Memorandum

To: / Jennifer Roberts, Mecklenburg County Commissioners
From: / Bill Scoggin, Chris Hollis and Daniel Baum
Date: / June 18, 2010
Re: / 2010 Short Session: Week Six Report

Overview

While the conference committee continues to negotiate the budget, substantive policy committees at the General Assembly stepped up their activity this week. Dormant legislation addressing some major policy issues came to center stage:

1) Alcohol Beverage Control Reform - During the interim, a joint study committee reviewed the State’s ABC system and provided recommendations to modernize and standardize the operations of local boards. While the legislation does not privatize the system, it implements financial and ethical standards and gives more control to the State ABC Commission. Committee hearings on companion bills have been held in both chambers, with the House legislation further along in the process.

2) 911 Funds - After years of disagreement between telecoms and local governments about the use of 911 funds, compromise legislation achieved completion this week. The compromise allows for 911 funds to be expended on more equipment for a window of two years with more restrictions later. It also expands the membership of the 911 Board to include another local government representative. The board manages the distribution of 911 funds.

3) Video Sweepstakes Ban - Late this week, the Senate addressed the controversial issue of video sweepstakes by introducing legislation to ban the activity. Video sweepstakes is similar to video poker (which was banned by statute previously, subject to pending legal challenges) but operates through the use of games with a pre-determined outcome therefore avoiding the ban. A debate over legalizing and taxing the games or banning them has been raging, with leadership in the Senate in favor a ban. It is unclear where the House stands on this issue, with the House majority caucus seemingly split on whether to regulate or ban the activity.

Next week, we expect committees to increase their pace moving legislation as the budget process tries to reach completion. If the conference committee remains on schedule, it is likely the short session will be over this time next month and perhaps earlier.

Legislative Agenda Items

1) Expand the Board of Equalization and Review - This bill was introduced three times in the Senate: S 1347 by Sen. Clodfelter; S 1367 by Sen. Dannelly; and S 1431 by Sen. Graham. Rep. Ruth Samuelson has sponsored this in the House as H 2041.

2) Allow Mecklenburg County to enter into leases of greater than 10 years for energy efficiency equipment - S 1114, which combines requests for this legislation by Chapel Hill, Carrboro, Asheville and Mecklenburg County into one bill, was amended and passed House Local Government II. The amendment applies a three year sunset to the legislation.

Additionally, Rep. Becky Carney and Rep. Ruth Samuelson have introduced this agenda item as H 2040. Sen. Malcolm Graham previously introduced this as S 1335.

3) Restore Charlotte Mecklenburg Library’s eligibility for sales tax refunds - The Revenue Laws Technical Corrections bills, S 1177 andH 1810, include this language in Section 4(a). S 1177remains in House Finance, along with H 1810.

4) Allow Mecklenburg County to maintain current EMS protocols – We are working with Secretary Cansler and DHHS to resolve this issue outside of the legislative process.

5) Allow Mecklenburg County to publish the names of delinquent taxpayers on its website - Sen. Clodfelter introduced this agenda item as S 1381, which is a public bill. In addition to this legislation, we have been directed to include this as an item for study during the interim.

Appropriations Agenda Items

1) Restore state aid to counties for DSS. This funding is not restored in the Senate’s budget.

2) Restore funding cuts to Area Mental Health and reform the distribution formula for mental health funds. The House Money Report partially restores Community Service Funds on page G-2 while the Senate Money Report fully restores the funds on page G-3.

3) Restore the per diem payment for state prisoners housed in county jails. This funding is not restored in the House, Senate or Governor’s budget. It is likely it will not be included in the conference report.

4) Restore funding for the NC AIDS Drug Assistant Program. - This is included in the House Money Report on page G-6. It’s also included in the Senate Money Report on page G-6 and in the Governor’s Recommended Budget on page 127. It will likely be included in the conference report.

5) Lottery Funds. - We continue to work with the Mecklenburg delegation and with the Association of County Commissioner to ensure the lottery distribution is maintained and funding formulas reflects the version from the House budget.

6) TANF Funds. - We’ve been in contact with members of the delegation concerning the possible loss of TANF subsidized employment funds, and will continue working through the conference committee process.

Support Agenda Items

1) Support legislation that provides incentives to local governments that develop Regional Planning Organizations. - This is included in the Senate budget on page 104. There are also two stand-alone bills H 1701 or S 1333, which are listed below.

2) Unfreeze magistrate positions to allow for the hiring of a magistrate in North Mecklenburg.

3) Support the request of the Charlotte Mecklenburg Board of Education for local flexibility regarding staff spending and the school calendar. The Senate budget authorizes LEAs to implement furloughs to balance their budgets on page 140.

Bills of Interest

New

H 80 - Rep. Josh Stein (D-Wake) - To ban the use of electronic machines and devices for sweepstakes purposes - Senate floor. This original language was stripped out of this bill in Senate Judiciary I, and amended to become legislation to ban video sweepstakes machines. It was approved by Senate Judiciary I, and is scheduled for a hearing on the Senate floor Monday June 21.

H 1659 - Rep. Paul Stam (R-Wake) - An act to amend the constitution to prohibit public condemnation of private property to convey an interest in that property for economic development - House Appropriations.

H 1691 - Rep. Roger West (R-Cherokee) - To modify the use of 911 funds - House floor. This bill was approved by House Finance this week, and was sent to the House floor.

