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Memorandum

|To: |Jennifer Roberts, Mecklenburg County Commissioners |

|From: |Bill Scoggin, Chris Hollis and Daniel Baum |

|Date: |May 28, 2010 |

|Re: |2010 Short Session: Week Three Report |

Overview

House Budget Review

The House began their budget process this week with Appropriations subcommittees meeting to review the proposed budgets from the Senate (S 897) and Governor Perdue (here). Each subcommittee has finalized their budgets and submitted proposed changes to the “big” chairs of the House Appropriations committee. These changes will be reviewed and compiled into the House’s proposed budget over the holiday weekend. A full House Appropriations committee meeting is scheduled for 10:00am on Tuesday June 1, which will begin the House’s final approval process for their version of the budget. The Appropriations committee will review and debate the bill, and will vote to approve it likely with some minor amendments. The bill will then move to the House Finance committee for another vote, and finally to the House floor for the bill’s final two votes held on separate days (as required by the state constitution). If the House maintains its schedule, the final vote to approve the budget will occur on Friday June 4th. It is certain the Senate will vote to “not concur” with the House’s changes, and a conference committee will be appointed to negotiate a compromise. As currently projected, the conference committee is scheduled to meet for approximately three weeks (June 7- June 25) and both chambers will approve the negotiated compromise, known as a conference report, by June 29.

With the House working on the budget next week, it is unlikely much other legislation will be addressed in that chamber. On the other hand, the Senate is likely to continue holding committee meetings and moving legislation.

The two chambers have also addressed the holiday weekend differently, as the constitution requires that neither chamber adjourn for more than three days (unless adjourning sine die). The Senate held a “skeleton session” this morning and the House will convene in a similar fashion Monday evening. (A skeleton session satisfies the constitutional requirement.)

Legislative Agenda Items

1) Expand the Board of Equalization and Review - This bill has been introduced three times in the Senate: S 1347 by Sen. Clodfelter; S 1367 by Sen. Dannelly; and S 1431 by Sen. Graham. Rep. Ruth Samuelson has sponsored this in the House as H 2041.

2) Allow Mecklenburg County to enter into leases of greater than 10 years for energy efficiency equipment - This week the Senate State and Local Government committee combined requests for this legislation by Chapel Hill, Carrboro, and Mecklenburg County into one bill, S 1114. The bill was approved by the committee, then passed the Senate floor Thursday and was sent to the House. Additionally, Rep. Becky Carney and Rep. Ruth Samuelson have introduced this agenda item as H 2040. Sen. Malcolm Graham previously introduced this as S 1335.

3) Restore Charlotte Mecklenburg Library’s eligibility for sales tax refunds - The Revenue Laws Technical Corrections bills, S 1177 and H 1810, include this language in Section 4(a). S 1177 passed Senate Finance and second reading on the Senate floor. It is scheduled for third reading on Tuesday June 1.

4) Allow Mecklenburg County to maintain current EMS protocols – We are working with members of the delegation to move this legislation forward as part of other eligible bills.

5) Allow Mecklenburg County to publish the names of delinquent taxpayers on its website - Sen. Clodfelter introduced this agenda item as S 1381, which is a public bill. In addition to this legislation, we have been directed to include this as an item for study during the interim.

Appropriations Agenda Items

As the House has not released its completed budget, we will update this section based on the House’s actions next week.

1) Restore state aid to counties for DSS. This funding is not restored in the Senate’s budget.

2) Restore funding cuts to Area Mental Health and reform the distribution formula for mental health funds. Community Service Funds are fully restored on page G-3 of the Senate Money Report.

3) Restore the per diem payment for state prisoners housed in county jails. This funding is not restored in the Senate’s budget.

4) Restore funding for the NC AIDS Drug Assistant Program. - This is included in the Senate Money Report on page G-6. It was also included in the Governor’s Recommended Budget on page 127.

Support Agenda Items

1) Support legislation that provides incentives to local governments that develop Regional Planning Organizations. - This is included in the Senate budget on page 104. There are also two stand-alone bills H 1701 or S 1333, which are listed below.

2) Unfreeze magistrate positions to allow for the hiring of a magistrate in North Mecklenburg.

3) Support the request of the Charlotte Mecklenburg Board of Education for local flexibility regarding staff spending and the school calendar. The Senate budget authorizes LEAs to implement furloughs to balance their budgets on page 140.

Bills of Interest

New

H 1659 - Rep. Paul Stam (R-Wake) - An act to amend the constitution to prohibit public condemnation of private property to convey an interest in that property for economic development - House Judiciary III.

H 1691 - Rep. Roger West (R-Cherokee) - To modify the use of 911 funds - House Public Utilities. This bill is scheduled to be heard in committee on Wednesday June 2. Please let us know of any issues ASAP.

H 1701 - Rep. Jennifer Weiss (D-Wake) - To establish the North Carolina Sustainable Communities Task Force - House Appropriations. This bill passed the House Environment committee this week and was referred to House Appropriations.

H 1717 - Rep. Ray Warren (D-Pitt) - An act to modernize the North Carolina Alcoholic Beverage Control System - House Alcohol Beverage Control.

H 1747 - Rep. Jim Crawford (D-Granville) - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - House Water Resources and Infrastructure.

H 1765 - Rep. Pryor Gibson (D-Anson) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - House Environment.

H 1866 - Rep. Becky Carney (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - House Local Government II.

H 1906 - Rep. Garland Peirce (D-Scotland) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - House Commerce.

