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Lucy T. Allen

A Strong Representative for a Great District

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Lucy


Review of "Long Session" 2007


N. C. Legislature

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Tax Credits and Other Changes in Tax Laws for 2007 & 2008

This session, the General Assembly came up with several ways to cut taxes for the people of North Carolina without sacrificing the quality of our public services.  Some of these changes will benefit you this tax season, while others can’t be claimed until next year. I hope this information is of use to you as the deadline for tax filing approaches. 

Individual Income Taxes 

Earned Income Tax Credit 

We created a 3.5 percent refundable earned income tax credit. This tax credit would lower the tax burden for many of the working people who earn about $40,000 or less. And because it’s refundable, they may get tax refunds they may not have otherwise received. North Carolinian taxpayers who are eligible for the federal earned income tax credit are eligible for the state credit. This tax credit will become effective for the 2008 taxable year. 

Upper-Income Tax Bracket 

Legislators allowed a temporary income tax increase put in place during the economic downturn of 2001 to expire. The change meant that married couples filing jointly with an income over $200,000 were taxed at 8.25 percent, a half-percent higher than the previous level.  This change will be effective for the 2008 tax year and returns the rate to 7.75 percent. 

Long-term Care Insurance Tax Credit 

The General Assembly approved a $7 million a year tax credit for families that purchase long-term care insurance. This tax credit allows a credit of 15 percent of the premiums paid for long-term care insurance during the taxable year and is limited to taxpayers earning less than $100,000 for a married couple.  Up to $350 is allowed for each long-term care insurance contract.  Please note that this tax credit became effective in 2007 and can be claimed in returns filed this spring. 

Adoption Expenses Tax Credit 

This year we created a tax credit to benefit those who adopt a child.  Taxpayers who are eligible for the federal tax credit for adoption expenses are also eligible for the state tax credit.  The state tax credit is equal to 50 percent of the federal tax credit and has a maximum amount of $5,695.  This tax credit also became effective in 2007 and can be claimed in returns filed this spring.

Nonprofits and Renewable Energy Property

Legislators approved a credit for individuals and businesses that make donations to tax-exempt charitable organizations so that the organization can invest in renewable energy property.  Taxpayers must choose between claiming this credit or taking a deduction for the charitable contribution.  This tax credit will be effective for the 2008 taxable year. 

Volunteer Firefighter and Rescue Squad Workers 

My colleagues and I approved a $250 tax deduction for volunteer firefighters and rescue squad workers who attend 36 hours of drills, training, or meetings during a year.  This tax credit is effective for the 2007 tax year and can be claimed in returns filed this year. 

Sales Tax

Sales Tax Holiday

North Carolinians benefit from a sales tax holiday each year in the first weekend in August.  Previously the sales tax holiday applied to school items that cost less than $100.  This year the General Assembly increased the cap to $300 because some college textbooks cost more than $100.  This cap increase will become effective for the sales tax holiday in 2008.

Farmers and Manufacturers

The General Assembly approved a phase-out of the sales tax on piped natural gas, electricity, and other fuels (excluding motor fuel) sold to farmers and manufacturers.  The taxes will be phased out over the next three years.

Property Taxes

Property Tax Homestead Exclusion

The property tax homestead exclusion helps low-income disabled and elderly people keep their homes.  Under previous law, $20,000 or 50 percent (whichever amount is greater) of the value of the homestead was excluded from taxation.  This session we increased that amount to $25,000 or 50 percent of the homestead.  We also increased the income eligibility limit of the program to $25,000.  It was previously capped at $20,500.  These changes will become effective for the 2008 tax year.

Property Tax Homestead Circuit Breaker

This year we created a property tax homestead circuit breaker program so that the amount of tax paid on a homestead does not exceed a fixed percentage of the taxpayer’s income.  Any taxes on the homestead that exceed the applicable percentage are deferred and become a lien on the property.  This program will make more people eligible for some form of property tax relief because the income eligibility limits are 50 percent more than the limits for the property homestead tax exclusion.  It will be effective for the 2009 tax year.

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Local Authorities Granted in District 49

One of the best attributes of our system of government is the sharing of authority. This enables us to better respond to citizens’ needs on all levels.  While state government must address statewide issues, local governments are better equipped to deal with many issues that North Carolinians face daily. By working together, state and local governments make North Carolina a stronger state. This past session, we made several changes that will allow local governments to better address local issues. Together, we will do our best to represent your interests and concerns.

Localities in our district received the following authorities through legislation I sponsored at their request:

  • Giving Louisburg additional economic development authority

  •  Giving Lake Royale Police authority to participate in multi-agency drug task force activities

  • Giving Franklinton authority to change to the council-manager form of government

  •  Exempting Roanoke Rapids and Weldon from the statutory limits on annexation

  • Extending the authority for Louisburg to deal with unsafe buildings.

Budget

With too many counties across our state struggling with rising expenses related to Medicaid, the state agreed to a plan this year to permanently relieve them of this burden – an estimated $500 million this fiscal year -- over the next three years. Our plan will free up money in the counties for school construction and other costs of local government while helping to keep property taxes down in your communities. This approach represents a major shift in how the state of North Carolina does business and it protects small counties and those with an inordinate number of Medicaid recipients from the escalating costs of health care. Every county will end up with at least $500,000 more than they would have had otherwise.

Pensions and Personnel

The General Assembly passed a law to establish the Local Government Post-Employment Benefits Fund. Local governments may contribute to the fund and then use money from the fund to pay post-employment benefits later. The bill (SB 580) also establishes a similar Local Government Law Enforcement Special Separation Allowance Fund and authorizes local governments to create irrevocable trusts for these purposes.  The funds will be managed by the state treasurer.

Legislators passed a bill (HB 671) that grants leaves of absence for elected or appointed state officials who are called to active military duty and permits cities and counties to select temporary officials to be appointed during their absences. 

Safety

Local governments can adopt ordinances regulating demonstrations on state roads and highways. The ordinances can regulate the time, place, and manner of gatherings, picket lines, and protests.

 We passed a bill (HB 189) that allows counties to authorize cities to issue pyrotechnics permits.  Pyrotechnics is the science behind chemical reactions that operate numerous items like fireworks, safety matches, and airbags.

Building Codes and Regulations

Municipalities can now adopt and enforce ordinances to establish a nonresidential building or structure code.  Legislators passed a bill (SB 556) allowing counties and cities to pass such ordinances if a structure does not meet minimum standards of maintenance, sanitation and safety established by the governing body. These standards involve conditions that are dangerous and jeopardize the occupants or public health, safety and welfare.

We passed a bill (SB 581) to allow counties and cities to lower building permit fees or offer partial rebates to encourage the design and construction of energy efficient buildings.  These lower fees and rebates can also be applied to existing buildings that are renovated to improve energy efficiency.  They are available to buildings that meet or exceed LEED standards, One Globe or higher under the Green Globes program standards, or a certification that meets or exceeds these standards.

