The Daily Bulletin: 2016-05-05

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The Daily Bulletin: 2016-05-05

PUBLIC/HOUSE BILLS
H 1046 (2015-2016) CONSTITUTIONAL AMENDMENT/UP MINIMUM WAGE. Filed May 5 2016, AN ACT AMENDING THE NORTH CAROLINA CONSTITUTION TO SET THE STATE MINIMUM WAGE AND PROVIDE FOR AUTOMATIC COST-OF-LIVING ADJUSTMENTS.

Subject to voter approval at the statewide election on November 8, 2016, adds new Section 38 to Article 1 of the North Carolina Constitution, which provides the following.  

Includes a statement about minimum wage and establishes that employers cannot pay employees wages less than the minimum wage for all hours worked in North Carolina.  Establishes that, effective January 1, 2017, the state minimum wage will be established at an hourly rate of $9.00.

Directs that, on September 30, 2017, and on each following September 30, the Commissioner of Labor will calculate an adjusted minimum wage rate using the consumer price index (all urban consumers, US city average for all items), CPI-U, or its successor index, as calculated by the US Department of Labor for the 12-month period preceding the previous September 1. Requires that each adjusted minimum wage rate calculated be published on September 30 and take effect on the following January 1.

Establishes that it is unlawful for an employer or any other party to discriminate in any manner or take adverse action against any person in retaliation for exercising rights protected under the amendment. Provides that rights protected under the amendment include, but are not limited to, the right to file a complaint or inform any person about any party's alleged noncompliance with the amendment and the right to inform any person of his or her potential rights under the amendment and to assist him or her in asserting those rights.  Provides that any person aggrieved by a violation of the amendment may bring a civil action against an employer or person violating the amendment and, upon prevailing, can recover the full amount of any back wages unlawfully withheld, plus the same amount as liquidated damages; can be awarded reasonable attorneys' fees and costs; and are entitled to appropriate legal or equitable relief, including, without limitation, reinstatement in employment and/or injunctive relief.  Establishes that any employer or other person found liable for willfully violating the amendment will also be subject to a fine payable to the state in the amount of $1,000 for each violation.  

Authorizes the Attorney General or other official designated by the General Assembly to bring a civil action to enforce the amendment, subject to a statute of limitations of four years or, in the case of willful violations, five years.  Provides that actions brought by the Attorney General may be brought as a class action pursuant to the North Carolina Rules of Civil Procedure. Provides that implementing legislation is not required in order to enforce the amendment.  Authorizes the General Assembly, by statute, or the North Carolina Department of Labor, by rule, to adopt any measures appropriate for the implementation of the amendment. Authorizes the General Assembly to, by statute, establish additional remedies or fines for violations of the amendment, raise the applicable minimum wage rate, reduce the tip credit, or extend coverage of the minimum wage to employers or employees not covered by the amendment.

Specifies that the amendment provides for payment of a minimum wage and is not to be construed to preempt or otherwise limit the authority of the General Assembly or any other public body to adopt or enforce any other law, rule, regulation, requirement, policy, or standard that provides for payment of higher or supplemental wages or benefits, or that extends those protections to employers or employees not covered by the amendment.

Provides a statement that it is intended that case law, administrative interpretations, and other guiding standards developed under the federal Fair Labor Standards Act (FLSA) are to guide the construction of the amendment and any implementing statutes or regulations.

Directs that the terms employer, employee, and wage as used in the amendment are to have the meanings established under the federal Fair Labor Standards Act (FLSA) and its implementing regulations.

Subject to voter approval of the amendment, amends GS 95-25.3(a). Current law provides that every employer must pay each employee who in any workweek performs any work, wages of at least $6.15 per hour or the minimum wage set out in section 6(a) of the FLSA, as that wage may change from time to time, whichever is higher, except otherwise as provided in this section. Makes conforming changes to the wage amount in GS 95-25.3(a).  In addition, establishes that for tipped employees meeting eligibility requirements for the tip credit under the FLSA, employers can credit toward satisfaction of the minimum wage tips up to the amount of the allowable FLSA tip credit in 2003.

