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Raleigh, North Carolina
May 23, 2008
Legislators had their week cut short in Raleigh as they all ventured to Greensboro on Thursday for a special session honoring the bicentennial of the City of Greensboro. All bills to be considered during the short session had to be in bill drafting by Wednesday, so many legislators were scurrying to ensure that they had all of their proposals in check before leaving town. The last date for bill filing is this Wednesday, May 29 – so, we will know very shortly the scope of issues we are facing this year.
Meanwhile, this short session has proven to be a strange one thus far. Legislators have arrived in town focused and ready to get down to business. The Senate and the House are on the fastest track towards adopting a budget than they ever have been, working very closely for weeks prior to the start of session to do so. Many people are saying they feel like we've already been in session for two months with the sense of urgency that seems to be so prevalent.
Budget Update
Budget subcommittees began reporting their joint recommendations to the full appropriations chairs this week and expect to finalize those recommendations next week when they return from the Memorial Day Holiday so that they can get the budget to the House floor by June 2nd or 3rd. If this pace stays on course, the House is on track to approve a budget by their targeted deadline of June 6. The Senate then expects to make quick work of the Budget and get the Budget to conference by June 20th at the latest (likely earlier) so that the Budget can hit the Governor's Desk by June 30th. Speaking of the Governor, he may not be too happy when the Budget hits his desk in its final form as the Senate and House appear to be taking all of the money the Governor allocated to expansion programs and have used it to plug other holes.
THIS WEEKS' LEGISLATIVE LOOKOUT: Below are some of the issues that your NCRMA team has been working on this week. You will also find attached, a more complete list of all of the bills that have been filed thus far that could be of interest to retail.
May 23, 2008
1) Electronics recycling law
2) DOT express permitting
3) 53-foot truck restrictions
4) Pervious Pavement
5) Energy Star sales tax holiday
6) Work Opportunity Tax Credit
7) Plastic Bags
8) Carbon Monoxide Detectors
9) Vertical Drivers' License
10) Pharmacy Update
11) Minority pharmacist recruitment
12) Sheriff Access to Drug Database
13) Children's Product Safety Act
1. Electronics recycling law -- HB 2500: Representatives Lucy Allen (D-Franklin), Pryor Gibson (D-Anson), Ruth Samuelson (R-Mecklenburg) SB 1926: Senator Janet Cowell (D-Wake) http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2500v0.html
The Environmental Review Commission (ERC) approved a placeholder bill for making adjustments to last year's law which creates a manufacturers responsibility program for computer recycling. The placeholder does specifically focus on televisions being included which we have been assured was intentional by ERC members and staff. NCRMA has been working vigorously over the past week with other stakeholders in the bill in an attempt to get everyone on board with one proposal which includes televisions. ERC staff is trying to schedule a working group in two weeks to open up the process to broader interests.
2. DOT Express Permitting -- SB 1698/HB 2313: Senator Clark Jenkins (D-Edgecombe), Representative Nelson Cole (D-Rockingham) http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2313v1.html
Senator Jenkins and Representative Cole introduced legislation to implement an express permitting program at DOT. NCRMA is continuing conversations with Transportation Oversight staff and DOT to iron out any questions that exist with the current proposal.
3. 53-foot Truck Restrictions -- SB 1695/HB 2408: Senator Clark Jenkins (D-Edgecombe), HB 2408, Representative Nelson Cole (D-Rockingham) http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1695v1.html
Following months of controversy over the enforcement of 53-foot truck restrictions, legislation has now been introduced to remedy this issue. NCRMA has worked with legislative staff on this legislation to change NC's law from the current outdated 48-foot restrictions to the new industry standard of 53-feet. We understand this bill could be discussed as early as Tuesday, May 27, in the Senate Commerce Committee. While we have received tremendous support for this legislation, we are prepared to hear concerns from the Highway Patrol, AAA and some mountain legislators regarding 53-foot trucks travelling on winding mountain roads. NCRMA has already begun contacting members of the Senate Commerce Committee and has been working with Senate Leadership for quite some time to fix this problem.
4. Pervious Pavement -- HB 2504: Representatives Lucy Allen (D-Franklin), Pryor Gibson (D-Anson) http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2504v0.html
Legislation was introduced on behalf of recommendations of the Environmental Review Commission to find a solution to the 20% mandate for pervious surface on vehicular surface areas was passed last year and set to go into effect October 1, 2008. Your NCRMA lobbying team spoke again with ERC staff and Senator Basnight's environmental staff this week as we continue efforts to resolve this controversial and costly issue.
5. Energy Star Sales Tax Holiday -- SB 1769, Senator John Snow (D-Cherokee)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1769v1.html
SB 1944: Senator Fletcher Hartsell (R-Cabarrus)
Senator John Snow introduced legislation this week that would provide for a NC Energy Star sales tax holiday to promote the sales of energy efficient appliance. The Holiday would be scheduled around Earth Day in April and run for an entire week. NCRMA is very please that the holiday will apply to Energy Star rated appliances under $6,000 and will include televisions under $800 for the first year following the Digital TV conversion.
6. Work Opportunity Tax Credit -- SB 1704 (Revenue Laws Technical Changes): Senator Fletcher Hartsell (R-Cabarrus) HB 2352: Representatives Paul Luebke (D-Durham), William Wainwright (D-Craven), Jennifer Weiss (D-Wake), Pryor Gibson (D-Anson)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1704v1.html
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. As part of the recommendations from the Revenue Laws Study Committee, the WOTC has been tweaked to ensure that these credits benefit jobs located in North Carolina and adds a sunset date of January 1, 2012 to evaluate the success of the program. NCRMA has been working with legislators and legislative staff to maintain this program and offer advice on any necessary changes.
