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Raleigh, North Carolina
May 16, 2008
NCRMA kicked off the convening of the 2008 Legislative Short Session on Tuesday with a successful Food Drive generating over $85,000 in both in-kind and cash donations to Second Harvest Food Bank of NC. Thanks to CVS/Caremark, Food Lion, Harris Teeter, Rite-Aid, Sheetz, Walgreens and Wal-Mart, for your generous donations this year! The Food Bank of Central & Eastern North Carolina will be able to provide nearly 200,000 meals because of our efforts!
Legislators hit the ground running on Tuesday, hoping to make this session as quick and painless as possible with the November elections just around the corner. House Speaker Joe Hackney is set to take the reigns as President of the National Conference of State Legislatures in New Orleans July 22-26 of this year which could also serve as a catalyst for adjourning session by mid-July.
NCRMA is hopeful for a short session but multiple issues affecting retailers are already on the table and if the session is short, that also means very fast-paced. All study bills were to be sent to bill drafting by Wednesday (filed by May 21), budget bills were due to drafting today (filed by May 27) and Local Bills and bills affecting Pension or Retirement systems are due to drafting by next Wednesday, May 21 (filed by May 28).
If that schedule sounds rigorous, the budget subcommittees are already scheduled to have their joint recommendations to the full appropriations committee by this Wednesday, May 21. House budget subcommittee chairs were given spending targets -- as much as $100 million dollars below amounts included in Gov. Mike Easley's budget -- as legislative budget writers pushed toward a timetable that has the General Assembly approving a spending plan by June 27. House budget writers are mulling over spending targets with a deadline to prepare a budget bill in three weeks. The same timeline has the House approving a budget bill by June 6, with the Senate voting on its plan two weeks later and budget negotiators starting to work through differences by June 20.
Senate leader Marc Basnight has appointed Sens. Charlie Dannelly, D-Mecklenburg, and Charlie Albertson, D-Duplin, as co-chairs of the Senate Appropriations Committee. Dannelly and Albertson will fill slots vacated by Sens. Walter Dalton, D-Rutherford, and Kay Hagan, D-Guilford, who will continue as advisory chairs to the budget-writing committee. Dalton and Hagan are each running for statewide office.
Budget Update
Governor Easley revealed his budget proposal on Monday, allowing full budget meetings to begin on Tuesday to review the document. The Budget proposed a $21.5 billion budget Monday that would raise taxes on cigarettes and alcohol to help pay for teacher raises and mental health reform.
While North Carolina is expected to fair better than most states, the numbers are still very tight. April Revenues came in ahead of schedule but did not come in ahead of schedule as much as in past years. Currently, North Carolina is running $90 million ahead of target through April with an anticipated surplus of $151.5 million surplus for the fiscal year 2007-2008. The 2008-2009 forecast has been revised downward from 4.7% to 3.5% and baseline sales tax growth through April is 2.5%, well-below the long-term average of 5.7% with significant weakness in consumer spending are expected for the rest of 2008.
This $151.5 million surplus is not as much as in years past and elected leaders note that much of that money will be spent on school enrollment growth, increased fuel costs for school buses, capital needs, pay increases for teachers and state employees. There is also an emphasis this session on funding infrastructure needs like transportation, water and sewer. The mental health system is in dire needs of repair and with recent tragedy of Eve Carson death at UNC-Chapel Hill, there is a renewed desire to fix North Carolina 's parole system and address gang-related violence. That being said, everyone will be seeking a piece of the pie and there will not be enough to feed everyone at the table.
THIS WEEKS' LEGISLATIVE LOOKOUT: We'll be thumbing through all of the newly filed bills that could help or hurt your bottom-line. NCRMA lobbyists have already been working with legislators this week to educate them on the following issues:
• Electronics recycling law: The Environmental Review Commission (ERC) is working to make adjustments to last year's law which creates a manufacturers responsibility program for computer recycling. NCRMA has been working with other stakeholders to include televisions in the revision to create a more comprehensive program.
• DOT express permitting: NCRMA worked with DOT and legislative staff to create draft legislation that would implement an express permitting program at DOT. This bill passed out of Transportation Oversight on Tuesday as a part of their package of recommendations, making the bill eligible for the short session.
• 53-foot truck restrictions: Following months of controversy over the enforcement of 53-foot truck restrictions, the legislature is finally in session which will provide an opportunity to resolve this issue by changing NC Statutes. NCRMA has worked with legislative staff on legislation to change NC's law from the current outdated 48-foot restrictions to the new industry standard of 53-feet. This bill also passed out of Transportation Oversight on Tuesday as a part of their package of recommendations, making the bill eligible for the short session.
• Pervious Pavement: A 20% mandate for pervious surface on vehicular surface areas was passed last year and set to go into effect October 1, 2008. NCRMA is continuing to work with staff of the Environmental Review Commission, legislative leadership and other staff to find a workable solution to this problem.
