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June 10, 2019 Dear Desiree, Welcome to This Week at the Capital, your detailed analysis of the legislation that matters most to your business. This newsletter tracks the bills that our advocacy team plans to work on in accordance with our 2019 Jobs Agenda, describing where they are in the legislative process and whether we support or oppose them on your behalf. Sincerely, Gary J. Salamido Chief Operating Officer and Acting President NC Chamber North Carolina must develop and maintain a first-rate, leading talent pipeline by aligning education and workforce development systems that are effective, agile, accountable, flexible, and consistently produce a competitive, diverse, and world-class workforce. SUPPORT Economics and Financial Literacy Act (SB 134, HB 433): This legislation would establish a semester-long economics and financial literacy course for high school, covering topics such as managing credit and borrowing money. This legislation was included as part of the House and Senate budget bills. Why we're supporting: Personal financial knowledge and responsibility is important for a high-quality talent pipeline. Community College Short-Term Workforce Training Funds (HB 487): There is a funding disparity at the community colleges between workforce training programs and curriculum (college preparation) programs. This legislation would close that gap with recurring funds. This legislation was included as part of the House and Senate budget bills. Why we're supporting: Increasing the number of qualified workers remains a top priority for the NC Chamber. Therefore, we support the policy of treating curriculum and workforce programs equally. Excellent Public Schools Act of 2019 (SB 438): This bill makes several changes to the Read to Achieve program, including support for individual reading plans in K-3 classrooms, establishment of a Digital Children's Reading Initiative, revised training standards to promote early childhood literacy, and more. The bill passed on the first reading in the House and was referred to the House Committee on Rules, Calendar and Operations. Why we're supporting: Third-grade reading proficiency is a key metric for determining future success in school. It is critical that North Carolina improves its workforce pipeline, and that must start with improvements to literacy. We applaud efforts to continue refining and improving the state's Read to Achieve program. myFutureNC/Postsecondary Attainment Goal (HB 664): This bill establishes a statewide postsecondary attainment goal, as identified by the myFutureNC Commission. The bill will also require the myFutureNC Commission to present a status updates on the goal annually and will establish a task force made up of elected officials from the House and Senate, as well as appointees by the Governor, to evaluate existing education programs and their effectiveness to determine how to best meet the goal. The bill was removed from the Committee on Rules and Operations of the Senate on May 29 and re-referred to the Senate Education/Higher Education Committee on the same day. Why we're supporting: The MyFutureNC Commission set an important postsecondary attainment goal for the state - by 2030, 2 million North Carolinians between 25 and 44 will have a high-quality postsecondary degree or credential. It is the right step to begin bringing together elected leaders around this common goal. Read more about why we support this goal here. Study Participation of Operators in NC Pre-K (HB 886): This legislation would set an NC Pre-K enrollment goal of 75 percent of eligible children in the state. In addition, the bill would initiate an in-depth study of the state's pre-K system based on recommendations made by the National Institute of Early Education Research. The bill passed on the first reading in the Senate and was referred to the Senate Rules and Operations Committee. Why we're supporting: Expanding high-quality pre-K is an important component of the Chamber's priority to raise third-grade reading proficiency. The Chamber supports recommendations in the National Institute for Early Education Research report - read more here. OPPOSE Excellent Educational Standards (HB 711): This bill would eliminate the state's rigorous math standards in low-performing school districts and substitute them with an older set of academic standards. This bill passed its first reading on April 15 and was referred to the Committe on Rules, Calendar and Operations of the House on the same day. Why we're opposing: High academic standards are a top priority for the NC Chamber. Business leaders worked for more than five years, in a collaborative effort with educators from K-12 and higher education, parents and policymakers, to ensure that the most recent revisions of math and English standards were successful, and the North Carolina State Board of Education followed a rigorous process to revise those standards. House Bill 711 would take North Carolina backward on education standards and would harm the process for reviewing and revising standards in the future. The NC Chamber opposes any effort to allow schools or districts to opt out of standards or utilize a different set of standards. Instructional Material Selection (HB 315): The legislation revises the state's textbook adoption policies. The current policy has not been updated in years, and it does not take into account the new generation of digital textbooks and instructional materials. It is likely time for the state to update its curriculum and textbook policies. However, the bill also adds potentially cumbersome processes to districts, particularly smaller districts with limited resources. The content of the bill was included in the House budget. The bill was withdrawn from the Committee on Rules and Operations of the Senate and re-referred to the Senate Committee on Education/Higher Education on May 24. Why we're opposing: The NC Chamber's Workforce Committee agrees that revising the textbook adoption procedures is a step in the right direction for the state's education policy. However, any changes must ensure that districts are given opportunities to adopt instructional materials that are aligned with our rigorous standards, and this bill seems to fall short of that goal. The NC Chamber would prefer to convene a larger group of stakeholders to discuss the most effective way to change textbook adoption procedures and will work with bill sponsors and others to recommend more discussion before this bill moves forward. Read more MONITOR School Grading Bills (HB 145, SB 117, HB 249, HB 266, SB 176, HB 313, HB 354, HB 362, SB 412): Annually, each public school in North Carolina is graded for performance on an A through F scale. Collectively, these bills would make changes to the calcuations of those letter grades. As we work to improve the talent pipeline and ensure businesses have the skilled talent they need to continue growing, school accountability is a critical factor in improving education and turning around low-performing schools. Only House Bills 266, 354 and 362 met the requirements of crossover. Why we're monitoring: There are multiple bills concerning the school grading system. The Chamber would support a solution that brings permanency and consistency to this process and we'll continue to monitor these and other bills as we collaborate with stakeholders to identify a solution that works for all involved. Funds/Eliminate NC Pre-K Waitlist Statewide (SB 175): This bill would appropriate funds to increase the number of eligible children enrolled in the NC Pre-K program, as part of a broader effort within the legislature to expand Pre-K. The bill failed to meet the requirements of crossover. Why we're monitoring: A top priority on the NC Chamber's 2019 Jobs Agenda is expanding enrollment in the NC Pre-K program to 75% of eligible children. The Chamber supports recommendations in a recent report by the National Institute for Early Education Research that would help accomplish that goal - read more here. We're monitoring this bill because funding for Pre-K will likely be worked out in the budget, but the NC Chamber does not get involved in the budget process. Reduce Testing (HB 377): This bill would eliminate End of Grade (EOG) tests, which are currently a significant factor used in tracking student growth and proficiency. The bill would replace EOG tests with a series of mandated benchmark assessments that would cumulatively generate a summative score at the end of the year. HB 377 passed the House on April 3 and was sent to the Senate, where it was referred to the Committee on Rules and Operations of the Senate on April 4. Why we're monitoring: The NC Chamber supports efforts to ensure North Carolina's testing programs are high quality and aligned with academic standards, as well as efforts to bring more transparency to the test selection and development process. Policymakers need to have a broader discussion about the state's existing testing program to find a solution that balances the amount of time spent testing with the benefits gained. While HB 377 is a potential start, several aspects of the legislation are concerning. Specifically, there is not enough conclusive research on the effectiveness of using state-created benchmarking tests to replace EOG tests. HS Credit/Dual Enrollment Workforce Training (SB 612): This bill would direct the State Board of Education to revise its policy on dual credit allowances and award high school course credit for workforce continuing education pathway college courses. The bill failed to meet the requirements of crossover. In May, the State Board of Education reviewed a proposed policy to accomplish the goals of this legislation. The board will vote on the policy's adoption at its June meeting. Why we're monitoring: Encouraging high-quality career and technical education (CTE) is critical for workforce development, and it's important to remove barriers that prevent students from getting proper credit for their CTE courses. Various education agencies had previously been working together to resolve this issue, so we would like to better understand the status of those discussions before taking further action on this legislation. Study School Accountability Measures (SB 475): This bill would direct the State Board of Education to study the reporting methods used for school accountability purposes on the North Carolina annual school report cards. The bill failed to meet the requirements of crossover. Why we're monitoring: As evidenced by the wide range of bills concerning school grades and accountability, this is an issue that is very much in need of further study and participation by stakeholders. We appreciate the effort on the Senate side to bring