2009 Legislative Session “Crossover Deadline” Highlights:
Chamber Wins Early Battles to Protect Jobs and the Economy
The 2009 Long Session of the North Carolina General Assembly is well underway with a crucial deadline passing just last week. Any non-revenue bills that did not pass from their originating legislative chamber to the other by the “crossover” deadline are no longer eligible for consideration during this legislative session. In other words, they are effectively “dead” until the 2011 legislative session. There are procedural maneuvers that can give such bills new "life," however, so our Chamber will keep a watchful eye throughout the session and keep our members informed.
Through the final days leading up to the crossover deadline, the North Carolina Chamber was on the ground in the NC General Assembly fighting to protect and create jobs and strengthen and grow North Carolina’s economy. Outlined in this newsletter are proposals that our Chamber either advanced or defeated prior to the crossover deadline. The fight’s long from over, however. Many bills that will impact either North Carolina’s ability to attract jobs and investment or North Carolina employers’ ability to keep and grow jobs survived the crossover deadline. Additionally, lawmakers are grappling with a $4-plus billion budget shortfall, which – among other things – has prompted them to consider a comprehensive overhaul of North Carolina’s tax system.
Our state Chamber will continue our advocacy work in the state legislature aimed at job creation and economic growth. We will continue to keep our members informed throughout the remainder of the legislative session and encourage you to continue to be involved and engaged along with us in shaping North Carolina’s future.
Legal Reform
Chamber Opposes Bills That Would Erode NC’s Legal Climate
The North Carolina Chamber considers it a top priority to preserve North Carolina’s competitive legal climate. It’s a vital part of our nationally recognized business climate that helps North Carolina keep and attract good jobs. This priority is among the top reasons that our state Chamber opposes two bills being pushed by trial (plaintiffs’) lawyers in the NC General Assembly right now that would open the door to more lawsuits, eroding our state's legal climate.
Senate Bill 882: Statute of Repose/Products Liability, sponsored by Sen. Hartsell would have a negative impact on North Carolina's legal climate by expanding, in many cases, the amount of time during which manufacturers and sellers of products can be sued for alleged defects in a product. In addition, the bill may exempt lawsuites involving disease claims from the statute of repose altogether. Click here to read more about S882: Statute of Repose/Products Liability on the North Carolina Chamber Web site.
House Bill 813: Uniform Apportionment of Tort Responsibility (UATRA), sponsored by Reps. Glazier, Blust, Ross and Stiller, would make dramatic changes to North Carolina’s civil liability system by eliminating contributory negligence, adopting a comparative fault system and modifying, but not eliminating, joint and several liability. That’s a mouthful, but what does it really mean? In the simplest of terms, as it stands now, the bill would allow someone who brings a lawsuit to collect a check even if he/she is found to have been partly at fault for what happened, which is not the case in North Carolina now. Further, in some cases, the bill would hold the party or parties being sued (the defendants) liable for more of the damages than they were responsible for, which is unfair. Click here to read more about H813: UATRA on the North Carolina Chamber Web site.
North Carolina’s legal climate is an important part of what attracts investment and jobs to North Carolina and helps employers already here keep and grow jobs. Preserving it to support continued economic growth and prevent frivolous lawsuits while still protecting consumers and employers is in the state’s best interest and critical for our future.
Employment Law
Chamber Derails Costly Sick Leave Mandate
The North Carolina Chamber has been working diligently in the NC General Assembly to ensure that North Carolina employers are not shackled with costly, unnecessary employment mandates that threaten jobs, particularly during these troubling economic times. One such mandate that was being pushed by unions, among other groups, involved paid sick leave. Two bills were introduced in the state House and Senate that would have mandated that North Carolina employers provide up to seven days of paid sick leave for all North Carolina employees.