Another bill (HB 1595) authorizes counties and cities to acquire, construct, convey or lease a building suitable for industrial or commercial use.

Transportation

A new law (SB 1513) now allows counties to help build roads. Under our previous law, the state and cities alone had responsibility for roads. Now, counties can buy land or right of ways for roads or build and maintain them if they choose to. Under the new law, cities can accept money from the Highway Fund or Highway Trust Fund or have some or all of their allocation reprogrammed to fund a project from the Department of Transportation’s Transportation Improvement List. 

First Responders

The General Assembly passed a bill (HB 767) that will allows fire, rescue, and EMS personnel to drive all-terrain vehicles on certain public highways.

Legislators passed a bill (HB 1321) that grants weight and size limit exemptions to state and local firefighting agencies transporting overweight and oversized vehicles (up to 90,000 pounds, 12 feet wide and 75 feet long) being used to respond to forest fires, wildfires, or other emergencies or disasters.

Health

We passed a bill (HB 24) to protect the public from health risks associated with second hand smoke as recommended by the Justus-Warren Heart Disease and Stroke Prevention Task Force. Cities and counties can regulate and restrict smoking in buildings and vehicles owned, leased or operated by local government.

Notes

A new law (HB 514) allows local governments to use single-vehicle passenger buses with an overall length of 45 feet or less on public streets or highways unless it poses a risk to the passengers or the public.

My colleagues and I passed a bill (HB 1060) that authorizes counties and cities to donate unused, obsolete or surplus property to another governmental unit in the United States, a sister city or nonprofit organizations incorporated by the United States.

Local governments can now purchase from federal contractors.  A new law (SB 211) allows local governments to purchase from federal contractors if the contractor is willing to provide goods or services at the same or more favorable prices, terms, and conditions as those in the federal contract.

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Strengthening Our Higher Education System

In a fast growing state, we must make decisions that improve the economic security of our citizens and promote continued prosperity for our children.  Since we know that increased educational attainment leads to higher salaries and a thriving economy, this session we focused on preparing our young people for the workforce. To do this, we strengthened our higher education system by including more money for scholarships, adding programs to encourage high school students to attend college and building facilities that will make sure our institutions of higher learning continue to be among the best in the world. 

Financial Aid 

This session my colleagues and I helped create the Education Access Rewards North Carolina, or EARN, Scholars program by setting aside $127 million for it over the next two years. This program will give more North Carolinians access to higher education by providing $4,000 grants each year to the 25,000 community college and University of North Carolina system students with the greatest financial need. All North Carolinians with family incomes of less than 200 percent of the federal poverty level are eligible for the program. We are extremely proud of this program because if makes the dream of attending school, from pre-kindergarten all the way through college, a reality for all of our citizens. Students can now focus on their studies without worrying about finding money to pay for college and will be able to graduate with a bachelor's degree without any debt.    

We increased access to our world-class universities by increasing financial aid in the UNC system by nearly $28 million and setting aside another $8.6 million for state scholarships and grants. We also enhanced our "529" college savings fund by allowing more people to contribute more money each year to the tax-free accounts.      

Learn & Earn  

We set aside $2.4 million to expand the Learn & Earn program and increased funding for the online component of the program by $11.5 million. Learn & Earn allows high school students to earn college credits while they are still in high school. High school students can even earn an associate's degree online, from their high school, or at a local community college. The program is free and allows students to prepare for college or work with no more than an extra year of high school - at no additional cost.  

Salaries 

We gave university and community college faculty and professional staff a 5 percent pay raise so that we can attract the best educators for our students.   

Facilities 

As our state and our university system continue to grow, we need more buildings and new programs to provide the level of service expected of one of the nation's premier institutions of higher learning. Below are some of the highlights of our expansion of the 16-campus university system. 

  • East Carolina University: We appropriated $25 million to plan and operate a new dental school at ECU, which will have up to ten clinics serving patients in underserved areas of eastern North Carolina. ECU plans to heavily recruit students from rural areas and will encourage students to practice in those areas. The dental school is set to open by 2010 at the earliest.
     
  • Elizabeth City State University:  ECSU will receive $2 million for the new 45,000-square-foot School of Education Building. Another $500,000 has been set aside for the new School of Aviation Complex.
     
  • North Carolina Central University:  We gave the law school at NCCU $2.5 million to help them comply with American Bar Association recommendations. The school is seeing a rapid enrollment increase and ABA officials worried that the school may have to cut support staff jobs if it lost federal grant money. Last year the school depended on federal grants for about 30 percent of its budget. This money will help the school handle the enrollment increase, protect employees and make sure students get the services they need.  NCCU also received $2.5 million for the 65,000-square-foot School of Nursing building.
     
  • North Carolina State University:  NCSU received $17 million to plan and build the James B. Hunt Library on Centennial Campus.
     
  • University of North Carolina - Chapel Hill:  UNC-Chapel Hill received $25 million for a 215,000-square-foot addition to the School of Dentistry.  An additional $8 million has been set aside for the 275,000-square-foot Biomedical Research Imaging Center.
     
  • University of North Carolina - Charlotte: Making North Carolina a leader in energy efficiency was one of our main goals this session. We set aside $19 million to plan and build the Energy Production Infrastructure Center at UNC-Charlotte. Students at the center will learn how to make better and more efficient power plants. 
     
  • Winston Salem State University: WSSU will receive $3.3 million to plan a new Science and General Office Building.
     
  • Nanoscience and Nanoengineering Building: We appropriated $5 million for the Joint Graduate School of Nanoscience and Nanoengineering Building at the Millennium Campus in Greensboro. The 95,000-square- foot facility will be jointly operated by North Carolina A&T State University and the University of North Carolina-Greensboro. N.C. A&T will also receive $5.3 million for a new classroom and instructional building. UNCG will receive $2.5 million for a new education building.

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Protecting Our Land, Air, and Water

One of the bright spots of this session is the success we had in protecting our land, air, and water. It was one of the goals we had coming into the year and by many accounts we had a landmark session in this regard.

  • We established stronger rules to govern the construction of landfills in our state, which will protect our communities and prevent North Carolina from becoming a dumping ground for other states.
  • We permanently banned the construction of new hog lagoons and continued to put money into finding safer, cleaner, and more affordable alternatives for farmers who operate existing lagoons.
  • We also authorized $100 million in bonds for the Land for Tomorrow preservation program to protect valuable land from being developed and an additional $20 million to preserve beach access.
  • We gave the Clean Water Management Trust Fund $100 million to protect our waters and will hand out $100 million in grants to help communities replace their aging water and sewer systems. 

