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Legislative Update

North Carolina Farm Bureau Legislative Report
Legislative updates provide status reports on bills before the General Assembly that are of interest to North Carolina Farm Bureau members and other interested parties. The updates will be posted to this Web site during legislative sessions only.

 

2007 Wrap-up

Number 20

The 2007 regular session of the North Carolina General Assembly adjourned on Thursday, August 2, and will reconvene for its short session on May 13, 2008. Here are some statistics on the session provided by the General Assembly's bill drafting section: (1) 344 laws were enacted, 8 joint resolutions ratified, 4 House resolutions adopted, and 3 Senate resolutions adopted; (2) 208 bills are on the Governor's desk. The 344 laws enacted plus the 208 bills pending gubernatorial signature could result in up to 522 laws enacted, a potential 19% increase from the 463 enacted in the 2005 long session; (3) 3645 bills were filed, 2072 House bills and 1573 Senate bills.

With adjournment of the session on August 2, the Governor has 30 days to act on the 208 bills on his desk, with August 3 being day 1. The 30-day period concludes at midnight, Saturday, September 1, 2007. Any of those bills not acted on by the deadline become law on Sunday, September 2, 2007.

Bills That Were Enacted
(Includes bills still awaiting the Governor's signature)

 

Senate

S3 - Promote Renewable Energy - (Sen. Charlie Albertson, D-Duplin) Provides that a certain percentage of the electric power sold by an electric power supplier to its retail customers must be generated using renewable energy resources or saved because of the implementation of efficiency measures. This amount would increase yearly so that, by 2021 the amount of energy saved or generated from renewable energy resources by public utilities would be at least 12.5 percent. By 2018, the amount of energy saved or generated from renewable energy resources by electric membership corporations or municipalities public utilities would be at least 10 percent. "Renewable energy resources" include solar, wind, hydropower, geothermal, ocean current or wave energy, agricultural waste, animal waste, wood waste, energy crop, landfill methane or hydrogen derived from a renewable energy resource. The bill would also require that, by 2018, at least 0.2 percent of the energy sold to retail customers will be generated using swine waste. This bill also provides for a four-year phase-out of the sales and use tax on fuel and electricity sold to manufacturers and farmers and the excise tax on piped natural gas.

S567 Allow Distribution of E-Blend Fuel (Sen. Walter Dalton, D-Rutherford) Allows the distribution of E-Blend fuel (petroleum blended with more than 15 percent ethanol) from equipment approved for dispensing gasoline or blends of less than 15 percent ethanol (E-15) provided that: (1) the manufacturer of the dispensing equipment provides a written statement that dispensing E-Blend fuel from the equipment does not present a "distinct hazard" to the public; (2) the equipment is fully compliant with the requirements for dispensing E-15 fuel and (3) the manufacturer has applied to an independent testing laboratory to have the equipment approved for dispensing E-Blend fuel.

S646 - Enact Waterfront Access Study Commission Recommendations (Sen. Charlie Albertson, D-Duplin) Creates a new class of property that is subject to present use valuation for property tax purposes. This class includes coastal piers that charge a fee. It also includes real property that is adjacent to coastal fishing waters and is primarily used for a commercial fishing operation or fish processing, including adjacent land that is under improvements used for one of these purposes. This bill is effective for tax years beginning July 1, 2009 and beyond. It provides no guidance to counties as to how they should arrive at a present use value for these "working waterfront" properties.

S738 - Registration Exemptions/Length Exemptions (Sen. A.B. Swindell, D-Nash) Allows "for hire" fertilizer spreader vehicles, to be exempt from registration if they travel within 50 miles of their point of loading, do not exceed a speed of 35 miles per hour and if the operator has a valid North Carolina driver's license and liability insurance. This bill also provides a width and length exception for vehicles hauling cotton modules. The combination of these vehicles and their trailers will be allowed to be 50 feet in length and 18 feet wide.

