Monday, July 9, 2012
July 9, 2012 Legislative Update

Legislators Return Home After Adjourning 2012 Session
After a long day (and night) of deals, debate and overrides, the 2011-12 Legislative Session officially adjourned Sine Die on Tuesday, July 3rd. The adjournment marked the end of the first session in over a century in which Republicans had control of both chambers of the General Assembly. Most of the heated partisan work, however, was done the night before with legislators taking up override votes on Governor Perdue’s vetoes of the state budget, Racial Justice Act amendments and fracking. All three were overridden. The actual final hours of session were anti-climactic. The Senate had finished their business in the early hours of the morning and the House only had a handful of bills left to finish before adjourning including two “Technical Corrections” bills that included bargaining provisions on the veto overrides.

In interviews following adjournment, House Speaker Thom Tillis and Senate President Pro Tem Phil Berger praised legislation passed by the Republican majority. They cited medical malpractice reform, tort reform, worker’s compensation changes, annexation reform and the successful override of eleven of Gov. Perdue’s vetoes as major achievements that should lead to more economic growth in North Carolina.

General Assembly Overrides Governor’s Vetoes

  • Budget
    Following the General Assembly approving a compromised $20.2 billion budget for the next fiscal year, the Governor vetoed the budget citing too little funding for education among other programs. Before adjourning both the House and Senate overrode the veto, putting the budget adjustments into law. The Senate, which holds a veto-proof majority, was able to easily override Perdue’s veto. The House, needing only 72 votes to override, managed to muster 74 votes, including six Democrats. This year’s budget override saw some new Democratic faces join the Republicans in the veto override vote, many of whom said they did not want to deny the teacher and state employee raises for another year. The six Democrats who voted for the override were: Reps. Marcus Brandon, William Brisson, Jim Crawford, Dewy Hill, Darren Jackson and Marian McLawhorn.

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

  • Shale Gas Development
    On Sunday, July 1st, Governor Perdue vetoed S820, Clean Energy and Economic Security Act; legislation that authorizes the state to lay the framework for hydraulic fracturing. Just 36 hours later, the North Carolina legislature overrode Perdue’s veto. The Senate easily overrode the veto with a veto-proof majority. The House, however passed the veto override with the bare minimum of votes needed (72-47). Some controversy ensued when Rep Becky Carney (D-Mecklenburg) voted “yes” but then said her vote was a mistake and did not intend to cast the key vote that overrode the governor’s veto. With Rep Carney’s vote, there were a total of six House Democrats who voted for the override: Reps Susi Hamilton, Kelly Alexander, Rodney Moore, Bill Brisson, and Dewey Hill.

    Click here to read more on S820, the Clean Energy and Economic Security Act.

Action Alert Update: Legislation on Contingency Fee Audits PASSES
The Charlotte Chamber called its members to action on HB462 (Contingency Contracts for Audit Assessment), 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 both the House and Senate before the General Assembly adjourned. The legislation is now on the Governor’s desk for her consideration. Perdue has until August 2nd to sign, veto or let the legislation become law.

Legislators Pass Key Education Reform Provisions
Within the final budget and other legislation, several education provisions successfully passed the General Assembly this session:

  • 3rd Grade Reading: Ensures every student can read at or above grade level by the end of 3rd grade.
  • Lateral Entry Program for Teachers: Streamlines the lateral entry program to recruit recent graduates of colleges and universities and mid-career professionals as teachers.
  • Flexible School Calendars: Gives the state’s school district the ability to set yearly schedules that meet for 185 classrooms days or 1,025 hours beginning in 2013.

Update: Chamber's Legislative Agenda
The Charlotte Chamber adopted its 2011-2012 legislative agenda focused on job creation, advocating pro-business policies that deliver innovative programs and services. Several of the Chamber's priorities successfully passed during the 2012 legislative session. Those priorities with updates before adjournment include:

  • I-77 Public/Private Partnerships: House Bill 1077 would authorize the Department of Transportation to enter into public-private partnerships. (Ratified)
  • Film Tax Credits: Would extend the state’s film tax credits through 2015. (Ratified)
  • Contingency Audits: Would prohibit state and local government tax collectors from hiring private tax auditors who are paid on the taxes assesse (Ratified)
Charlotte Chamber’s bill tracking list

Regulatory Reform

Bill Number Description Tracking
H952 State Air Toxics Program Reforms Ratified; Signed by the Governor
S810 Regulatory Reform Act of 2012 Ratified
H954 ENR Reports Consolidation Passed House; In Senate Environment
S816 Banking Law Modernization Act Ratified; Signed by the Governor
S851 Board & Commissions Efficiency Act Passed Senate Program Evaluation; In Senate Finance
H005 Local Deannexations Ratified
H925 Annexation Reform 2 Ratified
H1043 Extra Territorial Jurisdiction Restrictions In House Government
H462 Contingency Contracts for Audits/ Assessments Ratified

Taxes

Bill Number Description Tracking
S824 Expedited Rule Making for Forced Combination Ratified; Signed by Governor
H1025 Extend Tax Credit Provisions Ratified; Signed by Governor
H1015 Economic Development/Finance Changes Ratified; Signed by Governor

Transportation

Bill Number Description Tracking
H142 Caps State Gas Tax at 37.5 Cents Passed House; In Senate Rules
H1077 Increase DOT Public-Private Partnerships Ratified
H1145/S915 Public Infrastructure Oversight Commission In House Rules/In Senate Rules

Education

Bill Number Description Tracking
S795 Excellent Public Schools Act Passed Senate; In House Education (Provisions passed in budget)

Job Creation

Bill Number Description Tracking
H116 Small Business Jobs Credit House Commerce
H1117 Enhance R&D Tax Credit for Small Business House Commerce
H1118 Small Business Start-Up Tax Relief House Commerce
Posted by: Kerri Bruke, McGuire Woods Consulting, LLC @ 12:00:00 am 
 

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