAVIS
H 1494 (Larry Justus) TOWN OF LAUREL PARK CHARTER
H 1497 (Wayne Goodwin) RICHMOND COUNTY
SUBDIVISIONS
H 1504 (Walter Church) VALDESE MAYORAL TERMS
H 1506 (Jennifer Weiss) FOOD ESTAB/SANIT
REQUIREMENTS
H 1507 (Russell Tucker) DUPLIN/REPEAL TRAP
PROHIBITION
H 1514 (Max Melton) RESPITE CARE PROGRAM NOT
SUNSET
H 1517 (Monroe Buchanan) FOOTHILLS REG. AIRPORT
AUTH
H 1518 (Walter Church) CREDIT INSURANCE
CLARIFICATION
H 1519 (Verla Insko) MENTAL HEALTH SYSTEM REFORM
H 1520 (Verla Insko) RESTRAINTS IN FACILITIES
H 1536 (Phil Haire) SYLVA ELECTIONS
H 1539 (Gene Rogers) QUALIFIED ZONE ACADEMY BOND
ACT
H 1541 (Bill Owens) CAMDEN AMBULANCE FEES
H 1542 (Bill Owens) CAMDEN/ELECTRONIC DOG COLLARS
H 1545 (Art Pope) EXCISE TAX ON TIMBER CONTRACTS
H 1546 (George Holmes) LAND FOR CORR. FACILITY
H 1551 (George Miller) REVENUE AGENTS' AUTHORITY
H 1552 (Doug Yongue) LAURINBURG STREET
ASSESSMENTS
H 1553 (Doug Yongue) LUMBERTON/PINEVILLE TRAFFIC
VIOL.
H 1555 (Dan Barefoot) GASTONIA OVERGROWN LOTS
H 1559 (Paul Luebke) CONFORM WITH FEDERAL LAW
H 1560 (Gordon Allen) MODIFY BILL LEE ACT
H 1564 (Joe Tolson) INFO. TECH. PROCUREMENT
H 1571 (Beverly Earle) ADULT PROT. SVC/COMPLAINT
INVEST
H 1573 (Mary Jarrell) HEALTH CARE FAC./CCRC TAX
EXEMPT
H 1577 (Rex Baker) BULLHEAD MOUNTAIN STATE NAT.
AREA
H 1579 (Max Melton) MONROE CHARTER CONSOL.
H 1587 (Harold Brubaker) SEAGROVE ANNEXATION
H 1593 (Ronnie Smith) EXTEND ELECTRIC SERVICE
COMM
H 1598 (David Redwine) BRUNSWICK/ALAM./OAK I. LOC
BILL
H 1602 (Pryor Gibson) STORMWATER UTILITY FEES
H 1606 (Mary Jarrell) HIGH POINT OVERGROWN LOTS
H 1607 (Bill Culpepper) MODERNIZE BAIL BOND
FORFEITURES
H 1617 (Nurham Warwick) LEA ISLAND NAT. AREA/ST.
PROP.
H 1618 (Nurham Warwick) PETROL. DISCH./DE MINIMIS
REPT
H 1624 (George Miller) STREAMLINED SALES TAX
SYSTEM
H 1629 (Jim Crawford) BUTNER WATER & SEWER
BONDS
H 1638 (Joe Hackney) INST./MAINT. TECHN. &
FEE AMEND.
H 1647 (Ed McMahan) CHARLOTTE ECON. DEV.
QUICKTAKE
H 1648 (Ed McMahan) CHARLOTTE TRANSIT PROCUR.
H 1653 (Leslie Cox) BROADWAY MAYORAL TERMS
H 1656 (Joe Kiser) LINCOLN COUNTY E&R BOARD
H 1659 (Ronnie Smith) CARTERET NO-WAKE ZONE
H 1667 (Martha Alexander) CHARLOTTE CHARTER
CONSOL.
H 1670 (Max Melton) MARSHVILLE CHARTER AMEND.
H 1675 (Wayne Sexton) MAYODAN TOWN MAN. RESIDENCY
H 1688 (Bill Owens) CURRITUCK PERS. WATERCRAFT
H 1695 (William Wainwright) NEW BERN MAYOR
H 1699 (Bill Hurley) INS. LICENSE
FEES/RECIPROCITY
H 1728 (Gregg Thompson) SPRUCE PINE DEANNEXATION
H 1730 (Gregg Thompson) SUGAR MOUNTAIN CHARTER
H 1732 (David Redwine) OCEAN ISLE BEACH EROSION
CONT.
H 1739 (Martin Nesbitt) ASHEVILLE CHARTER AMEND.
