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Raleigh, North Carolina
March 23, 2007
703 NEW BILLS were introduced just this week. Now 8 weeks into session, 2,498 bills have been introduced in North Carolina . The General Assembly's bill-drafting office continues to be snowed under with ideas that legislators want to file. More than 500 bills were filed alone in the Senate this week. Bill drafters have seen a 36 percent increase in bill requests compared to two years ago. The demands from legislative staff prompted the Senate this week to delay its final major bill filing deadline until next Tuesday. All bills were initially supposed to be filed by Wednesday. The House "General" bill filing deadline is still set for April 10 and crossover deadline (the date by which a bill must have passed the chamber of introduction in order to remain in play) remains set for Thursday, May 1, 2007.
We will continue to receive a long list of newly filed bills that we will present to you, asking for your input as to whether or not any of the bills are of interest to your company, and whether you want us to amend, pass or kill. Please read through the list of bills introduced this week at the end of this weekly review and provide input for us on how these issues do or do not affect you.
In other political news, Tricia Cotham from Mecklenburg County was sworn into office this week - taking the 100th District House seat left open by the resignation of former House Speaker Jim Black. Cotham is an assistant principal at East Mecklenburg High School and at age 28 becomes the youngest lawmaker in the General Assembly. Also, as many as seven people have lined up to replace Senator Jeanne Lucas, who died earlier this month after battling breast cancer. By law, the Durham County Democratic Party's executive committee will choose Lucas' replacement, who Governor Mike Easley will then appoint.
Your staff ran ragged this week monitoring the massive number of bills being filed, working to ensure that our initiatives were filed and meeting with legislators in preparation for the bills that were already scheduled for committee hearings. Catch up on our whirlwind week in North Carolina with the summaries below.
Your Week in Retail at the NCGA:
1. Violent Video Games - Meetings with leadership this week
2. Organized Retail Theft Legislation - Introduced in Senate this week
3. Duty to Report Child Pornography - On hold in Committee
4. Cigarette Stamp Tax - Filed in the Senate this week
5. Beer and Wine Coupons Legislation - Introduced in Senate this week (SB 1478)
6. Work Opportunity Tax Credit (WOTC) - Introduced in Senate this week
7. Bottle Bill - Coalition met yesterday
8. Energy Efficiency - Coalition meeting cancelled today, organizing meeting for next week
9. Smoking Ban - Passed House Judiciary committee
10. Retail Bills of Interest Filed this Week - (PLEASE REVIEW)
1. VIOLENT VIDEO GAMES -- Sally Jefferson and Scott Young with the Entertainment Software Association (ESA) joined your staff early this week for a series of very worthwhile meetings with key legislators. Our schedules were packed on Monday and Tuesday explaining the problems that lie within Senate Bill 87. SB 87 was introduced by Senator Julia Boseman (D-New Hanover) and would make it a crime for a retailer to sell a "violent" video game to a minor and would require a retailer to construct a separate area of their store to display "violent" video games.
Nine states have passed similar measures and all nine states have seen these laws struck down as unconstitutional by federal courts. One of those nine states, Illinois , recently paid merchants and video game manufacturers in excess of $500,000 in legal fees. On top of the constitutional issues with the legislation, no one has yet to explain how a retail clerk is supposed to determine which games are "violent" and which games are not "violent" without playing the game in its entirety and then making a subjective decision. What one retail clerk may deem "violent" in a game another may not find it "violent" at all.
In our meetings with Senate Majority Leader and Rules Chairman Tony Rand (D-Cumberland) and Judiciary Chairman Martin Nesbitt (D-Buncombe) their concerns were expressed that exposure to violence creates a societal problem but was interested in the steps that ESA has taken to enforce the ESRB ratings system and to inform parents about what games are and are not appropriate for children. While most legislators recognize the constitutional problems with the bill, they also admit that a vote against the bill would be difficult to explain to their constituents. Senator Nesbitt said that if the bill comes to his committee, it will receive a thorough hearing. We spent some time with Senator Boseman on Tuesday morning and she was more open to listening to our concerns, however, despite the bill's unconstitutionality, we continue to anticipate a push from Senate leadership to get this bill through the Senate chamber just as we experienced last session. We met with many House members, including House Speaker Joe Hackney (D-Orange) as well as two of the House Judiciary Chairs, Representatives Deborah Ross (D-Wake) and Dan Blue (D-Wake) gearing up for a battle in the House.
