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Raleigh, North Carolina
March 30, 2007

You can thank the NC General Assembly for there being a little less pollen in the air this spring. It takes a lot of trees to take care of the nearly 3,500 bill drafting requests this year. The latest analysis from legislative bill drafting director Gerry Cohen shows that bill requests at the end of the ninth week of the legislative session are up 36% compared to the same period in 2005. Legislative staff has received 3,472 substantive bill drafting requests, compared to 2,536 for the same period in 2005, according to the analysis.

With two House bill deadlines remaining, the bill drafting requests for 2007 already exceed the 3,241 requested for all of 2005. The memo also shows that blank bill requests are down 82% for the year. The House banned blank bills this year, while the Senate limited senators to no more than two such bills for the biennium. The deadline for House public bills is April 18, while House appropriations and finance bills must be filed by May 1.

In other legislative news this week, a House vote to ban smoking in public places was postponed. Representative Hugh Holliman's (D-Davidson) bill: HB 259 - Prohibit Smoking in Public Places was voted out of committee and placed on the House calendar originally for Tuesday of this week but in light of the vote count not looking favorable, the bill has still not been heard on the House floor.

Also, after a lengthy debate, the House voted overwhelmingly, 108-8, to repeal a law affecting chiropractic co-payments that has been tied to illegal cash payments to former House Speaker Jim Black. The current law was passed through a provision tucked into a budget technical corrections bill in 2005, at Black's request, and received little or no debate. Black admitted in state and federal court earlier this year that he took $29,000 in illegal cash payments from three chiropractors. Supporters of the change said the legislation had nothing to do with the law's merits, or lack thereof. Instead, it was about how the bill was passed, they said. Other House members said eliminating a law that they believe is worthwhile, regardless of how it came to be, is foolish. The bill now goes to the Senate for consideration.

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 and whether you want us to amend, pass or kill.

After another week of swimming through a sea of newly filed bills, your Retail Week in Review at the NCGA is chock full of information for you to mull over.

1. Consumers' Rebate Redemption Deadlines - SB 1055 - On Senate Commerce Calendar for Tuesday, April 3

2. Duty to Report Child Pornography - passed House, moves to Senate

3. Electronics Recycling Bills - Senators Hagan and Cowell introduced bills this week

4. Energy Efficiency - Conference call yesterday & Coalition meeting today

5. Px Bill - passed out of House committee this week, met with stakeholders this morning

6. Bill to Require Secure Prescription Pads - large meeting with bill sponsor held this week, bills seems to be on hold

7. Mattress and Bedding Sanitation Bill - working with DENR and bill sponsor on language

8. Prepaid Wireless - Met with bill sponsor staff this week

9. Gift Card Fees- Bill filed this week, meeting with sponsor scheduled next week

10. Contributory Negligence Study - passes House Committee unanimously this week, re-referred to Rules

11. Pseudephedrine Schedule 5 Controlled Substance Bill - continued meetings with bill sponsor

12. Beer and Wine Coupons - referred to Senate Commerce this week

13. Local Option Sales Tax Bills - multiple bills filed

14. Retail Bills of Interest Filed this Week - (PLEASE REVIEW)


1. SB 1055 - CONSUMERS' REBATES REDEMPTION DEADLINE - Senator Richard Stevens (R-Wake)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1055v1.html
This bill requires persons offering rebates 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. The bill would be effective 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. The bill is scheduled for the Senate Commerce committee on Tuesday morning at 11:00am. We are to meet with Senator Stevens again on Monday with proposed language.

2. FILM PROCESSING/REPORTING OF CHILD PORNOGRAPHY - House Bill 27
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H27v2.html
HB 27 passed the House Judiciary II committee on Tuesday after staff worked to clarify the language of the bill. After much debate and discussion leading up to the committee hearings, HB 27 passed out of committee with new language that addresses our initial concerns and better clarifies the intent of the original bill. Representative Karen Ray (R-Iredell) presented the bill on the House floor and the bill passed unanimously. Under the revised version of HB 27:

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;

HB 27 was sent to the Senate and referred to the Senate Judiciary 1 committee, Chaired by Senator Martin Nesbitt (D-Buncombe). Your staff met with Senator Nesbitt yesterday to provide some background information for him. He mentioned that his committee may be hearing SB 69, introduced by Senator Steve Goss (D-Watauga), which is a companion bill to HB 27 and was appreciative of the heads up on the bill coming over to him from the House.

