This week, the General Assembly busily discussed a number of matters of great importance to this state. As our session nears its close, the House approved legislation to improve the state’s justice system, strengthen the state’s coastal insurance coverage and make our open meeting and public record laws stronger. We also approved a number of measures to make our state a better place for children.
We continue to work with our Senate counterparts to refine the state’s budget plan for the next two years. As you know, this has been the most challenging budget we’ve faced in several decades. The gap between our anticipated budget and projected revenue is more than $4 billion. Money from the federal government and expected tax revenue increases will cover about half the gap. We will make up the other half of the shortfall – more than $2 billion – with cuts in state programs.
I am including information below about some of the legislation taken up in the House this week. I hope you will contact me if you have questions, or if I can be of service. Thank you as always for your support and your interest in our state.
Improving Government
_The “Open Government Act” has passed the House, and is headed to the Senate (HB 1134). The legislation creates the Open Government Unit of the Department of Justice, which would serve as a moderator or mediator in resolving public records and open meetings issues between parties. The Open Government Unit is designed to further the goal of transparency in government and the principle that public records are the property of the people. Among other things, the legislation would provide that the successful plaintiff in a public records dispute is entitled to reasonable attorney’s fees.
_The state’s 2005 Anti-Identity Theft Protection Laws would be expanded under a bill that has passed both bodies of the Legislature (SB 1017). If enacted, consumers in North Carolina could be issued a security freeze on their credit at no cost. The bill would do a number of other things as well, including authorizing certain court officials to remove Social Security numbers from documents on their Web sites and compelling businesses and government agencies to report all security breaches to the Attorney General’s office, instead of just those that affect more than 1,000 people. The bill will now go to Gov. Perdue to be signed into law.
_State lawmakers have ratified legislation that is meant to increase child support collections (SB 817) by increasing the penalty for failing to pay. The legislation provides that a person who commits criminal contempt by failing to comply with an order to pay child support is subject to censure, imprisonment up to 30 days, a fine not to exceed $500, or any combination of the three. It would also permit the imposition of a sentence of up to 120 days for a single act of criminal contempt for failure to pay child support, provided the sentence is suspended upon conditions reasonably related to the contemnor’s payment of child support. The bill will now go to Gov. Perdue to be signed into law.
Insurance
_House lawmakers have approved legislation that makes improving changes to the state’s Coastal Property Insurance Pool (CPIP), presently known as the Beach Plan (HB 1305). Under the existing system, the potential liability of the insurance companies that participate in the state’s coastal plan is unlimited. Proponents of the bill claim that action needs to be taken promptly since the liability of the plan has tripled over the past 10 years to almost $74 billion. This unlimited liability could lead insurers to pull out of the state, resulting in reduced competition and higher rates. Among other things, the bill would decrease the maximum coverage limit per home from $1.5 million to $750,000 and cap the amount of money that private insurance companies who participate in the plan are liable for at $1 billion. Homeowners outside of the 18 coastal counties that participate in plan could be asked to pay up to 10 percent more a year only if storm damage in a season exceeded $3 billion. The most the plan has ever paid out in claims in a previous year is $150 million. The bill will now go to the Senate for further consideration.
_There would be more transparency in health plan provider contracts under a bill that has been ratified by the General Assembly (SB 877). If enacted, the legislation would require that the main body of the contract include provisions of the state law which materially affect the business relationship between physicians and health plans, as identified by the Commissioner of Insurance. The bill will now go to Gov. Perdue to be signed into law.
Justice
_The North Carolina Racial Justice Act passed the House this week (SB 461). The intent of the legislation is to provide fair and reliable imposition of capital sentences by prohibiting seeking or imposing the death penalty on the basis of race. The bill would establish a process by which relevant evidence could be used to establish that race was a significant factor in seeking or imposing the death penalty on a defendant. The bill would apply retroactively, which has opponents worried about delaying pending executions, clogging the already jam-packed court system, and the high costs of implementing the law. However, proponents of the legislation claim that passage of the bill is necessary to ensure that no person in this state is executed on the basis of race. The bill will now return to the Senate for a concurrence motion.
_Both bodies of the Legislature have passed a bill that would provide free forensic medical examinations for victims of rape and sexual offenses (HB 1342). Under existing law, hospitals bill insurers for the cost of the exams, leaving the victims responsible for a co-pay or portion of a deductible payment. The bill would increase from $7,500 to $12,500 the amount of a claim that the director of the Crime Victims Compensation Commission may award a victim without making a recommendation to the commission. The bill would also encourage victims to seek compensation for other medical expenses related to the rape or sexual offense from the Victims Compensation Program Fund. The bill will now go to Gov. Perdue to be signed into law.