Our state Chamber knows that North Carolina employers want to take care of their employees and certainly don’t want them reporting to work sick. They also know that providing good benefits is necessary to attracting the highest-quality employees. Instead of government trying to force a one-size-fits-all mandate, however, employers should be free to determine their benefits packages based on the size and type of business they have, what works best for their employees.
Fortunately our Chamber and a broad coalition in support of jobs was able to derail this misguided proposal with the involvement and support of our members. Thanks to all of you who responded to our Chamber’s Action Alerts on this bill and contacted your representatives in the state legislature. This was a great example of the positive impact of grassroots involvement!
Bills Blocked that would Increase Workers' Comp Costs
When it comes to workers’ compensation in our state, the North Carolina Chamber drives and supports efforts and proposals that would bring the system back to its original intent, which is: meeting the healthcare needs of injured workers, providing those workers with reasonable compensation for lost wages while injured, and helping injured workers return to work as soon as they are able. Conversely, we oppose efforts and proposal that would undermine the system and raise workers’ compensation costs because increased costs threaten jobs already in our state and make North Carolina less attractive to new jobs.
During this legislation session, a number of workers’ compensation bills were introduced that would undermine the system and raise costs. Our state Chamber was able to block these bills from moving from one legislative chamber to the other before the crossover deadline with help from a broad coalition of employers and other employer groups. Thanks to all who participated in this coordinated and effective effort to protect jobs and keep workers’ compensation jobs from increasing unnecessarily. Click here to review a list of bad workers’ compensation bills that our Chamber opposed.
Regulatory Enviornment
Chamber Backs Bill to Eliminate Duplicative Tests
In its original form, House Bill 1335, sponsored by Rep. Gibson, would have eliminated costly tests that are unnecessary and duplicative for manufacturers seeking to build factories. It just makes good sense to take advantage of any opportunity to lower the cost of doing business for employers in our state to help them preserve jobs, especially during this time of economic crisis. Today’s manufacturing jobs are good jobs with better pay and benefits than non-manufacturing jobs. This bill provides an opportunity to help North Carolina manufacturers keep the jobs they have here and help the state attract more of these good jobs.
House Bill 1335, as it was introduced in the state legislature, would have eliminated tests required under North Carolina’s Air Toxics program, which was created before the federal Clean Air Act was implemented. Once the federal law was passed, North Carolina’s program became redundant and unnecessary – forcing employers to duplicate tests already required under federal law, at anywhere from $500 to $30,000 per test.
The North Carolina Chamber worked with a coalition of employers and other groups to make sure House Bill 1335 passed the House Environment Committee. Unfortunately, when the bill was subsequently sent to the House Commerce committee, it was changed significantly and rendered practically ineffective. Our state Chamber supported House Bill 1335 in its original form, and looks forward to working with our members, partners and allies as the amended bill makes its way through the legislative process to return it to its original form or ensure that it accomplishes its original intent.
Click here to read the bill or follow its status on the NC General Assembly Web site.
Unfair Moratorium on Cement Plants Sent Back to Committee
The misguided bill placing a moratorium on the issuance of permits and construction for a proposed cement plant in New Hanover County was not voted on by the state Senate, but was instead re-referred to the Senate Appropriations (or budget) Committee. The measure was introduced to block a Titan American cement plant, scheduled to be constructed in Castle Hayne.
Titan was recruited to North Carolina several years ago and has received incentives from both New Hanover County and the state. The project would invest $450 million into our economy and create 160 jobs. Additionally, Titan executives have testified that the plant will adhere to all applicable regulations and avoid sensitive wetlands in the area, which negates the purported concerns of those who support the measure.
The North Carolina Chamber is opposed to Senate Bill 699, sponsored by Senator Boseman, because it unfairly changes the rules under which Titan was recruited to North Carolina and sends a bad message to others looking to locate in the state.
Click here to read the bill or follow its status on the NC General Assembly Web site.
