North Carolina Legislative Report

by Moore & Van Allen PLLC

The General Assembly’s Short Session began Wednesday, May 14, 2014.  The MVA Public Affairs Legislative Report on North Carolina will be distributed weekly to keep you up to date on the latest legislative issues facing the state.

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On The Floor

This week, the House and Senate voted on final passage of S 786, the Energy Modernization Act.  The final bill was modified in the House and will allow the state to issue drilling permits 60 days after the rules development by the Mining and Energy Commission are approved.  The bill has been sent to the Governor for his signature.  The House and Senate also passed an omnibus tax bill.  The Governor signed this bill into law on Thursday. 

Additionally, the Senate passed S 734, the Regulatory Reform Act of 2014.  This bill seeks to remove outdated or burdensome regulations.  It has been send to the House for consideration. 

The Senate is bringing its version of the budget to the floor later this afternoon for consideration, and the final vote on the budget will take place likely after midnight.

Committee Reports

Senate Finance Committee

The Committee met on Tuesday, May 27, and Thursday, May 29.  On Tuesday, the Committee gave approval to H 1050, Omnibus Tax Law Changes.  The bill is a recommendation of the Revenue Laws Study Committee and passed the House last week.  The largest difference between the version approved by the Committee and the one that passed the House dealt with local privilege taxes.  The bill continued its rapid movement through the General Assembly.  It has now passed the full Senate, been agreed to by the House, and presented to the Governor for action. 

On Thursday, the Committee heard H 230, Clarify Read to Achieve/Sch. Perform. Grades, and S 744, Appropriations Act of 2014.  H 230 was in the Committee due to a provision imposing a fee for certain reading camps.  Discussion of the bill was limited to the finance impacts.  S 744 was in the Committee due to several minor tax law changes, a handful of fees, and some changes with respect to debt financing.  Both bills easily passed the Committee.

Senate Education/Higher Education Committee

The Committee met on Wednesday, May 28 to hear H 230, Clarify Read to Achieve/School Performance Grades. H 230 gives school districts more flexibility in implementing the state's Read to Achieve program.  H 230 received a favorable report in Committee and was approved 44-1 on the Senate Floor.  The bill now goes to the House for consideration.

Senate Appropriations/Base Budget Committee

The Committee met Thursday, May 29, to take up S 744, the Appropriations Act of 2014.  The Senate Appropriations Committee Co-Chairs and Sub-Committee Chairs reviewed the provisions included in the Senate budget for other members of the Senate Appropriations Committee and the public.  The Committee passed the bill and it was sent to the Senate Finance Committee.

House Public Utilities Committee

The Committee met on Tuesday, May 27.  The committee took up S 786, the Energy Modernization Act. During the committee meeting, Rep. Stone offered an amendment that was adopted which removed the July 1, 2015 start date to allow permits to be issued.  The amendment authorizes the issuance of permits 60 days after the state finalizes rules for onshore natural gas development.   The Committee passed the measure and it was referred to the House Finance Committee. 

House Education Committee 

The Committee met on Tuesday, May 27, to address three bills.  H 1060, Military Student Identifier, requires the State Board of Education to identify military-connected students using the Uniform Education Reporting System.  H 1060 received a favorable report in Committee and was approved 118-0 on the House Floor.  H 1146, Set Date for Community College Election, sets June 17, 2014, as the date for the House of Representatives to elect a member to fill an unexpired term on the State Board of Community Colleges.  H 1146 received a favorable report in Committee and was approved unanimously on the House floor.  H 1040, Improve Admin Program Monitoring at DPI, was brought up for discussion purposes only.  H 1040 seeks to improve the Department of Public Instructions monitoring of certain administrative programs.

House Judiciary Subcommittee B

The Subcommittee met on Tuesday, May 27, to address two bills.  H 1032 Patent Abuse Bill, aims to prevent patent abuse in North Carolina by establishing civil penalties for unfair assertions of patent infringement. H 1032 received a favorable report in Committee and was placed on the House calendar for June 3.  H 1027, DWI Interlock Violation/DMV Hearing Site, allows hearings on a license revocation as a result of ignition interlock violation to be held in the licensee’s county of residence.  H 1027 received a favorable report in Committee and was approved 115-1 on the House floor.

