Annexation moratorium bill introduced; Senate passes two anti-gang bills

HB 2367 – Involuntary Annexation Moratorium , introduced on Tuesday, would place a moratorium on all city-initiated annexations until June 30, 2009. The moratorium, which would affect even pending annexations, is the recommendation of the House Select Committee on Annexation. Principal bill sponsors are Reps. Bruce Goforth, Paul Luebke, Nelson Dollar and Fred Steen. The bill has been referred to House Finance. If given a favorable report by that committee, it will be sent to House Judiciary II.

Annexation opponents have turned out in large numbers at the public hearings held by the committee to voice their concerns with the existing statutes and the annexation actions of cities and towns. They will be lobbying strongly for this moratorium. The League membership's long-standing core principles include strong support for the state's annexation laws, and the membership opposes a moratorium.

Action needed: Please continue to discuss this issue with your House members and 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.

Senate passes two anti-gang bills

With municipal officials and law enforcement officers looking on, the Senate unanimously approved two anti-gang bills on Wednesday. The Senate version of HB 274 – Street Gang Prevention Act (originally introduced by Rep. Mickey Michaux) would create new felony offenses for certain gang activities, including being a gang organizer, leader or recruiter; associating with a gang; threatening someone trying to get members to quit a gang; or retaliating against those who quit. It also creates a new felony to target “drive-by” shootings, and it expands an existing statute so that any deadly weapon used in the commission of certain felonies will result in an enhanced sentence, not just firearms. Any property acquired through gang activity could be seized. This bill now returns to the House for concurrence. If the House does not concur with the Senate changes to the House bill, a conference committee will be appointed to work out the differences. Expect to see discussion of increased funding for prisons and whether the final bill should have a provision allowing former gang members to expunge their records.

A new version of SB 1358 – Street Gang Prevention Act , introduced by Sen. Malcolm Graham, also passed the Senate on Wednesday. This legislation focuses on developing a strategic approach to prevent youth involvement in gangs through prevention and intervention measures. Expect discussion of the need for an adequate appropriation of funds for gang intervention and prevention programs.

The N.C. Metropolitan Coalition's gang action day activities, which included a news conference and lobbying, drew significant attention to this issue and culminated several years of work by the coalition on the legislation. Sen. Graham and Rep. Michaux spoke, as did Attorney General Roy Cooper, Chapel Hill Mayor Kevin Foy, and Charlotte Mayor Pro Tem Susan Burgess. A Governor's Crime Commission report indicates that there are more than 550 gangs in the state and nearly 15,000 gang members. Gastonia Police Chief Terry Sult noted that communities under 75,000 have twice as many gang members per capita as more urban areas. He said that with an average of 4.6 gang members per 1,000 residents, smaller communities have more gang members than police officers.

Action needed: Passage of anti-gang legislation is a priority on the League's municipal advocacy agenda. Please thank your Senate members for moving these bills forward and ask your House members to do the same. Both bills are needed, along with adequate funding, for a balanced approach to street gangs that combines stronger enforcement measures with prevention and intervention programs.

Proposals on infrastructure introduced

Securing a dedicated source of revenue for local infrastructure needs -- including water, sewer, transportation, and stormwater – remains our top priority for this two-year legislative cycle. Based on the advocacy agenda adopted by our membership, the League will continue to seek adequate permanent and dedicated sources of revenue for infrastructure needs; additional local option revenue sources that may be dedicated to infrastructure needs; and state bonds with significant funding for clean water projects and urban transportation needs.

At the recommendation of the 21 st Century Transportation Committee, HB 2363 and SB 1894 - Congestion Relief/Intermodal Transport Fund have been introduced by Reps. Becky Carney, Lucy Allen, Deborah Ross and Pricey Harrison and Sen. Richard Stevens respectively. The legislation would establish a fund for financing local government and transportation authority public transportation projects; and rail projects for improved freight service, multimodal facilities, and intercity passenger service. It also expands the local governments authorized to levy a one-half cent sales tax and vehicle rental and registration taxes for public transportation purposes.

Sen. David Hoyle has introduced SB 1754 - Infrastructure Trust Fund to create a special revenue fund within the state treasury to be used only for capital projects and to pay debt service on capital projects. The monies currently flowing to the Golden Leaf Foundation from the tobacco settlement master agreement would be redirected to the infrastructure fund, and funds could be expended only upon an act of appropriation by the General Assembly.

Action needed: We are encouraged to see these infrastructure proposals and look forward to working with legislators to secure funding for local needs. We urge you to continue talks with your legislators about your water, sewer and transportation needs.

