From the Office of Representative Larry D. Hall
December 6, 2007
Seasons Greetings! On behalf of Lisa Ray my Legislative Assistant and myself, we would like to wish you and your family all the best during this holiday season. As we enjoy family and friends during this season of celebration the work and responsibility of governance continues.
One of the best attributes of our system of government is the sharing of authority. This enables us to better respond to citizens' needs on all levels. While state government must address statewide issues, local governments are better equipped to deal with many issues that North Carolinians face daily. By working together, state and local governments make North Carolina a stronger state. This past session, we made several changes that will allow local governments to better address local issues. Together, we will do our best to represent your interests and concerns.
As always, thank you for your continued support. Please contact me if I can help with any questions or concerns you have.
Budget
With too many counties across our state struggling with rising expenses related to Medicaid, the state agreed to a plan this year to permanently relieve them of this burden-an estimated $500 million this fiscal year -- over the next three years. Our plan will free up money in the counties for school construction and other costs of local government while helping to keep property taxes down in your communities. This approach represents a major shift in how the state of North Carolina does business and it protects small counties and those with an inordinate number of Medicaid recipients from the escalating costs of health care. Every county will end up with at least $500,000 more than they would have had otherwise.
Pensions and Personnel
The General Assembly passed a law to establish the Local Government Post-Employment Benefits Fund. Local governments may contribute to the fund and then use money from the fund to pay post-employment benefits later. The bill (SB 580) also establishes a similar Local Government Law Enforcement Special Separation Allowance Fund and authorizes local governments to create irrevocable trusts for these purposes. The funds will be managed by the state treasurer.
Legislators passed a bill (HB 671) that grants leaves of absence for elected or appointed state officials who are called to active military duty and permits cities and counties to select temporary officials to be appointed during their absences.
Safety
Local governments can adopt ordinances regulating demonstrations on state roads and highways. The ordinances can regulate the time, place, and manner of gatherings, picket lines, and protests.
We passed a bill (HB 189) that allows counties to authorize cities to issue pyrotechnics permits. Pyrotechnics is the science behind chemical reactions that operate numerous items like fireworks, safety matches, and airbags.
Building Codes and Regulations
Municipalities can now adopt and enforce ordinances to establish a nonresidential building or structure code. Legislators passed a bill (SB 556) allowing counties and cities to pass such ordinances if a structure does not meet minimum standards of maintenance, sanitation and safety established by the governing body. These standards involve conditions that are dangerous and jeopardize the occupants or public health, safety and welfare.
We passed a bill (SB 581) to allow counties and cities to lower building permit fees or offer partial rebates to encourage the design and construction of energy efficient buildings. These lower fees and rebates can also be applied to existing buildings that are renovated to improve energy efficiency. They are available to buildings that meet or exceed LEED standards, One Globe or higher under the Green Globes program standards, or a certification that meets or exceeds these standards.
Another bill (HB 1595) authorizes counties and cities to acquire, construct, convey or lease a building suitable for industrial or commercial use.
Transportation
A new law (SB 1513) now allows counties to help build roads. Under our previous law, the state and cities alone had responsibility for roads. Now, counties can buy land or right of ways for roads or build and maintain them if they choose to. Under the new law, cities can accept money from the Highway Fund or Highway Trust Fund or have some or all of their allocation reprogrammed to fund a project from the Department of Transportation's Transportation Improvement List.
First Responders
The General Assembly passed a bill (HB 767) that will allows fire, rescue, and EMS personnel to drive all-terrain vehicles on certain public highways.
Legislators passed a bill (HB 1321) that grants weight and size limit exemptions to state and local firefighting agencies transporting overweight and oversized vehicles (up to 90,000 pounds, 12 feet wide and 75 feet long) being used to respond to forest fires, wildfires, or other emergencies or disasters.
Health
We passed a bill (HB 24) to protect the public from health risks associated with second hand smoke as recommended by the Justus-Warren Heart Disease and Stroke Prevention Task Force. Cities and counties can regulate and restrict smoking in buildings and vehicles owned, leased or operated by local government.