Chamber Backs Bill to Limit Costly New Requirements
Senate Bill 866: APA Rules – Increasing Costs Prohibition, sponsored by Senator Hoyle, was introduced earlier in the session and successfully passed the Senate, meeting the crossover deadline for non-revenue bills to pass from the legislative chamber in which they were introduced to the other or become ineligible for consideration. The bill prohibits agencies from adopting rules that result in additional costs to North Carolina employers.
During these difficult economic times of double-digit unemployment, state rulemaking authorities need to exercise discipline in considering new, cost-imposing regulations on employers. The EPA and other federal regulatory bodies already have rules in place that protect public health and the environment. Still, many state rules go beyond the requirements set out in federal law. Senate Bill 866 intends to prevent costly, unnecessary regulations that burden employers and inhibit their ability to keep and create jobs. The North Carolina Chamber looks forward to working with lawmakers to support this proposal as it continues to move through the legislative process.
Click here to read the bill or follow its status on the NC General Assembly Web site.
Education
Chamber Supports Education Bills
A central pillar of a prosperous future for North Carolina is strong education and workforce development systems that are effective, agile, accountable, and continually produces a competitive, world-class workforce. The North Carolina Chamber and its members recognize the importance of education and workforce development and preparedness to our state’s future, particularly when it comes to attracting and keeping good jobs. Perhaps just as compelling as the civic responsibility to invest in education is the tremendous impact that our educational system has on the business environment in North Carolina. Therefore, our state Chamber is committed to improving the caliber of our state’s educational systems and the competitiveness of our students. Click here to read more about important education or workforce development bills introduced this session that are closely related to our Chamber’s legislative agenda and advocacy mission.
Looking Ahead.....
While we are four months into the 2009 legislative session, it is anticipated that it is nowhere near over. There is still a tremendous amount of work to be done to finalize a two-year state budget during one of the worst recessions North Carolina has faced in recent history.
Looking ahead, among the priorities that the North Carolina Chamber will be focused on for the remainder of the 2009 legislative session are proposed new water-supply policies, transportation infrastructure funding proposals and reform of our state’s tax system.
Senate Unveils Plan to Overhaul State Tax Structure
Late last month, the state Senate introduced a comprehensive proposal to overhaul our state’s tax system and raise over $1 billion over two years to address the state’s projected revenue shortfall. The Senate has proposed expanding the sales tax base to include more services and goods and lowering the rate. The proposal also includes an expanded personal income tax base with some downward adjustments of tax rates, an expansion of the franchise tax base, and a reduction in the corporate income tax rate from 6.9% to 4.5% over the next two years.
The North Carolina Chamber will continue its work with our members and lawmakers to ensure that any tax policy changes or new tax laws strengthen and grow North Carolina’s economy and help employers create jobs. We are currently analyzing the proposal with the input of member tax experts. At this point, the Senate’s proposal is very broad and complex and it’s unclear yet what its true impact on North Carolina employers would be overall.
If policymakers consider expanding the sales tax base to include more services, it is our state Chamber’s position that – to the extent possible – they avoid taxing business-to-business services because that will hurt both consumers and employers. It is also our position that any new tax structure should seek to avoid taxing investment because of the proven negative impact it has on growth and job creation.
Click here to review the Senate’s tax proposal.
Supporting Transportation Infrastructure for the Future
The North Carolina Chamber will continue to stress a comprehensive, balanced set of solutions, both short- and long-term, to address our state’s significant transportation infrastructure challenges. Our work will focus not only on how best to generate funding to meet increasing transportation needs, but also on how to reform the system to ensure that that our tax dollars are spent in the most efficient, effective manner possible. One of the measurers proposed and supported by our Chamber to help provide the transportation infrastructure necessary to support future jobs, growth and needs would allow local counties new options to raise revenue for transportation projects. Click here to learn more.
Water-Supply Policies Should Support Job Creation
The North Carolina Chamber supports water-supply policies that enhance continued economic development and job creation. An adequate supply of clean water and certainty around its availability is vital to economic development efforts across North Carolina. Click here to learn more.
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