Drought legislation introduced

Companion bills containing the Governor's plan on drought were introduced this week. HB 2499 and SB 1879 – Drought/Water Management Recommendations were recommended by the Environmental Review Commission, but several members commented that the proposal needs additional work and may be the subject of a stakeholders' process. The bills as introduced include the following provisions:

•  Removes an exemption for agriculture, so that agricultural water withdrawals over 100,000 gallons per day would have to be registered with the state.

•  Removes existing “declaration of water emergency” power from the Environmental Management Commission and shifts it to the Governor upon the recommendation of the DENR Secretary. In doing so, removes existing requirements for a request from the affected local government and for public hearings.  Requires only “consultation” with affected water systems.  Once Governor declares emergency, Secretary can order diversion of water from one water system to another.

•  Directs the EMC to adopt minimum conservation measures that must be implemented by local governments in areas designated as severe, extreme or exceptional drought.  Local governments are authorized to apply the minimum measures to all water users within their general police power jurisdiction (including those on private wells or served by private water systems).

•  Allows DENR to require weekly water use reports during drought.  Requires reports to be submitted electronically unless water system lacks the capacity to do so.

•  Requires local government water supply plans to include water audit and leak detection programs and identify existing and planned interconnections. Allows DENR to approve local water supply plans.

•  Requires metering of all uses in a water system to maximum extent practicable. Requires local governments to mandate separate meters for in-ground irrigation systems.

•  To be eligible for state water infrastructure funds, requires showing that system has leak detection program, approved water supply plan, and adequate rate structure. Gives priority to projects reducing vulnerability to drought, such as interconnection, repair of leaking water lines, and replacement of meters.

•  Prohibits use of the declining block rate structure for residential customers.

•  Allows use of gray water from sinks, tubs and showers for handwatering purposes.

•  Directs the State Water Infrastructure Commission to develop guidelines for rate structures.

•  Directs DENR to develop recommendations for water efficiency standards for fixtures and irrigation systems, to be submitted to the Building Code Council.

The League has concerns about key portions of the proposal and we will continue our discussions with legislators, the Governor's office and DENR about needed changes to the legislation. We'll share the specifics of our concerns in a future Legislative Bulletin.

Bill introduced to clarify PEG channel distributions

Our thanks to Sen. Dan Clodfelter and Reps. Paul Luebke, Harold Brubaker, Dewey Hill and Danny McComas for introducing, at the request of the League and the Southeast Association of Telecommunications Officers and Advisors, companion bills on PEG channel funding. HB 2342 and SB 1716- Supplemental PEG Support would clarify the definition of a public, educational or governmental (PEG) cable channel, a PEG channel operator and what a PEG channel must provide in programming to qualify for funding. The bill clears up points raised with the 2006 legislation that established state franchising of cable television services with cities and towns receiving a share of the sales tax on video programming in lieu of local cable franchise fees.

Another 25-year police retirement bill

Several representatives have introduced HB 2350 – Law Enforcement 25-Year Retirement , which would allow law enforcement officers in the state and local retirement systems to retire with full pension benefits at age 50 with 25 years of service. Introducers include Reps. Marian McLawhorn, Larry Bell, Tim Spear, and Ray Warren.

The League's core principles call for opposing special benefits for one class of employees and for authority for individual cities and towns to make personnel decisions based on local circumstances.

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. 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. We look forward to seeing you!

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.

ENVIRONMENT

Bill:   HB 2138

Sponsors:   Gibson (D69)

Title:   DISAPPROVE COASTAL STORMWATER RULE

Status:   House Environment

    Disapproves administrative rule 15A NCAC 02H .1005 (Stormwater Requirements: Coastal Counties) as adopted by the Environmental Management Commission on January 10, 2008, and approved by the Rules Review Commission on March 20, 2008.

FINANCE & TAX

Bill:   HB 2190

Sponsors:   Hill (D20); Cole (D65); Moore (R111); Daughtridge (R25)

Title:   MERCHANT'S DISCOUNT

Status:   House Finance

    Provides that a retailer who pays a retail sales or use tax may deduct from the amount of the tax a discount of 1% beginning October 1, 2008. Discount increases to 2% on January 1, 2010 and to 3% on January 1, 2011. Merchant's discount does not apply to local sales and use tax, scrap tire tax, white goods tax.

Bill:   HB 2193

Sponsors:   Boylan (R52)

Title:   SUSPEND COLLECTION OF THE FUEL TAX

Status:   House Finance

    Suspends state motor fuels tax for 90 days beginning June 15, 2008 or the date the act becomes law.