I am proud to have served as the Chairman of the House Environment and Natural Resources Committee this Session, allowing me to play a key role in implementing important environmental legislation. 

Investments in these projects and others will protect the natural resources that have made North Carolina such a desirable place to live. They will also ensure that we continue to enjoy the quality of life we have now, even as our population continues to grow.  

We also made several changes to improve and strengthen the state's energy policies. These changes will reduce our dependence on foreign oil, strengthen the local market for alternative energy and save us all money over time. I will share some of those new policies with you in more detail another time. 

Land  

We strengthened regulations for the construction of landfills this session, requiring companies to prove they have adequate funding to maintain, close, and provide post-closure maintenance for a landfill.

Several companies planned to build landfills in North Carolina before legislators put a moratorium on such projects. The companies were attracted to the state because of its inexpensive land, its central location on the East Coast and its lack of a surcharge on garbage.

The bill that has been signed into law (SB 1492) allows the state to collect $2 a ton for garbage disposal. Half of the money will be used to assess and update more than 700 old landfills and dumps that operated before the state adopted environmental protection standards. The other half will go to local governments and the Solid Waste Management Trust Fund to help pay for recycling and other solid waste management issues.

The bill also creates an efficient and enforceable computer collection and recovery system and allows the state to reject a landfill permit based on what impact the facility will have on poor or minority communities. This change in the law will probably prevent the planned construction of several large landfills in the state while a companion bill allows those companies to recover their planning costs. 

The state's Land for Tomorrow Initiative will get $120 million in bond money to protect our forests, parks and greenways, historic areas, wildlife sanctuaries, and stream borders from development. The Land for Tomorrow partnership is made up of people and organizations throughout the state that are trying to help the state preserve one million acres in the next five years.

The Division of Marine Fisheries will get $20 million of the money to help preserve beach access. The Farmland Preservation Trust Fund will get an additional $8 million to protect farms from development, which is critical since we are losing farmland at the fastest rate in the nation. The pressure to develop land in the state has grown increasingly as the state's population grows and there is a need for more housing and commercial development. Also, some farmers leaving the industry feel forced to sell their property because of high land costs. This $128 million will help them and help make sure the state has healthy development.  

Air  

For the first time since 1991, we increased the maximum penalty for air quality violations from $10,000 to $25,000. This increase put North Carolina in line with other Southern states and moves us closer to the federal maximum fine for air quality violations of $32,500. In a separate matter, we set aside $500,000 to install pollution controls on diesel school buses. 

Water  

A new law allows existing hog waste lagoons to continue to operate, but bans the construction of new ones. Hog lagoons became an environmental concern in the past decade as the number of swine farms grew. The pits, where the hogs' waste is collected and then sprayed on fields as fertilizer, breached their banks during hurricanes or heavy rains, polluting waterways and soil. The state has had a moratorium on new lagoons for the past 10 years, but replacing them with new, cleaner technology is expensive.

The bill (SB 1465) signed into law proposes a $2 million per year cost-sharing program to help farmers pay the cost of replacing the pits with more environmentally friendly systems. The new systems could produce useful byproducts such as compost or electricity from the methane gas released. The law includes a provision that permits up to 50 swine farms to join a pilot program that will allow farmers to sell methane gas to power companies. The bill is supported by environmental, farm, and industry groups and represents a major step forward after years of trying to find better ways to handle hog waste. The deal protects farmers' investments and livelihoods while also keeping the state's water and soil clean. 

The state improved the process for transferring water from one water basin to another by requiring more public hearings, a study of the environmental impact of the transfer, and granting the Environmental Management Commission authority to appoint a mediator to settle differences between applicants and other parties. The bill (HB 820) has passed both chambers and awaits the signature of Gov. Easley. We also hired seven new sediment and erosion control inspectors to help with North Carolina's top water quality problem -- sediment. We set aside $615,000 for private well testing, notification, and emergency drinking water supplies for low income residents with contaminated drinking water. 

Miscellany  

Other environmental legislation and spending approved this session include:  

Banning the use of oyster shells in landscaping or highway beautification. The change came after it was discovered that the state Department of Transportation used the coveted shells for landscaping projects along some highways, not aware that old shells provide the best habitat for young oysters. The state has already banned shells from landfills. North Carolina oyster stocks have dropped about 90 percent since 1900. Oyster stocks are considered an important indicator of water quality. They help filter water along the coast and their numbers decline when the water or their habitat is unhealthy. 

$1 million to establish the NC Green Business Fund to provide grants to small private businesses, nonprofits, and state agencies working to develop an environmentally sound economy. The grants will be focused on developing a biofuels industry and a "green" building industry and leveraging investment in clean technologies and renewable energy. 

Strengthening and clarifying the law that requires businesses that hold on-premise alcohol licenses to recycle beverage containers.

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Seeking Renewable Energy, Alternative Fuels, & Fuel Conservation

As our state and nation grow, the amount of energy we consume grows with it. The fuels we traditionally use to power our homes and offices are finite, however. To support the tremendous growth we expect in North Carolina over the next 20 years, we have to work now to make better use of renewable energy, find alternative fuels, and to find more and better ways to conserve energy. My colleagues and I in the General Assembly made several important improvements in that area this past session.

We became the first state in the Southeast to set a renewable energy standard for power companies. We resolved to cut energy use in state buildings and we agreed to make it more affordable for people to use and produce biofuels and bioenergy.

In the years ahead, these types of initiatives will become increasingly important to maintaining our strong economy and our quality of life.

Thank you for your support in these efforts and I hope you will contact me if you have any questions or concerns.

Renewable Energy

North Carolina took a major step forward this year in improving the state's environmental policy by establishing a requirement that North Carolina power utilities get at least 12.5 percent of their power from renewable sources -- such as wind, water and solar energy - in order to increase energy efficiency by 2021. A utility could meet the standard, for example, by getting 10 percent of its energy from windmills and showing that it has improved the efficiency of its customers by 2.5 percent. The bill (SB 3) is expected to help cut pollution and our dependence on foreign oil while also creating more of a market for renewable energy. North Carolina is the first state in the Southeast to adopt such a standard, and it came after months of negotiations between lawmakers, utility company representatives, and environmentalists. Gov. Easley signed the bill into law last week.

Our budget ensures the future of the State Energy Office, the state's lead agency for energy programs and services, by appropriating nearly $2.7 million from the general fund for operating costs. Nearly $2 million of the money will be used for a utility savings initiative and to support the operation of energy centers at North Carolina State University, North Carolina A&T State University, and Appalachian State University. The state also gave the office $5 million for a reserve fund to support energy efficiency in state buildings.

Conservation

The state continues to try to be a model for responsible energy use, and a bill we approved this year backs up our commitment. The bill (SB 668) requires existing state buildings to reduce energy consumption 20 percent by 2010 and 30 percent by 2015, based on 2003-04 levels. New buildings are designed and constructed to use 30 percent less energy. It also requires state agencies and institutions to file annual energy management plans, strategies, and reports on consumption.