S1464 - Management of Wildlife Resources (Sen. A.B. Swindell, D-Nash) Makes several changes to the wildlife resource management laws. Among those changes is one to allow Wildlife Resources Commission (WRC) to adopt rules to respond to wildlife diseases. Of interest to our members is the provision that would allow the taking of beavers with bow and arrow and make changes governing the taking of deer. The original legislation would have allowed the taking of coyotes at night with artificial lights. That provision was removed.

S1465 (H1254) - Swine Farm Environmental Performance Standards/Funds (Sen. Charlie Albertson, D-Duplin) Provides that no new construction or expansion of a swine farm may occur unless it meets the performance standards for animal waste management systems that were adopted in 1998. These standards require that waste management systems: (1) Eliminate the discharge of animal waste to surface water and groundwater through direct discharge, seepage or runoff; (2) Substantially eliminate atmospheric emission of ammonia; (3) Substantially eliminate the emission of odor that is detectable beyond the boundaries of the tract of land on which the swine farm is located; (4) Substantially eliminate the release of disease-transmitting vectors and airborne pathogens; and (5) Substantially eliminate nutrient and heavy metal contamination of soil and groundwater. Existing lagoons may be replaced under very limited circumstances if they pose an imminent hazard. This bill also establishes the Lagoon Conversion Program, which will assist swine farmers in replacing their sprayfield and lagoon waste management systems with innovative systems. This program will be administered through the Ag Cost-Share Program. This bill also establishes the Swine Farm Methane Capture Pilot Program which will allow fifty hog farms to generate electric energy from methane gas captured from the farm and sell it to public utilities.

S1466 - Migrant Housing Safety/Health (originally titled Amend NCDOL Statutes) (Sen. Charlie Albertson, D-Duplin) This bill codifies some of the duties of the Commissioner of Labor with respect to preoccupacy certification and post occupancy inspection of migrant housing. It also provides that all beds in migrant housing must include a mattress in good repair with a clean cover. This bill will also allow migrants who are living in housing that is determined to be uninhabitable, but not expected to cause death or serious harm, to stay in such housing for up to 14 days while other suitable housing arrangements are found. If death or serious harm is expected then the owner of the migrant housing must find other housing for the same fee charged to the migrants

 

House

H107 - Abandoned Cemeteries - (Rep. Carolyn Justus, R-Henderson) Includes a provision that would allow access to abandoned cemeteries located on private property without consent of the landowner. To gain access, a person would file a Special Proceeding with the Clerk of Court in the county where the cemetery is located. The petitioner would have to show the following: (1)There are reasonable grounds to believe that the grave or abandoned public cemetery is located on the property or that it is reasonably necessary to cross the property to reach the grave or abandoned public cemetery; (2)The petitioner or the petitioner's designee is a descendant of the deceased, or that the petitioner has a special interest in the grave or abandoned public cemetery; and (3)The entry on the property would not unreasonably interfere with the enjoyment of the property by the landowner. This bill also provides new standards and prerequisites for the removal of graves.

H463 (S241) - Conservation Tax Credit Modifications (Rep. Paul Luebke, D-Durham) Clarifies that donations of interests in forestland and farmland conservation, watershed protection, conservation of natural areas, conservation of natural or scenic river areas, preservation of predominantly natural parkland and historic landscape conservation are eligible for the conservation tax credit. This bill also provides that, to claim the credit, a taxpayer must present with his tax return (1) a certification from NCDENR that the property donated is suitable for one or more of the purposes for which the tax credit is available; and (2) an appraisal report that complies with the Uniform Standards of Professional Appraisal or documentation of the tax value of the property as adjusted by the sales assessment ratio.

H487 - Exemption of Baler Twine from Sale Tax (Rep. Dewey Hill, D-Columbus) As the title states, this bill exempts baler twine from state sales and use tax, effective as to sales occurring on or after October 1, 2007.