H 1744 (Donald Bonner) ROWLAND CHARTER AMEND.
H 1748 (Stan Fox) GRANVILLE/BANNER ELK TAX USE
H 1753 (Gene Rogers) MARTIN CO. PISTOL PERMIT FEE
H 1756 (Bill Owens) PASQUOTANK FUNDING REPEAL
H 1767 (Connie Wilson) MECKLENBURG PROP.
DISPOSITION
H 1768 (Verla Insko) CARTERET/PENDER/ORANGE
OMNIBUS
H 1779 (Paul Luebke) DURHAM ANTI-SWEATSHOP REQ.
H 1783 (David Redwine) OCEAN ISLE/KINSTON
PROPERTY
H 1784 (Sam Ellis) SWIFT CREEK BOUNDARIES
H 1802 (Charlotte Gardner) SALISBURY PROPERTY
SALES
H 1803 (Drew Saunders) HUNTERSVILLE/MATTHEWS
ANNEX.
H 1840 (Ruth Easterling) 2000 APPROPRIATIONS ACT
H 1854 (George Miller) 2000 FEE BILL
H 1860 (Bill Culpepper) COMMEMORATE STATE CAPITOL
SENATE BILLS RATIFIED DURING THE SHORT SESSION
S 0328 (Allen Wellons) DOT RIGHT-OF-WAY PLAN
FILING
S 0393 (Brad Miller) WRITTEN MOTIONS/SUPPORTING
BRIEFS
S 0767 (Brad Miller) LOBBYIST WAITING PERIOD
S 0819 (Betsy Cochrane) HONOR "VINEGAR
BEND" MIZELL
S 0897 (Walter Dalton) SAFETY PROFESSION
S 0912 (Tony Rand) BONDS FOR HIGHER EDUCATION
S 0927 (Ellie Kinnaird) SERVICES FOR THE BLIND
S 1076 (Roy Cooper) REFORM LOCAL TAX - RENTAL
CARS
S 1081 (Charlie Albertson) AGGREGATE WEIGHT
CHANGE
S 1179 (Tony Rand) HEALTH CARE REGISTRY REPORTS
S 1189 (Fletcher Hartsell) CHINA GROVE CHARTER
S 1190 (Patrick Ballantine) CAROLINA BEACH
ANNEX./STS.
S 1193 (John Garwood) WILKES/ASHE FIRE DIST.
BOUND.
S 1195 (Wib Gulley) DOT ESTAB. RURAL PLANNING
ORGS.
S 1215 (Charlie Dannelly) MEDICAL CARE
COMMN./RULES
S 1234 (Bill Purcell) LONG-TERM CARE
RESIDENTS/IMMUNIZ
S 1260 (Eric Reeves) SECURITY OF ELECTRONIC
RECORDS
S 1263 (Charlie Dannelly) CHARLOTTE WHEEL LOCKS
ALLOWED
S 1264 (Jim Forrester) MOUNT HOLLY ANNEXATION
S 1269 (Ed Warren) LIMIT LIABILITY/DEFIBRILLATOR
S 1275 (Luther Jordan) EXTEND BILLBOARD
MORATORIUM
S 1279 (Aaron Plyler) PETROLEUM DISCHARGE
AMENDS-1
S 1281 (David Hoyle) REPEAL CHERRYVILLE FIRE
PENSION
S 1283 (Don East) ASHE SCHOOL BOARD
S 1286 (Ellie Kinnaird) RANDLEMAN RECALL
S 1288 (Dan Clodfelter) MECKLENBURG MUNICIPAL
ZONING
S 1289 (Dan Clodfelter) MECKLENBURG COUNTY ZONING
S 1290 (Dan Clodfelter) ELECTION BD. MEMBERS
CONDUCT
S 1293 (Bill Purcell) TOWN OF BADIN/TAX RATE
S 1300 (Fletcher Hartsell) MIDLAND INCORPORATION
S 1301 (Fletcher Hartsell) CABARRUS ANNEXATION
MORAT.
S 1302 (Fletcher Hartsell) CABARRUS SCHOOL BIDS
S 1316 (Brad Miller) PROF. ENG./LAND SURVEYORS
LIC.
S 1318 (Walter Dalton) AMEND BILL LEE ACT TIER
DESIG.
S 1328 (Fountain Odom) MILLION ACRE OPEN SPACE
GOAL
S 1329 (Fountain Odom) ADD. NOTICE/MINING PERMIT
APPL.