Intro. by Cunningham.CONST, GS 95
H 1047 (2015-2016) WELFARE REFORM/FOOD AND NUTRITION BENEFITS. Filed May 5 2016, AN ACT TO REQUIRE THE NORTH CAROLINA LOTTERY COMMISSION TO PROVIDE CERTAIN CASH LOTTERY WINNINGS INFORMATION TO THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, DIVISION OF SOCIAL SERVICES; TO CROSS CHECK WITH THE INFORMATION OF APPLICANTS FOR OR RECIPIENTS OF FOOD AND NUTRITION BENEFITS; TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE EXTENT TO WHICH NORTH CAROLINA CAN DISQUALIFY LOTTERY WINNERS FROM RECEIPT OF FOOD AND NUTRITION BENEFITS; AND TO IMPLEMENT CERTAIN DISQUALIFICATION PERIODS FOR NONCOMPLIANCE WITH WORK REQUIREMENTS FOR FOOD AND NUTRITION BENEFITS.

Amends GS 18C-114(a) concerning the powers and duties of the NC State Lottery Commission (Commission), now allowing the Commission to provide specified information to the Department of Health and Human Services (DHHS), Division of Social Services (Division), regarding persons claiming cash prizes of $600 or more.

Enacts new GS 18C-176, which requires the Commission to report the name, prize amount, and other available identifying information of a person claiming a cash prize of $600 or more to the Division to crosscheck such information with applicants for or recipients of food and nutrition benefits. Requires the report of such information on at least a monthly basis. 

Enacts new GS 108A-52.1, directing DHHS to review the information received above at least on a monthly basis and crosscheck it with applicants for or recipients of food and nutrition benefits. Establishes procedures and processes for when an applicant or recipient hasn't reported correctly excess winnings above that amount allowed for the resource limit for food and nutrition services. Allows DHHS to conduct a further review concerning fraudulent misrepresentation. Provides that information submitted to DHHS from the Commission is confidential. 

Amends GS 108A-52 to add new subsection (b), which provides that DHHS cannot grant categorical eligibility for the food and nutrition services program based off of noncash, in-kind, or other benefit.

Enacts new GS 108A-52.2, Disqualification for noncompliance with requirements for food and nutrition benefits, setting out disqualification periods ranging from a three-month full household disqualification to an outright permanent disqualification for three instances of noncompliance with requirements for food and nutrition benefits. Allows noncompliance in other federal, state, or local means-tested assistance programs to also qualifyfor the above disqualification. Authorizes the Social Services Commission to adopt rules to implement this section.

Requires the Commission to begin providing the information required by this act one month after it becomes effective. 

Provides that savings resulting from this act can be reallocated to DHHS for individual autistic services. 

Effective six months after bill becomes law. 

Intro. by Jones, Blackwell, Hager.GS 18C, GS 108A
H 1048 (2015-2016) REDUCE BARRIERS TO IMPROVE NC HEALTH & SAFETY. Filed May 5 2016, AN ACT TO INCREASE ACCESS TO ABUSE-DETERRENT OPIOID ANALGESICS AND TO ENSURE THE PROPER ADMINISTRATION OF STEP THERAPY PROTOCOLS FOR PRESCRIPTION DRUGS, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON STEP THERAPY.

Includes various whereas clauses concerning opioid-related deaths and health concerns in North Carolina. 

Enacts new GS 58-3-295 concerning coverage for abuse-deterrent opioid analgesics. Sets out and defines abuse-deterrent opioid analgesic drug product, health benefit plan, and opioid for use in this statute. Further provides that health benefit plans that provide coverage for abuse-deterrent opioid analgesic drug products can impose a prior authorization requirement only if the health benefit plan imposes the same prior authorization requirement for each opioid analgesic drug product without an abuse-deterrence labeling claim. Prohibits a health benefit plan covering abuse-deterrent opiod analgesic drug products from requiring the use of an opioid analgesic drug product without an abuse-deterrence labeling claim before authorizing the use of an abuse-deterent opioid analgesic drug product.

