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Bulletin #5

February 23, 2007

 

Governor Easley calls for low-income tax cut and college aid plan

Bills addressing municipal advocacy priorities
  Gang prevention
  Clean water bonds

Bills related to core principles
  Streamlined sales tax
  ETJ voting
  More anti-annexation bills
  Open meetings notice

Governor Mike Easley delivered his fourth "State of the State" address to the General Assembly Monday evening and delivered his 2007-08 budget proposal to lawmakers on Thursday. He called for eliminating the state income tax for nearly 550,000 low-income taxpayers and cutting in half the income stax for more than 600,000 additional taxpayers.

The Governor's budget would keep in place the tax increases due to expire at the end of this fiscal year — the one-quarter cent state sales tax and the state income tax surcharge on high-income taxpayers.

No additional transportation programs or significant new funding for transportation was proposed in the budget. For next two fiscal years, Easley proposed that the amount of Highway Trust Fund money transferred to the General Fund go back up to $170 million. He said that transfer is intended to replace vehicle sales tax revenue that previously went to the General Fund. The amount of money transferred had been reduced for FY 2006-07.  He proposed more than $1 billion in state bonds for water and sewer infrastructure, additional prisons, and state building projects.

The proposal calls for expansion of the Learn and Earn high schools where high school students take college courses at high school and earn two years of college credit or an associate's degree with one year of post-high school study. His EARN scholarship initiative would provide financial assistance to students from low- and moderate-income families. The new financial aid program would combine a two-year state grant with current federal assistance that would replace the need for loans if students work 10 hours a week to help pay for the cost of their education. The budget includes $150 million for the next two years for this program. Students completing the Learn and Earn program with two years of college credit then could finish their four-year degree at a state university debt-free.

Under the Governor's proposal, teachers and community college faculty would receive, on average, five percent raises, and state employees 2.5 percent.

Other items in the Governor's proposed budget of particular interest to municipalities include the following:

  • $250 million in general obligation bonds for water and wastewater system improvements

  • $100 million in special financing for state conservation land acquisitions

  • $5.5 million as a state match to federal drinking water funds

  • $2.6 million to match EPA clean water funds

  • $15 million for the One North Carolina Fund; $5 million for the One North Carolina Small Business Innovation

  • $11.3 million for continued implementation of the VIPER communications system

  • $7 million for additional judges, prosecutors, and court staff; $3.7 million to update court technology

  • $238 million to the state's rainy day savings fund

  • $45 million to "pay back" the state retirement system for payments previously withheld

  • $100 million for repair and renovation of university and state buildings

  • $487.3 million in general obligation bonds for university system projects

  • $310 million in bonds to increase prison capacity

Bills addressing municipal advocacy priorities

Gang prevention
Reps. Mickey Michaux, Phillip Frye and Becky Carney have introduced HB 274 - Street Gang Prevention Act. Addressing this critical problem is a priority item on the League's municipal advocacy agenda. HB 274 makes participation in criminal street gang activity a specific felony offense and discharge of a firearm from an enclosure (as in a drive-by shooting) a specific felony offense. It enhances the penalties for any offense committed in association with a criminal street gang. The bill allows seizure of property used for gang activity and classifies real property used in criminal gang activities as a public nuisance that can be abated. The bill provides that local ordinances dealing with gangs and gang violence that duplicate or supplement the act are not preempted. It includes appropriations to develop a statewide gang member database and for gang violence prevention grants.  We look forward to working with the sponsors on this important issue.

Clean water bonds

SB 208-Clean Water Act of 2007 has been introduced in the Senate by Sen. Walter Dalton.  It authorizes a referendum to approve $500 million in general obli-gation bonds for water and wastewater purposes.  Fifty percent of bond proceeds would be administered by the Rural Economic Development Center. The N.C. Depart-ment of Environment and Natural Resources would disburse 25 percent of the proceeds for wastewater projects in the same manner as the Clean Water State Revolving Fund and 25 percent for water projects in the same manner as funds in the Drinking Water State Revolving Fund. The League's advocacy agenda has as its highest priority legislation to provide additional funds for infrastructure needs, including both short-term funding in the form of bonds, and a long-term, permanent source of revenue. 

