No. 30
www.nclm.org
September 10, 2009
2009 North Carolina General Assembly
Long Session Wrap Up Report
Introduction
Thank you for your support and involvement to ensure positive outcomes for our North Carolina cities and towns during
the 2009 General Assembly Long Session. This document is a reference for your use in considering bills that potentially
affect your city or town. We have highlighted a few key items, such as annexation and the state budget. All other bills are
categorized by issue/topical area (alphabetized).
We have included both enacted bills (those that passed and became law) and bills that are not law but are still potentially
eligible in the 2010 short session. We have also indicated in each category a few key bills (not all inclusive) that were
defeated or are likely ineligible in 2010. Issues expected for study in the interim are included at the end of this report.
The 2010 session will convene on May 12, 2010. The League 2010 Advocacy Agenda will be available in late October
following approval at our annual conference. Please continue to discuss issues with your legislative delegation as your
ongoing relationships are critical to our success in 2010. We look forward to seeing you as we make visits across the state
in the interim.
M
beside a bill indicates a League memo will be produced on this subject to provide detailed explanation about
application of the new law. These memos will be available at our website: www.nclm.org. If you have questions about
items included in this wrap-up, or any other legislative advocacy or legal need, please call a member of our Extended
Government Affairs Team (League Government Affairs and/or Legal) listed at the end of this report.
Highlights of Session
The 2009 Session of the North Carolina General Assembly was dominated by overwhelming budgetary concerns created
by declining economic conditions throughout the latter half of the fiscal year. Legislators faced an estimated $4.3 billion
shortfall and passed a state budget in early August, following months of wrangling over budget cuts and tax increases.
Lawmakers also confronted numerous high profile substantive issues, ultimately passing over 500 bills on their way to an
August 11, 2009 adjournment:
Annexation – House passed bill providing for referendum on city-initiated annexations (did not see action in Senate).
Coastal Property Insurance – Patched fiscal problems of the “Beach Plan” by shifting financial liabilities.
Smoking – Passed legislation banning smoking in restaurants and other places of public accommodation.
Texting While Driving – Enacted laws prohibiting drivers from sending or reading text messages.
Intermodal Funding – Authorized local option sales taxes for transit subject to approval by voters.
Racial Justice – Applied additional legal standards to death penalty cases involving minority defendants.
Municipal Issues — 2009 Long Session
ANNEXATION FOR HEALTHY COMMUNITIES
League members should be proud of the proactive
leadership approach taken this session. It was
appreciated and respected by most legislators.
Unfortunately, the issue of annexation reform remains
unresolved.
The League supported HB 727/SB 472 as a proposal
for reasonable changes to address legitimate
concerns. Those bills did not advance, although
many of their provisions were incorporated into a
compromise bill.
Page 1 of 11
Many bills which did not advance, were introduced
to gut the existing annexation law and take it back to
a pre-1959 approach. These bills are no longer
eligible in the 2010 short session.
A compromise bill (HB 524) was proposed on the
House side with strong changes to service
requirements, density standards, and other provisions
that would make annexation more difficult. The
League reluctantly supported it as the best chance for
an agreement between opposing sides. But the
addition of a referendum in the House killed the
chances for League support and for passage of the
bill this session. Supportive House members worked
to remove the provision but were unsuccessful. The
Senate did not take up the bill.
Next Steps: Build understanding and support of
Senate and House members regarding appropriate
reform without a referendum. Work with select
legislators to address prospects for reasonable reform
bill in short session.
While it is disappointing that we were unable to make
reasonable changes to address concerns and to put the
annexation issue behind us, it is encouraging that the law
remains intact for now. Please thank those legislators
who worked so hard to protect annexation and ensure
fairness for all citizens and well-managed growth in our
communities. Your serious responsibility and leadership
in carefully managing city-initiated annexations continues
to be critically important.
Modify Speed Zone Restrictions – SB 649 (SL 2009234): ENACTED. Provides that when a city annexes a
road on the state highway system, the speed limit posted
at the time of annexation remains in effect until both
DOT and the city pass concurrent ordinances to change it.
STATE BUDGET/MUNICIPAL REVENUES
Appropriations Act of 2009 – SB 202 (SL 2009-451):
ENACTED. The General Assembly struggled to pass the
state budget, ultimately agreeing to a $19 billion spending
plan with nearly $1 billion in new taxes and significant
cuts throughout state government. Tax increases include
a temporary one-cent increase in state sales tax (through
June 30, 2011), sales tax increases on beer/wine and
cigarettes, and temporary income tax surcharges on
corporations and on couples earning over $100,000 (tax
years 2009 and 2010).
Municipal revenues were not immune from the many cuts
made in order to produce a workable state budget. Beer
and wine tax distributions for FY 2009-10 were reduced
by two-thirds (total municipal impact of $14.4 million).
These revenue distributions are scheduled to return to
normal levels in FY 2010-11 – additional legislation
would be required to change that.
The League staff worked diligently to minimize impact
on municipal revenues, and preserve the municipal
privilege license tax. While the tax was spared this year,
tax reform proposals that included its elimination will be
studied during the interim.
