Legislative Update

Rumblings at NLRB

2011-11-30T06:27:00.000-08:00

The Natioanl Labor Relations Board is scheduled to meet today and vote on rule changes that would shorten the time for union elections. The proposals are very determential to the business community and would create tremendous turmoil in the workplace. However, there is a threat from the Republican representative on the board, Brian Hayes, to resign - a move that would effectively shut down the board and prevent the vote on union organizing. Without the presences of Mr. Hayes the board would not have a quorum and could not conduct business. There appears to be a new proposal by board Chairman Mark Pearce that he described as a "more limited resolution." He said it would only apply to "the minority of elections which are held up by needless litigation" and other disputes. It's a sticky situation at the NLRB. There are still 2 open seats and looks like it will remain that way until after the elections.

Stay tuned and keep an eye on the actions of the NLRB.

NLRA Poster

2011-11-15T11:25:00.000-08:00

The National Labor Relations Board (NLRB) has postponed the implementation date for the new NLRA "Employee Rights Notice ". The initial effective date of November 14 has now been pushed back to January 31, 2012 to allow for " enhanced education and outreach to employers". There are also issues to be determined by the courts as to whether or not the Board has the authority to require the posting. The notice details the rights of employees under the National Labor Relations Act including the right to organize, bargain collectively, to discuss wages and other terms and conditions of employment, picket and strike.

This is another ploy in the Obama's administration efforts to tip the scales in favor of union organizers. There are other rule changes that are being considered that are more egregious than this one. Stay alert and we will try to keep you informed as to what is happening.

Federal Legislation

2011-09-07T12:40:00.000-07:00

I haven't posted since the end of the legislative session in Raleigh but there are some issues on the Federal level that deserve our attention. So will play a major role in the economic recovery. Foremost among them is H.R. 2587 that was introduced in response to the National Labor Relations Board’s (NLRB) complaint against The Boeing Company’s plant in South Carolina. A blatant attempt to mandate where a company can operate and expand its business. This bill prohibits the NLRB from ordering any employer to relocate, shut down, or transfer employment under any circumstance. Passage of this bill would reaffirm the rights of business to decide where to expand, invest and operate. If the NLRB is allowed to dictate how a company does business then our economic recovery will be derailed. It's imperative that we urge our legislators to support this bill. It is expected on House floor week of September 12 so move fast.

Another unfriendly rule coming out of the Department of Labor is the so called "gag rule". The U.S. Department of Labor recently proposed a change to the Labor Management Reporting and Disclosure Act (LMRDA), that would dramatically limit the “advice” exception in the LMRDA which means that most discussions about unions between company managers and their attorney or consultant will be subject to public reporting requirements. Due to the confidentiality between lawyers and their clients, this will make it significantly more difficult for employers to access counsel during union organizing campaigns. Additionally, failure to report or filing incomplete reports could result in civil and criminal penalties. This would definately limit a companies efforts to seek legal council and would put them at a disadvantage in union elections. The comment period is still open. Click here and submit your comments and concerns.

Session in Recess

2011-06-28T06:04:00.000-07:00

Both the House and Senate wrapped up the session on the 18th of June, enacting the state budget two weeks before the start of the fiscal year, the earliest in over 30 years. There were several pieces of legislation that favored business among them were regulatory and tax changes, along with legal and workers’ compensation reform. Hopefully, these changes will create the 14,000 job in the coming two years touted by the Republican legislature. The General Assembly will reconvene on July 13th to take up redistricting and review bills related to election law, appointments to various state boards and commissions, as well as conference reports not adopted upon adjournment. They will also review any bill vetoed by Governor Purdue. So it's not over yet.

In Cleveland County the big story will be who the Republicans will appoint to take the seat being vacated by Senator Clary. If you know of anyone that is being considered let us know. We appreciated the service and dedication Senator Clary gave to her constituents and wish her the best in her new endeavors.

Here is an over view of some of the legislation passed that might have an impact on your business.

Environmental Reform Signed by Governor

After receiving overwhelming approval from the House and Senate, environmental reform bill H45: Accelerate Cleanup of Industrial Properties was signed by Gov. Bev Perdue. The legislation permits “risk-based remediation,” which provides site-specific cleanup standards that would expedite the reuse of valuable industrial sites while ensuring protection of public health and the environment.

