Highlights from the 2022 North Carolina Short Session

MEDICAID EXPANSION

The question of expanding Medicaid is still up in the air, but now that the majority of lawmakers are on record as having endorsed some version of this widely popular concept, it’s hard to imagine that it will remain stuck in suspended animation for too much longer.

The House refused to take up the Senate’s Medicaid bill, instead passing one that would study the issue further and allow for a vote in December. A big sticking point was work requirements for people getting health care coverage. The Senate bill included a work requirement, but there’s an ongoing court case over whether or not the state can require Medicaid recipients to work.

HB 149: Expanding Access to Healthcare
Includes items such as expanding the scope of practice for certain nurses, using telehealth, addressing surprise medical billing, and changing the certificate of need law, which governs the placement of certain medical facilities and equipment across the state.
Status: Engrossed
Last Action: Jun 02, 2022 - Ref To Committee On Rules, Calendar, and Operations of the House

SB 408: Rural Healthcare Access & Savings Plan Act
Would create a Joint Legislative Committee on Medicaid Rate Modernization and Savings that would hear a Medicaid Modernization Plan to be developed by NC DHHS by Dec. 15, 2022. The bill outlines what should be in the plan such as coverage and funding details. The committee would make recommendations on the plan and the General Assembly would act on all or part of it on or after Dec. 16, 2022.
Status: Engrossed
Last Action: Jun 29, 2022 - Ref To Committee On Rules and Operations of the Senate

Although both bills remain eligible for the 2022 session, it is uncertain whether this topic will be considered again this year.

Patients would be allowed to access cannabis if they have a “debilitating medical condition” such as cancer, epilepsy, HIV/AIDS, Parkinson’s disease, multiple sclerosis, and post-traumatic stress disorder.
The committee substitute adopted in August by the Senate Judiciary Committee changed the list somewhat to allow patients with terminal illnesses and have six months to live, as well as those with conditions resulting in hospice care, to also qualify for cannabis. Patients could possess up to one and a half ounces of marijuana, but home cultivation would not be permitted.
The definition of what constitutes a “cannabis-infused” product was also changed in the latest substitute version. Such products include “a tablet, a capsule, a concentrated liquid or viscous oil, a liquid suspension, a topical preparation, a transdermal preparation, a sublingual preparation, a gelatinous cube, gelatinous rectangular cuboid, lozenge in a cube or rectangular cuboid shape, a resin or wax.”
Smoking and vaping would also be allowed, but doctors would need to prescribe a specific method of delivery and dosages for patients under the revised legislation. And they would need to reevaluate patients’ eligibility for the program at least once a year.
The bill provides for up to 10 medical marijuana suppliers who control the cultivation and sale of cannabis. Each supplier can operate up to four dispensaries. Under the bill, a Compassionate Use Advisory Board would be established, and it could add new qualifying medical conditions.
Separately, a Medical Cannabis Production Commission would be created to ensure that there’s an adequate supply of cannabis for patients, oversee licensing and generate enough revenue to regulate the program.

The Senate voted 41-2 in favor of SB 455, Conform Hemp with Federal Law, keeping hemp legal in the state, and removing it from State Controlled Substances Act. Governor Cooper promptly signed the bill into law on June 30.

The vote came as a law that temporarily legalized hemp in 2015 was set to expire on June 30, which would have made it illegal to sell hemp in the state, possibly causing hemp growers and sellers to be subject to charges for possession and trafficking of marijuana online.

There were some tense moments for growers and retailers once the language legalizing hemp was removed from the SB 762, North Carolina Farm Act of 2022. That bill also passed in the Senate 43-0 and passed in the House 99 to 13.

On June 1, the House voted 85-26 in favor of SB 455. It was reported that several House Republicans would have voted against the Farm Act if the hemp provision was kept in it.

The measures would have authorized the issuance of between 10 and 12 interactive sports wagering operator licenses along with supplier and service provider licenses. People 21 and over within the state’s boundaries would have been able to play on their phones or computers starting in January. NASCAR tracks, golf courses, arenas, and stadiums where professional sports are conducted could have betting sites in person or close by if the legislation had succeeded.

The legislation also contained $2 million for problem-gambling programs.

The supplemental bill also contained sweeteners on how the state’s share would have been distributed. Net proceeds would have benefited county youth sports programs, athletic departments for seven UNC system campuses, and efforts to bring sporting events and attractions to the state.

SCHOOL SAFETY

North Carolina state lawmakers didn’t pass any significant legislation on school safety laws during their short session. Legislators say they will work to provide additional funding and resources throughout the state once they go into their long session, which starts in January.

The N.C. House Committee on K-12 Education met during the session to hear an update on school safety in the state. This included data that showed that nearly one-third of the state’s schools have not yet submitted a School Risk Management Plan (SRMP) — a requirement of state law. Only 110 schools have submitted plans that have been deemed acceptable — about 5%.

There were 431 reports of planned school attacks — 254 of them considered credible— to the Say Something Anonymous Reporting System (SSARS) since Aug. 1, 2021.

