Legislative Advocacy: What's New

May 24 LeagueLINC Bulletin Available

Chris Nida — Fri, 24 May 2013 14:02:20 GMT

Date: 5/24/2013

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This week's LeagueLINC Bulletin is now available. The Senate budget was the main topic of discussion at the legislature this week, and the Bulletin has all the details about how it affects cities and towns. Updates on transportation, local deannexation bills and more are also included. As always, there's no better place to find out about the issues affecting North Carolina's cities than the LeagueLINC Bulletin.

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Author: Government Affairs Team

League Analysis Of Senate Budget Available

Chris Nida — Wed, 22 May 2013 17:44:06 GMT

Date: 5/20/2013

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The Senate Appropriations Committee released its version of the State budget on Sunday, May 19. Preliminary analysis of the bill, SB 402, by the League's Governmental Affairs team can be found here. If the bill is amended in a manner that affects cities and towns, or further information about its effects become unavailable, the League will keep you informed.

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Author: Karl Knapp

May 17 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 17 May 2013 17:08:49 GMT

Date: 5/17/2013

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Pull up a chair and sit a spell to read this week's LeagueLINC Bulletin. With yesterday being the crossover deadline, it has been an intense week at the General Assembly, with a slew of bills receiving hearings, passing from one chamber to the other, and being left to die in committee. The LeagueLINC Bulletin and the League's bill tracking system remain the best way to stay on top of all the issues affecting cities across North Carolina.

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Author: Jennifer Webb

May 10 LeagueLINC Bulletin Now Available

Jennifer Webb — Thu, 09 May 2013 21:14:35 GMT

Date: 5/9/2013

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The May 10, 2013 LeagueLINC Bulletin is now available. It was an extremely busy week at the General Assembly as we approach crossover May 16. The LeagueLINC Bulletin and the League's bill tracking system remain the best way to stay on top of all the issues affecting cities across North Carolina.

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Author: Jennifer Webb

Two Local Electronic Notice Bills Approved By House Committee

Chris Nida — Wed, 08 May 2013 16:02:10 GMT

Date: 5/8/2013

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Two local bills granting certain counties and municipalities electronic notice authority were approved by the House Judiciary Subcommittee B this morning. Local electronic notice authority was chosen by League members as one of their Municipal Advocacy Goals for the 2013-14 biennium, and the League has worked with legislators on both bills approved this morning.

Both SB 287 Notice Publication by Some Local Govs and HB 504 Local Electronic Notice grant certain counties and the municipalities wholly within those counties the authority to publish legally required public notices on their own websites and through other means. Municipalities spend upwards of $4 million annually statewide purchasing advertising space in newspapers for legally required public notices, at a time when overall print newspaper readership is declining and most print readers are not looking for public notices.

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The version of HB 504 approved this morning was amended slightly to make changes not yet reflected online. The changes made added Forsyth County to the bill, and changed the bill language so that it impacts only municipalities located wholly within the counties listed.

Both SB 287 and HB 504 will next head to the House floor for consideration. As a local bill having already passed the Senate, SB 287 would become law if it were approved by the House without any changes. HB 504 would still need to be considered by the Senate if it were passed by the House. The League will continue to work with legislators on both of these bills, but please contact your Representatives as well and ask them to support both SB 287 and HB 504.

Author: Chris Nida

May 3 LeagueLINC Bulletin Now Available

Chris Nida — Fri, 03 May 2013 20:13:00 GMT

Date: 5/3/2013

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The May 3, 2013 LeagueLINC Bulletin is now available. It was another busy week at the General Assembly, and more busy weeks are likely upcoming. The LeagueLINC Bulletin and the League's bill tracking system remain the best way to stay on top of all the issues affecting cities across North Carolina. This week's Bulletin features news on the transitional hold harmless payments, regulatory reform, transportation, rental registration programs, and much, much more.

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Author: Jennifer Webb

Regulatory Reform Bill Given Initial Senate Approval

Chris Nida — Wed, 01 May 2013 20:47:26 GMT

Date: 5/1/2013

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Thank you to all of the League members who have weighed in on SB 612 Regulatory Reform Act of 2013, which was given initial approval by the N.C. Senate today. The League has been working with legislators on this legislation and reached out to its members for examples of how the bill could impact cities and towns around the state. Dozens of you responded, and the League compiled those responses and presented them to legislators, some of whom shared those examples in a robust debate over the bill on the Senate floor.

SB 612 contains a provision that would prevent municipalities from enacting any regulation that is “more stringent than” the State or federal regulation in that area. This provision applies primarily to environmental regulations, including those regulated by such agencies and commissions as the Department of Environment and Natural Resources, the Environmental Management Commission, and the Coastal Resources Commission.

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The League identified this provision of the bill as problematic for cities and towns early on and has worked with bill sponsors extensively on this legislation. In fact, the language in the current version of the bill is actually a more narrowed version of language that originally existed in the bill. Even so, this provision would set State and federal regulations as a ceiling, rather than a floor, for local regulation, and eliminate local discretion to tailor regulations to specific local circumstances.

The League reached out to its members across the state and collected examples of regulations that would be eliminated if this bill were passed in its current form. Examples shared by local governments include coastal stormwater requirements that are designed to prevent flooding and provide “bonus points” in Federal Emergency Management Agency ratings that reduce citizens’ insurance rates. Other regulations League members believe could be prohibited as a result of this legislation include, among others:

· Buffer requirements surrounding water supplies;

· Fats, oil, and grease programs;

· Pretreatment ordinances tailored to local specifications;

· Local flexibility in water shortage response plans; and

· Stormwater incentives for infill development.

SB 612 must receive one more vote in the Senate before it is given final approval. Assuming it does, it will then move to the House, where the League will continue to work with legislators to ease the unintended consequences this bill would have for cities and towns.

Author: Erin Wynia

Transportation Reform Legislation Unveiled

Chris Nida — Tue, 30 Apr 2013 19:02:10 GMT

Date: 4/30/2013

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Legislation to implement the transportation reform plan previously announced by Governor Pat McCrory was unveiled in the House Transportation Committee today. A Proposed Committee Substitute for House Bill 817 Transportation Appropriations Financing was considered and given unanimous approval by the Committee. You can view the new version of HB 817 here, and the summary of the bill by legislative staff here.

The new version of HB 817 appears to largely mirror what was previously announced by the Governor. Under the terms of the bill, transportation revenues would be divided between three categories of projects: State, Regional (consisting of paired transportation divisions), and Local (transportation divisions). Forty percent of revenues (about $6 billion) will go to Statewide projects, 40 percent to Regional projects, and 20 percent to Local. The Regional money will be assigned on a per capita basis, while the 14 transportation divisions will receive equal shares of the Local money.

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Decisions on projects will be made through a combination of data-driven criteria and local ranking. At the State level, decisions will be 100 percent based on criteria. At the Regional level, decisions will be based on a weighting of 70 percent data and 30 percent local ranking, with decisions split 50-50 at the Local level. Criteria include such possible factors as benefit-cost, congestion, economic competitiveness, safety, and more.

In addition to redirecting project funding, the bill has some additional provisions of note for municipalities. Most importantly, Powell Bill funding will now be equal to 10.4 percent of the net revenues produced by the gas tax, as opposed to a combination of 1-3/4 cents of the gas tax and a supplement from the Highway Trust Fund (see Page 16 of the bill). While legislators stated that this change is intended to hold Powell Bill distributions harmless, this will tie Powell Bill distributions more closely to the State’s gas tax and leave them more susceptible to changes in either the rate of the tax or gasoline consumption.

The legislation also includes incentives for local funding of transportation projects (see page 6 of the bill). If a local government commits funding to a project to increase its chance of being selected, once that project is authorized, the NCDOT will make available for allocation an amount equal to one-half of the local government’s funding commitment for other eligible highway projects that serve the government(s) providing funding.

Were this legislation to pass, there would still need to be a number of decisions made with regards to its implementation. To that end, the N.C. Department of Transportation has convened a working group to help implement the legislation, including selecting the data-driven criteria that will be used to make project decisions at each of the project levels and in the various areas around the state. The League is serving on this working group and will be representing the interest of all of North Carolina’s cities as part of this process. We will be soliciting input on the project selection process as we have more details, but please share any feedback you have now with Chris Nida.

We will have more information on the impact of this legislation on transportation funding in the state as further information and data is made available to us. Please let us know if you have any additional questions we can address at this time.

Author: Chris Nida

April 26 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 26 Apr 2013 14:42:25 GMT

Date: 4/26/2013

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The General Assembly is in high gear this week as legislators push forward in anticipation of the nearing crossover deadline. Cities and towns are getting involved in the process and making a difference for your hometown. The League has a recap of all the legislation in motion and details on how you can get involved in District Days! in its April 26 LeagueLINC Bulletin.

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Author: Jennifer Webb

Design Controls Bill Passes Senate Committee

Chris Nida — Tue, 23 Apr 2013 16:16:30 GMT

Date: 4/23/2013

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The Senate Commerce Committee gave a favorable report to HB 150 Zoning/Design & Aesthetic Controls Tuesday morning, sending the bill to the Senate floor. The bill previously passed in the House of Representatives and would thus become law if it is passed by the Senate and signed by Gov. Pat McCrory.

HB 150 was introduced at the request of the N.C. Homebuilders Association and would prevent cities from imposing aesthetic controls over 1- and 2-family dwellings in all zoning districts, unless these controls are agreed to by the developer. While proponents argue that these controls are an overreach by local government, cities contend that eliminating them would render local governments unable to ensure that infill development is consistent with the character of existing neighborhoods, harming both economic development efforts and the property values of existing development.

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League Director of Governmental Affairs Paul Meyer spoke at the committee hearing in opposition to HB 150. He cautioned that design controls were initially instituted to lay out specific criteria for development and help speed up project approval. In the absence of design controls, he said, municipalities will be forced to return to site-specific zoning, which could add additional delays for developers.

As noted above, HB 150 will next be considered by the full Senate. If your city utilizes design controls and would like to continue to do so, contact your Senator today and ask them to oppose the bill.

Author: Paul Meyer

ACTION ALERT: Contact U.S. Senators Regarding Marketplace Fairness Act

Chris Nida — Tue, 23 Apr 2013 19:39:59 GMT

Date: 4/23/2013

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Please see the note below from the National League of Cities regarding the Marketplace Fairness Act (S. 743), which enables states to collect the sales taxes they are already owed from online purchases. Passage of this legislation at the national level would bring in additional revenue for North Carolina municipalities that they are currently owed but unable to collect. Please contact Senators Richard Burr and Kay Hagan, thank them for voting to end debate on the Marketplace Fairness Act, and ask them to vote in favor of the Marketplace Fairness Act as is without any additional amendments. The Senate is expected to vote on this measure either tomorrow or Thursday, so the sooner you can contact them, the better. Please share this message with your elected officials and others in your municipality as you deem appropriate.

For more on the Marketplace Fairness Act, see here. Thank you for your efforts in supporting this important federal legislation.

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Dear All -

As the Senate voted last night to proceed with up to thirty hours of debate starting today on the Marketplace Fairness Act (S. 743), we ask you to reach out to your Senators to support a clean bill as introduced and not accept any amendments preempting local taxing authority. The bill allows state and local governments to compel online retailers to collect sales tax. It would close the eBay loophole. In addition, please thank those who voted with us last night.

Of real concern is the legislation in both houses of congress will be seen as a vehicle to move long-standing legislation to preempt local taxing authority (the hand that giveth also takes away). These amendments could include measures, such as the Wireless Tax Fairness Act of 2011, the End Discriminatory State Taxes for Automobile Renters Act of 2011 and the Business Activity Tax Simplification Act of 2011 that favor one industry over others relative to state and local taxes. Of course, NLC will strongly oppose any federal preemption of local government taxing authority and we ask you to do the same.

If Congress grants any one industry’s request for federally mandated tax favoritism it will set a precedent for other industries to request similar special exemptions or protections from local taxing authority. Such actions by Congress would tread dangerously into disruption of the federal, state and local structure of federalism, and cause great damage to the fiscal health of local governments – solely for the purpose of providing tax preferences to a favored industry.

Clearly, we have momentum for Senate passage this week. The fight will shift to the House where eBay’s populist appeal may have more traction. Certainly, we are pleased by President Obama’s statement of support issued yesterday.

Author: Paul Meyer

April 19, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 19 Apr 2013 01:22:18 GMT

Date: 4/19/2013

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It was another very busy week for cities and towns at the General Assembly, and the League has a recap of all the legislation in motion in its April 19 LeagueLINC Bulletin. Details are also available on District Days!, a small group opportunity for municipal officials from across the state to come to Raleigh and interact with legislators. More on this and much, much more can be found in this week's LeagueLINC Bulletin.

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Author: Jennifer Webb

Governor Announces New Transportation Funding Model

Chris Nida — Thu, 18 Apr 2013 23:26:43 GMT

Date: 4/18/2013

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Governor Pat McCrory this morning announced a new model for transportation funding in North Carolina, describing a proposed Strategic Mobility Formula that the Governor and members of his cabinet said would allow the State to undertake more transportation projects, create more jobs, and enhance North Carolina’s economic competitiveness.

The plan does not raise any additional transportation revenue and does away with the current Equity Formula used to distribute transportation dollars. In its place, the Strategic Mobility Formula would divide transportation revenues among State, Regional and Division tiers and allocate those revenues based on a combination of data-driven criteria and local input. Here is how the revenue allocation and project selection criteria break down:

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· State

o Revenues: 40 percent ($6.4 billion over 10 years)

o Project selection: 100 percent data-driven (based on such criteria as reduced travel time, project cost, big city/small town connectivity, economic competitiveness, congestion, etc.)