Enacts new GS Chapter 58, Article 50, Part 8, Administration of Step Therapy Protocols, setting out the following five terms and definitions for use in the Article: clinical practice guidelines, clinical review criteria, step therapy override determination, step therapy protocol, and utilization review organization. Requires clinical review criteria used to establish step therapy protocol to be based on clinical practice guidelines that meet the five specified requirements. Defines step therapy protocol as a protocol or program that establishes the specific sequence in which prescription drugs for a specified medical condition are medically appropriate for a particular patient and are covered by an insurer or health plan. Requires that the patient and prescribing practitioner have access to a clear and convenient process for requesting a step therapy override determination when coverage for a prescription drug is restricted for use by a health benefit plan or utilization review organization through the use of a step therapy protocol. Sets out four conditions under which a step therapy override determination request must be expeditiously granted. Requires that when an override determination is granted, the health plan or utilization review organization authorize coverage for the prescribed drug if it is a covered prescription.

Effective October 1, 2016, and applies to health benefit contracts issued, renewed, or amended on or after that date.

Intro. by Lewis, Jackson, Murphy, Dobson.GS 58
H 1049 (2015-2016) FUND NBPTS CERTIFICATION. Filed May 5 2016, AN ACT TO FUND NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS CERTIFICATION FOR CERTAIN TEACHERS AT LOW-PERFORMING SCHOOLS.

Requires the Department of Public Instruction (DPI) to establish a program to support National Board for Professional Teaching Standards (NBPTS) certification for certain teachers at low-performing schools. Requires DPI to select up to 75 teachers from low-performing schools to receive a grant covering the certification application fee. Criteria for selecting recipients must include a requirement that the teacher agree to remain at the teacher's current school or continue teaching at another low-performing school in the state for at least three years from the date of receiving the grant. Requires DPI to recruit experienced teachers who are already certified by NBPTS to mentor and provide quality provisional development service to the selected teachers.

Appropriates $500,000 for 2016-17 from the General Fund to the Department of Public Instruction to provide the cost of the application fees and to compensate the teachers serving as mentors.

Effective July 1, 2016. 

Intro. by K. Hall, Blackwell, L. Johnson.APPROP
H 1050 (2015-2016) DOT/NO DISCRIMINATION AGAINST MOTORCYCLISTS. Filed May 5 2016, AN ACT TO PROHIBIT THE DEPARTMENT OF TRANSPORTATION FROM DISCRIMINATING AGAINST MOTORCYCLISTS WHEN TAKING CERTAIN ACTIONS.

Amends Article 2 of GS Chapter 36 by enacting new GS 136-18.06 prohibiting the Department of Transportation (DOT) from taking any action that discriminates, or has the effect of discriminating, against a motorcyclist. Defines action as formulating transportation policy, adopting rules, allocating funds, and planning, designing, constructing, equipping, operating, and maintaining transportation facilities. Also defines discriminates, and motorcyclist as they apply in the statute. Directs DOT, and any other owner or operator of a transportation facility funded in whole or in part by state or local funds, to make reasonable accommodations, as defined by the statute, for motorcycle parking at transportation facilities. Clarifies that nothing in the statute is be construed as requiring the structural or technological modification of parking structures constructed or substantially completed on or before July 1, 2016. Clarifies that nothing in this section is to be construed as altering or superseding any state or federal law that prohibits or imposes a requirement, or has the effect of prohibiting or imposing a requirement, that applies only to a motorcyclist.

Appropriates $10,000 from the Highway Fund to the Department of Transportation, in nonrecurring funds, for the 2016-17 fiscal year to fund costs incurred as a result of implementing this act.

