FOOD FOR THOUGHT

"Robeson County needs some relief. I don't care which plan to take or how to do it, but we have to do something this year. I'll take any plan that will pass." – State Sen. David Weinstein, speaking to The Robesonian newspaper.

STATE LEADERS CONTINUE PRESSING FOR MEDICAID RELIEF

In the waning hours of the 2005-07 biennium, Senate and House leaders are meeting 'round the clock to craft a workable strategy for county Medicaid relief, an effort to be applauded and commended by all county commissioners. Should you see your legislators out and about this weekend – if they're let out of Raleigh – take a few minutes to thank them for their support of and commitment to county Medicaid relief and ask them to remain stalwart as the state budget negotiations continue.

Thanks also go to Governor Mike Easley and his staff for their work on county Medicaid relief. Speaking during a news conference earlier this week, Gov. Easley told reporters that a Medicaid solution needed to be found and that counties also needed additional sources of revenue to fund growing infrastructure demands.

Speaking of the budget, the House passed on Wednesday a continuing resolution, H2044, to keep state government open and operating after June 30 as it works with the Senate to hammer out budget details. To give the negotiations some breathing room, the CR largely extends current fiscal year state spending and revenue authority through July, including the 1/4 cent sales tax set to expire June 30. Additional moneys are made available for the anticipated increase in public school students - the CR also extends the retired teachers' return to work provision. The Senate approved H2044 on second reading today, with final action perhaps as early as midnight tonight.

SENATE MODIFIES REGISTER OF DEEDS BILL

The Senate Committee On Pensions & Retirement and Aging on Thursday passed a slightly modified version of H676 (Increase Register of Deeds’ Pension). As passed by the House, the bill allows counties to reduce the contribution to the Registers of Deeds' Supplemental Pension Fund from 4.5 percent to 0.9 percent of Register of Deeds’ fees, while expanding beneficiary eligibility and increasing pension benefits. The Senate committee upped the percentage to 1.5 percent.

ASSOCIATION CONTINUES TO OPPOSE BROADBAND BILL

Several major Internet technology companies, including Google and Intel, have joined the fight against H1587. A Google representative sent a letter to House Speaker Joe Hackney earlier this week to express the company’s opposition. Intel representatives also sent letters to oppose establishing barriers to public-sector Internet networks. Alcatel-Lucent, which is based in Raleigh, and Tropos Networks are also opposing the bill. These companies say the bill would prevent cities from working with public sector firms to create local Internet networks. H1587 attempts to prevent cities from providing both wired and wireless communication services – i.e., cable TV, telephone, and broadband Internet services – by requiring a special election to be held prior to providing services, and places numerous restrictions on system operations. While counties are not specifically subject to the provisions of H1587, all projects involving both counties and cities will be impacted. The Association remains opposed to this legislation in concert with the League of Municipalities.

SENATE CONSIDERING RETAINAGE BILL

A bill being considered in the Senate – S1245 (Retainage Payments/Construction Contracts) – attempts to eliminate and/or reduce the amount of money local governments can set aside from the payment schedule on construction contracts. These reserves provide assurance that a construction contract will be satisfactorily completed. The bill would make several changes to current law. Association staff is negotiating with the bill proponents, but its core elements in the most recent version are as follows: (1) no retainage on contracts less than $300,000; (2) on contracts greater than $300,000, no more than 5 percent retainage and no retainage after project is 50 percent complete; and (3) total release of retainage within 45 days of the receipt of a certificate of substantial completion, certificate of occupancy, or beneficial occupancy, unless work remains uncompleted. The Association remains opposed to the bill.

BILLS OF INTEREST

This week the Association is highlighting a lot of bills that did not meet the crossover deadline and are, presumably, ineligible for the remainder of the 2007-08 biennium. However, there is always the possibility that some of these bills will resurface as amendments. Association representatives will remain vigilant in following these issues. Visit www.ncacc.org/legislation/about.html for updates on key legislation, including the bills listed below.