1/29/20 NCACC Legislative and Case Update Amy Bason NCACC Deputy Director & General Counsel Paige Worsham, NCACC Associate General Counsel Adam Pridemore NCACC Legislative Counsel 1 1 Legislature • 2019 Long session adjourned on Oct. 31 and reconvened Nov. 13 -15 • Reconvened session & adjourned on Jan. 14 • Authorized to consider veto overrides; appointment bills; redistricting; active conference reports; DOT funding; health care access; budget • Scheduled to reconvene April 28 for short session • School capital letter sent to Governor & legislative leadership • Legislature lacks supermajority • House: 65 Republicans, 55 Democrats • Senate: 29 Republicans, 21 Democrats 2 2 Legislative Days in Session 18 0 157 16 0 14 0 134 126 125 115 12 0 114 106 103 10 0 80 72 56 60 47 47 41 36 35 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3 1
1/29/20 Number of Session Laws 60 0 577 552 50 0 463 419 418 40 0 300 30 0 264 251 229 214 203 196 20 0 146 126 122 10 0 0 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 4 Redistricting Congressional Districts Rucho v. Common Cause: U.S. Supreme Court ruled in June 2019 à “Partisan gerrymandering claims present political questions beyond the reach of the federal courts” 2016 N.C. Congressional Districts constitutional…until… Lawsuit filed in W ake County challenging the maps on the grounds of a NC state constitutional violation NCGA redrew after court issued injunction; court upheld the maps in December State Legislative Districts Common Cause v. Lewis: N.C. three-judge panel found in Sept 2019 à partisan gerrymandering violates N.C. constitution Legislators given two weeks to redraw 77 maps for 2020 elections Back to judges to decide; court upheld state maps in October 5 6 2
1/29/20 New State House Map 7 New State Senate Map 8 New Congressional Map 9 3
1/29/20 Candidate Filing Dec. 2 nd to • Not seeking Reelection 20th Senate House Sen. Erica Smith (running for US Senate) Rep. Lisa Barnes (running for Senate) Sen. Floyd McKissick (NC Utilities Comm.) Rep. Chaz Beasley (running for Lt. Gov.) Sen. Terry Van Duyn (running for Lt. Gov.) Rep. Mary Ann Black Sen. Harry Brown Rep. Debra Conrad Sen. Rick Horner Rep. Kevin Corbin (running for Senate) Sen. John Alexander Rep. Josh Dobson (running for Labor Comm.) Sen. Rick Gunn Rep. John Fraley Sen. Rob Bryan Rep. Holly Grange (running for Governor) Sen. Andy Wells Rep. Yvonne Holley (running for Lt. Gov.) Sen. Jim Davis Rep. Craig Horn (running for DPI Super.) Rep. Steve Jarvis (running for Senate) Rep. Linda Johnson Rep. Chuck McGrady Rep. Derwin Montgomery (running for Congress) Rep. Michele Presnell Rep. Michael Speciale 10 Candidate filing Former Members Running Senate House Michael Lee John Bradford Rep. Lisa Barnes (current House) Bill Brawley Allen Wellons Mike Clampitt Wesley Meredith Grey Mills Steve Jarvis (current House) Tim Moffitt Mark Hollo Sam Watford Kevin Corbin (current House) Roger Younts 11 Primary Election 12 4
1/29/20 Budget Watch • House passed budget May 3 • Senate passed budget May 31 • Conference report reported June 25 & adopted June 27 • 64-49 in House; 33-15 in Senate • Current Partisan Breakdown: 65-55 in House; 29-21 in Senate • Governor vetoed June 28 • Continuation Budget in Effect as of July 1 - G.S. 143C-5-4 • House held override vote on Governor’s budget veto on Sept. 11; Passed by a recorded margin of 55-15; Democrats say they were told no votes would be taken during session • V eto Override V ote never took place in Senate 13 Mini-Budgets • Full state budget • Mini-budgets 14 Not in Mini-Budget • School Construction Funding (SCIF) • Viable Utility Reserve • Designed to assist struggling utilities with their challenges • Teacher pay plan 15 5