2. ORGANIZED RETAIL THEFT (ORT) -- This week, Senator John Snow (D-Cherokee) introduced SB 1270: AMEND LARCENY LAWS. This is an Association initiative and is an omnibus package that seeks to address Organized Retail Theft in North Carolina. A more detailed explanation of the bill can be found below in the section on bills introduced this week or you can link to the bill at: http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1270v0.html
As previously mentioned, Senator Fletcher Hartsell (R-Cabarrus), Judiciary II Chairman invited us to present ORT issues to his committee earlier this month. We provided committee members with background information and suggested ORT legislation on the issues of: retailer-provided property for sting operations, reducing the larceny threshold, switching of bar codes on products, utilizing exit doors, removal of security devices, larceny of infant formula and the aggregation of theft amounts.Senator Hartsell appointed a subcommittee to study ORT with Senators John Snow (Chair), Stan Bingham (R-Davidson), Eddie Goodall (R-Union), Ed Jones (D-Halifax) and Bob Atwater (D-Chatham).
3. FILM PROCESSING/REPORTING OF CHILD PORNOGRAPHY -- Your staff has spent an significant amount of time working with the Attorney General's Office and bill sponsors on the House and Senate bills that make it a duty for a retailer with a film processing and/or developing element or computer technicians to report child pornography.
We met with the Attorney General's office last week after we requested some changes be made to address some store operations issues with their bill, to ensure criminal and civil immunity for reporting extended to the retailer as well as the employee and to emphasize that reporting of this activity should be a duty but that failure to report should not result in a criminal penalty. The Attorney General's office agreed to make all of the changes we requested including deleting subsection (b) which would have included an infraction and a $250 penalty for failure to report child pornography. On Monday afternoon, we seemed to have taken another step back as one of the House bill sponsors insisted on a criminal penalty. As the bill placed the language in Chapter 14b, even the absence of penalty language defaulted back to a Class 1 Misdemeaner since it was in criminal statute. After much debate and explanation with the bill sponsors, legislative staff and the AG's office, we were able to find a solution in putting the statutory language in another chapter.
HB 27 was heard in the House Judiciary II committee on Thursday, Chaired by Representative Dan Blue (D-Wake). Representative Karen Ray (R-Iredell) presented a proposed committee substitute. The new language in the committee substitute addressed all of our concerns in that:
1) You have the option of filing a report with either the hot line or with local law enforcement;
2) Retailers are under a duty to report child pornography rather than facing a criminal penalties for failure to report;
3) A person in your company who observes such child pornography may report the activity to a supervisor to report;
4) A person or a third-person contractor who reports child pornography receives criminal and civil immunity if the report is made in good faith;
5)
Chairman Blue felt that some of the language in the bill was unclear and needed further tweaking. The bill was displaced and will be heard again at a future committee hearing. HB 27 was sponsored by Representatives Karen Ray, Bruce Goforth, Rick Glazier and Tim Spear. Attorney General Roy Cooper is also pushing Senate Bill 132, "Protect Children from Sexual Predators Act" which includes almost identical language on the duty to report. We have remained in communication with the Senate sponsors on our concerns as well.
4. CIGARETTE TAX STAMPS -- Senator Fletcher Hartsell (R-Cabarrus) filed SB 1411 which would require that North Carolina tobacco wholesalers affix an excise stamp to cigarettes prior to distribution. This bill was introduced at the request of Philip Morris and has the effect of causing retailers who act as their own wholesalers a tremendous amount of money. Lorillard and RJ Reynolds oppose the legislation. Further explanation of the bill is provided in the section on introduced bills below.
Currently, NC doesn't require a tax stamp to be affixed to cigarettes sold in NC. If we have to start affixing stamps to the cigarette packs, we will have to maintain a very costly stamp inventory. The stamping of cigarettes is far from being a perfect process, costs additional employee time and will make it much harder for trucks to leave on time with the cigarette orders.
5. BEER AND WINE COUPONS -- Senator Ed Jones (D-Halifax) filed SB 1478 this week would allow the use of retailer-issued alcohol coupons in North Carolina. State Alcoholic Beverage Control Commission rules now prohibit cents-off coupons or free beverages as part of alcohol advertising. This bill would allow a retailer to offer a discount coupon to purchase beer and wine or allow a customer to use the buyer's membership card, discount card or loyalty card to receive the discount. Free alcoholic beverages still wouldn't be permitted and parameters would be set to address concerns expressed about underage drinking. The change wouldn't apply to state ABC stores, which sell liquor and where manufacturers sometimes offer instant coupons on their products.
We fought an uphill battle on coupons last session with both the legislature and the ABC Commission but despite our best efforts, we were unable to succeed in passing legislation or getting a new rule from the Commission. We had the votes but not the political stars in alignment to gain passage. We have already met with several legislators on this issue and hope to have a better star alignment this session.
Link to SB 1478: http://www.ncga.state.nc.us/gascripts/BillLookUp/BillLookUp.pl?Session=2007&BillID=S1478
6. WORK OPPORTUNITY TAX CREDIT (WOTC) -- Senator David Hoyle (D-Gaston) has introduced SB 1145 which would make North Carolina employers eligible for a tax credit of up to $2,000 of wages paid to employees meeting certain criteria and who are employed at least nine months. After business incurred the increase in the minimum wage which passed last session, we have explained to legislators that many of the hires that could create this tax credit for an employer would be hired at or near the minimum wage. Representative William Wainwright (D-Craven) still plans to file the bill in the House.