IMMIGRATION

A measure (SB 101) approved late last week states that sheriffs and other jail administrators must determine whether any person charged with felony drug or violent crimes has ICE detainers seeking their custody. If a detainer is listed, deputies must take the inmate quickly to a local magistrate or judge who will decide whether to issue an order holding them. The additional hold would give ICE agents 48 hours to pick up the inmate.

The bill is a response to Democratic sheriffs in several urban counties who have stopped working closely with ICE to hold defendants. Republican sponsors, including Sen. Chuck Edwards — a congressional candidate this fall — say the measure is needed to protect the public from violent crime.

Cooper successfully vetoed a similar 2019 bill and is likely to veto this bill.

DOMESTIC VIOLENCE

The House and Senate unanimously approved Jordan's Law (HB 615) a measure to strengthen domestic violence protections in the state.

Judges in the state are now allowed to temporarily renew a domestic violence protective order to fill the gap in time between an order’s expiration and a forthcoming court hearing.

State Sen. David Craven, a Randolph County Republican who introduced the proposal also advanced a minor tweak that notifies parties involved in the protective order process.

This bill was signed by Gov. Cooper on July 7, 2022.

TRANSPORTATION

With a divisive license plate reader provision removed after objections in the House, both chambers sent Senate Bill 201 to Cooper. Several Republicans and Democrats cited concerns about privacy and potential abuse of the technology. The technology, which can take photographs of cars and sometimes drivers and passengers, is then uploaded to a central server. Some privacy advocates say the readers are too invasive. The removed item would’ve allowed the Department of Transportation to enter into agreements allowing the State Bureau of Investigation to place and use automatic license plate reader systems

Sales Tax To Help Pay For Roads. Budget writers decided to start using sales tax revenue to help pay for roads (HB 103). Starting this year, 2% of the revenue collected via the sales tax, or $193.1 million, will go to transportation. That sales tax transfer to transportation funds will increase to 6% in 2024.

ABORTION ACCESS

Republicans are optimistic given the national political climate that their party could retake a supermajority in the General Assembly, making it easier for the GOP to override vetoes Gov. Cooper may issue.

Speaker Moore said it’s a key reason the legislature did not take up any bills dealing with abortion access while lawmakers were in Raleigh. Though the recent U.S. Supreme Court ruling gives states the authority to regulate abortion access, Moore acknowledged Cooper would veto any bills restricting abortion and Democrats would sustain that veto.

Senator Natasha Marcus (D) sponsored a bill this session that would codify Roe and Casey protections. Under SB 888, the state would be prohibited from imposing any undue burden on a woman's ability to choose whether or not to terminate a pregnancy before fetal viability. This bill was sent to the Rules Committee in late May. It was never given another hearing.

Republicans have committed to pursuing legislation on that next year.

PARENTS' BILL OF RIGHTS

A controversial Parents' Bill of Rights (HB 755) approved by the Senate in June was also shelved by House Speaker Tim Moore, R-Cleveland, who told the Journal there wasn't enough support to override a likely veto by Gov. Roy Cooper.

The bill was designed to enhance public school transparency, outline the rights and responsibilities of parents and install guardrails on curriculum dealing with gender identity and sexual orientation.

Proponents contend the bill is critical to ensure parents are informed about what their kids are learning in school, while opponents claimed the legislation discriminates against LGBTQ youth.

ABC LAWS

The North Carolina House passed HB 768, the 2022 ABC Omnibus, by a vote of 100-9 last week. The extensive bill is designed to decrease regulations on bar owners and expand the freedom of alcohol transportation and sales. North Carolina is one of 17 states where liquor sales are still controlled by the government.

The definition of “private bar” is now changing. Under the current law, a private bar is an establishment that is primarily engaged in the business of selling alcoholic beverages and does not serve prepared food. HB 768 eliminates the $1 membership requirement for people at private bars.

HB 768 also expands the right to serve alcoholic beverages at sporting events beyond public universities. Community colleges will now be included as well. This was added because of a community college that hosts a minor league baseball team at their stadium.

HB 768 expands the reach of alcohol sales by repealing the ABC store or distillery alcohol transportation permit that limits alcoholic beverage transportation to 100 liters of wine and 40 liters of liquor. Distilleries will now be able to obtain mixed beverage catering permits that will allow them to provide liquor for events that are catered by hotels or restaurants. Distilleries will also be able to sell mixed beverages at their location whether or not it has been approved by a local election.

HB 211 is a technical corrections bill that is following behind HB 768 to clarify and expand the areas where customers of restaurants or bars that sell alcoholic beverages can openly enjoy their drinks. This comes as a correction to a 2019 common area entertainment permit that allowed an owner of a multi-tenant establishment that had two bars/restaurants that sold alcoholic beverages to designate a common area where customers can enjoy their drinks.

Another bill could loosen some alcohol provisions. SB 470, allows counties and cities to enact social districts. These are areas where people can drink indoors or outdoors in spaces not normally permitted.

