Institute for Legislative Analysis

Eddie D. Settle

This bill legalizes sports betting. Under the bill, North Carolina would join neighboring states Tennessee and Virginia which have legalized sports gambling. The bill imposes a 18% tax on gross wagering revenue, with some of the revenue utilized for addiction treatment. Support is the Limited Government Position as individuals - not bureaucrats - should have decision rights over how to utilize the fruits of their labor - even when it comes to risky endeavors such as betting. Not only does this measure provide desperately needed property tax relief which will make housing more affordable, but it also helps eliminate the financial fraud and other significant societal harms that the current black market in gambling presents to North Carolinians.

Strengthening Individual Liberties and Growing the Tax Base by Legalizing Sports Betting.

This bill amends the required language for ballot questions to approve bonds (debt). Under the bill, the language must now include language such as "additional property taxes may be levied on property," as well as the estimated total cost and the increase in property taxes per $100,000 of property tax value. The bill also requires the Local Government Commission to include similar information in an order approving bonds, which must be posted online. Support is the Limited Government Position as this bill helps protect taxpayers from growing debt due to unsound fiscal policies by local governments by ensuring voters are informed of the costs associated with the bonds.

Increasing Transparency of Bond Referendums by Requiring Disclosure of Potential Property Tax Increases.

This motion overrides the Governor's veto of a bill which increases the maximum allowable interest rate sellers may charge on a consumer credit installment sale contract. The bill eliminates an incremental scale based on the amount financed, allows a maximum of 24% if the amount financed is under $3,000, and 21% if over $3,000. If the purchase if for a vehicle, the maximum rate varies depending on the age of the vehicle, with the maximum rate increased to 30% for vehicles 6 years and older. Support is the Limited Government Position as the free-market - not government price controls - is the best mechanism to ensure the lowest borrowing rates and greatest available credit options for all borrowers. This slight regulatory relief will help expand borrowing and lending opportunities, especially during periods of high inflation.

Expanding Borrowing and Lending Opportunities by Raising the Maximum Allowable Interest Rates on Consumer Credit Installment Sale Contracts.

The Grafstein amendment #7 to the appropriations bill. This amendment repeals a section of the 2021 appropriations bill which gradually reduced the state's corporate tax rate from 2.5% to 0%, starting with 2.25% in 2025 and incremental reductions until 2030. Oppose is the Limited Government Position as this amendment places the state at a competitive disadvantage in attracting businesses and growing the state economy.

Blocking Economic Growth by Reinstating the Corporate Income Tax.

This motion tables (defeats) the Waddell amendment #16 to the appropriations bill. The Waddell amendment amends language in the bill providing cost of living supplemental payments to retirees under the teachers' and state employees' retirement system, judicial retirement system, and legislative retirement system. In addition to the onetime supplemental payments the next two years (equal to 1% of annual retirement allowance), the amendment increases the annual retirement allowance by up to 2%. Support is the Limited Government Position as this amendment merely worsens North Carolina's pension liabilities.

Blocking an Effort to Worsen North Carolina's Pension Liabilities Through Increased Payouts to Beneficiaries.

This motion tables (defeats) the Mayfield amendment #20 to the appropriations bill. The Mayfield amendment adds language establishing the "Selectsite Readiness Program," "to support the development of sites to ensure the State's ongoing competitiveness for major manufacturing opportunities" and appropriating $50 million annually for two years to the Department of Commerce for the program. This program provides grants for purposes such as identifying up to 10 sites under 1,000 acres, as well as for local government site acquisition and infrastructure improvements. Support is the Limited Government Position as not only does this measure further grow the size of government and central planning, but also worsens corporate welfare and cronyism by providing competitive advantages to select industries and businesses at the expense of taxpayers. The state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Blocking an Effort to Worsen Cronyism and Government Central Planning Through $100 Million to Enrich the Manufacturing Industry.

This bill contains several provisions related to local occupancy taxes. For example, the bill authorizes several localities to impose new or additional occupancy taxes, with the revenue to be used "to promote travel and tourism" and "for tourism-related expenditures." Oppose is the Limited Government Position as all state and local tax codes should be constructed in a broadly applied manner with the lowest rates possible for everyone. Additionally, it is not the proper role of government to fund tourism promotion and taxpayer funds should not be utilized to advance government-favored industries.

Increasing Taxation and the Growth of Government by Allowing Localities to Impose New Taxes on Hotels for Wasteful Tourism Promotion Initiatives.