Bioenergy

We showed our support for alternative energy sources this year by expanding a bioenergy initiative at North Carolina State University. The $1.5 million in additional money will help researchers find new technologies for efficient and clean use of traditional energy sources; alternative, environmentally safe, and renewable energy sources; and research of energy technologies and their impact on the North Carolina's rural economy. The Southeastern Energy Field Laboratory in Duplin County will be the focal point of much of the work and will also serve as a demonstration site for bioenergy, wind, thermal, and solar projects.

A new law prevents municipalities or neighborhood associations from banning the use of solar panels. The panels use the heat of the sun to produce energy. They are sometimes banned because they are considered unsightly, but a bill (SB 670) signed into law last month prohibits outright bans while still allowing reasonable rules about where the panels can be located.

Fuel

Biodiesel fuel produced by individuals for their personal use in private vehicles is no longer subject to the motor fuel excise tax under a bill (SB 1272) that we approved. Such fuel is sometimes made from discarded cooking oil or similar products and supporters of the measure argued that the materials should not be taxed twice.

School buses that use diesel fuel must be able to operate with B20, fuel that contains at least 20 percent of biodiesel. The bill (SB 1452) also requires that beginning June 1, 2008, at least 2 percent of the fuel purchased annually by local school districts for school buses must be a minimum blend of B20. Another bill (SB 1277) requires that new state-owned vehicles that run on diesel fuel must carry a warranty that assures they are capable of running on B20.

As part of the state budget, we improved the tax credit we have given since 2004 to companies that build renewable fuel production plants. The changes allow more flexibility in the credits and are expected to attract more such plants to the state.

Miscellaneous

Developers in five cities who take significant energy conservation measures in their building projects will now be eligible for incentives such as higher density allowances. The cities are Asheville, Carrboro, Chapel Hill, Charlotte and Wilmington.  

Counties and cities can now reduce building permit fees or give partial rebates to encourage construction of buildings designed to conserve energy.

The North Carolina Building Code Council has been given authority to study how much hot water lines should be insulated to achieve greater energy efficiency and will amend the North Carolina State Building Code if necessary.  The council has until April 2008 to report its findings to the state Environmental Review Commission and the General Assembly.

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Helping Our First Responders 

We rely on first responders to help us with everyday problems and protect us during emergencies and disasters. They are often on the frontline and risk their lives to keep us safe. My colleagues and I are thankful for all of the sacrifices our first responders and their families make for all of us as they serve. This session we made several improvements to help our police, sheriffs, firefighters, EMS personnel and other first responders. 

Budget

Our budget contained several items that will benefit first responders. The General Assembly set aside $250,000 for training and equipment for seven HAZMAT Regional Response Teams. More than $364,500 will be used to expand the State Fire Marshal's staff.  We will spend $293,500 to increase the benefits in the Fireman's and Rescue Squad Worker's Pension Fund from $165 to $167 per month for retirees and we added a $250 tax credit for volunteer firefighters. The Office of Emergency Medical Services will receive a $101,800 from a grant from the Duke Endowment to establish two new positions that will help improve EMS in North Carolina.

Hazardous Waste

The General Assembly passed a bill that will protect residents who live close to hazardous waste facilities and help first responders serving in those areas. The bill (HB 36) requires owners of hazardous waste facilities to send critical information to all emergency response agencies serving the area in which the facility is located at least 120 days before applying for a permit.  This includes information on the locations and properties of hazardous waste within the facility and what the facility expects each emergency response agency to do in the event of an emergency. The emergency response agencies must then tell the owners if they are equipped to effectively meet those expectations and if the facility has adequate plans to handle emergencies.

Anyone who applies for a permit to open a hazardous waste facility must notify every person who lives or owns property within a quarter of a mile of the facility that there is an application on file within 10 days. Businesses that have received a permit must give residents a description of the facility, the hazardous waste processed there, and the emergency response plan for the facility once a year. The owners or operators of a hazardous waste facility also must provide 24 hour security and surveillance of the facility seven days a week.

The bill also establishes a task force that will allow state and local fire inspectors to identify risks associated with hazardous materials.

If hazardous material is released and State Medical Assistance Teams or the Epidemiology Section of the Department of Health and Human Services is activated, the business that is responsible for the release is liable for costs incurred by the personnel that respond to the incident.

Immigration

The NC Sheriff's Association will receive $750,000 to better coordinate their efforts with those of the U.S Immigration and Customs Enforcement office. The new program will enhance communication and cooperation between federal, state, and local officers who then work together to find and deport illegal aliens. This funding will pay for technical training and travel expenses for officers who will take part in the program.

Firefighter Immunity

My colleagues and I passed a bill (HB 552) that grants local trustees of the Firefighter's Relief Fund immunity from civil liability when they are acting within the scope of their official duties and did not incur the liability from the operation of a motor vehicle.

Firefighter's Relief Fund

We passed a bill (HB 833) to rename the Firemen's Relief Fund the Firefighter's Relief Fund to recognize all of the female firefighters who risk their lives and serve to protect North Carolinians.

Emergency Vehicles

Legislators passed a bill (HB 1321) that grants weight and size limit exemptions to state and local firefighting agencies transporting overweight and oversized vehicles (up to 90,000 pounds, 12 feet wide and 75 feet long) being used to respond to forest fires, wildfires, or other emergencies or disasters.

Criminal Background Checks

The Emergency Medical Service Disciplinary Committee now has the authority to review criminal background information of EMS personnel.  A bill (HB 535) authorizes the Committee to use criminal background information to make recommendations involving EMS credentials and disciplinary action.

Another bill (HB 1322) gives local fire chiefs, county fire marshals and local EMS directors the authority to directly ask the federal Department of Justice for criminal histories of applicants.

Granite Quarry and Faith Police

The towns of Granite Quarry and Faith will now be able to better protect residents.  A bill (HB 925) gives the towns the authority to establish a joint police authority to protect both towns.

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Addressing Our Transportation Needs

We are taking new steps to improve roads and the transportation system in North Carolina.

The 24-member 21st Century Transportation Committee has been asked to examine the condition and needs of North Carolina’s transportation system and to make a preliminary report to the General Assembly by May 1, 2008. A final report is due by the end of next year.The work of this committee will help us refine and improve the way we build and maintain roads in this state. We can then approach our transportation system with a full understanding of the problem areas and a clear set of priorities.

Road Construction

We passed a new law (HB 610) this year that increases the number of design-build projects the department can build within a year. These projects streamline the building process by allowing a single contractor to design and build a project. This process is intended to save both time and money by reducing duplication and shortening the time and effort needed to advertise and evaluate bids. Previously, the state allowed DOT to award contracts for only 10 such projects a year. Now, we will allow them to handle up to 25 design-build projects a year.