Other budget items of note:
Rural Center: 2% cut; additional 2% cut in FY 2011.
Clean Water Management Trust Fund: funded at $50
million for both FY 2009-10 and FY 2010-11.
ALCOHOLIC BEVERAGE CONTROL
Local Government Objections to ABC Stores – HB
186 (SL 2009-36): ENACTED. League Advocacy
Agenda item. Establishes a process for local
governments to object to the siting of an ABC store. ABC
Commission still has the final decision. We will continue
to work toward further municipal authority as to the
location of ABC establishments.
ABC Rules/Private Clubs – HB 1228 (SL 2009-381):
ENACTED. Deletes the requirement of a waiting period
for membership in a private club under the ABC laws.
ABC Store/Board Reform - HB 768, HB 1367, SB 839:
NOT PASSED; STILL AN ISSUE. General Assembly’s
Program Evaluation Division report on the ABC store
system recommended that the ABC Commission have the
authority to mandate merger of ABC boards and require
stores to contract with agency/private stores based on
performance standards. While selective improvements
may be needed, the League supports the current system.
We worked with legislators on the House ABC
committee to make our position known. This may be an
issue next session – it is currently unclear if any of the
bills will be eligible.
ELECTIONS
Municipal District Elections/Census – SB 38 (SL 2009414): ENACTED. Applies special rules for redistricting
following the federal census. After receiving census
information, a city that elects its governing board on a
district basis may delay the municipal election if it needs
to revise districts to correct population imbalances.
One Stop Sites – HB 908 (SL 2009-541): ENACTED.
Requires the county board of elections to make its request
for the use of a public building for one-stop voting at
least 90 days before the start of the one-stop voting
period. If the city in charge of the building responds
negatively to the request within 20 days, the city and the
county board of elections must work in good faith to
identify an alternative site for one-stop voting.
Public Municipal Campaigns – HB 120: PASSED
HOUSE; STILL ELIGIBLE. Would establish a pilot
program for public financing of municipal election
campaigns.
ENVIRONMENT
Energy
Various Localities Energy Dev. Incentives - SB 52 (SL
2009-95): ENACTED. Allows cities statewide to adopt
ordinances granting density bonuses, making adjustments
in development requirements, or providing incentives to
builders for agreement to construct or reconstruct to
reduce energy use.
Page 2 of 11
Revolving Loan Fund for Energy Improvements - HB
1389 (SL 2009-522): ENACTED. Allows cities to
establish revolving funds to provide loans to finance the
purchase and installation of renewable energy sources or
energy efficiency improvements for residential,
commercial or other real property. Cities can use
unrestricted revenue as well as Energy Efficiency and
Conservation Block Grant Funds for the fund.
Permitting of Wind Energy Facilities – SB 1068:
PASSED SENATE; STILL ELIGIBLE. Would require a
state permit for wind energy facilities, with certain
restrictions on location and impact. Preserves local land
use authority over such facilities, which was part of the
League’s Advocacy Agenda.
Solid Waste/Hazardous Waste
Disposal of Pesticide Containers – HB 760 (SL 2009499): ENACTED. Exempts pesticide containers from
the prohibition on disposal of rigid plastic containers in
landfills. Effective October 1, 2009.
Electronics Recycling – SB 838 (SL 2009-484):
ENACTED. Delays the effective date of manufacturer
responsibility and recycling provisions for computers and
televisions until July 1, 2010. The landfill ban on these
items goes into effect January 1, 2011. A bill to amend
the substantive provisions of the electronics recycling
program (SB 887) passed the Senate and is eligible for
the short session.
Tip Tax - SB 838 (SL 2009-484): ENACTED. Changes
the distribution provisions for the solid waste tip tax to
delete the requirement that cities served by a regional
solid waste authority forward their distributions to that
authority.
Water Issues
Drought
Promote Water Efficiency – HB 1236 (SL 2009480): ENACTED. Requires local water systems to
recognize certain car wash water conservation
certification programs approved by DENR and credit
certified facilities for use reductions during water
shortages. Effective January 1, 2010.
Water Rate Structure – HB 1099: IN
CONFERENCE; STILL ELIGIBLE. Would have
delayed the effective date for the requirement to have
an adequate water rate structure in order to qualify
for state water infrastructure funds until July 1, 2010.
The provision became effective July 1, 2009, even
though guidelines for implementation were not
complete.
Hydropower - HB 1099: IN CONFERENCE; STILL
ELIGIBLE. Would establish the Yadkin River Trust as a
public agency of the state that could sell hydroelectric
power and distribute water for public purposes.
Moratorium on EMC Rulemaking - HB 1335:
PASSED SENATE. Would place a moratorium on the
Environmental Management Commission’s adoption of
rules regarding any requirement to test water quality by
animal feeding operations. Its eligibility is unclear.