resolution to this issue. We are encouraging the legislature to appropriately broaden the scope of this study in order to achieve a solution that works for the business community. Testing Reduction Act of 2019 (SB 621): This legislation is the NC Senate's effort to reduce standardized testing in the state. It is much more narrowly constructed when compared to testing legislation previously passed by the House. The Senate bill would eliminate NC Final Exams, which have been a point of contention for several years. In addition, the Department of Public Instruction and local school districts are directed to more closely examine various tests and make recommendations for changing or eliminating tests. This bill was sent to the House on April 30. On May 1, it passed the first reading and was referred to the House Rules, Calendar, and Operations Committee. Why we're monitorting: A high-quality testing program is critical for accountability and raising student achievement. Senate Bill 621 could allow the state to begin a more comprehensive examination of testing. This is an important issue to get right. While North Carolina is appearing near the top of an increasing number of noteworthy business climate rankings, we cannot be complacent as other states are constantly working to be more competitive. North Carolina must continually strive to position its business climate more competitively in order to attract new investment and create and retain more good jobs for North Carolinians. *NOTE: This section now includes bills previously listed under the Entrepreneurship and Innovation pillar. SUPPORT Confirm James Gillen and Ken Goodman to the Industrial Commission (HJR 253, HJR 254): These resolutions would confirm James Gillen and Ken Goodman as full commissioners on the NC Industrial Commission. After both resolutions passed on the second and third readings in the Senate, Representative Ken Goodman and Mr. James Gillen were confirmed to serve on the NC Industrial Commission on April 18. Both resolutions were ordered enrolled on the same day. Why we're supporting: The NC Chamber, along with other interested business associations, has completed a comprehensive analysis of both James Gillen and Ken Goodman's backgrounds and determined they would be fair commissioners. Protecting the balance of the Industrial Commission is a top priority for the NC Chamber, as parties with vested interests on all sides of the workers' compensation system and leaders from both political parties have worked together for years to foster a fair and balanced system. These appointments would maintain that balance on the Industrial Commission, as it adminsters North Carolina's workers' compensation laws. Confirm Louis Bledsoe as Special Superior Court Judge (HJR 255): This resolution would confirm Louis Bledsoe as a Special Superior Court Judge on the Business Court. After receiving a favorable report out of the Senate Select Committee on Nominations, Judge Bledsoe was unanimously confirmed and the resolution was ordered enrolled on March 14. Why we're supporting: This is a re-nomination of Judge Bledsoe to the Business Court. Judge Bledsoe is widely respected as a fair and balanced jurist and the NC Chamber fully supports this appointment. The North Carolina Business Court is a specialized forum of the superior court division, which hears cases involving complex and significant issues of corporate and commercial law. Read more. Exempt EV Stations/Public Utilities Regs. (HB 329): This bill would exempt electric vehicle charging stations from regulations regarding public utilities. The bill passed the House on April 3 and was sent to the Senate, where it was referred to the Committee on Rules and Operations on April 4. Why we're supporting: Currently, charging station managers buy electricity from utilities by the kilowatt-hour, but sell it in time increments, regardless of how quickly a vehicle battery gains its charge. This legislation would provide more predictability in costs and profits for station managers, avoid duplicative electricity charges and support the gig economy. Read more Tax Reduction Act of 2019 (SB 622, HB 676): This bill increases the standard deduction, simplifies the franchise tax base and lowers the franchise tax rate. It also requires marketplace facilitators to collect and remit sales and use taxes, among other tax law changes. House Bill 676 passed as part of the House budget. SB 622 passed its first reading in the House and was referred to the Committee on Rules, Calendar, and Operations of the House on May 22. Why we're supporting: Two of the NC Chamber’s top tax priorities are included in this the bill - the simplification and reduction of the franchise tax and the extension of the exemption on jet fuel. This bill takes great steps in reducing the franchise tax by moving North Carolina from $1.50 per $1,000 to $1.00 per $1,000 over the next two years. However, the NC Chamber does not have a position on the market-based sourcing or marketplace provider language in Senate Bill 622. Read more OPPOSE Economic Security Act of 2019 (HB 46): This legislation would impose several mandates on businesses, affecting the minimum wage, leave policies, pay, and more. It would also repeal the public employee collective bargaining restriction. This bill was filed on February 12 and referred to several committees, including Commerce, Judiciary, Regulatory Reform, Finance, Pensions and Retirement, and Rules. Why we're opposing: Businesses must have the freedom to establish a competitive compensation and benefits package for current and prospective employees to attract the best talent for their organization. Additionally, North Carolina is a right-to-work state and removing the restriction on public employee collective bargaining would open the door for broader collective bargaining, giving a foothold to labor unions in North Carolina. This legislation would also allow an employee to place a lien on both corporate and personal property of a business owner or property of a third party, which would unnecessarily expand liability for employers. Save the Internet Act (SB 308): This bill will establish net neutrality and give the North Carolina Department of Justice the authority to implement rules enforcing the public disclosure of network management practices. This bill was filed on March 19 and was referred to the Senate Rules and Operations Committee on March 20. Why we're opposing: Onerous regulations on business are detrimental to growth. The NC Chamber opposes this bill because it would institute overly burdensome regulations on North Carolina's internet service providers, limit a free market on the internet and make providers vulnerable to unlawful trade practice fines, as determined by the NC DOJ. Save NC Call Center Jobs Act (HB 419): This bill would require a company that wishes to move their call center to notify the Commissioner of Labor 120 days prior to moving that facility. The commissioner will be required to compile and publish a list of such companies. Companies included on the Commissioner's list will not be eligible to receive any direct or indirect state grants or state guaranteed loan or tax benefits for five years. The bill failed to meet the requirements of crossover. Why we're opposing: This bill would unfairly punish private companies for making business decisions. The publication of such a list without proper context unfairly characterizes private organizations and carries punitive consequences for making difficult business calculations. The unintended consequences of this legislation could cause a drawdown in call center investments, as well as the eventual call center market leaving North Carolina. Require Paid Work Breaks (HB 551): This bill makes changes to the Wage and Hour Act, requiring employers to provide a 20-minute, paid break to any employee working a six-hour shift or longer. This bill was amended and changed into an LRC study bill. The NC Chamber has never scored a study bill. As such, this bill will be removed from next week’s This Week at the Capital. The bill currently sits in the Senate Rules and Operations Committee. Why we're opposing: Individual employers are best positioned to determine the policies that are most appropriate for their business and its employees. The NC Chamber has always opposed government mandates. As such, the NC Chamber does not support House Bill 551. Amend Rules of Evid./Binding Arbitration (HB 611): This bill amends the rules of evidence regarding insurance admissibility and allows for binding arbitration in certain civil action. The bill failed to meet the requirements of crossover. Why we're opposing: The NC Chamber and the aligned business community secured various tort reforms in 2011 that helped improve North Carolina's legal climate. This bill repeals actual damages, a cornerstone of the 2011 reforms that ensure damages reflect the actual out-of-pocket cost. Actual damages give juries and judges all the information needed to make an accurate assessment when rendering an awards verdict, which is important to fair and predictable legal proceedings. The NC Chamber and more than 20 other organizations sent a letter to legislators on April 25 opposing this bill - read more here. Wage Theft Act (SB 503): This bill amends North Carolina's labor laws to end wage theft and allows an employee to place a lien on a third party’s property while resolving a wage dispute. This bill was filed on April 2. It passed the first reading and was referred to Senate Rules Committee on April 3. Why we're opposing: By allowing an employee to place a lien on the property they serviced while disputing wages with their employer, this bill penalizes innocent third parties for merely seeking a service. This allowance is overly punitive and unfair to innocent third parties. Repeal CON Laws (SB 539): This bill repeals certificate of need laws. The bill failed to meet the requirements of crossover. Why we're opposing: The NC Chamber has a long opposed fully repealing North Carolina's CON laws. Instead, the NC Chamber believes North Carolina's CON laws should be reformed in order to reduce cost to the healthcare system and business. MONITOR Small Business Healthcare Act (SB 86, HB 464): These bills would make various changes to North Carolina's association health plan laws. House Bill 464 failed to meet the requirements of crossover. Why we're monitoring: The NC Chamber supports association health plans and would support legislation allowing them in our state. Previous attempts at expanding association health plans taught us lessons for the future, and we believe that safeguards must exist in any legislation to ensure that associations can provide the coverage promised. HB 464 is closer than SB 86 to a solution