Bills related to core principles

Streamlined sales tax
HB 257 -- Streamlined Sales Tax Changes
, sponsored by Rep. Dewey Hill, and companion bill SB 239 - Streamlined Sales Tax Changes , sponsored by Sen. John Kerr, would amend the state's sales tax definitions to comply with the streamlined sales tax agreement and make other sales tax changes. The streamlined sales tax agreement is an agreement among various states on common definitions and other changes that make collection of sales tax on remote sales (catalog and internet) more feasible.

ETJ voting
HB 261-ETJ Voting
, introduced by Reps. Larry Brown and Joe Boylan, would allow residents of a municipality's extraterritorial planning jurisdiction to vote in municipal elections. The League opposes this bill.

More anti-annexation bills
Sen. Andrew Brock has introduced SB 214 - Annexation Referendum to restore the pre-1959 requirements that city-initiated annexations be approved by a referendum, when 15 percent of residents in the area proposed for annexation submit a petition requesting a vote. Companion bills HB 315 - Polk Annexations (Rep. Trudi Walend) and SB 255 - Polk Annexations (Sen. Tom Apodaca) would prohibit municipalities outside of Polk County from annexing any area in the county or extending extraterritorial planning jurisdiction into the county. The League opposes these bills.

Open meetings notice
Rep. George Cleveland introduced HB 311 - Notice of Special/Emergency Meetings The bill would amend the Open Meetings Law in several ways.  It would require notice of a special meeting to be posted on the public body's website (if any) in addition to the principal bulletin board and door of the meeting room, and would allow special meeting notices to be e-mailed rather than mailed or delivered to news outlets and others that have filed a written request for notice. It requires eight days (instead of 48 hours) notice of the meeting if the only newspaper that has requested notices publishes weekly. Unless disaster makes it impossible to do so, the bill requires notices of emergency meetings to state the purpose of the meeting and be posted before the meeting on the bulletin board or meeting room door, on the public body's website (if any), and sent by e-mail to persons requesting notice. The League will seek amendments to the proposal.

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.

ENVIRONMENT

Bill: SB 215 - LITTER REDUCTION ACT OF 2007
Sponsors: Berger, D. (D7)
Status: 02/20/2007 - Senate Committee On Commerce, Small Business and Entrepreneurship

Provides that every beverage container offered for sale in N.C. containing between 50 milliliters and four liters is to have a refund value of ten cents and that purchasers of these containers must pay a deposit equal to the refund value. Additionally requires that every beverage container offered for sale in NC be made of recycled or recyclable materials.

GENERAL GOVERNMENT

Bill: HB 308 - STATE CONTRACTS/ILLEGAL IMMIGRANTS
Sponsors: Cleveland (R14)
Status: 02/22/2007 - House Committee On Judiciary II
Prohibits state and local government contracts with contractors who employ illegal immigrants and requires contractors to verify and certify their employees' legal status or authorization to work in the U.S.

Bill: HB 309 - VERIFY GOVERNMENT EMPLOYEE LEGAL STATUS
Sponsors: Cleveland (R14)
Status: 02/22/2007 - House Committee On Judiciary II
Requires cities and counties to verify their employees' legal status after hiring them to work in the U.S. Contractors or subcontractors that provide employees to counties or cities via a labor or personal services contract must also do so.

LOCAL BILLS
Bill: HB 53 -
TOWN OF ORIENTAL ETJ
Sponsors: Underhill (D3)
Status: 02/13/2007 - House Committee On Local Government I

Revises existing prohibition on ETJ for towns under 1,000 in Pamlico County to allow the Town of Oriental to exercise ETJ up to one mile from the corporate limits in a described area.

Bill: HB 181 - ADD GASOLINE POWERED GOLF CARTS
Sponsors: Langdon (R28)
Status: 02/14/2007 - House Committee On Local Government I
Adds gasoline-powered golf carts to the golf carts that may be regulated in the Towns of Elizabethtown, Rose Hill, and Bladenboro.