This bill, the Property Owners Protection Act, expands the crime of second degree trespass to include unauthorized entry and remaining "on the curtilage of a dwelling of another between the hours of midnight and 6:00 A.M." Violations are a Class 2 misdemeanor. Support is the Limited Government Position as protection of private property is one of the highest duties of government and an essential component of maintaining a free and prosperous society.

Strengthening Property Rights by Expanding Protections Against Trespassing on Private Land.

This bill allows the operation of mobile salons for cosmetic arts, such as cosmetology, natural hair care, and nail care. Under the bill, a mobile home may be used and is subject to the same inspection requirements as cosmetic art shops, as well as an annual $25 license fee. The bill also allows makeup application and natural hair care at wedding venues. Support is the Limited Government Position as, while the state's draconian Board of Cosmetic Art Examiners should be eliminated entirely, this bill slightly reduces unnecessary restrictions and expands consumer choice.

Slightly Reducing Unnecessary Cosmetic Art Restrictions by Allowing Mobile Salons.

This bill clarifies that a "transient occupancy" of less than 90 consecutive days at a hotel, campground, or similar location does not create a tenancy or a residential tenancy under the state's landlord and tenant laws. Support is the Limited Government Position as this bill helps keep consumer costs low by ensuring hotels and similar businesses are not subject to expensive and lengthy eviction proceedings.

Strengthening Property Rights at Hotels and Campgrounds by Clarifying that Stays Under 90 Days Do Not Entitle Customers to "Tenancy Rights".

This bill prohibits cities and counties from requiring an online marketplace to provide personal information of users, "unless pursuant to a subpoena or court order." Support is the Limited Government Position as this bill protects economic growth by combatting local government overreach. While some may argue this bill undermines "local control", our founding fathers only recognized three entities within the U.S. Constitution - federal government, state government, and the individual. It is not the role for any level of government to unduly infringe the rights of individuals, therefore making preemption measures, such as this bill, necessary.

Protecting Against Local Government Overreach by Limiting Local Regulations of Online Marketplaces.

This motion overrides the Governor's veto of a bill which amends several provisions of the North Carolina Consumer Finance Act. Most notably, the bill raises the maximum allowable interest rate which lenders may charge on consumer loans (from 30% to 33% on the first $4,000 of loans that are $12,000 or less). The bill also increases the maximum amount of loans which fall under the regulation of the act from $15,000 to $25,000. Finally, the bill requires loan servicers to be licensed under the act (previously only lenders), increases the application fee from $250 to $500, and increases the minimum assessment on assets from $500 to $1,000. Support is the Limited Government Position as the free-market - not government price controls - is the best mechanism to ensure the lowest borrowing rates and greatest available credit options for all borrowers. While this bill does increase licensing requirements and fees, and subjects additional loans to the act, the regulatory relief related to interest rates will help expand borrowing and lending opportunities, especially during periods of high inflation.

Expanding Borrowing and Lending Opportunities by Raising the Maximum Allowable Interest Rate on Consumer Loans.

This motion overrides the Governor's veto of a bill which establishes the "Parents' Bill of Rights" and contains a number of provisions surrounding elementary and secondary education. The bill declares that parents have the right "To direct the education and care of his or her child." The bill also includes specific rights, such as choosing an alternative to public education, access to textbooks and other supplementary instructional materials, and access to their child's student health records. Finally, the bill prohibits instruction on gender identity, sexual activity, or sexuality prior to fifth grade. Support is the Limited Government Position as strong parental rights are a critical element of a free society.

Strengthening the Integrity of the Public Education System by Providing Parents a Series of Rights.

This motion overrides the Governor's veto of a bill which contains several provisions related to charter schools. Most notably, the bill allows charter schools to increase their maximum authorized enrollment without prior approval by the State Board of Education (low-performing schools are limited to a 20% increase without approval). Additionally, the bill allows charter schools to enroll out-of-state students if they are unable to fill their current enrollment with in-state students, as well as up to 2 foreign exchange students per high school. Support is the Limited Government Position as this bill improves educational outcomes for all students by fostering competition and a market in education, which encourages schools to provide the best education so they can attract parents to enroll their child and receive the associated funding.

Improving Educational Outcomes by Expanding School Choice Through Regulatory Relief for Charter Schools.

