Wednesday, July 2, 2008

Smoking Bill

A House judiciary committee has approved a bill that would ban smoking inside all state-owned or state-leased vehicles. Sen. Bill Purcell, D-Scotland, said the proposal is a health issue for state employees. The committee voted against an amendment offered by House Minority Leader Paul Stam, R-Wake, that would have allowed smoking inside older state cars -- provided the employee was assigned the car on a permanent basis. And other people inside the car would have to consent before the driver could smoke. The bill now heads to the full House. The Senate already has approved a version of the bill. (THE ASSOCIATED PRESS, 7/01/08).
Sweepstakes Bill

A House judiciary committee has unanimously approved a bill that would outlaw online sweepstakes that look, sound and play like video slot machines. Such devices have become common in convenience stores and truck stops. Lawmakers passed a bill outlawing stand-alone video poker in 2005. Since then, video slot devices that are tied into a central computer server have proliferated throughout the state. Operators use a perceived loophole in the state law to claim the devices are legal, but different law enforcement agencies disagree.

State ALE agents have raided businesses in several counties that have operated the devices. But Guilford County's district attorney has refused to prosecute such cases. Rockingham County District Attorney Phil Berger Jr. dropped charges against several defendants when video slot machine operators sued to prove they were operating legally. Berger said that if the General Assembly did pass a law clarifying the issue, it would be useful for all involved. "This is an issue that has certainly stirred a lot of interest around here," Berger said of Rockingham County.
Theresa Kostrzewa, a lobbyist for one of the video slot companies, asked the committee to hold off on passing the bill, saying that it could have unintended consequences. She said that the type of games that would be outlawed under the bill, which are offered in conjunction with the purchase of phone or Internet time, are similar to sweepstakes offered by Pepsi or Skittles. (Mark Binker, THE NEWS & RECORD, 7/01/08).
Trip Response

Republican leaders on Tuesday sharply criticized taxpayer-funded trips taken by Gov. Mike Easley and his wife, Mary. Overall, the three cultural exchange and business-recruitment trips to Europe cost more than $280,000. Senate Minority Leader Phil Berger brought the trips up in a news conference. "If you're in private business and you waste money in that way, you're probably going to be let go. Obviously you can't fire the first lady. At this point, it's a little late in the game to talk about firing the governor," said Berger, R-Rockingham. "But certainly that kind of judgment has got to be something that calls into question a whole range of decisions that have been made over the years." And GOP chairwoman Linda Daves said the Easleys are again "lavishly spending taxpayer money on vacations overseas." Easley, a Democrat, defended the expense of the trips Tuesday at a news conference, saying they can reap exponentially larger monetary rewards for the state through new jobs a! nd major art exhibits. (Benjamin Niolet, THE NEWS & OBSERVER, 7/02/08; Gary D. Robertson, THE ASSOCIATED PRESS, 7/01/08).
Easley Trips

Gov. Mike Easley on Tuesday defended high overseas travel bills racked up on taxpayer-funded trips he and his wife took in the past two years, saying such excursions are necessary if the state hopes to land big art exhibits or recruit new business. In April, Easley and his wife, Mary, participated in a business-recruiting and tourism-promoting trip to Italy that cost more than $170,000. Last year, Mary Easley went to France with two others at a cost of more than $53,000. And in May, she went to Estonia and Russia with five others at a cost of more than $56,000.

During a press conference, Easley said high bills are unavoidable. "It costs what it costs," Easley said, adding that the dollar is "very, very weak now." Easley said the trips were designed to bring jobs and tourists to the state. "That is why we were over there, in order to get those euros coming to the United States for tourism," Easley said. Easley also said he didn't plan the trips. The trip to Italy was organized by the N.C. Department of Commerce. The trips to France and Russia and Estonia were run by the N.C. Department of Cultural Resources. "It's not something that either her or I have anything to say about or do with," said Easley, who appoints the head of both the commerce and culture agencies.

Mary Easley's trip to Russia and Estonia was to build relationships with museum officials that could one day score a blockbuster exhibit, like the 2006 and 2007 Monet exhibit at the N.C. Museum of Art that brought more than $20 million to the state. If the trip to Russia results in an exhibit from The Hermitage in St. Petersburg, it would likely bring similar numbers, Easley said. Easley said the trip to Italy has led to four or five potential new or expanded businesses in the state. Museum officials acknowledge a major loan from a Russian exhibit has not yet been realized, although plans are in the works to show Estonian artists at a state museum. (Benjamin Niolet, THE NEWS & OBSERVER, 7/02/08).
Budget Negotiations

House Speaker Joe Hackney and Senate leader Marc Basnight met behind closed doors twice Tuesday to work out lingering House and Senate differences on the state budget. The meetings at the top come after a week and a half of negotiating by House and Senate teams reached an impasse on several issues, including education spending, construction projects and other items. Hackney and Basnight left Tuesday night asking staff and fellow legislators to propose additional spending cuts to address a small downturn in revenue that Gov. Mike Easley has urged them to respond to in recent days. "That is something that has to be done," said Basnight, D-Dare, in an interview. "There's going to be some significant changes (from) what we've seen."