A new law (SB 1513) now allows counties to help build roads. Under our previous law, the state and cities alone had responsibility for roads. As a result, North Carolina has one of the largest state road systems in the nation – about 79,000 miles. Now, counties can buy land or right of ways for roads or build and maintain them if they choose to.

Studies and Reports

This past session House Bill 802 gave the Department of Transportation authority to conduct two pilot studies – one to contract private agencies to handle litter removal from highways and another to provide motorists with real-time travel information. If these studies work out, the department will be able to focus more on its core mission – building and maintaining roads.

We also passed a law (SB 830) requiring DOT to establish performance standards and to report back to lawmakers every two years about where they are toward meeting those standards.

Red-light cameras

The General Assembly passed a new law this session (HB 1228) that allows some municipalities to operate red-light programs and charge $75 a ticket instead of $50. The change was needed after the courts ruled that municipalities had to give schools 90 percent of the proceeds generated by the cameras, as the law requires. Increasing the cost of the tickets gives the communities money to operate the cameras and still satisfies the law.

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Decreasing the Rate of Mortgage Foreclosures

Most of us have heard about the increased number of home mortgage foreclosures and how they affect our economy, interest rates and home prices. Home foreclosures have far reaching affects in every area of North Carolina. Home owners who are forced to foreclose damage their credit and lose valuable home equity. This hurts all of us. This session my colleagues and I passed laws that we believe will decrease the rate of mortgage foreclosures and help our citizens acquire and maintain secure housing without sacrificing their financial security. 

Foreclosures in North Carolina 

In 1998, 16,630 homeowners filed for home mortgage foreclosure in North Carolina.  In 2006, that number increased to 46,510 foreclosures. By the end of August this year, 32,300 homeowners had filed for foreclosure in North Carolina and experts are predicting this will be a record year in the state for home foreclosures.   

Many people are forced to foreclose because of a death in the family, unemployment, divorce or some unexpected event. Sometimes people do not have enough equity to refinance or cannot sell their houses for enough profit to pay all their debts. In other cases, people take out loans but simply cannot make the payments because they have a low income or credit issues. 

Too many foreclosures in an area can hurt property values. Areas that offer only low-cost entry-level homes are at a risk for excessive foreclosures. While we would like to encourage homeownership, no one should take on the responsibility of owning a home without being aware of the all of the costs. Homeownership education halves the chances of foreclosure. I encourage borrowers to do extensive research into every aspect of the mortgage process before taking out a home loan. 

Predatory Lending

We passed a bill to protect North Carolinians from predatory mortgage lending and to improve the writing of loans. The bill (HB 1817) limits broker fees, protects borrowers from some of the dangers of adjustable rate mortgage loans and clarifies mortgage broker duties. Lenders are required to determine that the homeowner can repay the loan. The law also prohibits prepayment penalties and expressly gives the Commissioner of Banks the authority to create rules to protect the borrowing public.

Mortgage Fraud

Another new law defines and punishes residential mortgage fraud in North Carolina. The bill (HB 817) makes it a felony to knowingly misrepresent or exclude information in the mortgage lending process even if the victim is not harmed financially. Offenders can be sentenced to up to 16 months if they have no prior record and up to 31 months if they are linked to at least five cases of fraud with no prior record. Mortgage fraud was illegal under previous laws, but it was covered by general fraud law. That law required stolen property to be valued at a minimum of $100,000 before the offender would face substantial punishment. The changes make it easier to protect people who were cheated out of lesser amounts.   

Reducing Foreclosures 

Loan servicers are now required to tell homeowners about fees charged on the loan and provide full details about how payments are handled and fees are calculated. The bill (HB 1374) protects borrowers from mortgage loan servicing companies that mishandle escrow accounts on home loans, charge illegal fees or misapply mortgage payments. The new law makes the foreclosure process fairer and requires servicers to give homeowners better information about their rights in foreclosures.   

Protect Tenants

The General Assembly ratified a law that will help protect renters who live in property lost to foreclosures. The bill (HB 947) states that tenants must receive 30 days notice of an application for foreclosure. Tenants can then give the landlord 10 days written notice to terminate the rental agreement.

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Reducing Gang Activity

Gang violence is a serious issue in our region and in our state. Young people sometimes join gangs to gain a sense of discipline, organization or protection that they may not have in other areas of their lives. Others join gangs to feel a connection to a “family” group, to get money or simply because they enjoy the excitement of such a dangerous lifestyle. Young people who feel they lack socioeconomic opportunities, do not have sufficient supervision and guidance from caring adults or have friends in gangs may be at-risk for gang activity. 

Keeping kids in school and providing environments where they can feel safe are crucial to reducing the number of young people involved in gangs. This past session, along with initiatives focusing on dropout prevention, we passed legislation in the House that would reduce gangs and gang violence by increasing the criminal penalties for gang activity and promoting prevention, intervention and rehabilitation programs in our schools and communities. That legislation (HB 274) is still pending in the Senate. 

Gangs in North Carolina 

Gang activity, gang membership and gang-related crime in North Carolina have increased in the past 10 years. The General Assembly has instructed the Governor’s Crime Commission to study patterns of gang activity and the structures of street gangs. The Governor’s Crime Commission has recently found 400 gangs with more than 5,000 members in North Carolina. 

The House Select Committee on Street Gang Prevention 

The House Select Committee on Street Gang Prevention appointed by Speaker Joe Hackney will identify the extent of the gang presence in North Carolina; examine patterns of criminal gang activity and the organized nature of street gangs; consider ways, including increased criminal penalties, to prevent gang violence; identify strategies for establishing effective prosecutions for gang activity; evaluate successful anti-gang programs in North Carolina and other states; consider the impact of gangs in the state’s corrections system and study any other issue it deems relevant.  Members of the committee are Rep. Michaux (Chair), Rep. Alma Adams, Rep. Dan Blue, Rep. Debbie Clary, Rep. Nelson Cole, Rep. Tricia Cotham, Rep. Jim Crawford, Rep. William Current, Rep. Margaret Dickson, Rep. Beverly Earle, Rep. Phillip Frye, Rep. Earl Jones, Rep. Marian McLawhorn and Rep. Tracy Walker. 

Gang Prevention Grants 

Earlier this year the Governor’s Crime Commission distributed $1.5 million in grants to 19 communities to help law enforcement reduce and prevent gang activity in their communities. Communities with gang activity that had not previously received funding were given priority.  The following areas received grants: Cabarrus County, $100,000; Chatham County, $99,000; Dunn, $99,870; Duplin County, $74,970; Edgecombe County, $68,470; Goldsboro, $98,140; Harnett County, $75,660; City of Henderson, $85,290; Henderson County, $99,080; Iredell County, $90,870; Kinston, $100,000; LaGrange, $65,980; Lenoir County, $60,000; New Bern, $96,620; Rockingham County, $75,000; Rocky Mount, $22,720; Tarboro, $36,850; Wayne County, $74,060; and Wilson, $86,590.  

