Organization continues

Don’t let North Carolina crumble: Talking about infrastructure
Infrastructure funding proposals introduced
More anti-annexation bills
Parallel bill on property tax exemption
Bill deadlines

Other bills of interest (see bill summaries below)
  Clarify Nuisance Abatement Laws
  Clarify Oaths
  Security and Immigration Compliance
  Secret Compartments in Motor Vehicles
  ATV for Beach Driving
  Law Officer Record Clandestine Drug Labs
  Firefighter/Rescue Squad Tax Deduction

Senate committee assignments were announced this week and House committees should be announced early next week. Committee assignments signify that work can begin in earnest for this legislative session. We’ve included a list of the Senate committee leadership with this Bulletin, but don’t forget that committees and a wealth of other information is available online at www.ncleg.net.

Don’t let North Carolina crumble: Talking about infrastructure

As you talk with your legislators and citizens about the need for additional revenue sources to fund infrastructure needs, here are some facts you may find useful.

On water and sewer . . .

Majority of North Carolinians live in cities and towns.

Water and sewer spending accounts for 23 percent of total expenditures for cities and towns.

Total municipal spending on water and sewer increased by 11 percent from 2003–2005.

Cities and towns continue to incur more debt for water and sewer improvements.

Most municipal water and sewer utilities operate close to the break-even point and have very little room for future capital improvements.

Three-fourths of N.C. public utilities have water and sewer rates more than 1.5 percent of the median household income (that is, more than the generally accepted standard of affordability).

Thirty years ago, federal funding accounted for 75 percent of all new wastewater construction. Today, it is about 5 percent.

On transportation . . .

Transportation costs represent about 11% of total expenditures for all municipalities.

Largest 26 cities spent $2 billion on transportation from 2003-2005, other 522 cities spent $528 million.

Municipal transportation expenditures increased 23% from 2003-2005.

Municipal roads (miles) have increased by 34% in 10 years, state roads by 3%.

Powell Bill provides over $100 million each year to 502 municipalities.

Powell Bill allocation has increased by only 3.4% since 2003.

On average, largest 26 Powell Bill cities receive $80 million (61%), other 476 receive $49 million.

Powell Bill funds cover about 12% of largest cities’ transportation costs, 27% of other cities.

Cities spend more than 70% of Powell Bill funds each year (have to spend 100% in 10 years).

You might also find it useful to discuss rising costs. Give examples of how much a repaving project costs today and how much prices have increased. How much does construction of a thoroughfare cost? How much does it cost to replace a mile of leaking sewer pipe? When you speak of spending millions on transportation or water and sewer, exactly what do those millions buy? Specific examples will highlight the gap between available resources and needs.

Infrastructure funding proposals introduced

We saw the first of the bills seeking to address infrastructure funding needs this week, and we expect to see additional proposals throughout the session. HB 127 – Clean Water Act of 2007 (Reps. Bill Owens, William Wainwright and Bill Daughtridge) authorizes a referendum in November of 2007 on the issuance of $500 million in state general obligation bonds for clean water purposes. The proposal would divide the proceeds among the Rural Center Reserve Fund, the Clean Water State Revolving Fund, the Drinking Water State Revolving Fund, and the Department of Commerce. HB 66 – Local Option Sales Tax for Education (Reps. Doug Yongue, Linda Johnson, Earl Jones and Marvin Lucas) would allow counties to levy an additional one-half cent in local sales tax for public school capital outlay purposes, subject to a referendum. A number of local bills have also been introduced to authorize specific counties to increase the sales tax for school purposes.

Infrastructure funding is the League’s top priority this session. Our advocacy agenda states that we will seek legislation to provide additional funds for municipal infrastructure, including both short-term funding in the form of bonds and long-term permanent and dedicated sources of revenue. We look forward to the discussions on this issue.

More anti-annexation bills

In addition to those we reported last week, three new anti-annexation bills have been introduced. Reps. Charles Thomas and Bruce Goforth have introduced HB 87 – Annexation Referendum to make city-initiated annexations subject to a referendum upon petition of 20% of the voters in the proposed annexation area. It would also require that if any part of the area proposed for annexation is a subdivision, that all of the subdivision be included. They are also sponsors of HB 86 – Buncombe Annexation Referendum applying the same requirements to annexations in Buncombe County. HB 104 – Annexation Referendum (Reps. Nelson Dollar, Joe Boylan and Larry Brown) provides for a referendum on city-initiated annexations upon a 10% petition. The League opposes all of these bills, although we do not oppose additional study of the issue.