· Regional

o Revenues: 40 percent ($6.4 billion over 10 years), distributed among 7 regions on a per capita basis

§ Note: The 7 regions consist of paired NCDOT districts, a map of which can be found here

o Project selection: 70 percent data-driven, 30 percent local ranking (from area planning organizations)

· Division

o Remaining 20 percent of revenues ($3.2 billion over 10 years), shared equally across the 14 transportation divisions

o Project selection: 50 percent data-driven, 50 percent local ranking

Additional information from the N.C. Department of Transportation is available here, including a Fact Sheet and Frequently Asked Questions. That information notes that the Powell Bill supplement from the Highway Trust Fund will be discontinued as part of this plan, but that the total Powell Bill amounts going to municipalities will be held harmless under this new program. This change could affect the Powell Bill’s growth rate, though. It also states that local officials can influence project decisions at the statewide level “by agreeing to help fund those projects by supplementing the state funds that will be required to construct their priority projects.”

All modes of transportation would compete for funding within each tier under the proposed formula. NCDOT Secretary Tony Tata said the Strategic Mobility Formula would allow for more local input on transportation projects. He said local organizations would be able to nominate projects at all three levels (State, Regional, and Division) and that the criteria would tell where the greatest need for the money was.

Tata emphasized the jobs components of the Strategic Mobility Formula, which he said over the next 10 years would allow the state to take on 85 more transportation projects than it otherwise would have and would create over 240,000 jobs as compared to 174,000 under the current system. He noted that while the state’s population is projected to grow by 1.3 million people over the next 10 years, the state is also facing a $1.7 billion decrease in transportation revenues.

“We can no longer rely on workarounds to address statewide transportation issues,” Sec. Tata said.

The Strategic Mobility Fund would require legislative approval for it to go into effect. Both Speaker of the House Thom Tillis and Senate President Pro Tempore Phil Berger appeared at the press conference to announce the plan this morning and expressed their desire to work with the Governor to pass the plan in the General Assembly.

The League has been and will continue to be working with legislators and members of the Governor's staff on the legislation that would implement the Strategic Mobility Formula. We will have more information on this proposal in tomorrow's LeagueLINC Bulletin and as further details become available. Check back with the League's website frequently and follow the League on Twitter @LeagueLINC for the most up-to-date information available.

Author: Chris Nida

ACTION ALERT: Ask Senators to Support Local Electronic Notice Bill

Chris Nida — Wed, 17 Apr 2013 00:57:23 GMT

Date: 4/16/2013

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The Senate State and Local Government Committee today gave a favorable report to SB 287 Notice Publication by Some Local Govs. The bill, which would allow select local governments to publish legally required notices on their own websites, next heads to the Senate floor for consideration by the full chamber. Please contact your Senator and let them know of your support for SB 287.

SB 287 is a local bill applying to the cities of Greensboro and High Point, the Town of Morrisville, and Guilford County. Based on discussion in the Committee today, the version of the bill voted on also appears to add Mecklenburg County and its municipalities to the bill. After hearing comment on the bill from members of the public that included newspaper owners, the Committee voted to advance the bill.

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Electronic publication of legally required public notices was chosen by municipal officials as a League advocacy goal for the 2013-14 biennium. Municipalities spend at least $4 million annually purchasing advertisements in print newspapers, at a time when print newspaper readership is declining and many readers are not looking for legal notices. Allowing for electronic publication of these notices would save taxpayers money and streamline governments’ communication efforts.

Again, contact your Senator and let them know of your support for SB 287 and the benefit it would provide for you and your citizens. Check back with the League's website and follow the League on Twitter @LeagueLINC for updates as to the bill's progress.

Author: Chris Nida

April 12 LeagueLINC Bulletin Now Available - Inaugural District Days! A Success

Jennifer Webb — Sat, 13 Apr 2013 00:59:03 GMT

Date: 4/12/2013

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The April 12, 2013 LeagueLINC Bulletin is now available. This week's Bulletin features 'must read' information on regionalization of public utilities, tax reform, rental inspection programs and more. Details are also available on District Days!, another opportunity for municipal officials from across the state to come to Raleigh and interact with legislators. More on this and much, much more can be found in this week's LeagueLINC Bulletin.

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Author: Jennifer Webb

Bill That Would Regionalize Asheville's Water System Moves To House Floor

Chris Nida — Tue, 09 Apr 2013 22:33:48 GMT

Date: 4/9/2013

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A statewide bill written so that its only initial effect would be to transfer control of the City of Asheville’s water system to a regional entity was given a favorable report by the House Finance Committee Tuesday morning.

HB 488 Regionalization of Public Utilities provides that any public water system serving a population of greater than 120,000 that “is not operated as either a joint or regional public water system” would be transferred to a Metropolitan Water and Sewerage District. Bill sponsor Rep. Tim Moffitt presented the bill in committee and said that his understanding is that it would currently only affect the City of Asheville, Buncombe County and Henderson County.

Nevertheless, much of the debate in committee centered on the fact that the bill is a statewide bill that could possibly apply in other areas around the state. Republican and Democratic legislators alike asked questions and expressed concerns about whether a statewide bill intended primarily to address a local issue could unintentionally affect municipalities and utilities in their districts.

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Rep. Moffitt encouraged committee members to judge the bill on its merits as a statewide bill and said that HB 488 would provide a “framework” for “the orderly consolidation of public enterprises.”

Asheville city manager Gary Jackson spoke before the committee regarding the City of Asheville’s recent investment in its water system and the City’s strong recent track record in terms of jobs and economic development activity. He noted the possible precedent that could be set by the legislative transfer of a municipality’s utility to a regional system without compensation for the municipality.

The League opposes HB 488 and does not believe that a statewide bill should be used to address a local situation. Municipalities chose control over their utilities as a top advocacy goal for the 2013-14 biennium. HB 488 now moves on to the House floor, where committee members today indicated they may introduce amendments to the legislation.

Author: Chris Nida

April 5, 2013 LeagueLINC Bulletin Now Available

Chris Nida — Sat, 06 Apr 2013 00:37:49 GMT

Date: 4/5/2013

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The April 5, 2013 LeagueLINC Bulletin is now available. This week's Bulletin features news on a number of topics of interest to municipalities, including tax reform, municipal utilities, and more. Details are also available on District Days!, another opportunity for municipal officials from across the state to come to Raleigh and interact with legislators. More on this and much, much more can be found in this week's LeagueLINC Bulletin.

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Author: Jennifer Webb

Tax Reform Bill Discussed In Committee An Improvement For Cities

Chris Nida — Thu, 04 Apr 2013 03:04:54 GMT

Date: 4/3/2013

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The Senate Finance Committee on Wednesday discussed a bill proposing changes to the state’s tax system that would have a significant impact on local revenues. That impact was a major point of discussion for bill sponsors and the Committee.

The version of SB 394 Lower Tax Rates for a Stronger NC Economy discussed in committee today included two changes that will help minimize the impacts of SB 394 on cities and towns. They are a direct result of the message city officials from around the state delivered to legislators last week on Town Hall Day and in additional conversations with their Representatives and Senators. Thank you to all of you who spoke to your legislators about your concerns with SB 394, and thank you to the legislators -- particularly bill sponsors Sen. Dan Clodfelter, Sen. Fletcher Hartsell, Sen. Clark Jenkins and Sen. Wesley Meredith -- for listening and responding. Please let your legislators know that the new version of SB 394 is a significant improvement, but that cities are still asking for a hold harmless for municipalities, by jurisdiction, as part of any tax reform proposal.

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The original version of SB 394 proposed the elimination of several state-collected local revenues and changes to the local tax structure, with that revenue being replaced with an expanded sales tax base, including the application of the sales tax to electricity. A new version of the bill proposed in committee on Wednesday added additional revenue sources for municipalities. Under this version of the bill, cities would receive a distribution of a portion of the State business privilege license tax, and a different distribution formula would be used for the revenue from the local sales tax on electricity and piped natural gas. Sales tax revenue from electricity and natural gas would be returned to the county of collection, with 80 percent going to the cities in those counties to be distributed on an ad valorem basis.

Reductions in municipal revenues that were in the original version of the bill remain. Of most interest to cities are the elimination of the city distribution of the electric franchise and beer and wine taxes, the elimination of the local privilege license tax, and the reduction in the local sales tax on food from 2 percent to 1 percent. All told this amounts to an annual loss of at least $320 million for cities and towns.

Bill sponsors indicated in the Committee meeting that the intent of the legislation is to be revenue-neutral at the local level, but they said that ensuring that no municipalities face a serious revenue loss as a result of the bill has been a challenge. Fiscal analysis of the current version of the bill indicates that at full implementation it will be revenue-neutral for cities and counties in the aggregate, but no city-by-city estimates have yet been made public. Bill sponsors did indicate that if the changes to the tax code generate additional revenue for the State in the first year of implementation, the excess revenue could be used to help fill in gaps at the local level. For the fiscal analysis of the bill, presentation made in Committee today, and more, click here.

The League Government Affairs team has been working on this bill extensively on behalf of the cities of all sizes that would be affected by this proposal, and we will continue to do so. SB 394 was up solely for discussion today, and no vote was taken. Continue to check back with the League website and follow the League on Twitter at @LeagueLINC for further updates. Thank you for all of your work.

Author: Chris Nida

City Of Asheville Bills Receive Committee Approval Despite Opposition

Chris Nida — Tue, 02 Apr 2013 06:41:03 GMT

Date: 4/2/2013

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Two bills aiming to restrict the authority of the City of Asheville were given a favorable report by the House Finance Committee this morning.

HB 224 Asheville Extraterritorial Jurisdiction and Annexation mandates that the City transfer its extraterritorial jurisdiction (ETJ) area to Buncombe County, and prevents it from initiating any annexations in the future. The version of the bill passed on Tuesday would also maintain county appointments to the City’s planning board and board of adjustment, even in the absence of ETJ.

HB 252 Asheville Transfers eliminates the City’s ability to spend up to 5 percent of water utility revenues on street and sidewalk repairs done in conjunction with a water project. City of Asheville Vice Mayor Esther Manheimer addressed the Committee, citing Asheville’s recent strong jobs growth, and noting that the City of Asheville is already prohibited from charging differential water rates to customers outside its jurisdiction and from requiring annexation as a condition of providing water service to developments.

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Multiple legislators again questioned whether it was appropriate for the General Assembly to be passing legislation specifically targeting the powers of individual cities. Bill proponents cited concerns over a specific project in the City of Asheville where the associated streets improvements were more costly than the water project itself, and noted the unique history of the City of Asheville water system in explaining the need for the bill.

Passage of these bills comes on the heels of the filing of HB 488 Regionalization of Public Utilities last week. HB 488 is the long-expected legislation that would force the City of Asheville to transfer its water system to the Metropolitan Sewerage District of Buncombe County, without any compensation for the City. Municipalities' control over their own utilities and assets was chosen by League members as a top advocacy goal for the 2013-14 biennium.

Author: Chris Nida

Municipal Revenue Reduction, Sales Tax Expansion Up For Discussion Wednesday - Audio Available

Chris Nida — Wed, 03 Apr 2013 02:06:34 GMT

Date: 4/2/2013

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SB 394 Lower Tax Rates for a Stronger NC Economy has been scheduled for discussion in the Senate Finance Committee tomorrow, Wednesday, April 3, at 1 p.m. - audio is available here (544). The bill is a significant piece of tax reform legislation that would eliminate several sources of municipal revenues and replace them with an expansion of the sales tax base.

The impact of tax reform on municipalities and SB 394 were a major area of focus at last week’s Town Hall Day. The League has estimated that SB 394 would eliminate at least $320 million in existing municipal revenue statewide through a variety of changes to the state’s tax structure. They include:

Reducing the local sales tax on food from 2 percent to 1 percent;
Eliminating the State and local franchise taxes on electricity and natural gas, and subjecting sales of those items to the full state and local sales tax rate;
Eliminating all State and local business privilege license taxes, including local beer and wine privilege taxes; and
Eliminating the local distribution from beer and wine excise taxes.

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New revenue for cities would be provided through expansion of the state sales tax base to several service areas not currently taxed. However, the bill does not hold cities and towns harmless if the proposed reductions in municipal revenues are not replaced by this additional revenue.

The League's fact sheet about SB 394 that was distributed at Town Hall Day is available here. When you talk to your Representative or Senator about this bill, please ask them to commit to holding municipalities harmless from changes to their tax structure, by jurisdiction. The new revenue that is generated by this bill is not likely to be distributed equally across the state, meaning that some municipalities may see a decrease in revenue as a result of this proposal. Ask your legislators to hold municipalities harmless by jurisdiction to prevent this from happening.

As noted above, the bill is scheduled to be discussed at 1 p.m. Wednesday, April 3. The Senate Finance Committee meeting will be held in Room 544 of the Legislative Office Building – audio from that room is available here.

Author: Chris Nida

March 28 LeagueLINC Bulletin Highlights Governor's Participation in Town Hall Day

Jennifer Webb — Thu, 28 Mar 2013 16:25:12 GMT

Date: 3/28/2013

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More than 450 mayors, managers, council members, clerks and residents were in Raleigh Wednesday advocating for a stronger economic future for North Carolina hometowns. The NCLM 2013 Town Hall Day was a great success and we have captured the day's successes in this week's LeagueLINC Bulletin.

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Author: Jennifer Webb

March 22, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 22 Mar 2013 16:55:14 GMT

Date: 3/22/2013

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It was another very busy week for cities and towns at the General Assembly, and the League has a recap of all the action in its March 22 LeagueLINC Bulletin. Included are two Action Alerts for you to contact your legislators on: proposed Major Reductions to Local Revenues and a Threat to Municipal Privilege Licenses. Additionally, Town Hall Day is Wednesday, March 27. (On-site registration available.) Read all about it today and get involved.