An employer could receive the credit for hiring workers who:
1) Receive Temporary Assistance to Needy Families
2) Are a veteran and a member of a family that has received benefits under the Food Stamp Program
3) Are between the ages of 18 and 24 years old when hired and a member of a family that has received benefits under the Food Stamp Program and
4) Received benefits from the Supplemental Security Income
5) Has a felony on their record
7. BOTTLE DEPOSIT BILL -- Senator Doug Berger (D-Franklin) is working feverishly to garnish support for SB 215, "Litter Reduction Act of 2007." The legislation is most akin to the California-model but has many moving parts and is fairly complex as far as bottle bills go. His bill imposes a $0.10 deposit per container which would put North Carolina on the map with one of the most expensive Bottle deposits/taxes in the country. Berger is very optimistic regarding the potential for this bill to pass with new House leadership and a House member, Representative Lucy Allen (D-Franklin), chairing the House Environment committee.
Yesterday afternoon, we were happy to host a coalition meeting in our conference room of the various manufacturers and trade association lobbyists who are working in opposition to SB 215. The group assembled to hear a special presentation by the staff of the American Beverage Association and Northbridge Environmental, who flew into Raleigh specifically to brief the lobbyist coalition on this issue.
Much of our time was spent in learning the background on the issue and what has worked in other states. The remainder of our time was focused on developing strategy and messaging for the battle. The lobbyist for the American Beverage Association emphasized that a strong grassroots effort from the grocery industry IS KEY; because our grocers will have the greatest credibility with voters and lawmakers; she said: "If the grocery industry will write letters, make phone calls, if they will speak out against the bottle bill, legislators WILL listen."
Thank you to those North Carolina grocers who have sent copies of the letters they have written to your legislators on this issue. If you have not yet written to your legislators, please do so this weekend. Legislators need to hear first-hand from you that you are strenuously opposed to the bottle bill - SB 215. Please tell them how the bottle bill would impact your business. Your opinion does matter to a legislator: the more letters that legislators receive from the grocery industry, the more likely they are to vote against the bill.
8. ENERGY EFFICIENCY -- As we reported last week, Senator Charlie Albertson (D-Duplin) has introduced Senate Bill 3, Promote Renewable Energy/Energy Efficiency which would require the utilities to achieve a certain percentage of their power from renewable resources, or Renewable Portfolio Concept (RPC). http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S3v1.html
Although the utilities have been able to defeat the legislation each session, they have been facing considerable pressure from legislative leaders (this year the environmentalists' favorite legislator was elected Speaker of the House) to work with the environmental community on compromise legislation. The impacted parties were scheduled to meet again this morning in a continued effort to come up with a compromise bill, however, at the last minute, the meeting was postponed until March 30 at 10:00am.
Your staff is also in the process of coordinating a meeting with impacted members to hear a thorough explanation of the issues and the background of what has taken place with the negotiations to this point. We are hopeful that this meeting can be scheduled for next week. Stay tuned to your email.
9. SMOKING BAN -- The House Judiciary 1 Committee voted 9-4 in favor of Representative Hugh Holliman's (D-Davidson) bill: HB 259 - Prohibit Smoking in Public Places. The bill discussion was continued from last week's committee debate and the bill had been amended to further define private clubs as those private clubs that are non-profit. Holliman -- whose sister died of lung cancer and who has fought the disease himself - introduced this legislation which would ban smoking in public places and all places of employment. It exempts private residences, retail or wholesale tobacco shops, tobacco manufacturing facilities including their offices, designated smoking rooms in hotels, private clubs, and research facilities conducting experiments on smoking. A watered-down version, requiring restaurants to set aside half their dining space for nonsmokers, was defeated in the full House. As written, the bill would prevent a business owner from providing any enclosed space where employees could smoke protected from the weather. However, employees would be able to go outside to smoke. The bill will now go to the House floor for a vote. The Senate Judiciary 1 committee was scheduled to hear legislation this week that would allow local smoking ordinances but in light of the movement of this legislation in the House, pulled the bill from the committee calendar until they know what further action the House does or does not take on the statewide prohibition.
