Issues to work on in the coming weeks Legislators are grappling with thousands of bills, and the crossover deadline is May 17. While some bills are not subject to the deadline (bills involving appropriations, for example), it is hard to see how the General Assembly will be able to deal with all these bills before the deadline. Please continue to focus your attention on our municipal priorities.
Infrastructure and Medicaid cities don't need sales tax growth?? Medicaid relief legislation was filed this week in the House. HB 1424 Medicaid County Share Reduced would permanently cap county Medicaid costs at 2005-06 levels and provide additional targeted relief to counties with the highest percentage of Medicaid-eligible citizens. It is a bipartisan proposal signed by 119 members of the House. Medicaid relief is the top legislative priority for the N.C. Association of County Commissioners and we have been working with them on crafting a legislative package that will address that need as well as critical city and county infrastructure needs.
As we noted last week, a Senate proposal takes a different approach to M edicaid relief, with counties giving up half of the first one-cent local option sales tax (Article 39) and all of the first half-cent local option tax (Article 40) in exchange for the state assuming the counties' Medicaid burden. Under SB 1484 Sales Tax Medicaid Swap counties would be required to reimburse cities for the lost sales tax revenue based on 2006-07 levels. Counties could levy a new one-cent local option sales tax but would not have to share proceeds with municipalities. Our estimates show that municipalities would lose hundreds of millions of dollars in sales tax revenue under SB 1484 because reimbursements would be frozen at 2006-07 levels.
Senate Majority Leader and SB 1484 sponsor Tony Rand was quoted in the Fayetteville Observer as indicating that municipalities could withstand the freeze on a significant portion of their sales tax revenues. He was quoted as follows: Counties have to build schools, so we're just not costing the cities anything. We're keeping the cities where they are, but they don't have to build jails and schools.
We certainly support Medicaid relief as a part of an infrastructure funding package that will benefit counties, but cities must not be left by the wayside. Cities and towns also provide vital services to growing populations and have tremendous funding needs for building and maintaining municipal streets (and sometimes state system roads), water and sewer systems, stormwater systems, and other infrastructure. They also provide police and fire protection for a large portion of the populace in the state.
Please be sure to discuss this with your legislators. There is still work to do in educating them about the services you provide, your infrastructure needs, and the importance of not only maintaining the revenue streams you now receive but also providing additional, dedicated revenue sources. Remember: Don't let North Carolina crumble!
DOT bill would force cities to take streets A bill requested by the N.C. Department of Transportation would have serious repercussions for cities and towns. Currently, municipalities negotiate with DOT and reach agreements as to which streets are to be included in the state system and which are to be city-maintained. HB 1462 Municipal Street Provisions , sponsored by Rep. Nelson Cole, would remove the requirement that streets first be accepted by municipalities in order to be added to the municipal system. It also narrows the definition of those streets that will be included in the state system. The League adamantly opposes this change.
Proposal on housing inspections to be heard One of the bills requested by the Apartment Association is scheduled to be heard in Senate Commerce next week. SB 1507 - Housing Conditions/Inspections amends the inspections authority to specify that cities can only inspect for unsafe, unsanitary or otherwise hazardous conditions in residential or nonresidential buildings when there is probable cause to believe those conditions exist. The proposal would erode local ability to investigate, address and eliminate dangerous or hazardous structures, dwellings unfit for human habitation and abandoned structures for the protection of the citizenry. Please let your legislators know you oppose this idea.
Gang prevention This session the League is seeking legislation to provide new tools and funding for gang prevention. Bills to address this critical problem have been introduced in both chambers. HB 274 Street Gang Prevention Act (Reps. Mickey Michaux, Phillip Frye and Becky Carney ) and SB 1358 Street Gang Prevention Act (Sen. Malcolm Graham) would provide enhanced penalties, grant monies, and other provisions. SB 1358 is scheduled for discussion in Senate Judiciary I next week. Please call your legislators in support.
Personnel issues We reported in our last Bulletin on some of the subject areas that we expect to see action on in the next few weeks leading to the crossover deadline. This week we want to remind you that there are numerous proposals that would impact cities' ability to make decisions about personnel administration. They are summarized below.
Police officer bill of rights Companion proposals seek to mandate how local governments can discipline law enforcement employees. HB 980 and SB 980 Law Enforcement Officer Discipline establish a police officer bill of rights that would s tandardize the investigation and discipline of law enforcement officers. The bill specifies that no state or local law enforcement officer can be discharged, suspended, or demoted for disciplinary reasons except for just cause. It requires each employing agency to establish minimum procedures to be used prior to disciplinary actions that must include the right to a hearing before a fair and impartial board or hearing officer, the right to be represented at the officer's expense, the right to examine any witnesses testifying against the officer, the right to call witnesses and present evidence, and the right to have all meetings recorded. Municipal employers must maintain the ability to make basic employment decisions, consistent with the current requirements of state and federal law, and for this reason the League opposes the bill.
Pay issues Bills establishing rules for calculating overtime hours for full-time paid firefighters and emergency medical services personnel have been introduced. We are trying to determine the impact of HB 1364 and SB 963 City Firefighters/Overtime Pay.
