2019 Enacted Legislation Report
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The 2019 session has been notable for its length (at the time of this report, the second longest in state history), and contentious budget stalemate. While the number of session laws has trended slightly lower in recent sessions, especially in the context of the length of session, a number of laws were enacted that have varying impacts to counties. The real story of this session is what hasn’t happened—i.e., a state budget (which contains a number of provisions critical to county operations including a new state-county partnership addressing school capital issues) and legislation to continue implementation of Medicaid managed care. However, the General Assembly is set to reconvene the 2019 legislative session on January 14, 2020 and resolution of these issues is likely to be a focus of the legislature.
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Earlier this week, NCACC sent a letter to the Governor and legislative leaders urging them not to adjourn the 2019 legislative session without taking action on one of NCACC’s top legislative priorities: additional resources to address statewide public school and community college capital challenges.
Other matters the General Assembly may consider during the reconvened session include:
- Override votes on legislation vetoed by the Governor.
- Legislation responding to litigation concerning election maps or the legality of any other legislative enactment.
- Adoption of conference reports for legislation that passed both chambers and in negotiation at the time of the October 31st adjournment.
- Legislation addressing access to health care.
- Legislation providing for or modifying appropriations of state funds.
As we move into the New Year and the reconvened session, we want to share a brief list of enacted legislation of interest to counties. Below is a list of enacted laws with county impact adopted so far during the 2019 session. NCACC will provide a final comprehensive session report when the legislature adjourns.
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Enacted Legislation with County Impact:
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SL 2019-17 (SB 310) Electric Co-op Rural Broadband Service
This legislation is a piece of a multi-part solution to NCACC’s priority goal of expanding broadband to unserved and underserved communities. The bill eliminates, effective May 28, 2019, restrictions on electric co-ops providing high speed broadband services and allows them to access federal funds to do so.
SL 2019-19 (HB 233) State Auditor/Local Finance Officer Amendments
SL 2019-19 makes changes to statutes related to the state auditor’s office. Of particular interest to counties, it authorizes the Local Government Commission to establish minimum standards for local government finance officers, and authorizes finance officers to contract with outside entities, like CPAs, COGs, or other units of government to fulfill the duties of the finance office. The legislation is an attempt to address a statewide issue for many local governments struggling to recruit and retain qualified finance personnel by enhancing the rules and responsibilities for the office. The provisions addressing local government finance officers became effective May 29, 2019. NCACC will continue to work with the Local Government Commission as it establishes the standards and implements other parts of the law.
SL 2019-22 (HB 646) Voter ID Implementation/One-Stop Voting
This session law establishes rules for voter photo ID implementation—including the use of government and university identification. It also returns some flexibility to counties in establishing rules for one-stop voting and allowing counties to adopt a plan for sites and hours by unanimous vote of the county board of elections. If the county board cannot establish a plan unanimously, a member or members of that board can petition the state board to establish a plan.
However, on December 31, 2019, a federal district court issued an order and preliminary injunction of the Voter ID law, including those changes made by SL 2019-22 as outlined above. The injunction prohibits county boards of elections from implementing any of the Voter ID law, including preventing county boards of elections from issuing free Voter ID cards. The State Board of Elections has issued a memo to county boards of elections on the injunction and required next steps.
SL 2019-123 (H492) Simplify Builder Inventory Exclusion
Prior to the enactment of this legislation, builders seeking property tax exclusions for unsold property would have to file for an exclusion annually during the period the property is for sale. SL 2019-123 allows builders to instead file a one-time application for the exclusion. The legislation became effective in July 2019.
SL 2019-169 (S523) Rev. Laws Clarifying & Administrative Changes
This session law includes a wide range of tax code and other revenue law amendments. The legislation also includes a provision, effective July 1, 2019, that prohibits any county from placing more than one quarter-cent local sales tax referendum on the ballot within one year. To hold a subsequent Article 46 referendum, the county must wait at least one year before going back to the voters.
SL 2019-171 (H108) PED/Safekeeper Health Care Cost Recovery Practice
As a result of a General Assembly Program Evaluation Division study, SL 2019-171 makes changes to data and cost recovery practices for health care provided to inmates transferred from local jails to the state prison system under safekeeping orders. Safekeeping orders are issued for safety and security purposes, or when inmate medical needs exceed resources available in the county jail. Most notably, the law requires counties to reimburse the state for costs associated with the transportation and custody of inmates who receive medical care outside of the prison facility in which they are housed. The law also establishes a process to extend the stay of safekeepers, requiring the Department of Adult Correction and Juvenile Justice to conduct an assessment and recommendation for the housing of the inmates. The law prohibits DPS from refusing to accept a safekeeper because a county has failed to pay for other safekeeping services rendered, and requires health care providers to submit bills for safekeeper medical costs to the NC Sheriffs Association’s Inmate Medical Costs Management Program. This law applies to all prisoners transferred on or after October 1, 2019.
