The General
Assembly is in full spring tilt. Next Thursday is the bill introduction
deadline for non-money bills and folks are busy pitching their ideas and lining
up support.
Spring
weather in Raleigh brought with it Ag Day – celebrating North Carolina’s $100
Billion agriculture economy. “Republicans Against Marijuana
Prohibition” joined in this year which just confused everyone. Some
Republican lawmakers expressed their relief to us when a rain shower caused
“RAMP” to roll up its outdoor display and leave.
The spring
weather may also have caused the Ethics Commission to address conflicts of
interest that may arise from relationships of a private and personal nature
between lobbyists and legislators. We expect a hearing on HB
252 in the next week.
UNC
Board of Governors elections:
This week
the House and Senate elected members to the University of North Carolina Board
of Governors. The BOG is the governing body for the constituent institutions of
the University of North Carolina.
Senate
elected members are:
·
John
Fennesbresque, a Charlotte attorney
·
Lou
Bissette, an Asheville attorney
·
Frank
Grainger, a Cary businessman
·
Anna
Spangler Nelson, a Charlotte businesswoman
·
Tom
Goolsby, a Wilmington attorney and former member of the NC Senate
·
Temple
Sloan IIII, Raleigh, former CEO of General Parts, Inc.
·
Michael
Williford, a Fayetteville attorney
House
elected members are:
·
Pearl
Burris-Floyd, Dallas, NC, VP of the Greensboro Partnership
·
C.
Philip Byers, Forest City, businessman
·
Walter
Davenport, accountant from Raleigh, former member of the Board of Governors
·
Joe
Thomas Knott III, Raleigh attorney
·
John
Alex Mitchell, Durham developer
·
James
Holmes Jr., Raleigh businessman
·
David
Powers, Winston-Salem businessman (RJR)
·
Mary
Ann Maxwell, Goldsboro businesswoman
Economic
Development:
SB 305
- An Act to Provide Cost Recovery for Acquisition of Joint Municipal Power
Agency Ownership Interest in Generating Facilities. This bill is a huge
boon for the towns in eastern North Carolina that got together to build their
own power plants decades ago which ended up resulting in sky high debt payments
causing very high power bills in the region impacting households and the
ability to attract industry to the area. The bill allows Duke Energy to
purchase the plants for $1.2 billion (of the $1.8 billion outstanding debt) and
authorizes a bond to retire the remaining debt. The bill received unanimous
support in Senate Commerce Committee and awaits a hearing in the Senate Finance
Committee next week.
The
Senate on Economic Development:
On Tuesday,
Commerce Secretary John Skvarla spoke to members of the Senate Finance Committee
urging support of HB 117—NC
Competes, Governor McCrory’s economic development plan. It
increases the JDIG cap from $22.5 million to $45 million and offers tax breaks
for jet fuel and technology data centers. Skvarla and the bill got a cool
reception in the Senate with the bill being referred to the Senate Rules
Committee (read: parking lot).
Added to
the Senate skepticism regarding cash grant incentives is heightened fighting
against urban areas on behalf of rural areas (contrary to what new census
numbers told us to expect). Historically, 80% of JDIG incentives have been
going to Wake and Mecklenburg Counties. Senators argued that rural
counties desperately need more employers and that this inequity just
intensifies the divide between rural and urban areas.
The Senate
responded with their own economic development plan - SB 338
– Economic Development/Tax Modifications. The Governor and
Speaker both expressed disappointment of the Senate plan, but with 26 Senate
co-sponsors it will be hard to slow it down.
The Senate
plan would:
·
Reduce
the state’s corporate tax rate from 5% to 3% over two years (which would result
in about $500 million less in state revenue).
·
Limit
Wake, Mecklenburg, and Durham Counties to a formula tied to their percentage of
the population, which would limit them to no more than about half of the
state’s incentive money.
·
Shift
to single sales factor apportionment, which would calculate companies’ tax
liability based entirely on sales instead of factoring in payroll and property
value (estimated to cost the state $75 million by Senator Berger’s office and
$180 million by the governor’s office).
The Senate
also introduced SB 326
– Increase JDIG Program Funding – was introduced by Senator Rick
Gunn on the heels of the Senate’s economic development plan. This bill
would immediately add $5 million available to the JDIG fund to offer as
incentives in the short-term while the legislature debates the broader bill.
Senator Berger says to expect it to pass the Senate next week.
Of
Interest:
Judicial
Retirement Age
HB 205
– An act to increase the mandatory retirement age for judges and justices
of the General Court of Justice and for magistrates, and to allow judges,
justices, and magistrates to serve until the end of the calendar year in which
they attain the age of 75 – passed a House Judiciary Committee on
Wednesday. It would increase the mandatory retirement age from 72 to 75
to reflect the fact that people are living longer and healthier lives.
Sponsor Rep. Schaffer told the committee that 19 states have no mandatory
retirement age. The bill will now go to the House Committee on Pensions and
Retirement.
Oral
Chemotherapy
HB 306
– An act relating to health benefit plan coverage for orally administered
anticancer drugs – was filed Wednesday. The bill seeks to treat
oral chemotherapy the same as other forms of chemo for insurance coverage
purposes. This ball stalled in the Senate last year with all other bills that
included an “insurance mandate”.
If you’re a
bill watcher you’ll notice that Senate bills are referred to the Rules
Committee when introduced. We’re hearing that committee chairs have to request
to have a bill released to their committee for a hearing.
Next
Week:
·
We
expect to see a bill filed on behalf of LegalZoom in NC. We hear
lobbyists from the NC Bar are working for compromise legislation, but let us
know what you’re hearing.
·
A
bill will be filed to offer a driving privileges card for illegal aliens
as a public safety measure and to require them to purchase auto insurance which
they currently cannot.
·
There
is a fight brewing to increase state revenues with Sweepstakes, Lottery and
Video Lottery. The only bill we’ve seen filed is Rep. Stam’s to require the
Lottery Commission have the express permission of the General Assembly to
expand its gaming offerings. The bill was pulled from a Judiciary
Committee calendar last week when the Lottery Commission changed its position
on the bill from neutral to opposing.
·
House
and Senate Page Programs:
Bella DeVivo, Broughton High School freshman and my very own kid, will serve as
a House Page for our very own Rep. Rob Bryan! If you have a high school
student who wants to learn a little about the legislative process, and earn a
cool $150, they should apply to the page program.