10. BILLS OF INTEREST INTRODUCED THIS WEEK
House Bills Introduced:
HB 898 - Expunge Nonviolent Felony/Youthful Offenders - Representatives Alice Bordsen (D-Alamance) Jim Crawford (D-Granville), Larry Hall (D-Durham) and Earl Jones (D-Guilford) - This legislation would allow a first offender person to expunge their records if the person was under the age of 18 at the time of the offense and if the offense was a non-violent felony. In the past, retailers have worried that they may unknowingly hire a felon.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H898v1.html
HB 901 - Health Care for All - Representatives Verla Insko (D-Orange), Linda Coleman (D-Wake), Pricey Harrison (D-Guilford) and Jim Harrell (D-Surry) - This bill would require a vote in the November, 2008 Election to amend the North Carolina Constitution to require the General Assembly to enact a plan by July 1, 2009 to ensure every North Carolina citizen has access to health care by 2013. Much is left unknown in this bill as to how such a system would be paid for and by who.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H901v1.html
HB 952 - Franklin County Local Option Sales Tax - Representative Lucy Allen (D-Franklin) - This bill would grant authority to the Franklin County Board of Commissioners to hold a referendum to impose an additional ½ cent local sales tax to fund school construction.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H952v1.html
HB 953 - Regulate Sales/Glass Vials & Cigarette Wrap - Representatives Mark Hilton (R-Catawba), Ray Warren (D-Alexander), Kiser (R-Lincoln) - This legislation would require retailers selling glass vials that are two to six inches long and one-eighth inch to three-fourth inch in diameter that may be used as drug stems or rolling papers used for smoking tobacco to sell these items from behind the counter and maintain a purchase log that is similar to the log required under the law regulating the sale of pseudoephedrine. The glass vials often contain a silk rose that is removed and then used to smoke crack cocaine or methamphetamine.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H953v1.html
HB 973 - Mental Health Equitable Coverage - Representatives Martha Alexander (D-Mecklenburg), Hugh Holliman (D-Davidson), William Wainwright (D-Craven), Verla Insko (D-Orange) - This bill would mandate that mental health treatment be covered under health insurance plans. Past studies have shown that mandating this coverage would further increase the cost of health insurance.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H973v1.html
HB 1006 - Ballot Initiatives to Amend the North Carolina Constitution - Representative John Blust (R-Guilford). This legislation would amend the North Carolina Constitution to allow for the initiation of a referendum on proposed amendments to the constitution by petition signed by qualified voters. In order to get an initiative on the ballot, there must be petition containing at least 20% of the number of votes for all candidates for Governor at the last gubernatorial election with no more than 15% of the signatures coming from any one congressional district. Ballot initiatives have been a nightmare for retailers in other states on issues like the minimum wage.
http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H1006v0.html
Senate Bills Introduced:
SB 946 - PSEUDOPHEDRINE SALES/ELECTRONIC RECORDS - Senator Jerry Tillman (R-Randolph). Requires the commission for mental health, developmental disabilities, and substance abuse services to establish and maintain an electronic purchase log of pseudoephedrine sales and to require retailers of pseudoephedrine products to report consumer sales of those products to the commission. This bill requires that every purchaser sign a form about the validity of the following information that is to be maintained by electronic record: (1) date of the transaction; (2) name, date of birth, and address of the purchaser; (3) type of identification provided; and (4) amount and name of the compound purchased (current law requires that the purchaser's name and address and the number of grams of the product purchased and the purchase date to be entered into a record of disposition). The log established by MH, DD and SA must be kept for two years and is subject to random and warrantless inspection. This bill would be effective October 1, 2007. We thought we had Tillman talked out of this bill but he spoke with a couple of his local independent and chain pharmacists who were told him it was fine. It appears that this legislation if enacted would make it even harder to determine if a pharmacy is in compliance with both the State and Federal laws regulating pseudoephedrine.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S946v1.html
SB 969 - STATUTE OF REPOSE/PRODUCTS LIABILITY ACTIONS - Senator Janet Cowell (D-Wake). This bill provides that products liability cases must be brought within 15 years after the date of initial purchase, deleting the current 6-year period and would be effective July 1, 2007.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S969v1.html
SB 970 - PUBLIC SAFETY EMPLOYER/EMPLOYEE COOP. ACT - Senator Janet Cowell (D-Wake) - This bill allows public safety officers employed by local governments to form an association or labor organization. When an organization demonstrates it represents more than half the non-supervisory public safety officers, the organization may advocate for their members, be present at interrogations of members, meet with the employer's leadership, reduce agreements to a memorandum of understanding, and enforce the memorandum in a civil action. The bill allows an officer whose rights (under GS Chapter 17F) have been violated to sue in civil court to obtain injunctive relief and monetary damages, and if injury is caused by reprisals for joining the association, treble damages. Allows attorneys fees to an officer who prevails, in the court's discretion, and to the employer if the suit is frivolous. This is the beginning of organized labor's efforts to increase union activity in North Carolina.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S970v1.html
SB 996 - WORKERS COMP ANNUAL COLA -- This bill makes cost of living adjustments in workers' compensation for employees who are permanently and totally disabled. COLA is 3% if the Consumer Price Index for previous year equals or exceeds that amount. Effective Dec. 1, 2007. This would increase claim costs for CompCarolina as well as for many other Association members who self-insure their workers compensation insurance coverage.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S996v1.html