3. ELECTRONICS RECYCLING
Senate Bill 1525 - (Hagan/Dell Bill): http://www.ncga.state.nc.us/Sessions/2007/Bills/Senate/HTML/S1525v0.html

Senate Bill 1553 - (Cowell/Maine Bill): http://www.ncga.state.nc.us/Sessions/2007/Bills/Senate/HTML/S1553v0.html
The two bills we expected in the North Carolina Senate were filed this week on the last day of the bill filing deadline. Senate Bill 1525 was filed by Senator Kay Hagan (D-Guilford) who represents part of the area where Dell is located. This is bill supported by Dell which we have been working on with the retailers and manufacturers since last fall. By the list of co-sponsors, this is the bill we expect to see move as the Senate Majority Leader and the Senate Finance Chair are co-sponsors as is the Senate Minority Leader.

Senate Bill 1553 was filed by Senator Janet Cowell (D-Wake) who filed the ADF last year. Senator Cowell's bill more closely resembles the Maine program but is less likely to get traction.

As filed, both bills only deal with computers but we have had many conversations with Senator Hagan and she is aware that we would like to add TVs and is amenable to such an addition as is Dell.

4. ENERGY EFFICIENCY - SB 3 - Senator Charlie Albertson (D-Duplin)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S3v1.html
The North Carolina General Assembly's "Working Group on Energy" the interested parties (utilities, environmentalists, and consumers) met again today to negotiate the details of Senate Bill 3, the energy bill that calls for more renewable energy sources and restructures the way utilities recoup the costs of new plant construction. Attached, you will find the latest version of the bill with new changes highlighted in yellow.

NCRMA staff hosted a conference call yesterday with representatives from member companies and Preston Howard, President of the Manufacturers and Chemical Industry Council of North Carolina, to bring us up to speed on the details of the legislation. Also attached is a summary of the conference call provides a brief overview of the critical pieces of the bill.

At this point, we believe Senate leadership will soon be pushing for the working group to wrap up negotiations. This means that the time has come to submit our specific requests for changes. If you would like to submit changes to the legislation, please make all changes in the original statute. Due to its length, the statute could not be attached, but it can be found online at NCRMA's website: http://www.ncrma.org/Rates%20of%20Public%20Utilities.pdf

Also, in order for the lead staff to understand the scope of our members' power usage please provide us with a solid estimate of the 2006 kilowatt hours purchased by your company and an estimated dollar amount. As always, the information you send us will be kept anonymous and will be aggregated when given to legislators or the staff.

The next meeting of interested parties will meet Thursday, April 12 in Room 544 of the Legislative Office Building, (we are told it will most likely be around 2:00 pm, details later) which is located at: 300 North Salisbury Street, Raleigh, NC 27603-5925. We will let you know in advance what time the meeting will be held.

5. NATIONAL GUARD POST EXCHANGES - HB 670 - Representative Grier Martin (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H670v2.html
There have been two bills introduced that would allow the North Carolina National Guard to operate a post exchange. The two bills are House Bill 670 and Senate Bill 1354. House Bill 670 was introduced by Representative Grier Martin (D-Wake) who serves in the National Guard while Senate Bill 1354 was introduced by Senator Martin Nesbitt (D-Buncombe). HB 670 authorizes the North Carolina National Guard to enter into an agreement with the Army & Air Force Exchange Service to operate the exchange. The bill would add the North Carolina National Guard to a long-list of state run entities that are allowed to operate in commerce.