H589- Poultry Products Inspection Act Penalties (Rep Dewey Hill, D-Columbus) Provides that the Commissioner of Agriculture may assess a civil penalty of not more than five thousand dollars ($5,000) against any person who violates a provision of the Poultry Products Inspection Act or any rule adopted thereunder.

H590 - Limit Liability of Agricultural Fairs (Rep. Dewey Hill, D-Columbus) Includes animal exhibitions at agricultural fairs in the definition of "agritourism" for the purpose of the state law limiting liability of agritourism operations for injuries resulting from the normal risks associated with such operations.

H810 - Clarify/Extend Animal Waste Management Provisions (Rep. Pryor Gibson, D-Anson) clarifies that County employees or SWCD employees that have federal engineering job approval authority to plan, implement or design BMP's qualify as Animal Waste Management Technical Specialists.

H820 - Interbasin Transfers (Reps. Lucy Allen, D- Franklin and Pryor Gibson, D-Anson) Will make it more difficult to get approval for the transfer of water from one river basin to another. The new law will require more notification of parties affected by a proposed interbasin transfer and require that future water use in the source basin receive a higher priority over future water needs in the receiving basin.

H1499 - Property Tax and PUV Changes and Studies - Allows farms raising "aquatic species" to qualify for present use value if they either contain 5 acres in actual production of aquatic species or produce at least 20,000 pounds of aquatic species per year. This bill allows the Revenue Laws Study Commission to study modifications and expansions to the present use-value system.

Bills Not Enacted and Not Eligible for Further Consideration (These bills either did not meet the crossover deadline and do not impact the state budget or they were unfavorably reported.)

 

Senate

S172 (H640) - Add Agribusiness Council to Ag Committees/Boards (Sen. Charlie Albertson, D-Duplin) - Would have added a representative of the North Carolina Agribusiness Council to various state boards and commissions, including the Present Use Value Advisory Board, the Tobacco Research Commission, the Beaver Damage Control Advisory Board and the Ag and Forestry Awareness Study Commission.

S214 - Annexation Referendum (Sen. Andrew Brock, R-Davie) Would have restored the requirement of a referendum of the owners of the land being annexed if 15% of qualified voters in the area sign a petition requesting a referendum.

S445 - Study Bill for Property Tax Relief (Sen. Jim Jacumin, R-Burke) Would have authorized the Property Tax Subcommittee of the Revenue Laws Study Commission to study methods used by other states to provide property tax relief to their residents.

S967 - NC Organic Opportunities Study (Sen. Janet Cowell, D-Wake) Would have directed the Department of Commerce to contract with a market research firm to conduct a study of the economic opportunities of expanding and developing organic agriculture production, marketing, and supporting business enterprises in North Carolina.

S1286 - Entry of Inspectors Onto Private Lands (Sen. John Snow, D-Cherokee) Would have allowed marine fisheries inspectors and wildlife protectors to enter onto private land without liability for the purpose of enforcing all laws within their jurisdictions.

S1477 - Inherently Dangerous Animals (Sen. Ed Jones, D-Halifax) Would have prohibited the keeping of a number of species of reptiles and other animals considered to be "inherently dangerous" such as tigers, bears, etc.. The original bill contained language that would have allowed local governments to regulate the possession of these animals and "any other animal."

 

House

H69 - Emissions Inspections Every Two Years (Rep. Jim Gulley, R-Mecklenburg) Would have changed the safety and emissions inspection of registered motor vehicles from an annual requirement to once every two years.

H87- Annexation Referendum (Rep. Charles Thomas, R-Buncombe) Would have required a referendum for involuntary annexation if requested by twenty percent of registered voters in the area to be annexed. This bill would have also prohibited involuntary annexations that divide a subdivision unless the subdivision already crosses municipal or county lines.

H104 - Annexation Referendum - (Rep. Nelson Dollar, R-Wake) Would have required a referendum for involuntary annexation if requested by ten percent of registered voters in the area to be annexed.