SB 997 - INCREASE CAP FOR LOSS OF WORKERS' ORGANS - Senator Doug Berger (D-Franklin) - This bill would increase the maximum award under the workers' compensation act for the loss or permanent injury to an important organ or part of the body not otherwise addressed in the schedule of injuries from $20,000 to $50,000. This bill would be effective when it becomes law and applies to agreements approved or orders or awards entered by NC Industrial Commission on or after that date. This would increase claim costs for CompCarolina as well as for many other Association members who self-insure their workers compensation insurance coverage.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S997v1.html
SB 1002 - AUTO DIALING AND RECORDED MESSAGE PLAYERS - Senator Tony Rand (D-Cumberland) - This bill clarifies and extends the restrictions on the use of automatic dialing and recorded message players to make unsolicited telephone calls, including:
(1) require that a person using an automatic dialing and recorded message player to make an unsolicited phone call in connection with an existing debt or contract for which payment or performance has not been completed at the time of the unsolicited call must clearly identify the person making the call's name, contact information, name of the person on whose behalf the call is being made, and purpose of the call at the initiation of the call; (2) authorize the use of an automatic dialing and recorded message player to make an unsolicited phone call if the call is placed by a government official concerning official government business or a school official to students, parents, or employees of the school; (3) prohibit a political candidate, a political party, and a tax-exempt charitable or civic organization from using an automatic dialing and recorded message player to make an unsolicited telephone call to a telephone subscriber's number when the subscriber's number appears in the latest edition of the "Do Not Call" Registry; and makes other clarifying changes. This bill would be effective January 1, 2008.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1002v1.html
SB 1032 - HEALTH INSURANCE/PROMPT PAY TIME LINES - Senator Dan Clodfelter (D-Mecklenburg). This bill requires an insurer to give written notice to a health care provider or facility no less than 45 days before seeking overpayment recovery or offsetting future payments. The bill also limits the time for the recovery of overpayments or the offsetting of future payments by insurers and the time that health care providers or facilities may recover under or nonpayment to no more than 180 days after the date of the original claim payment, except when there is documented evidence of fraud.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1032v1.html
SB 1033 - HEALTH BENEFIT PLANS/STD. INSURANCE CARD - Senator Dan Clodfelter (D-Mecklenburg). This bill would require insurers providing health benefit plans to provide each policyholder with an insurance identification card containing certain information (detailed in GS 58-3-247(a)(1)-(12). Requires issuance of a new insurance identification card, or, under certain circumstances, a temporary sticker, whenever any information required on the card is changed, at least 30 days before to the effective date of the change. Effective January 1, 2008. This is very similar to the standardized prescription drug card your Association lobbied in favor of and which was enacted by the General Assembly in 1998.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1033v1.html
SB 1042 - AUTHORIZE MEDICAID HMO - Senator Tony Rand (D-Cumberland). This bill directs the Department of Health and Human Services, Division of Medical Assistance (DHHS) to develop a pilot program in four areas of the state to offer Medicaid services through an HMO. It requires DHHS to solicit program applications from HMOs across the state and specifies the selection criteria to be used by DHHS in selecting the four regions and requires DHHS to report by May 1, 2008, on the selection and establishment of the four pilot programs to the Senate Appropriations Committee on Health and Human Services, the House of Representatives Appropriations Subcommittee on Health and Human Services, and the Fiscal Research Division. The bill additionally requires DHHS to include in its report participation levels and the feasibility of expanding the HMO Medicaid model to other areas of the state. Effective July 1, 2007. Allowing an HMO to manage the Medicaid program could have a detrimental effect on pharmacists and other health care providers as the HMO would squeeze reimbursements.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1042v1.html
SB 1055 - CONSUMERS' REBATES REDEMPTION DEADLINE - Senator Richard Stevens (R-Wake). This bill requiring persons offering rebates to consumers to mail the rebate within 30 days after the postmark date of the completed rebate form submitted by the consumer. The rebate forms must conspicuously show the terms of the rebate and its expiration date and the bill makes a violation an unfair trade practice and subject to all enforcement and penalty provisions applicable to unfair trade practices. Effective for all sales of goods or services on or after October 1, 2007. We have already spoken with Senator Stevens and he has stated that he will work with us to make sure the bill is fair. We have already been in contact with the cell phone companies as well on this legislation.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1055v1.html
SB 1081 - EXPUNGE NONVIOLENT CRIMES - Senator David Weinstein (D-Robeson). This bill provides for the expunction of conviction records of certain nonviolent criminal offenses if there are no subsequent criminal convictions for at least 10 years. Covered nonviolent offenses include misdemeanors and Class H and I felonies, except that the following are excluded: offenses involving assaults, requiring sex offender registration, involving possession or use of a firearm as an element or as an aggravating factor, drug trafficking, and involving impaired driving. Petition cannot be filed earlier than 10 years after the date of conviction or completion of active time, post-release supervision, or probation, whichever is later. The Administrative Office of the Courts (AOC) will maintain a confidential file of the names of persons granted expunctions and other information, which may be disclosed only to trial judges to determine if a person charged with an offense has been granted an expunction and to state and local law enforcement agencies and federally insured depository institutions for employment purposes. Unauthorized disclosure or use of the information is a Class 3 misdemeanor. The bill requires an expunction fee of $200, with $100 remitted to the Department of Justice and $100 remitted to the AOC. Provides that the expunction provision in GS 15A-145 for first offenders under 18 years old and for certain other misdemeanors applies only if the person has not previously obtained an expunction under the statute, modifies the form of the petition, and increases the fee from $125 to $200, allocated as stated above. Amends the expunction provision in GS 90-96 for first drug offenses to modify the form of the petition and increase the fee from $65 to $200, allocated as stated above. Makes parallel changes to GS 90-113.14 for first offenses under the Toxic Vapors Act, and provides for a similar $200 fee. Effective December 1, 2007.