Effective July 1, 2016.

Intro. by Torbett.APPROP

The Daily Bulletin: 2016-05-05

PUBLIC/SENATE BILLS
S 817 (2015-2016) CONST. AMD. - MAX. INCOME TAX RATE OF 5.5%. Filed May 5 2016, AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO PROVIDE THAT THE MAXIMUM TAX RATE ON INCOMES CANNOT EXCEED FIVE AND ONE-HALF PERCENT.

Subject to approval by voters at the statewide election on November 8, 2016, amends Section 2 to Article V of the North Carolina Constitution by capping the rate on incomes at 5.5% (currently capped at 10%). If approved, effective for taxable years beginning on or after January 1, 2017.

Intro. by Rucho, Rabon, Tillman.CONST
S 818 (2015-2016) INCREASE THE ZERO TAX BRACKET. Filed May 5 2016, AN ACT TO INCREASE THE STANDARD DEDUCTION AMOUNTS OVER TWO YEARS.

Amends GS 105-153.5(a) concerning the deduction a taxpayer may deduct from their adjusted gross income in calculating North Carolina taxable income.  Specifically, increases each standard deduction amount for all taxpayers who are eligible for a standard deduction under section 63 of the Internal Revenue Code, based on status, as follows: for married, filing jointly/surviving spouse the standard deduction is $17,500 (was, $15,500); for head of household the standard deduction is $14,000 (was, $12,400); for single the standard deduction is $8,750 (was, $7,750); and for married, filing separately the standard deduction is $8,750 (was, $7,750).  

Effective for taxable years beginning on or after January 1, 2016.

Intro. by Rucho, Rabon, Tillman.GS 105
S 819 (2015-2016) MILITARY STATE INCOME TAX RELIEF. Filed May 5 2016, AN ACT TO PROVIDE INCOME TAX RELIEF FOR MEMBERS OF THE ARMED FORCES OF THE UNITED STATES WHO ARE NORTH CAROLINA RESIDENTS BUT STATIONED OUTSIDE OF THE STATE.

Amends GS 105-153.4(a), defining North Carolina taxable income, to exclude from the definition the military pay of an active service member of any branch of the Armed Forces of the United States for any period of time the service member is not present in the state if the service member is a North Carolina resident and the service member is not present in the state solely in compliance with military orders reassigning the service member to a permanent duty station located outside of the state.

Effective for taxable years beginning on or after January 1, 2016.

Intro. by Krawiec, Rabin.GS 105

The Daily Bulletin: 2016-05-05

The Daily Bulletin: 2016-05-05

ACTIONS ON BILLS

Actions on Bills: 2016-05-05

PUBLIC BILLS

H 982: CONFIRM ROBERT SCHURMEIER/SBI DIRECTOR.

    Ratified
    Ch. Res 2016-4

H 1030: 2016 APPROPRIATIONS ACT.

    House: Passed 1st Reading
    House: Ref to the Com on Finance, if favorable, Appropriations

H 1031: SPECIAL FUND/HELP EDUCATORS WITH LOAN PAYMENT.

    House: Passed 1st Reading
    House: Ref to the Com on Education - Universities, if favorable, Appropriations

H 1032: ONLINE VOTER REGISTRATION.

    House: Passed 1st Reading
    House: Ref To Com On Elections

H 1033: ID CARD FEE WAIVER/DISABILITY.

    House: Passed 1st Reading
    House: Ref To Com On Finance

H 1034: RESTORE SENIOR CITIZEN TUITION WAIVER.

    House: Passed 1st Reading
    House: Ref To Com On Education - Community Colleges

H 1035: LGC/TRAINING FOR LOCAL GOV'T FINANCE OFFICERS.

    House: Passed 1st Reading
    House: Ref To Com On Local Government

H 1036: STATE IT CONTRACTS/CONTRACTOR LIABILITY.