HB 768, HB 211and SB 470 were signed by Gov. Cooper on July 7, 2022.

EDUCATION

The North Carolina Senate voted to shift control of the North Carolina School for the Deaf away from the State Board of Education.

Under Senate Bill 593, a new board of trustees would be created for each school impacted – The Governor Morehead School for the Blind, The Eastern North Carolina School for the Deaf and the North Carolina School for the Deaf in Morganton. This means that while the schools will be “housed administratively within the Department of Public Instruction for the purposes of distribution of State funds,” each institution will effectively operate as an independent entity, according to the bill.

The bill has been ratified and is waiting on Gov. Roy Cooper's signature.

Remote Academies Bill. A proposal sent to Cooper (SB 671) sets out requirements for “remote academies” operating next year and beyond and an examination of whether the programs are working. The bill also moves two virtual charter schools that have been criticized for academic performance out of their pilot program status and extends their charters by five years.

This bill:

Requires parental permission for students to participate in “remote academies”
Limits enrollment in the academies to no more than 15% of students in a school system
Allow schools to reassign remote academy students to in-person school if administration believes the student will be more successful there, something many schools were already practicing. However, the school wouldn’t be allowed to deny a student enrollment in a remote academy based solely on the student having a disability under the Individual with Disabilities in Education Act
Require remote academies to meet many of the same state regulations, including class size requirements and educator licensure requirements.
Require remote academies to provide students with hardware and software to attend and ensure they have access to the internet at all times, as well as provide technical support
Require annual performance evaluations of remote academies

Healthier snacking in school. North Carolina lawmakers sent House Bill 159 to Cooper, which would require vending machines in middle schools and high schools to include snacks with no more than 200 calories. Sugared sodas are also prohibited before and during the school day. The measure includes a number of other education policy changes, including ones that make it easier for aspiring pre-kindergarten and early childhood teachers to enter the workforce.

Other bills passed signed by Gov. Cooper on July 7, 2022:

SB 496: DOI Omnibus Bill was signed into SL 2022-46. Section 6 of this bill requires LEAs to provide the Commissioner of Insurance with a list of all its insurable buildings, equipment and contents of the buildings, and their insurance values by October 1 each year. Section 6 also requires LEAs to provide the Commissioner with copies of insurance policies when purchasing insurance from an authorized company.

SB 265: Bond Information Transparency/LGC Toolkit II was signed into SL 2022-53. SB 265 requires local governments to provide additional disclosures regarding bond referenda and requires more monitoring and oversight of local governments’ financial operations.

Overview

Appropriates $27.9 B for FY 23, a 7.2% increase from FY 22
Adds funds to the state’s Rainy Day savings fund to increase the balance to $4.75 B at the end of FY 23
Transfers $1 B into a new State Inflationary Reserve in anticipation of an economic recession

Salaries

Establishes a labor market salary reserve of $80 M for state agencies to address staff shortages and help recruit and retain employees
Provides a 3.5% pay raise for most state employees, (6% raise over the biennium) and an average increase of 4.2% for teachers (average 6.7% over the biennium). It also increases the starting salary for entry-level teachers and provides funds for a state-funded teacher supplement
Provides an additional 1% one-time retiree supplement for a total of 5% over the biennium

Education

Funds an additional $1 B over the FY 22 amount for a total of $16.5 B for the three levels of education
Provides $3.9 M to cover the copays for students that qualify for reduced-price lunches
Transfers $431 M over the biennium from the NC Education Lottery to the Needs-Based Public School Capital Building Fund
Creates a recurring $250,000 grant for schools to purchase feminine hygiene products in schools

School Safety

Provides an additional recurring $15 M for the School Resource Officer Grant program, specifically for elementary and middle schools
Provides an additional $32 M for School Safety Grants to support students in crisis, school safety training, and safety equipment in schools
Allocates $26 M to provide one school resource officer for each high school
Provides $5 M for cybersecurity and bomb threat preparedness at North Carolina’s Historically Black Colleges and Universities

Capital/Infrastructure

Provides $883 M for water and wastewater infrastructure projects, bringing the total amount for the biennium to $2.5 B
Provides $300 M to build a new Education Complex and Governor’s Office in downtown Raleigh, and to renovate and demolish other downtown government buildings
Provides $250 M for a reserve to help defray cost overruns for state capital projects due to inflation
Provides $120.8 M in additional capital grants to local governments and non-profit entities

Other Items

Redirects 2% of sales tax revenue for FY 23—approximately $193.1 M—to the Highway Fund to support a variety of transportation purposes. This increases to 6% (an estimated $600M annually) by FY 25
Provides an additional $5 M for GREAT Grants to expand broadband access in underserved areas, which raises the total to $20 M recurring
Appropriates $1.8 M from the federal Help America Vote Act (HAVA) grant to update and maintain voter lists and to continue enhancing election technology and security improvements
Provides $1 M to identify additional mega-sites on which to site large economic development projects

SCHEDULE DEMO

The North Carolina General Assembly wrapped up the 2022 short session last week. Well, almost, although not technically.