Update on NC Chamber’s THINK Jobs! Advocacy Agenda

In the aftermath of the worst recession in a generation, North Carolina lawmakers have been faced with extremely tough decisions this legislative session as they worked to balance the state’s budget with far fewer tax dollars and unemployment numbers higher than the national average. 

NC House and Senate leaders have reached a budget agreement, paving the way for the General Assembly to approve and submit a budget to Governor Perdue prior to the beginning of the next fiscal year on July 1st. The House and Senate will be voting on the conference report (S897) today (June 29th) and tomorrow (June 30th).  This will be the first time the General Assembly has approved a budget on time since 2003.  Your state Chamber will provide a summary of the budget deal once it is finally approved.  Click here to review the full conference report.

With the budget completed it is likely that the legislative session will conclude in the next two weeks.  While some have suggested legislators may finish as early as July 2^nd it seems more likely that the session will end sometime the week after the 4^th of July. 

Even though the state budget deficit as dominated legislative activity, your state Chamber has worked proactively and aggressively with NC businesses and elected representatives to identify opportunities to help employers keep and create jobs and get our economy growing again.  Our clear message for state leaders and legislators has been "THINK Jobs!"

As we enter the final weeks of the session, our Chamber wanted to provide its members with a quick and timely update on some of the priorities your state Chamber and our business allies have been working on. 

NC’s Legal Climate is Vital to Overall ‘Jobs Climate’

Going into this year’s session, one of our top priorities was a favorable outcome for business on a critical civil liability proposal, House Bill 813 – Uniform Apportionment of Tort Responsibility (UATRA).  The bill passed the House in 2009 and was pending in the Senate.  Our goal was that this legislation not pass unless it was changed to maintain a fair and balanced legal system.  Thanks to the hard work of a strong Chamber-led coalition of businesses, health care organizations, local chambers and local governments, it now appears that this legislation will not be heard in the Senate.  Our coalition put forward a very fair compromise proposal that the plaintiffs’ bar was unwilling to accept.  (Click here to review our latest proposal in the legal reform negotiations.)  Because of the lack of an agreement, it does not appear as if Senate leaders will bring the bill up in committee during this legislative session. 

Our Chamber is proud to have had numerous business partners, covering a wide array of industries part of the Coalition to Protect NC’s Legal Climate Coalition. Click here to review the list of coalition partners.

Providing Fairness & Predictability in Tax Rules

Fairness and certainty in the administration of North Carolina’s tax code is one of your state Chamber’s most important tax principles. S 1172, sponsored by Senator Dan Clodfelter (D-Mecklenburg) addresses the need for fairness and due process in the assessment of penalties when the Department of Revenue forces multi-state corporations to file combined tax returns.  We believe that the law does not allow the DOR to assess penalties when a corporation files a combined return within 60 days as required.  Unfortunately, the DOR has been assessing penalties in these situations and S 1172 seeks to clarify the law to make clear that these penalties cannot be assessed. We are pleased to report that this language is included in the final budget.

Our Chamber appreciates the support of all of our members who have been engaged on this issue. We particularly appreciate the support of our key business allies, the NC Retail Merchants Association and the Council on State Taxation and their North Carolina lobbyist Chuck Neely.

Click here to read a June 10, 2010 Associated Press article that describes the issue.
Click here to read a June 17, 2010 News & Observer article that provides additional analysis on the issue.

Tax Credits & Regulatory Reform Aimed at Job Creation

House Bill 1973 – Keep NC Competitive Act, backed by the NC Chamber has a number of important economic development provisions in it.  It has passed the House and is pending in the Senate Finance Committee.  While there are still a number of issues to be worked out, it is likely to pass in some form.  There have also been discussions about including some of the provisions in H 1973 in the budget bill.  Two of the issues that your state Chamber has paid particular attention to in H 1973 are the extension of the Article 3 J tax credits and the need to clarify current law so that minor environmental violations do not inadvertently disqualify a taxpayer that would otherwise be eligible for a tax incentive.  We continue to push hard on both of these issues to ensure that they are either included in the budget or that H 1973 passes with these provisions in them. 

Fixing Regulations Would Help Environment & Economy

• House Bill 1575 – Accelerate Remediation of Manufacturing Sites.  Another of our priorities this year has been to establish risk based cleanup standards for manufacturing sites.  Doing so will expedite clean up of these sites, get them back into productive use and create jobs in the process.  Risk based cleanup standards are not a new concept and are currently used in other programs in North Carolina.  We are continuing to work on this issue with the Governor’s office and are hopeful that an agreement will be reached to move this important legislation forward before the end of session. 
• State Environmental Policy Act- SEPA is a law that says, before the State can build a new public project or highway, the State must first study the project, get public input and consider all possible options and viewpoints. Several months ago Judge Donald Stephens ruled that SEPA applies to economic development projects that receive state or local funds, treating private investment as if it were a public project.  This decision will have a negative, long-term impact on economic development and job creation throughout North Carolina. If unchanged it will immediately decrease North Carolina’s competitiveness for projects that could bring much needed jobs to our State.
  
  Since the session began in May, our Chamber has been working with allied business groups, economic developers, local government entities, legislative leaders, and the Governor’ office to clarify that the legislature did not intend to subject private economic development projects to SEPA.  The application of this additional process would mean that each project could face a delay of at least six months – and as much as two years – before a company could begin construction. It is important to economic growth and job creation that this be clarified and we are working to do so before this session ends.

The closing weeks of the session promise to be hectic, but we will keep you informed as issues are resolved. If you have any questions or feedback on any of the legislative issues, contact NC Chamber VP of Governmental Affairs John McAlister at jmcalister@ncchamber.net and Director of Governmental Affairs John Goodman at jgoodman@ncchamber.net