    House: Passed 1st Reading
    House: Ref To Com On Judiciary I

H 1038: LOTTERY - JLOC RECOMMENDATIONS.

    House: Passed 1st Reading
    House: Ref To Com On Appropriations

H 1040: STUDY COSTS ASSOCIATED WITH NC PRE-K SLOTS.

    House: Passed 1st Reading
    House: Ref To Com On Health

H 1041: DESIGNATE STATE CIO AS SECRETARY OF DEPT.

    House: Passed 1st Reading
    House: Ref To Com On Rules, Calendar, and Operations of the House

H 1042: REQUIRE DISCLOSURE OF ALL CANDIDATE DONATIONS.

    House: Passed 1st Reading
    House: Ref To Com On Elections

H 1043: ZIP LINE AND CHALL. COURSE SAFETY/SANDERS' LAW (New).

    House: Passed 1st Reading
    House: Ref to the Com on Judiciary III, if favorable, Finance
    House: Passed 1st Reading
    House: Ref to the Com on Judiciary III, if favorable, Finance

H 1044: LAW ENFORCEMENT OMNIBUS BILL.

    House: Passed 1st Reading
    House: Ref To Com On Appropriations

H 1046: CONSTITUTIONAL AMENDMENT/UP MINIMUM WAGE.

    House: Filed

H 1047: WELFARE REFORM/FOOD AND NUTRITION BENEFITS.

    House: Filed

H 1048: REDUCE BARRIERS TO IMPROVE NC HEALTH & SAFETY.

    House: Filed

H 1049: FUND NBPTS CERTIFICATION.

    House: Filed

H 1050: DOT/NO DISCRIMINATION AGAINST MOTORCYCLISTS.

    House: Filed

S 725: UNEMPLOYMENT INSURANCE TECHNICAL CHANGES.

    House: Passed 3rd Reading
    House: Ordered Enrolled

S 726: IRC UPDATE.

    House: Regular Message Sent To Senate
    Senate: Regular Message Received For Concurrence in H Amend
    Senate: Placed On Cal For 05/10/2016

S 729: VARIOUS CHANGES TO THE REVENUE LAWS.

    House: Passed 3rd Reading
    House: Ordered Enrolled

S 812: FERRY TOLLING/REPLACEMENT FUNDS.

    Senate: Passed 1st Reading
    Senate: Ref to Transportation. If fav, re-ref to Appropriations/Base Budget

S 813: DISAPPROVE GROUNDWATER RULES.

    Senate: Passed 1st Reading
    Senate: Ref To Com On Rules and Operations of the Senate

S 814: DESIGNATE STATE CIO AS SECRETARY OF DEPT.

    Senate: Passed 1st Reading
    Senate: Ref To Com On Rules and Operations of the Senate

S 815: CHARTER SCHOOL IN STATE HEALTH PLAN.

    Senate: Passed 1st Reading
    Senate: Ref To Com On Insurance

S 816: RAISE TEACHER PAY.

    Senate: Passed 1st Reading
    Senate: Ref To Com On Appropriations/Base Budget

S 817: CONST. AMD. - MAX. INCOME TAX RATE OF 5.5%.

    Senate: Filed

S 818: INCREASE THE ZERO TAX BRACKET.

    Senate: Filed

S 819: MILITARY STATE INCOME TAX RELIEF.

    Senate: Filed

Actions on Bills: 2016-05-05

LOCAL BILLS

H 1037: LINCOLNTON AIRPORT/DAVIE COR. CENT (NEW).

    House: Passed 1st Reading
    House: Ref To Com On Local Government
    House: Passed 1st Reading
    House: Ref To Com On Local Government

H 1039: SAMPSON/HARNETT/YADKIN OT CHANGES (NEW).

    House: Passed 1st Reading
    House: Ref To Com On Finance
    House: Passed 1st Reading
    House: Ref To Com On Finance

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