E-Verify Legislation Becomes Law

Legislation (H36) requiring all NC employers to use the federal E-Verify system to check the legal status of new hires was ratified by the General Assembly and signed into law by Gov. Perdue this week. Companies with 25 or more employees must begin using the system by July 1, 2013. Larger companies are required to comply earlier, with some starting in October 2012.

Let us know if you have any questions concerning a bill. We will be glad to research it and let you know where it is in the process.

Bills of Interest

2011-06-20T10:15:00.000-07:00

The General Assembly is trying to wrap up this session and are moving through a large number of bills.  Tort Reform H542  passed the Senate after the Senate Judiciary Committee made several significant changes. The committee eliminated the provision that would create a presumption that a pharmaceutical product is safe if it has been approved by the Food and Drug Administration.  The bill still includes provisions to ensure that juries receive accurate information on the actual medical bills paid in a case; establish appropriate standards for expert witnesses and set reasonable limits on attorneys’ fees in small cases.   The House concurred and the bill is now on the the Governor's desk.

Regulatory Reform

S781 passed the House and is expected to be taken up again by the Senate this week.  One of the bills primary proposals is the fact that environmental regulatory rules cannot impose a more restrictive standard, limitation, or requirement than federal counterparts. The bill also requires state agencies to submit an evaluation of the economic impact of a proposed rule and the costs it would create for local governments and other entities affected by the rule.  Hopefully, this will provide more predictability and certainty for businesses.  

Keep watching for the redistricting maps. The public hearing on these maps will be held June 23 at the NC Museum of Natural Science with satellite hookups to remote locations yet to be determined. Consideration of changes to the proposed maps will be made based on comments and feedback from the public hearing. The complete set of state legislative and congressional maps are slated for release July 1, with similar public hearing tentatively set for July 7 to receive input from voters

Redistricting

2011-06-17T12:11:00.000-07:00

As noted in my previous posting, redistricting will now gain center stage and there are some maps for you to preview. Curtousy of Sen. Clary, here is a link to the maps:http://www.ncleg.net/gis/randr07/redistricting.html

Take a look at the maps and if you have any comments contact your state Representative or Senator.

Veto Overridden

2011-06-17T11:53:00.000-07:00

Joint Legislative Committee on Redistricting will be meeting this morning. Hopefully, we will see some maps showing the proposals that have been floating around.

Veto Overridden

2011-06-15T05:54:00.000-07:00

The five democrats did not fold and the House overrode Governor Perdue's veto. The Senate is expect to do the same today. We now have a State budget. I now expect we will see some movement on redistricting. The
Joint Legislative Committee on Redistricting will be meeting this morning. Hopefully, we will see some maps showing the proposals that have been floating around. The General Assembly may adjourn as early as Thursday. Will let you know what they get done before they leave Raleigh.

Veto Proof

2011-06-14T06:12:00.000-07:00

Governor Purdue's veto was delivered to the House last night as they convened for the week. The bill was added to Wednesday's calendar for a vote to either overturn our sustain the veto. The Governor needs two of the five Democrats who voted in favor of the bill to rethink their votes and come back into the Democratic camp. I would hate to be those five Democrats. The pressure will be tremendous. You can read the Governor's remarks at this link - Governor’s Veto.

Off Shore drilling:

The House approved a Republican-backed bill that rewrites state energy policy to promote and approve of drilling for natural gas on land and off the coast. The Senate has already approved a similar bill. The Democrats opposed the bill based on the possible effects an oil spill would have on the Travel and Tourism Industry. Look like the bill will become law.

Redistricting:

Where are the maps showing proposed legislative districts that were promised by Easter. They haven't surfaced expect in the halls of the legislature. Wonder if redistricting had anything to do with the passage of the budget bill? Just wondering. However, I have heard that the committee is discussing the proposed changes with the Justice Department in an effort to head off any law suits. That would be a great idea - if it works. The Joint Committee on Redistricting meets tomorrow, June 15, at 9:00 am. Maybe we will finally see some maps.

Veto

2011-06-13T05:07:00.000-07:00

The Governor vetoed the budget bill yesterday so we will see if the House had enough of votes to override the veto. I have heard from and insider that they do have the votes. Stay tuned and see what happens today.