S 1334 (R.C. Soles) TABOR CITY ANNEXATION
S 1340 (Allen Wellons) GUARDIANSHIP REVISIONS
S 1347 (Jim Phillips) DRIVERS POINTS/NO CHILD
RESTRAINT
S 1354 (Fountain Odom) INDEP. LIVING FUNDS/COUNTY
MATCH
S 1359 (Ham Horton) WINSTON-SALEM LOCAL ACT
S 1362 (Jim Forrester) GASTON COUNTY PROPERTY
SALES
S 1363 (R.C. Soles) EXTEND WHITEVILLE ETJ
S 1364 (Fletcher Hartsell) EXTEND CABARRUS
E&R BOARD
S 1382 (Don East) BIDDING LAW EXEMPTION/SURRY CO
S 1418 (Hugh Webster) YANCEYVILLE CHARTER AMEND.
S 1443 (Fletcher Hartsell) CABARRUS SCHOOL BID
PROCED.
S 1444 (Fletcher Hartsell) CABARRUS CONVENTION
CENTER
S 1447 (Ellie Kinnaird) CHAPEL HILL OMNI/NEWPORT
PURCH
S 1448 (Ellie Kinnaird) HILLSBOROUGH DEANNEXATION
S 1454 (Dan Robinson) HAYWOOD/NO SPOTLIGHTING
DEER
S 1461 (Don East) MT AIRY FIREFIGHTERS'
RETIREMENT
S 1463 (David Hoyle) DARE UTILITY UNDERGROUNDING
S 1474 (Steve Metcalf) LEASE LAW EXEMPT./BUNCOMBE
TCC
S 1481 (Brad Miller) RESEARCH TRIANGLE PARK
BOUND.
S 1495 (Tony Rand) MEET AT STATE CAPITOL
S 1558 (Tony Rand) 2000 ADJOURNMENT RESOLUTION
Study Bill Foreshadows Issues for
Next Legislative Session
One important piece of business the General
Assembly takes care of before adjourning each
year is deciding which issues and topics to study
until the legislature reconvenes the next year.
All these topics are lumped together in the
so-called "Study Bill," a measure
that's closely watched because it's seen as a
reliable barometer of forthcoming legislation.
Often, the issues to be studies stem from
legislation that was considered in one chamber or
the other but which failed to be ratified. This
year's bill, S. 787 Studies Act of 2000, directs
the Legislative Research Commission a great many
matters, the most important of which are
summarized below. Where applicable, the specific
bill is listed in parentheses that caused the
study.
* Governmental and personnel issues, including
salaries and benefits of Department of Correction
employees (H. 1782 - Gibson), and the receipt and
use of federal funds under Title VI of the 1964
Civil Rights Act (S.J.R. 1274 -Jordan).
* Insurance, managed care, and other health care
issues, including insurance availability in beach
and coastal areas (H. 1835 - Redwine);
employer-sponsored, self-insured group health
benefit plans (S. 1429 - Dalton, Miller); and
parity in health insurance coverage for mental
illness and chemical dependency benefits (H. 1567
- Alexander; S. 1254 - Martin of Guilford).
* Education issues, including placement of and
providing a special education to children in
group homes (H. 1833 -Hurley, Morris; S. 1540 -
Rand).
* Health and public safety issues, including
pregnancy and drug abuse (H. 1846 - Sherrill),
and social anxiety disorder (H. 1652 - Edwards,
Wainwright).
* Economic development issues, including the
state's travel and tourism industry and the
economic benefits of that industry (Warwick).
* Environmental/agricultural issues, including
small family farm preservation (H. 1623 -
Mitchell; S. 1342 - Albertson).
* Water supply issues, including the source and
supply of groundwater and surface waters in North
Carolina including interbasin transfer of water,
pollution of groundwater and surface waters in
North Carolina, progress toward controlling
pollution of groundwater and surface waters,
technology available for use in related areas,
statewide public and private use of water, and
water capacity use area issues. (Warwick, Rand,
Odom, Albertson).
* Election laws, including a study of second
primary elections, the cost to taxpayers to
conduct second primaries, voter turnout, impact
on elections, and other related matters.
* Revenue laws, includingthe simplification of
all state revenue and tax forms; tax credits,
including adjustments to and credits for ad
valorem taxes, to encourage production of
affordable housing; the establishment of an
investment advisory committee to serve as a
liaison between the General Assembly and the
State Treasurer and to assist the Treasurer in
setting investment policies for the state; the
homestead exemption (H. 1700 - Warner, Hurley; S.
1484 - Hoyle); simplification of taxes on
telecommunications (S. 1320 - Hoyle, Kerr); and
interstate tax cooperation to eliminate multiple
filings by individuals (S.J.R. 958 - Webster).
* Impacts of state acquisition of land for
conservation purposes, particularly the positive
and negative impacts on local government ad
valorem tax revenues.