the NC Chamber would fully support, however, there are still some issues that need to be addressed. We will continue working with the bill sponsors and other stakeholders to ensure those safeguards are in place. Greater Transparency in Health Care Billing (SB 386): This bill would require health care providers to notify patients that they may receive care from an out-of-network provider prior to treatment and it would establish pricing benchmarks comparable to a patient’s in-network rate, if seen by an out-of-network provider in an in-network facility. The bill failed to meet the requirements of crossover. Why we’re monitoring: Health care value is defined as better outcomes and manageable, predictable cost. Typically, a patient entering an in-network facility expects to see an in-network provider at an in-network rate. However, this isn’t always the case, sometimes leaving patients with high, unexpected medical bills. The NC Chamber is reviewing this legislation to ensure the policy is sound and thoroughly addresses surprise billing. Create an Additional 5 Tier System (SB 597): This bill designates a five-tier economic distress system that may be used in addition to the current development tier system which ranks counties' development needs. The bill failed to meet the requirements of crossover. Why we’re monitoring: At this point, it is unclear how this new economic distress system would be used. The NC Chamber will continue to gather information about the need for a new system and other impacts it may have. North Carolina must identify ways to continue investing in the development and maintenance of sound physical infrastructure, including transportation (roads, railroads and ports), water and sewer, energy and broadband/advanced communications to meet the demands of population and economic growth. SUPPORT Risk-Based Remediation/Animal Waste Mgmt. (HB 306): This bill would add animal waste management systems to the list of sites where risk-based cleanup is permitted. The bill failed to meet the requirements of crossover. Why we're supporting: Risk-based remediation establishes sensible cleanup standards for sites where contamination may occur, which may allow those sites to be re-developed and placed into productive use. The NC Chamber supports expanding this commonsense regulatory process to animal waste management systems, especially because it is already in use at several other sites. Merger of Certain Sewerage Districts (SB 434): This bill requires the dissolution of certain metropolitan sewerage districts and transfers their assets and liabilities to an adjacent district in the same county. The committee substitute received a favorable report and was adopted in the Senate Committee on Agriculture, Environment, and Natural Resources on May 23. It was then referred to Senate Committee on Finance. Why we’re supporting: As outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, integrated water planning and inclusive management is key to developing long-term regional solutions to meet the state's water needs. By outlining the requirements to merge certain sewerage districts, this bill takes important steps forward towards integrated planning. Promotion of Energy Storage Investments (SB 510): This bill promotes the installation and utilization of energy storage equipment. The bill failed to meet the requirements of crossover. Why we’re supporting: This bill provides incentives for the continued development of energy storage investments. Additional improvements in energy storage technology should lead to lower energy costs. Regulatory Reform Act of 2019 (SB 553): This bill makes several changes to existing regulations, including some concerning landfill life-of-site franchise requirements, real estate licensing and more. The Senate Committee on Agriculture, Environment, and Natural Resources adoped a new committee substitute on May 23, and it was referred to Senate Committee on Rules and Operations, where it will be heard on May 28. Why we’re supporting: This bill provides operational certainty for solid waste facilities that have invested substantial funds in developing and operating a solid waste disposal site. The bill also intends to more carefully regulate timeshare salespersons and provides for a study to examine expanding the express permitting programs within DEQ. Rural Job Retention Act (SB 505): This bill expands the job maintenance and capital development fund to include heritage manufacturing projects. This bill was signed into law on May 16. Why we’re supporting: This bill aligns with the findings in the NC Chamber’s rural study, Spreading Economic Opportunity Across North Carolina, which encourage public-private cooperative efforts to capitalize on existing opportunities and create new ways to spur economic development in all corners of the state. Prevent Highway to General Fund Transfers (HB 845/SB 607): This bill would allow for a refund of sales and use tax back to NCDOT for taxes paid on goods and services related to construction and maintenance activities. HB 845 was filed on April 16, passed first reading and was referred to House Finance with a serial referral to Appropriations and the Committee on Rules, Calendar and Operations of the House on April 18. SB 607 was given a serial referral to the Senate Committee on Rules and Operations on April 18. Why we’re supporting: Transportation infrastructure is the lifeblood of commerce. The NC Chamber fought to end the practice of transferring money from the Highway Fund and Highway Trust Fund to the General Fund and it is important that those protections remain in place, as it ensures there is a stable source of revenue to address our growing infrastructure needs. Metropolitan Sewerage Districts Expansion and Governance (HB 758): This bill expands the membership of certain metropolitan sewerage districts. The bill passed the second reading in the House on May 28 and passed the third reading on May 29. The bill was sent to the Senate on May 30 and passed the first reading on May 31, where it was referred to the Senate Committee on Rules and Operations. Why we’re supporting: As outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, integrated water planning and inclusive management is key to developing long-term regional solutions to meet the state's water needs. The bill includes reasonable requirements for the ability of metropolitan sewerage districts to expand and serve growing customer areas, which would move North Carolina toward better integrated planning. Saving Reserves/Use Funds for Disaster Relief (HB 846/SB 608): This bill would allocate $301 million from the saving reserves account to the Highway Fund for maintenance and repair costs associated with disaster relief. NCDOT will be required to pay the funds back by June 30, 2021. The House bill was filed on April 16 and referred to the Committee on Appropriations with a serial referral to the Committee on Rules, Calendar and Operations of the House on April 18. Senate Bill 608 was filed on April 3, passed first reading on April 4 and was referred to the Senate Committee on Rules and Operations on the same day. Why we’re supporting: Hurricanes Florence and Matthew, along with Winter Storm Diego, decimated critical infrastructure in our state. While the state plans for these types of natural disasters, the scope of the damage can be hard to predict, and the Savings Reserve was put into place for just this reason. Using these funds to ease the burden on NCDOT and aid in speedier recovery is critical for the citizens of North Carolina. Highway Storm Recovery Act (SB 605): This bill would loan NCDOT $90 million out of the general fund to aid in disaster relief and leverage federal dollars. NCDOT will be required to repay the loan. A PCS added an additional $65 million to this loan from the Hurricane Relief Fund, to be paid back upon Federal Reimbursement. The final amount loaned to the NCDOT will be $155 million. The bill passed the House on May 15 and was signed into law on May 16. Why we’re supporting: Hurricanes Florence and Matthew, along with Winter Storm Diego, decimated critical infrastructure in our state. While the state plans for these types of natural disasters, the scope of the damage can be hard to predict, and the Savings Reserve was put into place for just this reason. Using these funds to ease the burden on NCDOT and aid in speedier recovery is critical for the citizens of North Carolina. OPPOSE Efficient and Affordable Energy Rates (SB 338/HB 513): This bill would require the Utilities Commission to establish tiered electricity rates for residential, commercial, public, and industrial customers. It also creates an energy efficiency bank to be used for customer loans to be applied to the costs of certain energy efficiency or renewable energy projects. The bill failed to meet the requirements of crossover. Why we're opposing: Artifically setting energy rates will not make rates more affordable. Instead, doing so will have the opposite effect. North Carolina needs an energy marketplace free of government overreach to ensure consumers have access to affordable, competitive rates and efficient energy delivery. Unfortunately, this bill will only make affordable, reliable energy more difficult to find in the marketplace. FIBER NC Act (HB 431): This bill would allow counties and municipalities to build and lease facilities and equipment to increase broadband services. This bill was re-referred to the House Committee on State and Local Government on April 2. Why we're opposing: The FIBER NC Act provides additional taxing authority to counties and municipalities to pay for construction, maintenance and operation of their broadband facilities. Granting permitting and regulatory agencies the ability to directly compete with private sector entities would lead to both barriers to enter the marketplace and delays in permits. On top of that, giving the government the ability to tax private companies to pay for the government's facilities is essentially asking private companies to fund their direct competitor. Additionally, that new direct competitor would also control entry into market, location setting, regulations, and permits. This is not a level playing field for North Carolina businesses. Additional Measures for Emerging Contaminants (HB 568/SB 653): This bill enhances requirements for dischargers of pollutants to the state's air and water, provides increased funding for the Department of Environmental Quality (DEQ) and makes other statutory changes related to addressing possible contamination of drinking water supplies. The bill failed to meet the requirements of crossover. Why we’re opposing: This bill confuses a clear distinction in the law between a discharge and an emission. It would