Dear Citizens:

Although we previously stated an intent to limit our newsletter interval to monthly, issues are moving so quickly we feel that a bi-weekly update is required. We need to provide you more timely notification of issues while they are in process. Also the number of bills has increased dramatically over previous legislative sessions.

In the past weeks my colleagues and I in the House Democratic Caucus announced our seven major priorities for this year' s legislative session. Our agenda includes an "initial blueprint" of how we will work to improve greater access to education and health care, create more jobs, offer tax relief, ensure safer communities and protect our environment, while strengthening the public' s s trust in their government. In the coming weeks and months, legislation will be debated and passed on all of these topics, so stay tuned as we make progress on these important issues.

Please feel free to go to the web site to see the bills I have worked on or voted on. Your response is critical to being able to identify our priorities. Remember that you can learn more about the General Assembly by visiting www.ncleg.net. Our newly updated website allows citizens to listen in on each day's legislative session, committee meetings and press conferences, learn more about introduced legislation, and view each day's schedule and list of bills to be voted on.    The House begins weekly sessions each Monday night at 7 pm.

Thanks to those of you who continue to let me know how you feel about the issues that are being debated by the North Carolina General Assembly and the challenges you anticipate as a result that your family will face each day. Our continuous communication is essential in the effort to make Durham County and all regions of North Carolina a better place to live, work and raise a family.

House Democrats Announce Legislative Agenda for 2007 Session

After weeks of discussion and working on specific legislation, my colleagues and I in the House Democratic Caucus announced our legislative priorities for the 2007 session, which will improve access to education and health care, create more jobs, offer tax relief, ensure safer communities and protect our environment, while strengthening the public's trust in their government. The title of the agenda, A Plan for One North Carolina, was a theme that legislative leaders stressed throughout our press conference in calling on all legislators to improve the lives of the men, women and children in all regions of North Carolina.

House Speaker Pro Tempore William Wainwright of Craven County delivered very moving remarks as he explained the plan would level the playing field between rural and urban areas. "Too many of our small towns around the state do not have the same opportunity that big towns like Raleigh, Charlotte, Greensboro and others have, and unfortunately, this creates two North Carolinas," said Wainwright. "Our caucus agenda will help ensure the same access to opportunities, no matter where you live. We as Democrats are determined to move our state forward and to truly make it one North Carolina. "

The House Democratic Caucus Agenda focuses on seven larger priorities for the 2007 session:


1. Strengthen people' s confidence in a government that works for them.
2. Provide the opportunity of a lifetime - a quality education.
3. Create jobs that support strong, healthy and more prosperous families.
4. Improve the health of our citizens - young and old.
5. Support out military families, bases and communities.
6. Ensure safer and more prosperous communities.
7. Protect North Carolina ' s air, water and land for future generations.

Our legislative agenda detailed numerous issues under each of these seven categories, which will serve as the basis for legislation that will be debated and passed in the coming weeks and months, so stay tuned as we make progress on these important issues.

To view the complete agenda, click on the attachment at the end of this email.

Budget Update

Members of the House and Senate continue their discussions this week about the two-year state budget, which will set spending levels for state programs such as our public schools, universities, community colleges, health care system and roads. As a reminder, the House and Senate will pass their own budget proposals over the next few months, in hopes of working out the differences and passing a final budget before the start of the new fiscal year on July 1. We are currently considering spending recommendations by Governor Easley, individual lawmakers and advocacy groups. We are also going through the various state programs to determine what can be eliminated or made more efficient.

We as members of the House Finance Committee received a briefing from State Treasurer Richard Moore, who described his office' s debt affordability study and urged lawmakers to keep North Carolina' s high bond rating and financial security by issuing bond funding conservatively. Several legislators and groups across the state have called for passage of bond packages related to school construction, water and sewer improvements, protecting land and open spaces from development, and road construction. During questioning, Moore told lawmakers they can issue more than the report ' s recommended $384 million in new debt each year over the next decade if they find a way to match any increase with new revenues that maintains the recommended 4 percent ratio of debt service to revenue.