H 1919 - Rep. Jim Gulley - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - House Local Government I.

H 2026 - Rep. Hugh Holliman (D-Davidson) - To Establish the North Carolina Mobility Fund within the North Carolina Highway Trust Fund - House Rules.

H 2055 - Rep. Bob England (D-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - House Insurance.

S 1112 - Sen. Don Vaughan (D-Guilford) - An act to modernize the North Carolina Alcoholic Beverage Control System - Senate Judiciary II.

S 1136 - Sen. Bob Rucho (D-Mecklenburg) - To strengthen the regulation of the towing of vehicles from private lots in Mecklenburg County - Senate Transportation.

S 1169 - Sen. Dan Clodfelter (D-Mecklenburg) - To authorize the Department of Environment and Natural Resources to use injunctive relief to ensure compliance with interbasin transfer laws and to provide that an applicant for an interbasin transfer certificate shall pay the costs associated with all required public hearings - Senate Environment.

S 1212 - Sen. Dan Clodfelter - To repeal the Local Government Other Post-Employment Benefits (OPEB) Fund and to allow each unit of local government to establish a separate OPEB trust fund that may then be invested by the Department of State Treasurer - Senate Finance. This bill is scheduled for a hearing in committee on June 1.

S 1292 - Sen. David Hoyle - To require a local government that provides public water service to revise its local water supply plan to address foreseeable future water needs when eighty percent of the water system’s available water has been allocated or when seasonal demand exceeds ninety percent - Senate Environment. This bill is scheduled for a hearing in committee on Tuesday June 1.

S 1295 - Sen. Bob Rucho - To authorize the Town of Matthews to participate in public-private projects outside the downtown area - Senate Finance.

S 1297 - Sen. Ed Jones (D-Halifax) - To direct the Department of Commerce to work with local governments to convene and organize Regional Economic Recovery Housing Alliances - Senate Commerce.

S 1325 - Sen. Margaret Dickson (D-Cumberland) - To modify the Inventory Property Tax Deferral - Senate Finance.

S 1333 - Sen. Floyd McKissick (D-Durham) - To establish the North Carolina Sustainable Communities Task Force - Senate Appropriations.

S 1348 - Sen. Don East (R-Surry) - To give counties temporary flexibility to use school construction funds generated from the NC Education Lottery for any education purpose - Senate Appropriations.

S 1382 - Sen. Dan Clodfelter - To make various changes to the way the Judicial Department may pay expenses - Senate Judiciary I.

S 1423 - Sen. Debbie Clary (R-Rutherford) - To provide that a local government that has been submitting premium payments to the State Health Plan is not liable for contributions to the State Retirement System - Senate Pensions and Retirement.

Old

H 382 - Rep. William Wainwright (D-Craven) - To authorize the Division of Emergency management to develop a voluntary medical registration program - Senate Health Care.

H 402 - Rep. Martha Alexander (D-Mecklenburg) - To eliminate the requirement of an elected official recommendation for notary public applicants - Senate State and Local Government.

H 524 - Rep. Paul Luebke (D-Durham) - To modify the annexation statutes - House Finance.

H 649 - Rep. Susan Fisher (D-Buncombe) - To permit disclosure of certain tax information of local governments to the State Treasurer - Senate Clerk’s Office.

H 666 - Rep. Martha Alexander (D-Mecklenburg) - To clarify that DWI Treatment Courts are a type of Drug Treatment Court - Senate Judiciary I.

H 699 - Rep. Marian McLawhorn (D-Pitt) - To authorize all local government to give annual notice to chronic violators of their public nuisance ordinances - Senate Clerk’s Office.

H 813 - Rep. Rick Glazier (D-Cumberland) - Uniform Apportionment of Tort Responsibility - Senate Judiciary I.

H 1134 - Rep. William Wainwright (D-Craven) - The Open Government Act - Senate Judiciary I.

H 1353 - Rep. Pricey Harrison (D-Guilford) - To prohibit local ordinances that restrict the use of clotheslines - Senate Commerce.

H 1476 - Rep. Rick Glazier (D-Cumberland) - To clarify when a claimant against an entity protected by governmental immunity has an adequate remedy at law - Senate Judiciary I.

S 117 - Sen. David Hoyle (D-Gaston) - To clarify that a local government may not impose a moratorium on development approvals for the purpose of developing and adopting a new or revised development ordinance - House Commerce.

S 269 - Sen. Dan Clodfelter (D-Mecklenburg) - To establish a pilot program of speed cameras in work and school zones - House Judiciary III.

S 354 - Sen. Ellie Kinnaird (D-Orange) - To direct DHHS to adopt a policy allowing a certain income disregard under the Medicaid program - House Appropriations.

S 386 - Sen. Dan Clodfelter (D-Mecklenburg) - To facilitate fiscal planning by requiring counties and local school administrative units to report anticipated expenditures of the Public School Building Capital Fund - House Appropriations.

S 388 - Sen. Dan Clodfelter (D-Mecklenburg) - To clarify the collection of offender fines and fees - House Finance. This bill was amended in committee. It now removes certain ARRA grants from the definition of public funds for which a credit for investing in renewable energy property is not available. The bill was approved by the House Finance committee, the House floor and was sent to the Senate for concurrence.

S 871 - Sen. Dan Clodfelter (D-Mecklenburg) - To clarify the calculation of the Medicaid swap hold harmless - House Appropriations.

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