This morning, Andy Ellen met with Representative Grier Martin (D-Wake) and a 2-Star General from the North Carolina National Guard concerning the National Guard's request to operate a Post Exchange on the grounds of the National Guard Headquarters in Raleigh. Andy received a little more information on what the National Guard is proposing. The proposed Post Exchange would occupy a room in a federally owned building that is approximately 1,200 square feet and would sell: patches, uniforms, tactical items (knives, military backpacks etc) and some commissary items (crackers, drinks and snacks) for the 350 people who live full-time on this 25-acre campus and to the approximately 400 additional National Guardsmen who are on the campus for training on weekends.

There is one-entry point onto the campus and one gate to go through which reduces the access points. We were also informed that the National Guard is operating a similar 1,000 square foot facility in Charlotte . Finally, there are questions that abound as to whether the National Guard even needs this legislation because it is a federal entity. In Wednesday's Committee hearing there was strong military sentiment to approve this limited Post Exchange. The bill sponsor started off his commentary by reporting that there had been North Carolina casualties in Iraq that morning.

?? The question back to you as members is "Do you want us to draw a line in the sand and fight what appears to be a limited PX, in a time of war when it is possible that the National Guard has the authority to open up the PX with or without the legislation?" We look forward to your prompt response to this question.

6. REQUIRE SECURE PRESCRIPTION PADS - SB 162 - Senator Doug Berger (D-Franklin)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S162v1.html
Yesterday, NCRMA was invited by Senator Doug Berger (D-Franklin) to meet with a group of stakeholders that included Mike James with the Association of Community Pharmacists, the North Carolina Medical Society, the North Carolina Hospital Association, the North Carolina Sheriffs' Association, the State Bureau of Investigation, the Department of Health and Human Services and Berger's constituent who manufacturers the secure prescription pad for some states including New York. The topic was Senate Bill 162 as introduced by Senator Berger. Berger had almost abandoned his bill earlier this session after we met with him for two hours. However, Berger was re-energized by a Senate hearing held on Senate Bill 4 that allows a Sheriff to have access to prescription drug records.

In the hour-long meeting, Senator Berger gave everyone an opportunity to speak their mind and give the opinion about the pluses and minuses of requiring physicians to use secure prescription pads when writing prescriptions for controlled substances. It became very clear that the Medical Society, the Hospital Association and the Community Pharmacy groups wanted no part of this bill citing the movement to electronic records and the fact that the Controlled Substance Monitoring Program was slated to go into effect on July 1, 2007. The SBI and the Sheriff's Association did not voice an opinion that would lead anyone to think that such a measure was important to catching doctor or pharmacy shoppers.

Berger finally told his constituent that it was evident from the mood of the group that the bill would face several large hurdles and that he saw no need to push forward with it.

7. BEDDING SANITATION LAWS - SB 1331 - Senator Bill Purcell (D-Scotland)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1331v0.html
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. SB 1331 has been referred to the Senate Committee on Commerce. We have met with Senator Purcell as well as the legislative liaison with the Department of Environment and Natural Resources.

We have asked that the following issues be clarified or removed from the bill:

G.S. 130A-261(8) - Definition of "Secondhand sleep products" - The definition has been changed from items that are actually used by the consumer to items that are in a retail home buyer's home for one night or more. The previous definition should be used and the proposed definitional change should be deleted. Customers often buy comforters, pillows and sheets, take them home only to realize that the colors do not match, are the wrong size or buy several of these items and return all but one item. To classify these items as "second-hand" just because they were taken into someone's home and kept overnight is a stretch and would result in stores not allowing any returns on these items.

G.S. 130A-262(d) - Why was a determination made that records should be maintained for one year after a product is sanitized? This seems to be too long a time period.

G.S. 130A-264 - The change from allowing secondhand products - meaning products that are actually used rather than kept one night - to be kept in a separate room to a separate building must be deleted. Furniture stores often only operate in one building or in a shopping center and have no ability to store something in a separate building.

Why are duplicate tags required under G.S. 130A-265(a)?

