Telecom companies want to restrict local government authority to provide communications services to citizens

Last session, the telecommunications companies pushed for and won statewide franchising of video services, claiming that the local franchising process hampered competition.  That state franchising legislation imposed very little regulation and did not require companies to serve an entire community.

Now, the telecom companies are pushing HB 1587 -- Local Government Fair Competition Act, which would place significant roadblocks and restrictions on any local government that wants to provide communications services --including cable, telephone, electronic voice, data, audio or video transmission and Internet access -- to its citizens.

Access to high-speed broadband service is critical for the future economic development of our state as we attempt to replace our lost textile, tobacco, and furniture jobs.  HB 1587 will effectively prevent local governments from bringing high-speed broadband to North Carolina communities, especially to rural and distressed urban areas.  Through their opposition to build-out requirements, the industry has made it clear they have no intention of investing in such areas.

Municipalities are already subject to numerous public scrutiny and public accountability requirements for all infrastructure projects.  These new Draconian requirements are simply designed to prevent deployment of local broadband networks, whether done alone or even in partnership with the private sector.

The League opposes HB 1587 because it seeks to undermine local authority to undertake enterprise activities -- authority that has been upheld by the courts.

This bill was scheduled for discussion before the House Public Utilities Committee this week, but was not taken up.  Please call your representatives and ask them to oppose this bill.

Mixed results on unsafe buildings

The good news:  The Senate passed SB 556 --Nonresidential Building Code , which will allow cities to adopt and enforce ordinances for nonresidential buildings that fail to meet minimum standards for maintenance, sanitation and safety, as set by the governing board.  We thank Sen. John Kerr for his leadership on this bill, which is one of the League's top priority items.

The bad news:  The Senate Commerce Committee gave a favorable report to SB 1507 --Housing Conditions/Inspections, which would limit a municipality's authority to address dangerous or unsafe structures.  The bill amends local inspections authority to impose a probable cause standard for municipalities to inspect for unsafe, unsanitary or otherwise hazardous conditions in residential or nonresidential buildings.  The bill was amended in committee to provide that it will not apply to ordinances or programs adopted prior to October 1, 2007.  The amendment will at least take steps to protect the programs that are already in place, and our thanks to Sen. Katie Dorsett for offering the amendment.  However, the bill would still severely limit a city or town's ability to protect the health and welfare of its citizens, and the League continues to oppose it.  It is likely to be scheduled for a floor vote on Tuesday of next week.  Please contact your senators and ask them to oppose SB 1507 .

One union bill moves; another discussed

A bill that would require municipal employers to deduct union dues for police officers, firefighters, and emergency workers passed the Senate on second reading, but was re-referred to the Senate Judiciary I Committee before the third and final vote.  Please contact your senators, especially those on the Judiciary I Committee and ask them to oppose SB 1271 --Firefighter/EMS Payroll Deductions.  Meanwhile, HB 1583 -- Restore Contracts Rights was discussed in House Judiciary II this week. No action was taken, but we anticipate the bill will be discussed again next week.  This bill would lift the prohibition against collective bargaining with public employee unions.  The League opposes it.

Police bill of rights sent back to committee

The "police officer bill of rights," HB 980 -- Law Enforcement Officer Discipline , was re-referred to the House Judiciary I Committee, instead of being taken up on the floor.  Thank you for your hard work on this bill so far.  Please continue to voice your opposition.

Committee approves local annexation moratorium

The Senate State and Local Government Committee gave a favorable report to SB 571 -- Hoke County Moratorium , which would establish a two-year moratorium on any annexations into Hoke County by municipalities outside that county and prohibits municipalities outside the county from exercising extraterritorial jurisdiction within the county. This bill was referred to the Senate Finance Committee.  The League opposes this bill, because it would establish a dangerous precedent of local bills chipping away at statewide annexation and planning authority.

Changes made to interbasin and interconnection bills

Fees have been added to all of the bills concerning interbasin transfers ( HB 960 , SB 1360 , SB 1421 ) and interconnection of water or sewer systems ( SB 541 ).  The bills were not otherwise discussed or voted upon.  This move is intended to keep the bills eligible after the crossover deadline.

Bills move as crossover nears

With a May 24 crossover deadline, bills are moving more quickly.  Here are some of the key bills for cities and towns that passed the House or Senate this week.

SB 580 -- State Treasurer/Local OPEB Investments-- The Senate passed this bill, which would establish special trust funds for local governments to contribute to in order to fund retirement benefits other than pensions for employees.  The trust funds would be in the Office of the State Treasurer to take advantage of the Treasurer's more flexible investment powers, yielding higher rates of return.  The League has worked with the Treasurer's office and others to seek this legislation.

SB 963 -- City Firefighters/Overtime Pay, which passed the Senate this week, establishes state rules for calculation of overtime for fulltime paid firefighters and EMS workers, other than supervisors.  The bill seems to be an attempt to duplicate some of the provisions of the federal Fair Labor Standards Act in state law.  This is entirely unnecessary, and attempting to distill the complex federal regulations into state statute is rife with opportunities for error (which we have already seen in early versions of the bill) and for unintended consequences.  The League opposes this bill.

SB 490 -- Industrial Machinery-Building Code , which exempts industrial machinery -- machines and equipment used in making a product -- from the state Building Code passed the Senate.  Machines and equipment that are attached to or are a component part of buildings and part of the building general services (heating, electrical, etc.) are still covered.

SB 842 --Extend N utrient Offset Payment Sunset passed the Senate this week.  This bill would extend the law that regulates how nutrient offset payments for nitrogen are calculated until September 1, 2008.  A consultant study is underway to determine what changes, if any, should be made in nutrient payments.

Please stay tuned and remain alert for messages from the League.  We may need your quick action during crossover week.