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Author: Jennifer Webb

Media Roundup: Local Control, Budget & More

Chris Nida — Wed, 20 Mar 2013 15:08:17 GMT

Date: 3/20/2013

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As the pace of action at the General Assembly continues to increase, media around the state are picking up on items of interest to N.C. cities and towns. Below is a sampling of several articles of note. Please continue to follow along with our LeagueLINC Bulletins for a weekly round-up of all the action in Raleigh, and let us know how we can be of assistance to you. It is more important than ever that you be in regular contact with your local delegation.

Local Control

Already this week two longtime observers of North Carolina politics have penned pieces expressing concern about the General Assembly’s willingness to pass legislation taking assets and authorities from local government. Scott Mooneyham of the N.C. Insider and Rick Martinez of N.C. Spin cited similar examples, such as the Charlotte airport bill, in making their cases. Members of the General Assembly need to hear this same message from you and your citizens if we want to continue having local decisions made locally.

Mooneyham: Cities face more curbs on power

Martinez: Enough with the state’s GOP leaders meddling in local affairs

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Budget/Tax Reform

The Governor’s budget proposal was released this morning, and the League will soon have more for you on provisions that would affect municipalities. WRAL has a preview of that budget and an extensive layout of the state’s budgeting process. The Governor’s budget did not include details of a major tax reform proposal, but the News & Observer this morning provided new details on the types of services that could be taxed under an expanded sales tax base.

WRAL: McCrory’s budget likely to target education, Medicaid

N&O: Lawmakers look at adding taxes to 130 more services

Building Design Controls

Yesterday the N.C. House gave initial approval to legislation limiting city and town authority to impose design & aesthetic controls on residences within their jurisdiction. Both the News & Observer and WRAL provided coverage of the bill’s passage.

N&O: NC House OKs limits on residential standards

WRAL: House OKs limits on cities’ design rules

Author: Chris Nida

ACTION ALERT: Privilege License Elimination Proposed

Chris Nida — Wed, 20 Mar 2013 17:45:18 GMT

Date: 3/20/2013

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On Tuesday of this week, Senator Andrew Brock (R-Davie) introduced SB 363 Business Tax Reduction and Reforms, which would eliminate the ability of cities to levy privilege license taxes. The elimination would be effective for taxes imposed for fiscal years beginning on or after January 1, 2015 and would cost cities and towns a total of more than $60 million a year in revenue.

To maintain the privilege tax as a source of revenue for your city or town, it is essential that you make contact with your legislators (both House and Senate) as soon as possible to secure their commitment to oppose the elimination of the municipal privilege tax.

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Recognizing that the State law governing privilege taxes has created a structure that is difficult for cities and towns to administer and that raises concerns for taxpayers, the League has been proposing measures since 2008 to reduce the complexity and inequity of the privilege license tax while maintaining the tax as a locally controlled source of revenue that supports services to businesses and consumers.

Tax reform legislation to improve the business climate in North Carolina will be near the top of the General Assembly's agenda this year. Elimination of the local privilege tax will be considered an easy way to reduce business taxes with no consequences to the State budget.

Again, now is the time to contact your Representatives and Senators to preserve the privilege tax as a locally controlled source of revenue.

Author: Paul Meyer

Design Controls Bill Approved By House

Chris Nida — Tue, 19 Mar 2013 21:28:07 GMT

Date: 3/19/2013

Description:

Following a great deal of debate on the House floor, Representatives voted in favor of HB 150 Zoning/Design & Aesthetic Controls by a count of 94-22. The bill will receive a final vote in the House tomorrow, and if it is approved it will then head to the Senate for consideration.

HB 150 would eliminate cities' ability to impose aesthetic controls over 1- and 2-family dwellings in all zoning districts (with limited exceptions), unless these controls are agreed to by the developer. Municipal officials across the state have spoken out against the bill, saying it would undermine their ability to provide the neighborhood protections their citizens have requested and promote economic development by preserving the character of their community.

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League Director of Governmental Affairs Paul Meyer noted in a news article about the bill (see below) that the provisions eliminated by this bill allow municipalities “to maintain a focus on the vision of what a town is going to be and its own character and flair.”

Last night Wake County mayors gathered for a press conference to speak out against the bill. City of Raleigh Mayor Nancy McFarlane noted that the bill would make invalid parts of the city’s recently passed Unified Development Ordinance that was created with the input of citizens and developers.

“It really takes away the power of citizens,” McFarlane said of the bill, according to WRAL.

A number of questions about the bill were raised during the House debate, including concerns that the bill would allow homes in established neighborhoods near universities to be converted in to rooming houses. Legislators also noted that citizens in existing neighborhoods had requested and were supportive of many of the provisions that would be eliminated by this bill.

Bill proponents on multiple occasions questioned municipalities’ authority to enact these controls, citing the recent N.C. Supreme Court decision in Lanvale v. Cabarrus County. It was noted that any municipality wishing to exercise any of the authorities referenced in HB 150 may ask the General Assembly for special legislation giving them the authority to do so.

As noted above, the bill will receive a final vote in the House tomorrow and will then head to the Senate. Please continue to contact your legislators and let them know how this bill will affect your community. The impact of this bill on local communities has drawn media attention from around the state. Please see the news coverage below for more discussion on the changes HB 150 will effect in cities across North Carolina.

PlanCharlotte: Two views on bill to limit local zoning powers

Author: Chris Nida

ACTION ALERT: Contact U.S. Reps. & Sens. On Municipal Bonds, Internet Sales Tax

Chris Nida — Tue, 19 Mar 2013 21:31:26 GMT

Date: 3/19/2013

Description:

Congress could take action as soon as tomorrow on two issues of critical importance to municipal budgets – the tax exemption on municipal bonds and sales taxes on Internet purchases. Contact your U.S. Representatives and Senators now and let them know how important these issues are to your finances.

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Tax Exemption on Municipal Bonds – ACTION: Contact Senators Richard Burr and Kay Hagan now. Ask them to speak out in support of tax-exempt municipal bonds during Senate debate of the FY2014 Budget Resolution this week. Sen. Mark Begich (D-AK) is preparing a letter to President Barack Obama supporting the tax-exempt status of municipal bonds. Ask them to sign on to that letter when it becomes available. Contact your Representatives and ask them to support House Resolution 112 celebrating the importance of municipal bonds.

BACKGROUND: Since the beginning of the federal income tax in 1913, the interest on most “public purpose” general obligation and revenue bonds issued by state and local governments has been exempt from federal income taxation. Proposals have been put forth to change that as a way to reduce the federal deficit and simplify the nation’s tax code.

Tax-exempt municipal bonds are the most important tool available for financing municipal infrastructure projects. States and local governments nationwide have financed more than $1.65 trillion of infrastructure investment since 2003. Nearly $258 billion of that went toward water and sewer facilities. Almost $178 billion of that went toward roads, highways and streets.

The U.S. Senate Budget Resolution suggests the possibility of a cap on tax expenditures, which could include the exemption for interest earned on municipal bonds. The White House has proposed a 28 percent cap on the exemption, while the Simpson-Bowles Commission has recommended its elimination. Estimates have indicated that the cap would have cost North Carolina governments an additional $3.0 billion between 2003 and 2012, while the repeal of the tax-exempt status would have cost $8.5 billion over the same time period.

For more on the tax-exempt status of municipal bonds see here.

Internet Sales Tax – ACTION: Sponsors of Internet sales tax legislation, including Sen. Mike Enzi (R-WY), are planning to offer it as an amendment to the FY2014 Budget Resolution this week to show the Senate’s support for the legislation. Contact Senators Richard Burr and Kay Hagan now and ask them to support Sen. Enzi’s amendment regarding the Marketplace Fairness Act. It is critical that the amendment receive 60 votes to show the Senate’s support for this legislation.

BACKGROUND: Bipartisan legislation has been filed in both the House and the Senate (H.R. 684/S. 336) to give states and local governments the authority to collect sales taxes on remote sales, including online purchases. Estimates are that states and local governments in N.C. lost out on more than $436 million in 2012 alone by not being able to collect these taxes. The Marketplace Fairness Act is supported by a wide range of stakeholders, including the N.C. League of Municipalities, N.C. Association of County Commissioners, N.C. School Boards Association, N.C. Retail Merchants Association, and Amazon.com.

For more on this issue see here and here. Please let the League know if we can be of assistance on any of these matters.

Author: Chris Nida

March 15, 2013 LeagueLINC Bulletin Available

Chris Nida — Fri, 15 Mar 2013 15:58:22 GMT

Date: 3/15/2013

Description:

It was a busy week for cities and towns at the General Assembly, and the League has a recap of all the action in its March 15 LeagueLINC Bulletin. Included are Action Alerts for you to contact your legislators on two important issues -- building design controls and transitional hold harmless payments. Additionally, Town Hall Day is less than two weeks away and registration is closing soon, so register to be here on March 27 today.

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Author: Jennifer Webb

ACTION ALERT: HB 150 Moves To House Floor

Chris Nida — Wed, 13 Mar 2013 16:53:09 GMT

Date: 3/13/2013

Description:

HB 150 Zoning/Design & Aesthetic Controls was approved by the House Regulatory Reform Subcommittee on Local Government this morning. It now moves to the full House for consideration. This legislation would eliminate cities' ability to impose aesthetic controls over 1- and 2-family dwellings in all zoning districts (with limited exceptions), unless these controls are agreed to by the developer. Please continue to contact your Representatives and let them know how this legislation will hurt your local community.

Several city representatives addressed the committee regarding the problems this legislation would cause. Mayor Nancy McFarlane of the City of Raleigh spoke of the three-year, collaborative process to develop the City's Unified Development Ordinance, a process that included builders and developers. She also discussed the limitations the legislation would place on cities trying to ensure that infill development is consistent with that of existing development.

"We have great developers that build quality products," McFarlane said. "Is it fair to see their investment damaged because anything could be built adjacent to it?"

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Mayor Jill Swain of the Town of Huntersville noted that the Town has had design-based standards since 1996, and during that time more than 5,300 single-family residential homes had been built at a wide range of price points.

"House Bill 150 as currently written would impact negatively Huntersville's ability to protect community character, which is a fundamental responsibility of local government," Swain said. "And, it is essential for us to be able to recruit economic development opportunities that include that population that would be looking for affordable housing that we encourage."

League Director of Governmental Affairs Paul Meyer addressed many of the arguments made by proponents of the bill and noted that while there may be limited local examples of problems caused by these standards, far more cities and towns are using this authority to the benefit of their citizens and businesses, and those cities should not see this ability eliminated.

"The policy question facing this committee is whether those stories warrant a statewide elimination of the ability of cities and towns to promote a vision for local communities and provide a say for city residents and businesses in the context of aesthetics," Meyer said. "On behalf of all cities and towns acting through the League of Municipalities, we believe the answer should be no."

View today's committee video here via WRAL. Thank you to Mayors McFarlane and Swain and the many other local officials who took their time to be present in today's committee hearing. Please continue to contact your Representatives to let them know how your citizens and businesses will be hurt by this bill, and please let us know how we can help.

Author: Paul Meyer

Senate Gives Final Approval To Charlotte Airport Bill

Chris Nida — Wed, 13 Mar 2013 19:38:44 GMT

Date: 3/13/2013

Description:

The Senate on Wednesday gave its final approval to SB 81 Charlotte Regional Airport Authority, which would transfer ownership of Charlotte Douglas International Airport from the City of Charlotte to a newly-established Charlotte Regional Airport Authority.

A majority of Senators voted in favor of the bill despite pleas from some of their colleagues to delay approval of the legislation and study the issue further. Concerns had been raised about the effect the bill would have on approximately $800 million in outstanding debt for the airport. The bill sponsor, Sen. Bob Rucho, attempted to assuage those fears by producing a letter from an outside bond counsel, but some legislators remained unconvinced.

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The bill now heads to the House. Representatives have suggested in public comments that the bill will likely move more slowly there. The League opposes the bill.

Charlotte Observer

Charlotte Business Journal

WRAL

Author: Chris Nida

Bill Criminalizing Public Records/Meetings Violations Discussed

Chris Nida — Tue, 12 Mar 2013 20:01:54 GMT

Date: 3/12/2013

Description:

On Tuesday morning the Senate Judiciary I Committee discussed SB 125 Public Meetings/Records Law Violators. That legislation would make any elected or appointed official who denies access to a public record, and any member of a public elected body who violates the Open Meetings Law, guilty of a Class 3 misdemeanor. The bill was up for discussion only and was not voted on.

Senators raised a number of concerns about the bill as written. Among them were the fact that the legislation punishes any violation of the public records and open meetings laws, not only "willful" violations as many surrounding states do. Additionally, it would likely increase the cost of complying with public records requests and delay the release of public records as public employees increasingly work through their attorneys to determine that they are not in violation of the law. Thank you to Senators Tamara Barringer, Harry Brown, Pete Brunstetter, Dan Clodfelter, and Trudy Wade, among others, for raising these and other valid concerns about the bill.

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The League spoke in opposition to SB 125 during today's meeting. The League opposes the bill for the aforementioned reasons, along with the fact that the current law already provides sufficient protections for those who are wrongly denied access to public records and public meetings by entitling them to attorneys' fees. We will keep you updated as to how the legislation progresses in the future.

ACTION ALERT: HB 150 Zoning/Design & Aesthetic Controls

Chris Nida — Tue, 12 Mar 2013 20:16:42 GMT

Date: 3/12/2013

Description:

CALL YOUR LEGISLATORS TODAY AND ASK THEM TO OPPOSE H.B. 150 ZONING/DESIGN & AESTHETIC CONTROLS

Contact your legislators today regarding H.B. 150 Zoning/Design & Aesthetic Controls. The bill would eliminate cities' ability to shape the look and feel of their own community. It is currently scheduled for a hearing tomorrow (Wednesday) in the House Regulatory Reform Subcommittee on Local Government.

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The legislation would eliminate cities' ability to impose aesthetic controls over 1- and 2-family dwellings in all zoning districts (with limited exceptions), unless these controls are agreed to by the developer. Local use of these controls vary widley, but they are typically used to promote economic development by maintaining a town's unique character and increase community buy-in for new development projects.