Notes
A new law (HB 514) allows local governments to use single-vehicle passenger buses with an overall length of 45 feet or less on public streets or highways unless it poses a risk to the passengers or the public.
My colleagues and I passed a bill (HB 1060) that authorizes counties and cities to donate unused, obsolete or surplus property to another governmental unit in the United States, a sister city or nonprofit organizations incorporated by the United States.
Local governments can now purchase from federal contractors. A new law (SB 492) allows local governments to purchase from federal contractors if the contractor is willing to provide goods or services at the same or more favorable prices, terms, and conditions as those in the federal contract.
Most of us have heard about the increase number of home mortgage foreclosures and how they affect our economy, interest rates and home prices. Home foreclosures have far reaching affects in every area of North Carolina. Home owners who are forced to foreclose damage their credit and lose valuable home equity. This hurts all of us. This session my colleagues and I passed laws that we believe will decrease the rate of mortgage foreclosures and help our citizens acquire and maintain secure housing without sacrificing their financial security.
Foreclosures in North Carolina
In 1998, 16,630 homeowners filed for home mortgage foreclosure in North Carolina. In 2006, that number increased to 46,510 foreclosures. By the end of August this year, 32,300 homeowners had filed for foreclosure in North Carolina and experts are predicting this will be a record year in the state for home foreclosures.
Many people are forced to foreclose because of a death in the family, unemployment, divorce or some unexpected event. Sometimes people do not have enough equity to refinance or cannot sell their houses for enough profit to pay all their debts. In other cases, people take out loans but simply cannot make the payments because they have a low income or credit issues.
Too many foreclosures in an area can hurt property values. Areas that offer only low-cost entry-level homes are at a risk for excessive foreclosures. While we would like to encourage homeownership, no one should take on the responsibility of owning a home without being aware of the all of the costs. Homeownership education halves the chances of foreclosure. I encourage borrowers to do extensive research into every aspect of the mortgage process before taking out a home loan.
Predatory Lending
We passed a bill to protect North Carolinians from predatory mortgage lending and to improve the writing of loans. The bill (HB 1817) limits broker fees, protects borrowers from some of the dangers of adjustable rate mortgage loans and clarifies mortgage broker duties. Lenders are required to determine that the homeowner can repay the loan. The law also prohibits prepayment penalties and expressly gives the Commissioner of Banks the authority to create rules to protect the borrowing public.
Another new law defines and punishes residential mortgage fraud in North Carolina. The bill (HB 817) makes it a felony to knowingly misrepresent or exclude information in the mortgage lending process even if the victim is not harmed financially. Offenders can be sentenced to up to 16 months if they have no prior record and up to 31 months if they are linked to at least five cases of fraud with no prior record. Mortgage fraud was illegal under previous laws, but it was covered by general fraud law. That law required stolen property to be valued at a minimum of $100,000 before the offender would face substantial punishment. The changes make it easier to protect people who were cheated out of lesser amounts.
Reducing Foreclosures
Loan servicers are now required to tell homeowners about fees charged on the loan and provide full details about how payments are handled and fees are calculated. The bill (HB 1374) protects borrowers from mortgage loan servicing companies that mishandle escrow accounts on home loans, charge illegal fees or misapply mortgage payments. The new law makes the foreclosure process fairer and requires servicers to give homeowners better information about their rights in foreclosures.
Protect Tenants
The General Assembly ratified a law that will help protect renters who live in property lost to foreclosures. The bill (HB 947) states that tenants must receive 30 days notice of an application for foreclosure. Tenants can then give the landlord 10 days written notice to terminate the rental agreement.
House Select Committee on Rising Home Foreclosures
The recently appointed House Select Committee on Rising Home Foreclosures will study the causes of foreclosures in North Carolina and the appropriate role of state and federal governments in helping people remain in their homes. The committee has also been directed to determine whether real estate or mortgage workers are contributing to the problem; evaluate mortgage and borrowing trends to help first-time homebuyers obtain mortgages; consider ways to collaborate with the state's banking community to protect confidence in the mortgage industry; identify trends in home foreclosures and consider counties' ability to provide information on each foreclosed loan. The committee may also consider any other relevant issues.
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.