Table of Contents
State Fiscal Year Begins with No Budget
HB 2259– DWQ/Bridge Culvert Standards
HB 2541 - An Act to Delay the Effective Date of the Solid Waste Disposal Tax
SB 1879/HB 2499 – Drought/Water Management Recommendations
SB 1937/HB 2501 – Facilitate Use of Reclaimed Water
SB 1967/HB 2138 – Disapprove Coastal Stormwater Rule
HB 2504 – Limit Impervious Pavement in Parking Lots
HB 2447/SB 1872 – Extend Water Allocation Study
HB 2313/SB 1698 – Express Permitting Review Program
HB 2316/SB 1791 – DOT/Contracts for Professional Engineering
HB 2363/SB 1894 – Congestion Relief/Intermodal Transport Fund
SB 1795/HB2353 – Irrigation Contractors Licensure/Fees
State Issues
State Fiscal Year Begins with No Budget
The official start of the state fiscal year began on Tuesday before the two chambers of the NC legislature could agree on a budget. This is nothing new for NC state government so, once again, legislators have filed an extension that will authorize state agencies to continue operating under current budget authority – at least until July 15th. Although no one expects it to take that long to resolve the differences between the House, Senate and Governor’s proposals, if past experience is any indication, it’s best to be prepared to spend a few more weeks working things out – just in case.
The two chambers can't decide how much to spend on University of North Carolina system enrollment this fall or whether to require some across-the-board system cuts. The two chambers also differ on construction spending. "The problems are not that many," House Appropriations Chair Mickey Michaux said, "but they are big problems." He said he hoped the disputes could be resolved by week's end.
Apparently, previous disagreements over the size of teacher pay raises have been resolved although not made public. Negotiators have come to agreements on a package that provides $50 million in tax breaks. However, the Governor’s office cautions that revenue projections may be lower than previously expected so the final package may come closer to around $34 million.
Although funding for the North Carolina Turnpike Authority Toll Projects will be included in the final budget proposal that goes to Governor Easley, it is uncertain how much will be made available and which projects will be included. Both the House and Senate budget recommendations include funding in the first year and second years for the Western Wake project and funding in the second year for the Monroe Bypass. The Senate proposal, however, includes additional funding in the second year and third year for the Mid-Currituck Bridge project and more funding in the third year for the Garden Parkway project. However, none of this may matter if SB 1697 – Toll Enforcement Authority Changes doesn’t make it through the House and Senate before adjournment. This legislation is required by the bonding agencies in order for the Turnpike Authority to move forward with any of these projects.
Environmental Legislation
HB 2259 – DWQ/Bridge Culvert Standards
Sponsor: Gillespie
An Act to direct the Division of Water Quality of DENR to authorize use of three-sided, open-bottom, or bottomless culverts on private property, based on sound engineering practice, as recommended by the Joint Legislative Transportation Oversight Committee.
Reported Favorably by House Committee on Transportation
Re-refered to House Committee on Environment and Natural Resources
(Sponsored by ACEC)
Position: Support
HB 2541 - An Act to Delay the Effective Date of the Solid Waste Disposal Tax
Sponsors: Representatives Gibson, Allen and Harrison
An Act to delay the effective date of the Solid Waste Disposal Tax imposed by Article 5g of Subchapter I of Chapter 105 of the General Statutes, as Enacted by S.L. 2007-550 and Amended by S.L. 2007-543, from 1 July 2008 to 1 January 2009, as Recommended by the Environmental Review Commission.
Passed 2nd Reading in the House
Position: None
SB 1879/HB 2499 – Drought/Water Management Recommendations
Sponsors: Senator Clodfelter/Representatives Gibson and Allen
An Act to implement water management and drought preparedness and response measures, as recommended by the Environmental Review Commission.
Status: This bill has not been heard in either House or Senate committees to which it has been referred but has been assigned to a stakeholders working group. It is uncertain if this bill, in its present form, will be enacted before adjournment.
Position: None
SB 1937/HB 2501 – Facilitate Use of Reclaimed Water
Sponsors: Senator Albertson/Representative Gibson
An Act to provide for and promote the use of reclaimed water, as recommended by the Environmental Review Commission.
Status: This bill has not been heard in either the House or Senate committees to which it has been assigned but is being discussed in the Drought Management working group. Another draft bill entitled “Revise Water Use Act to Promote Reuse” – An Act to amend the water use act of 1967 to promote the beneficial use of reclaimed water and to make reclaimed water an integral part of state water resource management – has been drafted but not yet introduced.
Position: Support
SB 1967/HB 2138 – Disapprove Coastal Stormwater Rule
Sponsors: Senator Boseman/Representative Gibson
An Act to disapprove a rule to manage stormwater in coastal counties.