Update

2011-06-10T07:53:00.000-07:00

The legislature is really following up on their efforts to streamline government. Check out all the agencies, committees, etc that they are getting rid of in Senate bill 636(Government Reduction Act).

House Bill 709 (Protect and Put NC Back to Work) could get to the Governor's desk next week. Some highlights of this bill are it caps the disability benefits that are allowed for individuals who are classified as Temporarily Totally Disabled to 9 ½ years versus their lifetime. There are specific exceptions to the cap, such as: loss of both hands, eyes, paralysis, severe brain injury, or severe burns over 33 % of their body and those who can show that they lose their wage earning capacity. Additionally, this bill allows for the burial expenses for a worker who is killed on the job from $3,500 to $10,000. It extends the allowable benefit weeks to 500 for workers with partial incapacity, who are physically unable to perform their old job and end up taking another at lower pay. Lastly, this legislation sets a procedure for the employer to follow when they access the worker’s doctor or medical information.

No word yet as to what the Governor is going to do with the Budget Bill (H.200).

She is running out of time. She has 10 day to either sign or veto. After that it becomes law without her signature. The time frame is already causing some problems.State law says that a state agency must give an employee 30 days notice if they are to be terminated. In anticipation of budget cuts (based on both the House and Senate versions of the budget) some agencies may have already notified employees they are losing their jobs. What happens if proposed cuts are not as severe as now appear? How do they operate with dramatically reduced budgets and, at the same time, wait until July 1 to give notice? How will this affect the remaining 11 months of their budgets?

Had a meeting with the Regional Roads Committee last week and heard a report from NCDOT on road project in the region. Hwy 74 By-Pass is on go and DOT is purchasing right-of-way now for phase one and two. It is anticipated that construction on phase one and two will begin in 2012. However, the DOT representative warned us to watch Congress and see if they reauthorize the Federal road program and how much money they commit. That will have a direct bearing on all major road projects in North Carolina

Employers to E-Verify

2011-06-07T12:16:00.000-07:00

Just ran across this big of legislation in the State house. "An Act To Require Employers In This State, And Entities Who Contract With A Government Agency In This State, And Their Subcontractors To Use The Federal E-Verify Program To Verify The Work Authorization Of Newly Hired Employees" Employers with 25 or more employees who do business with any government agency would have to verify the eligibility of their new hires through the E-Verify program run by Homeland Security. This also applies to any subcontractor as well.

What impact will this have on your business?

Senate Budget Passed

2011-06-06T08:26:00.000-07:00

The North Carolina Senate passed an updated $19.7 billion budget that would spend $300 million more than originally proposed on public schools while continuing to let the temporary sales and income taxes expire on time. The Senate version restores funding for teachers assistants for grades 1-3 and includes $62 million to hire over 1,100 teachers in lower grades. However, there is a catch. The updated plan includes a provision requiring local school districts to cut an additional $124 million at their discretion. The increase in education spending from the original Senate proposal is covered by cuts in several areas such as state building repairs, state pension fund contribution and forgoing the quarter-percentage point personal income tax cut. Additionally, the new budget establishes a tax exemption for the first $50,000 of net income for small businesses. Republicans estimate that 17,000 jobs will be created within the next year as a result of the small business tax break and expiration of temporary taxes. It is now up to the Governor and she has expressed her criticism of the budget. Probably headed for a veto. Keep tuned. I have hear that the House leadership feels they have the necessary votes to override a veto.

Unemployment Benefits Extended

Gov. Perdue signed Executive Order 93 on Friday (6/3) restoring federal unemployment insurance benefits for NC citizens. Perdue refused to sign proposed legislation that tied the extension of unemployment benefits to a stop-gap spending plan that would serve as back up if a state budget was not finalized by July 1. The Senate included a provision in their budget that would restore the benefits. The governor was able to use her authority as the state’s chief executive to extend the benefits since they are not state funded.

With budget negotiations moving quickly, legislative leaders hope to end this year’s long session as early as June 17. Two special sessions would be scheduled before the May 2012 session to address district maps and proposed constitutional amendments. The first special session would start as soon as July 11 to redraw congressional and legislative districts based on population changes in the 2010 U.S. Census. The second special session has not been scheduled but will be held to deal with the proposed amendments to the N.C. Constitution that were submitted during this legislative session

Tort Reform:

H542: Tort Reform for Businesses and Citizens has cleared the House and is now on its way to the Senate.