* Interstate tax agreements, particularly income
taxes of individuals who work across North
Carolina's borders from their states of
residence.
The study bill authorizes the Joint Legislative
Education Oversight Committee to study several
issues, including public school bidding laws;
textbook distribution methods; school counselors
and social workers, particularly whether the
counselor-student ratio should be reduced from
1:450 to 1:250; the need for instruction in
foreign languages at the elementary school level;
and the feasibility of increasing the minimum
number of instructional days to 200, increasing
the minimum number of instructional hours to
1,120, and increasing the contractual period for
teachers to 12 months (H. 1727 - Arnold).
The study bill authorizes the Joint Legislative
Health Care Oversight Committee to study
mandatory disqualifiers for employment in rest
homes, adult care homes, home health care, and
other industries which provide care and services
to the elderly; the need for improved patient
access to pain treatment; and criminal background
checks required for the adult care industry .
The study bill authorizes the Appropriations
subcommittees on Natural and Economic Resources
in both the Senate and the House to study the
current organization of the Department of
Environment and Natural Resources to determine
its effectiveness and efficiency .
The study bill authorizes the State Board of
Education to study issues related to the public
school calendar; and to identify and evaluate
strategies that can be developed and implemented
to assist classroom teachers in providing
students with interdisciplinary lessons that
integrate science and social studies as well as
reading, writing, and mathematics.
The study bill authorizes the Environmental
Review Commission to review the recommendations
of the August 1999 report of the Estuarine
Shoreline Protection Stakeholders Team of the
Coastal Resources Commission. The ERC may
evaluate existing local government land-use
planning in the coastal and inland counties that
are included in the river basins that drain to
coastal North Carolina. The ERC may specifically
evaluate whether the local land-use planning
process required for coastal counties under the
Coastal Area Management Act of 1974 should be
extended to include inland counties that are
included in the river basins that drain to
coastal North Carolina.
Bond Campaign Opens Headquarters
Office
With the legislative session over for the year,
NCCBI is now focused on passage of the $3.1
billion in higher education facilities bond
referendum on the November ballot. Leslie
Bevacqua (left), NCCBI's vice president of
governmental affairs, begins her leave of absence
to run the campaign, which will be headquartered
in a suite of offices in the same building (and
even on the same floor) as NCCBI's offices in
downtown Raleigh. The campaign organization is
known as North Carolinians for Educational
Opportunity. Below is the information on how to
reach the campaign office:
Location: North Carolinians for Educational
Opportunity is on the same floor as NCCBI in the
Hillsborough Place building in downtown Raleigh,
in offices formerly occupied by the Raleigh
Convention and Visitors Bureau. As you get off
the elevator in the fourth floor, the bonds
campaign offices are directly ahead of you.
Address: The street address is 225 Hillsborough
Street, Suite 400, Raleigh, N.C. 27602. The
mailing address is PO Box 27704, Raleigh, N.C.
27611-7704.
Contact Information: The main office phone number
is 919-754-1156. The general e-mail address is
edbonds@bellsouth.net.
Director: to reach Leslie Bevacqua, dial
919-754-1160, or e-mail her at
edbonds@bellsouth.net. Please note that Leslie is
not working out of her NCCBI office, so don't try
calling her there.
Receptionists/Staff Assistants: Suzanne Smith,
Ann Faust
Student Outreach: Reyna Walters
Office Manager: Betty Harrison, 919-754-1161,
bhedbonds@bellsouth.net.
Finance Office: Joynce Peters, 919-754-1164, or
Katherine Pittman, 919-754-1163. E-mail the
finance office at kpedbonds@bellsouth.net.
Legislature Approves Increase in
State Spending of 3.5%
When the budget-adjusting short session began in
May, legislators repeatedly warned that a there
would be no new money available to appropriate in
the fiscal year that began July 1. But lawmakers
raised state spending by about $477 million, or
roughly 3.5 percent over the amount set when the
General Assembly adopted the biennial budget a
year ago.
The state was set to spend about $13.558 billion
this fiscal year. The House approved budget
revisions that would raise that amount by about
$443 million. The Senate adopted a plan to raise
spending by about $455 million. The House-Senate
conference committee resolved the differences by
recommending spending increases of $477 million.
Weak June Tax Collections Leave
State in the Red
North Carolina collected a record $13.13 billion
in tax and non-tax revenue during the fiscal year
that ended June 30, an impressive figure but one
that was $142 million short of meeting the
state's revenue expectations for the year,
according to preliminary figures released to
NCCBI by the State Controller's Office. However,
the state Office of State Budget and Management
was able to move money around from other accounts
in order to end the year with a balanced budget.