Is there any need to specify the color of the ink in G.S. 130A-265(b)?

Is there a need to state on the law tag that a product contains used springs as required by 130A-265(e)?

In G.S. 130A-268, is it really necessary for every retailer that "imports" sleep products to obtain a registration number to sell sleep products in North Carolina? The current law only requires those that manufacture or sanitize sleep products to obtain a license number. This change would result in numerous retailers having to obtain a registration number and pay fees even if they only sell new sleep products. The term "importing" should be removed from this section.

8. PREPAID WIRELESS/SERVICE CHARGES - SB 1398 - Senator Charlie Dannelly (D-Mecklenburg)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1398v0.html
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. This bill has been referred to the Senate Finance Committee. We met with Senator Dannelly's research assistant this week to explain our concerns that this would create a new system for retailers to implement in order to collect the 911 service fee. We are hoping that Dannelly's office is steered more toward a study of this issue (below) rather than enacting this legislation.

STUDY PREPAID WIRELESS SERVICE CHARGES (SB 1400)

http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1400v0.html

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. This bill has been referred to the Senate Rules committee.

9. PROHIBIT GIFT CARD MAINTENANCE FEES - SB 1517 - Senator Robert Atwater (D-Chatham)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1517v1.html
Senator Atwater introduced SB 1517 this week which would prohibit the charging of a maintenance fee on a gift card (as defined). Maintenance fee means any fee that the owner is subject to when the gift card is redeemed, including a service or inactivity fee. Violation of the provision is punishable by a $1,000 civil penalty. Effective October 1, 2007, and applies to gift cards sold on or after that date.

10. CONTRIBUTORY NEGLIGENCE STUDY
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H446v1.html
The House Judiciary III committee met this week to hear HB 446, LRC Study Contributory Negligence, introduced by Representative Bill Faison (D-Orange). Faison has been a successful trial attorney in the triangle area. Chairman Ronnie Sutton allowed for a lengthy discussion of these issues surrounding contributory negligence, comparative negligence and comparative fault as well as joint and several liability. The committee voted unanimously to approve a study as long as it was comprehensive in its approach and did not narrow the scope solely to the issue of contributory negligence.

The bill will now be sent to Rules with other study bills. Should the study pass, the legislative research commission will make an interim report to the 2007 General Assembly, Regular session 2008 and a final report to the 2009 General Assembly upon its convening.

11. PSEUDOEPHEDRINE/SCHEDULE V DRUG - SB 1104 - Senator Julia Boseman (D-New Hanover )
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1104v1.html
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. Other interested lobbyists have also been meeting with Senator Boseman this week to discuss their concerns with this bill. This bill has not been scheduled for committee as of yet.

12. BEER AND WINE COUPONS - SB 1478 - Senator Ed Jones (D-Halifax)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1478v1.html
SB 1478 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. The bill has been referred to the Senate Commerce committee this week which was our preference.

13. LOCAL OPTION SALES TAX BILLS
More bills have been introduced that would grant authority to the local Boards of Commissioners to hold a referendum to impose an additional local sales tax (from ½ ¢ to 1¢) to fund school construction or to provide county debt relief. The following counties have had such bills filed this week: Ashe (HB 1028), Yadkin (HB 1031), Duplin (HB 1051), Wilkes (HB 1096), Catawba (HB 1106), Swain (HB 1135), Sampson (HB 1158), New Hanover (HB 1212) and Wayne (HB1216).

14. OTHER RETAIL BILLS OF INTEREST INTRODUCED THIS WEEK
House Bills:

HB 1019: UNCLAIMED PROPERTY PROGRAM/FUNDS (=S 941)
Sponsored by: Representatives Bruce Goforth (D-Buncombe) and Hugh Holliman (D- Davidson)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1019v1.html
This bill creates and funds three data entry position in the Department of the State Treasurer to assist with the unclaimed property program.