Many of you have also expressed concern about the management fees earned by pension fund managers and their donations to the Treasurer. Many legislators are advocating that a board be appointed to regulate the assignment of

Reducing Domestic Violence

Legislators are working on numerous bills, which seek to reduce domestic violence across our state. This week, the House unanimously passed legislation (House Bill 42), which would add stalking to the list of offenses a judge must consider before granting a pretrial release and would increase the reporting requirements on homicides where the victim and perpetrator have a personal relationship.

The House has also passed two other bills. House Bill 46 would determine whether security guidelines are needed for domestic violence shelters operated by state funded agencies and to provide, where feasible, private areas for domestic violence victims who are needed for any court proceeding where the defendant will be present. House Bill 47 would make it a felony for some suspected abusers to violate a protective order and contact victims while possessing a gun, knife or other deadly weapon. These bills are now being considered by the Senate.

The House has also passed two other bills. House Bill 46 would determine whether security guidelines are needed for domestic violence shelters operated by state funded agencies and to provide, where feasible, private areas for domestic violence victims who are needed for any court proceeding where the defendant will be present. House Bill 47 would make it a felony for some suspected abusers to violate a protective order and contact victims while possessing a gun, knife or other deadly weapon. These bills are now being considered by the Senate.

The newly-created Joint Legislative Committee on Domestic Violence made 16 recommendations just prior to the start of the session and come on the heels of sweeping changes to North Carolina's domestic violence laws in 2004. Bill sponsors point to recent statistics that also call attention to the growing problem of domestic violence and the need to enact these new laws. The number of deaths as a result of domestic violence in the state increased slightly from 2005 to 2006, according to the North Carolina Coalition Against Domestic Violence. The coalition said Wednesday that at least 79 people were victims of homicide related to domestic violence in 2006. The number, based on reports from advocates and family members from across the state, was 70 in 2005 and 82 in 2004.


Ban on Paddling in Schools

Legislators, school officials and child advocates held a press conference on Wednesday to call for a ban on corporal punishment (House Bill 853) in all public schools, which they said would improve, not hurt, school discipline. North Carolina is one of 21 states that allow corporal punishment, though many of those states let local school districts set policies against it. Across our state, 48 school districts already ban corporal punishment, while 67-or 58 percent-allow it, according to a survey by the School of Social Work at UNC-Chapel Hill. However, the survey found that in many of those districts where it is allowed, students are paddled infrequently or not at all. In 15 districts where it is permitted, no instances were reported during the survey period. Seven districts have banned corporal punishment within the past half-dozen years, the UNC report said. They included Avery County, which abolished the practice about six years ago, and Hertford County, which ended it last spring.

Child Car Seats

House members passed legislation (House Bill 61), which would bring North Carolina rules on child car seats into line with federal regulations. Passage of the bill will bring North Carolina's laws on child car seats into line with federal statutes so the state is eligible for $1 million in assistance to help poor parents afford to buy child car seats. The measure passed by a vote of 96-19 and moves to the Senate.

Tax Reform Committee Continues Work

The State and Local Fiscal Modernization Study Commission, which has been meeting during the last several months, continues to look at ways to update and reform our state' s tax code. The commission began their work with three major objectives - 1) to recommend ways to update and reform our state ' s tax code that would be revenue neutral, so there would be no overall increases in taxes; 2) foster a stronger partnership between the state and our 100 counties, which currently pay for different services and programs; and 3) find ways to afford to be able to invest in needed infrastructure, which will help our state and local economies grow.

Many legislators, local elected officials and various groups across the state have highlighted the need to reform and update our state ' s tax system. North Carolina ' s tax code, which has not seen a comprehensive update since the 1930s, has been based on an economy that centered on farming, textile and manufacturing jobs, which needless to say, have reduced dramatically in recent years. Today 's economy, however, relies more on services and Internet sales.

On Monday, the committee heard recommendations from its five subcommittees. The suggestions included updating the sales and income tax base while lowering the overall rates and creating a "tax menu" or more options for local governments to use when paying for roads, school construction and Medicaid.

One subcommittee recommended changes to the sales tax that consumers pay on tangible goods to include services. In exchange, the overall tax rate-currently at 6.75 percent in nearly 100 counties-probably would be reduced by more than half. Another subcommittee suggested lowering the corporate income tax rate from the current rate of 6.9 percent to about 5.5 percent and the top marginal income tax bracket from the current 8 percent to 6 percent.