Parallel bill on property tax exemption

A companion bill to HB 39 (reported last week) has been introduced. SB 91 – Endangered Manufacturing and Jobs Act (Sen. Jim Jacumin) provides enhanced economic development incentives to manufacturers of apparel, furniture and textiles. While many of the other provisions may have merit, among the proposals is a complete exclusion from the property tax. The League’s core principles recognize that sound municipal government requires preservation and enhancement of the existing tax and revenue structure. We must oppose any portion of these bills that erodes the local property tax base.

Bill deadlines

The deadline for submitting local bills to Legislative Bill Drafting is Feb. 27 for the Senate and March 20 for the House. Deadlines for introduction of local bills are one week after each drafting deadline. The crossover deadline is May 17. By this date a bill must pass one body to remain eligible for consideration. Bills required to go to the Finance or Appropriation Committees are exempt from this deadline.

Following are some of the bills that were introduced or acted upon this week. If you need a copy of these or any other bills, please contact the Legislative Printed Bills Office at 919-733-5648 or the League office. Remember that bills and legislative calendars are now available on the Internet at http://www.ncleg.net. Please contact the League staff if you have any particular interest or concern regarding any piece of legislation.

General Government

Bill: SB 67 – CLARIFY NUISANCE ABATEMENT LAWS

Sponsors: Boseman (D9)
Status: Filed in the Senate
Amends G.S. 19-1.2(1) (declaring as nuisances certain places where lewd films are publicly exhibited) to specify that the exhibitions need only be a predominant course of business (was a predominant and regular course of business). Amends G.S. 19-1.2(6)(declaring as nuisances certain places where acts of lewdness, gambling, illegal sale or possession of drugs or alcohol, prostitution occur) to clarify that the place need not also be used for those purposes as a regular course of business.

Bill: SB 88 - CLARIFY OATHS
Sponsors: Kinnaird (D23)
Status: Filed in the Senate
Amends G.S. 11-2 to allow individuals to be sworn by placing a hand upon the Bible or any text sacred to the party's religious faith. If appropriate to the person's religious faith, the words "so help me God" may be deleted. Officials empowered to administer oaths are not required to provide sacred texts other than the Bible.

Personnel

Bill: HB 55 - SECURITY AND IMMIGRATION COMPLIANCE
Sponsors: Clary (R110)
Status: House Committee On Rules, Calendar, and Operations of the House
Among other things, requires all public employers (including local governments) to register and participate in the federal work authorization program to verify information on all new employees. Requires contractors and subcontractors who enter contracts with public employers for the physical performance of services within the state to register and participate in the program.

Public Safety

Bill: HB 90 - SECRET COMPARTMENTS IN MOTOR VEHICLES
Sponsors: Moore (R111)
Status: House Committee On Rules, Calendar, and Operations of the House
Makes false, hidden, or secret compartments in a vehicle unlawful.

Bill: HB 133 - ATV FOR BEACH DRIVING
Sponsors: Moore (R111)
Status: House Committee On Rules, Calendar, and Operations of the House
Exempts the use of all-terrain vehicles for beach driving from the requirements of all-terrain vehicle regulation.

Bill: SB 80 - LAW OFFICER RECORD CLANDESTINE DRUG LABS
Sponsors: Tillman (R29)
Status: Filed in the Senate
Requires the SBI to post a warning at the site when it determines the existence of a clandestine drug lab and to send notification letters to the property owner, the county health director, and appropriate law enforcement officers. Requires the law enforcement officer to file a copy in the office of the register of deeds and a written notice signed by the law enforcement officer advising the public that a clandestine drug lab was discovered on the property. When the local health department determines that the property has been decontaminated, the county health director is to notify the responsible party and the appropriate law enforcement officer that the decontamination process is complete. The responsible party may file a copy of the decontamination notice with the office of the register of deeds.

