The legislatures’ drag-on session continued this week with many legislators absent, attending the American Legislative Exchange Council’s (ALEC) convention in Austin, Texas. The House held session Monday, August 12, 2019, through Wednesday, August 14, 2019, while the Senate was only in town on Tuesday, August 13, 2019.
The House continues to place the motion to override Governor Cooper’s veto of the State Budget on the calendar every legislative day, but has still not taken a vote. 51 of the 55 House Democrats signed on to a letter last week, pledging that they will not vote to override Governor Cooper’s veto. This means that House leadership will have to wait until enough Democrats are not present to attempt an override, since they will not have the constitutionallyrequired three-fifths vote if all 51 House Democrats vote no.
It was reported this week that the average cost of a day in session for the legislature is around $40,000 to $50,000, and it is estimated that the session has cost around a million dollars since the budget was vetoed. House Minority Leader Darren Jackson calls this a waste of money, since House and Senate leadership are not having discussions with the Governor on a compromise budget. However, Senate President Pro Tem Phil Berger released a series of unanswered text messages that he sent Governor Cooper, inviting him to discuss the budget. Berger claims that the unanswered text messages prove that it is Cooper who is stonewalling budget negotiations. Cooper claims that he has reached out through staff to negotiate.
The legislature has already approved a stop-gap funding bill to ensure that federal dollars can still be spent during the ongoing budget stalemate, and a 2015 law prevents a government shutdown by keeping in place the recurring funding levels of last year’s budget until a new one is adopted.
Birthing Center / PBM Bill
The House Health Committee stripped a Senate Bill dealing with regulations on mini-trucks this week in a maneuver called a Proposed Committee Substitute (PCS) to create a new two-part bill that deals with birthing center regulations and Pharmacy Benefits Managers (PBMs). The first section of Senate Bill 432 establishes a licensure process for birthing centers and creates the NC Birth Center Commission to promulgate rules around accreditation for birthing centers and care standards. The second part of the bill would place new regulations on PBMs, and prevent them from charging pharmacists certain fees, including shipping and handling. It would also allow pharmacists to refuse filling a prescription that they feel is not in the best interest of the patient. Both provisions of the bill have been pursued in other bills, but had not gotten the traction that the sponsors wanted.
NC DOT Layoffs
The North Carolina Department of Transportation (DOT) has announced that a cash flow shortage will force them to lay off around 1,000 temporary employees. The Department cited increased costs due to hurricane-related road repairs and slow federal reimbursements for road damage costs. In an average year, DOT spends around $65 million on storm damage road repair, however, this year they have spent nearly $300 million. DOT has also spent $311 million defending the controversial Map Act, which prevents landowners from developing property in areas where future highway projects are planned. The legislature repealed the Map Act earlier this year. Representative John Torbett, who chairs the House Transportation Committee, said that the legislature is exploring options to help alleviate the cash shortage. DOT noted that the current budget stalemate between Governor Cooper and the legislature is not a factor in the budget hole.
WRAL: https://www.wral.com/cash-crunch-forcing-dot-to-lay-off-hundreds-of-temp-workers-contractors/18568924/
News & Observer: https://www.newsobserver.com/news/local/article233969157.html
Healthy NC Bill Passes House
The House passed an omnibus healthcare bill this week and the bill will now go to the Senate for a concurrence vote. The bill has nine parts that do the following: creates a Psychology Interjurisdictional Compact (PSYPACT), allows licensed marriage and family therapists to perform first examinations for involuntary commitments, eliminates redundant adult care home inspections, creates the Lupus Advisory Council, requires that insurers develop formularies for Center for Medicare and Medicaid Services (CMS) approved step therapy, requires insurers to cover oral chemo drugs the same as injected chemo, requires Medicaid to pay for telemedicine, requires private insurance and the State Health Plan to cover telehealth services, and creates the North Carolina Healthcare Solutions Task Force. The bill was approved on a 106-3 vote, but it is unclear what provisions the Senate will agree to, as they have historically blocked similar provisions dealing with what they consider to be insurance mandates.