Responding to complaints and suggestions from cities and counties, another subcommittee suggested giving local governments the authority to assess several optional taxes or fees on real estate transfers, new subdivisions or automobiles. The money would help supplement property and the local share of sales taxes, particularly in areas where elected officials have raised the rates several times in recent years to pay for new roads, school construction and their local share of Medicaid. Similar local "tax menus" have failed to gain support in the General Assembly.

North Carolina' s Tax Burden is Among the Lowest in the Nation

North Carolina's business tax burden is among the lowest in the nation, according to a study prepared by tax experts at Ernst & Young. The report found that combined local and state taxes paid by North Carolina businesses amount to 3.9 percent of the gross state product, which is one of the reasons our state is one of the fastest growing in the nation for new people and businesses relocating here each year. That rate tied North Carolina with four other states-Connecticut, Delaware, Oregon and Virginia-as having the lowest U.S. business tax burden. The highest burden in 2006 was carried by Wyoming businesses, which paid taxes equivalent to 10.8 percent of the state's gross state product. The 50-state study used public information to estimate the business share of a variety of 26 taxes at the state and local government levels.

N.C. ' s "Green Industries" have $8.6 billion Impact

North Carolina' s "green industries," such as landscaping, greenhouses, Christmas trees and the sale of lawn and garden supplies, have an $8.6 billion impact on the state's economy, according to a new study released this week by Agriculture Commissioner Steve Troxler. The first-ever study of the industry was requested by lawmakers two years ago to quantify the growing market for such businesses. The review by Troxler's department and economists at N.C. State University also found that the industry employs close to 152,000 people, while the state has 120,741 acres producing Christmas trees, nursery stock, sod and other commodities. The economic impact and number of employees of the "green" industries was just behind North Carolina's poultry and pork industries. The tremendous growth of the green industries stems from former tobacco farms that are now producing sod and nursery plants.

Salutes from the General Assembly

Since the start of this year's session, lawmakers have honored Appalachian State's football team for its second NCAA Division I-AA title, Wake Forest University for its Atlantic Coast Conference football championship, and the national champion North Carolina women's soccer team. The Durham delegation submitted a resolution for the Two time Central Inter-Collegiate Athletic Association (2006 & 2007) 2007 National Black College Champion North Carolina Central University Football Eagles and for the North Carolina Central Lady Eagle 2007 Central Inter-Collegiate Athletic Association Tournament Champions, hopefully we'll be able to welcome a national championship basketball team in early April!

Other Legislative Highlights

o House Bill 583 would modify the requirements for participation in a community college lateral entry program.
o House Bill 625 would add more personnel who may treat patients under the mental health, developmental disabilities and substance abuse services statutes.
o House Bill 639 would require jail time, in addition to any other punishment, for anyone convicted of driving under the influence with a blood-alcohol level of 0.20 or more.
o House Bill 641 would appropriate $5 million to the One North Carolina Small Business Fund.
o House Bill 675 would authorize the Legislative Research Commission to study the definition of child care and the potential need to regulate after school programs.
o House Bill 688 would increase t penalty for solicitation of child by computer for unlawful sex acts.
o House Bill 693 would give teachers credit for the excess personal leave time that they earn and ensure that teachers can take personal leave with five days' notice.
o House Bill 702 would amend the state constitution to increase General Assembly terms from 2-4 years.
o House Bill 760 would allow the regulation of smoking at UNC System campuses and other facilities.
o House Bill 744 would create an excise tax exemption for heating oil and natural gas sold for residential use.
o House Bill 784 would raise from 17 to 18 the age at which a person convicted of first-degree murder may be sentenced to die.
o House Bill 817 would protect consumers from residential mortgage fraud.
o House Bill 853 would ban corporal punishment in all public schools.
o Senate Bill 726 would allow a sales tax exemption for schools.
o Senate Bill 812 would require that all public school buses purchased, leased or contracted for use after July 2008 be equipped with combination lap-shoulder seat belts.

Larry D. Hall

Please remember that you can listen to each day's committee meetings and press conferences on the General Assembly's Web site at http://www.ncleg.net. Once on the site, select "audio," and then make your selection - Appropriations Committee Room or Press Conference Room. You can also use the website to look up bills, view lawmaker biographies and access other information.