Status: This bill has not been heard in either House or Senate committees to which it has been referred but has also been assigned to a stakeholders working group. This bill could be scheduled to be heard in committee as early as tomorrow, Thursday, July 3 rd.
The NC Homebuilders Association and the NC Association of Realtors are opposed to this bill stating that it would impede development in these counties and have requested a delay in the implementation of these rules.
Position: None
HB 2504 – Limit Impervious Pavement in Parking Lots
Sponsors: Representatives Gibson and Allen
An Act to limit the amount of impervious surface of vehicular surface areas, as recommended by the Environmental Review Commission, for development that will disturb more than one acre of land, no more than eighty percent of the surface area of the vehicular surface area may be impervious surface. The law would become effective in April, 2009.
Status: This bill has been assigned to the House Committee on Environment and Natural Resources but has not been heard. These provisions are being negotiated between legislators and the Lowe’s Corporation and the Retail Merchants Association who support this bill as being less restrictive than current law which will take effect on October 1,2008 unless an amicable solution is reached. The pervious pavement requirement provision was actually included in last year's budget and HB 2504 serves as that placeholder. Additionally, stakeholders are working to determine if alternatives to pervious pavement (bioretention, etc.) will be accepted allowing for some flexibility in meeting the requirements.
Position: None, although we do support a delay in the effective date.
HB 2447/SB 1872 – Extend Water Allocation Study
Sponsors: Representative Allen and Senator Clodfelter
Signed into law by the Governor
Position: Support
Transportation Legislation
HB 2313/SB 1698 – Express Permitting Review Program
Sponsors: Representative Nelson Cole, Senator Clark Jenkins
An Act to provide an Express Permitting Review Program for connections to the State Highway System, as recommended by the Joint Legislative Transportation Oversight Committee.
Passed 3rd Reading in the House, Referred to Senate Committee on Finance
(Supported by Retail Merchants Association and ACEC)
Position: Support
HB 2316/SB 1791 – DOT/Contracts for Professional Engineering
Sponsors: Cole/Jenkins
An act to authorize the Department of Transportation to contract for Professional Engineering Services for all transportation infrastructure, as recommended by the Joint Legislative Transportation Oversight Committee
Reported Favorably by House Committee on Transportation
Re-referred to House Committee on Appropriations
Position: support
Provides clarifying authority for what is already standard practice.
HB 2363/SB 1894 – Congestion Relief/Intermodal Transport Fund
Sponsors: Representative Deborah Ross/Senator Richard Stevens
An Act to establish a Congestion Relief and Intermodal Transportation 21st Century Fund, to provide for allocation of those funds to 1) local governments and transportation authorities for public transportation purposes, 2) short-line railroads for assistance in maintaining and expanding freight service statewide, 3) railroads for intermodal facilities, multimodal facilities, and inland ports, 4) make capital improvements on rail lines to allow improved freight service to the ports and military installations, 5) expand intercity passenger rail service, and to extend common levels of local transit funding authorization to 3 urban regions, and allow other local governments similar options for local transit funding, and to extend the State Ports Tax Credit, all as recommended by the 21 st Century Transportation Committee
Referred to House Transportation Committee and withdrawn
Referred to Senate Committee on Appropriations
Position: support
PENC has signed onto a petition, along with other organizations including ACEC, NCGo! And AGC, asking the House Transportation Committee to hear this bill.
OTHER
SB 1795/HB 2353 – Irrigation Contractors Licensure/Fees
Sponsors: Senator Dalton/Representative Gibson
An Act to authorize the Licensure of Irrigation Contractors.
Passed 3 rd Reading in the House
Referred to Senate Finance
Position: None
This bill establishes the NC Irrigation Contractors Licensing Board, establishes a licensure requirement for irrigation contractors (providing exemptions for professional engineers and landscape architects) and establishes disciplinary rules for non-compliance.
SB 1942 – Small Business Tax Protection Act
Sponsor: Senator Hoyle
An Act to protect small businesses from certain sales and use tax assessments, to require the Department of Revenue to document certain verbal advice given to taxpayers, to allow taxpayers to rely on documented verbal advice from the Department of Revenue, and to give the Secretary of Revenue more discretion in resolving sales and use tax disputes concerning small businesses.
Passed 3 rd Reading in the Senate
Referred to House Committee on Finance
Position: Support
SB 2156 – Infrastructure Assessments Act
Sponsor: Senator Hartsell
An Act to provide Cabarrus, Cumberland and Rowan Counties a mechanism to finance long-term infrastructure needs with assessments.
Status: This bill was discussed in Senate Finance today but was not voted on as it could have statewide implications beyond these three counties for financing local infrastructure needs.
Position: None