This motion overrides the Governor's veto of a bill which prohibits state agencies from asking prospective job applicants to provide a statement on "matters of contemporary political debate or social action." The bill also places restrictions on the promotion of divisive topics in state government workplaces and training programs, such as Critical Race Theory (CRT). For example, the bill prohibits promoting that one race is inherently superior to another, or that a person is responsible for past actions of others due to their sex or race. Support is the Limited Government Position as this measure helps protect taxpayer funds from being utilized to promote politicized DEI efforts which sow division amongst Americans and are intended to further grow the role of government.

Reducing Politicization and Strengthening Government Integrity by Prohibiting Critical Race Theory (CRT) in Government Agencies and Training Programs.

This motion overrides the Governor's veto of a bill which contains several provisions related to building codes and regulations. Under the bill, a new Residential Code Council is established to manage the residential building code beginning in 2025, and the existing Building Code Council is prohibited from adopting new residential building code rules related to mechanical, fuel gas, or energy conservation in the interim. The bill also requires the adoption of new rules which include three and four-family homes within the residential building code. Finally, the threshold for a project requiring a licensed contractor is increased from $30,000 to $40,000. Support is the Limited Government Position as this bill lowers housing costs by reducing regulatory barriers.

Reducing Regulatory Burdens in Housing Construction by Establishing a Residential Code Council.

The motion overrides the Governor's veto of a bill which prohibits the consideration of ESG (environmental, social, and governance) or ETI (economically targeted investments) in state investment strategies, including for the state pension system, as well as in state and local employment decisions and awarding state contracts. Investment strategies based on ESG result in reduced financial returns for taxpayers. Support is the Limited Government Position as all public investment, employment, and procurement actions should be based on producing the maximum return and value for taxpayers, not advancing political or social agendas.

Protecting Taxpayers by Prohibiting ESG (Environmental, Social, and Governance) Considerations in State Contracts, Employment, and Investment Strategies.

This bill, the Pretrial Integrity Act, requires judges, rather than magistrates, to determine whether individuals charged with certain crimes may be released on bond. This includes offenses such as murder, human trafficking, and first degree burglary. Additionally, if an individual is arrested for a new offense while already on pretrial release, a judge must determine the conditions for the new bond, after considering the individual's criminal history and risk assessment. Support is the Limited Government Position as protecting property rights and ensuring public safety are essential roles of government. Unfortunately, this measure is especially necessary considering the rising crime rates that have resulted from catch-and-release "criminal justice reform" policies which are being advanced in state legislatures by George Soros and other radical-left billionaires through their funding of advocacy organizations on both sides of the political aisle.

Strengthening Law and Order by Reforming Pre-Trial Bail Laws to Combat "Catch-and-Release" Practices.

This bill prevents employees and officials of public agencies, the judicial branch, and the legislative branch from downloading or accessing TikTok or any other "high risk platform" on agency or branch devices or networks. Support is the Limited Government Position as the installation of such systems poses a significant and unnecessary threat to state and federal networks. Additionally, state employees should not be utilizing government equipment to access entertainment apps such as TikTok.

Strengthening National Security by Banning TikTok from Being Accessed on State-Issued Devices or Networks.

This motion tables (defeats) the Marcus amendment #1 to the Gun Violence Prevention Act. The Marcus amendment adds language requiring an individual obtain a permit from the sheriff, or have a concealed carry permit, in order to purchase a pistol, assault weapon, or long gun, similar to the requirement that was repealed earlier in the legislative session. Support is the Limited Government Position as this measure imposes unnecessary barriers for lawful individuals wishing to exercise their Second Amendment rights, barriers that do nothing to deter criminals from engaging in unlawful behavior.

Protecting Second Amendment Rights by Blocking an Effort to Reinstate and Expand the Repealed Pistol Purchase Permit Requirement to Include all Firearms.

This motion tables (defeats) the Marcus amendment #2 to the Gun Violence Prevention Act. The Marcus amendment adds language enacting the Extreme Risk Protection Orders Act. The amendment allows for the issuance of "extreme risk protection orders," or a "red flag" program, whereby individuals may seek to have a firearm immediately taken away from another person through an "ex-parte" (one-sided) petition to a court if the individual alleges the firearms owner is a danger to themselves or others. Oppose is the Limited Government Position as the one-sided petition violates due process under the law (an individual can't provide their defense) and this program lacks provisions that prevent nefarious individuals from abusing the system to harass or harm law-abiding individuals, thus unduly infringing their Second Amendment protections and leaving them defenseless.

Protecting Second Amendment Rights by Blocking the Seizure of Firearms without Due Process Through "Extreme Risk Protection Orders".