This session we approved $4.8 million in grants that will be awarded to government agencies and community groups working on gang violence prevention, intervention and suppression. Thirty-four counties have been selected as potential recipients of funds because of the high degree of gang activity in their communities. Grant applications from these counties will be considered first. These counties are: Alamance, Bertie, Buncombe, Catawaba, Chatham, Cumberland, Davidson, Durham, Forsyth, Gaston, Gates, Guilford, Harnett, Iredell, Johnston, Mecklenburg, Montgomery, Nash, New Hanover, Onslow, Orange, Pasquotank, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Rowan, Sampson, Union, Vance, Warren, and Wake. Organizations receiving funds must supplement state funds with a 25 percent local match. In addition, 75 percent of the grant should be dedicated to gang prevention and intervention. The remaining 25 percent will be dedicated to gang suppression. 

Drug and Violent Crime Agents 

We set aside $303,200 to create three sworn agent positions at the State Bureau of Investigation to investigate drug, violent crime, and gang-related cases. 

Training School Resource Officers 

Legislators appropriated $88,100 to create a staff position under the Department of Justice to develop and administer standard school safety and gang prevention programs for school resource officers.

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Making Our Roads Safer

We passed legislation designed to protect drivers and other people who use our roads. Last year more than 1,500 people were killed on North Carolina roads, many because of drunken driving. These new laws will help us save lives.

If you would like more information about these laws or any of the 45 new laws that went into effect on December 1, 2007, please visit the General Assembly’s Web site at www.ncleg.net.

Alcohol Inhalers

A new statute (SB 125) makes it unlawful for anyone to manufacture, sell or possess an alcohol vaporizing device. The devices are used to mix ethyl alcohol with gases to produce an alcoholic vapor people can inhale or snort. This is more dangerous than drinking alcohol because the alcohol goes directly to the bloodstream.

Alcohol Monitoring

Convicted drunken drivers will be allowed to wear alcohol-monitoring ankle bracelets instead of serving jail time under a bill (SB 1290) ratified this session. The bracelets cost $12 per day, some of which will be paid by the convicted drivers. Supporters say some counties may be willing to bear the cost since the bracelets would keep drunken drivers off the road and be less expensive than jail.

Underage Drinking

The General Assembly ratified and Governor Easley signed a law that will help decrease underage drinking and drunken driving. The bill (SB 999) gives courts the authority to take custody of juveniles charged with underage drinking or driving while impaired and considered to be a danger to others.

Lawmakers passed a new law (HB 1277) to punish people who give alcohol to anyone under age 21. Under the law, anyone who gives or helps purchase alcohol for an underage person will have their driver’s license revoked.

Motorcyclists

We passed a bill (SB 1359) that will allow motorcyclists to go through red lights if the signal doesn’t turn green within three minutes. The law requires riders to come to a complete stop at the intersection. Motorcycles are sometimes not heavy enough to trip the weight sensors in the road that cause a traffic signal to change. A motorcyclist can drive through the intersection after three minutes if there are no pedestrians or approaching vehicles. This law was created to protect motorcyclists forced to wait at intersections late at night.

School Buses and Drivers

Anyone who strikes a person while a school bus is stopped will be guilty of a Class I felony, even if the victim is not seriously harmed. The new law (SB 924) is intended to protect children as they get on and off of school buses.  It also requires the buses to be painted yellow.

It is now unlawful for a school bus driver to talk on a cell phone or similar device while transporting students.  Under the new law (HB 183), bus drivers caught talking on cell phones can be charged with a misdemeanor and will have to pay a fine of at least $100, even if they are using a hands-free set.

Speeding

Another new law (SB 925) will make it more difficult for speeding motorists to plead down to a lesser charge.  Now, drivers speeding at more than 25 mph over the posted speed limit cannot claim that their speedometer was broken. These speeders will also be ineligible for a disposition of prayer for judgment continued. Under the terms of a prayer for judgment, a person is adjudicated guilty by the court, but no judgment is entered and no punishment is imposed unless there is a subsequent violation within a specified period of time. 

Please remember that you can visit the General Assembly’s website at www.ncleg.net to look up bills, view lawmaker biographies and access other information.

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Making Things Better for Farmers and Agribusiness

Agriculture has always been an integral part of North Carolina’s history and culture and though its financial impact has lessened, it remains one of the largest sectors of our economy. In the General Assembly, we constantly look for ideas to make things better for our farms and farm businesses and this year was no different. We made changes that will cut taxes and invested in our agricultural centers. We also agreed to study some issues of importance to agribusiness and hope the studies will help us come up with better ways of doing business. 

Taxes 

We adopted provisions this past session to phase-out the sales tax on electricity, excise tax on piped natural gas, and privilege tax on other fuels used by manufacturers and farmers. The estimated savings from this change are $14 million this fiscal year, increasing to $42 million by the third year. Also, a new law (HB 487) now exempts farmers from the sales and use tax on baler twine.  Farmers are already exempt from sales and use taxes on fertilizer, mulch, seeds, farm machinery and fuels other than electricity. 

Vehicles 

We passed a law (SB 738) to exempt vehicles used to spread seed, fertilizer, or other agricultural products from motor vehicle registration requirements. The law also applies to vehicles used to transport fertilizer as long as the vehicle cannot travel at over 35 miles per hour and is not operated outside of a 50-mile radius of the supply source.   

Agricultural Fairs 

State law now limits civil liability for fair workers dealing with agritourism activities.  Agritourism professionals will not be held liable for the injury or death of participants unless they are negligent or do not warn participants of the inherent dangers associated with the activity of animals. The law (HB 590) also adds some licensed agricultural fairs and other animal exhibitions to the list of approved agritourism activities. These activities may be on a farm or ranch for the general public and may be educational, recreational, or for entertainment purposes.   

Hog Lagoons

A new law allows existing hog waste lagoons to continue to operate, but bans the construction of new ones. Hog lagoons became an environmental concern in the past decade as the number of swine farms grew. The state has had a moratorium on new lagoons for the past ten years, but replacing them with new, cleaner technology is expensive. The bill (SB 1465) offers a $2 million a year cost-sharing program to help defray the costs of replacing the pits with more environmentally friendly systems. The new systems could produce useful by-products such as compost or methane gas that can help generate electricity. The law includes a provision that allows up to 50 swine farms to join a pilot program that will allow farmers to sell methane gas to power companies. This way we can protect farmers’ investments and livelihoods while also keeping our water and soil clean.

