Short session convenes

The 2008 session of the General Assembly convened on May 13 with talk of taxes and the state budget.  Governor Mike Easley presented his proposed revisions to the biennial budget, which included increases to the taxes on alcohol and cigarettes to finance spending for mental health and raises for teachers.  His plan also calls for ending the transfer of $172 million from the Highway Trust Fund to the General Fund.  Easley's budget includes spending cutbacks, primarily through reductions of estimated spending on Medicaid and freezing payments to health care providers.

But House and Senate leaders expressed opposition to tax increases.  House Speaker Joe Hackney said that legislators would be looking for ways to tighten spending and that this is not the year for tax increases.  Senate President Pro Tem Marc Basnight also said he opposed tax increases.

This is a “short” session year, so matters that can be raised are limited by the eligibility rules.  Generally speaking, eligible bills will include those affecting the state budget, bills that passed one house in 2005, study recommendations, non-controversial local bills, and retirement bills. 

While revising the state's biennial or two-year budget will be the major task for this session, legislators are expected to take up a number of issues of critical importance to cities and towns.  Things happen fast in a short session, so now is the time to be contacting your legislators to let them know your concerns.

Annexation moratorium proposed

The House Select Committee on Annexation voted on April 23 to recommend a moratorium on all city-initiated and all satellite annexations, including those currently pending.  The moratorium, if adopted by the General Assembly, would remain in place until June 30, 2009.  The committee has been meeting since January, held several public hearings to receive comments on the state's annexation laws, and is expected to approve the actual bill language for the proposed moratorium on Monday, May 19.

The League membership's long-standing core principles include strong support for the state's annexation laws, and the membership opposes a moratorium.  Municipal officials are urged to contact their representatives to ask them to oppose a moratorium.  Officials in cities and towns with pending annexations should explain the effects a moratorium would have in their particular circumstances.

Local bill deadlines:

May 21 - legislator submits to bill drafting

May 28 - bill introduced or filed for introduction

Town Hall Day on June 4

The League's annual legislative action day will be held on Wednesday, June 4.  House Speaker Joe Hackney will speak at the first Town Hall Day briefing at 10:30 a.m., and Senate leaders have been invited to speak at the second briefing at 1:00 p.m.  There is still time to register for Town Hall Day by going online to www.nclm.org.  Please make sure your city or town is represented at this important event.  Town Hall Day events include the legislative briefings and a reception at 5:00 p.m., with plenty of time in between to meet with your legislators and observe the work of the General Assembly.  These events will be held at the Local Government Federal Credit Union Conference Center, Quorum Center, 323 West Jones Street in Raleigh, adjacent to the League offices.  See the League's website for details.

Transportation infrastructure

The 21st Century Transportation Committee made several interim recommendations for the session earlier this week.  Highlights include ending the $172 million Highway Trust Fund transfer and using the proceeds to provide funding for a proposed transportation bond (up to $1.8 billion) and gap funding for toll roads.  Securing additional resources for transportation is another municipal priority, but we believe that achieving legislative approval for a bond issue will be difficult this year.  We urge officials to continue talks with their legislators about transportation needs. 

Inspection prohibition still pending

Legislation we opposed passed the Senate last session and is eligible for further consideration this year.  SB 1507 – Housing Conditions/Inspections would prohibit local government periodic inspection programs and require “probable cause” to inspect any residential or nonresidential building.  It would broadly preclude routine inspections for unsafe, unsanitary or hazardous conditions that may exist in housing, as well as in stores, schools, day care centers, churches, factories, offices and other buildings.  Local governments are given the duty and responsibility to protect the public by enforcing the state's building and fire codes.  In fact, the state fire code has for some time required periodic inspections by local governments.  Local governments are also authorized to protect the public by enforcing minimum housing codes and, with the adoption of legislation last session, minimum nonresidential codes.  SB 1507 is currently assigned to House Commerce.

Please let all your House members, especially those on House Commerce, know that you vigorously oppose this effort to erode the ability to perform inspections of property in order to ensure the health, safety and welfare of the public. 

Members of the House Commerce Committee are:

Chair:  Rep. Margaret Dickson; Vice-Chairs:  Reps. Becky Carney, Bill Daughtridge, Earline Parmon, Edgar Starnes, Winkie Wilkins; Members:  Reps. Lucy Allen, Cary Allred, Curtis Blackwood, Van Braxton, Larry Brown, Debbie Clary, Nelson Cole, Tricia Cotham, Bob England, Jean Farmer-Butterfield, Phillip Frye, Mitch Gillespie, Bruce Goforth, Ty Harrell, Bryan Holloway, Bill McGee, Wil Neumann, Bill Owens, Louis Pate, Garland Pierce, Ray Rapp, Karen Ray, Ruth Samuelson, Fred Steen, Cullie Tarleton, Edith Warren, Ray Warren

Gang prevention push

Passage of legislation to address street gangs is a priority issue for municipal officials.  Gang problems are on the rise throughout the state, and municipalities of all sizes are impacted.  HB 274 – Street Gang Prevention Act , sponsored by Rep. Mickey Michaux, passed the House last session and was referred to Senate Appropriations.  SB 1358 , a similar bill introduced by Sen. Malcolm Graham, is also in that committee.  See below for details about how you can visit the Legislature on May 21 to support gang prevention legislation.

Drought legislation anticipated

The Governor has recommended changes intended to address drought concerns and assist in making the state “drought-proof” in the future.  These proposals include increasing the Governor's powers in a water emergency, an increased state role in setting minimum mandatory conservation measures, and a prohibition on declining block utility rates.  The Environmental Review Commission is expected to recommend some form of the legislation at its meeting on Monday, May 19.

