July 9, 2004

BILLS MOVING BUT NO BUDGET YET

At the close of another week of business at the General Assembly, the SFY 2005 budget remains in limbo, while bills continue to speed through both Houses. Today, legislators passed a second Continuing Resolution to further extend the SFY 2004 budget until Saturday, July 17. It appears possible at this point that legislators will meet this deadline. However, the session seems unlikely to conclude before the end of next week. Legislators, a number of whom face tough reelection fights, are eager to finish before the July 20 primaries.

BUDGET UPDATE

The budget negotiations continued behind closed doors this week. A few HHS budget items remain in contention as budget negotiators find it nearly impossible to agree on how to cut the last few million to reach their HHS spending objective. Back on the table, for example, are cuts to child care subsidy funds that will “carry forward” from the last budget year to this one. These funds equal less than 2 percent of the total budget and are the cushion for the program.

The bottom line is that a few more million needs to be put toward HHS and cutting must stop.

Also holding things up is a bill to allow debt financing for various new health facilities at five of the state universities. The Senate wants to fund two facilities – at UNC-CH and ECU – but the House added three more at three other universities. The Senate Republicans have repeatedly voiced their concern about adding to the State’s debt. Senate Democratic leaders are concerned that the UNC Board of Governors has not approved the three additional facilities. The House says all five must be fully funded for the bill to pass in the House. Stay tuned…

BILL STATUS REPORT

Note: If the Bill title is in color it is a “hyperlink” to the latest version of the bill on the NC General Assembly Web site. Click on it and you can read the bill. You can look up calendars, bills, and even voting records at www.ncleg.net.

Taxes & Business Incentives

HB 1760 – Clawback Failed Incentives
Sponsors: Luebke, Coates, Cole
Status: Passed the House on 6/30/2004; referred to the Senate Finance Committee; no public action in the Senate

Description: This bill requires that a corporation return all or part of an economic development incentive if the recipient business does not fulfill its responsibilities under incentive law, contract or both. Department of Revenue must publish list of credits forfeited and why they were forfeited, and of credits that were erroneously taken. Department of Commerce must monitor business’s performance and trigger the “clawback” if the business does not meet its obligations. This information is to be reported to the General Assembly twice a year.

Note: This excellent law passed the House 113-0. It received no public action in the Senate this week.

Child Safety

SB 1218 – Child Restraint System Modified
Sponsor: Purcell
Status: Passed the Senate; passed Second Reading in the House (click to see how the legislators voted)

Description: This bill would require children over 40 lbs. and up to 80 lbs. or 8 years old, to sit in a booster seat when in the car. There are special exceptions in current car seat law – that would apply to this as well - for every possible concern about this bill. Nonetheless, some oppose it because they don’t want to interfere with parental choices or make things more complicated for families or private day care.

Note: Third Reading in the House is scheduled for Monday, July 12.

Child Protection and Welfare

HB 1354 – Strengthen Domestic Violence Laws
Sponsors: McLawhorn, Sherill
Status: Passed the House; passed Second Reading in the Senate

Description: This bill includes several provisions to strengthen state domestic violence laws. It includes provisions to increase penalties for several forms of assault that commonly occur in domestic violence situations. For example, “assault inflicting serious physical injury by strangulation” would be a Class H felony, carrying a potential sentence from probation to two years in prison. An offender charged a third time with misdemeanor assault would face a felony charge. The bill also would help fund legal services for victims of domestic violence. Other provisions would assist victims with child custody claims and offer protection to workers who must leave work to secure a protection order.

HB 1453 – Discharging Firearm on School Property
Sponsors: Moore, Clary
Status: Passed both the House and Senate; sent back to the House for concurrence; if the House concurs, it will go to the Governor for signature

Description: This bill would make it a felony to intentionally fire a gun on school property, punishable by a prison sentence of 13 to 16 months for a first-time offender. Previously, someone who discharged a firearm could be punished only for the offense of possession of a weapon on school property.

Note: Covenant has endorsed this bill.

Education

HB 1457 – Community Solutions for Suspended Students
Sponsors: Preston, Warner

Status: Passed the House on 7/1/2004; referred to the Senate Education Committee

Description: This bill is from the House Interim Committee on Providing Education for Students in Long-Term Suspension. This bill provides for a representative from a local Alternative School or program to be added to the local Juvenile Crime Prevention Council (JCPC) and then for the JCPC to assess the services and needs it has for serving students in long-term suspension (over 10 days) including whether they can serve these kids at all, what it would cost to serve all in need, and ways to facilitate the process of getting LTS kids into appropriate settings.

Note: This bill has not yet been scheduled for hearing in the Senate.

HB 1459 – SBE/Teacher Requirements
Sponsors: Preston, Warner
Status: Passed by both the House and Senate; sent to the Governor for signature

Description: This bill is from the House Interim Committee on Providing Education for Students in Long-Term Suspension.