Please contact Representatives, members of the Subcommittee on Local Government, and your delegation today to let them know of the importance of these tools to your community. Ask these legislators to oppose this anti-local community bill.

Author: Paul Meyer

House Votes In Favor Of Building Inspections Bill

Chris Nida — Tue, 12 Mar 2013 00:29:37 GMT

Date: 3/11/2013

Description:

The House this week voted in approval of HB 120 -- Building Codes: Local Consistency/Exempt Cable. The bill, which would restrict the building inspections local governments could require to those specifically listed in the N.C. Building Code and extend the Building Code revision cycle from three to six years, now heads to the Senate for consideration.

Representatives debated the bill prior to its vote on Monday and voiced several of the concerns the League has raised about the bill, including the removal of local discretion to require inspections that may be necessary and appropriate for local jurisdictions. Bill proponents cited language in the legislation that would allow cities to bring their request for additional inspections before the N.C. Building Code Council for approval, though it was noted that there is no definition of the "timely manner" in which those requests must be considered by the Building Code Council.

The bill will now move to the Senate. If you have concerns about how the bill would impact your jurisdiction, please contact your Senator.

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Author: Chris Nida

March 8, 2013 LeagueLINC Bulletin Available

Jennifer Webb — Fri, 08 Mar 2013 18:22:33 GMT

Date: 3/8/2013

Description:

Read all about this week's legislative activities that affect your hometown in the March 8 LeagueLINC Bulletin. This week's LeagueLINC Bulletin has two Action Alerts regarding building and design controls and the transitional hold harmless payment. The deadline is fast approaching for Town Hall Day registration as well. Read all about it in this week's Bulletin. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

Building Inspections Bill Given Committee Approval

Chris Nida — Wed, 06 Mar 2013 20:55:04 GMT

Date: 3/6/2013

Description:

The House Regulatory Reform Subcommittee on Local Government today voted in favor of HB 120 -- Building Inspections/Local Consistency. The bill would make several changes related to the N.C. Building Code, including limiting the residential inspections local governments could conduct to the eight specific areas referenced in the Code, and extending the revision cycle for the residential code from three years to six years.

Local inspectors have expressed concern that the bill will restrict their ability to conduct needed safety inspections that address local conditions, such as in the case of additional inspections in high wind zones along the coast and in the mountains. Any jurisdiction wishing to require local inspections beyond those specified in the Code would have to bring their request before the N.C. Building Code Council and have it individually approved.

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Proponents of the bill stressed the need for statewide code uniformity in order to simplify standards for builders doing business in multiple jurisdictions. The bill was originally set to be referred to the House Finance Committee, but indications are that it may now go directly to the House floor.

Author: Chris Nida

Boards & Commissions Bill Could Be Headed For Conference Committee

Chris Nida — Tue, 05 Mar 2013 14:19:34 GMT

Date: 3/5/2013

Description:

On Monday night the House gave final approval to its version of SB 10 – Government Reorganization and Efficiency Act. The bill, which would eliminate several boards and commissions as currently constituted and then reform those same boards – often with different membership qualifications, numbers of members, and appointing officials – differs substantially from the version that was previously passed by the Senate. As a result, if the Senate votes not to concur with the House version, the bill will be sent to conference committee in order for the two chambers to work out a compromise.

Following a great deal of action on the bill last week, no changes were made on the floor Monday night. One of the boards that would be altered by the bill is the N.C. Environmental Management Commission, which the League follows closely as part of its regulatory advocacy program. The version of the bill sent to the Senate eliminates the current seat reserved for a municipal official, but it retains one at-large appointment currently held by another municipal official.

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Author: Chris Nida

March 1, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 01 Mar 2013 18:08:22 GMT

Date: 3/1/2013

Description:

Read all about this week's legislative activities that affect your hometown in the March 1 LeagueLINC Bulletin. Be sure to read up on the building inspections-related bill and call your Representatives and Senators if the bill will impact you. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

Charlotte Airport, Deannexation Property Tax Bills Move On

Chris Nida — Wed, 27 Feb 2013 20:07:36 GMT

Date: 2/27/2013

Description:

The Senate Finance Committee today voted in favor of two bills of interest to North Carolina’s cities and towns: SB 81 – Charlotte Regional Airport Authority and SB 97 – Property Tax/Deannexation. Both bills now head to the full Senate for consideration.

SB 81 was given a favorable report by the Committee, but not before some debate. The bill would transfer ownership of Charlotte Douglas International Airport from the City of Charlotte to a newly-established Charlotte Regional Airport Authority. Questions were raised regarding control of the land surrounding the airport – an issue Asheville Regional Airport has also been facing – and the impact of the ownership transfer on outstanding revenue bonds for the airport. A representative from the City of Charlotte also spoke to the Committee and indicated that the City was prepared to conduct a study on the airport’s ownership and present the results prior to the legislature’s adjournment this year, but the bill moved forward nonetheless.

SB 97 would prevent municipalities from collecting property taxes from areas that were part of the city for less than six months and have not yet been billed for their property tax. The idea for the bill was generated by the City of Wilmington and is intended to apply only to the Monkey Junction area, which was legislatively deannexed from Wilmington during last session. However, it is a statewide bill and thus could potentially apply in other areas of the state.

The League will be tracking both of these bills as they progress through the legislature. Keep up with their progress by reading the weekly LeagueLINC Bulletin and checking in with the League’s bill tracking system.

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Author: Chris Nida

Let NCDOT Know You Wish To Review SVR Applications, Replanting Plans

Chris Nida — Fri, 22 Feb 2013 19:32:11 GMT

Date: 2/25/2013

Description:

The N.C. Department of Transportation (NCDOT) recently sent out notice of the opportunity for municipalities and local governments to comment on selective vegetation removal (SVR) applications and beautification and replanting plans.

The 2011 law relating to billboards and their regulation in North Carolina provides municipalities with the opportunity to review and comment on SVR applications within their corporate limits but adjacent to State highway right of way before they are considered by NCDOT. Any local government may review and comment on beautification and replanting plans related to outdoor advertising sites.

In order to be able to review SVR applications and replanting plans, you must let NCDOT of your desire to so. See this document for instructions on how to notify NCDOT. If you have already notified NCDOT, you do not need to do so again. You can check whether your municipality is signed up to review these plans here.

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Author: Paul Meyer

February 22, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 22 Feb 2013 18:07:13 GMT

Date: 2/22/2013

Description:

Stay up to date on legislative issues when you read the February 22 LeagueLINC Bulletin for a recap of the bills and legislative activity that involves your hometown. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

February 15, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Thu, 14 Feb 2013 20:34:19 GMT

Date: 2/15/2013

Description:

Stay up to date on legislative issues when you read the February 15 LeagueLINC Bulletin for a recap of the bills and legislative activity that involves your hometown. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

Online Sales Tax Legislation Introduced In U.S. House, Senate

Chris Nida — Fri, 15 Feb 2013 21:16:53 GMT

Date: 2/15/2013

Description:

Bipartisan legislation that would allow states to collect sales taxes on out-of-state online purchases was introduced in both the United States House of Representatives and Senate on Thursday. The Marketplace Fairness Act of 2013 (S. 336/H.R. 684) would give states the ability to require out-of-state retailers with at least $1 million in annual sales to collect sales taxes on Internet purchases.

The National League of Cities estimates that collecting sales taxes on online sales would generate $23 billion nationally for state and local governments. These are taxes that are already owed to these governments and that states and municipalities are currently collecting from businesses with physical locations within their borders.

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"During these difficult economic times, and with the potential impacts of the looming sequestration, cities will need the Marketplace Fairness Act now more than ever," NLC president and Avondale, Ariz., mayor Marie Lopez Rogers said. "It will help our cities and towns by allowing them to collect all the taxes that are owed and by providing an efficient mechanism for shoppers to pay their sales taxes."

Passage of this federal legislation would allow North Carolina's municipalities to collect sales tax revenues that they are owed and currently unable to collect. Please contact your Representatives and Senators and let them know that you support the Marketplace Fairness Act.

Read below for media coverage of the introduction of this important legislation.

Politico: Lawmakers unveil an online sales tax bill, again

Reuters: Push for online sales taxes picks up steam in Congress

Author: Chris Nida

League Petitions To Intervene In Rates Case

Chris Nida — Tue, 12 Feb 2013 19:06:34 GMT

Date: 2/13/2013

Description:

On Monday the League petitioned to intervene in Progress Energy’s recent filing for a rate increase before the N.C. Utilities Commission (NCUC). The goal of the League’s intervention is to reduce the financial burden that an increase in Progress Energy’s electricity rates would bring upon municipal governments served by the utility.

Increases in electricity rates can significantly impact municipal budgets, particularly in those cities and towns providing such services as water and wastewater treatment, street lighting, and recreational facilities. A number of municipal governments have reached out to the League in recent months and asked how these impacts could be minimized.

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In response, the League developed a “Joint Action Program” to intervene in rates cases on behalf of municipalities. Nearly 100 cities and towns across the state have chosen to participate in the program, which will contract with specialized outside counsel to represent cities and towns in negotiations with the utilities and the NCUC.

The League’s intervention is thus far limited to the Progress Energy rates filing, but Duke Energy has also recently filed for a rates increase that would impact the municipal governments served by Duke. The League expects its program to continue operating for as long as its membership desires.

Thank you to all of the cities and towns who have chosen to participate in this important program, and special thanks to League Governmental Affairs intern Sarah Collins for her work in coordinating this program. Questions about the Joint Action Program may be directed to Sarah.

Author: Paul Meyer

Appropriations Subcommittees Meet; Budget Timeline Set

Chris Nida — Tue, 12 Feb 2013 19:53:55 GMT

Date: 2/12/2013

Description:

Appropriations subcommittees of the N.C. General Assembly met this morning to begin the months-long process of developing the state’s budget. Subcommittees holding joint meetings of both House and Senate members included Education, General Government, Health and Human Services, Natural and Economic Resources, Public Safety, and Transportation.

Tuesday’s meetings were largely educational and intended to provide members with an overview of the budget process. Calendars distributed to the committees laid out a timeline for passage of the state’s budget. According to that calendar, the Governor’s budget is scheduled to be presented on March 18. Passage of the Senate budget is targeted for May 9 and the House budget for May 30, with a conference report approved by both chambers on June 13.

The overall budget strategy put forth by the House and Senate Appropriations Chairs calls on legislators to focus on adequate funding for core functions of government while continuing to look for efficiencies in government by "looking at" duplicative programs and non-essential services.

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Author: Chris Nida

February 8, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 08 Feb 2013 17:26:06 GMT

Date: 2/8/2013

Description:

The 2013 long session is ramping up quickly. Read the February 8 LeagueLINC Bulletin for a recap of the bills and legislative activity that involves your hometown. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

February 1, 2013 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 01 Feb 2013 16:27:13 GMT

Date: 2/1/2013

Description:

They're back! Legislators returned to Raleigh Wednesday for the start of the 2013 long session. Read the February 1 LeagueLINC Bulletin for a recap of the bills already in play so you can be in the know right from the start. Things are moving swiftly, and the time to get involved is now.

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Author: Jennifer Webb

General Assembly Back In Action

Chris Nida — Wed, 30 Jan 2013 13:55:17 GMT

Date: 1/30/2013

Description:

The N.C. House of Representatives and the N.C. Senate both reconvene today for what is expected to be a busy and fast-moving session. Legislative leaders have said in recent days that they are shooting for an adjournment date in early June, meaning that legislation will move quickly in the weeks ahead.

"Reform" is likely to be a familiar refrain in the halls of the General Assembly, particularly in reference to three major areas legislators are likely to take on that could have a direct impact on cities and towns -- unemployment insurance reform, tax reform, and regulatory reform.

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Other significant issues legislators are likely to tackle include the state's education system and voter ID laws. Please check back with the League website frequently and keep an eye on emails from the League, as we will be keeping you informed of proposals that have the potential to impact your municipality.

See below for several takes from around the state on what to expect from this General Assembly session.

Fayetteville Observer -- General Assembly session to open

Charlotte Observer -- Tillis: Education, regulatory, tax reform on list

WRAL -- They're back

Author: Chris Nida

LINC'ed IN ~ January 25 Weekly Update Available

Jennifer Webb — Fri, 25 Jan 2013 18:02:41 GMT

Date: 1/25/2013

Description:

To see this week's issue of LINC'ed IN, click here.

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Author: Jennifer Webb

LINC'ed IN ~ January 18 Weekly Update Available

Jennifer Webb — Thu, 17 Jan 2013 21:15:25 GMT

Date: 1/17/2013

Description:

Read all about it in this week's LINC'ed IN, the weekly publication of the NCLM Government Affairs team. LINC'ed IN gives the 'week in review' of legislative happenings and events as well as a preview of what's Coming Soon. If you haven't already, make plans to attend the Advocacy Goals Conference Thursday, January 24. On-site registration is available.

To see this week's issue of LINC'ed IN, click here.

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Author: Jennifer Webb

Advocacy Goals Conference Right Around The Corner

Chris Nida — Wed, 16 Jan 2013 16:20:51 GMT

Date: 1/16/2013

Description:

The League's Advocacy Goals Conference is set for next Thursday, Jan. 24, at the Raleigh Convention Center. As a League member, this is your opportunity to help decide the League's legislative and regulatory priorities for the 2013-14 biennium. Register today to be part of the conference, and plan to join us the evening of Wednesday, Jan. 23, for a reception with state legislators and your fellow League members and staff.

An agenda for next Thursday's conference is below. Please note that Governor Pat McCrory is scheduled to join us in the afternoon to address the League's membership.