Studies

The Performance Evaluation Division of the General Assembly will conduct a study on the structure and management practices of the agricultural research stations and research farms owned by North Carolina State University or the Department of Agriculture and Consumer Services.  The division will study the efficiency of the research stations and farms and determine if it would be better to consolidate or transfer them to another state department.

We set aside $500,000 to study the equine industry in North Carolina.  The Agricultural Advancement Consortium will conduct the study. The study will also focus on maximizing economic opportunities in the equine industry in North Carolina.

Budget 

Legislators gave the Agricultural Development and Farmland Preservation Trust Fund $8 million.  These funds will be used to prevent the loss of farmlands and protect our natural resources and environments. 

Biofuels Center 

This session we created the Biofuels Center of North Carolina to help implement our Strategic Plan for Biofuels Leadership.  This plan, with the aid of the Biofuels Cente,r will encourage research and identify new crops that can be converted into biofuel.  It will also encourage the development of organic raw materials in rural areas and help us get federal funding for our biofuels programs.  We set aside $5 million to get the program moving.  We are confident that this program will help create new green businesses and train people to work in those fields.   

Food and Drug Protection 

The General Assembly has appropriated $400,000 to buy laboratory equipment to manage food safety and security issues. 

We also set aside $269,000 to replace federal funding lost from the USDA Food Safety aid Inspection Services. 

Legislators also appropriated $50,000 to replace 52 laptop computers used in the federal FAIM program for meat inspectors.  The federal government will match these funds at 50 percent. 

Marketing 

 We set aside $250,000 for agriculture marketing initiatives. Some of these programs help low-income farmers who market their products directly to consumers to enroll in the federal Food and Nutrition Service Food Stamp Program at the farmers’ markets.  We will use $50,000 of the money to promote agriculture festivals in small communities.

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Helping Citizens with Disabilities

According to the American Association of People with Disabilities, there are more than 50 million Americans with disabilities. Legislators understand that we must ensure that the disabled are respected as much as any other citizen in our state. This session we passed laws to help people with disabilities in a number of ways, including providing money for much needed programs and passing laws to protect the disabled.

Housing

The Housing Trust Fund will receive $7.5 million to provide additional independent and supportive living apartments for low-income people with disabilities. The fund also assists low-income disabled people with necessary repairs and renovations. These repairs and renovations make the homes handicapped-accessible and provide services for those with mental illnesses.  An additional $8 million has been set aside to pay for the operational costs of these apartments.

Money for the new apartments is part of the Housing 400 Initiative the General Assembly launched in 2005 to create independent and supportive apartments affordable for low-income disabled people.

High-Risk Insurance Pool

This session the General Assembly also ratified a bill (HB 265) that will create a high risk insurance pool to help those who suffer from serious or terminal illnesses. These people are often considered uninsurable or are forced to pay expensive premiums because of their illness. This pool will make sure they get the affordable insurance they deserve and ultimately receive the preventative care they need to stay healthy.

Safety

We passed a law during this session that will increase penalties for harming disabled patients in health care facilities. The law (HB 554) makes it a felony to cause bodily injury to a patient or resident of a health care or residential care facility.

Disability History and Awareness Month

October will be recognized as Disability History and Awareness Month in North Carolina.  Under a new law (SB 753), school boards will provide instruction during this month on disabilities, people with disabilities, and the disability rights movement.

Health Care Facilities

Community health centers and groups are on the frontline of the battle to keep our people strong.  These facilities often assist those who are disabled and cannot afford private care.  This session’s budget includes $5 million for rural health centers, free clinics, and school-based clinics.

Disability Benefits

A new law (HB 1415) allows people in the state retirement system to receive 65 percent of their salary for up to three years if they suffer a long-term disability. After three years, the benefit will continue if the person receives Social Security benefits.

Services for the Deaf and Blind

We made some changes to the Communication Services Assistive Equipment Loan Program provided by the Division of Services for the Deaf and Hard of Hearing. Under the new law, the division will expand the types of communication and alerting equipment available for those who qualify for the program. The division will also train people to use the equipment. All public safety offices and health care facilities must have telecommunications devices that are equivalent to those on loan.

My colleagues and I have set aside $75,000 so that we can provide accessible electronic information services for the blind and disabled.

We set aside $1.1 million for new positions in the Division of Services for the Blind.  This money will pay for three additional counselors and a technology instructor to train people in the use of assistive technology and devices.

The Division of Services for the Blind will also receive $400,000 to increase the eligibility level for the Vocational Rehabilitation Program. We set aside another $400,000 to increase the eligibility level for the Medical Eye Care Program.  The eligibility level for both programs has now been increased to 125 percent of the federal poverty level. 

Legislators set aside $150,000 for a grant-in-aid to Prevent Blindness North Carolina.  This money will be used to expand the Pre-K Vision Screening Program.

The Division of Deaf and Hard of Hearing will receive $123,000 for two Community Development Specialists and an Interpreter Services Consultant. 

Studies

The Department of Health and Human Services with the Department of Public Instruction will study the service delivery model for deaf and blind students. The study will focus on training needs of staff members, access to assistive technology, curriculum content and special needs resulting from any additional disabilities.

Schools for the Deaf and Blind

Legislators appropriated $249,000 for two behavior programming technicians at the Eastern NC School for the Deaf and the Governor Morehead School for the Blind. These technicians will help with the North Carolina Positive Behavior Support Program.

The General Assembly has set aside $458,300 for Beginnings, Inc. to provide family support for children who are deaf or hard of hearing.

Our budget also includes $159,000 to add three student life services positions at the Governor Morehead School for the Blind.

We appropriated $164,000 for school resource officers at the Eastern NC School for the Deaf and the NC School for the Deaf in Morganton.

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Creating Opportunity in Education, Economic Development, and Health Care

One of the most important things we try to do in government is create opportunity. We do that in a number of ways - education, economic development and health care among them. During this past session, my colleagues and I worked together to pass a number of new laws and to approve new spending that will give hundreds of thousands of people in this state more opportunity. These changes will allow children who aren't fortunate enough to be born into wealthy families a better chance to succeed. They will also help adults who find themselves in difficult circumstances work their way to prosperity.

Education

We set aside $17.5 million for the Disadvantaged Student Supplemental Fund. 

Legislators also appropriated $2 million for the Child Welfare Post-Secondary Support Program to help students aging out of foster care. This money will help pay for a college education for those students who choose to attend a public institution of higher learning in North Carolina.  

My colleagues and I set aside $5 million to help children with disabilities.  

Our schools received $37.5 million to lower the student/teacher ratio to 18:1 in K-3 classrooms.  

Small county schools that have experienced a decline in the average number of enrolled students since 2001 will receive $2.1 million. This money will be used to lower the teacher/student ration in grades K-12.

