April showers ... of bills

The deadline for filing bills in the House brought a final deluge of bills. There are now more than 1,800 bills introduced on the House side this session and more than 1,500 in the Senate. (House members may still introduce legislation affection finance or appropriations.) We are still in the process of analyzing these latest bills, some of which would mandate new responsibilities for cities and towns and some of which would restrict long-standing authority. Below are a few of the subject areas.

Economic Development

HB 1791 – Notice/Clawbacks for Local Incentives , sponsored by Reps. Paul Luebke and Jennifer Weiss, would require a city or county to hold a public hearing before approving any expenditure, appropriation or agreement for aiding and encouraging the location of industries. The public hearing notice would have to describe any agreement that would provide grants to a private enterprise, how long the agreement would be in effect, the estimated costs of the agreement and the anticipated benefit to the public. The proposal includes “clawback” provisions requiring the return of public money if the private enterprise does not meet its responsibilities under the agreement. Reps. Luebke and Weiss also introduced HB 1663 – Confidentiality Agreements Void , which states that economic development confidentiality agreements that restrict the ability of elected officials to communicate with the public are contrary to public policy. The bill provides that such agreements do not apply to elected officials acting in their official capacity or those who were elected officials at the time the agreement was signed. Both of these bills probably are the result of the recent incentives given to Google and prior to that, Dell, to locate facilities in North Carolina .

Public Records

Rep. George Cleveland introduced HB 1439 – Misdemeanor/Not Produce Public Records to make it a Class 2 misdemeanor for a records custodian to violate the Public Records Act provision that requires the custodian to permit public records to be examined at reasonable times and to furnish copies as promptly as possible. The League cannot support a proposal that would make a town clerk or other local employee a criminal based on an honest mistake as to which records are required to be released.

Annexation

Two more annexation bills were introduced this week, and annexation opponents continue to lobby very hard to restrict this municipal authority. Please continue to work with your legislators to discuss the importance of retaining annexation authority.

HB 1495 – County Approval of Involuntary Annexation , introduced by Rep. Joe Boylan, would require county boards of commissioners to approve city-initiated annexations. The League opposes this bill. Reps. Rick Glazier, Nelson Dollar, and Larry Brown introduced HB 1608 – Annexation Laws and Practice Study , which would create a commission to study, among other things, “the balance of the rights of those proposed for annexation with the responsibility to provide urban services” and “the lessened need for annexation in light of county provision of services.”

Municipal Telecommunications Services

With court rulings that uphold municipal authority and a few cities beginning to provide communications services, we now see the introduction of HB 1587 – The Local Government Fair Competition Act . This bill would place significant new restrictions and requirements on cities seeking to provide communications services, defined as cable, telephone or telegraph, electronic voice, data, audio or video transmission and Internet access service. Among the restrictions is a requirement that the city hold a special election to seek voter approval for the proposed communication service. A city could issue revenue bonds to finance the service but no general fund or public enterprise fund monies could be used to finance these bonds. A city would have to meet specific operating, regulatory, and financing restrictions and pay liability insurance equal to or greater that the state average market rate for private liability insurance for communications providers. Immunity from North Carolina antitrust laws would not apply to actions of the city related to the provision of the communications service, except as required by federal law.

Labor Unions

More bills to lift restrictions on collective bargaining with public employee labor unions were filed. Reps. Dan Blue, Lorene Coates, Bruce Goforth and Larry Brown are sponsors of HB 1583 – Restore Contract Rights to State and Local Entities. It would repeal the provision that prohibits collective bargaining between local governments and public employee groups or unions. It would also repeal provisions of state statutes that allow payroll deduction of association/union dues only if the union does not engage in collective bargaining. HB 1584 – Public Safety Employer/Employee Cooperation Act , sponsored by Rep. Blue, would allow formation of public safety unions and when the union represents more than 50 percent of the non-supervisory employees, it may lobby for members, be present when members are interrogated, meet with the employer's leadership and enter into a memorandum of understanding. HB 1615 – Firefighter/EMS Payroll Deductions , introduced by Reps. Paul Luebke and Annie Mobley, would require cities and counties to make make payroll deductions for union dues upon the request of a firefighter or EMS employee.

The League supports fair and equitable treatment of public safety officers and all municipal employees, but opposes bills which would, in effect, force collective bargaining on municipal governments.

Local Government Ethics

Under HB 1574 – Extend Ethics Law to City/County Officials , introduced this week by Rep. Cary Allred, the definition of “public servant” would be extended to include municipal and county elected officials, municipal and county managers, municipal and county clerks, municipal and county attorneys, and municipal and county finance officers. These local officials would be subject to the provisions of the State Government Ethics Act, including provisions on acceptance of gifts, disclosure of assets and other requirements.

There were many other bills of interest introduced this week. Look for more in subsequent Bulletins .

New legislator seated

Floyd McKissick Jr., a Durham Democrat, has been appointed to finish the term of the late Sen. Jeanne Lucas. Sen. McKissick is an attorney and former Durham city council member. Sen. Lucas passed away in March, following a distinguished Senate career that focused on improving access to health care and reducing disparities in the quality of public education.

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.

Annexation

Bill:   HB 1580 - MUNICIPAL DEANNEXATION

Sponsors:   Starnes (R87)

Status:   04/18/2007 – House Committee On Rules, Calendar, and Operations of the House

Establishes a statutory process for a municipality to deannex by ordinance any area of 300 acres or less upon presentation to the governing board of a petition signed by the owners of all the real property located within the area.