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9:30-9:40 Welcome and Introductions

9:40-11:00 Staff explanation of proposed legislative goals

11:00-11:15 Break

11:15-11:45 Goal Setting: Environment/Natural Resources

11:45-12:15 Goal Setting: General Government/Public Safety

12:15-1:15 Lunch; Speakers: Former Rep. Carolyn Justice &

Panel of Current Legislators

1:15-1:45 Goal Setting: Infrastructure/Utilities/Land Use/Planning

1:45-2:15 Goal Setting: Tax & Finance

2:15-2:45 Goal Setting: Transportation

2:45-3:00 Break

3:00-3:30 Legislative goal prioritization

3:30-3:50 Staff explanation of proposed regulatory goals

3:50-4:05 Regulatory goal setting & prioritization

4:05-4:15 Adoption of Core Municipal Principles

4:15-4:30 Adoption of Municipal Advocacy Goals

For a complete copy of the conference materials that were sent to all municipalities in November, see here.

Author: Paul Meyer

LINC'ed IN ~ January 11 Weekly Update Available

Jennifer Webb — Fri, 11 Jan 2013 18:22:20 GMT

Date: 1/11/2013

Description:

Read all about it in this week's LINC'ed IN, the weekly publication of the NCLM Government Affairs team. LINC'ed IN gives the 'week in review' of legislative happenings and events as well as a preview of what's Coming Soon. If you haven't already, be sure to register for the January 24 Advocacy Goals Conference today! To see this week's issue of LINC'ed IN, click here.

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Author: Jennifer Webb

Cities Affected By Unemployment Insurance Reform Recommendation

Chris Nida — Tue, 08 Jan 2013 21:48:53 GMT

Date: 1/8/2013

Description:

At its January 8, 2013 meeting, the legislative Revenue Laws Study Committee approved its final recommendation to restore the solvency of the State’s Unemployment Insurance (UI) Fund. This legislative proposal would affect how cities and towns pay for unemployment benefits. An earlier version of the proposal was considered in December and the new version makes some changes to how local governments are affected.

The Committee’s final proposal would require cities that are reimbursing employers to maintain a reserve account in the State UI fund equal to 1% of their taxable wage base. For each employee, the taxable wage base is the greater of the federal wage base ($7,000) or 50% of the State average yearly insured wage ($20,900 for 2013). Local governments would begin making quarterly payments during FY 13-14 to bring their account balance up to 1% of the taxable wage base. How these payments would be calculated and the number of quarters for which they would be required is still to be determined, but municipalities should plan on budgeting an additional 1% of the taxable wage base for FY 13-14 in order to fund their reserve accounts. All unemployment claims charged to a municipality would be deducted from the reserve account and municipalities would be billed annually for the amount necessary to bring the account back up to 1% of the taxable wage base. We will provide more details about the timing and amount of the quarterly and annual payments as they become available.

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The earlier version of the Committee’s proposal required local governments to pay an additional 0.2% of their taxable wage base as a surcharge to improve the solvency of the State’s Unemployment Insurance Fund. The Committee determined that such a requirement is not allowed under Federal law and the requirement is no longer part of the proposal.

The proposal does require local governments that are reimbursing employers to pay 100% of their claims with no appeal rights, removing the option to pay 120% of claims with the right to appeal. The proposal does attempt to restrict the circumstances under which claims can be filed, so the loss of appeal rights would have less effect than it would under current law. For those currently reimbursing at 100%, the Committee proposal could actually save money.

The text of the proposal and supporting documents can be found on the General Assembly website. The proposal will be introduced as legislation later this month and is expected to be one of the first items taken up by the General Assembly in what is expected to be a busy and fast-moving legislative session.

Author: Karl Knapp

McCrory Names Three To Remaining Cabinet Posts

Chris Nida — Thu, 03 Jan 2013 19:34:02 GMT

Date: 1/3/2013

Description:

Governor-Elect Pat McCrory announced today the final three secretaries that will serve in his cabinet upon his inauguration into the Governor’s office Saturday. Secretaries of other cabinet departments and additional key staff members had been introduced last month.

Today’s announcements included Tony Tata, the former superintendent of the Wake County schools, being named the head of the N.C. Department of Transportation; Sharon Decker, a former vice president with Duke Power and current founder and principal of The Tapestry Group, being chosen as the Secretary of the Department of Commerce; and former N.C. Representative Bill Daughtridge being selected for the top role at the Department of Administration.

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Additionally, Neal Alexander, a longtime Duke Energy official, was named the Director of the State Office of Personnel.

Previous cabinet appointments include former N.C. Representative Lyons Gray as the head of the Department of Revenue; former Salisbury mayor Susan Kluttz as Secretary of the Department of Cultural Resources; Raleigh lawyer and former City of Raleigh councilman Kieran Shanahan as the Secretary of the Department of Public Safety; former U.S. Ambassador Dr. Aldona Wos as the head of the Department of Health and Human Services; and Restoration Systems LLC CEO John Skvarla as the Secretary of the Department of Environment and Natural Resources.

Other staffing decisions previously announced by McCrory include former Durham city councilman Thomas Stith as his chief of staff, Charlotte attorney Bob Stephens as Chief Legal Counsel, former N.C. Representative Art Pope as deputy budget director, and former Romney for President campaign communications advisor Chris Walker as communications director.

Author: Government Affairs Team

LINC'ed IN ~ Dec. 21 Weekly Update Available

Jennifer Webb — Thu, 20 Dec 2012 19:54:04 GMT

Date: 12/20/2012

Description:

Read all about it in LINC'ed IN, the weekly publication of the NCLM Government Affairs team. LINC'ed IN gives the 'week in review' of legislative happenings and events as well as a preview of what's Coming Soon. To see this week's issue, click here.

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

LINC'ed IN ~ Dec. 14 Weekly Update Available

Jennifer Webb — Fri, 14 Dec 2012 17:47:22 GMT

Date: 12/14/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

McCrory Names Two Cabinet Secretaries, Chief of Staff

Chris Nida — Thu, 13 Dec 2012 19:33:24 GMT

Date: 12/13/2012

Description:

Governor-elect Pat McCrory held a press conference this morning in which he named three members of his administration. John Skvarla, currently Chief Executive Officer of Restoration Systems, a Raleigh-based company specializing in environmental mitigation banking and stream and wetland restoration, will serve as the head of the Department of Environment and Natural Resources. Dr. Aldona Wos, former U.S. Ambassador to Estonia, will be the secretary of the Department of Health and Human Services. And former Durham City Councilman Thomas Stith will serve as McCrory's chief of staff.

For more on the press conference this morning and each of the three individuals McCrory named, see below.

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WRAL: McCrory names first three members of staff

John Skvarla

Thomas Stith

Dr. Aldona Wos

Author: Government Affairs Team

NC General Assembly Confirms Leadership

Jennifer Webb — Wed, 12 Dec 2012 14:58:41 GMT

Date: 12/12/2012

Description:

2013 NC SENATE LEADERSHIP

Senate President Pro Tempore Phil Berger (R-Rockingham) received a unanimous nomination to serve for a second term as Pro Tem. Furthermore, Senator Louis Pate (R-Wayne) was nominated Deputy President Pro Tempore, Senator Harry Brown (R-Onslow) was re-elected as Majority Leader, and Senator Jerry Tillman (R-Randolph) will be Majority Whip once again.

2013 NC HOUSE LEADERSHIP

Representative Thom Tillis (R-Mecklenburg) was unanimously re-nominated for House Speaker by the Republican Caucus, which will enjoy a 77-43 majority in that chamber. Other leadership posts in the House are less clear. A proposal to split the role of House Majority Leader into two positions - one focused on day-to-day legislative matters and the other focused on more strategic initiatives - may be changing. A "Conference Leader" position was added and Rep. Ruth Samuelson (R-Mecklenburg) is running for that new position. Rep. David Lewis (R-Harnett) and Rep. Edgar Starnes (R-Caldwell) are running for House Majority Leader, Rep. Paul Stam (R-Wake) and Rep. Julia Howard (R-Davie) are running for Speaker Pro Tempore, and Rep. Mike Hager (R-Rutherford) is running for Majority Whip. House Democrats are scheduled to select their leaders at a meeting next week. Rep. Larry Hall (D-Durham) was elected House Minority Leader.

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Author: Government Affairs Team

LINC'ed IN ~ Dec. 7 Weekly Update Available

Jennifer Webb — Tue, 11 Dec 2012 16:26:13 GMT

Date: 12/11/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

Advocacy Goals Conference Set For Jan. 24; Read Goal Proposals Now

Chris Nida — Fri, 30 Nov 2012 16:54:03 GMT

Date: 11/30/2012

Description:

NCLM will hold the 2013 Advocacy Goals Conference on Thursday, January 24, 2013 at 9:30 a.m. at the Raleigh Convention Center in downtown Raleigh. Join your municipal colleagues and decide the legislative priorities for the 2013-2014 biennium. The General Assembly will discuss a number of issues that affect cities and towns in the coming legislative session, so we need your input.

The Advocacy Goals Conference marks the culmination of the League's goal-setting process. This year, there will also be a networking social for municipal officials and invited guests from the General Assembly on Wednesday evening, January 23, 2013. Register now for the social and the conference!

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In preparation for this meeting, please review the materials. A printed copy of the materials will be mailed to your municipality. (Managers and Clerks: Please share this information with your elected and other key officials, as a hard copy is being mailed only to managers and clerks.)

Voting Procedure: The League Constitution provides that each member municipality is entitled to one vote. The Board of Directors has established a policy that each municipality sending delegates to the conference may designate one voting delegate and may also designate one alternate voting delegate. This must be completed prior to the beginning of the conference at 9:30 a.m. on January 24. Voting delegates may pick up their voting cards at the Voting Credentials Desk, located in the on-site conference registration area.

Managers and Clerks in municipalities that have pre-registered officials for the conference will receive a form to designate your municipality's voting and alternate voting delegate in advance. This will save time and avoid confusion for your voting delegate in Raleigh.

Should you have any questions, please email LeagueLINC@nclm.org.

Author: Government Affairs Team

Impaired Waters Determinations Need More Detail, Flexibility

Erin Wynia — Thu, 29 Nov 2012 20:26:44 GMT

Date: 11/29/2012

Description:

A document outlining the process of making impaired waters determinations needed more detail and flexibility, the League wrote in comments submitted November 26. The League's suggestions came in response to a public comment period on the document, called the "use assessment methodology." State regulators use the methodology along with water quality data and standards to determine whether or not waters are impaired.

Given the consequences to municipalities of having a water body included on the state's impaired waters list, the League had long urged a public forum to discuss the adequacy of the methodology. Previously, decisions regarding the methodology were made by N.C. Division of Water Quality (DWQ) staff members without guidance or input from the N.C. Environmental Management Commission (EMC) and with only limited comment from the public.

In response, the EMC decided last month to oversee development of the list, capping an eighteen-month campaign by the League and other stakeholder groups seeking a new process. EMC oversight of development of this list had been a top regulatory priority for the League. (Read more about the League's efforts to secure EMC involvement in "EMC Agrees to Oversee Impaired Waters List" in the November 2012 edition of EcoLINC.)

The state's impaired waters list, also known as the 303(d) list, is named after Section 303(d) of the federal Clean Water Act and is updated every two years. For each two-year cycle, the federal law requires states to evaluate the health of their waters and “list” those exhibiting impairments. Impaired waters most often become subject to a “water pollution diet” for the affected watershed, usually in the form of a Total Maximum Daily Load (TMDL). Local governments, as the holders of wastewater and stormwater discharge permits, bear responsibility for reducing their discharges to waters under a TMDL – often a costly requirement.

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NCLM Comments Stressed Lack of Detail, Flexibility

Overall, the League's comments made suggestions to improve the lack of detail and flexibility for decision-makers who determine whether to list waters as impaired. The current methodology did not offer enough description of the process and basis for these important regulatory decisions. Without a complete understanding of the determinations, the public and affected entities such as cities and towns faced difficulties in responding to listing decisions.

Specifically, the League comments offered four over-arching suggestions:

Expanding the methodology to include a more complete description of DWQ staff deliberations on listing decisions and to establish reasonable "best professional judgment" guidelines.
Requiring a written explanation to accompany each listing decision, including all pertinent information that informed the listing decision.
Allowing increased flexibility for decisions, particularly when a decision has a large regulatory impact such as affecting an entire watershed.
Including a process to "de-list" waters for good cause, including if mistakes have been made in previous listings or if a study reevaluated the waters and pointed to non-impairment.

The League also offered specific comments on a dozen different aspects of the methodology. Highlights of these specific comments include:

Urging more thorough study of data prior to making a listing decision based on chlorophyll a, a parameter indicating nutrient impairment of waters.
Reforming the basis upon which fish consumption advisories may be used in impairment decisions, a response to shortcomings in the methodology that surfaced with the mercury TMDL issue earlier this year.
Detailing the steps an interested party must take to submit its own water quality sampling data.

In support of its points, the League included information regarding the processes followed by other southeastern states.

Next Up: EMC Approval of List

Under the process recently approved by the EMC, for the next 303(d) list, DWQ will present the use assessment methodology to the EMC at its January meeting. The methodology should reflect any changes made in response to public comment on the document. At that point, the EMC will determine if it wants changes.

Once the commission approves the methodology, DWQ will use it as a guide for its data collection and analysis over the following year. Ultimately, DWQ will propose the 2014 list of impaired waters, seeking public comment in March 2014.

Future 303(d) list cycles will follow the same process, except DWQ will issue the use assessment methodology for public comment in May of even-numbered years, with EMC consideration in September. In practice, that means each use assessment methodology comment period will immediately follow the April 1 EPA submission date of the previous 303(d) list.

Author: Erin Wynia

Tillis To Continue as House Speaker

Jennifer Webb — Mon, 19 Nov 2012 13:55:45 GMT

Date: 11/19/2012

Description:

House Speaker Thom Tillis has been unanimously nominated by the Republican Caucus to serve a second term. Click here for the full story.