Reservoirs/Water Quality
Restore Water Quality in Jordan Reservoir - HB
239 (SL 2009-216) and SB 838 (SL 2009-484):
ENACTED. Workable compromise was reached
following intensive negotiation. Includes an
extended time for cities to meet wastewater treatment
plant upgrade requirements, a phased-in approach to
nutrient reductions tied to existing development,
cost/benefit analysis for existing development
provisions, and a prohibition on requiring local
governments to take certain actions (such as
condemnation of property) in order to comply.
Upper Neuse Basin Water Quality – SB 1020 (SL
2009-486): ENACTED. Requires that Falls Lake
nutrient management strategy be developed by
January 15, 2011. Requires that credit be given for
early adoption of nutrient management strategies and
addresses sedimentation and compensatory
mitigation requirements.
Stormwater
Stormwater Controls for Compost – HB 1100 (SL
2009-322): ENACTED. Directs DENR to establish
stormwater control best management practices and
water treatment processes for composting operations.
Parking Lots - HB 1099: IN CONFERENCE; STILL
ELIGIBLE. Would allow local building inspectors to
rely on third-party certification that a parking lot and
bioretention area are properly designed and
constructed for compliance with limits on impervious
parking. The League sought this clarification.
Water Allocation
Bills were introduced to implement recommendations of
a study (HB 1101, SB 907) but did not advance. The
study continues and the issue is likely to be discussed in
the 2010 session.
FINANCE AND TAXATION
Property Tax Legislation
M - Defer Tax on Builders Inventory - HB 852 (SL
2009-308): ENACTED. As a way to temporarily
support an ailing homebuilding industry, defers property
tax on new, unsold homes. The bill was supported by
House leadership. The League was successful in
narrowing the application to newly constructed home
structures, removing the impact of property tax deferrals
from FY 2009-10 budgets, and limiting the window in
which deferrals could be approved to 2010 - 2013.
Page 3 of 11
Community Land Trust Property Taxation – HB 1586
(SL 2009-481): ENACTED. Effective for tax years
beginning July 1, 2010. Intended to assist community
land trusts whose mission is to provide affordable
housing options for low income individuals, the
legislation restricts valuation of real property owned by
community land trust developers that is leased to low
income tenants, resulting in reduced property tax
valuations.
Amend Allocation of TVA Payments – H1570 (SL
2009-569): ENACTED. Effective October 1, 2009.
Changes the allocation formula for local governments
that receive payment in lieu of property tax on Tennesee
Valley Authority property. Future payments will be
based on the relative value of the real property in each
jurisdiction.
Revenue Laws Tech, Clarifying, and Admin. Changes
– SB 509 (SL 2009-445): ENACTED. Makes technical
changes to aid in the administration of the disabled
veterans homestead exclusion, combined motor vehicle
property tax collection system, and heavy equipment
gross receipts tax.
Critical Infrastructure Assessment Changes – SB 97
(SL2009-525): ENACTED. Serves as a follow up to
special assessments legislation passed in 2008.
Authorizes special assessments for all purposes listed
under the project development financing statutes; adds
energy efficiency and renewable energy projects as an
authorized purpose; clarifies the types of public financing
that assessments can be used to pledge; and makes
changes to the public bidding laws when assessments are
involved.
Sales Tax Legislation
Congestion Relief/Intermodal Transport. Fund –
HB 148 (SL 2009-527): ENACTED. To enhance
funding for transit systems across the state, the legislation
authorizes 94 counties to levy a one-quarter cent local
option sales tax, subject to voter approval, with the
proceeds dedicated to public transportation programs.
Also authorizes five other counties to levy a one-half cent
local option sales tax for transit, if voters approve.
EMS/Fire Dept. Sales Tax Refunds – HB 511 (SL
2009-233): ENACTED. Makes volunteer Fire/EMS
departments eligible for sales tax refunds on purchases
made after July 1, 2008.
Local Government Finance
Changes for Bonds Authorized Under ARRTA SB 754 (SL 2009-140): ENACTED. Amends state
law to provide local governments authority to issue
the new types of bonds created under the federal
stimulus legislation.
State Health Plan/Ambulance Service Payment HB 439 (SL 2009-83): ENACTED. Requires the State
Health Plan to pay cities and counties directly for
ambulance services they provide. For cities, the service
must be city-owned or funded in part by the city.
Intended to avoid fraud where ambulance users received
state health plan payments but never paid the local
ambulance bill. Effective July 1, 2009.
Exactions/Fee Authority
No Taxes or Fees For Development - SB 447: NOT
PASSED; LIKELY INELIGIBLE. Would prohibit a city
or county from imposing a tax or fee for development
unless it is specifically authorized by law. While the
primary target of this legislation is adequate public
facilities ordinances, certain municipal regulatory fees are
not statutory (relying instead on case law), and would be
jeopardized if the legislation were to pass. The League
was successful in preventing the bill from moving
forward.
GOVERNMENT OPERATIONS
Governmental Immunity
Local Gov’t Tort Claims/Gov’t Immunity –
SB 1026/HB 887: NOT PASSED; STILL AN ISSUE.