The OSBM's Robert Powell told us that the state
will use appropriated but unspent money from
several state agencies -- called reversions -- to
make up the shortfall. "We do a monthly
analysis of revenues and we had been expected a
shortfall of around $90 million, so we had been
controlling expenditures to make sure we were
covered. Last week we realized (the shortfall)
would be around $140 million. It's not clear just
yet exactly where we will get the reversions
because the agencies haven't closed out their
budget years yet. But we're confident we'll find
the money needed to make sure we end the year
with a balanced budget."
He stressed that the shortfall was one that could
be handled administratively and would not require
any action by the General Assembly.
In the accompanying table, all figures are shown
net of transfers to other accounts, so the
numbers don't agree with the gross figures
reported elsewhere in this story. But the net
figures are interesting because it's on this
basis that the state manages its day-to-day
balance sheet. It's also enlightening because it
allows a comparison within individual line items
to year-ago figures. For instance, the table
shows that franchise taxes collected in the year
ended June 30 are more than $100 million below
the previous year's total.
The deficit surprised state officials who earlier
had expressed confidence that surging revenue
collections in May, which were $300 million over
budget, would continue into June, the final month
of the fiscal year. But June revenues were $115.6
million below target as almost all major tax
categories were weaker than expected.
For the year, individual income tax collections
at $7.08 billion were $41.3 million below target
and sales taxes, at $3.36 billion, were $18.3
million under budget. Non-tax revenues, a
category that includes interest on state
investments, court fees and other line items,
were $66 million below the $808 million expected.
One bright spot in the budget picture was
corporate income taxes, which amounted to $1.22
billion for the year, an increase of $89.1
million or 7.9 percent over the previous year's
$1.13 billion. The Controller's Office, which
reports corporate income taxes net of transfers
to other accounts, reported that corporate income
taxes were $74 million over the $903 million
expected for the year.
Compared with the previous fiscal year,
individual income taxes -- which account for more
than half of all state revenues -- were up $473.6
million or roughly 7 percent for the year.
Area Meetings Just Around the
Corner
It's that time of year again when NCCBI members
all across the state get out their calendars to
mark down when the association's annual road show
will pull into town. This year, Chairman Mac
Everett of Charlotte will lead the NCCBI staff
through a record 22 meetings, up from 21 last
year. Everett, the First Union Bank executive,
has added Statesville to this year's tour.
So, before you forget, scan the schedule below
and identify the meeting that will be most
convenient for you to attend. Then please do
three things. First, mark that date on your
office calendar. Second, confirm your attendance
by pre-registering to attend the meeting by using
the brochure, pictured at right, we've mailed to
your office. And third, make plans to invite a
friend who you think would be interested in
joining NCCBI. This year, we're really
encouraging members to bring prospects to the
Area Meetings because it's a great opportunity
for prospective members to learn what NCCBI is
all about.
If you have a conflict the day of the area
meeting in your town, then try to attend one at a
nearby location. The Area Meeting tour is set up
on a regional basis, so the road show likely will
be in your part of the state for two or three
days.
NCCBI always looks forward to the Area Meetings
because they give the staff an opportunity to get
out of Raleigh and meet face to face with members
to report in person what we've accomplished for
you. It's also a great opportunity to meet the
new association chairman and to hear him discuss
his goals for the year.
Most of the meetings are luncheons and the rest
are breakfasts or receptions. But they all
generally follow the same format. They begin with
a half-hour of free drinks and networking,
followed by a good meal and brief speeches. The
meetings never last more than two hours, so
you're guaranteed of leaving the luncheon
meetings by 2 p.m. NCCBI is very lucky that many
good members have agreed to host each of the
meetings, which means they pick up the check at
each event. Please join us in thanking these
loyal members by seeing the complete list of
hosts.
Everett said he's excited. “I'm really
looking forward to meeting again with a lot of
old friends and shaking hands with a lot of NCCBI
members I've never had the opportunity to
meet,” he said. NCCBI President Phil Kirk
said a short portion of the program will be
devoted to providing information about the $3.1
billion higher education bond issue the
association is leading. At each stop on the tour,
plans are for a university chancellor and the
president of the local community college to speak
briefly about how the needs of their schools and
how they would spend their portion of the bond
proceeds.
As has been the case for several years, the costs
of each Area Meeting are borne by local hosts.
NCCBI is very grateful for the support these
hosts provide, and plans to acknowledge their
help in several ways. Limited space prevents us
from listing all the Area Meeting hosts here;
however, they will be acknowledged in posters at
each meeting and in several other settings.