HB 1044: WORK OPPORTUNITY TAX CREDIT (=S 1145)
Sponsored by: Representatives William Wainwright (D-Craven) and Garland Pierce (D- Scotland)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1044v1.html
This bill mirrors SB 1145 which was introduced by Senator David Hoyle (D-Gaston) last week. The bills 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. HB 1044 has been referred to the House Judiciary 3 with a serial referral to Finance if reported favorably from J3.

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.

HB 1050: STATE EMPLOYEES/WELLNESS PILOT PROGRAM (=S 1066)
Sponsored by: Representatives Tim Moore (R-Cleveland), Bobby England (D-Rutherford) and Debbie Clary (R-Cleveland)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1050v1.html
This legislation appropriates to the Department of Health and Human Services, Division of Public Health $150,000 for the 2007-2008 fiscal year and $450,000 for the 2008-2009 fiscal year. Funds appropriated for the 2007-2008 fiscal year shall be used to establish and implement a pilot wellness program for State employees at the Cleveland County Family YMCA. Funds appropriated in this act for the 2008-2009 fiscal year shall be used to continue the Cleveland County YMCA pilot and to expand the pilot program to additional YMCA sites in other geographic regions of the State. The Cleveland County Family YMCA shall be the lead agency for the pilot program and shall convene a task force to establish standards for initial implementation and expansion of the pilot program to other YMCA sites in the 2008-2009 fiscal year.

HB 1085: SALES TAX EXEMPTION FOR US FLAGS - Representative Mitch Setzer (R-Catawba)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1085v1.html
TO EXEMPT THE SALES PRICE OF THE UNITED STATES FLAG FROM SALES AND USE TAX. Exempts from state and local sales and use tax the sale of the flag of the United States . Effective for sales made on or after July 1, 2007. This bill has been referred to the House Judiciary II committee Chaired by Rep. Dan Blue (D-Wake) and then, if favorable, to the House Finance Committee.

HB 1094: INCREASE PENALTIES FOR AUDIOVISUAL PIRACY - Representative Fred Steen (R-Rowan)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1094v1.html
This bill would make it a Class I felony to operate an audiovisual recording device to record, transmit, or otherwise make a copy of a motion picture without the written consent of the motion picture theater owner. Previously, the offense was a Class 1 misdemeanor for the first offense and Class I felony only for second or subsequent offenses. The bill provides for a minimum fine of $2,500 for a first offense and $5,000 for second or subsequent offenses and applies to offenses committed on or after December 1, 2007.

HB 1178: CITIES/REGULATE SMOKING
Sponsored by: Representative Pricey Harrison (D-Guilford)
http://www.ncleg.net/Sessions/2007/Bills/House/HTML/H1178v1.html
This bill would allow the city council of a city with a population in excess of 235,000 to enact and enforce a local ordinance, law, or rule regulating smoking in public places.

Senate Bills:

SB 1484: SALES TAX MEDICAID SWAP (=HB 1140, Rep. Pryor Gibson)
Sponsored by: Senator Tony Rand (D-Cumberland)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1484v1.html
This bill provides that the nonfederal share of Medical Assistance Program costs, excluding administrative costs, will be borne by the state, effective 7/1/07. Under the bill, 50% of the local sales and use tax imposed by counties would be converted to a state sales and use tax, effective 7/1/07. Each county would be required to ensure that municipalities within that county receive the same distribution under Article 39 that they received for 2006-07, and specifies that on or after 7/1/07, a county may enact or repeal only the local portion of the tax. The bill authorizes a board of county commissioners to levy the tax by a resolution specifying the tax rate, after 10 days' public notice. The rate of tax must not exceed 1% and must be an increment of 1/4%. The county may levy multiple taxes under Article 46, as long as total rate of all taxes levied under the article does not exceed 1%.

SB 1491: ADJUST PENALTY/ARSON & LARCENY - Senator Fletcher Hartsell (R-Cabarrus) - Referred to Senate Judiciary II
(HB 1206: Representatives Linda Johnson (R-Cabarrus) and Jeff Barnhart (R-Cabarrus) Referred to House Judiciary II)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1491v1.html
This bill increases the criminal penalties for second degree arson and certain offenses of larceny, embezzlement and obtaining property by false pretenses by amending the value ranges to which the criminal penalties apply.