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Author: Jennifer Webb

Dan Forest next Lieutenant Governor

Jennifer Webb — Mon, 19 Nov 2012 17:23:24 GMT

Date: 11/19/2012

Description:

Linda Coleman, Democratic candidate for Lieutenant Governor, has officially conceded the race to Republican candidate Dan Forest. After all votes were certified and submitted, Forest enjoyed a slim lead of 6,858 votes. For more on the story, visit here.

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Author: Jennifer Webb

LINC'ed IN ~ Nov. 16 Weekly Update Available

Jennifer Webb — Fri, 16 Nov 2012 16:53:24 GMT

Date: 11/16/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

LINC'ed IN ~ Nov. 9 Weekly Update Now Available: Elections Issue

Jennifer Webb — Fri, 09 Nov 2012 19:08:58 GMT

Date: 11/9/2012

Description:

Read all about it in LINC'ed IN, the weekly publication of the Government Affairs team. LINC'ed IN gives the 'week in review' of legislative happenings and events as well as a preview of what's Coming Soon. To see this week's issue, click here.

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

Election Recap: Call Your Legislators

Chris Nida — Wed, 07 Nov 2012 21:25:20 GMT

Date: 11/7/2012

Description:

CALL YOUR LEGISLATORS NOW!

1.Congratulate them.
2.Ask to meet with them.
3.Report back to us and let us know how we can help!

Citizens across North Carolina voted in national, state and local races yesterday, and the results of many of those races are now known. Below is a recap of the unofficial results of a number of those races, along with select media coverage. We have listed the winners of each of the races named below. For voting totals in these races and many more, see the N.C. State Board of Elections’ unofficial results.

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NATIONAL

President: Barack Obama (Mitt Romney carried the State of North Carolina)

U.S. House of Representatives
Barring the results of a recount in District 7, it appears that North Carolina’s U.S. House delegation will be split 9-4 Republican-Democrat. Nationally, Republicans retained control of the U.S. House of Representatives (see here), while Democrats maintained a majority in the U.S. Senate (see here).

District 1: G.K. Butterfield (D)
District 2: Renee Elmers (R)
District 3: Walter Jones (R)
District 4: David Price (D)
District 5: Virginia Foxx (R)
District 6: Howard Coble (R)
District 7: Mike McIntyre (D) (Note: A recount has already been announced in this race, whichRep. McIntyre leads by 507 votes.)
District 8: Richard Hudson (R)
District 9: Robert Pittenger (R)
District 10: Patrick McHenry (R)
District 11: Mark Meadows (R)
District 12: Mel Watt (D)
District 13: George Holding (R)

NORTH CAROLINA

Governor: Pat McCrory, Former Mayor of Charlotte (AP: GOP sees big wins in N.C. offices including governor; McCrory pledges he will 'bring this state together')
Lieutenant Governor: Dan Forest (Note:Forest has declared victory, though his opponent, Linda Coleman, has not conceded)

Attorney General: Roy Cooper
Auditor: Beth Wood
Agriculture Commissioner: Steve Troxler
Insurance Commissioner: Wayne Goodwin
Labor Commissioner: Cherie Berry
Secretary of State: Elaine Marshall
Superintendent of Public Instruction: June Atkinson
Treasurer: Janet Cowell (Cowell re-elected as NC state treasurer)

N.C. Supreme Court: Paul Newby (Newby wins in close race)

North Carolina General Assembly:

Following last night’s elections, Republicans appear to now hold veto-proof majorities of 32-18 in the N.C. Senate and 77-43 in the N.C. House of Representatives. Per the N.C. Free Enterprise Foundation, the N.C. Senate will have 13 freshmen, and 30 Senators – 60 percent of the body – will be in their first or second terms. Meanwhile, the N.C. House will have 42 freshmen, and 69 Representatives – 57.5 percent – will be serving their first or second term. It is more important than ever that you reach out to your legislators and begin to build a relationship with them so that you can help them understand the impact their decisions have on your municipality and your citizens in their district.

Congratulations to at least four current and former mayors who were elected to the General Assembly yesterday: Rockingham Mayor Gene McLaurin, former Burlington mayor and current council member Steve Ross, Cornelius mayor Jeff Tarte (scroll down to Senate District 41), and Chadbourn Mayor Kenneth Waddell. Congratulations as well to the many former city and town council members who won their elections last night.

For the unofficial results in all of the General Assembly races, see here. Read more about the results of the General Assembly elections in the Fayetteville Observer and the News & Observer.

LOCAL RACES

Several municipalities held local elections yesterday as well. We will be providing more details on those elections as we have the information. Meanwhile, our hearty congratulations to N.C. League of Municipalities Board of Directors member Bernita Sims on her election as mayor of the City of High Point. High Point also elected two former mayors to its City Council.

Author: Government Affairs Team

LINC'ed IN ~ Nov. 2 Weekly Update Now Available

Jennifer Webb — Fri, 02 Nov 2012 16:13:47 GMT

Date: 11/2/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

LINC'ed IN ~ Oct. 26 Weekly Update Now Available

Jennifer Webb — Fri, 26 Oct 2012 14:05:44 GMT

Date: 10/26/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

LINC'ed IN ~ Oct. 19 Weekly Update Now Available

Jennifer Webb — Fri, 19 Oct 2012 15:41:21 GMT

Date: 10/19/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

October Edition of EcoLINC, Environment Newsletter, Available

Erin Wynia — Tue, 16 Oct 2012 15:59:10 GMT

Date: 10/16/2012

Description:

The League has published the October edition of EcoLINC, its monthly publication highlighting environmental regulations and legislation of concern to N.C. cities and towns. This month's issue includes articles on:

Water supply
State impaired waters list
Water system electronic reporting
Natural gas extraction board

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Author: Erin Wynia

LINC'ed IN ~ Oct. 12 Weekly Update Now Available

Jennifer Webb — Fri, 12 Oct 2012 16:18:23 GMT

Date: 10/12/2012

Description:

Read all about it in LINC'ed IN, the weekly publication of the Government Affairs team. LINC'ed IN gives the 'week in review' of legislative happenings and events. To see this week's issue, click here.

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by noon Thursday.

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Author: Jennifer Webb

Water Supply Concerns Top Legislative Panel's Agenda

Erin Wynia — Sun, 14 Oct 2012 16:46:36 GMT

Date: 10/12/2012

Description:

Legislative leaders on environmental issues prioritized water supply as a focal point at their meeting of the legislative Environmental Review Commission (ERC) yesterday. Duties of the ERC, a standing legislative commission, include oversight of all state environmental boards and programs as well as review of changes to federal environmental laws.

Importantly, the ERC may propose bill language on any topic related to the environment. Generally, such proposals stem from presentations received by the commission during its meetings in between legislative sessions.

On Thursday, the commission heard from several state agencies regarding water supply. Tom Reeder, Director of the Division of Water Resources (DWR), N.C. Department of Environment and Natural Resources, updated legislators on the broad array of water supply activites undertaken by DWR. He also made suggestions for increasing assured water supplies across the state. Vernon Cox, Environmental Programs Specialst, N.C. Department of Agriculture, reported on the results of the 2011 voluntary agriculture water use survey.

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Information given to the commission by presenters was important to understanding the possible directions any future water supply legislation might take. For example, responding to past interest in assuring adequate water supplies for decades to come in North Carolina, Reeder outlined six methods to create new water supplies:

Interconnection between systems
Reallocation of storage in existing reservoirs
Utilization of quarries that receive excess water from nearby rivers during high-flow periods
Surface water intake
Non-mainstem (offline) reservoir
Mainstem reservoir

In the last legislative session, the League was heavily involved with proposals addressing many of the new supply choices Reeder identified, such as interconnections and reservoir development (page 7). Looking ahead, past bills that were unsuccessful -- such as mandatory interconnections between systems -- may be reintroduced, while legislators may choose to build further on past successes like reservoir development.

A comprehensive water supply bill may also address other aspects of managing water resources to achieve the goal of increased water supply. Possibilities raised in the context of discussing Reeder's presentation include:

Broadening the uses of reclaimed water
Encouraging leak detection audits
Requiring more efficient use of water
Considering the role of ecological flow
Enabling private investment in water infrastructure

A workgroup of League members on the Regulatory Action Committee will examine the issue from a municipal perspective and provide feedback to legislators in November. The League intends to play an active role in stakeholder discussion on this topic; please email Erin Wynia with your concerns and questions.

In addition, Rep. Mitch Gillespie (McDowell) stated his intent to hear presentations on the effort to develop ecological flow data at a future ERC meeting.

Author: Erin Wynia

LINC'ed IN ~ Oct. 5 Weekly Update Now Available

Jennifer Webb — Fri, 05 Oct 2012 18:03:52 GMT

Date: 10/5/2012

Description:

If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by Thursday noon.

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Author: Jennifer Webb

LINC'ed IN ~ Sept. 28 Weekly Update Now Available

Jennifer Webb — Fri, 28 Sep 2012 18:47:53 GMT

Date: 9/28/2012

Description:

LINC'ed IN is a weekly publication of the Government Affairs team about legislative events and more. To see this week's issue, click here. If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by Thursday noon.

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Author: Jennifer Webb

LINC'ed IN ~ Sept. 21 Weekly Update Now Available

Jennifer Webb — Fri, 21 Sep 2012 18:26:53 GMT

Date: 9/21/2012

Description:

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Author: Jennifer Webb

September EcoLINC Now Available!

Jennifer Webb — Thu, 20 Sep 2012 19:33:38 GMT

Date: 9/20/2012

Description:

EcoLINC is a monthly publication of the League highlighting regulations and legislation of relevance to North Carolina hometowns. The September 18 issue is now available. If you are interested in being added to the electronic distribution list for EcoLINC, please email LeagueLINC with EcoLINC in the subject line.

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Author: Erin Wynia

LINC'ed IN ~ Sept. 14 Weekly Update Available

Jennifer Webb — Mon, 17 Sep 2012 17:56:40 GMT

Date: 9/17/2012

Description:

The first issue of "LINC'ed IN" is now available. LINC'ed IN is a weekly publication of the Government Affairs team to help NCLM members stay in the know about legislative events and more. If something is going on in your hometown that you'd like NCLM members to be aware of, please email Jennifer Webb by Thursday noon.

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Author: Jennifer Webb

Natural Gas Commissioners Cover Basics of Public Service

Erin Wynia — Fri, 07 Sep 2012 15:58:40 GMT

Date: 9/7/2012

Description:

In its initial organizational meeting yesterday, members appointed to the newly-created N.C. Mining & Energy Commission (MEC) received counsel from state attorneys and environment officials regarding basics of their public service: state public records and open meetings laws, ethics laws, rulemaking procedures, and their task list from the N.C. General Assembly. The MEC, created this summer by legislators with Session Law 2012-143, will develop the regulations to allow natural gas extraction in North Carolina.

Questions posed by commissioners reflected their awareness of the controversial nature of their work. Meeting just two months after a dramatic veto override vote by the General Assembly, MEC members vigorously sought to understand their obligations to conduct their business publicly, in accordance with the state's public records and open meetings laws. This discussion took up nearly one-third of the meeting time.

The meeting also covered other topics. In a presentation by state environmental regulators regarding the areas for which the General Assembly has directed the MEC to write rules, conversation briefly touched on the hot-button issue of local authority to regulate the natural gas extraction industry.

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Commissioners asked for clarification on their role in making recommendations to legislators on the issue of local authority. Under the law that legalized natural gas extraction, the MEC will ultimately make a recommendation to the General Assembly on the issue of local authority.

Legislators created this process after initially proposing to ban any local government restrictions on the industry. Instead of a total ban, legislators voted to create a workgroup to make recommendations on the issue. The workgroup will include the League, the N.C. Association of County Commissioners, and the N.C. Department of Environment and Natural Resources. Recommendations will go to a new legislative panel, the Joint Legislative Commission on Energy Policy.

Next steps for the MEC, which will likely meet at the end of September, include election of a chair, formation of committees, and establishing a regular meeting schedule. For opponents of natural gas extraction, the fight will now likely move to challenging the ability of MEC members to vote on any proposed regulations, based on ethics/conflict of interest statutes.

Read more about the ethics controversy surrounding the creating of the MEC in this August 2012 issue of EcoLINC, the League's monthly electronic environmental newsletter.
Read a recap of the law that legalized the practice of natural gas extraction in the LeagueLINC Bulletin 2012 Short Session Summaries.

Author: Erin Wynia

Rep. McComas to Chair N.C. State Ports Authority

Jennifer Webb — Thu, 30 Aug 2012 16:21:25 GMT

Date: 8/30/2012

Description:

Governor Perdue Announces Representative McComas to Chair N.C. State Ports Authority

Press Release - 8/29/2012 PM

RALEIGH - Governor Bev Perdue today announced that Rep. Daniel F. McComas, a Republican from New Hanover County, will be named chairman of the North Carolina State Ports Authority. McComas will resign his house seat effective Sept. 2, to take the new position.

"The ports are a critical component to the economy of North Carolina," said Gov. Bev Perdue. "Rep. McComas' appointment demonstrates my commitment to the continued success and growth of the North Carolina State Ports Authority. I want the best person in the job, no matter what side of the aisle he or she sits on."

"I am honored to be given the opportunity to continue working to strengthen our state's economy," said Rep. Daniel McComas. "The state ports service a vital economic need for all who choose to do business in North Carolina and it is imperative that we keep our state economically competitive. As chairman, I can continue my work in helping our state meet the demands of a global economy while improving the infrastructure needs of our state's transportation systems."

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Rep. McComas was first elected in 1994 and has served for 18 years; he announced earlier this year he would not seek re-election. McComas currently serves as chairman of the Commerce Committee. Born in San Juan, Puerto Rico, he earned a bachelor's of science degree in finance from St. Bonaventure University in New York, and lives in Wilmington with his wife Betty.