Environment

Bill:   HB 1611 - STORMWATER REQUIREMENTS' COST TO COUNTY/CITY

Sponsors:   McElraft (R13)

Status:   04/19/2007 – House Committee On Environment and Natural Resources

Requires the EMC to prepare a fiscal note to: (1) a county in which development in the unincorporated areas is subject to certain post-construction stormwater standards and (2) a municipality that the EMC identifies as a candidate for designation as a regulated entity under Phase II stormwater.

Bill:   HB 1628 - COASTAL HAZARDS DISCLOSURE

Sponsors:   Harrison (D57)

Status:   04/19/2007 – House Committee On Environment and Natural Resources

Requires disclosure of coastal hazards to prospective purchasers of coastal properties.

Bill:   HB 1820 - STORMWATER CONTROL FEES

Sponsors:   Lucas, M. (D42); Dickson (D44); Glazier (D45)

Status:   04/19/2007 – House Committee On Finance

Amends city stormwater management authority [G.S. 160A-459(a)] to specify that the city may establish and revise, in accordance with G.S. 160A-314 (public enterprise) schedules of rates, fees, charges, and penalties for the operation and enforcement of a stormwater control or a stormwater management ordinance. Makes similar change for counties.

Bill:   HB 1832 - NO MINING SAND FROM TIDAL INLET/DELTA

Sponsors:   Harrison (D57)

Status:   04/19/2007 – House Committee On Commerce, Small Business and Entrepreneurship

Prohibits the mining of sand from a tidal inlet or an associated tidal delta, except for the purpose of maintaining existing navigational channels, and sand dredged during the opening of a new navigational channel shall be used to close the old navigational channel.

Finance and Taxation

Bill:   HB1605 - SALES TAX REFUND REFORM ACT/REDUCE COR. RATE

Sponsors:   Folwell (R74)

Status:   04/19/2007 – House Committee On Finance

Effective July 1, 2007, caps the sales tax refund allowed to nonprofit entities for a 12-month period to 100% of the first $1 million requested and 25% of the amount requested that exceeds $1 million. Reduces the corporate income tax rates effective for taxable years beginning on or after January 1, 2008.

Bill:   HB 1716 - STATE TO RETAIN CUSTODY/FORFEITED PROPERTY

Sponsors:   Glazier (D45); Love (D51)

Status:   04/19/2007 – House Committee On Judiciary II

Provides that when a law enforcement agency seizes property, including drug raids or other law enforcement activities to enforce the state's controlled substances laws, the agency must retain custody of the property on behalf of the state and may not request the federal Drug Enforcement Administration or any other federal agency to adopt the seizure, or otherwise agree to the transfer of the seized property to a federal agency, without specific authorization of either the senior resident superior court judge or the chief district court judge in the district where the seizure occurred. The judge may not authorize a transfer to a federal agency unless the law enforcement agency shows that the seizure in fact was pursuant to a joint local-federal enforcement action in which the federal agency took the dominant role. The purpose of the provision is to ensure that public schools receive the proceeds.

Bill:   HB 1740 - SCHOOL BOARD FISCAL ACCOUNTABILITY ACT

Sponsors:   Johnson (R83); Glazier (D45); Jones, Earl (D60); England (D112)

Status:   04/19/2007 – House Committee On Education

Give counties the option of granting taxing authority to local elected school boards. Also requires counties to share a portion of their sales taxes with school boards based on the ad valorem method (the municipal share would not be affected).

General Government

Bill:   HB 1613 - LOCAL EMPLOYMENT DISCRIM. ORDINANCES

Sponsors:   Adams (D58); Luebke (D30); Wilkins (D55); Hall, L. (D29)

Status:   04/19/2007 – House Committee On Commerce, Small Business and Entrepreneurship

Authorizes cities and counties to adopt ordinances to establish or reestablish programs to prohibit discrimination in employment or otherwise regulate trade and labor. Authorizes the levy of property taxes to support such programs.

Bill:   HB 1704 - ALLOW PREPAID GAS PURCHASE ORDINANCE

Sponsors:   Love (D51)

Status:   04/19/2007 – House Committee On Transportation

Allows cities and counties to adopt ordinances requiring prepayment of retail gas purchases.

Personnel

Bill:   HB 1622 - WORKERS' COMP/REDUCE THRESHOLD TO ONE WORKER

Sponsors:   Goodwin (D66)

Status:   04/19/2007 – House Committee On Commerce, Small Business and Entrepreneurship

Reduces from 3 to 1 the threshold number of employees for purposes of the Workers' Compensation Act.

Planning and Zoning

Bill:   HB 1651 - STATEWIDE SUBDIVISION CHANGES

Sponsors:   Ross (D38)

Status:   04/19/2007 – House Committee On Commerce, Small Business and Entrepreneurship

Amends the definition of a subdivision to provide that the exemption applicable to the combination or recombination of portions of previously subdivided and recorded lots does not apply to lots that have existed only on paper or that have previously been effectively combined into a single parcel.

Transportation

Bill:   HB 1576 - COORDINATED TRAFFIC SIGNALS/REDUCE ENERGY USE

Sponsors:   Allred (R64)

Status:   04/18/2007 – House Committee On Transportation

Requires municipalities and DOT to coordinate traffic signal patterns to reduce the consumption of energy.