United States: North Carolina General Assembly Week In Review - August 03, 2015


Last Monday night the Senate passed HB 774, Restoring Proper Justice Act, 33-16. According to HB 744's supporters, the bill will allow executions to resume in the state. The last execution occurred in 2006.

The House voted to concur, 74-34, on Wednesday. House debate focused on the protection of manufacturing information of the drugs from public record. Members favoring the protection argued that it was good public policy. Those members likened the protection to requirement to keep names of personnel involved in the execution out of public record.

The bill was presented to the Governor on Friday. He has 10 days to either veto or sign the bill into law.

See HB 774 here.

Budget Public Comment

On July 29, the House Appropriations committee heard public comment on the Senate's version of HB 97, Appropriations Act of 2015. Testimony and presentations focused on teachers assistants, drivers education, state employee salaries and benefits, economic incentives, and the Senate's proposal to change the distribution formula for the local option sales tax.

Teachers, principals, superintendents, and teacher assistants (TAs) spoke on the need for TAs to be fully funded, as well as the need for a budget agreement soon, so that their local budgets could be more predictable.

School superintendents and AAA Carolinas spoke on the need for driver education to be funded in the state, currently the Senate's proposed budget eliminates the requirement and all funding with it.

Under the House's proposed budget, teacher assistants are funded at the 2014-15 fiscal year level, driver's education is fully funded, provides a 2% cost-of living adjustment (COLA) to retirees and a 2% salary increase to all state employees, and makes major investments in economic development programs.

The N.C. Economic Developers Association, representatives from the Charlotte Chamber and other local chambers of commerce, and local government officials spoke primarily on taxation and economic development. The Senate's proposed budget includes changes to the current distribution of the local option sales tax. The formula changes over the next four years so that, effective July 1, 2019, 20 percent would be distributed to the county and city where a purchase is made, while 80 percent of sales taxes collected would be distributed based on population. Under current law, 75 percent of the sales tax goes to the county and city where the purchase is made, while 25 percent is distributed across the state based on population. The House's proposed budget does not include this change and would leave the current distribution formula as it is today.

See Budget differences here . Review committee presentations by NCGA staff here.

Budget Negotiations

Budget meetings were taking place last week, with House and Senate Finance chairs meeting to discuss differences in tax policy and economic development programs.

Although meetings are occurring, it is almost certain the chambers will not be able to come to an agreement on the 2015-2017 budget by the August 14 deadline imposed by the Continuing Resolution (CR) passed the last week in June. The chambers will most likely have to agree to another CR, or extend the current one. After the close of the 2014-2015 fiscal year, the N.C. Office of State Budget and Management reported a surplus of $445 million, $45 million more than expected. It is uncertain as to how this will impact the budget bill or a future CR.

See HB 97 here.

Fraudulent Investments

HB 287, Amend Insurance Laws-AB, an agency bill requested by the N.C. Department of Insurance, makes technical corrections to laws governing professional employer organizations, insurance company deposits, continuing care retirement communities, health insurance external review, health insurance fiduciaries, and insurance company names. The bill also creates a study of the health insurance premium rate review process and moneys from the insurance regulatory fund.

During the House Judiciary II Committee meeting last week, the bill was amended to include a provision to help one of Rep. Dana Bumgardner's (R-Gaston) constituents. The provision allows an itemized individual income tax deduction for investors who incur losses from criminally fraudulent investment arrangements. When an individual makes financial investments, he or she receive a statement of income regarding those investments. That statement of income is used in determining the individual's tax liability. Under current N.C. law, if that investment turns out to be fraudulent, due to a Ponzi or pyramid scheme for example, the taxpayer cannot go back and reclaim taxes he or she paid on the income that never actually existed. The provision in HB 287 is set to correct this issue. According to N.C. General Assembly staff, there is a federal law that addresses this issue regarding federal individual tax liability.

Last week, HB 287 bounced from committee to the House floor and back to committee again. The House Judiciary II Committee reported the bill favorable on July 28. The bill was then calendared for the following day, but later withdrawn and re-referred to the House Finance Committee where it was given favorable report the following day. The bill now sits in the House Rules Committee.

Read HB 287 here.

Employee Misclassification Reform

On Tuesday, HB 482, Employee Misclassification Reform, was heard by and given a favorable report from the House Judiciary II subcommittee. Rep. Rick Glazier (D-Cumberland) voiced some disappointment that the bill did not contain a provision that would protect the complaining employee from retaliation. Rep. Dan Bishop (R-Mecklenburg) offered to work with Rep. Glaizer on this concern.

Rep. Glaizer also expressed concern regarding the definition of non-profits. The N.C. Center for Nonprofits testified at the committee meeting that that was an unintended consequence from the bill with regard to the workers compensation statutes but the issue could be moot if one of the regulatory reform bills, HB 760 or HB 765, were enacted.

The bill is expected to be heard by the full House Judiciary II committee this week.

Read HB 482 here.

Transportation Press Conference

On Thursday, Sens. Wesley Meredith (R-Cumberland), Ralph Hise (R-Mitchell), Michael Lee (R-New Hanover), Warren Daniel (R-Burke), and Bill Rabon (R-Brunswick), co-chairs and members of the Senate Transportation Committee, held a press conference to discuss the Senate's plan to address funding for N.C. transportation needs.

The senators believe there is a better way to address N.C. long term transportation needs than the bond Governor McCrory has proposed. The Senate's plan puts over $200 million per year in recurring funds toward maintenance priorities, ports modernization, and other projects. It also adds $139 million to repair 400 structurally deficient bridges in the next two years, $70 million for pavement preservation, and $67 million for road improvement projects.

Also last week in transportation news, N.C. Department of Transportation (NCDOT) Secretary Tony Tata resigned, citing his writing career and family as the reason. Rep. Charles Jeter (R-Mecklenburg) and NCDOT Deputy Secretary Nick Tennyson have both stated interest in replacing Tata.

Privacy/Protection from Revenge Postings

HB 792, Privacy/Protection from Revenge Postings, passed second reading in the Senate on Tuesday. The bill aims to protect the public from revenge postings online by making it a criminal offense to disclose certain images in which there is a reasonable expectation of privacy and to make indecent exposure that occurs on private premises a criminal offense.

Sen. Gladys Robinson (D-Guildford) proposed an amendment that would lessen punishments for second and third convictions for defendants under 18 years old. Senator Robinson agreed to withdraw her amendment upon the request of Sen. Buck Newton (R-Wilson). Sen. Newton objected to third reading so he and Senator Robinson could work together to perfect her amendment.

The bill has been calendared for tonight's session, August 3, 2015.

Read HB 792 here.

Film Grants

A miniseries based on the 1987 movie "Dirty Dancing" has released the $4 million it was awarded from the N.C. Film Grant program. Applications have been reopened for the returned $4 million and will be accepted through Friday, August 7.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.