_The Innocence Inquiry Commission could soon have the authority to compel people who have pertinent information about a court case to testify. The bill, which has passed both bodies of the Legislature, would also allow the head of the commission to grant limited immunity to the witness from prosecution for previous false statements made under oath in prior proceedings (HB 937). The bill will now go to Gov. Perdue to be signed into law.
Crime/Safety
_Lawyers representing inmates on death row may be permitted to meet with their clients on the same day that the court rules on the inmate’s appeal under a bill that has passed both bodies of the Legislature and been signed into law (HB 1037). The proposal helps ensure that death row inmates hear the court’s decision from their own lawyers, rather than from another source.
_The General Assembly has ratified legislation that would add large constricting snakes and crocodiles to a list of dangerous reptiles that are already regulated under current law (SB 307). If enacted, the law would begin regulating the handling, ownership and sale of large constricting snakes and crocodiles. Owners of these hazardous reptiles would also be required to alert the police should one of these animals escape. Passage of this legislation comes two weeks after a 2-year-old girl was strangled and killed by a Burmese python that escaped from its home terrarium in Florida. The bill has now been sent to Gov. Perdue to be signed into law.
_An act to provide certain magistrates with the authority to provide for the appointment of counsel to indigent persons when authorized by the chief district court judge has passed both bodies of the Legislature and is headed to Gov. Perdue to be signed into law (SB 514). The legislation limits the designation of this authority to magistrates who are duly licensed attorneys, and prohibits any magistrate from being given the authority to appoint counsel for first degree murder offenses or capital cases. Under the legislation, magistrates are also prohibited from accepting a waiver of counsel.
Protecting Children
_The fine for first-time violators of the state's child labor law would be doubled from $250 to $500 in a bill that has passed both bodies of the Legislature (HB 23). The legislation would also create a $1,000 penalty for additional violations. Under the bill, the NC Department of Labor would be authorized to fine a company up to $14,000 for workplace safety violations that injure a worker younger than 18, which is double the amount of the current maximum fine. There are regulations in place that bar young workers from performing a host of hazardous jobs, and this legislation is meant to act as a stronger deterrence against employer violations. The bill will now be sent to Gov. Perdue to be signed into law.
_A bill that establishes courtroom procedures for remote testimony by children has been approved by both bodies of the Legislature (HB 192). The legislation would allow judges to let children testify remotely if the court determined that testifying in front of the defendant would cause severe emotional distress or would harm the child’s ability to tell the truth. The bill will now be sent to Gov. Perdue to be signed into law.
Miscellaneous
_Occupational licensing boards could adopt rules to postpone or waive licensing conditions for people in the armed forces under a bill that passed the House this week (HB 1411). Under the bill, an individual who is serving in the US armed forces and is eligible for a time extension to file a tax return would be granted an extension of time to pay any license fee charged by an occupational licensing board. The extension is for the same period that would apply if the license fee were a tax. The bill will now go to the Senate for further consideration.
_The Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services will be directed to adopt rules providing for the licensure and accreditation of residential treatment facilities for persons with traumatic brain injury (TBI) under a bill that has passed both bodies of the Legislature (HB 1309). The legislation will now be sent to Gov. Perdue to be signed into law.
_The NC Division of Motor Vehicles would be allowed to refuse to register a vehicle if the vehicle is not in compliance with inspections requirements under a bill that has passed both bodies of the Legislature (HB 882). The bill will now go to Gov. Perdue to be signed into law.
Notes
_Members of the House officially honored the life and memory of former NC Governor Robert Walter “Bob” Scott with a joint resolution on Monday (SJR 182). During his term as governor, Scott led the effort to fund kindergarten education programs. He was also at the forefront of the move to unite all of the state's public colleges and universities into one body, creating The University of North Carolina System, and was instrumental in the reorganization of state departments and agencies to better serve the citizens of North Carolina. Scott passed away on January 23, 2009 at the age of 79.
_Monday night, members of the House and Senate participated in a joint session to confirm Gov. Perdue’s three appointees to the State Board of Education (HJR 364). The House and Senate unanimously approved the reappointment of Wayne McDevitt and Patricia Willoughby. Reginald Kenan of Duplin County was also unanimously approved for his first term on the board.
Please remember that you can listen to each day’s session, committee meetings and press conferences on the General Assembly’s website at www.ncleg.net. Once on the site, select "Audio," and then make your selection – House Chamber, Senate Chamber, Appropriations Committee Room or Press Conference Room.
Prepared with the assistance of the Speaker’s Office of Communications