The Jackson amendment #1 to the North Carolina Farm Act of 2023. This amendment adds language allowing employees of a business to drill or repair an irrigation well on property owned or leased by the business, without a well contractor certification. Support is the Limited Government Position as this reduces an unnecessary regulation which increases costs for businesses.

Reducing Business Costs by Allowing Employees to Drill Irrigation Wells on Employer Property without a Certification.

This bill expands the scope of practice for audiologists to include additional services, as well as treating minors. The bill also expands the definition of "practice of speech and language pathology" to include communication and cognitive-communication development and disorders. Finally, the bill provides that the sale of over-the-counter hearing aids is not considered "treatment by an audiologist." Support is the Limited Government Position as this bill increases healthcare access and lowers costs by providing additional options for individuals seeking treatment.

Increasing Healthcare Access by Expanding Audiologist and Speech-Language Pathologist Scope of Practice.

This bill prohibits localities from passing ordinances that ban certain energy sources used by residents (such as natural gas). The bill also contains a few additional provisions surrounding the decommissioning of solar energy projects. Support is the Limited Government Position as this bill strengthens both property rights and individual liberties. While some may argue this bill undermines "local control", our founding fathers only recognized three entities within the U.S. Constitution - federal government, state government, and the individual. It is not the role for any level of government to unduly infringe the rights of individuals, therefore making preemption measures, such as this bill, necessary.

Protecting Consumer Choice by Prohibiting Local Governments from Imposing Anti-Natural Gas Ordinances.

This motion overrides the Governor's veto of the Regulatory Reform Act of 2023, which contains several provisions generally reducing environmental regulations. For example, the bill requires the Department of Environmental Quality to approve or deny maintenance dredging and energy and fuel pipeline applications within 60 or 90 days and issue a certification if discharges into navigable waters comply with the state's water quality requirements. The bill also includes the Supply Chain Emergency Act of 2023, which authorizes the Commissioner of Agriculture, with the approval of the Board of Agriculture, to "implement any emergency measures and procedures" if the Commissioner "determines that there is an imminent threat to or a disruption of the agricultural supply chain or food supply chain with respect to poultry due to a lack of capacity at rendering facilities or landfills." Support is the Limited Government Position as this bill helps provide relief from environmental regulations, allowing individuals to avoid costly and burdensome permitting requirements.

Providing Significant Regulatory Relief Through the "Regulatory Reform Act of 2023".

This bill contains several provisions related to wastewater system regulation. For example, the bill prohibits cities from requiring properties to be connected to sewer lines if "the city has inadequate capacity to transport and treat the proposed new wastewater" or the costs to connect to the sewer line are greater than the costs to install an on-site wastewater system. Cities may not require properties to be connected to water lines "if adequate water pressure cannot be achieved using the same piping size as the meter provides to the owner's premises." Similarly, the bill provides that counties may only require properties to be connected to sewer lines "if the county has adequate capacity to transport and treat the proposed new wastewater." The bill also requires the Department of Health and Human Services to conduct a "completeness review" of an application for on-site wastewater system improvement permit within 5 days (previously, DHHS had 10 days to issue or deny a permit). Finally, the bill establishes an occupational license for an "environmental health associate," including education requirements, who may perform certain duties while reporting to a registered environmental health specialist. Support is the Limited Government Position as, while the bill does establish a new occupational licensing requirement, the bill helps provide regulatory relief, allowing individuals to avoid costly and burdensome permitting requirements. The bill also protects against local government overreach. While some may argue this bill undermines "local control", our founding fathers only recognized three entities within the U.S. Constitution - federal government, state government, and the individual. It is not the role for any level of government to unduly infringe the rights of individuals, therefore making preemption measures, such as this bill, necessary.

Providing Significant Regulatory Relief and Protecting Against Local Government Overreach Through Wastewater and Environmental Regulatory Reform.

This motion overrides the Governor's veto of a bill which contains several provisions related to nuclear energy. The bill replaces the state's existing Renewable Energy and Energy Efficiency Portfolio Standard (REPS) with Clean Energy and Energy Efficiency Portfolio Standard (CEPS). The new "clean energy" standards include nuclear fusion and fission, which allows utilities to meet the states 12.5% renewable energy requirement (now clean) more easily. Additionally, the bill eliminates the requirement that coal and nuclear facilities undergo a more rigorous review in order to obtain a certificate of public convenience and necessity, instead subjecting all public electric utility generating facilities to the same standard. Finally, the bill includes a provision prohibiting localities from entering "into a nondisclosure agreement in order to restrict access to public records subject to disclosure." Support is the Limited Government Position as this measure will reduce electricity costs for consumers, businesses and taxpayers by allowing utilities to utilize nuclear energy to meet the state's clean energy requirement.