Easley, who is leaving office in January after two terms, has urged fellow Democrats to pull back on spending or tax breaks because revenues were $70 million less than expected as the fiscal year that ended Monday. "I can't sign an unbalanced budget," Easley said at a news conference. The governor has suggested that lawmakers drop tentative agreements to eliminate the gift tax and expand a refundable income tax credit to the working poor toward saving $45 million in additional spending in the new fiscal year. Democratic lawmakers have been cool to his recommendations, arguing that the final budget still projects revenue growth for this fiscal year at a reasonable rate. By late Tuesday, Basnight and Hackney acknowledged that their fiscal analysts also believe there's less money than previously believed, although they don't necessarily agree with Easley's estimates. "We know the general ballpark of it," said Hackney, D-Orange, but it "ought not to be a big problem."

Hackney said he doesn't expect dramatic spending changes. He believes the House and Senate will keep to a tentative agreement to spend $34 million more on preparing for thousands of additional students at University of North Carolina system campuses this fall. But he said that there may be less money than anticipated for More at Four, Easley's signature preschool initiative. Easley has grated on legislative leaders since he began taking them to task last week on the revenue picture. Hackney said lawmakers will create a sound spending plan. "We know how to balance the budget and we don't need him to tell us" how, he said. Legislative leaders still hoped for a final agreement as early as Wednesday, with two required votes in each chamber completed by early Friday morning or early next week. (Gary D. Robertson, THE ASSOCIATED PRESS, 7/01/08).
Foreclosure Help

Gov. Mike Easley is backing legislation designed to limit home foreclosures over the next few years. Easley appeared at a news conference on Tuesday with Rep. Dan Blue, D-Wake, the bill sponsor, and State Commissioner of Banks Joe Smith to tout the legislation, which would require a minimum of 45 days notice before foreclosure proceedings. Easley said the bill, which also would allow Smith to work with lenders and borrowers to reach agreements to avoid foreclosures, has the potential to prevent 25,000 at-risk mortgages from failing. "This is not a bailout," Easley said. "This is not the state trying to subsidize banks."

The bill would also require mortgage companies to notify the state about delinquent home loans and give the banking commissioner the ability to delay foreclosures for an additional 30 days if a settlement looks possible. Easley credited North Carolina's predatory lending laws with limiting the number of at-risk mortgages here. But foreclosures still increased 9 percent in 2007, according to his office. "Foreclosure means not only tragedy for the families that may be involved, but the communities," Blue said. "It drives down home values." Sen. Walter Dalton, D-Rutherford, who has also sponsored legislation intended to stem foreclosures, also spoke at the event. (THE INSIDER, 7/02/08).
Ticket Scalping

The Senate Finance Committee is scheduled to take up a bill today that would, under some circumstances, legalize ticket scalping in North Carolina. The bill would allow tickets to sporting events and other entertainment to be resold at any price by Internet resellers, but only with the permission of the original sales outlet. Sen. Fletcher Hartsell, R-Cabarrus, the bill's sponsor, says putting some restrictions on Internet ticket brokers is preferable to the state's current scalping laws which are unenforceable on out-of-state companies. "The problem is that it was taking place anyway, particularly on the Internet," Hartsell said. "Right now, there is no way to monitor it." Hartsell said the legislation could prevent ticket brokers from using complex software programs to exceed ticket limits -- a common complaint of concert-goers forced to turn to the brokers for popular events.

The bill would subject brokers who violate ticket limits to lawsuits in which plaintiffs could be awarded treble damages. Internet resellers would also have to guarantee delivery and refunds in the event of cancellations. Hartsell said the major professional sports in the state, along with Lowe's Motor Speedway, favor the change. He said the bill also could help curb abuses associated with some ticket brokers. Last fall, a North Carolina woman sued ticket broker TicketNow.com after paying $1,000 for four tickets for a Miley Cyrus concert at Greensboro Coliseum. Lyn Peraldo said she was unable to buy the tickets at face value when they went on sale and blamed schemes by ticket brokers to prevent average buyers from being able to purchase the tickets. Several states -- including New York, Florida and Louisiana -- have dropped prohibitions on ticket scalping in recent years. (THE INSIDER, 7/02/08).