Inside this issue
  This Week at the General Assembly  

Week 10 of the 2011 Session consisted of floor debate on municipal broadband, guns, defining legal forms of identification, the State Health Plan and repealing local involuntary annexations.  Luckily, this enabled NCHBA to focus our attention on working on our legislative priorities.  Due to the bill drafting deadline last week, there were many bill introductions this week and there will continue to be so until the filing deadlines of April 6 (House) and April 12 (Senate).  As of today, the crossover deadline is still scheduled for May 12.



  Bills Introduced This Week  

HB 485/SB 476 New Home Purchase Stimulus was introduced in conjunction with NCHBA.  It provides the buyer of a new home a $10,000 tax credit (spread over 5 years).  NCHBA proposed this legislation because of the positive impact it would have on the economy of North Carolina. Until housing recovers, North Carolina’s economy will continue to suffer. Residential construction historically accounts for 15% of the state’s gross domestic product and is a major economic engine that drives our state’s economy. An economics study by Dr. Michael Walden, Reynolds Distinguished Professor of Economics at NCSU, estimates the total economic impact from the new home tax credit in North Carolina would be a remarkable $966 million. The study also calculated that 16,199 new jobs would be created as a result of the enactment of the tax credit proposal in the first year. By comparison, only 6,400 jobs were gained in all industries in North Carolina in 2010. In order to have any realistic chance of passage, the proposal had to create the maximum number of jobs for the $100 million that the General Assembly is being asked to allocate to fund the tax credit proposal. Thus, the starting date for homes to qualify for the credit had to be prospective. We understand that this does not help those builders who continue to hold inventory, but it was unavoidable. 

HB 489 Mechanics Lien and Bond Changes was sent to a subcommittee of the House Judiciary B Committee to be worked on by interested parties. NCHBA opposes this bill, and we expressed our opposition to it before the full committee along with other major construction groups. 

HB 497 Clarify Definition of General Contractor would add design/build work to the definition of “general contractor.”  NCHBA is monitoring this bill.

HB 505 Stormwater/Certain Development Projects would exclude some transportation projects from post-construction practices if the project followed the “Stormwater Best Management Practices Toolbox” produced by NC DOT.  NCHBA supports this bill.

HB 531 Involuntary Annexation Reform would make comprehensive changes to the annexation process in NC.  NCHBA is monitoring this bill.

HB 542 Tort Reform for Citizens and Businesses would make changes to the liability laws in the areas of medical malpractice, attorney fees, product liability and trespassing.  NCHBA is a leader in the business community’s tort reform coalition, which proposed and supports passage of this bill.

HB 574 Distribution Mod to Excise Tax on Conveyances/SB 462 Distribution of Excise Tax on Title Instruments would change the distribution of funds collected from property conveyances to include the Housing Trust Fund (currently funds are split between Parks & Recreation Trust Fund and Natural Heritage Trust Fund).  NCHBA supports this bill.

SB 447 Rewrite Landscape Contractor Laws would create the NC Landscape Contractors’ Licensing Board.  NCHBA is monitoring.



  Bills on the Move  

HB 268 Implementation of Reclaimed Water Rules (was Disapprove Certain Reclaimed Water Rules) passed the House Environment Committee as a Proposed Committee Substitute and was placed on the calendar.

SB 107 Tax of Improved Prop. In Roadway Corridors passed the House Finance Committee and was placed on the calendar for 4/4/11.

SB 155 Local Stormwater Utility Fees (was Wake Local Stormwater Utility Fees) passed the House Government Committee as a Proposed Committee Substitute to now include Wake, Forsyth and Durham counties and is now in the House Finance Committee.

SB 368 Modify Public Swimming Pool Requirements passed the House Environment Committee and 2nd and 3rd Readings in the House and waits for ratification.



  Enacted Legislation  

SL 2011-10 (SB 99) Reform UI Tax Structure/Expedite Analysis

SL 2011-13 (SB 22) APA Rules: Limit Additional Costs



  Joint Regulatory Reform Committee Public Hearing to Be Held in Greenville April 4  
  Special thanks to NCHBA members in the Greensboro area for your excellent comments at the Joint Regulatory Reform Committee's public meeting held last Monday.  You told your stories and made your voices heard.  Committee members thanked us for the great participation from our members, and they will remember your comments! 

The next public meeting will be held on Monday, April 4, at Pitt Community College in the Goess Building, Rooms 137-139, 1986 Pitt Tech Road, Winterville, N.C.  We are asking all our members in the area to tell your stories about regulatory burdens to doing business.  If you can’t make the meeting, please submit your comments to  or use the NC General Assembly’s online form at


  Quote of the Week  

"We're looking at ideas on how to create jobs. This creates jobs in that (one-year) window of time."

--Rep. Harold Brubaker (R-Randolph) speaking about the merits of HB 485 New Home Purchase Stimulus.

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