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Friday Fax – Legislative Update
March 4, 2005
Now that Governor Mike Easley has released his recommended budget, the pace on Jones Street has picked up quite a bit with Appropriations Subcommittees meeting twice a day (8:30 and 2:00) with additional committee work mixed-in.
It was another busy week for NCRMA lobbyists as we continued working to find bill sponsors for NCRMA initiatives and tried to beat back legislation having a detrimental effect on retail.
Next Tuesday, the General Assembly heads to the Eastern North Carolina town of Bath to celebrate this town's Tercentennial Anniversary.
1) Methamphetamines
2) ABC Permits
3) Violent Video Games
4) Workers' Compensation
5) Habitual Misdemeanor Shoplifting to Felony?
6) Bad Check Fee
7) Wine-Tastings, Coupons and Split Case Fees
8) Board of Pharmacy v. Rules Review Commission Update
1) Methamphetamines
On Thursday morning, Attorney General Roy Cooper pushed for legislation resembling Oklahoma 's legislation which reclassifies cold medicine containing pseudoephedrine as a Class V substance that can only be sold from behind the counter in a pharmacy and requires a log to be kept of every purchase of these products. We spoke with the Attorney General immediately following the meeting and expressed our disappointment with his stance. The Attorney General responded that he was willing to continue to work on a compromise. However, a news story that ran on Thursday evening indicates the Attorney General may feel otherwise (See the story pasted at the bottom of this report)
NCRMA had several meetings with two legislators that are prepared to introduce a much more retail-friendly bill than the Attorney General would like. This legislation will impose some sales limitations and require a couple of products to be behind the counter but will also preempt local ordinances, does not require a log to be maintained, does not require these products to only be sold by a pharmacy, prohibits the sale of cold medicine and infant formula in a flea market and makes it a felony to steal more than three packages of cold medicine containing pseudoephedrine.
We also expect a bill to be introduced next week by a Republican Senator that would mirror the Oklahoma legislation described above.
2) ABC Permits
NCRMA continued discussions with legislators and legislative staff this week as we attempt to streamline the alcohol permitting process and allow the ABC Commission to address "shot houses" in dilapidated neighborhoods. Look for a bill in the next two weeks that catches the bad actors in the net without disrupting the operations of the good actors.
3) Violent Video Games
We visited a number of offices this week discussing the negative impact Senate Bill 2 would have on retailers. This legislation would make it a crime for a retailer to sell a "violent" video game to a minor and require the retailer to post signage and hand out brochures about violent video games. These have certainly been interesting discussions with some Republicans feeling like Democrats are placing them in a proverbial "family-values box" and a number of Democrats looking to Senate Leadership for guidance.
Based on United States Supreme Court and U.S. Court of Appeals decisions, the legislation is clearly unconstitutional and would penalize retailers who have attempted to do the right thing by instituting a voluntary ratings system . Purchasers will be driven to unregulated on-line retailers such as eBay. We will begin a full-court press in the next two weeks in anticipation of a hearing in the Senate Commerce Committee.
4) Workers' Compensation
Senator Dan Clodfelter (D-Mecklenberg) introduced legislation this week which would ensure that self-insured workers' compensation companies or trusts maintain adequate reserves to pay claims and requires the North Carolina Department of Insurance (NCDOI) to actually monitor these reserves. Currently, NCDOI does not adequately monitor self-insured companies reserves resulting in numerous assessments to other self-insured companies and associations. Senate Bill 319 "Workers Comp. Self Insurance Security" is supported by NCRMA , which maintains a self-insured workers' compensation fund, as well as Lowes, Food Lion, Duke Energy, Progress Energy and Weyerhaeuser.
5) Habitual Misdemeanor Shoplifting to Felony?
Rep. Tim Moore (R-Cleveland) introduced House Bill 423 to address habitual violations of shoplifting. Under Representative Moore's bill, a person who is 18 years of age and has been convicted of five or more prior misdemeanor larceny convictions (stealing less than $1,000 worth of merchandise) is guilty of habitual misdemeanor larceny. A person who commits this crime is guilty of a Class H felony.
6) Bad Check Fee
NCRMA has been quietly meeting with legislators to test the waters about raising the bad check fee from $25 to $30. We have been receiving mixed reactions from some legislators who have a sob story of the little lady who forgot to subtract the service charges and then bounced a check. We will keep working on this issue next week.
7) Wine-Tastings, Coupons and Split Case Fees
NCRMA will be meeting with interested parties on these three issues beginning today. It appears that NCRMA has reached an agreement with the Beer and Wine Wholesalers on wine tastings and will present this compromise to the ABC Commission later today. The Beer and Wine Wholesalers will be presenting new proposed language allowing for coupons on alcohol later today as well.
On Monday, NCRMA hosted a meeting with the Independent Wine Dealers Association, the North Carolina Convenience Store Association and the North Carolina Restaurant Association to discuss a request to the ABC Commission that the Commission mandate that wine wholesalers charge a fee to split a case of wine. We will host a subsequent meeting on Monday before the Commission hearing next Friday. NCRMA is adamantly opposed to this request.
8) Board of Pharmacy v. Rules Review Commission Update
The North Carolina Court of Appeals will hear oral arguments on the case between the North Carolina Board of Pharmacy and the North Carolina Rules Review Commission on April 19, 2005 at 9:30 a.m.
This case concerns whether the Board of Pharmacy has the authority to require pharmacies to provide mandatory work breaks and whether the Rules Review Commission is an unconstitutional separation of powers. NCRMA organized the "friend of the court" briefs on both of these issues.
'TIL NEXT WEEK
Fran Preston
Andy Ellen
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