Bill:   HB 2239

Sponsors:   Tolson (D23); McLawhorn (D9); Warren, E. (D8)

Title:   COMMUNITY ENHANCEMENT INITIATIVE

Status:   House Commerce

    Establishes the Community Enhancement Grant Program to be administered by the Department of Commerce. Funds in the program are to be used to target economically distressed counties and provide grant funds for community and economic development projects that foster comprehensive and sustainable development that will positively impact the quality of life in targeted communities. Grants will be available to municipalities and counties throughout the state, with a priority for communities that have been designated Tier 1, Main Street, or 21st Century Communities. Projects that qualify for a grant need not receive local matching funds but must address at least one of the following: economic development competitiveness or sustainability; business or industry recruitment or retention; improvements to infrastructure; increasing local capacity to acquire economic development funding; increasing local capacity to complete economic development projects; rehabilitation or development of affordable housing; entrepreneurial development or seed funding. Directs the establishment of the Economic Transformation Pilot Program to create collaboration between the Department and East Carolina University on behalf of communities located in eastern North Carolina.

GENERAL GOVERNMENT

Bills:   HB 2252 = SB 1681

Sponsors:   HB: Weiss (D35); Lucas, M. (D42); Glazier (D45); Williams (D6)

    SB: Purcell (D25)

Title:   SMOKE-FREE MOTOR FLEET

Status:   House Health; Senate Health Care

    Prohibits smoking inside state-owned motor fleet vehicles. Authorizes local governments to prohibit smoking in any place on a passenger carrying vehicle owned by local government and assigned temporarily or permanently to local government employees, agencies, institutions, or facilities for official business.

Bills:   HB 2253 = SB 1686

Sponsors:   HB: Weiss (D35); Lucas, M. (D42); Glazier (D45); Williams (D6)

    SB: Purcell (D25)

Title:   SMOKE-FREE STATE AND LOCAL BLDG. GROUNDS

Status:   House Health; Senate Health Care

    Prohibits smoking on the grounds of state government buildings. Authorizes local governments to prohibit smoking on the grounds of buildings owned, leased as lessor, or the area leased as lessee and occupied by local government. Grounds means the area located within 50 linear feet of the building.

Bill:   SB 1675

Sponsors:   Purcell (D25)

Title:   DISAPPROVE BLDG CODE COUNCIL FIRE CODE RULE

Status:   Senate Commerce

    Disapproves administrative rule Fire Code 903.2.1.2 Group A2 Sprinklers adopted by the North Carolina Building Code Council on March 13, 2007, and approved by the Rules Review Commission on September 20, 2007.

LOCAL BILLS

Bill:   HB 2134

Sponsors:   Weiss (D35); Dollar (R36); Harrell, T. (D41)

Title:   CARY ENERGY EFFICIENCY INCENTIVE

Status:   House Local Government I

    Adds town to those authorized to adopt ordinances to grant a density bonus, make adjustments to otherwise applicable development requirements, or provide other incentives to a developer within the town and its ETJ, if the developer agrees to construct new development or reconstruct existing development in a manner that the town determines makes a significant contribution to the reduction of energy consumption.

Bill:   HB 2290

Sponsors:   Hughes (D18)

Title:   BURGAW MEALS TAX

Status:   House Finance

    Authorizes town to levy a prepared food and beverages tax of up to 1%, with proceeds to be used for travel and tourism purposes.

Bill:   SB 1692

Sponsors:   Boseman (D9)

Title:   WILMINGTON INSTANT RUNOFF

Status:   Senate State and Local Government

    Authorizes use of the instant runoff method in city elections.

Bill:   SB 1749

Sponsors:   Kinnaird (D23)

Title:   CHAPEL HILL WATER CONSERVATION STRATEGIES

Status:   Senate State and Local Government

     Allows town to regulate or prohibit lawn irrigation systems in new development that are connected to the potable water system.

TRANSPORTATION

Bill:   HB 2313

Sponsors:   Cole (D65)

Title:   EXPRESS PERMITTING REVIEW PROGRAM

Status:   House Transportation

    Authorizes DOT to develop a fee supported express review program in each highway division to provide express permit and certification reviews in order for an applicant to make a connection to the state highway system for a driveway, street, signal, drainage, or any other encroachment. DOT can use contracted engineering firms supporting each highway division to provide express permit reviews, comments, and recommendations for issuing such express permits. No new staff is to be hired for the program.