Would have established a local government tort claims
act similar to the state’s. The League had concerns over
the fiscal impact and was successful, as part of a
coalition, in stopping the bill prior to the crossover
deadline. We will continue discussions between the
League, counties, school boards and others to attempt to
bring a reasonable solution to the sponsor. Likely will
address a compromise during the interim and move
forward with a bill in the 2010 session.
Tort Claims Act/Local Government Opt-In - SB 859
(SL 2009-519): ENACTED. Allows cities over 500,000
(Charlotte) to waive their immunity and opt in to the
state’s Tort Claims Act.
Uniform Apportionment of Tort Responsibility - HB
813: PASSED HOUSE; STILL ELIGIBLE. Would
change the state’s current contributory negligence
approach to one of comparative fault, so that a claimant’s
recovery would be linked to percentage of responsibility.
Nuisances
Make Overgrown Vegetation Law Statewide - SB 452
(SL 2009-19): ENACTED. Allows cities to notify
chronic violators of overgrown vegetation ordinances that
during the current year the city will take action to cut the
vegetation without further notice. Expenses of the action
become a lien on the property.
Statewide Nuisance Notice Authority - SB 564 (SL
2009-287): ENACTED. Allows similar notification of
chronic violators of nuisance ordinances.
Page 4 of 11
Open Meetings/Public Records
M - City/County/Sanitary District Fees/Internet SB 698 (SL 2009-436): ENACTED. Requires
supplemental public notice of proposed new or
increased development fees on the city-maintained
website, if any. The League worked to narrow the
legislation, and it now applies to increases in fees
applicable solely to the construction of development.
Effective September 1, 2009.
M - Notice of Special/Emergency Meetings – HB
81 (SL 2009-350): ENACTED. Amends the Open
Meetings Law to provide that email is an acceptable
method of providing notice of special and emergency
meetings to the media and sunshine list. Clarifies
that special meeting notice must be posted on the
door of the building or another place accessible to the
public if the building containing the principal bulletin
board or usual meeting room is closed to the public
continuously for 48 hours before the time of the
meeting. Requires posting of the schedule of regular
meetings on the public body’s website, if any. If the
public body’s employees maintain the website, notice
must also be posted of special meetings and recessed
meetings prior to the scheduled time of the meeting.
Effective October 1, 2009.
Electronic Notices - HB 193/HB 710: NOT
PASSED. League Advocacy Agenda Item. HB 193
would allow cities to publish notice of public
hearings by electronic means in lieu of newspaper
notice. It was met with significant opposition from
the North Carolina Press Association and was
withdrawn in committee. An attempt to add some
towns to a local bill (HB 710) also failed. HB 710
passed the House with one town included and could
possibly be expanded in the short session.
Open Government Act - HB 1134: PASSED
HOUSE; STILL ELIGIBLE. Creates an Open
Government Unit in the Attorney General’s office to
serve as a mediator in public records disputes.
Allows attorneys’ fees to be paid if a party suing for
records “substantially prevails.” The court cannot
award attorneys’ fees against a governmental unit if
the unit acted in “reasonable reliance” on a court
judgment, appellate court opinion, or Attorney
General’s opinion. The League was successful in
improving the bill, and will seek further amendment
to ensure greater fairness and more practical
application for local governments in complying with
the public records act.
Adjust Conflict Threshold - HB 682 (SL 2009-226):
ENACTED. Effective October 1, 2009, adjusts the
conflict of interest statutes regarding contracts between a
small local government (up to 15,000 population) and an
official of the local government. Provides that the
amount of a contract may not exceed $20,000 for
medically related services or $40,000 for other goods and
services within a 12-month period.
M - Local Government Code of Ethics - HB 1452 (SL
SL 2009-403): ENACTED. Requires local governments
to adopt a code of ethics by January 1, 2011. Also
requires two hours of ethics training within 12 months of
election/appointment for elected officials, starting
January 1, 2010. The League worked with sponsors to
ensure a reasonable bill progressed and is partnering with
the School of Government to develop training and
resources.
Local Government Surplus Property Donations –
HB 96 (SL 2009-141): ENACTED. Treats charter
schools as governmental units for the purpose of statutes
allowing cities to donate property to other governmental
units.
Prohibit Smoking in Certain Public Places - HB 2 (SL
2009-27): ENACTED. Prohibits smoking in restaurants
and bars, with certain exceptions. Authorizes local
governments to adopt smoking rules more restrictive than
the state’s for public places and for local government
buildings, grounds, and vehicles. Local ordinances may
not restrict smoking in private residences, private
vehicles, tobacco shops, facilities owned by tobacco
manufacturers and growers, cigar bars, private clubs,
movie or theater sets, and designated smoking rooms in
hotels.
Regulation of Golf Carts by Local Governments –
HB 121 (SL 2009-459): ENACTED. Repeals existing
local acts enabling the regulation of golf carts by local
governments, and creates a new framework under which
all local governments may regulate golf carts by
ordinance. Cities may regulate golf carts on public roads
within city limits with speed limits of less than 35 miles
per hour, and on property owned or leased by the city.
New ordinances may become effective no earlier than
October 1, 2009.