7. Plastic Bags -- HB 2527: Representative Pricey Harrison (D-Guilford) and Grier Martin (D-Wake) http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2527v0.html
On Monday, the Environmental Review Commission voted favorably to recommend to the full General Assembly that North Carolina consider mandatory recycling of plastic bags and allowing Representative Pricey Harrison (D-Guilford) to introduce her proposed legislation. Harrison initially was considering a ban but realized the political infeasibility and moved to the approach of mandatory recycling. HB 2527 would require retailers with in excess of 10,000 square feet of space and which provide plastic bags to consumers to:
- Implement a plastic bag collection program that facilitates the return and recycling of plastic bags by that retailer;
- Provide a receptacle at each retail outlet that is convenient for customers to recycle the plastic;
- Arrange for the pick-up, transport and recycling of the bags that are placed in the receptacles.
While this is a House Bill, we have learned that Senate President Pro Tem Basnight has some interest in it as well. This bill will likely be referred to the House Environment Committee. NCRMA has requested a serial referral to the House Commerce Committee where we may have a better shot at stopping the bill. NCRMA has already taken a strong stance against this bill and have been arguing:
- Many retailers voluntarily take back plastic bags and also provide reusable bags but that it should be a market approach;
- The focus should be on consumer education
- With food and gas prices at high levels, why do we need to put another mandate on retailers that will only be passed onto consumers?
Read today's editorial from the Greensboro News & Record (Representative Harrison's Hometown Newspaper) criticizing Harrison 's solution: http://www.news-record.com/apps/pbcs.dll/article?AID=/20080523/NRSTAFF/805230304/-1/NEWSRECRSSARKIVE
8. Carbon Monoxide Detectors -- HB 2471/SB 1924, Representative Jennifer Weiss (D-Wake), Senator Bill Purcell (D-Scotland) http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H2471v0.html
http://www.ncga.state.nc.us/Sessions/2007/Bills/Senate/HTML/S1924v0.html
Companion Senate and House Bill requiring carbon monoxide detectors in newly constructed dwellings and in rental units were introduced this week. The legislation is being pushed by Kidde and has been endorsed by the legislative Child Fatality Task Force but are meeting some resistance from Homebuilders and Realtors.
WRAL News Story on these proposals: http://www.wral.com/news/local/politics/video/2929119/
9. Vertical Drivers' License -- HB 2487 and SB 1891 – Representative Dale Folwell (R-Forsyth) and Senator Stan Bingham (R-Davidson) http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H2487v0.html
Would change the drivers' license format to vertical for those under 21 years of age, recommended by the child fatality task force.
10. Pharmacy Update -- Senate and House Health and Human Services Appropriations Subcommittees have been meeting jointly on budget negotiations and for the time in recent memory there were no proposed reductions to AWP-10% or in dispensing fees included in this proposal. Additional pharmacy items included in the budget were:
A proposed State MAC List for Specialty Drugs that would save the State $4.5 million. The issue of reining in the cost of specialty drugs has been bantered about for a number of years and was a recommendation from the Governor's Office. Attached please find more information about this State MAC List and drug classes that would be covered. We have requested a list of the drugs by name from the Department but have not yet received the list. We are still trying to get a handle on this provision and its impact on NCRMA members.
A transfer of $3 million from NCRx to Rural Health Centers to pay for vaccinations ( http://www.ncrx.gov/ ). This is Governor Easley's program that was intended to supplement Medicare Part D premiums for North Carolina seniors on limited incomes but the program has not been widely used by NC seniors.
The comments we got concerning community pharmacy was that people were genuinely pleased with the work you had done by increasing generic dispensing in Medicaid in Medicaid by over 4%. While the Budget does seem to be on the fast train, that does not mean the train will not fall off the tracks or that pharmacy reimbursement will not end up in the cross-hairs of Budget writers. So be ready to activate into action with calls or emails should this be necessary.
11. Minority pharmacist recruitment -- SB 1810: Senator Vernon Malone (D-Wake)
HB 2199: Representatives Linda Coleman (D-Wake) and Dr. Bob England (D-Rutherford)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2199v1.html
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. The bill has been introduced again this year and we were pleased that the recommendations from the House and Senate HHS Appropriations Committee on Wednesday included another $275,000 for this year.
12. Sheriff Access to Drug Database -- SB 1605/HB 2163 ( Pitt County ), Senator Clark Jenkins (D-Edgecombe), Representative Marion McLawhorn (D-Pitt) HB 2292 ( Moore County ) Representative Joe Boylan (R-Moore)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H2163v1.html
NCRMA is working with bill sponsors and the NC Sheriffs' Association to determine the best way to approach this situation. It is the understanding of NCRMA that sheriffs were initially intended to have access to this database when this initiative began a couple of years ago and they were inadvertently excluded. Rather than this piecemeal county-by-county approach, NCRMA is working with interested parties to find agreement on a statewide initiative as long as this does not open up the issue of Sheriff's having any ability to come into retail locations and request records on the spot.
13. Children's Product Safety Act -- We reported last week that 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 certain conditions. NCRMA explained that a Federal Bill is on its way to passage that would pre-empt any NC legislation. Senator Snow informed us that he will not file the legislation this year and will wait to see what happens on the Federal level and what response he sees from the retail community.
Thank you for allowing us to continue to represent the retail perspective before the North Carolina General Assembly since 1902. 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.
Have a safe Memorial Day Weekend!
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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