The punishment for the offense of burning a dwelling that is unoccupied at the time of the burning increases from a Class G to a Class F felony and the bill amends GS 14-72 to delineate penalties for larceny of goods or property and receiving or possessing stolen goods or property based on the value of the goods or property.

Make changes in the criminal penalties, based on the value of the property involved, for the following offenses: larceny by servants and other employees; embezzlement of property received by virtue of office or employment; embezzlement of state property by public officers and employees; embezzlement of funds by public officers and trustees; embezzlement by treasurers of charitable and religious organizations; appropriation of partnership funds by partner to personal use; embezzlement by surviving partner; embezzlement of taxes by officers; and obtaining anything of value by false pretense.

The bill is effective December 1, 2007, and applies to offenses committed on or after that date. Specifies that prosecutions for offense committed before December 1, 2007, are not abated or affected by this act.

SB 1512: HEALTH INSURANCE RISK POOL/HEALTHY NC
Sponsored by: Senator Walter Dalton (D-Rutherford)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1512v1.html
This bill establishes the Healthy NC Program, effective January 1, 2008. The bill requires every insurer that offers individual health benefit plans, group health benefits plans, or both, that is among the 15 insurers with the highest health benefit plan market share in the state to offer qualifying group and individual health insurance contracts. The program must be evaluated annually and the Commissioner of Insurance (Commissioner) must report annually on the status of the program to the General Assembly and must make recommendations on specific issues. Qualifying health insurance contracts and the contract rates must be approved by the Commissioner. Subjects coverage under a qualifying health insurance contract to preexisting condition limitations. Provides that qualifying small employers electing to provide coverage provided under the program must make coverage available to employees' dependents. Sets out eligibility requirements for the purchase or renewal of a qualifying health insurance contract by small employers, self-employed individuals, and uninsured employed individuals. Provides for when an employer ceases to be a qualifying small employer, imposing waiting periods, and for the coverage of part-time employees. Also provides that specific requirements for uninsured employed individuals do not apply when the individual had health insurance coverage during the previous 12 months and the coverage was terminated due to listed circumstances. Establishes the process for applying for qualifying heath insurance contracts, and sets duties of the participating insurers. Requires that covered services and deductibles, co-payments, and other limitations on coverage include coverage for mental health services and prescription drugs. Sets conditions that premium rate calculations are subject to.

The Pool will offer at least two types of benefit plans and provides that during the first 12 months of coverage, the Pool will not cover health conditions existing within 12 months prior to coverage (except for federally defined eligible individuals and some other noted exception). Requires that the Pool assess member insurers in the amount considered necessary to carry out the Pool's duties. Provides that each insurer must not be assessed an amount exceeding $2 per covered individual insured by each insurer per month.

SB 1525: RECOVERY OF CERTAIN I.T. EQUIPMENT
Sponsored by: Senator Kay Hagan (D-Guilford)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1525v1.html
This bill creates the Manufacturer Responsibility and Consumer Convenience Information Technology Equipment Collection and Recovery Act (new Part 2E of Article 9 of GS Chapter 130A) to create a system for disposing of, and collecting and recycling, electronic computing, display, and printing devices, including desktop or notebook computers, computer monitors, portable computers, printers, and inkjet printers (but not personal digital assistants or televisions). Provides that no manufacturer may sell or offer for sale any covered device unless the manufacturer has visibly labeled the device and implemented a recovery program whereby the manufacturer offers to collect and recover the device at no charge to the consumer. Specifies collection options for manufacturers and requires them to submit an annual report to the Department of Environment and Natural Resources (DENR) regarding the number, type, and weight of covered devices collected and recovered. DENR may conduct audits and inspections to determine compliance with the act and compile and submit the reported information to the General Assembly no later than March 1 of each year. DENR also must develop a program, including a web site, for educating consumers about the collection and recovery of covered devices. Amends GS 130A-309.14 to require the Department of Administration to revise its bid procedures to require any person who submits a bid for a contract with a state agency for the purchase or lease of covered devices to certify compliance with the act. Effective January 1, 2008, and applies to covered devices sold or offered for sale on or after that date.