"This is great news for the Morehead City and Wilmington ports and Eastern North Carolina," said Phil Marion, senior vice president at BB&T in Wilmington. "Daniel McComas knows the ports, he knows transportation and he knows how government works. The port doesn't need to start over, it simply needs to build on what is good. He's very skilled and will do a great job building upon the success of the North Carolina State Ports Authority."

###

Contact: Chris Mackey, Office of the Governor, 919.733.5612

Author: Government Affairs Team

2012 Legislative Memos Now Available

Jennifer Webb — Thu, 23 Aug 2012 17:40:52 GMT

Date: 8/23/2012

Description:

The NCLM Legal and Government Affair's teams have prepared a selection of memos detailing certain complicated changes of note that were made during the 2012 short session of the General Assembly. For a broader overview, please see the LeagueLINC Wrap-Up Bulletin distributed July 31, 2012. The memos address the following:

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Author: Government Affairs Team

Natural Gas Extraction Rulemaking Board Begins Meetings

Erin Wynia — Wed, 22 Aug 2012 15:11:19 GMT

Date: 8/22/2012

Description:

With all of its members appointed, the newly-created N.C. Mining & Energy Commission (M&E Commission) is set to begin its work in September. This commission will write the rules governing the now-legal practice of natural gas extraction.

The Commission's first organizational meeting is planned for September 6, from 1:00 pm-5:00 pm in the Archdale Building Ground Floor Hearing Room, 512 North Salisbury Street, Raleigh. Agenda topics include compliance with open meetings and public records law, state ethics requirements, and the Commission's duties under the state law creating the Commission.

The M&E Commission will also oversee the work of several workgroups involving topics of prime interest to N.C. municipalities, including the issue of local government authority over development of this industry and local government funding to address impacts from the industry.

Read more about the work of the M&E Commission and the role the League will play in issues under its consideration in this July 2012 EcoLINC article.
Read about the controversy surrounding the Commission as it begins its work in this August 2012 EcoLINC article.

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Author: Erin Wynia

Updated Board of Transportation Procedures for Naming Roads / Bridges / Ferries

Jennifer Webb — Thu, 02 Aug 2012 12:56:17 GMT

Date: 8/2/2012

Description:

The North Carolina Board of Transportation recently updated its procedures for the honorary designation of state-owned roads and bridges. A complete listing of the updated procedures can be found here. Please pay particular attention to three aspects of the updated procedures:

5. Municipal officials and employees should be recognized with a municipally owned road or bridge in lieu of a state owned road or bridge except when there is a significant connection or association between the individual and a specific state owned road or bridge.

6. The costs of the honorary signage will be shared equally between the requesting local governments and the Department.

9. Opposition. The Board does not mediate local disagreements. Requests must be a unanimous decision to be considered.

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If you have any questions about these updated procedures, please contact Sandy Nance with the N.C. Department of Transportation.

Author: Paul Meyer

2012 Short Session Wrap-Up Bulletin Now Available

Jennifer Webb — Tue, 31 Jul 2012 16:48:50 GMT

Date: 7/31/2012

Description:

The 2012 North Carolina General Assembly Short Session Wrap-Up Bulletin is now available. It's a good time to get your favorite beverage and spend some quality 'indoor' time reviewing the 2012 legislative happenings.

Just as we finish one session, we can hear the low roar of the next session revving its engine. Now is the time to submit legislative and regulatory goal proposals for the 2013-2014 biennium. Legislative and Regulatory Action Committees will be meeting in the next twelve weeks reviewing suggested goals in preparation for approval by the Board of Directors and ultimate consideration and endorsement by the NCLM membership at the January 24, 2013 Municipal Advocacy Goals Conference in Raleigh.

Thank you to all of you who invested so much time and effort into this year's legislative session. For background information on any of the issues covered in the Wrap-Up Bulletin, you can review 2012 Legislative Bulletins here.

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Author: Government Affairs Team

Request For Legislative Policy Proposals

Jennifer Webb — Tue, 24 Jul 2012 18:54:26 GMT

Date: 7/26/2012

Description:

The N.C. League of Municipalities requests your proposals for legislative and regulatory goals it should pursue during the 2013-14 biennium. These proposals are an integral part of the process of determining the League’s Municipal Advocacy Goals for 2013-14.

Submit your legislative and regulatory goal proposals here

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The League is following the same timeline that two years ago led to the development of the 2011-12 Municipal Advocacy Goals, which have guided the League’s advocacy efforts throughout the 2011 and 2012 sessions of the General Assembly.

January-April: Legislative & Regulatory Action Committees meet
June-August: Membership submits proposed goals
August-October: Legislative & Regulatory Action Committees develop & recommend proposed goals
November: League Board of Directors approves proposed goals
December: Goal proposals distributed to League membership
Jan. 24, 2013: League membership debates proposed goals and approves 2013-14 Municipal Advocacy Goals at the Advocacy Goals Conference in Raleigh

Right now, your League needs your input about the issues that it should address during the 2013-14 legislative session and the proposals that it should make for changes to legislation. Proposals can be sent by elected officials and staff of member municipalities, but each proposal must indicate whether the governing body of the submitting official’s municipality has voted to approve submission of the proposal. Policy proposals should be submitted via the link below as soon as possible, but no later than August 31, 2012. This is your policy process – please give this thoughtful consideration and participate so that the League speaks for you.

Submit your legislative and regulatory goal proposals here

Author: Government Affairs Team

Federal Update: Marketplace Fairness Act

Jennifer Webb — Wed, 25 Jul 2012 14:41:47 GMT

Date: 7/25/2012

Description:

Governor Haslam of Tennessee testified Tuesday before the U.S. House Judiciary Committee on the Marketplace Fairness Act. The National League of Cities also joined the U.S. Conference of Mayors, the National Association of Counties and the National Government Finance Officers Association in a letter to the House Judiciary Committee.

According to the National League of Cities, while the private and public sector support for the legislation continues to grow, and it's getting more media attention, the legislative calendar and the elections are near-term impediments for getting the bill considered on the Hill. Everyone is hopeful that the champions of the legislation can find a pathway for getting the legislation considered in the lame duck session or in 2013, so we need to be actively advocating for this legislation via letters and contact with our entire U.S. delegation.

Please send a letter to your U.S. Senator and Representatives today!

REFERENCES:

Statement of Tennessee Governor Bill Haslam

MarketplaceFairness.org

July 12, 2012, NCLM Marketplace Fairness Action Alert

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Author: Kelli Kukura

End Of Session LeagueLINC Bulletin In Process

Jennifer Webb — Mon, 23 Jul 2012 17:32:56 GMT

Date: 7/23/2012

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The second regular session of the General Assembly's 2011-2012 biennium officially adjourned Tuesday, July 3, 2012. The end of session LeagueLINC Bulletin will be available early next week for your reading and reflection. The summary Bulletin will provide details on legislation that was covered by the Government Affairs team during the 2012 short session and will indicate which issues will also have more detailed Legislative Memos.

Thank you to those of you who joined us for the wrap-up LINC in THURSDAY webinar. Issues covered in that call, plus many more, will be included in the LeagueLINC Bulletin.

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Author: Jennifer Webb

Regulators Delay Mercury Water Body Clean-up Plan

Erin Wynia — Sun, 15 Jul 2012 20:48:19 GMT

Date: 7/16/2012

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In over two hours of colorful discussion in which nearly every commissioner spoke, the N.C. Environmental Management Commission (EMC) voted to table the proposed mercury water body clean-up plan and wastewater permitting strategy Thursday. At the same time, the Commission directed an exploration of alternate approaches to the plan.

The water body clean-up plan -- generally called a Total Maximum Daily Load (TMDL), its name in the federal Clean Water Act (CWA) -- was developed in response to measured accumulations of mercury in large-mouth bass in N.C. waters. As with other TMDLs, the state Division of Water Quality (DWQ) proposed requiring reductions from municipal wastewater treatment systems through limits in their federal discharge permits.

Wastewater dischargers -- both municipal and industrial -- would be the only two classes of permit-holders targeted by the wastewater permitting strategy.

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Ultimately, the EMC agreed to postpone consideration of the proposal and instead explore alternate approaches. The EMC also agreed to include in the process a consultation with officials in the U.S. Environmental Protection Agency (EPA) Region 4 office about the possibility of an alternate listing of the state's waters, called a "Category 5m" approach. While many questions remain over the scope of the search for alternatives, commissioners voted to examine a "hybrid" TMDL approach that would:

Retain the proposed TMDL's goal of a 67% reduction in mercury
Provide a way to remove waters with no mercury impairment
Further target mercury hot spots for more stringent regulation

In this proposed TMDL, DWQ estimated that wastewater dischargers contributed two percent of the mercury load to the state's waters, while airborne mercury that reached the ground via rainfall contributed the remaining 98 percent. Unlike wastewater discharges, permitted sources of air emissions would not be affected under this plan. In addition, DWQ would not require any reductions from permitted stormwater programs.

The draft mercury TMDL, released by DWQ in late April, applies to all waters in the state and is the first-ever statewide TMDL for North Carolina. The League has reported extensively on this issue:

Background on this unusual TMDL is in a March 2012 EcoLINC article
Description of the unprecedented EMC vote on the plan is in a April 2012 EcoLINC article
Reporting on the League's comments is in a June 2012 EcoLINC article

Read a more detailed explanation of the EMC discussion and vote in the July 17 edition of EcoLINC, the League's monthly electronic environmental newsletter.

Author: Erin Wynia

Federal News: Express Support Today for Marketplace Fairness Act

Jennifer Webb — Thu, 12 Jul 2012 16:48:47 GMT

Date: 7/12/2012

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An e-fairness amendment to the Small Business Jobs and Tax Relief Act has been introduced by United States Senators Durbin, Enzi and Alexander - all co-sponsors of the Marketplace Fairness Act.

This introduction means e-fairness may move forward when the Senate debates the small business legislation this week. If the amendment is added and the bill is passed, that would be a huge step toward a level playing field between online-only and brick and mortar retailers across the country. If ever there were a time to address this issue for North Carolina's economy, it is now.

Please call Senator Kay Hagan (202.224.6342) and Senator Richard Burr (202.224.3154) today and urge them to support the e-fairness amendment!

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North Carolina and its local governments, like most other states, are losing hundreds of millions of dollars in sales tax revenues annually. We need your help in supporting this amendment, so please make your calls soon.

Federal e-fairness legislation would close the sales tax loophole once and for all, ending the government-sanctioned advantage that online-only retailers have over local businesses. If passed, this e-fairness amendment would:

Allow states to require online-only retailers to play by the same rules as local, brick and mortar businesses;
Allow local businesses to compete fairly;
Strengthen local economies still struggling through a sluggish recovery.

Currently in North Carolina, mail-order products are often purchased with no sales tax being charged. By law the customer must then calculate the sales tax and pay it when his state income taxes are filed. According to the N.C. Department of Revenue, only about 2 percent of filers include mail-order sales taxes, generating about $5 million.

A University of Tennessee study estimated in 2009 that North Carolina's online shoppers owed the state $130.4 million in sales taxes. The study predicted the state would see $213.8 million in uncollected taxes from online sales in 2012.

In 2010, the N.C. Department of Revenue tried to force Amazon.com to turn over records of customer purchases so it could collect sales taxes from the customers. It was stopped by a federal judge.

Author: Kelli Kukura

Session Wrap-Up Webinar To Be Hosted July 19

Jennifer Webb — Wed, 11 Jul 2012 19:14:13 GMT

Date: 7/11/2012

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Join the League Government Affairs team on Thursday, July 19 from 3:00-4:00 p.m. for a complete run-down of the 2012 Legislative Short Session. Even if you missed every LINC in THURSDAY call this session, DO NOT miss this one! We will discuss key issues, the politics behind them, and the short- and long-term implications for cities and towns.

You cannot receive this type of information anywhere else or in any other format.

If you are a Mayor or a Council Member, you need to hear this information so you can consider the implications for your city and be prepared to discuss the issues with your legislators in the interim.

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Author: Jennifer Webb

Municipal Issues Feature Strongly in Legislature's Final Debates

Erin Wynia — Tue, 03 Jul 2012 20:02:19 GMT

Date: 7/3/2012

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After a very difficult 2012 short session for our North Carolina cities and towns, we can give you the welcome news that the General Assembly adjourned today sine die. A detailed report will be completed in the next two weeks.

The House was in session until midnight last night (Monday) and we were in the Senate gallery still working at 4:15 am this morning. We will be hanging the ‘gone fishin’ sign out shortly for a few days. My personal thanks to the entire GA team but especially Paul Meyer and Erin Wynia who have worked extremely long and odd hours under sometimes very difficult circumstances.

Below are some of the issues of interest to municipalities in the last 48 hours, since last week’s League LINC Bulletin.

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NCGA Overrides Three Vetoes: Republican leaders in the House and Senate found the votes to override the governor’s vetoes of the 2012 budget adjustment bill, legislation to legalize natural gas extraction (fracking), and an overhaul of the Racial Justice Act. The League GA team was successful in getting ‘more’ than was originally proposed for the fracking bill, but much of it is process-oriented in terms of ensuring the municipalities a ‘seat at the table’ for more substantive work to come.

Click here for a reminder on the natural gas extraction bill (SB 820) and local governments.
Click here for AP story on the vetoes.

Water Extensions Bill Fails—Twice: Against a series of odd events and a tremendous push by the bill proponent, House Rules Chair Rep. Tim Moore (Kings Mountain), in the wee hours this morning, the Senate failed to concur with the proposed committee substitute for SB 382--Amend Water Supply/Water Quality Laws (Apodaca). This bill was bad for Durham and bad for all cities and towns across the state, setting in place a slippery slope toward mandating water and sewer service to property owners in areas outside a municipality’s city limits. The bill was brought forward and pushed for Southern Durham Development Company.

