Final Days of 2012 Session...
House and Senate leaders have confirmed their plans to adjourn on Tuesday, July 2nd. Speaker Thom Tillis anticipates that primary business for this week to center on any vetoes from the Gov. Beverly Perdue before adjourning the legislative session. Perdue vetoed the state budget adjustments on Friday, June 29th and already had vetoed a bill making changes to the 2009 Racial Justice Act. On Sunday evening, the Governor made an additional veto to Senate Bill 820, which would set the regulatory framework for shale gas development.

Governor Announces Budget Veto Decision
Recently the General Assembly compromised on and approved a $20.2 billion budget for the next fiscal year. On Friday, June 29th the Governor announced she will veto the budget citing too little funding for education among other programs. Prior to the announcement, Perdue identified $117 million in “new revenue over-collections” that she advocated to be used to fill cuts to public education and other programs. Legislative leaders dismissed the idea, citing it as an “accounting gimmick”, primarily the result of early, estimated tax payments in the current fiscal year that will have to be made up for in the next fiscal year when more small businesses become aware of a tax exemption approved last year.

House Speaker Thom Tillis and Senate President Pro Tem Phil Berger released a joint statement noting that the difference between the dollars Perdue demanded and what the budget includes is a fraction of one percent of the total budget. Some of the five House Democrats who have consistently voted with Republicans on overrides indicated that they remain unsure what they would do if the budget bill were vetoed—the five met with Perdue prior the veto announcement. Leadership has indicated that if there are not enough votes, the two-year budget enacted last year will remain in place.

Click here to review a comparison of budget provisions of high importance to the Charlotte Chamber.

Update: Business Contingency Fee Audits Action Alert
The Charlotte Chamber called its members to action last week on HB462 (Contingency Contracts for Audit Assessments), legislation that would prohibit state and local government tax collectors from hiring private tax auditors who are paid on the taxes assessed. We are proud to report that the bill passed the House Commerce and Job Development Committee last week, sending the measure for a final vote on the House floor. The bill is scheduled for a final vote on Monday, July 2nd, where upon passage it would be sent to the Governor.

Take action now to protect your business from predatory auditing practices. Contact Speaker Tillis and your representative asking them to pass HB 462.

NC Health Benefit Exchange Legislation Stalled
In a landmark decision this week, the U.S. Supreme Court announced their ruling on the Affordable Care Act, President Obama’s health care reform law. The Supreme Court voted 5-4 to uphold the individual mandate, one of the most controversial aspects of the law, deeming it a tax provision and not a penalty. The court upheld the joint federal-state Medicaid insurance expansion but rejects limiting the penalties on states choosing not participate in the program.

Despite the high court opinion, Senate leader Phil Berger said the Senate would not take up legislation this year that would allow the state to meet a deadline creating a new one-stop shop to find health insurance. Senator Berger stated: “The General Assembly needs time to process and understand this mixed ruling on Obamacare.” The 2010 federal health care overhaul requires all states to have a health benefit exchange, and legislation passed the state House last year. State plans for the markets are due to the federal government by this fall. The federal government will create exchanges for states that don't have them by 2014.

Compromise Reached on Dental Practice Reforms
Following months of negotiation; an agreement has been reached on who will control the state’s dental practices. Legislation was passed in the Senate last year which gave sweeping powers to the N.C. Board of Dental Examiners to review and block contracts between dentists and dental service firms. The compromise bill still requires the Board of Examiners to come up with rules regulating the management contracts. A six-member task force, including two members connected to dental service organizations, will make recommendations to the board. The negotiated bill sailed through the House and Senate and is now on the Governor’s desk.

Chamber's Priorities Advance as Legislation Session Approaches Adjournment
The Charlotte Chamber adopted its 2011-2011 legislative agenda focused on job creation, advocating pro-business policies that deliver innovative programs and services. Several of the Chamber's priorities have had seen advancement as the session approaches adjournment:

• State Air Toxics Program Reforms: House Bill 952 would exempt some emission control sources from regulation under the state Air Toxics Program if those sources are subject to regulation under the federal Clean Air Act (Signed by the Governor)
• Regulatory Reform: Senate Bill 810 includes several regulatory efficiency goals, including changes to the Administrative Procedures Act; requires agencies to provide businesses advanced notice on audits; clarifies that state air quality regulations cannot be superimposed with state water quality regulations; lengthens the term for a solid waste permit from five years to ten years. (Ratified)
• Tax Credit Extensions: House Bill 1025 would extend tax credits that are scheduled to expire on January 1, 2014 for one year. (Signed by the Governor)
• Banking Law Reforms: Senate Bill 816 would conform state banking laws with federal statutes and give state regulators the ability to move quickly to take steps to restore a struggling bank to fiscal health. (Signed by the Governor)
• I-77 Public/Private Partnerships: House Bill 1077 would establish a pilot project for tolling the I-77 high occupancy toll project. (Passed House; In Senate Finance)

Regulatory Reform

Taxes

Transportation

Education

Job Creation