H 1701 - Rep. Jennifer Weiss (D-Wake) - To establish the North Carolina Sustainable Communities Task Force - House Appropriations.

H 1717 - Rep. Ray Warren (D-Pitt) - An act to modernize the North Carolina Alcoholic Beverage Control System - Housefloor.This bill was approved by House State Personnel/State Government this week and was on the House floor calendar for Thursday, but was pulled due to time constraints. It is likely to be heard sometime next week.

H 1747 - Rep. Jim Crawford (D-Granville) - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - Senate Floor. This bill was approved by House Environment and was approved on the House floor; it was sent to the Senate for further review.

H 1765 - Rep. Pryor Gibson (D-Anson) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - House Finance.

H 1771 - Rep. Kelly Alexander (D-Mecklenburg) - To authorize local governments to make special assessment levy surcharges to water rates, and levy property taxes to fund the installation of water conservation systems - House Finance.

H 1866 - Rep. Becky Carney (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - House Local Government II.

H 1906 - Rep. Garland Peirce (D-Scotland) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - House Commerce.

H 1919 - Rep. Jim Gulley - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - House Finance.

H 2026 - Rep. Hugh Holliman (D-Davidson) - To Establish the North Carolina Mobility Fund within the North Carolina Highway Trust Fund - House Rules.

H 2055 - Rep. Bob England (D-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - House Insurance.

S 1112 - Sen. Don Vaughan (D-Guilford) - An act to modernize the North Carolina Alcoholic Beverage Control System - Senate Judiciary II.

S 1136 - Sen. Bob Rucho (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - House Local Government II. This bill passed Senate Transportation and the Senate floor this week. It was sent to House Local Government II after crossing over.

S 1169 - Sen. Dan Clodfelter (D-Mecklenburg) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - Senate Environment.

S 1212 - Sen. Dan Clodfelter - To repeal the Local Government Other Post-Employment Benefits (OPEB) Fund and to allow each unit of local government to establish a separate OPEB trust fund that may then be invested by the Department of State Treasurer - HouseFinance. This bill passed House Pensions and Retirement this week and was re-referred to House Finance.

S 1292 - Sen. David Hoyle - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - House Water Resources.

S 1295 - Sen. Bob Rucho - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - Senate Finance.

S 1297 - Sen. Ed Jones (D-Halifax) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - Senate Commerce.

S 1325 - Sen. Margaret Dickson (D-Cumberland) - To modify the Inventory Property Tax Deferral - Senate Finance.

S 1333 - Sen. Floyd McKissick (D-Durham) - To establish the North Carolina Sustainable Communities Task Force - Senate Appropriations.

S 1348 - Sen. Don East (R-Surry) - To give counties temporary flexibility to use school construction funds generated from the NC Education Lottery for any education purpose - Senate Appropriations.

S 1382 - Sen. Dan Clodfelter - To make various changes to the way the Judicial Department may pay expenses - Senate Judiciary I.

S 1423 - Sen. Debbie Clary (R-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - Senate Pensions and Retirement.

Old

H 402 - Rep. Martha Alexander (D-Mecklenburg) - To eliminate the requirement of an elected official recommendation for notary public applicants - Senate State and Local Government.

H 524 - Rep. Paul Luebke (D-Durham) - To modify the annexation statutes - House Finance.

H 649 - Rep. Susan Fisher (D-Buncombe) - To permit disclosure of certain tax information of local governments to the State Treasurer - Senate Clerk’s Office.

H 666 - Rep. Martha Alexander (D-Mecklenburg) - To clarify that DWI Treatment Courts are a type of Drug Treatment Court - Senate Judiciary I.

H 699 - Rep. Marian McLawhorn (D-Pitt) - To authorize all local government to give annual notice to chronic violators of their public nuisance ordinances - Senate Clerk’s Office.

H 813 - Rep. Rick Glazier (D-Cumberland) - Uniform Apportionment of Tort Responsibility - Senate Judiciary I.

H 1134 - Rep. William Wainwright (D-Craven) - The Open Government Act - Senate Judiciary I.

H 1353 - Rep. Pricey Harrison (D-Guilford) - To prohibit local ordinances that restrict the use of clotheslines - Senate Commerce.

H 1476 - Rep. Rick Glazier (D-Cumberland) - To clarify when a claimant against an entity protected by governmental immunity has an adequate remedy at law - Senate Judiciary I.

S 117 - Sen. David Hoyle (D-Gaston) - To clarify that a local government may not impose a moratorium on development approvals for the purpose of developing and adopting a new or revised development ordinance - House Commerce.

S 269 - Sen. Dan Clodfelter (D-Mecklenburg) - To establish a pilot program of speed cameras in work and school zones - House Judiciary III.

S 354 - Sen. Ellie Kinnaird (D-Orange) - To direct DHHS to adopt a policy allowing a certain income disregard under the Medicaid program - House Aging. This bill was stripped of its original language and addresses home care services.

S 386 - Sen. Dan Clodfelter (D-Mecklenburg) - To facilitate fiscal planning by requiring counties and local school administrative units to report anticipated expenditures of the Public School Building Capital Fund - House Appropriations.

S 388 - Sen. Dan Clodfelter (D-Mecklenburg) - To remove certain ARRA grants from the definition of public funds for which a credit for investing in renewable energy property is not available - SL 2010-4.

S 871 - Sen. Dan Clodfelter (D-Mecklenburg) - To clarify the calculation of the Medicaid swap hold harmless - House Appropriations.

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