Folwell’s “Clear Pricing Project” Fails
State Treasurer Dale Folwell is abandoning his “Clear Pricing Project” which attempted to cut State Health Plan (SHP) reimbursement rates and fix them to a percentage of the Medicare rate, after his plan failed to build an adequate provider network with the hospital groups in the State. Hospitals across the State refused to join Folwell’s new reimbursement model, claiming that simple rate cuts and reference-based pricing models threaten access to care, and do nothing to ensure that quality care is delivered. The provider community favors a value-based approach that focuses on preventative care and patient outcomes to reduce costs. Treasurer Folwell had recently extended the deadline to sign up for his experiment, however was not able to attract hospitals to join, leaving state employees out of network with their local hospital.
News & Record: https://www.greensboro.com/news/state/folwell-stopping-fight-for-now-with-n-c-hospitals-over/article_efba4725-436c-5d0c-bb70-56989660b398.html
2019 Session Laws
The following 195 bills have become law this session:
- SB 7: Bipartisan Ethics Appointments
- SB 75: Restore Ct. of Appeals Membership
- SB 77: Ag Disaster Fund/Certain Counties
- SB 214: Ensure Orderly 2019 Elections
- SB 12: Fill Certain Vacancies/Alexander & Burke Co.
- SB 56: Revenue Laws Technical Changes
- SB 4: Extend Terms of 2 Members/Coastal Carolina CC
- SB 272: Zoning for University Facilities-Durham
- SB 6: Dare County/CC Construction Funds
- SB 162: Loan Origination/Late Payment Charge Changes
- HB 263: Fill Vacancies/Modify 2018 Appointments
- SB 63: City of Kannapolis/Annexation
- HB 130: Allow Game Nights
- SB 505: Rural Job Retention Act
- SB 605: Highway Storm Recovery Act
- HB 1014: 2020 Census VTD Verification Program
- SB 310: Electric Co-Op Rural Broadband Services
- HB 363: Craft Beer Distribution & Modernization Act
- HB 233: State Auditor/Local Finance Officer Amends
- HB 532: DNCR Add New Trails & Various Changes
- HB 388: Immunizing Pharmacists
- HB 646: ID Approval/Flex Muni One-Stop
- HB 70: Delay NC HealthConnex for Certain Providers
- HB 9: Bessemer City Charter Amendment
- HB 201: Randolph Co. Register of Deeds Tax Cert
- SB 252: Dental Bill of Rights
- SB 138: Even-Yr Municipal Elections/Town of Black Mtn.
- SB 139: Even-Yr. Municipal Elections/Town of Montreat
- HB 336: Extend Suspension of Spencer Mountain
- SB 235: Franklin/Nash Municipalities/Unfit Dwellings
- SB 30 Stanly CC/Contracting Date Extension
- SB 381: Reconstitute/Clarify Boards and Commissions
- HB 301: CIP Revisions/Juvenile Code
- HB 179: Mini-Truck Classification
- HB 131: Repeal Map Act
- HB 82: Railroad Crossings/On-Track Equipment
- SB 648: Support Shellfish Aquaculture
- SB 448: Amend Appt For Compact on Education/Military
- SB 255: State Board Construction Contract Claim
- SB 151: Break or Enter Pharmacy/Increase Penalty
- HB 617: Allow Repeat Referral to Teen Court
- HB 578: Modify Legitimations Provisions
- HB 548: Modify Physical Therapy Definition
- HB 383: Topsail Beach Charter/Board Vacancies
- HB 1016: UNC Boards of Trustees Appointments
- HB 1017: Special Master Wake House Plan
- HB 415: Photos of Juveniles/Show-Ups
- SB 148: Public Records/Release of LEO Recordings
- SB 11: ABC Regulation and Reform
- SB 466: EDPNC Modifications