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1081v1.html
SB 1092 - PROVIDE UNPAID SICK DAYS - Senator Janet Cowell (D-Wake). This bill would entitle all NC employees to up to seven unpaid sick days annually, at a rate of one hour of leave for each 30 hours worked. The legislation permits the leave to be used to attend to medical needs of the employee or the employee's family member or to address effects of domestic violence and permits employers to require certification from a health care provider of the qualifying illness, injury, or health condition if unpaid sick leave period covers more than three consecutive workdays. The leave would not be able to be accumulated from year to year. The bill prohibits employers from punishing the exercise of rights under the act, and directs Commissioner of Labor to adopt rules to implement the act. Effective 90 days after it becomes law; for workers covered by collective bargaining agreement, it becomes effective on the earlier of the termination date of that agreement or 12 months after adoption of implementing rules by the Commissioner of Labor. This bill is just another example of attempts to interfere with the employer-employee relationship.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1092v1.html
SB 1094 - PERSONAL PROTECTION IN RESTAURANTS (=H 831) - Senator Andrew Brock (R-Davie). This bill would allow a person the premises of an establishment that is a restaurant under G.S.18B-1000 (2) or G.S.18B-1000 (6) to carry a weapon if the individual has a valid concealed handgun permit. This law would be effective December 1, 2007. We are concerned because this legislation would likely allow a person to bring a gun into a grocery store which has a restaurant-type permit to operate its deli and meat counters.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1094v1.html
SB 1104 - PSEUDOEPHEDRINE/SCHEDULE V DRUG - Senator Julia Boseman (D-New Hanover ). This bill adds pseudoephedrine to the list of Schedule V Controlled Substances effective December 1, 2007. We have met with Senator Boseman and the SBI on this issue. We informed Boseman that most of the methamphetamine problem is now tied directly to meth super-labs in Mexico and California rather than mom and pop labs that make meth out of cold medicine bought at stores and that this legislation is now unnecessary.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1104v1.html
SB 1108 - STATE HEALTH PLAN/DIABETIC TEST STRIPS - Senator Julia Boseman (D-New Hanover ). This bill would provide coverage for diabetic test strips under the teachers' and state employees' comprehensive major medical plan pharmacy benefit effective July 1, 2007.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1108v1.html
SB 1137 - IMPROVE CONSUMER CREDIT REPORTING LRC - Senator Dan Clodfelter (D-Mecklenburg). This bill authorizes the legislative research commission to study improvements in consumer credit reporting practices.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1137v1.html
SB 1145 - WORK OPPORTUNITY TAX CREDIT - Senator David Hoyle (D-Gaston). This bill would create a tax credit for employers if they hire certain disadvantaged workers to fill a full-time position in the state and who keep that person as an employee for at least nine months. The bill defines the credit to equal the wages paid during the taxable year up to a maximum of $2,000 per disadvantaged worker per year and provides that the taxpayer is to claim the credit in the year in which the nine-month period ends and in the following year and establishes a cap on the tax credit. Defines disadvantaged worker to include a person (1) who is a member of a family that received payments under the Temporary Assistance to Needy Families program for at least nine of the last 18 months at the time of hire; (2) who is a veteran and a member of a family that has received benefits under the Food Stamp Program for at least three of the last 15 months at the time of hire; (3) who is between 18 and 24 years old when hired and a member of a family that has received benefits under the Food Stamp Program for the last six months at the time of hire; (4) who received benefits from the Supplemental Security Income program for any month within the last 60 days at the time of hire; or (5) who was convicted of a felony or was released from incarceration for a felony within the past five years preceding the time of hire. Effective for taxable years beginning on or after January 1, 2007. This is an Association initiative to provide an incentive to hire certain individuals and is based upon a similar federal program.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1145v1.html
SB 1202 - LITTER VIOLATION REPORTED BY CITIZEN - Senator Jim Jacumin (R-Burke). This bill provides that a civil penalty for littering may be assessed based on a witness's affidavit. A violation is non-criminal and a civil penalty of $100 applies, which may be increased by $25 for failure to pay or respond to the citation. The clear proceeds of civil penalties are remitted to the Civil Penalty and Forfeiture Fund and the actual costs of collection, capped at 20% of the amount collected, are remitted to the clerk of court to be credited to the magistrate's office. The Administrative Office of the Courts (AOC) must establish implementing procedures. Allows magistrates to accept filings of affidavits reporting littering violations, to issue littering citations, and to hear and enter judgment in these cases. Effective when the bill becomes law, requires the AOC to develop an affidavit for reporting violations. Except as noted, effective December 1, 2007.