also repeal the Hardison Amendment which placed a restriction on new environmental rules that have federal counterparts or that go beyond federal requirements. It also adds new burdensome requirements to permitted wastewater discharge facilities, but exempts municipal facilities from the same requirements. Natural Gas Transportation Cost Recovery (SB 671, HB 731): These bills prohibit the North Carolina Utilities Commission (NCUC) from authorizing cost recovery for transporting natural gas unless the natural gas local distribution company proves that the transportation cost is the lowest cost available option to meet the needs of its retail customers. These bills failed to meet the requirements of crossover. Why we’re opposing: These bills would restrict the flexibility of the NCUC to approve alternative gas transportation options. The lowest cost option may not always be the safest or most reliable option, and we would prefer for the NCUC to maintain its current flexibility when considering gas transportation options. Req Prop. Disposal/Certain Coal Ash Impdmts. (HB 572): This bill requires certain large coal ash impoundments to be managed as high-risk impoundments and excavated. The bill failed to meet the requirements of crossover. Why we’re opposing: The language in this bill preempts the consideration of scientific data. It would require digging up the coal ash and putting it in a new landfill if the site has 20 million tons of coal ash or more, regardless of the risk posed by the current impoundment. Any decision on coal ash disposal should be made considering risks and costs, therefore, the NC Chamber opposes this bill. MONITOR DEQ/Policy Changes (HB 245): This legislation would make various changes to environmental laws, as recommended by the Department of Environmental Quality. The bill failed to meet the requirements of crossover. Why we're monitoring: If North Carolina is to bolster economic development, businesses need a streamlined contested case process that supports efficient project delivery. This bill would extend the time associated with the contested case process for both minor and major coastal permits, further delaying the completion of important economic development projects along the coast. The NC Chamber will monitor this bill and continue working to establish a contested case process that promotes efficiency and predictability for businesses, so that project delivery can be simplified and accelerated. DEQ/Fund and Fee Changes (HB 246): This legislation would revise various fees and funds of the Department of Environmental Quality. This bill was filed on February 28 and referred to the House Rules, Calendar, and Operations Committee. Why we're monitoring: Creating a modernized, streamlined regulatory climate in North Carolina is important to the NC Chamber, as is protecting a heatlhy natural environment. However, several provisions in this bill appear to establish additional regulatory hurdles for businesses to overcome. For example, section 2 of the bill proposes changes to the solid water permit fees that could raise the fees up to three times the current level, section 3(b) would increase the percentage of the fund used for inactive site investigation by DEQ and section 3(c) would increase the penalties under the solid waste program, which may be inconsistent with federal authority. We will continue to monitor this bill, as our team works to address overly burdensome regulations that hinder business growth. Study Outside Water Rates (HB 522): This bill directs the Legislative Research Commission to study rates charged by municipalities for water and wastewater service to customers, as well as those charged to customers that reside outside of the municipal boundaries, to evaluate fee disparities. The bill was reported favorably from committee on April 25 and passed its second and third readings on the same day. It was sent to the Senate on April 26 where it passed its first reading. The bill was referred to the Committee on Rules and Operations of the Senate on April 29. Why we’re monitoring: The NC Chamber Foundation's Framework for North Carolina Water Policy calls for better data analytics to improve water planning and inform crucial funding decisions. Studying the water rates charged by local governments to customers inside and outside their service territories will provide greater data that can then be leveraged to implement solutions. The NC Chamber will monitor this bill to see if it stays consistent within the Framework. Utilities/Amend REPS Requirements (HB 543): This bill amends the renewable energy portfolio standard. The bill failed to meet the requirements of crossover. Why we’re monitoring: This bill would change the solar requirements for utilities. If adopted, the utilities would have to install fewer renewables than the original policy required. The NC Chamber prefers consistency with the provisions established in NC's Renewable Energy and Energy Efficiency Portfolio in 2007. Ban PFAS in Fire Retardant Foam (HB 560/SB 655): This bill bans the manufacture, sale or use of certain fire-retardant foam containing poly- and perfluoroalkyl substances (PFAS). The bill failed to meet the requirements of crossover. Why we’re monitoring: While PFAS chemicals have been widely used in food packaging and to make carpet and fabric stain protection and waterproofing substances, this bill focuses on its use in fire-retardant foams. Limiting the use of PFAS in a specific product or on a state-by-state basis not only could set the stage for market uncertainty, it also would create a regulatory burden on businesses. Polluter Pays (HB 566/SB 651): This bill makes persons causing or contributing to contamination responsible for the costs of cleanup. It also makes them responsible for the provision of alternative water supplies to persons affected by such contamination and prohibits an electric public utility from recovering from customers the costs related to the management of coal combustion and unlawful discharges from coal ash ponds. The bill failed to meet the requirements of crossover. Why we’re monitoring: This bill dictates that utilities cannot recover from customers money spent to address new coal ash disposal requirements, but does not provide any other guidance of how else to recover costs. Coal Ash/Prohibition of Cost Recovery/Proper Disposal (HB 567): This bill prohibits an electric public utility from recovering from ratepayers any costs related to the management of coal combustion residuals and unlawful discharges from coal combustion residuals surface impoundments. It also requires the excavation of all coal ash ponds and disposal of the coal ash in lined landfills. The bill failed to meet the requirements of crossover. Why we’re monitoring: This bill dictates that utilities cannot recover from customers money spent to address new coal ash disposal requirements, but does not provide any other guidance of how else to recover costs. Water/Wastewater Public Enterprise Reform (HB 570/SB 536): These bills address issues facing aging water infrastructure in North Carolina and propose a surcharge on all water users that would go into a fund to help distressed systems. The Department of Environmental Quality (DEQ) would manage the funds and award them as grants. House Bill 570 was included as part of the House budget bill. Why we’re monitoring: The NC Chamber Foundation recently released the Framework for North Carolina Water Policy, which outlines five broad solutions that would help North Carolina build water system, operational, financial, and strategic resilience. The provisions in this bill appear to be in alignment with some of the Framework's findings and could benefit smaller communities, while also incentivizing cooperation and the consolidation of water systems. Storm Securitization/Alt. Rates (SB 559, HB 624): These companion bills permit financing for certain storm recovery costs and authorize the Utilities Commission to fix rates for electric public utilities. Senate Bill 559 was withdrawn from its House committee on May 16 and re-referred to the House Committee on Finance. Why we’re monitoring: This bill proposes financing options for storm damage and would create a recovery fund to address utility damages from several types of natural disasters. The NC Chamber supports storm securitization, as it would allow for the formation of bonds to pay for storm recovery, creating greater predictability for customers, utilities and the state regulator. The recent amendment to this bill provides greater clarity on the proposed alternative ratemaking model, alleviating some concerns over this provision, as the NC Utilities Commission will have clear authority over rate considerations. North Carolinians need reliable, stable energy. Thank you to our state’s utilities and manufacturers for your valued feedback. We will continue to work with all of our members to fully appreciate the opportunities this bill presents, as well as the various concerns expressed about its provisions. Tell us what you think about this bill here. Recycling and Restoration/Renewable Energy (SB 568): This bill requires responsible decommissioning of utility-scale solar facilities and wind energy facilities upon cessation of activities and recycling of all end-of-life solar energy equipment. NEW ACTION: This bill was referred to the Senate Committee on Agriculture/Environment/Natural Resources on April 16 and will be heard in committee for discussion only on June 12. Why we’re monitoring: The NC Chamber will monitor this bill to be sure that the conditions are reasonable and attainable for businesses decommissioning their renewable energy facilities. Hydraulic Fracturing/Statewide Ban. (HB 632): This bill would ban the practice of hydraulic fracturing throughout the state. The bill failed to meet the requirements of crossover. Why we’re monitoring: The NC Chamber advocates for a forward-thinking, “all-of-the-above” energy strategy that supports grid modernization and improves access to renewables, solar, wind, geothermal, biomass, natural gas, oil, coal and nuclear power. Hydraulic fracturing is a proven technology being used all over the country to extract oil and gas, yet this bill would restrict North Carolina's ability to use that technology. Wastewater Grant Amendments (HB 824): This bill amends the factors used to evaluate and award loans or grants from the Wastewater Reserve or Drinking Water Reserve. This legislation was included as part of the House budget bill. Why we’re monitoring: Some parts of this bill would help address concepts that were outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, while others are inconsistent with those recommendations and may have an adverse impact on funding distribution.