Workers’ Compensation Passes in House

The House passed HB709: Protect and Put NC Back to Work. One of the primary objectives of this legislation was to bring North Carolina’s indemnity costs in line with surrounding states by limiting the duration of temporary total disability (TTD) benefits. The bill is now headed to the Senate.

Watch the Budget Debate.

2011-05-31T07:44:00.000-07:00

The Senate Appropriations Committee approved a $19.4 billion budget proposal Wednesday (5/25) after reviewing and rejecting several Democratic amendments. The bill (H.200) will come before the Senate this afternoon (5/31). The Senate’s budget spends $129 million more than the House budget but $473 million less than the Gov. Perdue’s proposed budget. Republicans refuse to extend a temporary penny sales tax and an income tax surcharge scheduled to expire in June. The Senate tax package reduces the rate for all individual income tax brackets by a quarter-percentage point, dropping the rates to 5.75, 6.75 and 7.5 percent. Additionally, the measure would exempt the first $50,000 of net business income of small and start-up companies whose gross receipts do not exceed $825,000. The Senate budget also saves the state an estimated $18 million by repealing the tax deduction for severance wages, the tax credit for recycling oyster shells, the sales tax holiday on energy-efficient appliances, among others.

The Senate budgeted $10.7 billion for education, over $62 million more than the House proposed. The bill seeks to begin reducing class size to the targeted ratio of 1 teacher for 15 students in early grades by hiring over 1,100 teachers. The plan would eliminate funding for teachers’ assistants in all grades except kindergarten, which accounts for 13,000 positions. The Senate budget also includes $1 million to research and develop a performance-based pay model for teachers and $115 million for district school construction.

After the Senate approves its budget, House and Senate members will iron out their differences and present a final budget to Gov. Perdue in June. Perdue has said that she will veto the budget if it “undermines our schools and fails to protect the quality of our education system.” I think you will see a veto. Not sure if the House will have the votes necessary to override. We’ll see.

Senate proposal raised concerns over their plan to eliminate Medicaid coverage for an array of optional services including physical, occupational, speech, and respiratory therapy, and would limit dental care to emergency cases, unless the patient is pregnant. These services would be cut mid-2012 according to the budget The Senate also proposes to dissolve the NC Partnership for Children, the central office for Smart Start, and moves supervision of Smart Start to the state Department of Health and Human Services

Workers’ Comp Moves Past Committee

The House Select Committee on Tort Reform voted to pass HB709: Protect and Put NC Back to Work on Thursday (5/26). After extensive negotiations between parties on both sides of the issue, the committee approved a consensus bill that would be the first significant workers’ comp reform in the General Assembly since 1994. One of the primary objectives of this legislation was to bring North Carolina’s indemnity costs in line with surrounding states by limiting the duration of temporary total disability (TTD) benefits. The proposed legislation would place a 500 week cap on temporary total disability benefits, increase the cap on temporary partial disability benefits from 300 weeks to 500 weeks, improve the structure, operation and accountability of the Industrial Commission, improve communication between the employer and the doctor to better facilitate employee’s return to work and ensures that both parties have equal access to medical information.

Check This Out

2011-05-20T13:00:00.000-07:00

Do you want to contribute all or part of your income tax return from the state to the state's coffers? We'll, if you do, House Bill 877 will let you check off on your income tax return that you would be delighted to give the state either all or part of your tax refund. You can designate it to go to the following departments or to the general fund:

The Department of Cultural Resources.
The Department of Health and Human Services.
The Department of Public Instruction.
The Department of Public Safety.
The University of North Carolina

Wow, isn't that nice of the state to make it easy for us to give our money back. Seems like I heard a pledge from this Legislature that they were going to put more money back into the pockets of the tax payer. I suppose some tax payer, some where in the state, will be magnanimous and give their tax refund back to the state - not me!

Speaking of taxes, the Senate is still working on their version of the budget. The Education community is holding its breath. It is rumored that the Senate will take money form public education and move it into the UNC system.

The "Tort Reform Bill" (H542) was scheduled to be on the House calendar for second reading but was postponed until 5/31. There is still time to make your opinions know about the bill.

Tort Reform

2011-05-18T06:42:00.000-07:00

The tort reform bill (H.542) is on the House calendar today for second and third readings. Check it out it could be a good move.