M - Condemnation/Conservation Easements - SB 600
(SL 2009-439): ENACTED. In response to complaints
that properties encumbered by conservation easements
were being targeted for condemnation, the legislation
restricts the ability of cities to condemn such lands.
Cities will be required to prove that no “prudent and
feasible” alternative exists before condemning property
encumbered by a conservation easement. The new legal
standard applies in condemnations related to roads and
other infrastructure, but the League was successful in
improving the bill to exclude condemnations for utilities
(electric, gas, water, wastewater, etc). Applies to
condemnation proceedings initiated on or after October 1,
2009.
Page 5 of 11
M - Community Development Target Areas – HB
866 (SL 2009-263): ENACTED. Authorizes cities to
adopt ordinances empowering the city to declare
residential structures in community development target
areas unsafe and to demolish the structures if necessary.
Ordinances may not become effective until October 1,
2009. Ordinances previously adopted under local act
authority are no longer effective as of October 1, 2009.
Junked and Abandoned Vehicles – HB 867 (SL 200997): ENACTED. Amends the statutory definition of
“junked motor vehicle” to increase the value threshold to
$500. Repeals previous local act changes to the value as
of October 1, 2009. New ordinances may not become
effective until October 1, 2009.
Promote Mitigation Banks – S755 (SL 2009-337):
ENACTED. Clarifies the ability of developers and
governmental units to use private compensatory
mitigation banks to meet regulatory requirements to
mitigate the impact of their development on the
environment. The League was successful in expanding
the authority of cities to use all mitigation options
available, both public and private. Also directs DENR to
conduct a study of the financing of the Ecosystem
Enhancement Program.
Urban Area Revitalization Made Uniform – SB 618
(SL 2009-385): ENACTED. Removes the population
threshold so that all cities are authorized to establish
municipal service districts in order to finance, provide, or
maintain urban area revitalization projects.
M - Allocate Water Cost/Landlord Tenant Changes
– SB 661 (SL 2009-279): ENACTED. Makes various
changes to landlord/tenant law but also includes a
provision affecting a city’s ability to order that a dwelling
be vacated and closed under the minimum housing
ordinance. Effective October 1, 2009, the city may order
repair for a dwelling unfit for human habitation but may
only require that the property be vacated and closed if
occupancy during the time of repair will present a
significant threat of bodily harm.
Eminent Domain - HB 1268: NOT PASSED; STILL
ELIGIBLE. Would call for a constitutional amendment to
prohibit the use of eminent domain for economic
development purposes, subject to a referendum in the
May 2010 statewide election. State law already prevents
the use of eminent domain for general economic
development purposes. The bill did not pass the House or
Senate but may remain eligible because it would amend
the state constitution.
Encourage Use of Military Veteran Contractors –
HB 912: PASSED HOUSE; STILL ELIGIBLE. Would
provide preferred status for military veterans in their
efforts to secure contracts with state and local
governments by setting statewide contracting goals. In
earlier versions, the ability of cities to successfully meet
these goals was compromised by lack of a central
clearinghouse to assist in identifying eligible veteran
contractors. The League has asked for an amendment to
help streamline city efforts in this area.
Authorize Mayors to Solemnize Marriage – SB 992:
PASSED SENATE; STILL ELIGIBLE. Would allow local
ordinances to authorize mayors to solemnize marriages.
INCORPORATIONS
Three incorporation bills passed this session. All of the
potential new incorporations are subject to voter
approval.
Archer Lodge (Johnston County) - referendum on
November 3, 2009
Sneads Ferry (Onslow County) - referendum on May
4, 2010
Swannanoa (Buncombe County) - referendum on
November 3, 2009
INFRASTRUCTURE/MUNICIPAL BROADBAND
Municipal Broadband – NOT PASSED; STILL AN
ISSUE. The League was successful in stopping
legislation (HB 1252/SB 1004) in both the House and
Senate that would have been very damaging to city ability
to provide citizens with needed broadband services.
[Note that SB 1004 was enacted but was converted to
different content.] During the interim municipal
broadband has been assigned as an issue to be studied in
the Revenue Laws Study Committee.
Prevent Theft of Scrap Metals - HB 323 (SL 2009200): ENACTED. League Advocacy Agenda Item.
Strengthens requirements regarding metal marked with
the identification of a public utility or government entity,
utility access covers, street light poles or fixtures, road or
bridge guard rails, street signs, water meter covers, and
traffic signals. Prohibits metal recyclers from purchasing
such items without sufficient documentation and prohibits
payment in cash. The seller must sign a receipt and leave
an index fingerprint. Effective October 1, 2009.
LAND USE/DEVELOPMENT
Building Codes and Permitting
M - Extend Certain Development Approvals - SB
831(SL 2009-406) and HB 1490 (SL 2009-572) and SB
838 (SL 2009-484): ENACTED. Intended to shore up the
homebuilding industry during the economic downturn,
extends the life of certain types of development permits.