Retirement

Bill: HB 109 - FIREFIGHTER/RESCUE SQUAD TAX DEDUCTION
Sponsors: Wilkins (D55)
Status: House Committee On Rules, Calendar, and Operations of the House
Allows a $2,000 income tax deduction for firefighters and rescue squad workers.

SENATE COMMITTEES

Agriculture/Environment/Natural Resources
Sen. Charlie Albertson, chair
Sen. Austin Allran, vice-char
Sen. Bob Atwater, vice-chair
Sen. Janet Cowell, vice-chair
Sen. Ellie Kinnaird, vice-chair
Sen. A.B. Swindell, vice-chair
Sen. David Weinstein, vice-chair

Appropriations/Base Budget
Sen. Walter Dalton, chair
Sen. Linda Garrou, chair
Sen. Kay Hagan, chair
Sen. Charlie Albertson, vice-chair
Sen. Charlie Dannelly, vice-chair

Appropriations on Department of Transportation
Sen. Clark Jenkins, chair
Sen. R.C. Soles, vice-chair

Appropriations on Education/Higher Education
Sen. A.B. Swindell, senior chair
Sen. Julia Boseman, chair
Sen. Richard Stevens, chair

Appropriations on Education/Public Instruction
Sen. Jeanne Lucas, senior chair
Sen. Vernon Malone, chair
Sen. Joe Sam Queen, chair

Appropriations on General Government and Information Technology
Sen. Janet Cowell, chair
Sen. Katie Dorsett, chair

Appropriations on Health and Human Services
Sen. Doug Berger, chair
Sen. Bill Purcell, chair

Appropriations on Justice and Public Safety
Sen. Ellie Kinnaird, chair
Sen. John Snow, chair
Sen. Dan Clodfelter, vice-chair

Appropriations on Natural and Economic Resources
Sen. David Weinstein, chair
Sen. Charlie Albertson, vice-chair

Commerce, Small Business and Entrepreneurship
Sen. R.C. Soles, chair
Sen. David Hoyle, vice-chair
Sen. Tony Rand, vice-chair

Education/Higher Education
Sen. A.B. Swindell, chair
Sen. Julia Boseman, vice-chair
Sen. Richard Stevens, vice-chair

Education/Public Instruction
Sen. Jeanne Lucas, senior chair
Sen. Vernon Malone, chair
Sen. Joe Sam Queen, chair

Finance
Sen. Dan Clodfelter, chair
Sen. David Hoyle, chair
Sen. John Kerr, chair
Sen. Fletcher Hartsell, vice-chair
Sen. Larry Shaw, vice-chair

Finance Subcommittee on Capital and Infrastructure Financing
Sen. Dan Clodfelter, chair

Health Care
Sen. Stan Bingham, chair
Sen. Bill Purcell, chair
Sen. Katie Dorsett, vice-chair
Sen. Tony Foriest, vice-chair
Sen. James Forrester, vice-chair

Information Technology
Sen. Janet Cowell, chair
Sen. Katie Dorsett, chair

Judiciary I (Civil)
Sen. Martin Nesbitt, chair
Sen. Phil Berger, vice-chair
Sen. Dan Clodfelter, vice-chair
Sen. R.C. Soles, vice-chair

Judiciary II (Criminal)
Sen. Fletcher Hartsell, chair
Sen. Austin Allran, vice-chair
Sen. Doug Berger, vice-chair
Sen. Ed Jones, vice-chair

Mental Health/Youth Services
Sen. Bob Atwater, chair
Sen. Ellie Kinnaird, chair
Sen. Martin Nesbitt, vice-chair

Pensions, Retirement and Aging
Sen. Walter Dalton, chair
Sen. Linda Garrou, chair
Sen. Kay Hagan, chair

Rules and Operation of the Senate
Sen. Tony Rand, chair
Sen. Walter Dalton, vice-chair

State and Local Government
Sen. Don East, chair
Sen. Malcolm Graham, chair
Sen. Katie Dorsett, vice-chair

Transportation
Sen. Larry Shaw, chair
Sen. Steve Goss, vice-chair
Sen. Clark Jenkins, vice-chair

Ways and Means
Sen. Charlie Dannelly, chair
Sen. David Weinstein, vice-chair