June 10, 2019 Dear Desiree, Welcome to This Week at the Capital, your detailed analysis of the legislation that matters most to your business. This newsletter tracks the bills that our advocacy team plans to work on in accordance with our 2019 Jobs Agenda, describing where they are in the legislative process and whether we support or oppose them on your behalf.
Sincerely,
Gary J. Salamido
Chief Operating Officer and Acting President
NC Chamber North Carolina must develop and maintain a first-rate, leading talent pipeline by aligning education and workforce development systems that are effective, agile, accountable, flexible, and consistently produce a competitive, diverse, and world-class workforce.
SUPPORT
Economics and Financial Literacy Act (SB 134, HB 433): This legislation would establish a semester-long economics and financial literacy course for high school, covering topics such as managing credit and borrowing money. This legislation was included as part of the House and Senate budget bills.
Why we're supporting: Personal financial knowledge and responsibility is important for a high-quality talent pipeline.
Community College Short-Term Workforce Training Funds (HB 487): There is a funding disparity at the community colleges between workforce training programs and curriculum (college preparation) programs. This legislation would close that gap with recurring funds. This legislation was included as part of the House and Senate budget bills.
Why we're supporting: Increasing the number of qualified workers remains a top priority for the NC Chamber. Therefore, we support the policy of treating curriculum and workforce programs equally.
Excellent Public Schools Act of 2019 (SB 438): This bill makes several changes to the Read to Achieve program, including support for individual reading plans in K-3 classrooms, establishment of a Digital Children's Reading Initiative, revised training standards to promote early childhood literacy, and more. The bill passed on the first reading in the House and was referred to the House Committee on Rules, Calendar and Operations.
Why we're supporting: Third-grade reading proficiency is a key metric for determining future success in school. It is critical that North Carolina improves its workforce pipeline, and that must start with improvements to literacy. We applaud efforts to continue refining and improving the state's Read to Achieve program.
myFutureNC/Postsecondary Attainment Goal (HB 664): This bill establishes a statewide postsecondary attainment goal, as identified by the myFutureNC Commission. The bill will also require the myFutureNC Commission to present a status updates on the goal annually and will establish a task force made up of elected officials from the House and Senate, as well as appointees by the Governor, to evaluate existing education programs and their effectiveness to determine how to best meet the goal. The bill was removed from the Committee on Rules and Operations of the Senate on May 29 and re-referred to the Senate Education/Higher Education Committee on the same day.
Why we're supporting: The MyFutureNC Commission set an important postsecondary attainment goal for the state - by 2030, 2 million North Carolinians between 25 and 44 will have a high-quality postsecondary degree or credential. It is the right step to begin bringing together elected leaders around this common goal. Read more about why we support this goal here.
Study Participation of Operators in NC Pre-K (HB 886): This legislation would set an NC Pre-K enrollment goal of 75 percent of eligible children in the state. In addition, the bill would initiate an in-depth study of the state's pre-K system based on recommendations made by the National Institute of Early Education Research. The bill passed on the first reading in the Senate and was referred to the Senate Rules and Operations Committee.
Why we're supporting: Expanding high-quality pre-K is an important component of the Chamber's priority to raise third-grade reading proficiency. The Chamber supports recommendations in the National Institute for Early Education Research report - read more here.
OPPOSE
Excellent Educational Standards (HB 711): This bill would eliminate the state's rigorous math standards in low-performing school districts and substitute them with an older set of academic standards. This bill passed its first reading on April 15 and was referred to the Committe on Rules, Calendar and Operations of the House on the same day.
Why we're opposing: High academic standards are a top priority for the NC Chamber. Business leaders worked for more than five years, in a collaborative effort with educators from K-12 and higher education, parents and policymakers, to ensure that the most recent revisions of math and English standards were successful, and the North Carolina State Board of Education followed a rigorous process to revise those standards. House Bill 711 would take North Carolina backward on education standards and would harm the process for reviewing and revising standards in the future. The NC Chamber opposes any effort to allow schools or districts to opt out of standards or utilize a different set of standards.
Instructional Material Selection (HB 315): The legislation revises the state's textbook adoption policies. The current policy has not been updated in years, and it does not take into account the new generation of digital textbooks and instructional materials. It is likely time for the state to update its curriculum and textbook policies. However, the bill also adds potentially cumbersome processes to districts, particularly smaller districts with limited resources. The content of the bill was included in the House budget. The bill was withdrawn from the Committee on Rules and Operations of the Senate and re-referred to the Senate Committee on Education/Higher Education on May 24.
Why we're opposing: The NC Chamber's Workforce Committee agrees that revising the textbook adoption procedures is a step in the right direction for the state's education policy. However, any changes must ensure that districts are given opportunities to adopt instructional materials that are aligned with our rigorous standards, and this bill seems to fall short of that goal. The NC Chamber would prefer to convene a larger group of stakeholders to discuss the most effective way to change textbook adoption procedures and will work with bill sponsors and others to recommend more discussion before this bill moves forward. Read more
MONITOR
School Grading Bills (HB 145, SB 117, HB 249, HB 266, SB 176, HB 313, HB 354, HB 362, SB 412): Annually, each public school in North Carolina is graded for performance on an A through F scale. Collectively, these bills would make changes to the calcuations of those letter grades. As we work to improve the talent pipeline and ensure businesses have the skilled talent they need to continue growing, school accountability is a critical factor in improving education and turning around low-performing schools. Only House Bills 266, 354 and 362 met the requirements of crossover.
Why we're monitoring: There are multiple bills concerning the school grading system. The Chamber would support a solution that brings permanency and consistency to this process and we'll continue to monitor these and other bills as we collaborate with stakeholders to identify a solution that works for all involved.
Funds/Eliminate NC Pre-K Waitlist Statewide (SB 175): This bill would appropriate funds to increase the number of eligible children enrolled in the NC Pre-K program, as part of a broader effort within the legislature to expand Pre-K. The bill failed to meet the requirements of crossover.
Why we're monitoring: A top priority on the NC Chamber's 2019 Jobs Agenda is expanding enrollment in the NC Pre-K program to 75% of eligible children. The Chamber supports recommendations in a recent report by the National Institute for Early Education Research that would help accomplish that goal - read more here. We're monitoring this bill because funding for Pre-K will likely be worked out in the budget, but the NC Chamber does not get involved in the budget process.
Reduce Testing (HB 377): This bill would eliminate End of Grade (EOG) tests, which are currently a significant factor used in tracking student growth and proficiency. The bill would replace EOG tests with a series of mandated benchmark assessments that would cumulatively generate a summative score at the end of the year. HB 377 passed the House on April 3 and was sent to the Senate, where it was referred to the Committee on Rules and Operations of the Senate on April 4.
Why we're monitoring: The NC Chamber supports efforts to ensure North Carolina's testing programs are high quality and aligned with academic standards, as well as efforts to bring more transparency to the test selection and development process. Policymakers need to have a broader discussion about the state's existing testing program to find a solution that balances the amount of time spent testing with the benefits gained. While HB 377 is a potential start, several aspects of the legislation are concerning. Specifically, there is not enough conclusive research on the effectiveness of using state-created benchmarking tests to replace EOG tests.
HS Credit/Dual Enrollment Workforce Training (SB 612): This bill would direct the State Board of Education to revise its policy on dual credit allowances and award high school course credit for workforce continuing education pathway college courses. The bill failed to meet the requirements of crossover. In May, the State Board of Education reviewed a proposed policy to accomplish the goals of this legislation. The board will vote on the policy's adoption at its June meeting.
Why we're monitoring: Encouraging high-quality career and technical education (CTE) is critical for workforce development, and it's important to remove barriers that prevent students from getting proper credit for their CTE courses. Various education agencies had previously been working together to resolve this issue, so we would like to better understand the status of those discussions before taking further action on this legislation.
Study School Accountability Measures (SB 475): This bill would direct the State Board of Education to study the reporting methods used for school accountability purposes on the North Carolina annual school report cards. The bill failed to meet the requirements of crossover.