SB 1529: IMPLEMENT MODERNIZATION COMMISSION RECOMMENDATIONS
Sponsored by: Senator Dan Clodfelter (D-Mecklenburg)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1529v1.html
This bill would implement the local government recommendations that were set forth by the State and Local Fiscal Modernization Study Commission. Those recommendations would be as follows:

Enacts new Subchapter X of GS Chapter 105 authorizing municipalities and counties to levy a meals tax, a room occupancy tax, and a land transfer tax if approved by the voters of the municipality or county. If the question of whether to levy the taxes has not been defeated in a special election within two years, the governing board may levy the taxes by resolution after providing 10 days' public notice and holding a public hearing. The meals tax does not set a tax rate limit. The tax exempts:
(1) prepared food and drink served to residents in boarding houses and sold together with rental of a sleeping room,
(2) sales exempt from sales tax,
(3) sales through vending machines,
(4) prepared food and drink served by a retailer subject to the local occupancy tax if the charge for the prepared food and drink is included in a single, non-itemized sales price, and
(5) prepared food and drink furnished by an employer to an employee. A refund is provided for meal taxes paid by a nonprofit or governmental entity entitled to a refund of local sales and use taxes. Prohibits both a county and a city within the county from levying a meals tax at the same time. A county that levies the tax must share the proceeds of the tax with the county's municipalities. If a municipality or county levies a meal tax under the article, it loses any existing authority to levy the tax under a local act.

Provides that the occupancy tax authority supplements the authority of a county or city to levy an occupancy tax. If a local act authorizes a county to levy an occupancy tax, the maximum rate the county could levy is reduced by the maximum rate the county is authorized to levy under all local acts, and the maximum rate any city in the county could levy may not exceed 6% when added to the maximum rate the county is authorized to levy under all local acts. The maximum rate that a county may levy is 6% when added to the rate of any occupancy tax levied by a city in the county. The maximum rate that a city may levy is 3%.

Sets the land transfer tax rate at 50 cents on each $500 of the consideration or valued of the interest conveyed. If a county levies a land transfer tax under the act, the county may not also levy a local land transfer tax. A county levying a land transfer tax must share the proceeds of the tax with municipalities in the county.

Repeals the Third One-Half Cent Local Government Sales and Use Tax Act and any tax levied under the act.

Effective July 1, 2007: (1) amends GS 105-164.4 to increase the state sales tax from 4% to 4.5%, (2) amends GS 108A -54 to remove the county's Medicaid share, (3) amends GS 105-113.5 to increase the cigarette tax from 1.75 cents per cigarette to 3.75 cents per cigarette, and (4) amends GS 20-97 to increase the limit on the general municipal motor vehicle tax from $5 to $20.

SB 1543: COLLECTIVE BARGAINING FOR GOVERNMENT WORKERS
Sponsored by: Senator Larry Shaw (D-Cumberland)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1543v1.html
This bill would authorize public employees to organize for the purpose of collective bargaining and to create the Public Employee Labor Relations Commission. The Commission is made up of five members appointed by the Governor and four members appointed by the General Assembly. The bill requires that public employers meet and contract with a public employee organization that has been elected by a majority of the employees of the public employer. Under the bill: contracts required to cover wages, hours, and other conditions or employment;  disputes between the employer and the employee organization, or failure to reach agreement as to wages, hours, or other working conditions, must be submitted to arbitration; and, strikes are prohibited. Complaints about actions of either employers or employee organizations and appeals from arbitrations are heard by the Commission and appeals from Commission decisions are to the Superior Court in Wake County . The bill repeals GS 95-98, which made illegal contracts between government units and labor unions.