Triangle Thursday, Sept. 7, Lunch, Angus Barn
Asheboro Thursday, Sept. 7, Reception, Asheboro
Chamber
Asheville Thursday, Sept. 21, Breakfast, Grove
Park Inn
Hickory Thursday, Sept. 21, Lunch, Days Inn
High Point Tuesday, Oct. 3, Breakfast ,String
& Splinter Club
Winston-Salem Tuesday, Oct. 3, Lunch, Salem
Academy
Greensboro Tuesday, Oct. 3, Reception, Grandover
Resort
Elizabeth City Monday, Oct. 16, Breakfast ,Pine
Lakes CC
Rocky Mount / Wilson Monday, Oct. 16, Reception,
Carlton House
Greenville Tuesday, Oct. 17, Breakfast ,Hilton
New Bern Tuesday, Oct. 17, Lunch, New Bern
Chamber
Kinston Tuesday, Oct. 17, Reception, Vermillions
Salisbury Wednesday, Oct. 18, Breakfast, Catawba
College
Concord Wednesday, Oct. 18, Lunch, Philip Morris
Charlotte Wednesday, Oct. 18, Reception,
Hyatt-South Park
Gastonia Thursday, Oct. 19, Breakfast ,City Club
Statesville Thursday, Oct. 19, Lunch, Civic
Center
Boone Thursday, Oct. 19, Reception, Broyhill
Center / ASU
S. Pines / Pinehurst Monday, Oct. 23, Reception,
Pine Needles Resort
Burlington Monday, Oct. 23, Lunch, Elon College
Fayetteville Monday, Nov. 6, Lunch, Fayetteville
Tech CC
Wilmington Monday, Nov. 6, Reception, Hilton
Hosts for the Fall Area Meetings
Please join us in thanking
all of the many fine companies listed below who
will serve as hosts of the Fall Area Meetings in
their towns. This means they pick up the check!
Their loyalty and support of NCCBI is very much
appreciated. Thank you!
ASHEBORO
Asheboro Elastics Corp.
First National Bank
Klaussner Furniture Industries
B.B. Walker Co.
Gavin, Cox, Pugh, Etheridge & Wilhoit
ASHEVILLE
The Biltmore Co.
Roberts & Stevens, PA
Wilma Sherrill, NC House 51st District
Biltmore Farms Inc.
BOONE
Avery County Bank
Elk River-Development Corp.
Grandfather Mountain Inc.
Lowe's Companies Inc.
Walker College of Business, ASU
Tweetsie Railroad
CHARLOTTE
Allvac
KPMG
Bell South
Carolina Tractor
Charlotte Pipe and Foundry Co.
Duke Power Co.
Pricewaterhouse Coopers, LLP
Cummins Atlantic Inc.
Lincoln Harris
First Union-Mid Atlantic
Charlotte Hardwood Center
Palmer & Cay of NC Inc.
Southern Shows
CONCORD
Philip Morris
ELIZABETH CITY
City Beverage Co.
J.W. Jones Lumber .
W.W. Owens & Sons
Wachovia Bank
ELON COLLEGE
Bank of America
Burlington Industries Inc.
Cafe Concepts
Chandler Concrete Co. Inc.
Elon College Love School of Business
Gilliam Coble & Moser LLP
Glen Raven Mills Inc.
Holt Hosiery Mills Inc.
Laboratory Corp. of America
Leath McCarthy & Maynard Inc.
Thomas Stout Stuart Core & Stuart LLP
Vernon Vernon Wooten Brown Andrews & Garrett
PA
Wachovia Bank NA
Westcott Buick Pontiac Isuzo GMC
Wishart Norris Henninger & Pittman PA
FAYETTEVILLE
Fayetteville Publishing Co.
Tom J. Keith & Associates Inc.
Kelly-Springfield Tire Co.
The Lundy Packing Co.
GASTONIA
A.B. Carter Inc.
First Gaston Bank
Gaston Federal
GREENSBORO
Guilford Mills
Lorillard Tobacco Co.
Miller Brewing Co.
U.S. Trust Co.
U.S. Label Corp.
United Guaranty Corp.
GREENVILLE
Catalytica Pharmaceuticals
The Daily Reflector
DIMON International Inc.
Dixon, Doub & Conner
East Carolina University
Grady-White Boats Inc.
Pitt County Memorial Hospital
HICKORY
Alex Lee Inc.
Bank of Granite
Bernhardt Furniture Co.
Century Furniture Industries
Corning Cable Systems
Hickory Springs Manufacturing Co.
Shurtape Technologies Inc.
Jack G. Suddreth
HIGH POINT
B & C Associates Inc.