HB 1460 – Intervention Plans for Suspended Students
Sponsors: Preston, Warner
Status: Passed the House on 7/1/04; referred to the Senate Education Committee

Description: This bill is from the House Interim Committee on Providing Education for Students in Long-Term Suspension. The bill requires schools to create an intervention plan for all students suspended 10 days or more and for students with multiple short-term suspensions. The bill also requires the school to notify the parents/guardian and involve them in the development and implementation of the plan.

Note: This bill has not yet been scheduled for hearing in the Senate.

HB 1464 (= SB 1213) – School Calendar Changes
House Sponsors: C. Wilson, Culpepper, Miner, Hill
Senate Sponsor: Dannelly
House Bill Status: Favorable report from the House Commerce Committee; favorable report from the House Appropriations Committee
Senate Bill Status: Referred to the Senate Education Committee – bill has not been heard in Senate.

Description: This controversial bill would require school systems to lengthen summer vacation, but would not eliminate any student school days. Teachers and other school staff would keep same pay, but would have to work only 10 teacher work-days, rather than the current 20. Realtors, town mayors and other business people from the coastal communities and some mountain areas want this two-week extension of summer vacation to increase revenues and the supply of student workers. NCAE, the state teacher association, also supports the bill. School Boards, Administrators and local systems oppose the bill because it interferes with local control of the school calendar. Parents of special needs children oppose the bill because it halves teacher workdays they currently use to meet with teachers about their child’s education plan. State Board of Ed (SBE) and NC Citizens for Business and Industry asked that the SBE and the Commission on Travel and Tourism be required to study the matter, come to agreement and bring a new, mutually agreeable bill to 2005 legislative session. SBE, DPI and NC Justice Center are concerned about loss of teacher workdays when teacher training is usually done. An amendment to send to SBE for study was not allowed in House Commerce Committee. An amendment to send bill to Education committee was defeated in House Commerce. Business groups argued that this is good for low-income kids because they can work two more weeks in the summer and earn more money. This argument ignores that low-income parents of young students will have to find and pay for two more weeks of summer child care or camp, and that many older students work during the school year already. Discussion in the House Appropriations Committee focused on the fiscal impact of the loss of the ten teacher work-days. The Fiscal staff caution that the loss of these days will cause teachers to use additional sick leave and vacation days during the school year. This, in turn, would lead to an increased demand for substitute teachers. The staff expressed uncertainty over how many additional days teachers would take off. They estimate that paying for substitutes for these additional days could cost the State as much as $27 million.

Latest Action: Bill has not yet been scheduled for a vote on the House floor. It may be heard early next week.

HB 1455 – SBE Study ALP Funding
Sponsors: Preston, Warner
Status: Passed both the House and Senate; signed by the Governor – It’s Law!

Note: This bill is from the House Interim Committee on Providing Education for Students in Long-Term Suspension.

HB 1456 – SBE Study Use of At-Risk Funds
Sponsors: Preston, Warner
Status: Passed both the House and Senate; signed by the Governor – It’s Law!

Note: This bill is from the House Interim Committee on Providing Education for Students in Long-Term Suspension.

Juvenile Justice

HB 1795 – Modify Youth Facility Debt Authorization
Sponsor: Luebke
Status: Passed both the House and Senate; will go back to the House for concurrence next week; if the House concurs, it will go to the Governor for signature

Description: This bill allows the state to obtain $4.46m in debt financing to begin the next stage of planning and design of new Youth Development Centers.

SB 1393 – Local JCPC Funds
Sponsor: Nesbitt
Status: Ref to Senate Appropriations Committee

Note: Part of budget negotiations. Both budgets provide $500,000, but there are differences in how it would be distributed.

HB 1665 – Venue for Juvenile Hearings
Sponsor: Frye
Status: Passed the House; referred to the Senate Judiciary II Committee

Description: This bill would allow dispositional hearings of a juvenile who is in residential treatment to be held in the county in which the juvenile is receiving treatment unless it is in the best interest of the juvenile to hold the hearing in another county. This bill has passed the House and gone to the Senate for consideration.

Mental Health

HB 1490 – Study Mentally Ill LTC Resident Issues
Sponsors: Weiss, Clary, Nye
Status: Referred to the Health Committee – reported without prejudice; re-referred to the Appropriations Committee

Note: In House budget as study bill.

SB 1148 – Care for Mentally Ill in LTC Facilities
Sponsor: Swindell
Status: Passed the Senate; favorable report on committee substitute from the House Committee on Aging

Note: Bill expected to go to floor of House next week.

Health

SB 582 – Public Health Preparedness and Response
Sponsor: Purcell
Status: Passed both the House and Senate; signed by the Governor – it’s law.

Economic Security

SB 1435 – Home Mortgage Protection Pilot Program
Sponsor: Dalton
Status: Referred to the Senate Appropriations Committee

Note: In Senate budget to be piloted in some counties hard hit by layoffs.

Other

SB 1225 (= HB 1532) – 2004 Technical Corrections Act
Senate Sponsor: Hartsell
House Sponsor: Culpepper
Senate Status: Discussed twice in the Senate Judiciary I Committee
House Status: Referred to the House Rules Committee

Note: To be discussed again at the Senate Judiciary I Committee meeting on Monday, July 12, 5:30 pm, Room 1027, Legislative Building.

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