SB 1550: AIDING AND ABETTING ALCOHOL POSSESSION
Sponsored by: Senator Neal Hunt (R-Wake)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1550v1.html
This bill amends GS 18B-302(c) regarding aiding and abetting a person under lawful age in acquiring alcohol to specify that a parent or a person who (1) has legal or physical custody of a person less than 21 years of age, and (2) aids or abets the person under age 21 in the sale, purchase, possession, or consumption of any alcoholic beverages is guilty of a Class 1 misdemeanor and subject to a fine of $500. Also amends GS 18B-302(g) to provide that the court file a conviction report with the Division of Motor Vehicles (DMV) for a person convicted of a violation of subsection (c) (aiding and abetting) and amends GS 20-17.3 to provide that the DMV revoke the driver's license of any person convicted under subsection (c). Effective December 1, 2007, and applies to offenses committed on or after that date.

SB 1553: RECYCLING DISCARDED COMPUTER EQUIPMENT
Sponsored by: Senator Janet Cowell (D-Wake)
http://www.ncleg.net/Sessions/2007/Bills/Senate/HTML/S1553v1.html
This bill enacts new Part 2E of Article 9 of GS Chapter 130A prohibiting the disposal of discarded computer equipment in landfills or by incineration (effective January 1, 2011) and establishing the North Carolina Computer Equipment Responsibility Program. Provides that computer equipment collectors, certified computer equipment recycling facilities, manufacturers, and the state share the responsibility of recycling computer equipment and educating consumers on recycling opportunities. Requires each manufacturer of computer equipment sold in North Carolina to register with the Department of Environment and Natural Resources (DENR), pay a $10,000 registration fee, and pay an annual registration fee; the proceeds of the fees must be credited to the Computer Equipment Management Account, a non-reverting account established within DENR. Requires computer equipment manufacturers to submit a plan to DENR for the recycling or reuse of computer equipment produced by the manufacturer and discarded by households in North Carolina . Provides for minimum information to be included in the plans. Also requires manufacturers to pay the reasonable costs of operating a certified computer recycling facility that are attributable to handling discarded equipment by households in the state, the costs of transporting the discarded equipment, and the actual costs of recycling the discarded computer equipment. Allows manufacturers to participate in collective recovery plans with other manufacturers. Requires manufacturers to submit a report to DENR by January 31 of each year concerning listed areas. Requires computers sold in the state to include a label identifying the manufacturer. Prohibits manufacturers not in compliance with the manufacturer requirements from selling computer equipment in the state. Provides that only computer equipment recycling facilities certified by DENR may accept discarded computer equipment for recycling. Establishes environmentally sound management standards that must be met for a computer equipment recycling facility to be certified by DENR. Requires the consideration of the facility's cost charges for transporting and recycling discarded computer equipment in deciding whether to grant or renew a certification. Sets a certification application fee and renewal fee, which must be credited to the Computer Equipment Management Account. Sets operating requirements for certified computer equipment recycling facilities. Requires DENR to provide manufacturers and recycling facilities with a listing of each manufacturer's share of the orphan discarded computer equipment by January 31 of each year and supply manufacturers with a list of certified recycling facilities. Requires computer equipment collectors that participate in the program to ensure that discarded computer equipment generated by households served by the collectors is delivered to a certified recycling facility. Authorizes the Attorney General to commence a civil action against a manufacturer to recover costs, in addition to any fines or penalties imposed. Requires DENR to submit a report on the recycling of discarded computer equipment to the Environmental Review Commission no later than April 1 of each year. Amends GS 130A-309.09A to require counties and municipalities with a population exceeding 25,000 to provide an assessment of the collection of discarded computer equipment in their solid waste management plan. Amends GS 130A-309.14 to require the Department of Administration to review and revise its bid procedures so they comply with various standards of the federal Electronic Product Environmental Assessment Tool. Generally effective September 30, 2007, with 2010 effective dates for reporting requirements, January 1, 2008, effective date for provisions concerning computer equipment recycling facilities, and other later effective dates.

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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