SL 2019-182 (S290) ABC Regulatory Reform Bill
While several bills with wide-ranging reform to the state’s ABC system were introduced this session, legislation that was ultimately enacted has minimal impact on county ABC boards and their operations. This session law relaxes a number of regulations for distilleries and allows tastings at stores, among other things. Of interest to county operations is the provision in the law that would restrict the creation of new ABC boards, by prohibiting any jurisdiction in a county that already has a board from holding an ABC board election unless they negotiate a merger with an existing board. This section became effective September 1, 2019.
SL 2019-198 (S584) Criminal Law Reform
This law is part of a long-term project to reorganize North Carolina’s Criminal Code, initiated by last year’s House Bill 379 Recodification Working Group. SL 2019-198 extended the report filing deadline to November 1, 2019, and limited the report requirement to counties with a population of 20,000 or more according to the last federal decennial census, and cities or towns with a population of 1,000 or more.
This session law further prohibits any ordinance adopted on or after January 1, 2020 and before January 1, 2022 by a county or city required to submit a report from including a criminal penalty unless that county or city submitted the required report by November 1, 2019.
SL 2019-200 (H217) DIT Changes
SL-2019-200 makes a number of changes related to the Department of Information Technology. Of interest to counties is a provision requiring local governments, effective August 9, 2019, to report any cybersecurity incidents as defined in the law to the Department within 24 hours of the incident. NCACC will remain in communication with NC DIT on how the reporting requirement will be implemented.
SL 2019-239 (S683) Combat Absentee Ballot Fraud
The bulk of this session law is related to the security of absentee ballots. It requires that absentee ballots be signed by and returned to the county board by the voter or the voter’s near relative, and prohibits the collection of ballots by individuals or organizations. It also increases penalties for those convicted of absentee ballot voter fraud. Additionally, the legislation restores the last Saturday of early voting and extends the deadline for the decertification of DRE voting machines used by a number of counties to July 1, 2020. This date represents a compromise between the original December 1, 2019 deadline and proposed December 1, 2020 extension. A county seeking this extension to July 2020 must apply to the State Board of Elections and submit sufficient evidence showing that the continued use of the DRE machines does not jeopardize the security of the county’s elections, and demonstrate the county elections board has started the process to replace the DRE voting machines. The legislation also allows counties to test new machines during a simulated election.
SL 2019-240 (S537) Licensing & HHS Amendments and Rural Health Care Stabilization
The law contains a number of provisions of interest to counties, including extending the deadline for submission of local area crisis services plans by LME/MCOs, which shall include county involuntary commitment transportation agreements, to no later than August 1, 2020. SL 2019-240 also postpones deployment of the NC FAST system for case management functionality for the child welfare system and aging and adult services programs. Finally, it establishes the Rural Health Care Stabilization Program to provide loans for the support of eligible hospitals located in rural areas that are in financial crisis under specific conditions to be used to finance construction of new health care facilities or to provide for operational costs during the transition period, or both, including while the construction of new facilities is undertaken.
SL 2019-241 (S433) DNCR Omnibus and Other Changes
The majority of this legislation is directed at making changes to the Department of Natural and Cultural Resources, but has some provisions with impact to counties. These changes authorize the Department to provide funds to the Local Government Commission for grants for public water and sewer systems operating at a deficit. The broader proposal of a Viable Utility Reserve fund appeared in several pieces of legislation this session, but has not yet become law.
SL 2019-246 (S557) Various Finance Law Changes
This law compiled multiple finance law changes, and one portion of the legislation directs marketplace facilitators to collect and remit sales tax. Following the U.S. Supreme Court decision in South Dakota v. Wayfair, states may require online retailers without a physical presence in the state to collect and pay sales tax. The N.C. Department of Revenue had previously required all online sellers with gross sales above $100,000 or with 200 or more separate transactions to collect and remit sales tax. This new law will require marketplace facilitators meeting those same sales thresholds to collect sales tax on behalf of third-party online sellers beginning February 1, 2020.
SL-2019-250 (H200) Storm Recovery/Var Budget Corrections
SL 2019-250 directs funds to recovery and resiliency efforts related to Hurricanes Dorian, Matthew, Florence and Michael. Additionally, the law authorizes local governments to award contracts for the repair, rehabilitation, or construction of private residential structures funded by state or federal funds following a disaster declared by the Governor. It also authorizes a local government to contract directly with pre-qualified contractors on the basis of price, qualification, capacity, and any other objective criteria.
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