Special retirement benefits HB 1114 and SB 1444 Law Officers' 25-Year Retirement a llow law enforcement officers to retire with unreduced benefits after 25 years of creditable service and receive the special separation allowance with 25 years service. The allowance would be administered by the Department of State Treasurer, with each employing agency paying into a fund, and officers would remain eligible even after reemployment. HB 1433 and SB 1142 Fire and Rescue Workers' Retirement extend to full-time paid firefighters and rescue squad workers the ability to retire on a deferred early retirement allowance at age 50 with 15 years service or at age 55 with five years service (currently only available to police officers). SB 1238 Career Fire and Rescue Retirement makes similar changes. SB 1409 Separation Allowance/Firefighters & EMS provides a separation allowance for career firefighters and career rescue squad workers similar to that currently provided to police officers. The allowance is calculated as 0.575% of the annual equivalent of the base rate of compensation most recently applicable to the employee for each year of creditable service. To qualify the employee must have completed 30 or more years of creditable service or have attained 55 years of age and completed five or more years of creditable service; not have become eligible for unreduced Social Security benefits; and have completed at least five years of continuous service as a career firefighter or career rescue squad worker immediately preceding a service retirement.
Workers compensation S B 990 Workers' Comp/Firefighter Occupational Disease creates a presumption that death or impairment caused by named infectious diseases, respiratory diseases, hypertension or heart disease, and named cancers is presumed to be an occupational disease suffered in the line of duty, and is covered under the workers' compensation act for firefighters employed by a local unit of government. We have not yet seen fiscal notes on this bill but we expect the costs of implementation to be substantial.
Public employee labor unions Several bills to facilitate public employee labor unions are at issue this session. SB 970 Public Safety Employer/Employee Cooperation Act would give public safety officers (firefighters and EMS personnel) the right to join or form labor organizations that do not include management. The bill allows these labor unions, when they represent more than half of the public safety officers in an agency or department, to advocate for their members concerning the terms and conditions of employment; to have a representative present during any questioning by management during an investigation that could lead to disciplinary action; to have agreements reached with employers reduced to writing; and to enforce such agreements in court. The bill also provides for treble damages and the awarding of attorneys fees in certain circumstances. SB 1543 Collective Bargaining for Government Workers similarly authorizes public employee organizations to engage in collective bargaining and requires that they be recognized as the exclusive contracting agent for employees. Employers would be required to meet and contract with the organization on wages, hours, and other conditions of employment. SB 1271 Firefighter/EMS Payroll Deductions would require employers to make payroll deductions for union dues at a firefighter or EMS worker's request. The League opposes these bills.
House budget coming soon The Appropriations subcommittees were hard at work this week. The House subcommittees have been given target dates of April 19 to finalize their recommendations on line items and April 23 for special provisions. A draft budget bill should be ready for review by the full House Appropriations Committee beginning April 30.
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: HB 1370 CLEAN WATER GRANTS General
Government Status: 04/12/2007 House Committee On Judiciary II Amends criteria under which the Joint Legislative Commission on Municipal Incorporations is prohibited from making a positive recommendation on an incorporation. Currenlty the Commission may not make a positive recommendation if the proposed incorporation is within a certain distance of another municipality of a certain population. The statute currently has an exception to the prohibition the proposed municipality is separated by a major river or other natural barrier from the nearby city, such that provision of municipal services by the nearby city to the proposed municipality is infeasible or the cost is prohibitive. The act would remove the clause regarding services so that the exception would apply if the proposed incorporation is simply separated by a major river or other natural barrier. Planning & Zoning Bill: HB 1340 AMATEUR RADIO ANTENNAS Sponsors: McComas (R19) Status: 04/09/2007 House Committee On Ways and Means Requires city and county ordinances based on health, safety, or aesthetic considerations that regulate the placement, screening, or height of the antennas or support structures of amateur radio operators to reasonably accommodate amateur radio communications and be the minimum practicable regulation necessary to accomplish the purpose of the ordinance. Prohibits cities and counties from restricting antennas or antenna support structures of amateur radio operators to heights of 90 feet or lower unless the restriction is necessary to achieve a clearly defined health, safety, or aesthetic objective. Utilities Bill: HB 1395 ELECTRIC CO-OP/ELECTRICITIES ASSIGNMENT Sponsors: Brubaker (R78); Cole (D65) Status: 04/12/2007 House Committee On Public Utilities GS 160A-331.2 (b) currently provides that during the period beginning June 1, 2005 and ending May 31, 2007, electric membership corporations and cities that own and maintain their own distribution lines shall undertake negotiations concerning future electric service within areas outside of the corporate limits and provides a mechanism for resolution of disputes if an agreement is not reached. This bill changes the dispute resolution procedure to provide that either the city or the electric membership corporation has the right to petition the Utilities Commission to issue an order that establishes services territories between the two providers. Provides an electric membership corporation or a city may petition the Commission at any time with respect to the provision of electric service within any service area not previously within the scope of a service area arising under or protected by a service area agreement filed with and approved by the Commission. Grants authority to the Commission to reassign territory and to designate territory as unassigned subject to customer choice. Provides that any assignments made by the Commission shall survive annexation of all or any part of the affected territories.
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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)