Why we're monitoring: As evidenced by the wide range of bills concerning school grades and accountability, this is an issue that is very much in need of further study and participation by stakeholders. We appreciate the effort on the Senate side to bring resolution to this issue. We are encouraging the legislature to appropriately broaden the scope of this study in order to achieve a solution that works for the business community.
Testing Reduction Act of 2019 (SB 621): This legislation is the NC Senate's effort to reduce standardized testing in the state. It is much more narrowly constructed when compared to testing legislation previously passed by the House. The Senate bill would eliminate NC Final Exams, which have been a point of contention for several years. In addition, the Department of Public Instruction and local school districts are directed to more closely examine various tests and make recommendations for changing or eliminating tests. This bill was sent to the House on April 30. On May 1, it passed the first reading and was referred to the House Rules, Calendar, and Operations Committee.
Why we're monitorting: A high-quality testing program is critical for accountability and raising student achievement. Senate Bill 621 could allow the state to begin a more comprehensive examination of testing. This is an important issue to get right.
While North Carolina is appearing near the top of an increasing number of noteworthy business climate rankings, we cannot be complacent as other states are constantly working to be more competitive. North Carolina must continually strive to position its business climate more competitively in order to attract new investment and create and retain more good jobs for North Carolinians. *NOTE: This section now includes bills previously listed under the Entrepreneurship and Innovation pillar.
Confirm James Gillen and Ken Goodman to the Industrial Commission (HJR 253, HJR 254): These resolutions would confirm James Gillen and Ken Goodman as full commissioners on the NC Industrial Commission. After both resolutions passed on the second and third readings in the Senate, Representative Ken Goodman and Mr. James Gillen were confirmed to serve on the NC Industrial Commission on April 18. Both resolutions were ordered enrolled on the same day.
Why we're supporting: The NC Chamber, along with other interested business associations, has completed a comprehensive analysis of both James Gillen and Ken Goodman's backgrounds and determined they would be fair commissioners. Protecting the balance of the Industrial Commission is a top priority for the NC Chamber, as parties with vested interests on all sides of the workers' compensation system and leaders from both political parties have worked together for years to foster a fair and balanced system. These appointments would maintain that balance on the Industrial Commission, as it adminsters North Carolina's workers' compensation laws.
Confirm Louis Bledsoe as Special Superior Court Judge (HJR 255): This resolution would confirm Louis Bledsoe as a Special Superior Court Judge on the Business Court. After receiving a favorable report out of the Senate Select Committee on Nominations, Judge Bledsoe was unanimously confirmed and the resolution was ordered enrolled on March 14.
Why we're supporting: This is a re-nomination of Judge Bledsoe to the Business Court. Judge Bledsoe is widely respected as a fair and balanced jurist and the NC Chamber fully supports this appointment. The North Carolina Business Court is a specialized forum of the superior court division, which hears cases involving complex and significant issues of corporate and commercial law. Read more.
Exempt EV Stations/Public Utilities Regs. (HB 329): This bill would exempt electric vehicle charging stations from regulations regarding public utilities. The bill passed the House on April 3 and was sent to the Senate, where it was referred to the Committee on Rules and Operations on April 4.
Why we're supporting: Currently, charging station managers buy electricity from utilities by the kilowatt-hour, but sell it in time increments, regardless of how quickly a vehicle battery gains its charge. This legislation would provide more predictability in costs and profits for station managers, avoid duplicative electricity charges and support the gig economy. Read more
Tax Reduction Act of 2019 (SB 622, HB 676): This bill increases the standard deduction, simplifies the franchise tax base and lowers the franchise tax rate. It also requires marketplace facilitators to collect and remit sales and use taxes, among other tax law changes. House Bill 676 passed as part of the House budget. SB 622 passed its first reading in the House and was referred to the Committee on Rules, Calendar, and Operations of the House on May 22.
Why we're supporting: Two of the NC Chamber’s top tax priorities are included in this the bill - the simplification and reduction of the franchise tax and the extension of the exemption on jet fuel. This bill takes great steps in reducing the franchise tax by moving North Carolina from $1.50 per $1,000 to $1.00 per $1,000 over the next two years. However, the NC Chamber does not have a position on the market-based sourcing or marketplace provider language in Senate Bill 622. Read more
Economic Security Act of 2019 (HB 46): This legislation would impose several mandates on businesses, affecting the minimum wage, leave policies, pay, and more. It would also repeal the public employee collective bargaining restriction. This bill was filed on February 12 and referred to several committees, including Commerce, Judiciary, Regulatory Reform, Finance, Pensions and Retirement, and Rules.
Why we're opposing: Businesses must have the freedom to establish a competitive compensation and benefits package for current and prospective employees to attract the best talent for their organization. Additionally, North Carolina is a right-to-work state and removing the restriction on public employee collective bargaining would open the door for broader collective bargaining, giving a foothold to labor unions in North Carolina. This legislation would also allow an employee to place a lien on both corporate and personal property of a business owner or property of a third party, which would unnecessarily expand liability for employers.
Save the Internet Act (SB 308): This bill will establish net neutrality and give the North Carolina Department of Justice the authority to implement rules enforcing the public disclosure of network management practices. This bill was filed on March 19 and was referred to the Senate Rules and Operations Committee on March 20.
Why we're opposing: Onerous regulations on business are detrimental to growth. The NC Chamber opposes this bill because it would institute overly burdensome regulations on North Carolina's internet service providers, limit a free market on the internet and make providers vulnerable to unlawful trade practice fines, as determined by the NC DOJ.
Save NC Call Center Jobs Act (HB 419): This bill would require a company that wishes to move their call center to notify the Commissioner of Labor 120 days prior to moving that facility. The commissioner will be required to compile and publish a list of such companies. Companies included on the Commissioner's list will not be eligible to receive any direct or indirect state grants or state guaranteed loan or tax benefits for five years. The bill failed to meet the requirements of crossover.
Why we're opposing: This bill would unfairly punish private companies for making business decisions. The publication of such a list without proper context unfairly characterizes private organizations and carries punitive consequences for making difficult business calculations. The unintended consequences of this legislation could cause a drawdown in call center investments, as well as the eventual call center market leaving North Carolina.
Require Paid Work Breaks (HB 551): This bill makes changes to the Wage and Hour Act, requiring employers to provide a 20-minute, paid break to any employee working a six-hour shift or longer. This bill was amended and changed into an LRC study bill. The NC Chamber has never scored a study bill. As such, this bill will be removed from next week’s This Week at the Capital. The bill currently sits in the Senate Rules and Operations Committee.
Why we're opposing: Individual employers are best positioned to determine the policies that are most appropriate for their business and its employees. The NC Chamber has always opposed government mandates. As such, the NC Chamber does not support House Bill 551.
Amend Rules of Evid./Binding Arbitration (HB 611): This bill amends the rules of evidence regarding insurance admissibility and allows for binding arbitration in certain civil action. The bill failed to meet the requirements of crossover.
Why we're opposing: The NC Chamber and the aligned business community secured various tort reforms in 2011 that helped improve North Carolina's legal climate. This bill repeals actual damages, a cornerstone of the 2011 reforms that ensure damages reflect the actual out-of-pocket cost. Actual damages give juries and judges all the information needed to make an accurate assessment when rendering an awards verdict, which is important to fair and predictable legal proceedings. The NC Chamber and more than 20 other organizations sent a letter to legislators on April 25 opposing this bill - read more here.
Wage Theft Act (SB 503): This bill amends North Carolina's labor laws to end wage theft and allows an employee to place a lien on a third party’s property while resolving a wage dispute. This bill was filed on April 2. It passed the first reading and was referred to Senate Rules Committee on April 3.
Why we're opposing: By allowing an employee to place a lien on the property they serviced while disputing wages with their employer, this bill penalizes innocent third parties for merely seeking a service. This allowance is overly punitive and unfair to innocent third parties.
Repeal CON Laws (SB 539): This bill repeals certificate of need laws. The bill failed to meet the requirements of crossover.
Why we're opposing: The NC Chamber has a long opposed fully repealing North Carolina's CON laws. Instead, the NC Chamber believes North Carolina's CON laws should be reformed in order to reduce cost to the healthcare system and business.
Small Business Healthcare Act (SB 86, HB 464): These bills would make various changes to North Carolina's association health plan laws. House Bill 464 failed to meet the requirements of crossover.
