No competition bill advances

The House Public Utilities Committee has approved a bill that seeks to prevent local governments from providing communications services, such as high-speed internet, telephone and cable. HB 1587 – Local Government Fair Competition Act is backed by the telecommunications industry as a way of discouraging competition from local governments. This same industry pushed for and won statewide franchising of video services last session, claiming that it was necessary to open up competition. Now, a year later, they find it to their advantage to stifle competition.

The bill places significant roadblocks and restrictions on any local government that wants to provide communications services to its citizens. Access to high-speed broadband service is critical for the future economic development of our state. The industry is not required to build out, or serve an entire community, and they have made it clear that they have no intention of investing in some rural and distressed urban areas. Local governments want to step up to the plate and provide services to their entire communities.

Mayor Bruce Rose of Wilson spoke to the committee on behalf of municipalities, noting that the citizens are tired of waiting for someone else to bring the infrastructure they need for the future. The City of Wilson has already issued $18 million in debt to build a new fiber-optic network.

The League strongly opposes HB 1587 because it seeks to undermine local authority to undertake enterprise activities and provide services to the citizens. This authority that has been upheld by the courts and, as a matter of public policy, should be allowed to continue. The proposal now goes to House Finance.

Please contact your members of the House Finance Committee:

Reps. Luebke, Gibson, Wainwright, and Weiss, chairs; Reps. Hill, Holliman, Howard, McComas, Womble, vice-chairs; Reps. Blackwood, Blust, Carney, Cotham, Cunningham, Daughtridge, Faison, Farmer-Butterfield, Folwell, Hall, J. Harrell, Jones, Lewis, McGee, Owens, Ross, Setzer, Stam, Starned, Tillis, Walend

Annexation hearing this Wednesday

The House Rules Committee will hold a public hearing on Wednesday, June 13 (5:00 – 7:00 p.m.) on the committee substitute for HB 86 – Study Municipal Annexation . This bill would authorize another study of municipal annexation authority.

We anticipate that annexation opponents will use this hearing to make their arguments that your ability to annex should be limited or eliminated. This will likely be a forum on the pros and cons of annexation. We encourage you to attend the hearing. If you are interested in speaking at the hearing, specifically talking about how annexation has benefited your community and its residents, please contact us. Speakers will be limited to two minutes and must submit requests to speak by June 12. We encourage everyone to submit brief, written statements about annexation in their communities. Comments can be submitted by June 12 to Rep. Paul Luebke, 529 Legislative Office Building, Raleigh , NC 27603 . Please send a copy of your comments to the League.

The public hearing will be held in the Auditorium of the Legislative Building on Jones Street in downtown Raleigh . If you are planning to attend the hearing, the League will hold a briefing on the issue at the Albert Coates Local Government Center at 4:00 p.m. on Wednesday, June 13, just prior to the public hearing.

Please thank KB Home

KB Home, one of America's largest home builders, has joined Partnership for North Carolina's Future, the coalition that is seeking increased state funding for schools, roads, clean water, land and water conservation, and affordable housing. The League is a founding member of this partnership, which is encouraging the General Assembly to consider additional revenue sources to fund these critical needs. KB Home operates in the Research Triangle and Charlotte areas. If you have contact with KB Home officials, please thank them for their company's support of the partnership and the effort to plan for the future of our citizens.

Cell tower preemption jumps to Finance

SB 831 – Wireless Telecommunications Facilities , a bill to preempt the authority of municipalities and counties in determining where cell towers should be located, was g iven a favorable report from Senate Commerce this week and re-referred to Senate Finance. The bill as currently written severely limits the ability of local governments to regulate the size, location and design of cell towers and other wireless facilities - including in residential districts.

Although the bill is far from acceptable, we agreed with the other interested parties to let it move forward to Finance with the understanding that negotiations between industry and local government representatives will continue. We are confident that the bill sponsor, Sen. David Hoyle, will honor that agreement.

Firefighter retirement advances

HB 1433 – Fire and Rescue Retirement p assed the House Committee on Pensions and Retirement on Wednesday and was re-referred to Appropriations. This bill would allow firefighters and EMS personnel to retire at age 55 with five years of full-time service (rather than at age 65), bringing them in line with the benefit for law enforcement officers. [However the proposal does not grant the additional benefits—separation allowance and 401(k) contribution—that law enforcement officers receive.] The fiscal analysis for the bill indicates it would cost local governments approximately $5.2 million for FY 2007-08, growing to $6.3 million for FY 2011-12.

The League opposes legislation to grant special benefits only to certain classes of employees. Among the proposals put forth this session for special retirement benefits, however, this bill is likely the least expensive.

Budget conferees begin work

A huge conference committee will seek to iron out differences between the House and Senate versions of the budget in the coming weeks. The conferees began meeting this week in appropriations subcommittees to review the differences in the proposals. Medicaid relief for counties is an issue in this year's budget, but thus far no specific plan has emerged for committee discussion.

Solid waste group status

A working group continues to negotiate on SB 1492 - Solid Waste Management Act of 2007 . Representatives of industry, state agencies, environmental groups and, of course, local governments, have had several meetings and are currently considering the sixth version of a possible committee substitute. Among the issues in contention are a $2.50 per ton state tax on solid waste disposal, increased technical standards such as double liners in sanitary landfills, permit fees, and state review of landfill location. A committee substitute for the bill is expected to be heard in the Senate Agriculture, Environment and Natural Resources Committee by the end of this month.

911 changes pass House

Legislation that would standardize all 911 monthly service charges, both wireline and wireless, at a combined level of 70 cents or less passed the House this week. HB 1755 – Coordinate Statewide Enhanced 911 System consolidates administration of the charges under a single state board. Any wireline fund balance that exists prior to the bill's effective date would be transferred to the local government's general fund, to be used for any lawful purpose. The bill proposes to hold each public safety answering point harmless at FY 2005-06 revenue levels.

Looking to 2008 – Municipal Legislative Policy Proposals

Please Submit Your Ideas Now

The League Conference will be held on October 14-16, 2007 in Fayetteville . The annual business meeting will be held on October 16, and in that meeting the membership will consider any changes to the advocacy agenda or core principles for 2008. In accordance with the League Bylaws, proposals from the membership must be submitted to the League at least 90 days in advance of the annual meeting.

Policy proposals should be sent to the League office as soon as possible, but no later than July 18, 2007. This is your policy process—please give this thoughtful consideration and participate so that the League speaks for you . These proposals will be forwarded to one of the League legislative action committees. Committee recommendations will be considered by the League Board of Directors at its August 14 meeting. Copies of the advocacy agenda and core principles recommended by the Board will be sent to all member municipalities at least 60 days before the annual meeting.

Proposals that have not been approved by the Board can be considered by the policy committees later, but will not be considered at the annual meeting, except upon the favorable vote of 3/4 of the member municipalities present and voting, pursuant to the League Bylaws. Following the annual meeting, we will inform the membership, legislators and other interested individuals and organizations about the approved advocacy agenda and core principles.