- HB 57: Create Term for Public Schs. & Codify NCVPS
- HB 389: ABC/Univ Athletic Facility
- HB 531: Tenants at Foreclosure Act Restored
- HB 658: Allow Donations of Unexpired Drugs
- HB 664: myFutureNC/Postsecondary Attainment Goal
- HB 432: Water/Sewer to Contiguous Dwelling Units
- HB 219: NAIC Accreditation Amendments.-AB
- SB 80: China Grove Satellite Annexation
- SB 242: Recreational Land Fee Changes
- SB 227: TP3/Principal Fellows Consolidation
- SB 84: Walkertown Zoning Authorizations
- SB 262: Union/Prohibit Certain Hunting Acts
- SB 674: Surry Co./Mt. Airy/Elkin City/Bd. Ed Partisan
- HB 15: Lexington/Dissolve Utilities Commission
- HB 240: Albemarle/City Labor for Business Ctr
- HB 299: Henderson Cty/Build Community College Bldgs
- HB 6: Burlington Airport/Lease/Contract Authority
- SB 225: Repeal Tuition Surcharge
- HB 537: Hwy Use Tax Vehicle Subscriptions
- HB 934: Right to Try Adult Stem Cell Treatments
- SB 219: Modify Teacher Licensing Requirements
- SB 55: Continuing Education for General Contractors
- SB 483: Vacation Rental Act Changes
- SB 610: Authorize Northern Peaks Trail
- SB 95: Veterans Memorial Funds/Do Not Revert
- SB 556: GSC People First Language 2019
- SB 529: Fees/Returned Checks
- SB 88: Electrician Requirements for Certain Orgs
- SB 313: Guar. to Streamline Afford. Housing
- SB 127: Protect Governmental Accountability
- HB 656: Medicaid Changes for Transformation
- HB 924: Teacher Contract Changes
- HB 474: Death by Distribution
- HB 67: Road Barrier Prohibition
- HB 310: Clarify Insurance Prod'r Crim. Bckgrd Check
- HB 812: Nutrient Offset Amendments
- HB 886: Study Participation of Operators in NC Pre-K
- HB 529: Utilities/Water and Wastewater Consumption
- HB 917: Emergency Declaration/Clarify Rd Closure
- HB 747: NC Missing Person Information Sharing
- HB 770: Freedom to Work/OLB Reform
- HB 871: Fair Contracts
- HB 4: Claremont Deannexation
- HB 52: Wrightsville Beach Local Act Amendment
- HB 204: Town of Beaufort/Annexation
- HB 349: Wilkes County Fire Tax-Procedure
- HB 489: Lincolnton-Lincoln County Airport Authority
- HB 80: Roanoke Rapids Lake/Unattended Equip
- HB 237: Brunswick County Zoning Procedure Changes
- HB 368: Bermuda Run/Speed Restrictions
- HB 98: Macon/Clay/No Right-of-Way Spotlighting
- HB 134: Filling Vacancy/Onslow County Board of Comm
- HB 170: Various Satellite Annexations
- HB 187: Amend Town of Elon Charter/Parking Ordinances
- HB 285: City of Sanford/Town of Beaufort/Vol Annex
- HB 239: Pitt County Animal Control Records
- HB 324: Local Hunting Omnibus
- HB 429: Navigable Waters/Manteo/Hyde
- SB 191: Out-of-State Law Enforcement/2020 Rep Convtn
- SB 399: Rehire High-Need Teachers
- SB 355: Land-Use Regulatory Changes
- SB 378: Local Economic Development Modifications
- SB 394: Changes to Estates & Trusts Statutes
- SB 311: Massage Board Membership
- HB 257: Motorcycles/Face Masks
- HB 224: Assault w/ Firearm on LEO/Increase Punishment
- SB 594: Register of Deeds Updates
- SB 525: Textile Hist. Site/Operate SE NC Museum
- SB 220: Removal of Political Signs by Citizens
- SB 500: Modify Advanced Math Course Enrollment
- SB 186: Beaufort-Morehead Cty Airport Authority/Amend
- SB 686: Appointments Bill 2019
- HB 492: Simplify Builder Inventory Exclusion
- HB 402: UNC Capital Projects
- SB 384: Clarify Motor Vehicle Dealer Laws