For development approvals that were current and valid at
any point from January 1, 2008 to December 31, 2010,
the “clock” time on the permit and its vested rights is
stopped until December 31, 2010. (Some permits may
have additional time left to run after December 31, 2010
Page 6 of 11
and some permits that local governments may have
assumed to be expired may be revived.) The League spent
many hours working to improve this legislation and
clarify its effects in the waning days of the session. The
final product, in three separate bills, included some of our
changes but leaves many questions unanswered.
Building Code Exclusion/Certain Wiring – HB 1409
(SL 2009-532): ENACTED. Effective October 1, 2009.
Exempts certain electrical devices and fixtures from
building permitting requirements. Building permits will
not be required when licensed contractors replace water
heaters (no change in size, fuel source, etc.) or complete
minor electrical wiring or lighting repairs and
replacements in single family homes or duplexes.
Use of Cisterns in Construction/Renovation – HB 749
(SL 2009-243): ENACTED. Authorizes the state
building code to allow the use of cisterns for toilet
flushing and outdoor irrigation, and prevents local
governments from prohibiting their use for these
purposes.
Railroad Corridor Management - HB 116: PASSED
HOUSE; STILL ELIGIBLE. Designed to prevent future
encroachments into the railroad corridor, the bill would
prohibit local governments from issuing certain
development approvals, such as building permits, in the
corridor without the railroad’s consent. The League
worked to ensure that local officials would be authorized
to rely on documentation of agreement provided by the
applicant rather than serving in the role of obtaining
railroad consent.
Land Use Decision Making
M - Appeals of Quasi-Judicial Land Use Decisions SB 44- (SL 2009-421): ENACTED. Effective January 1,
2010. Attempts to clarify the law as to the judicial review
of quasi-judicial land use decisions made by local
government elected and appointed boards. The League
worked to ensure that judges may continue to give
deference to local government decisions when deciding
lawsuits.
Zoning Change/Property Owner Notice – SB 1027 (SL
2009-178): ENACTED. Protects landowners from thirdparty rezoning requests by requiring the applicant to
certify that the landowner has received actual notice of
the proposed zoning map amendment and a copy of the
notice of the public hearing.
Affordable Housing/No Discrimination - SB 810 (SL
2009-533): ENACTED. As an extension to existing antidiscrimination housing laws under the State Fair Housing
Act that are primarily targeted at the private sector, makes
it unlawful for a local government to discriminate against
affordable housing developments in making land use or
permitting decisions. A decision of a local government is
not discriminatory if the action or inaction of the local
government was made to limit high concentrations of
affordable housing projects, or if the action or inaction of
the local government was “motivated and justified by a
legitimate, bona fide governmental interest.”
Solar Collectors on Residential Properties – HB 1387
(SL 2009-553): ENACTED. Amends existing statutes to
preempt local governments from banning solar collectors
on all residential properties, including in historic districts,
with some exceptions. Effective December 1, 2009.
Development Moratoria - SB 117: PASSED SENATE;
STILL ELIGIBLE. In response to homebuilder
complaints of local governments abusing the use of
planning moratoria as a means to stop development
altogether, the bill would prohibit a city from adopting a
temporary moratorium on development in order to
develop and adopt new or amended ordinances. The
League continues to strongly oppose as written and was
successful, with help, in stopping the legislation from
moving forward.
DOT Vegetation Removal Changes - HB 1583: NOT
PASSED. POSSIBLY ELIGIBLE. Would have expanded
the tree-cutting zone from 200 to 375 feet for billboards
located on federal aid primary highways. As introduced,
would have deleted a provision currently in the
administrative rules that requires DOT to deny a
vegetation removal permit if the application is contrary to
a local ordinance. The League was successful in getting
that protection restored. A committee substitute also
removed a provision of concern that would have applied
to vegetation removal on other roads. Did not pass the
House or Senate but permit fees provisions may keep it
eligible.
PERSONNEL/LABOR
Collective Bargaining/Card Check - NOT PASSED;
STILL AN ISSUE. The League remains active at the state
and federal levels. Bills (SB 178, SB 427, HB 750) to
repeal the prohibition on contracts between government
entities and labor organizations were introduced but did
not see action this session. The League successfully
presented to the House Business Caucus and to individual
House members the damaging effects public sector
collective bargaining could have.
PUBLIC SAFETY
Emergency Management
Allow Mutual Aid Between State & Local Gov’t –
HB 379 (SL 2009-194): ENACTED. Allows the
Governor to establish mutual aid agreements between
the state and local governments in the same manner
as the state establishes agreements with other states
and the federal government.
Page 7 of 11
Authorize Voluntary Medical Registry Program –
SB 258 (SL 2009-225): ENACTED. Allows
establishment of a voluntary model registry for use
by political subdivisions in identifying functionally
and medically fragile persons in need of assistance
during a disaster.
Clarify Local Government Evacuation Authority
– SB 256 (SL 2009-146): ENACTED. Clarifies that
a local ordinance can include directing and
compelling the evacuation of all or part of the
population from any stricken or threatened area
within the governing body's jurisdiction; prescribing
routes, modes of transportation, and destinations in
connection with evacuation; and controlling ingress
and egress of a disaster area and the movement of
persons within the area.