Why we're monitoring: The NC Chamber supports association health plans and would support legislation allowing them in our state. Previous attempts at expanding association health plans taught us lessons for the future, and we believe that safeguards must exist in any legislation to ensure that associations can provide the coverage promised. HB 464 is closer than SB 86 to a solution the NC Chamber would fully support, however, there are still some issues that need to be addressed. We will continue working with the bill sponsors and other stakeholders to ensure those safeguards are in place.
Greater Transparency in Health Care Billing (SB 386): This bill would require health care providers to notify patients that they may receive care from an out-of-network provider prior to treatment and it would establish pricing benchmarks comparable to a patient’s in-network rate, if seen by an out-of-network provider in an in-network facility. The bill failed to meet the requirements of crossover.
Why we’re monitoring: Health care value is defined as better outcomes and manageable, predictable cost. Typically, a patient entering an in-network facility expects to see an in-network provider at an in-network rate. However, this isn’t always the case, sometimes leaving patients with high, unexpected medical bills. The NC Chamber is reviewing this legislation to ensure the policy is sound and thoroughly addresses surprise billing.
Create an Additional 5 Tier System (SB 597): This bill designates a five-tier economic distress system that may be used in addition to the current development tier system which ranks counties' development needs. The bill failed to meet the requirements of crossover.
Why we’re monitoring: At this point, it is unclear how this new economic distress system would be used. The NC Chamber will continue to gather information about the need for a new system and other impacts it may have.
North Carolina must identify ways to continue investing in the development and maintenance of sound physical infrastructure, including transportation (roads, railroads and ports), water and sewer, energy and broadband/advanced communications to meet the demands of population and economic growth.
Risk-Based Remediation/Animal Waste Mgmt. (HB 306): This bill would add animal waste management systems to the list of sites where risk-based cleanup is permitted. The bill failed to meet the requirements of crossover.
Why we're supporting: Risk-based remediation establishes sensible cleanup standards for sites where contamination may occur, which may allow those sites to be re-developed and placed into productive use. The NC Chamber supports expanding this commonsense regulatory process to animal waste management systems, especially because it is already in use at several other sites.
Merger of Certain Sewerage Districts (SB 434): This bill requires the dissolution of certain metropolitan sewerage districts and transfers their assets and liabilities to an adjacent district in the same county. The committee substitute received a favorable report and was adopted in the Senate Committee on Agriculture, Environment, and Natural Resources on May 23. It was then referred to Senate Committee on Finance.
Why we’re supporting: As outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, integrated water planning and inclusive management is key to developing long-term regional solutions to meet the state's water needs. By outlining the requirements to merge certain sewerage districts, this bill takes important steps forward towards integrated planning.
Promotion of Energy Storage Investments (SB 510): This bill promotes the installation and utilization of energy storage equipment. The bill failed to meet the requirements of crossover.
Why we’re supporting: This bill provides incentives for the continued development of energy storage investments. Additional improvements in energy storage technology should lead to lower energy costs.
Regulatory Reform Act of 2019 (SB 553): This bill makes several changes to existing regulations, including some concerning landfill life-of-site franchise requirements, real estate licensing and more. The Senate Committee on Agriculture, Environment, and Natural Resources adoped a new committee substitute on May 23, and it was referred to Senate Committee on Rules and Operations, where it will be heard on May 28.
Why we’re supporting: This bill provides operational certainty for solid waste facilities that have invested substantial funds in developing and operating a solid waste disposal site. The bill also intends to more carefully regulate timeshare salespersons and provides for a study to examine expanding the express permitting programs within DEQ.
Rural Job Retention Act (SB 505): This bill expands the job maintenance and capital development fund to include heritage manufacturing projects. This bill was signed into law on May 16.
Why we’re supporting: This bill aligns with the findings in the NC Chamber’s rural study, Spreading Economic Opportunity Across North Carolina, which encourage public-private cooperative efforts to capitalize on existing opportunities and create new ways to spur economic development in all corners of the state.
Prevent Highway to General Fund Transfers (HB 845/SB 607): This bill would allow for a refund of sales and use tax back to NCDOT for taxes paid on goods and services related to construction and maintenance activities. HB 845 was filed on April 16, passed first reading and was referred to House Finance with a serial referral to Appropriations and the Committee on Rules, Calendar and Operations of the House on April 18. SB 607 was given a serial referral to the Senate Committee on Rules and Operations on April 18.
Why we’re supporting: Transportation infrastructure is the lifeblood of commerce. The NC Chamber fought to end the practice of transferring money from the Highway Fund and Highway Trust Fund to the General Fund and it is important that those protections remain in place, as it ensures there is a stable source of revenue to address our growing infrastructure needs.
Metropolitan Sewerage Districts Expansion and Governance (HB 758): This bill expands the membership of certain metropolitan sewerage districts. The bill passed the second reading in the House on May 28 and passed the third reading on May 29. The bill was sent to the Senate on May 30 and passed the first reading on May 31, where it was referred to the Senate Committee on Rules and Operations.
Why we’re supporting: As outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, integrated water planning and inclusive management is key to developing long-term regional solutions to meet the state's water needs. The bill includes reasonable requirements for the ability of metropolitan sewerage districts to expand and serve growing customer areas, which would move North Carolina toward better integrated planning.
Saving Reserves/Use Funds for Disaster Relief (HB 846/SB 608): This bill would allocate $301 million from the saving reserves account to the Highway Fund for maintenance and repair costs associated with disaster relief. NCDOT will be required to pay the funds back by June 30, 2021. The House bill was filed on April 16 and referred to the Committee on Appropriations with a serial referral to the Committee on Rules, Calendar and Operations of the House on April 18. Senate Bill 608 was filed on April 3, passed first reading on April 4 and was referred to the Senate Committee on Rules and Operations on the same day.
Why we’re supporting: Hurricanes Florence and Matthew, along with Winter Storm Diego, decimated critical infrastructure in our state. While the state plans for these types of natural disasters, the scope of the damage can be hard to predict, and the Savings Reserve was put into place for just this reason. Using these funds to ease the burden on NCDOT and aid in speedier recovery is critical for the citizens of North Carolina.
Highway Storm Recovery Act (SB 605): This bill would loan NCDOT $90 million out of the general fund to aid in disaster relief and leverage federal dollars. NCDOT will be required to repay the loan. A PCS added an additional $65 million to this loan from the Hurricane Relief Fund, to be paid back upon Federal Reimbursement. The final amount loaned to the NCDOT will be $155 million. The bill passed the House on May 15 and was signed into law on May 16.
Efficient and Affordable Energy Rates (SB 338/HB 513): This bill would require the Utilities Commission to establish tiered electricity rates for residential, commercial, public, and industrial customers. It also creates an energy efficiency bank to be used for customer loans to be applied to the costs of certain energy efficiency or renewable energy projects. The bill failed to meet the requirements of crossover.
Why we're opposing: Artifically setting energy rates will not make rates more affordable. Instead, doing so will have the opposite effect. North Carolina needs an energy marketplace free of government overreach to ensure consumers have access to affordable, competitive rates and efficient energy delivery. Unfortunately, this bill will only make affordable, reliable energy more difficult to find in the marketplace.
FIBER NC Act (HB 431): This bill would allow counties and municipalities to build and lease facilities and equipment to increase broadband services. This bill was re-referred to the House Committee on State and Local Government on April 2.
Why we're opposing: The FIBER NC Act provides additional taxing authority to counties and municipalities to pay for construction, maintenance and operation of their broadband facilities. Granting permitting and regulatory agencies the ability to directly compete with private sector entities would lead to both barriers to enter the marketplace and delays in permits. On top of that, giving the government the ability to tax private companies to pay for the government's facilities is essentially asking private companies to fund their direct competitor. Additionally, that new direct competitor would also control entry into market, location setting, regulations, and permits. This is not a level playing field for North Carolina businesses.
Additional Measures for Emerging Contaminants (HB 568/SB 653): This bill enhances requirements for dischargers of pollutants to the state's air and water, provides increased funding for the Department of Environmental Quality (DEQ) and makes other statutory changes related to addressing possible contamination of drinking water supplies. The bill failed to meet the requirements of crossover.
Why we’re opposing: This bill confuses a clear distinction in the law between a discharge and an emission. It would also repeal the Hardison Amendment which placed a restriction on new environmental rules that have federal counterparts or that go beyond federal requirements. It also adds new burdensome requirements to permitted wastewater discharge facilities, but exempts municipal facilities from the same requirements.