- HB 761: Clarify Wastewater Permitting Liability
- HB 758: MSD Expansion and Governance/DACS Study
- HB 755: Travel Insurance Amendments
- HB 735: Adopt Rules Incorporating 2017 Food Code
- HB 629: Law Enforcement Mutual Aid
- HB 495: No Municipal Reg/Off-Site Wastewater Systems
- HB 329: Renewable Energy Amends
- HB 156: Swain County Settlement Trust Fund
- HB 138: Damage Jail & Prison Fire Sprinkler/Penalty
- HB 106: Inmate Health Care & 340B Program
- HB 18: Allow Absentee Ballots/Fire District Election
- HB 757: Pender County/Butner Property Transfers
- SB 535: Authorize State Park/Clarify Corps Name
- HB 668: Various Higher Education Changes
- HB 590: Amend Administrative Procedure Laws
- SB 444: Allow Use of Oyster Shells As Serving Dishes
- HB 411: Modify School Qual./Student Success Indicator
- SB 210: Organ & Tissue Donation/Heart Heroes
- SB 316: Affordable Housing
- SB 297: Cancer Research Advisory Panel
- SB 462: Modifications to NC Appraisal Board
- SB 508: Civil Procedure/Deponent Declaration
- SB 606: Prioritize Native NC Plants on Highway ROW
- HB 107: PED Oversight/EPP Changes
- HB 323: Assess Costs of Local LEO Crime Lab Analysis
- HB 268: Amend On-Site Wastewater Laws/Misc. TC
- HB 243: State Human Resources Act Amendments.-AB
- HB 337: Change Salvage Vehicle Transfer Requirements
- HB 362: 15-Point Scale For School Performance Grades
- HB 546: Prohibit Counterfeit/Nonfunctional Airbags
- HB 620: Street Database/Manual/Public Record Except
- SB 29: Move Over Law/Increase Penalties/Amber Lights
- HB 198: Human Trafficking Commission Recommendations.-AB
- HB 325: Opioid Epidemic Response Act
- SB 194: West Jefferson/Saluda Satellite Annexations
- SB 420: NC Servicemembers Civil Relief Act
- SB 218: Clarify State Recognition - Lumbee Indians
- SB 145: Allow Sports/Horse Race Wagering Tribal Lands
- SB 332: Civil Procedure/Limitations/Land Surveyors
- SB 343: Various Education Law Changes
- SB 391: Expand Youth Internship Opportunities
- SB 478: Modify Appointment Reporting
- SB 493: DVPO Abuser Treatment/Time of Expiration
- SB 523: Laws Clarifying & Administrative Changes
- SB 604: Amend NC Veterinary Practice Act
- SB 108: PED/Safekeeper Health Care Cost Recov. Pract
- HB 469: Various Family Law Changes
- HB 628: 2019 Banking & Mortgage Corrections & Changes
- HB 675: 2019 Building Code Regulatory Reform
- HB 50: Allow Hyperbaric Oxygen Therapy for TBI/PTSD
- HB 922: Enhance Insurance Coverage/Educ. Buildings
- HB 264: GSC Technical Corrections 2019
- SB 532: Amends Probate/Trusts/Wills Choice of Law
- HB 220: Insurance Technical Changes.-AB
- SB 302: Update ACH Svc & Care Plan/Bd of Nursing
- SB 385: Clarify/Auto Dealers Regulatory Req
- SB 290: ABC Regulatory Reform Bill
- SB 9: Female Genital Mutilation/Clarify Prohibition
- SB 301: Regional School Modifications
- SB 366: 9th/10th Grade/College Transfer Pathways
- SB 413: Raise the Age Modifications
- SB 498: Facilitate Response to Disasters
- HB 724: Truth in Caller ID Act
- HB 872: Underground Utility Safety Act/Changes
- SB 190: Expand Special Assessments for Dam Repair
- HB 228: Modernize Laws Pertaining to NC Medical Board.-AB
- HB 961: Ensuring Authorization of Federal Funds
- HB 760: Expand Loss Prevention Investigations
- HB 391: Passenger Protection Act
- HB 590: Modify Continuing Ed for Real Estate Brokers