We set aside $5.4 million for school systems that will receive less Low Wealth Counties Supplemental Funding in 2007. This additional money will restore 75 percent of the system's decrease in Low Wealth Counties Supplemental Funding.

This session my colleagues and I helped create the Education Access Rewards North Carolina, or EARN, Scholars program by setting aside $127 million for it over the next two years. This program will give more North Carolinians access to higher education by providing $4,000 grants each year to the 25,000 community college and University of North Carolina system students with the greatest financial need. All North Carolinians with family incomes of less than 200 percent of the federal poverty level are eligible for the program.  

The General Assembly has set aside $475,000 to expand the Male Minority Mentoring program. The program focuses on increasing the graduation and retention rates of minority males at our community colleges through mentoring, retreats, community service and counseling and other personal growth opportunities. It will now be implemented at 15 additional community colleges.

Health

This session we set aside $1 million to be distributed to the food banks in our state.  

The Community-Focused Eliminating Health Disparities Initiative will receive $500,000. This money will be used to fund grants for public health departments, faith and community based organizations, and American Indian tribes. The programs focus on eliminating health disparities in minority groups through preventative measures and will focus on issues such as infant mortality, HIV-AIDS and other sexually transmitted infections, cancer, and diabetes.  

We set aside $862,000 to expand Medicaid coverage for foster care adolescents under the Federal Foster Care Independence Act.

Development

The Land Loss Prevention program will receive $350,000 to provide legal representation to poor small farmers and rural landowners in underserved tobacco dependent communities.  

The North Carolina Community Development initiative will receive $3 million to provide grants, loans, administration, and technical assistance for community development projects throughout the state.

We set aside $1.5 million for the North Carolina Institute of Minority Economic Development. The institute focuses on developing underused sectors of the state economy and strengthening the economic power and stability of underrepresented North Carolinians.  

The General Assembly appropriated $3 million to the North Carolina Minority Support Center. This money will be used to help low-income/wealth individuals and communities build credit and obtain assets through minority community development credit unions in North Carolina.

Economy

This year we set aside $48.3 million to provide for a 3.4 percent refundable earned income tax credit. This tax credit would lower the tax burden for many of the working people who earn about $40,000 or less. We also set aside $50,000 for the Earned Income Tax Credit Carolinas Initiative.  This initiative provides free tax preparation for low income taxpayers.

Legislators set aside $3 million for a workers opportunity credit as an add-on to the federal credit as an incentive to businesses that hire disadvantaged workers. Disadvantaged workers include those who are coming off some sort of public assistance, convicted felons and other groups that find it particularly difficult to find and keep a job.

We set aside $1.7 million to provide for a 2.2 percent cost of living increase for retirees of the Teachers' State Employees' retirement system.  We also approved a 5 percent raise for teachers and a 4 percent raise for state employees and community college personnel.

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Helping Those with Issues of Mental Health, Developmental Disabilities and Substance Abuse

As legislators, my colleagues and I are public servants dedicated to representing North Carolinians in the General Assembly. We are proud of our efforts to help and protect those who need it the most. This session we appropriated funds and created laws to help people with mental health, developmental disabilities and substance abuse problems. Our budget includes more than $711 million for mental health support. We also passed a bill for mental health parity and improved standards for homebound instruction for children with disabilities.

The Division of Mental Health, Developmental Disabilities and Substance Abuse Services has several ongoing construction projects, including Central Regional Hospital, a Detox Unit at Julian F. Keith Alcohol and Drug Abuse Treatment Center, and another Detox Unit at the R. J. Blackley Alcohol and Drug Abuse Treatment Center. 

Legislation 

A new law (HB 627) strengthens the Mental Health, Developmental Disabilities, and Substance Abuse Services System by clarifying the functions of local management entities and the rule making authority of the Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services. 

Mental Health Parity 

My colleagues and I passed a new law (HB 973) that provides insurance parity to people who receive mental health services. Mental health parity has been debated in the legislature for 15 years and we are proud we can finally do more to help mental health patients get the treatment they need.  Under the new law, insurance companies are required to cover bipolar disorder, major depressive disorder, obsessive compulsive disorder, post-traumatic stress disorder, anorexia nervosa, bulimia, and three other mental illnesses the same way they treat and cover physical illnesses.  All other mental health conditions must be covered for up to 30 inpatient/outpatient days and 30 office visits. 

Housing 

A new law directs the Department of Health and Human Services to study rules and regulations for housing patients with mental illnesses in the same areas as patients without mental illnesses.  The law (SB 164) also directs the department to develop staff training requirements for direct care workers working with mentally ill patients in adult care homes. 

Homebound Instruction 

My colleagues and I passed a law (HB 14) to help disabled students. Local school districts can assign a student to be home schooled if the student’s IEP team finds homebound instruction to be the least restrictive alternative environment for the student.  The IEP team will determine the type of instruction the student should receive and will evaluate the appropriateness of the methods used monthly.  

Services 

The Department of Health and Human Services will develop a graduated co-payment fee schedule to be used by local management entities and contractual provider agencies when determining the amount a client can pay out of pocket for services.  The new law (HB 628) states that services with the co-payment will be available to families with an income 300 percent or greater of the family poverty level. 

Facilities

Legislators passed a law (HB 625) to more appropriately identify our state institutions as psychiatric hospitals, developmental centers, alcohol and drug treatment centers, and residential programs for children. It also renames the special care centers that care for elderly mental health patients as neuro-medical treatment centers. 

We authorized the Secretary of the Department of Health and Human Services to suspend admissions to health care facilities that are considered dangerous to the health and safety of patients.  Under the new law (HB 772) the facility can contest the decision within 20 days after the department mails the notice.  The department must also provide consultation to assist the facility in correcting health and safety issues. This law also allows the Division of Health Service Regulation to waive rules pertaining to hospitals during emergencies. It also allows private entities to do the required state criminal background check for potential mental health facility employees. 

A new law (HB 554) increases the penalty for assaulting a patient in a health care facility.  It is now a Class H felony to assault a resident of a residential or health care facility if the assault shows a pattern of behavior that is negligent or causes bodily injury to the resident.  Another law (HB 1294) prohibits smoking in long term care facilities.

State Funding 

We appropriated $426,600 to provide mental health services for returning veterans.  The money will be used to expand the North Carolina Health Information Portal, provide for a health program manager position and to train care providers to deal with the mental health and substance abuse needs of returning vets. 

Our budget also includes $1.4 million to provide for 14 drug treatment court positions.  This money will replace expiring federal and county grant funds for positions in drug treatment courts in nine districts and a state level drug treatment court administrative position. 

We set aside $239,800 to treat drug and alcohol addiction. This funding will be used to provide 10 more contract beds to house chemically dependent male inmates who are undergoing intensive treatment for drug and alcohol abuse and addiction.

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Last Updated November 5, 2008.
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