We appreciate the wonderful support of the entire Durham legislative delegation -- Sen. Floyd McKissick, Sen. Bob Atwater, Rep. Larry Hall, Rep. Paul Luebke, Rep. Mickey Michaux, and Rep. Winkie Wilkins -- as well as the support of former Speaker Joe Hackney, Sen. Pete Brunstetter, Sen. Fletcher Hartsell, and Sen. Josh Stein.

Click here to read a Raleigh News and Observer article about the vote.

Composting and Misc. Environmental Amendments Passes: SB 229--Amend Environmental Laws 2012 (East) has passed upon adoption of the conference report. The bill makes a number of changes to North Carolina environmental law, including a change that would narrow permitting of large Type 1 yard waste compost operations to permits required under state stormwater or federal MS4 stormwater programs only.

Contingency Fee Audit Bill Compromise Passes: After a hard push against an attempt by the NC Retail Merchants Association, the North Carolina Chamber, and other groups to wipe out contingency fee auditing for state and local governments, compromise language (SB 847--Sec. 61.5) was negotiated and passed. Under the compromise, cities and counties can continue existing contingent fee-based contracts for tax auditing purposes between July 1, 2013, and July 1, 2015, but cannot assign new contracts starting July 1, 2013. Additionally, the issue will be comprehensively studied in the Legislative Research Commission study committee.

Jordan Lake Rules Delayed: HB 953--Amend Environmental Laws 2 (Gillespie) passed, delaying by two years the implementation of the new development ordinance component of the Jordan Lake Rules.

Click here for a Greensboro News-Record blog post on that issue.

Study of ETJ, Water/Sewer, Municipal Incorporations Bill Killed: SB 231--Incorporation/ETJ Study (Hartsell) was killed when the Senate failed to concur with the House proposed committee substitute. Word is that Sen. Dan Soucek discouraged the bill's passage because he was unable to successfully pass SB 949--Town of Boone/ETJ (Soucek), which stripped the town of Boone of its one-mile extra-territorial jurisdiction. This was a bad bill and the League GA team worked hard to stop it. We thank the many legislators who recognized its negative impacts.

Billboard Fix Bill Dies: We thank the House for attempting to restore some additional local government authority into the placement and replanting of billboards. Unfortunately, Sen. Harry Brown, the chief proponent for the billboard industry in the Senate, was not supportive.

A Few Round-up Items of Note:

SB 94--911 PSAPs Tech Standards (Hartsell) puts a step in to pave the way for better secondary PSAP funding
HB 819--Coastal Management Policies (McElraft) directs a study of the rate of sea level rise, with no state regulations or policies allowed until at least 2016
SB 187--Modifications/2012 Appropriations Act provides a little relief for utility line relocations required by NC DOT (see Section 6.1)
HB 1077--PPP Pilot Toll Projects/Ferry Tolls (Frye) provides a public-private partnership tolling experiment for I-77

Thanks to all of our great NC cities and towns for your advocacy on behalf of your citizens during this 2012 Short Session!

Quick Note on Federal Action: The U.S. House and Senate agreed on Friday to a federal surface transportation reauthorization bill that will keep highway projects funded through Sept. 30, 2014. The transportation funding bill had expired in 2009 and had been extended on a short-term basis nine times since then. This legislation allows over $980 million in transportation projects to continue.

Gone fishin' for a bit...

Author: Kelli Kukura

Budget, Natural Gas Extraction Bills Among Governor's Vetoes

Chris Nida — Mon, 02 Jul 2012 14:00:07 GMT

Date: 7/2/2012

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Governor Bev Perdue’s vetoes of bills passed by the General Assembly will give legislators additional items to consider on Monday and Tuesday, which are scheduled to be the final days of the 2012 legislative session.

On Friday, Governor Perdue vetoed the budget, leaving lawmakers with the option of attempting to override the veto or to simply adjourn and let the second year of last year’s budget take effect. Yesterday, the Governor vetoed SB 820 Clean Energy and Economic Security Act, which would have put in place the framework for North Carolina to regulate and allow hydraulic fracturing for natural gas extraction.

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Also outstanding is the Governor’s veto of the legislature’s rewrite of the Racial Justice Act.

Any of the Governor’s vetoes can be overridden by a three-fifths majority vote in each chamber of the General Assembly. While the Senate likely has the votes to override the vetoes, the House’s ability to override is less certain. We are continuing to work with the Governor's office and the General Assembly to ensure municipal governments and the protection of local communities are included in any possible negotiation.

For coverage of the Governor’s vetoes of the budget and the natural gas extraction bill, see below.

WRAL: Perdue says she will veto budget

Raleigh News & Observer: Perdue budget veto brings uncertainty

Charlotte Observer: Perdue vetoes fracking bill

Author: Kelli Kukura

Congress Agrees On Transportation Bill

Chris Nida — Mon, 02 Jul 2012 20:03:39 GMT

Date: 7/2/2012

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On Friday, the U.S. House and Senate agreed to a federal surface transportation reauthorization bill that will keep highway projects funded through Sept. 30, 2014. The transportation funding bill had expired in 2009 and had been extended on a short-term basis nine times since then. According to a statement from Sen. Kay Hagan’s office, the bill will allow $981.4 million worth of construction projects in North Carolina to continue.

For more on the agreement, see this information from the National League of Cities.

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Author: Kelli Kukura

June 29 LeagueLINC Bulletin Now Available

Chris Nida — Fri, 29 Jun 2012 16:23:50 GMT

Date: 6/29/2012

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The General Assembly is scheduled to adjourn early next week, but they are staying busy in the final days of the session. A number of bills impacting municipalities are still up for discussion, and your Government Affairs team is working hard to stay on top of all of them. Read this week's LeagueLINC Bulletin for all of the latest.

Note: If the General Assembly adjourns next week as scheduled, this will be the last Friday LeagueLINC Bulletin of this session. We will have a full session wrap-up Bulletin and conference call, so stay tuned for details on both of those.

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Author: Government Affairs Team

McCrory Disagrees With Last Session's Billboard Legislation

Chris Nida — Mon, 25 Jun 2012 20:01:37 GMT

Date: 6/25/2012

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Former Charlotte mayor Pat McCrory, the Republican nominee for North Carolina governor, spoke up over the weekend in defense of the state’s cities and towns. Specifically, he said he disagreed with the General Assembly’s decision last session to eliminate local control over tree-cutting decisions around billboards.

McCrory appeared at a forum in Wilmington with Lieutenant Governor Walter Dalton, the Democratic gubernatorial nominee. Asked to differentiate himself from state legislators, McCrory mentioned the billboard legislation passed in 2011.

“I also disagreed with some of the legislation which took away power from local governments, especially with regard to billboard legislation,” McCrory said. “I didn’t think it was right to take away that local power.”

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As noted in Friday’s LeagueLINC Bulletin, SB 428 would return some local authority to decisions regarding billboards and was approved by the House Environment Committee last week. Please continue to contact your legislators and let them know of your support for this bill.

In addition to his opposition to the billboard legislation, McCrory commented more generally on criticism of North Carolina’s municipalities.

“It’s just amazing to me that we attack cities and towns in this state,” he said. “We have to unite instead of attack. We have to have dialogue that’s constructive, and that’s why I’m running for governor.”

The forum can be viewed online here. McCrory’s comments regarding billboards and cities and towns begin at approximately the 19:20 mark. A full recap of the forum from Raleigh’s WRAL can be found here.

Author: Paul Meyer

June 22 LeagueLINC Bulletin Now Available

Chris Nida — Mon, 25 Jun 2012 13:56:10 GMT

Date: 6/22/2012

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The legislative session appears to be winding down, but action at the General Assembly does not. A number of issues that could impact municipalities across the state are still in play, and more could pop up this week. Read this week's LeagueLINC Bulletin here for the latest on what is happening in the General Assembly, and stay tuned for further communication from the League this week about what is happening in Raleigh.

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Author: Government Affairs Team

House Committee Approves Delay of New 911 Standards

Jennifer Webb — Wed, 20 Jun 2012 18:55:07 GMT

Date: 6/20/2012

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Earlier today the House Judiciary B Subcommittee passed a bill to delay implementation of new 911 "operational standards" until January 1, 2014. These excessive operational standards would be used by the state 911 Board to close viable 911 centers across the state. The League will update you with additional information and a link to the bill text when it becomes available.

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Author: Paul Meyer

Budget Deal Announced by House & Senate Leaders

Jennifer Webb — Wed, 20 Jun 2012 21:02:43 GMT

Date: 6/20/2012

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House and Senate leaders announced compromise language for adjustments to the state budget today.

The League has done a quick analysis of the bill, and the only effect that the conference agreement on the budget has on municipal revenues is a reduction in Powell Bill funds of less than one percent, which would result from capping the gas tax at 37.5 cents in FY 12-13. This change would affect FY 13-14 distributions.

In addition, the conference agreement calls for a three percent reduction in public transportation operating grants. It also eliminates all of the $29 million in funding for the Regional New Starts and Capital Program, but provides $25 million for development of Charlotte's Blue Line rail project.

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In other transportation-related provisions, the agreement would shift funds for the Garden Parkway and Mid-Currituck Bridge projects to the Mobility Fund, require tolls on most ferry routes beginning in July, delaye any possibility of tolls on I-95 until 2014, and place new ethics rules on MPO and RPO members.

The agreement also makes a $3 million reduction to the Rural Center's Infrastructure Program and a $1 million reduction to the Clean Water Management Trust Fund. Both reductions would limit the funding available for local projects.

Here is a general update on the budget agreement from The Insider publication:

A $20.1 billion budget deal announced by House and Senate leaders Tuesday will include a 1.2 percent raise for state employees and teachers, $251 million to restore cuts to public education, cuts the state gas tax and includes several provisions of an education reform proposal by Senate leader Phil Berger. The bill includes no money to repay victims of the state's eugenics program or for the Teaching Fellows scholarship program. A vote on the bill could come as early as Thursday in both legislative chambers. (THE INSIDER, 06/20/12)

Author: Karl Knapp

Message to Senate & House - "Vote No" HB 462

Jennifer Webb — Tue, 19 Jun 2012 18:28:33 GMT

Date: 6/19/2012

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Today the League respectfully asked the House and Senate members to "Vote No" on HB 462 Contingency Contracts for Audits/Assessments (McCormick). This bill would allow millions of dollars in local taxes to go uncollected. We encourage you to reach out to your representatives and ask them to Vote No on HB 462. For more details and to see the letter delivered to the General Assembly members, see below.

Letter Delivered to House & Senate Members and Contingency Fee Contract Process Chart

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Author: Jennifer Webb

June 15 LeagueLINC Bulletin Now Available

Jennifer Webb — Fri, 15 Jun 2012 15:49:20 GMT

Date: 6/15/2012

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Wow! It was great seeing everyone in Raleigh last week for Town Hall Day. You all looked so good in your green neckties and scarves! Thanks for participating. For an update on this week's legislative issues, be sure to read today's LeagueLINC Bulletin. Stay tuned in in the coming days for news on the General Assembly's possible adjournment and join us next week for the LINC in THURSDAY webinar, 3 o'clock each Thursday of session.

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Author: Jennifer Webb

N.C. Senate Releases Budget; Municipal Revenues Appear Unaffected

Jennifer Webb — Tue, 12 Jun 2012 13:28:19 GMT

Date: 6/12/2012

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The N.C. Senate released its budget proposal over the weekend. On the whole, the budget leaves municipal revenues unaffected, and the League thanks both the Senate and House of representatives for not balancing their budgets on the backs of the state's municipalities. The Senate budget also maintains recurring funding for the Clean Water Management Trust Fund, whereas the House's budget does not. But while the Senate budget provides more funding for public transportation operating grants than the House, the Senate also eliminates the $29 million Regional New Starts and Capital Program.

There are additional proposals in the Senate budget that could have potentially adverse effects on cities and towns. They include the following:

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A gas tax cap of 37.5 cents. The League continues to oppose a cap on the state's gas tax because it would slightly reduce Powell Bill allocations in FY13-14.
A reduction in funding for the N.C. Rural Center, nearly $6 million of which comes from the Center's N.C. Infrastructure Program.
A requirement that Metropolitan Planning Organizations and Rural Planning Organizations be subject to the State Ethics Act.

The League will continue to monitor these proposals as negotiations over the bill progress. If the Senate passes its version of the budget this week, it will then enter into a conference with the House in order to reach a compromise budget. Differences in education funding and pay for state employees and teachers are likely to be among the major points of contention in negotiations.

Budget in the News:

AP: NC Senate spends less than House in budget changes

News & Observer: Differences in the budgets proposed by the N.C. Senate and House

WRAL: Senate budget doesn't buffer schools

Author: Government Affairs Team

League on Radio: Discussions of Annexation, Gas Tax Cap and Natural Gas Extraction

Jennifer Webb — Tue, 12 Jun 2012 13:36:17 GMT

Date: 6/12/2012

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N.C. Policy Watch invited Kelli Kukura, the League's Director of Government Affairs, to discuss legislative efforts to stop annexation, the gas tax cap and natural gas extraction. The interview is now available online if you'd like to listen in.

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Author: Jennifer Webb

Governor Decides Not to Sign Annexation Reform Changes

Jennifer Webb — Mon, 11 Jun 2012 15:21:06 GMT

Date: 6/11/2012

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The League has issued the following statement regarding Governor Perdue's decision over the weekend not to sign HB 925 - Annexation Reform 2 (Moffitt):

We appreciate Governor Perdue's call to revisit the annexation issue in a way that provides for long-term balanced growth. North Carolina's cities and towns are home to almost three-quarters of our jobs. It is time for the General Assembly to work in true partnership with municipalities to focus on increasing these jobs and on growing our state's economy. This legislation does the opposite. It hurts business, economic development and our taxpayers. The citizens we jointly represent deserve, and expect, better.

News Articles:
News & Observer: NC Governor Won't Block Forced Annexation Changes
Associated Press: NC Governor Letting Bill Create Referendum Method to Block Forced Annexations Become Law

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Author: Kelli Kukura