Classic Gallery Inc.
High Point Bank & Trust Co.
North State Telephone Co.
Phillips Interests
KINSTON
Domestic Industries
Group III Management Inc.
T.A. Loving Co.
Mount Olive Pickle Co. Inc.
Seegars Fence Co.
NEW BERN
Amital Spinning Corp.
Kenneth Morris Insurance
Stallings & Thomas Insurance Service
Ward and Smith, P.A.
PINEHURST/SOUTHERN PINES
Century Associates of NC
Charles Craft Inc.
George W. Little & Associates
Hobbs, Upchurch and Associates
Pine Needles Lodge & Golf Club
TRIANGLE
AT&T
BellSouth
Cherokee Investment Partners
First Citizens Bank
Golden Corral Corp.
Gregory Poole Equipment Co.
Glaxo Wellcome
Nortel
Sprint
ROCKY MOUNT
BB&T
Bridgestone Firestone
Centura Bank
Dove-Knight and Whitehurst
Standard Commercial Corp.
Stephenson Millwork Co.
SALISBURY
Carolina Beverage Corp.
Farmers & Merchants Bank
Fisher Harriss Development Co.
Food Lion Inc.
Hedrick Industries
Rowan Investment Co. Inc.
Wagoner Construction
STATESVILLE
Energy/United
Piedmont Bank
Pope McMillan,Kutteh,Simon & Privette
Greater Statesville Chamber of Commerce
Greater Statesville Development Corp.
Sunstates Leasing Corp.
WILMINGTON
Boney Architects Inc.
Miller Building Corp.
RSM McGladrey Inc.
Wells Automotive Inc.
Woodbury and Co.
WINSTON- SALEM
BB&T
Alex Brown & Sons
T.W. Garner Food Co.
Kilpatrick Stockton
Novant Health Inc.
Salem Academy and College
Sara Lee Corp.
Wachovia Bank of N.C., N.A.
Womble Carlyle Sandridge Rice
North Carolina Leaps 12 Spots in
Average Teacher Salaries
North Carolina's 77,486 classroom teachers earned
an average $36,883 in the 1998-99 year, according
to an annual report by the American Federation of
Teachers (AFT). That ranks the state 26th among
the states and is up markedly from the $33,123
they earned the previous year when the state
ranked 38th in the nation, according to the
report.
The latest figures include two years of North
Carolina's four-year plan to raise teacher
salaries to the national average. Teachers
received a 6.5 percent pay raise last year that
isn't included in the AFT report. They are to
receive another 6.5 percent raise in the coming
year under the budget approved recently by the
General Assembly.
In fact, North Carolina reported the highest
average salary increase for 1998-99 among the 50
states, at 11.3 percent, rising from a rank of
37th to 26th nationally. In 1996-97, teachers in
North Carolina on average earned $31,167, placing
them 43rd in the nation in pay. Salaries rose to
$33,129 on average in 1997-98, ranking the state
37th. The $36,883 they earned on average in
1998-99 moved the state to the 26th spot.
Over that three-year period, teacher salaries in
North Carolina rose 18.3 percent, by far the
largest percentage increase in the nation. Only
four other states posted double-digit percentage
increases in teach pay over the period -- the
District of Columbia at 16.5 percent, Hawaii at
13.7 percent, Louisiana at 10.2 percent and
Alabama at 10.0 percent, according to AFT
figures.
Over the 10-year period from 1988-89 to 1998-99,
average teacher pay in North Carolina rose from
$25,650 to $36,883, a 43.8% increase.
According to the AFT study, the 1998-99 average
beginning teacher salary was $26,639, up 3.6
percent from the previous year ($25,708.) The
three states with the highest beginning salaries
were Alaska ($32,884), Connecticut ($31,391), and
New York ($30,808). The three states with the
lowest beginning salaries were Arkansas
($21,273), Idaho ($20,814), and North Dakota
($19,136).
The 1998-99 average national teacher salary was
$40,574, after working an average of 16.2 years,
up 3.3 percent from the previous year ($39,278.)
The three states with the highest average
salaries were New Jersey ($51,692), Connecticut
($50,277), and New York ($49,686.) The three
states with the lowest average salaries were
Mississippi ($29,550), North Dakota ($29,002),
and South Dakota ($28,386).