Natural Gas Transportation Cost Recovery (SB 671, HB 731): These bills prohibit the North Carolina Utilities Commission (NCUC) from authorizing cost recovery for transporting natural gas unless the natural gas local distribution company proves that the transportation cost is the lowest cost available option to meet the needs of its retail customers. These bills failed to meet the requirements of crossover.
Why we’re opposing: These bills would restrict the flexibility of the NCUC to approve alternative gas transportation options. The lowest cost option may not always be the safest or most reliable option, and we would prefer for the NCUC to maintain its current flexibility when considering gas transportation options.
Req Prop. Disposal/Certain Coal Ash Impdmts. (HB 572): This bill requires certain large coal ash impoundments to be managed as high-risk impoundments and excavated. The bill failed to meet the requirements of crossover.
Why we’re opposing: The language in this bill preempts the consideration of scientific data. It would require digging up the coal ash and putting it in a new landfill if the site has 20 million tons of coal ash or more, regardless of the risk posed by the current impoundment. Any decision on coal ash disposal should be made considering risks and costs, therefore, the NC Chamber opposes this bill.
DEQ/Policy Changes (HB 245): This legislation would make various changes to environmental laws, as recommended by the Department of Environmental Quality. The bill failed to meet the requirements of crossover.
Why we're monitoring: If North Carolina is to bolster economic development, businesses need a streamlined contested case process that supports efficient project delivery. This bill would extend the time associated with the contested case process for both minor and major coastal permits, further delaying the completion of important economic development projects along the coast. The NC Chamber will monitor this bill and continue working to establish a contested case process that promotes efficiency and predictability for businesses, so that project delivery can be simplified and accelerated.
DEQ/Fund and Fee Changes (HB 246): This legislation would revise various fees and funds of the Department of Environmental Quality. This bill was filed on February 28 and referred to the House Rules, Calendar, and Operations Committee.
Why we're monitoring: Creating a modernized, streamlined regulatory climate in North Carolina is important to the NC Chamber, as is protecting a heatlhy natural environment. However, several provisions in this bill appear to establish additional regulatory hurdles for businesses to overcome. For example, section 2 of the bill proposes changes to the solid water permit fees that could raise the fees up to three times the current level, section 3(b) would increase the percentage of the fund used for inactive site investigation by DEQ and section 3(c) would increase the penalties under the solid waste program, which may be inconsistent with federal authority. We will continue to monitor this bill, as our team works to address overly burdensome regulations that hinder business growth.
Study Outside Water Rates (HB 522): This bill directs the Legislative Research Commission to study rates charged by municipalities for water and wastewater service to customers, as well as those charged to customers that reside outside of the municipal boundaries, to evaluate fee disparities. The bill was reported favorably from committee on April 25 and passed its second and third readings on the same day. It was sent to the Senate on April 26 where it passed its first reading. The bill was referred to the Committee on Rules and Operations of the Senate on April 29.
Why we’re monitoring: The NC Chamber Foundation's Framework for North Carolina Water Policy calls for better data analytics to improve water planning and inform crucial funding decisions. Studying the water rates charged by local governments to customers inside and outside their service territories will provide greater data that can then be leveraged to implement solutions. The NC Chamber will monitor this bill to see if it stays consistent within the Framework.
Utilities/Amend REPS Requirements (HB 543): This bill amends the renewable energy portfolio standard. The bill failed to meet the requirements of crossover.
Why we’re monitoring: This bill would change the solar requirements for utilities. If adopted, the utilities would have to install fewer renewables than the original policy required. The NC Chamber prefers consistency with the provisions established in NC's Renewable Energy and Energy Efficiency Portfolio in 2007.
Ban PFAS in Fire Retardant Foam (HB 560/SB 655): This bill bans the manufacture, sale or use of certain fire-retardant foam containing poly- and perfluoroalkyl substances (PFAS). The bill failed to meet the requirements of crossover.
Why we’re monitoring: While PFAS chemicals have been widely used in food packaging and to make carpet and fabric stain protection and waterproofing substances, this bill focuses on its use in fire-retardant foams. Limiting the use of PFAS in a specific product or on a state-by-state basis not only could set the stage for market uncertainty, it also would create a regulatory burden on businesses.
Polluter Pays (HB 566/SB 651): This bill makes persons causing or contributing to contamination responsible for the costs of cleanup. It also makes them responsible for the provision of alternative water supplies to persons affected by such contamination and prohibits an electric public utility from recovering from customers the costs related to the management of coal combustion and unlawful discharges from coal ash ponds. The bill failed to meet the requirements of crossover.
Why we’re monitoring: This bill dictates that utilities cannot recover from customers money spent to address new coal ash disposal requirements, but does not provide any other guidance of how else to recover costs.
Coal Ash/Prohibition of Cost Recovery/Proper Disposal (HB 567): This bill prohibits an electric public utility from recovering from ratepayers any costs related to the management of coal combustion residuals and unlawful discharges from coal combustion residuals surface impoundments. It also requires the excavation of all coal ash ponds and disposal of the coal ash in lined landfills. The bill failed to meet the requirements of crossover.
Water/Wastewater Public Enterprise Reform (HB 570/SB 536): These bills address issues facing aging water infrastructure in North Carolina and propose a surcharge on all water users that would go into a fund to help distressed systems. The Department of Environmental Quality (DEQ) would manage the funds and award them as grants. House Bill 570 was included as part of the House budget bill.
Why we’re monitoring: The NC Chamber Foundation recently released the Framework for North Carolina Water Policy, which outlines five broad solutions that would help North Carolina build water system, operational, financial, and strategic resilience. The provisions in this bill appear to be in alignment with some of the Framework's findings and could benefit smaller communities, while also incentivizing cooperation and the consolidation of water systems.
Storm Securitization/Alt. Rates (SB 559, HB 624): These companion bills permit financing for certain storm recovery costs and authorize the Utilities Commission to fix rates for electric public utilities. Senate Bill 559 was withdrawn from its House committee on May 16 and re-referred to the House Committee on Finance.
Why we’re monitoring: This bill proposes financing options for storm damage and would create a recovery fund to address utility damages from several types of natural disasters. The NC Chamber supports storm securitization, as it would allow for the formation of bonds to pay for storm recovery, creating greater predictability for customers, utilities and the state regulator. The recent amendment to this bill provides greater clarity on the proposed alternative ratemaking model, alleviating some concerns over this provision, as the NC Utilities Commission will have clear authority over rate considerations. North Carolinians need reliable, stable energy. Thank you to our state’s utilities and manufacturers for your valued feedback. We will continue to work with all of our members to fully appreciate the opportunities this bill presents, as well as the various concerns expressed about its provisions. Tell us what you think about this bill here.
Recycling and Restoration/Renewable Energy (SB 568): This bill requires responsible decommissioning of utility-scale solar facilities and wind energy facilities upon cessation of activities and recycling of all end-of-life solar energy equipment. NEW ACTION: This bill was referred to the Senate Committee on Agriculture/Environment/Natural Resources on April 16 and will be heard in committee for discussion only on June 12.
Why we’re monitoring: The NC Chamber will monitor this bill to be sure that the conditions are reasonable and attainable for businesses decommissioning their renewable energy facilities.
Hydraulic Fracturing/Statewide Ban. (HB 632): This bill would ban the practice of hydraulic fracturing throughout the state. The bill failed to meet the requirements of crossover.
Why we’re monitoring: The NC Chamber advocates for a forward-thinking, “all-of-the-above” energy strategy that supports grid modernization and improves access to renewables, solar, wind, geothermal, biomass, natural gas, oil, coal and nuclear power. Hydraulic fracturing is a proven technology being used all over the country to extract oil and gas, yet this bill would restrict North Carolina's ability to use that technology.
Wastewater Grant Amendments (HB 824): This bill amends the factors used to evaluate and award loans or grants from the Wastewater Reserve or Drinking Water Reserve. This legislation was included as part of the House budget bill.
Why we’re monitoring: Some parts of this bill would help address concepts that were outlined in the NC Chamber Foundation's Framework for North Carolina Water Policy, while others are inconsistent with those recommendations and may have an adverse impact on funding distribution.