1/29/20 Enacted SL 2019-17 (SB 310) Electric Co-op Rural Broadband Services SL 2019-19 (HB 233) State Auditor/Local Finance Officer Amendments SL 2019-22 (HB 646) Voter ID Implementation/One-Stop Voting SL 2019-111 (SB 355) Land Use Regulatory Changes SL 2019-169 (SB 523) Revenue Law Changes (Art. 46 Provision) SL 2019-239 (SB 683) Absentee Ballot Reform (restores last Saturday of early voting; extends voting machine change to July 1, 2020 & requires NC SBE request) 16 Enacted SL 2019-174 (HB 675) Building Code Changes SL 2019-198 (SB 584) Criminal Law Reform SL 2019-182 (SB 290) ABC Regulatory Reform bill SL 2019-200 (HB 217) DIT Changes (local government duty to report) SL 2019-230 (HB 387) Appropriates $15M for GREAT grants SL 2019-240 (SB 537) delays NC FAST provisions; extends deadline for transportation crisis plans/IVC until August 2020 SL 2019-246 (SB 557) Finance Law Changes (marketplace sellers provision) 17 Transition to Medicaid Managed Care ON HOLD 18 6
1/29/20 NCACC Priority Legislative Goals for 2019-20 Session 1) Broadband Goal • Seek legislation, funding, and other efforts to expand digital infrastructure/ broadband capability to the unserved and under-served areas and residents of the state. 2) School Capital • Seek additional revenue sources, including a statewide bond and lottery proceeds, to equitably address statewide public school and community college capital challenges. 3) Sales Tax Flexibility • Support efforts to preserve and expand the existing local revenue base of counties and authorize local option revenue sources already given to any other jurisdiction to all counties. Oppose efforts to divert to the state, fees or taxes currently allocated to the counties or to erode existing county revenue streams. 4) Human Services/Medicaid Transformation • Support provision of state resources to ensure county ability to provide essential public health, behavioral health & social services, with specific consideration to the challenges of incarcerated persons, the continued county role in behavioral health governance, and programs addressing substance use disorder, throughout Medicaid transformation. 5) School Capital Lawsuits • Seek legislation to repeal the statutory authority under N.C. Gen. Stat. 115C-431(c) that allows a local school board to file suit against a county board of commissioners over appropriations to the local board of education’s capital outlaw fund . 19 Unfinished Business • School Capital • Health Care • Teacher Raises • Farm Bill • Local Sales Tax Flexibility • Regulatory Reform Bill • Extending work of SSWG • Other issues? 20 Defensive Issues Property tax exemptions SB 416 - Recruit/Retain Volunteer Firefighters (25% property tax exclusion for qualifying volunteer firefighters on primary residence; no funding mechanism) SB 578 - Property Tax Exemption for Farm Equipment (Provides exemption for 80% of appraised value of personal property owned by qualifying farmer; estimated loss of $20-30 million statewide; did not pass crossover) HB 959 - Exempt Cemetery Property Eroding county authority Charter School Capital SB 315 - Farm Bill SB 522 – Various Changes to Charter School Law 21 7
1/29/20 Vetoed § 14 in 2019 Session Including: § HB 370 – Cooperation with ICE Detainers § HB 645 – Billboard Regulations § SB 553 – Regulatory Reform bill § HB 555 – Medicaid Transformation Implementation § SB 250 – Foreign Citizens and Voting Rolls § SB 354 – Strengthening Educators’ Pay Act § HB 966 – 2019 Appropriations Act 22 2020 Census • Mailings in March • Encourage elected officials to work with stakeholder groups and community members on methods for maximizing local participation • Local complete count committees 23 24 24 8
1/29/20 Case Updates § Case Updates § Ashe County v. Ashe County Planning Board , 829 S.E.2d 224 (May 21, 2019); PDR granted; Amicus brief filed § Crazie Overstock v. NC , 830 S.E.2d 871 (June 18, 2019); skill or chance Gift Surplus v. NC , 833 S.E.2d 703 (Oct. 15, 2019); kiosks violate sweepstakes prohibition § Property Tax Cases § In re Lowe’s Home Centers , 2020 N.C. App. LEXIS 13 (Jan. 7, 2020); Union County; COA affirmed PTC § In re Harris Teeter, 16 PTC 0060 ; PTC affirmed county and on appeal to COA; similar appeals pending in at least 17 counties 25 25 Hot Topics § Second Amendment Resolutions § 10+ adopted § Inmate Medical – statutory cap; termination/suspension § G.S. 153A-225.2 (Payment of Medical Care of Prisoners) § NC DHHS/DSS civil custody hearings 26 26 Opioid Litigation Update 27 27 9
1/29/20 Thank You! 28 10
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