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Below is an update on the activity at the NC General Assembly this week.

Budget Update
State budget negotiations continued behind closed doors this week at the General Assembly. The top sticking points between the two chambers remain a tax package and how reserves will be spent on economic development and capital projects. The goal was to have a budget in place before the start of the new fiscal year on July 1, but it will likely be mid to late July before the legislature takes a vote. The House and Senate are taking a legislative break next week and will return to Raleigh the week of July 10th.

*Due to the legislative break, we will not be sending out a newsletter next Friday. Our regular updates will resume Friday, July 14.

Veto Override Votes
On Tuesday, the House voted to override six of Governor Cooper’s vetoes. That is the most override votes ever held in a single day. The six pieces of legislation are as follows:

• S299, Reimburse Late Audit Costs with Sales Tax Revenue – This bill would authorize the Local Government Commission to withhold a county or municipality’s sales tax distribution if the county or municipality fails to submit an annual audit report.
• S329, Retail Installment Sales Act Amendments – This bill would modify the maximum finance charge rates that may be applied to consumer credit installment sale contracts. It would also increase the default charge for past due installment payments from $15 to $18.
• S331, Consumer Finance Act Amendments – This bill makes various changes to the statutes in the Consumer Finance Act.
• S364, Nondiscrimination & Dignity in State Work – This bill would prohibit discrimination against job applicants based on personal beliefs or political affiliations. The bill would also prohibit concepts related to race or sex from being promoted in the workplace of state employees.
• S582, The North Carolina Farm Act of 2023 – This is the legislature’s annual bill that would make various changes to laws pertaining to agriculture, forestry, and the Department of Agriculture and Consumer Services.
• H750, Address ESG Factors -This bill would prohibit state agencies and state pension plan fiduciaries from discriminating in employment decisions based on environmental, social, and governance criteria.

The Senate voted to override S299, S329, S331, and S364 last week. They also voted to override S582 and H750 this week meaning all six bills are now Session Law.

Parents Bill of Rights
This week, the House passed S49, Parents Bill of Rights with a vote of 66-47. One Republican voted in opposition. This bill would require public schools to provide parents with information regarding their student’s education, as well as provide them with notifications about the student’s physical and mental health. The bill would also require health care practitioners to obtain written consent from the parent of a minor child before providing treatment and would prohibit instruction on gender identity or sexuality in the curriculum of students from kindergarten to fourth grade. The Senate voted to concur with the House changes with a party line vote of 26-13. The bill will now be sent to Governor Cooper for consideration. We anticipate he will veto the legislation.