Facilitate Access to Emergency Supplies –
HB 1210 (SL 2009-195): ENACTED. Allows the
Governor by executive order to allow persons
transporting essentials in commerce or restoring
utility services to a disaster area to enter or remain in
areas under curfew from which they would otherwise
be excluded. Allows local officials to specify the
permissible route of entry and exit for such persons.
Strengthen Local Emergency Management –
HB 380 (SL 2009-196): ENACTED. Authorizes
counties and cities to form joint emergency
management agencies.
Future Volunteer Firefighters Act - HB 557 (SL 200921): ENACTED. Allows certain qualified youth
(uncompensated fire department or rescue squad
members who are over the age of 15 and under the age of
18 and members of a bona fide fire department) to
participate in training through their fire department, the
Office of State Fire Marshal, or the community college
system. Intended to address concerns with regard to child
labor laws.
Pyrotechnics Permitting Safety Act – SB 563 (SL 2009507): ENACTED. Prohibits cities or counties from
authorizing fireworks at a concert or public exhibition
unless the display operator provides proof of insurance of
at least $500,000 or the minimum required by the state
building code, whichever is greater. The display operator
must obtain a permit from the state fire marshal, and
personally direct all aspects of the use and discharge of
the fireworks. All individuals assisting the display
operator must meet training requirements and act under
the operator’s direct supervision. Exempts from the
training requirements a person who has the appropriate
professional qualifications and is an active member of a
local fire or rescue department with experience in
pyrotechnics or explosives. Effective February 1, 2010.
Add Division of LESS to CCPS – HB 201 (SL 200981): ENACTED. Creates Law Enforcement Support
Services Division within the Department of Crime
Control and Public Safety to provide central storage and
management of evidence and rape kits, manage
equipment for loan to law enforcement agencies, and
develop innovative and technological solutions for first
responders. Clarifies that a vehicle transfer from a local
government or volunteer fire department to a state agency
for re-transfer to another local unit or department is not
subject to the highway use tax.
RETIREMENT ISSUES
M - Clarify Local Special Separation Allowance HB 816 (SL 2009-396): ENACTED. Clarifies the
application of the special separation allowance for
retiring/reemployed law enforcement officers. The
League was successful in clarifying that a law
enforcement officer’s special separation allowance ceases
on the first day of re-employment by a local government
employer in any capacity and that the act applies
prospectively only, with no retroactive payments
required. Also allows local governments to employ
retired officers in a capacity not requiring participation in
the local retirement system without causing payments for
those officers to cease.
Modify Supplemental Retirement Board/Furloughs –
SB 658 (SL 2009-378): ENACTED. Provides optional
authority for local governments to prevent the loss of
creditable service for active employees that have been
furloughed by allowing the local government to pay both
the employee and employer contribution to the retirement
system. Applies only to furloughs taken between January
1, 2009 and July 1, 2010 and is a one time, irrevocable
decision of the local government. Also reserves an
appointment for a retired state or local government
employee on the NC Supplemental Retirement Board.
Fire and Rescue Pensions Withdrawal Change –
HB 1073 (SL 2009-365): ENACTED. Allows members
of the Firemen’s and Rescue Squad Pension Fund with
five years or more service who withdraw from
membership to take with them both the employee and
employer contributions made to the fund. It is anticipated
that this would have very little fiscal impact on the fund.
State Treasurer Investments – SB 703 (SL 2009-98):
ENACTED. In light of the monumental changes that have
taken place in the stock market since the third quarter of
2008, Treasurer Cowell requested investment authority,
flexibility, and guidelines for her office. The legislation
provides flexibility in regard to the use of outside financial
consultants and investment in inflation-protected bonds,
and sets new limitations on the contents of the investment
portfolio. The changes affect the management of the assets
of the Local Governmental Employees Retirement System,
the Local Government Other Post-Employment Benefits
Fund, the Local Government Law Enforcement Special
Page 8 of 11
Separation Allowance Fund, and the Firemen's and Rescue
Squad Workers' Pension Fund.
Local Gov’t Employees Retirement System Cost of
Living Adjustment (COLA) - HB 934: NOT PASSED.
The fate of a proposed 1% COLA for local government
retirees was connected to HB 934, which did not advance.
Ultimately the LGERS Board of Trustees acted to provide a
0.1% COLA for local government retirees under existing
statutory authority.
TRANSPORTATION
Road Construction and Maintenance Funding
Transferring Road Maintenance Costs to Municipalities:
NOT PASSED; FUTURE ISSUE. The League was
successful in halting legislation to transfer road maintenance
to municipalities (Edition 1 of HB 881/SB 1001). Note that
HB 881 was enacted in a different form, without the road
transfer provisions. The issue has not gone away, as DOT
searches for solutions to its road funding shortfall. The
League staff is closely involved in a DOT working group to
address various issues, including this one.
Equity Formula Study Commission - SB 635: NOT
PASSED, but a study by the Joint Legislative Transportation
Oversight Committee was authorized in the final studies bill.