http://www.ncleg.net/gascripts/BillLookUp/BillLookUp.pl?Session=2007&BillID=s+1202
SB 1208 - CIGARETTE TAX - CANCER HOSPITAL - Senator Tony Rand (D-Cumberland). This bill increases the excise tax on cigarettes from 1.75 cents to 2 cents per cigarette and provides that 1/8 of the tax proceeds are remitted to the University of North Carolina effective July 1, 2007 to fund the cancer hospital at UNC-Chapel Hill. We understand that Senate President Pro Tem Marc Basnight originally wanted this tax to be in the form of an extra sales tax which potentially would have caused POS problems.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1208v0.html
SB 1240 - SALES TAX EXEMPTION FOR BAKED GOODS - Senator John Kerr (D-Wayne). This bill exempts from retail sales and use tax the sale at retail and the use, storage, or consumption of bread, rolls, and buns sold at a bakery thrift store. The bill provides that the sales tax is limited to 1% of the sales price of bread, rolls, and buns that are sold at a bakery thrift store and are exempt from State tax under GS 105-164.13(27a). Effective July 1, 2007. This legislation is being introduced at the request of some bakeries who under-collected sales and use tax on the sale of baked goods when the law changed. The bakeries were responsible for the tax owed and have asked that the law be changed. Many legislators and the Department of Revenue feel this is a very slippery slope to head down.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1240v0.html
SB 1270 - AMEND LARCENY LAWS - Senator John Snow (D-Cherokee). This bill amends various larceny statutes and creates criminal offenses of theft of infant formula and organized retail theft. The bill amends GS 14-71 (receiving stolen goods) to provide that the offense occurs regardless of whether the item had been feloniously stolen or taken. Amends the felony threshold for property involved in a larceny from $1,000 to $500. Makes parallel changes to felonious receiving and possession of stolen goods. Amends the shoplifting statute, to include within the scope of the price substitution provision the use of false product codes that identify the sales price. Also adds new subsections providing that if while engaged in shoplifting the person uses a specified exit door or removes, destroys, or deactivates a component of an anti-shoplifting or inventory control device, the offense is elevated to a Class H felony. The bill creates a new Class H felony for the theft of more than $100 in infant formula and adds a new Article 16A to GS Chapter 14 pertaining to Organized Retail Theft - creating a new Class G felony for organized retail theft, and Class G felonies for receiving and possessing retail property obtained by organized retail theft. Effective December 1, 2007. This is an NCRMA initiative and is an omnibus package that seeks to address Organized Retail Theft in North Carolina.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1270v0.html
SB 1331 - MODIFY BEDDING SANITATION LAWS - Senator Bill Purcell (D-Scotland). This bill would extend the laws governing the sanitation of bedding to sleep products and secondhand furnishing along with other clarifying and conforming changes to those laws. http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1331v0.html
SB 1336 - EXPUNGE NONVIOLENT CRIMES/YOUNG PERSON - Senator Ellie Kinnaird (D-Orange). This bill provides for the expunction of convictions for certain nonviolent criminal offenses if the person was 17 to 21 years old at the time of the conviction. The bill also allows for the disclosure of expunged information to law enforcement agencies and federally insured depository institutions for employment purposes only and to require those agencies and institutions to maintain the confidentially of the expunged information. The bill makes other conforming changes to existing expunction statues, increases fees for expunctions and requires state and national criminal record checks with expunging records.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1336v0.html
SB 1367 - REDUCE UNDERAGE DRINKING - Senator Larry Shaw (D-Cumberland). This bill increases the excise tax on malt beverages from 53.177 to 75 cents per gallon, on unfortified wine from 21 to 30 cents per liter, and on liquor from 25% to 35%. The bill creates an annual transfer of $250,000 from the General Fund to the Alcoholic Beverage Commission to promote alcohol education programs to target and reduce underage drinking. Effective for taxes imposed for taxable years beginning on or after July 1, 2007. This legislation already has the Beer and Wine Wholesalers and beer manufacturers up in arms.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1367v0.html