State Budget Getting Closer

2011-05-17T06:26:00.000-07:00

The House passed budget is now in the Senate. As of today it looks like the Senate version will spend less than the house version and public education will take it on the chin, but the University system will get more. Doesn't make sense to me. Most people figure the Senate will vote on their budget in June, then a compromise bill with the House will be arrived at very quickly. Look for a veto from the governor. Big questions is whether or not the legislature has enough votes in the House to override a veto. We'll see.

Both the House Committee on Insurance and the House Committee on Appropriations voted this week to approve H115: North Carolina Health Benefit Exchange required under the federal health care overhaul law. This bill will create an on-line market for individuals and small businesses to purchase qualified health care plans. So say the bill give the insurance companies to much control so some changes have been proposed that will take away some of the discretion of the insurance companies. It will probably be heard by the full House this week. You might want to check it out.

As you know the Governor veto the bill to extend unemployment insurance to more than 37,000 individuals receiving extended unemployment benefits; individuals that have been unemployed for a shorter amount of time are still receiving payments. It sounds like there is a stalemate between the Governor and the Legislature regarding this piece of legislation. Don't know what's going to happen.

Legislators concluded final public hearings regarding the redistricting of boundaries for both congressional and General Assembly seats that will remain for the next ten years. It is hopeful that the redistricting plans will be ready to present to legislators later this month, and that the final maps can be approved and sent to attorneys at the U.S. Justice Department for approval under civil rights laws by mid-June.

On the Federal level there is some proposed regulation coming out of the Obama administration that will have a very detrimental impact on the housing marketing. Federal banking regulators last month proposed a 20 percent down payment requirement on QRMs.(Qualified Residential Mortgage) The 20 percent down payment requirement leaves millions of qualified potential homeowners with two grim alternatives: pay higher rates upfront for a mortgage that falls outside the regulators' proposed QRM standard or delay home ownership for a decade or more to save for an onerous down payment. This will put homes out of reach for many Americans and further cripple the fragile housing recovery. Just goes to show you that federal regulators who write the rules associated with legislation can have a significant impact on our lives. It pays to watch what's happening with the regulators as well as the legislators.

2011-05-06T13:49:00.000-07:00

This past Tuesday, several members of the Chamber spent about 6 hours in Raleigh meeting with our local delegation and several members of the administration. Here are some highlights of the meeting:

The budget was all the talk. The Speaker of the House had called the house into session at 9:00 am that morning and told the House members that the session would not end until all the amendments to the House budget bill (H200) had been heard. I understand the session went well into the evening.
Secretary of Cultural Affairs, Linda Carlisle, was concerned about her budget that had been cut 23%. However, in a late move the House reduced the cuts to 15%. Cleveland County gets money for the arts through the Department of Cultural Affairs and the Scruggs Center and Don Gibson Theatre have also been recipients of grants form this department. Secretary Carlisle is in charge of all state historical parks and with this being the 150 Anniversary of the Civil War, it would be ashamed if we had to close those parks.
NCDOT had some good news for us. Right of Way acquisition for sections one and two have begun with construction of phase 1 to get underway in 2012 and construction of phase 2 to begin in 2013. That sounds promising.
Secretary of Commerce, Keith Crisco, was not able to meet with us very long as we were invited to the House floor to meet the Speaker of the House, Tom Tillis. However, Secretary Crisco did go with us and told the Speaker that "Cleveland County had the most aggressive economic development team in the State of North Carolina." Pretty high accolades coming from the state's chief economic developer.
President Pro Temp of the Senate, Phil Berger, was very gracious with his time and listened to our concerns as they related to several pieces of legislation. In particular, we expressed our reservations about the proposal to funnel the next two payments from the tobacco settlement into the General Fund. The Chamber's Board of Directors is on record in opposition to this move and we once again explained our reasoning to Senator Berger. He was very nice but informed us that the monies would be going to the General Fund for the next two years. Oh well, we tried.

It was a good day and Senator Clary and Representative Moore's staffs were very helpful in setting up all the appointments and making sure we didn't get lost. Many thanks to them for their help. We would also like to express our thanks to Senator Clary, Representative Moore, Representative Hastings and Representative Hager for taking time out of a very busy day to be with us. Next year I hope more members will go.