KTS Strategies brings years of experience providing clients in a diverse range of industries with comprehensive policy and advocacy advice before federal, state, and local agencies. In North Carolina, we advise local municipalities, corporate transportation entities, nonprofit organizations, statewide associations, government vendors, and Fortune 500 companies before the North Carolina General Assembly and executive branch.
Below is an update on the activity at the NC General Assembly this week.
House Budget Released
The House released their biennial budget proposal on Wednesday. Some of the highlights of the $29.7 billion spending plan include:
- Average teacher pay raise of 10 percent over two years;
- State employee pay raise of 7.5 percent over two years;
- Individual income tax rate reduction to 4.5 percent in 2024 (a year earlier than planned) and franchise tax rate reduction;
- $1 billion for transportation needs; and
- $1 billion for water and sewer infrastructure.
The bill was approved by the House Appropriations Committee on Thursday after consideration of nearly 50 amendments. The proposal will be heard in the remaining committees and on the House floor next week.
Sports Betting
H347, Sports Wagering, passed the House this week. The bill would authorize, regulate, and tax sports betting in North Carolina. The Lottery Commission would be responsible for regulating and issuing licenses to 10 to 12 sports wagering operators. A 14 percent privilege tax would be levied on each operator. A portion of tax revenues would be distributed to DHHS for problem gambling, the NC Department of Parks and Recreation for grants to benefit youth sports, certain universities to support collegiate athletic departments, and the North Carolina Outdoor Heritage Advisory Council for grants for sports team travel assistance.
Multiple floor amendments were offered that would have removed college and amateur sports, increased licensing fees, and prevented family members of participants from placing bets on those events. All amendments failed. The bill passed third reading on the floor Wednesday with a vote of 64-45. It will now head to the Senate for consideration.
Veto Override Vote
Last Friday, Governor Cooper vetoed S41, Guarantee 2nd Amendment Freedom and Protections. The bill would remove the requirement to obtain a pistol purchase permit from the sheriff’s office prior to the purchase or receipt of a pistol. Criminal background checks would still be required prior to purchase of a pistol from a federally licensed dealer. The bill would also authorize concealed carry for certain law enforcement facility employees and authorize carrying a handgun in a place of religious worship that is also educational property under certain conditions. Additionally, it would create a statewide firearm safe storage awareness initiative to educate the public about safe firearm storage, facilitate the distribution of gun locks, and provide local communities with a toolkit to launch local firearm safe storage initiatives.
This week, the NC General Assembly held votes to override the Governor’s veto. A three-fifths majority vote of all members present is necessary for a successful override vote. Both chambers successfully voted to override the veto along party lines. The final vote was 30-19 in the Senate and 71-46 in the House. The bill is now Session Law 2023-8.