Street Construction/Developer Responsibility - SB 761:
PASSED SENATE; STILL ELIGIBLE. Would restrict
authority of cities to require developers to build
transportation infrastructure improvements to offset the
traffic impact of new developments. Bill sponsor agreed to
work with the League to develop a bill that is sensitive to the
needs of cities to prevent traffic system backlogs.
Transportation Corridor Mapping - HB 881 (SL2009332): ENACTED. Authorizes DOT to make some corridor
mapping changes, and enables DOT to sell road maintenance
materials to cities on a cost reimbursement basis (primarily
salt).
UTILITIES
Utilities/Regulation of Pole Attachments – SB 357
(SL 2009-278): ENACTED. Establishes a process for
negotiating nondiscriminatory rates to be paid by
communications providers to cities for the use of utility
poles. If the two sides are unable to reach an agreement, the
NC Business Court is authorized to resolve the fee dispute.
M - Utilities/Collectors/Debt Collection – HB 1330
(SL 2009-302): ENACTED. Codifies common law
limitations imposed on utility debt collection for public
utilities, electric co-ops, telephone companies, counties, and
cities.
Page 9 of 11
Ellis Hankins, League Executive Director, wishes to thank and congratulate the members of our League Government
Affairs team for their excellent work during the 2009 legislative session, under the leadership of Kelli Kukura, Director of
Governmental Affairs. They represented our membership well, on a long list of complicated and controversial issues.
S. Ellis Hankins
Executive Director
GOVERNMENT AFFAIRS
Kelli H. Kukura
Director of Governmental Affairs
LEGAL DEPARTMENT
Kelli Kukura
Director of Governmental Affairs
(919) 715-3942
Andy Romanet
General Counsel
(919) 715-3935
Karl Knapp
Director of Research and Policy Analysis
(919) 715-9678
Kim Hibbard
Associate General Counsel
(919) 715-3936
Paul Meyer
Chief Legislative Counsel
(919) 715-3930
John Phelps
Senior Assistant General Counsel
(919) 715-3920
Chris Nida
Research Analyst
(919) 715-3945
Gregg Schwitzgebel
Senior Assistant General Counsel
(919) 715-3937
Jennifer Webb
Grassroots Coordinator / Legislative Assistant
(919) 715-1726
Erin Wynia
Policy Analyst
(919) 715-4126
Page 10 of 11
STUDY COMMITTEES AND COMMISSIONS
The budget bill, SB 202 (SL 2009-451), authorizes the Senate and House Finance Committees and other designees to
study and recommend legislation to reform the state’s sales and income tax structure to broaden the base and lower the
tax rates.
The Studies Act of 2009 – HB 945 (ratified; on Governor’s desk) also authorizes study of numerous issues.
The following select issues are included and may be studied in the interim.
Potential Legislative Research Commission Studies
Youth violence
Tax credits for installation of innovative, low-impact
stormwater management systems
Gasoline shortages
Sanitary district laws
Mountain resources
Transfer of development rights
State-funded regional economic development
programs
Use of 911 funds
High-speed internet in underserved urban areas and
rural areas
Broadband use
Potential Revenue Laws Study Commission studies
Municipal Broadband -- local government owned and
operated communication services
Effect on local government of property tax relief
programs and exemptions
Effects on state revenues of tax incentives,
exemptions, credits, refunds, and exclusions
Incentives for renewable energy and energy
conservation
Tax treatment of government retiree benefits
Potential Joint Legislative Transportation Oversight
Committee Studies
Transportation funding distribution formula
Potential Joint Legislative Elections Oversight
Committee Studies
Filling vacancies in local offices
Constitutionality of state laws on campaign
contributions
Potential Environmental Review Commission Studies
Interbasin and intrabasin netting of water withdrawals
and discharges
Continue study of water allocation issues identified by
2008 Water Allocation Study
Consolidating the state's environmental policymaking,
rulemaking, and quasi-judicial functions into one
commission
Impacts of cement plants
Alternative energy use by government
Sustainable growth
Disclosure of coastal hazards
Recycling of fluorescent lights and mercurycontaining products
Local ordinances banning clotheslines
Green building code
State Environmental Policy Act document
requirements
Use and storage of reclaimed water
Accelerating remediation of contaminated industrial
and commercial sites
Potential Joint Legislative Utility Review Committee
Studies
Siting of wind energy facilities
Applying pesticides to rights-of-way
Potential Department of Environment and Natural
Resources Studies
Use of temporary erosion control structures on
shorelines
Mitigating impact of erosion-threatened structures on
public beach
Legislative Study Commission on Water and
Wastewater Infrastructure (New Commission – includes
representative of the League)
Identify statewide water and wastewater infrastructure
needs
Improve delivery of existing state water and
wastewater funding programs
Needs of small towns whose rates exceed the highunit-cost threshold
Recommend changes to infrastructure funding
priorities
Capacity and role of the state in bridging gaps
between funding priorities and available funds
Potential Department of Agriculture Studies
Land application of septage and sludge/health and
environmental effects
Page 11 of 11