SB 1374 - FUNDS/MIN. RECRUITMENT PHARMACY SCHOOLS - Senator Vernon Malone (D-Wake). This bill appropriates $400,000 for 2007-08 and $400,000 for 2008-09 from the General Fund to the Department of Health and Human Services (DHHS), Division of Public Health to be used to maintain or continue a pilot program for the recruitment of minority students into pharmacy schools and requires DHHS to report back to several legislative committees no later than March 1, 2008. Effective July 1, 2007. This is an NCRMA initiative and seeks to increase the number of minority pharmacists in North Carolina . Currently, only 4 percent of North Carolina 's pharmacists are minorities.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1374v0.html
SB 1391 - SALES TAX RELIEF FOR SCHOOL SUPPLIES - Senator Harry Brown (D-Onslow). This bill Increases the price limit on school supplies covered by the sales tax holiday from $100 to $150 per item effective July 1, 2007, and applies to sales made on or after that date. This would help with the ever-popular Sales Tax Holiday.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1391v0.html
SB 1393 - REDUCE AND PREVENT UNDERAGE DRINKING - Senator Steve Goss (D-Watauga). This bill would increase the excise tax on malt beverages from 53.177¢ to $1.065 per gallon effective July 1, 2007. Goss is a Baptist minister who is trying to reduce underage drinking by doubling the excise tax on beer. Again, this legislation already has the Beer and Wine Wholesalers and beer manufacturers up in arms.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1393v0.html
SB 1398 - PREPAID WIRELESS/SERVICE CHARGES - Senator Charlie Dannelly (D-Mecklenburg). This bill amends the service charge for prepaid wireless service and allows retail vendors of prepaid wireless service to collect the service charges and remit the amounts to the Wireless 911 Board. This is similar to legislation being introduced all over the country at the request of Trac Phone and would require retailers to collect the 911 wireless tax and remit this money to the Wireless 911 Board.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1398v0.html
SB 1400 - STUDY PREPAID WIRELESS SERVICE CHARGES - Senator Charlie Dannelly (D-Mecklenburg). This bill authorizes the Joint Legislative Utility Review Committee to study the adequacy of the service charge for prepaid wireless service and the manner in which the service charge is collected and remitted to the Wireless 911 Board.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1400v0.html
SB 1411 - RESTORE CIGARETTE TAX STAMPS - Senator Fletcher Hartsell (R-Cabarrus). This bill would require that cigarette taxes be paid or payment evidenced by the use of tax stamps, to require that tax-exempt stamps be used to show exemption, and to enact implementing provisions. It also provides that only licensed distributors may affix stamps and specifies when stamps may be affixed, prohibits a distributor from selling, borrowing, loaning, buying, or exchanging stamps, and provides that only distributors may possess or receive non-tax-paid cigarettes. Reporting would be required by every distributor required to affix stamps. Allow a discount on the sales of stamps for the distributor's services and expenses and authorizes the Secretary of Revenue to permit the use of stamp metering machines. Provides for redemption and refund of stamps. This bill regulates shipment or delivery of non-tax-paid cigarettes in, into, or from the state and requires the destruction of contraband cigarettes. The bill amends statute to limit retail sales to a person and provides for imposition of a fine on a retail dealer who unlawfully sells or possesses non-tax-paid cigarettes. The bill also creates new felony offenses related to forging or counterfeiting stamps. Upon conviction the person may be fined not more than $2,000 or imprisoned for a term of not more than five years, or both. Effective July 1, 2007. This bill was introduced at the request of Philip Morris and has the effect of causing retailers who act as their own wholesalers a tremendous amount of money. The other tobacco companies oppose the legislation.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1411v0.html
SB 1449 - REGULATE SALES/GLASS VIALS & CIGARETTE WRAP (=H 953) - Senator John Snow (D-Cherokee). This legislation would require retailers selling glass vials that are two to six inches long and one-eighth inch to three-fourth inch in diameter that may be used as drug stems or rolling papers used for smoking tobacco to sell these items from behind the counter and maintain a purchase log that is similar to the log required under the law regulating the sale of pseudoephedrine. The glass vials often contain a silk rose that is removed and then used to smoke crack cocaine or methamphetamine.
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1449v0.html
Please let us know your thoughts and concerns as related to these newly introduced bills.
It is our pleasure to work on your behalf. Thank you for allowing us to continue to represent the retail perspective before the North Carolina General Assembly since 1902.
Until next week.
Fran Preston (franp@ncrma.org)
Andy Ellen (andye@ncrma.org)
Elizabeth Dalton (elizabethd@ncrma.org)
Lindsey Kueffner (lindseyk@ncrma.org)
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