• Energy Star sales tax holiday: Senator John Snow is drafting legislation to introduce this session that would provide for a NC Energy Star sales tax holiday to promote the sales of energy efficient appliance. NCRMA has been working with Senator Snow's office as well as Senator Basnight's office and legislative staff on the language for this bill. We have been working to get televisions included in the holiday at least for one year and expect that the first holiday could occur in October 2008 with subsequent holidays falling in April. Right now it appears the holiday could last a week and apply to items under $3,000.
• Minority pharmacist recruitment: Last year, NCRMA was able to secure a $275,000 appropriation for a minority pharmacist recruitment program run through Campbell Pharmacy School. At last count, 45 counties in NC were without a minority pharmacist and only 4% of practicing pharmacists in NC were minorities. Representatives Linda Coleman (D-Wake) and Dr. Bob England (D-Rutherford) and Senators Vernon Malone (D-Wake) and Dr. Bill Purcell (D-Scotland), have agreed to introduce the bill this year.
• Work Opportunity Tax Credit Revisions: NCRMA was successful last year in passing a NC Work Opportunity Tax Credit to provide a 6% federal match to employers who hire someone from a designated target category. NCRMA has been working with legislators and legislative staff to maintain this program and offer advice on any necessary tweaks.
• Children's Product Safety Act: Senator John Snow, who has helped NCRMA with lots of legislation, contacted us on the opening day of session to alert us to a bill that he planned to file today. His concern is the recent problem of unsafe toys, and the bill would essentially prohibit retailers from selling a children's product that meets one of three conditions:
1) The item has been recalled by a federal agency; manufacturer or distributor;
2) A federal agency has issued a warning that a specific product's intended use constitutes a safety hazard;
3) The item contains lead or cadmium that is more than .004 percent total weight (not including glass or crystal decorative components) or contains phthalates of more than .01 percent by weight.
(A child is someone under the age of six years of age and a children's product would include cribs, toddler beds, beds, car seats, chair, high chair, toy, carrier, play set, bath seat etc.)
NCRMA understands that Federal Bill is on its way to passage that would pre-empt any NC legislation. We will be meeting with Senator Snow next week to talk to him about the movement on the National front on this issue.
• PLASTIC BAGS: On Monday, we expect the Environmental Review Commission (a study committee) to take up a measure recommending to the full General Assembly that North Carolina consider either 1) a ban on plastic bags or 2) mandatory recycling of plastic bags. We have been meeting with legislators to explain that w e do not believe either path is the way to go at this time. Representative Pricey Harrison (D-Guilford) is the primary proponent of such a measure. If you have stores in these towns, we ask that you call and leave a message with the respective Senator or Representative and tell them your name, that you have a store in their district and that:
• This type of measure is not something to be dealt with in the Short Session as it has not received any prior discussion in the Environmental Review Commission and should instead be dealt with in the Long Session, if at all.
• Plastic bags generate 80% less waste and require 40%-70% less energy to manufacturer than paper bags;
• Plastic bags make up a tiny fraction (less than 0.5%) of the solid waste stream;
• Retailers are introducing reusable shopping bags for their customers to use;
• Plastic grocery bags are fully recyclable and the number of recycling programs are increasing daily but these recycling programs should be voluntary;
SENATE APPOINTMENTS
- Sen. Daniel Gray Clodfelter (Co-Chair) – Charlotte – 919.715.8331
- Sen. Stan W. Bingham – Lexington area – 919.733.5665
- Sen. Katie G. Dorsett – Greensboro – 919.715.3042
- Sen. James Summers Forrester – Lincolnton – 919.715.3050
- Sen. Eleanor Gates Kinnaird – Chapel Hill/Carrboro – NO CALL
- Sen. A. B. Swindell, IV – Rocky Mount/Nashville – 919.715.3030
- Sen. Fletcher Lee Hartsell, Jr. (Advisory Member) – Concord - 919.733.7223
HOUSE APPOINTMENTS
- Rep. Lucy T. Allen (Co-Chair) – Louisburg – 919.733.5860
- Rep. James A. Harrell, III – Dobson – 919.715.1883
- Rep. Mary Price Taylor Harrison – Greensboro - NO CALL
- Rep. Carolyn Hewitt Justice – Pender County/Wilmington – 919.715.9664
- Rep. Ruth Samuelson – Charlotte – 919.715.3009
- Rep. Larry Wayne Womble – Winston-Salem – 919.733.5777
- Rep. Charles C. Thomas (Advisory Member) – Asheville – 919.715.3012
- Rep. Russell E. Tucker (Advisory Member) – Duplin County – 919.715.3021
OTHER APPOINTMENTS
- Sen. Charles Woodrow Albertson (Co-Chair) – Duplin County – 919.733.5705
- Rep. Pryor Allan Gibson, III (Co-Chair) – Wadesboro – 919.715.3007
- Rep. Edith Doughtie Warren – Farmville – 919.715.3023
- Sen. David F. Weinstein – Lumberton – 919.733.5651
It is already shaping up to be an extremely busy session for retail. Your NCRMA lobbying team is working hard to ensure that your interests are represented in the halls of the legislative building. Please let us know if you have any questions as we always welcome your feedback.
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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