Coastal stormwater negotiations underway

A bill has been introduced to disapprove administrative rules that would impose more stringent stormwater requirements in the 20 coastal counties.  HB 2138 – Disapprove Coastal Stormwater Rule would disapprove rules adopted by the Environmental Management Commission in January of this year.  A stakeholders' group has been meeting in anticipation of the bill, and it is likely that legislation will either craft a compromise or postpone the effective date of the changes to allow the issue to be settled in the 2009 session.  The League is participating in the stakeholders' process, and you may contact contact League staff members Anita Watkins, awatkins@nclm.org , or Kim Hibbard, khibbard@nclm.org , to let them know your municipality's position on the coastal stormwater rules.

Jordan Lake status

We have received several inquiries about the status of administrative rules applicable to the Jordan Lake watershed.  The rules are not eligible for consideration in the 2008 legislative session.  A revised version of the rules was approved by the Environmental Management Commission on May 8, and they are now subject to review by the Rules Review Commission.  If approved by the RRC this year, they will then be eligible for consideration by the General Assembly when they convene in January of 2009.  The League has been working with the affected cities throughout the rulemaking process to identify issues of common concern, as well as to identify issues that are likely to set a negative precedent for other parts of the state.  We have focused on cost, implementation, and the requirement that cities may have to retrofit existing development with stormwater controls.  We will continue to advocate for changes to the appropriate decision-making body as this proposal makes its way through the process. 

Gang Legislative Action Day on May 21

The N.C. Metropolitan Coalition, in conjunction with Sen. Malcolm Graham, N.C. Attorney General Roy Cooper, and metropolitan area police chiefs, will hold a news conference on May 21 to urge legislators to pass gang legislation this session.  The coalition, a League affiliate of the state's larger cities and towns, invites all municipal officials to attend the news conference and afterwards lobby their legislators to urge support for the legislation. The news conference will be held at 10:00 a.m. in the Legislative Building. Officials are welcome to park at the League offices, just a couple of blocks away from the Legislative Building. Please contact Meenal Khajuria, assistant director of the Metropolitan Coalition, mkhajuria@nclm.org or (919) 715-3911, if you plan to attend or need more information.

The ins and outs of the legislative process

With the start of a new session, here are a few reminders about getting information about what is going on in the General Assembly.

• The Legislative Bulletin is published weekly during the session.  The primary distribution is by email, but one copy is mailed to each member city and town.  If you know someone who wants to receive the bulletin, send an email message with the individual's name, municipality and email address to leaguebulletin@nclm.org .
• If you would prefer to get a printed copy mailed to you each week, you may send an email with the information to leaguebulletin@nclm.org or call the League office at 919 715-4000.
• The General Assembly website has a great deal of information about pending bills, enacted legislation, committee meetings, House and Senate members, and related information.  Go to www.ncleg.net and you can check on the status of a bill by entering the bill number.  You then will see whether a bill is in committee, has passed the House or Senate, or is scheduled for debate.  You can also print a copy of the latest edition of the bill.
• The daily calendars are on the site – these detail the bills that will come up during the House or Senate session that day.
• House and Senate sessions are broadcast over the Internet and you can listen to the sessions as well as some committee meetings.  Look under “audio” on the website.

Following are some of the bills that were introduced or acted upon this week.  If you need a copy of these or any other bills, please contact the Legislative Printed Bills Office at 919-733-5648 or the League office.  Remember that bills and legislative calendars are now available on the Internet at http://www.ncleg.net .  Please contact the League staff if you have any particular interest or concern regarding any piece of legislation.

FINANCE AND TAX

Bill:   HB2097
Sponsors:   Gibson (D69); Goforth (D115); Lewis (R53); Harrell, J. (D90)
Title:   REPEAL TRANSFER TAX
Status:   House Rules
Repeals Subchapter X (Article 60) of G.S. Chapter 105 (authorization for counties to levy a land transfer tax subject to referendum). Repeal effective when the act becomes law.

Bill:   HB2112
Sponsors:   Allred (R64)
Title:   HOMESTEAD EXEMPTION/$30K/REIMBURSEMENT
Status:   House Aging
Increases the income limit to qualify for the Homestead Exclusion from $25,000 to $30,000 effective July 1, 2009, and changes how the income is determined.

LOCAL BILLS
Bill:   HB2084
Sponsors:   Coates (D77); Steen (R76)
Title:   LANDIS ANNEXATION
Status:   House Local Government II
For area annexed by legislative act in SL 2007-139, changes effective date from 9/30/08 to 12/31/10.

Bill:   HB2114
Sponsors:   Hill (D20)
Title:   BOLTON BOUNDARY ADJUSTMENT
Status:   House Committee Loc. Government I
Blank Bill

Bill:   HB2132
Sponsors:   Harrell, J. (D90)
Title:   MOUNT AIRY DEANNEXATION
Status:   House Local Government I

Removes described area from the town's corporate limits.

Bill:   SB1602

Sponsors:   Soles (D8)
Title:   CASWELL BEACH/BUILDING HEIGHT LIMIT
Status:   Senate State and Local Government
Provides that no building erected within the corporate limits of the town may have a height that exceeds the limitation provided unless erected before the effective date of the act. The vertical distance shall not exceed the higher of 26 feet above the regulatory flood protection elevation or 35 feet above the mean elevation.