Reducing Energy Costs by Including Nuclear Energy in the State's Clean Energy and Energy Efficiency Portfolio Standard.

This motion overrides the Governor's veto of a bill which contains several provisions related to election laws. Most notably, the bill requires absentee ballots to be returned by 7:30 p.m. on election day to be counted. Previously, ballots received by 5:00 p.m. on the third day after the election were counted, as long as they were postmarked by election day. Additionally, for same-day voter registrations, the bill requires those ballots not be counted if the address verification card mailed to the voter is returned as undeliverable by the day before election results are canvassed (previously 2 notices). Additionally, if an individual requests to be disqualified from jury duty because they are not a U.S. citizen, their information must be reported to the State Board of Elections. Finally, the bill prohibits outside groups from funding the administration of election operations. This is in response to the over $400 million in "Zuckerbucks" and other outside funds that were provided to influence elections across the nation. Support is the Limited Government Position as the private funding of election operations introduces serious concerns over the integrity and fairness of election outcomes. Maintaining strong safeguards against voter fraud is critical aspects of ensuring free and fair elections, an essential component of democracy under our nation's constitutional republic.

Strengthening Election Integrity by Requiring Absentee Ballots be Returned by Election Day and Prohibiting the Usage of Private Funds for Election Administration.

This bill, known as the "Access to Healthcare Options" Act, expands Medicaid (government-provided healthcare) to individuals under 65 with incomes up to 133% of the federal poverty guidelines. The bill establishes a new "health advancement assessment" on all public and private hospitals to help cover the additional cost of expanding Medicaid and increase hospital reimbursements. Additionally, the bill makes various exemptions to the state's certificate of need laws, such as for psychiatric beds and facilities, chemical dependency treatment beds and facilities, replacement equipment up to $3 million (increased from $2 million), and magnetic resonance imaging (MRI) scanners in counties with a population over 125,000. Finally, the bill requires the Secretary of Commerce to establish "a seamless, statewide, comprehensive workforce development program, bringing together new opportunities with the current workforce development opportunities" offered by state agencies. Oppose is the Limited Government Position as, while the bill slightly reduces anti-competitive certificate of need regulations, the bill further grows government dependency under the government welfare state. The state must pursue every available avenue to rein in its out-of-control spending, which, when coupled with the over $185 trillion in federal liabilities, represents the greatest existential threat facing this country.

Increasing Government Dependency and Ballooning Medicaid Welfare Spending by Expanding Medicaid.

This motion overrides the Governor's veto of a bill which contains several provisions related to handgun purchases and concealed carry. The bill allows individuals with a concealed handgun permit, or exempt from obtaining one, to carry a handgun in a place of religious worship that also contains a school, outside of school operating hours, which includes times when being used for educational or other school-sponsored activities, or "for programs for minors by entities not  affiliated with the religious institution." Additionally, the bill eliminates the requirement that an individual obtain a permit from the sheriff, or have a concealed carry permit, in order to purchase a pistol. Support is the Limited Government Position as "gun free zones" do not protect communities, rather they place individuals in defenseless positions against criminals who do not abide by the law. While the restriction should be eliminated entirely, this measure serves as a step in the right direction. Additionally, this measure provides an additional layer of protection for individuals to exercise their Second Amendment rights without being unduly restricted by government.

Strengthening Self-Defense and Second Amendment Rights by Allowing Concealed Carry on Religious School Property and Eliminating the Permit Requirement for Pistol Purchases.

This bill contains several provisions related to the release and sentencing of individuals charged with rioting. For example, the bill requires judges, rather than magistrates, to determine the conditions for bond after considering the individual's criminal history. The bill also establishes increased sentences for rioting that results in a death and for assault on emergency personnel during a riot that causes serious bodily injury or death. Finally, the bill allows anyone who is injured or whose property is damaged by a riot to recover triple the damages, as well as court costs and attorney fees. Support is the Limited Government Position as, while penalty enhancements go against equal application of justice under the law by providing certain individuals with greater protections than others, ensuring public safety and protecting property rights are essential roles of government. Unfortunately, this bill is especially necessary due to many so-called criminal justice "reforms" which have led to skyrocketing crime rates and are being advanced in state legislatures by George Soros and other radical-left billionaires through their funding of advocacy organizations on both sides of the political aisle.

Eddie D. Settle

Overall Trend