Bill: HB 189 - ROANOKE RAPIDS PYROTECHNICS
Sponsors: Allen, L. (D49); Wray (D27); Bryant (D7)
Status: 02/15/2007 - House Committee On Local Government II
Allows the City of Roanoke Rapids to authorize the use of pyrotechnics within the corporate limits and issue permits for such use.

Bill: HB 303 - NEW BERN HISTORIC PRESERVATION
Sponsors: Wainwright (D12); Underhill (D3)

Status: 02/22/2007 - House Committee On Local Government II

Allows the City of New Bern to require a permit prior to demolition of a contributing structure within a locally designated historic district.

Bill: SB 143 - NAVASSA ZONING JURISDICTION
Sponsors: Soles (D8)

Status: 02/21/2007 - Filed in the Senate

Divests planning jurisdiction over certain property from the Town of Navassa and vests it in the County of Brunswick.

Bill: SB 223 - CHARLOTTE-MECKLENBURG POLICE JURISDICTION

Sponsors: Goodall (R35)
Status: 02/21/2007 - Filed in the Senate
Clarifies that officers of the Charlotte-Mecklenburg Police Department may arrest persons anywhere in the state for offenses committed within the department's territorial jurisdiction.

PLANNING and ZONING

Bill: SB 212 - LAND-USE PERMIT APPEALS

Sponsors: Kinnaird (D23)

Status: 02/20/2007 - Filed in the Senate

Sets out procedures for land-use permit appeals from quasi-judicial decisions, in the nature of petitions for certiorari to the superior court. Sets out criteria for deter-mining standing to appeal and provides for a petition to be filed in the county in which the matter arose. Provides for the court to decide issues based on the record unless the record is insufficient to allow appropriate determination of issues relating to (1) standing; (2) bias or conflict of interest; or (3) constitutional violations or statutory authority. In addition the court may review de novo an issue of whether the decision-making body erred in interpreting an ordinance.  Establishes guidelines for a court's determination of appropriate relief to be granted if a decision is not affirmed in whole or in part, and specifies that the court may grant injunctive relief.  Specifies that when a subdivision ordinance provides for a city council, board of commissioners, or designated planning agency to make quasi-judicial decisions regarding approval of subdivision plats, the decision is subject to review by the superior court by proceedings in the nature of certiorari pursuant to the described procedures. When the ordinance provides for only administrative or ministerial determinations as to plats, an aggrieved party may seek review by filing an action in superior court for appropriate declaratory or equitable relief.

Bill:  SB 294 - SPORT SHOOTING RANGE PROTECTION

Sponsors: Brock (R34)

Status: 02/22/2007 - Filed in the Senate

Provides that a sport shooting range that relocates due to certain circumstances is still considered to be continuously in existence since beginning operation and not to have undergone a substantial change in use.

PUBLIC SAFETY

Bill: SB 290 - AMEND SPEEDING TO ELUDE ARREST STATUTE

Sponsors: Boseman (D9)

Status: 02/22/2007 - Filed in the Senate

Requires seizure of any vehicle used to feloniously flee or feloniously attempt to elude a law enforcement officer in the performance of the officer's official duties.

RETIREMENT

Bill: HB 328 - FLEXIBLE PAYMENT/LAW ENFORCEMENT SEPARATION

Sponsors: Crawford (D32)

Status: 02/22/2007 - House Committee On Pensions and Retirement

Allows annual separation allowances for law enforcement officers to be paid beginning in the month the officer retires instead of on the last day of the month the officer retires. Directs allowances to be paid in equal installments on the employer's payroll frequency instead of in 12 equal installments on the last day of each month.

 

S. Ellis Hankins, Executive Director

Andrew L. Romanet, Jr., General Counsel

NC General Assembly Information

Main Number (Any Legislator) (919) 733-4111
Printed Bills Office
(919) 733-5648
Bill Status Desk
(919) 733-7779
Legislative Building fax
(919) 733-2599
Legislative Office Building fax (919) 733-3111

www.ncga.state.nc.us
(NC General Assembly Website)
www.nclm.org
(NC League of Municipalities Website)

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