House Regulatory Committee

The Committee met Wednesday, May 28, to take up more than a dozen bills for consideration. H 1081, Reform Agency Review of Engineering Work; H 1105, Local Erosion Prgrms/Takeover Existing Plans; H 1106, Erosion Control Designer Certification; H 1109, Clarify Existing Rule Readoption Process; H 1140, Amend Hotel Carbon Monoxide Alarm Requirement; H 1143, Burden of Proof in Certain Contested Cases; H 1152, Eliminate Obsolete Boards and Commissions; H 1153, OAH Electronic Filing; H 1163, Streamline Rule-making Process; H 1165, Amend OLB Reporting Requirements; H 1170, Disapprove Funeral Board Rule and; H 1173, Licensing Boards Rules for Prof. Corps, were all passed out of Committee. No action was taken on H 1136, Authority to Adopt Certain Ordinances.

House Finance Committee

The House Finance Committee met on Wednesday, May 28.  The Committee took up S 786, the Energy Modernization Act of 2014, and reviewed the finance related provisions of the bill.  The Committee passed the bill and it was sent to the House floor for consideration.

House Environment Committee

The House Environment Committee met on Thursday, May 29 to address two bills.  H 1081, Reform Agency Review of Engineering Work, seeks to reform the process by which regulatory authorities review submittals of applications for permits, licenses, and approvals, as recommended by the Environmental Review Commission.  H 1166, Clarify Gravel Under Stormwater Laws, clarifies the regulation of gravel under the state stormwater laws.  Both bills received a favorable report and were placed on the House calendar for Tuesday, June 3.

In the News

WRAL: McCrory signs tax changes into law

Greensboro News-Record: Views differ on new N.C. job agency

Charlotte Observer: NC legislature gives fracking final approval

Raleigh News & Observer: Senate budget would cut elderly, blind and disabled from Medicaid rolls

Asheville Citizen-Times: McCrory opposes Senate teacher pay plan

Raleigh News & Observer: Breaking down key NC Senate budget proposals

AP: Reading program for NC students changed by Senate

Charlotte Observer: Jennifer Roberts says she’s running for Charlotte mayor next year

AP: Dominion proposes gas pipeline from W.Va. to NC


Mon, June 02, 2014

4:00 PM

Session Convenes (House)


Tue, June 03, 2014

10:00 AM

Health and Human Services (House)

Status Reports Filed by Guardians. (H1179)
Strategies for Improving MH-DD-SAS. (H1132)
State Plan Amendments/Submission and Notice. (H1046)
Study Expansion of Health Care Transparency. (H1065)
Study Establishment of New Optometry Schools. (H1066)

544 LOB

10:00 AM

Education (House)

Education Longitudinal Data System Changes. (H1150)
Schematic Diagrams and Keys of Schools. (H1062)
Respect for Student Prayer/Religious Activity. (S370)

643 LOB

12:00 PM

Program Evaluation -- CANCELLED (Senate)

Periodic Review and Expiration of Rules. (S32)
Modify Internal Auditing Statutes. (S446)
Omnibus State IT Governance Changes. (S448)

421 LOB

12:00 PM

Transportation -- CORRECTED (House)

DMV Inspection Station Case Continuances. (H1025)
MAP-21 Update/Rail Safety. (H1026)
Single License Plate Renewal Sticker. (H1028)
DMV Conversion of Paper Titles. (H1029)
Agritourism Sign Location/DOT Standards. (H1071)
Turnpike Authority Annual Audit Date Change. (H1072)
Repeal Report/Right Turn on Red. (H1073)
DOT Study of State Parks & Trails Signage. (H1086)
Drivers License Material Technical Standard. (H1122)
Exclude Federal Lands Access Funds from STI. (H1123)
DOT Minority/Women Business Program. (H1124)
Alt. Criteria under STI for Emergency Repair. (H1125)
DOT Partnerships with Private Developers. (H1126)

643 LOB

1:00 PM

Agriculture (House)

NCSU Plant Sciences Research Initiative. (H1188)

643 LOB

2:00 PM

Agriculture/Environment/Natural Resources (Senate)

Governor's Coal Ash Action Plan. (S729)

643 LOB

Wed, June 04, 2014

10:00 AM

Education/Higher Education -- CORRECTED (Senate)

Eliminate Obsolete Boards and Commissions. (S777)
Replace Common Core To Meet NC's Needs. (S812)
Ensuring Privacy of Student Records. (S815)

544 LOB

10:00 AM 

Rep. Hamilton - Press Conference

Press Room LB

10:30 AM

Rep. Insko - Press Conference (Date Change &Time Change)

Press Room LB

Thu, June 05, 2014

10:00 AM

Commerce and Job Development (Joint)

544 LOB



DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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