The Raleigh Report: June 16, 2006

This short session of the North Carolina General Assembly is turning out to be an interesting one for North Carolina FreedomWorks. Telecom Reform is on a fast track. A form of property rights protection is moving. House members passed their version of the budget and a tax-relief bill was introduced.

Telecom Reform in North Carolina began in earnest when it was taken up by the Committee on Revenue Laws. Many months were spent studying the possible effects of changing the way our video franchise system works. Interested parties met with legislators and staff to express their interest and concern. The proposal that came forth represented many months of work and compromise. The bills, H2047 and S1559, are entitled “Video Service Competition Act”. After receiving a unanimous favorable report in Revenue Laws, the bills moved to the House Committee on Finance and the Senate Committee on Commerce. After several House Finance meetings with no vote, the bills passed through both House Finance and Senate Commerce on the same day! H2047 is scheduled for a vote on the floor of the House early in the week. S1559 must be heard in the Senate Committee on Finance and receive a favorable report before it can receive a vote on the Senate floor.

We are extremely pleased with the path North Carolina Telecom Reform has taken and are confident of its impending success. So many of our activists have made calls, sent e-mails, and attended committee meetings. Thank you so much for your help on this important issue.

An eminent domain protection act has passed the House and been referred to the Senate. H1965, “Eminent Domain Restrictions” received a favorable report from the House Committee on Judiciary 111 and unanimous passage on the House floor. H1965 has been referred to the Senate Committee on Judiciary 1. Primary sponsors are Representatives Goforth and Sherrill. Co-sponsors are Representatives L. Allen, Almond, Brown, Clary, Culp, Grady, Harrison, Ed Jones, Justice, Justus, Martin, McGee, Preston, Rapp, Ray, Setzer, Stiller, Walend, and Wiley. The bill is “AN ACT TO RESTRICT THE STATUATORY PURPOSES FOR WHICH ENIMENT DOMAIN MAY BE USED BY PRIVATE CONDEMNORS, LOCAL PUBLIC CONDEMNORS, AND OTHER PUBLIC CONDEMNORS, AND FOR CERTAIN REVENUE BOND PROJECTS, AS RECOMMENDED BY THE HOUSE COMMITTEE ON EMINENT DOMAIN POWERS”.

H1965 has been referred to by many as “a band-aid rather than a cure”. While North Carolina FreedomWorks hopes our legislators will see fit to pass stronger property rights protection legislation, we are certainly pleased that they are beginning down the road. As I have written of before, numerous property rights protection bills have been introduced in both the House and Senate. One of the bills, H2213 was sponsored by Representatives Stam, Harrell, Goforth, and Lewis. The bill has eighty-four co-sponsors! H2213, “Eminent Domain”, is “A BILL TO BE ENTITLED AN ACT TO AMEND THE CONSTITUTION OF NORTH CAROLINA TO PROHIBIT CONDEMNATION OF PRIVATE PROPERTY TO BE OWNED BY OTHER PRIVATE OWNERS FOR ECONOMIC DEVELOPMENT, AND TO PROVIDE FOR THE PROMPT PAYMENT OF JUST COMPENSATION WITH RIGHT OF TRIAL BY JURY IN ALL CONDEMNATION CASES.” Despite its overwhelming bi-partisan support, the bill was referred to the House Committee on Judiciary 111 where it remains.

The House passed its $18.9 billion budget. While the House plan also does not include tax increases, proposed spending is higher than either the Senate or Governor’s proposed spending. A budget agreement between the two chambers is expected to be achieved very quickly. While North Carolina FreedomWorks applauds the General Assembly for not proposing new tax increases, we are concerned about the high level of spending represented in both the Senate and House budgets. Because recurring expenditures are higher than recurring revenues, we are concerned that this year’s increased spending will result in a tax increase in next year’s budget. As my Grand momma used to say, “Just because you have money does not mean you have to spend it!”

Senator Phil Burger, Allran, Brown, Goodall, Jacumin, Smith, Stevens, and Tillman filed S1980, “Income Tax Rebate”. Passage of the bill would mean that a small portion of North Carolina’s surplus would be returned to families in the form of tax rebates. Based on 2005 income tax returns, individuals would receive a $100.00 rebate. Married couples who filed joint returns would receive a $200.00 rebate. Those filing as individuals and those filing as married couples would also receive an additional $25.00 per dependent. S1980 was referred to the Senate Committee on Finance.