Design for State’s Commemorative
Coin Chosen
The N.C. Commemorative Coin Committee
has chosen an engraving of the famous picture of
the Wright Brothers first flight (pictured at
left) as the scene to be portrayed on the North
Carolina commemorative quarter that will be
produced by the U.S. Mint next year. The
committee chose the Wright Brothers picture over
other two designs featuring scenes of the Cape
Hatteras Lighthouse. Hundreds of millions of
North Carolina coins will circulate after release
in 2001. This project is in response to the Fifty
States Commemorative Coin Program Act, which
authorizes the U.S. Treasury to issue a series of
circulating quarters whose reverse side will
represent each of the 50 states. The coins are
issued in the order which the states ratified the
Constitution or were admitted to the Union.
Pending final approval by the Mint, the North
Carolina Quarter will be ready to release in
March 2001, the twelfth of 50 to be issued
between 1999-2007.
Elections Board Narrowly Rejects New
Primary in Durham County
The State Board of Elections on
Wednesday fell one vote shy of a supermajority
needed to order a new Democratic primary in the
three-seat 23rd House District in Durham County,
a decision that seals the narrow defeat of
veteran state Rep. George Miller (D-Durham).
Three elections board members were in favor of
holding a new election, but under state law four
votes were necessary. Miller (left) lost by 1,352
votes to former City Council member Paul Miller
during primary voting that was called into doubt
when several irregularities were discovered,
including the fast that about 600 voters had been
improperly moved into or out of the district. The
executive director of the Durham County Board of
Elections subsequently was fired. Rep. Miller
said he hadn't yet decided whether to challenge
the decision in court. The State Board of
Elections also voted unanimously to conduct a
hearing at which the members of the local board
in Durham County will show cause why they should
not be removed from office. The two other 23rd
District incumbents, Reps. Paul Luebke and Mickey
Michaux, were renominated in the primary. They
and Paul Miller face opposition from two
Libertarian candidates in November. State Board
of Elections Chairman Larry Leake and Rose
Vaughan Williams, both Democrats, and Republican
June Youngblood voted to hold a new election.
Democrat Faiger Blackwell and Republican Dorothy
Presser voted no.
Names in the News
* William A. Long, the president and CEO of
Piedmont Bank in Statesville, has been named to
the NCCBI Board of Directors to complete an
unexpired term.
* Daniel B. "Ben" Berry of Elizabeth
City was named Economic Development Ally of the
Year by the N.C. Economic Developers Association.
Berry was cited for his work in promoting the
four-laning of US Highway 17 from Norfolk to the
North Carolina line and in bringing natural gas
to Northeastern North Carolina. Berry is
president and CEO of Gateway Bank in Elizabeth
City. He also serves as a board member of North
Carolina's Northeast Partnership and chairman of
the partnership's Economic Development Advisory
Committee.
* Ed Turlington, deputy manager of Bill Bradley's
unsuccessful presidential campaign, has joined
the Raleigh office of the Brooks, Pierce,
McLendon, Humphry & Leonard law firm. He will
specialize in communications and technology law
for the firm, which has also has offices in
Greensboro. Turlington, a former state Democratic
Party official, plans to help Democratic
gubernatorial nominee Mike Easley, Vice President
Al Gore and state Supreme Court Chief Justice
Henry Frye this fall. Turlington worked as Gov.
Jim Hunt's executive assistant before going to
work for Bradley.
* Abdul Sm Rasheed, president of the N.C.
Community Development Initiative since 1993, has
been named a Fannie Mae Foundation Fellow at
Harvard University's John F. Kennedy School of
Government. Rasheed is one of 20 leaders in
affordable housing efforts who will attend the
school's program for state and local government
executives, an intensive three-week course
designed to prepare them for increased
responsibilities, stimulate interest in new ideas
and techniques and develop relationships among
public-sector officials around the country.
* The National Federation of Independent Business
presented 12 legislators, all Republicans, with
its Guardian of Small Business Awards for their
voting records on issues of concern to small
business owners. They are Reps. Billy Creech
(R-Johnston), Leo Daughtry (R-Johnston), Michael
Decker (R-Forsyth), Theresa Esposito (R-Forsyth),
Charlotte Gardner (R-Rowan), Danny McComas (R-New
Hanover), David Miner (R-Wake), Richard Morgan
(R-Moore), Art Pope (R-Wake) and Connie Wilson
(R-Mecklenburg), and Sens. Virginia Foxx
(R-Watauga), and Bob Rucho (R-Mecklenburg).
* N.C. Central University Chancellor Julius
Chambers announced his retirement, effective next
June. Chambers became chancellor in 1993 and said
then he intended to remain only three years. He
said he will return to Charlotte and become
involved in the law firm he founded.
* Dave Phillips, the High Point business leader
and former state Commerce Secretary, was
appointed to a three-year term on the Smithsonian
Institution's board of directors
THIS IS THE END OF THE JULY 20 BULLETIN
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