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Friday Fax – Legislative Update
As Yogi Berra once said "It's like Déjà vu all over again" as yet again, we were pressed to work at a frantic pace with members and staff to tweak, push and pull on legislation affecting retailers. And, yet again, the legislature left town for the week without adjourning.
Since we are now in the midst of session's short rows, several NCRMA issues have been put to rest as lawmakers suddenly picked up speed in trying to wrap up this legislative session. Price gouging legislation as well as legislation clarifying methamphetamine laws were passed and sent to the Governor. However, notions that adjournment would come by week's end seemed less likely as time passed due to differences over ethics legislation which is still the major piece of legislation left on lawmakers' plate. The governmental ethics and lobbying reform bill, because it contains fees, requires three days of consideration under House rules. The House left town yesterday, allowing Ethics Conferees to work through the weekend, with other House members returning to town Monday and Tuesday for votes on the ethics bill and remaining legislation. The Senate stayed in town today to take up several bills and plans to hold skeleton sessions until the House acts on Ethics reform. If all moves according to plan (which, as you know, is rare), the session could conclude as early as Wednesday.
July 21, 2006
1. Price Gouging Legislation Passes, Sent to Governor
2. Meth Bill Passes , Sent to Governor
3. Pharmacy Provision Passes Senate, Moves to House
4. Conference Report on Keg Regs Soon to Surface
5. Alcohol Coupons Back on Track for Now
1. Price Gouging Legislation Sent to Governor -- On Wednesday, the House unanimously approved HB 1231 which includes alterations to North Carolina 's price gouging law. The bill now awaits the Governor's signature. NCRMA worked with the Bill Sponsors - Senators Clark Jenkins and A.B. Swindell, and the Attorney General's office to come to an agreement on the legislation after the Attorney General's Office agreed to remove two provisions NCRMA strongly opposed. To our satisfaction, the Attorney General's office reluctantly agreed to leave language in the law that requires a retailer to have "knowledge and intent" that they are charging an unreasonably excessive price to be guilty of price gouging and to limit the area regulated by the price gouging to the area affected by the disaster.
In addition, NCRMA has been meeting with representatives from Governor Easley's office to ensure that we will receive proper notification in the event of a declaration of a state of emergency, disaster or market disruption which would trigger the price gouging law. We want to ensure that we know as soon as possible so that we can distribute information to you in such a circumstance.
Finally, as part of our negotiations with Governor Easley's Office, NCRMA will be included in disaster response communications and exercises to better help NCRMA members distribute goods to North Carolina citizens during times of disaster.
2. Meth Legislation Passes House and Senate, Sent to Governor -- SB 686, including clarifications to current contradictions in state and federal Meth laws, passed both the House and the Senate this week and now goes to Governor Easley for his signature. When Federal Meth legislation passed in March, discrepancies were created among the requirements between the state and federal law as one was not directed to preempt the other - leaving retailers to discern which restrictions apply. We are pleased that after much hard work on the part of your NCRMA lobbying team, there is now clarification on log requirements and package limits for retailers. NCRMA met over the past two months with representatives from the AG's office, legislators and staff with the sole purpose of developing a solution to resolve differences between state and federal Meth legislation.
3. Amended Pharmacy Provision Passes Senate, Moves to House -- NCRMA worked tirelessly with legislators and staff to include language in the budget that would attempt to offset the drastic impact that Medicare Part D and the Deficit Reduction Act could have on access to prescription drugs. Budget language required the Department of Health and Human Service s to analyze the impact of Medicare Part D and the DRA and develop strategies to ensure access to prescription drugs into the conference committee discussions. While we were certainly pleased with this inclusion, the language leaned more toward a study than the ability for the Department to implement a strategy.
NCRMA has continued to work with Mike James and Bill Rustin with the community pharmacists to further clarify the intent of this provision. This effort took a wild roller-coaster ride this week but after extended conversations with legislators, staff, the Department and the Governor's office, we prevailed in gaining support for the hold harmless language. The new language was inserted into SB 198 by means of an eleventh-hour floor amendment. The bill in its entirety was then passed by the Senate. SB 198 is scheduled for Monday's House calendar and we are optimistic that they will be supportive of the provision.
The provision reads as follows: SECTION 10.9D.(b) If a decrease in the average manufacturer's price ("AMP") of prescription drugs during the period January 1, 2007, through June 30, 2007, is estimated by the Department to result in average savings to the State Medicaid Program during that period, then the Department shall supplement the dispensing fee established by the General Assembly in this act by an amount calculated to be budget neutral and not to exceed average savings less administrative costs to the State to implement the supplemental fee. The supplemental fee shall be implemented no earlier than January 1, 2007 and no later than June 30, 2007 . If an amendment to the State Medicaid Plan is required by the Centers for Medicare and Medicaid ("CMS") in order to implement this subsection, then implementation of this subsection is contingent upon receipt of approval of the State Plan amendment prior to June 30, 2007. If a State Plan amendment is required, the Department shall submit the amendment to CMS not later than 60 days from the date the Department receives information on the AMP. This subsection expires June 30, 2007."
NCRMA is also keeping our eyes open for a "Studies Bill" to surface before adjournment. NCRMA and the community pharmacists have worked with legislative members and staff to include a provision to require a Cost of Dispensing study for North Carolina.
4. Conference Report on Keg Regs Soon to Surface -- A conference report for HB 1048 is expected to surface at any given time. Several differences between the House and Senate versions needed to be ironed out. Due to the hard work of your NCRMA lobbying team, the Senate version of HB 1048 amended the House keg provision so that it only would apply to kegs holding more than eight gallons. The House version requires record-keeping for all kegs. Additionally, the House wants records to be maintained for six months while NCRMA was effective in amending the Senate version to require retailers to keep a copy of the purchase-transport permit for thirty days.
Many legislators, including some of the conferees, prefer to have you comply with the House language that is much more onerous. NCRMA has continued to stress the importance of maintaining the Senate language to conferees but have run into road blocks and warning by members that it would be an uphill battle. We will continue to keep you informed as the conferees finalize their negotiations. Stay tuned.
5. Alcohol Coupons Back on Track -- As you may recall, we told you last week that Alcohol Coupons were amended out of HB 1025 in the Senate Finance committee and to resurrect the provision was looking more and more difficult. NCRMA was tenacious and with the help of Representative Pryor Gibson, found a vehicle for the coupon provision in SB 828 , which was being held in the House ABC Committee. Our language was added to the bill and received an extensive debate in ABC Committee on Wednesday. Reverend Mark Creech , representing the Christian Action League of NC, adamantly lobbied against our provision. However, due to the effective responses by NCRMA General Counsel Andy Ellen , Harris Teeter lobbyist Dick Carlton, along with representatives from the NC Beer and Wine Wholesalers, Anheuser and Miller Brewing, the bill passed by a 9-1 vote.
State Alcoholic Beverage Control Commission rules now prohibit cents-off coupons or free beverages as part of alcohol advertising. SB 828 allows an exception to the rules if the retailer offers a discount coupon to purchase beer and wine or requires 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. The change wouldn't apply to state ABC stores, which sell liquor and where manufacturers sometimes offer instant coupons on their products.
The bill is on the House calendar for next week.
Here is the link to the Christian Action League's website for their urgent request to defeat the coupon provision.
http://www.christianactionleague.org/
As always, we value the working relationship we have with you, our member companies. 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.
'Til Next Week,
Fran Preston
Andy Ellen
Elizabeth Dalton
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