H243 - Annexation Notice (Rep. Larry Brown, R-Forsyth) Would have required that notices of involuntary annexation be sent by certified mail to affected landowners and that notices appear on cable access channel if one exists in the area.

H259 - Prohibit Smoking in Public and Work Places (Rep. Hugh Holliman, D-Davidson) Would have allowed local governments to prohibit smoking in all public buildings and in enclosed areas at most places of employment.

H261 - ETJ Voting (Rep Larry Brown, (R-Forsyth) Would have allowed all residents in the extraterritorial jurisdiction of a municipality to vote in municipal elections.

H347 - Local Government Regulation of Smoking (Rep. Martha Alexander, D-Mecklenburg) Would have enabled local governments to adopt ordinances or rules regulating smoking in public places.

H378 - Annexation/ETJ Residents Vote - (Rep. Bill Faison, D-Orange) Would have required municipalities to provide an opportunity for qualified voters within an area or areas to be annexed or brought into the municipality's extraterritorial jurisdiction to vote in an election for each officer of the municipality's governing board before the annexation or extension of the ETJ becomes effective.

H378 - Annexation/ETJ Residents Vote - (Rep. Bill Faison, D-Orange) Would have required municipalities to provide an opportunity for qualified voters within an area or areas to be annexed or brought into the municipality's extraterritorial jurisdiction to vote in an election for each officer of the municipality's governing board before the annexation or extension of the ETJ becomes effective.

H422 - Ensure Compliance With the Real ID Act of 2005 (Rep. Joe Boylan, R-Moore) Would have required a non-citizen of the United States who is present in the United States to present a valid passport from his country of origin and valid documentation showing his legal presence issued by the U.S. government to receive a drivers license from the Division of Motor Vehicles. This bill would have also required the DMV to verify social security documentation before issuing an identification card, a learner's permit or a driver's license.

H457 - No Annexations Outside ETJ (Rep. Larry Brown, R-Forsyth) Would have prohibited satellite annexations of land outside the extraterritorial jurisdiction of a municipality.

H962 - Legislative Research Commission Study Greenhouse Credits for Farming (Rep. Bill Faison, D-Caswell) Would have authorized a legislative research commission to study the feasibility and advisability of extending credits to farming as a business in any "cap and trade" program for greenhouse gas emissions the state may adopt.

H1052 - Hog Farms/Methane Gas (Rep. Russell Tucker, D-Duplin) Would have required electric power suppliers in the state to purchase all electricity generated by hog farms using methane gas up to a total of 25 megawatts per year at a cost of not more than 18 cents per kilowatt hour. After seven years of purchasing electricity at this rate, electric power suppliers would not be required to pay more than the avoided cost rate for power purchased from hog facilities. However some of the provisions were included in SB-3.

H1178 - Cities/Regulate Smoking (Rep. Pricey Harrison, D-Guilford) Would have allowed municipalities with populations of over 235,000 to regulate smoking in public places.

H1264 - Cost Sharing Tied to Energy at Swine Farms (Rep. Russell Tucker, D-Duplin) Would have directed the Soil and Water Management Commission to develop an Environmental Innovation Grants Program. Such program would provide for cost-share funding for the installation of innovative waste management facilities on swine farms.

H962 - Legislative Research Commission Study Greenhouse Credits for Farming (Rep. Bill Faison, D-Caswell) Would have authorized a legislative research commission to study the feasibility and advisability of extending credits to farming as a business in any "cap and trade" program for greenhouse gas emissions the state may adopt.

H1115 - Swine Farm Environmental Performance Standards/Funds (Rep. Carolyn Justice, D-Pender) Would have provided for the conversion of lagoon and sprayfield waste management systems on hog farms to new innovative systems as is proposed in S1465/H1264 above. Would have also created the Task Force for Innovative Swine Management Systems to help administer the lagoon conversion program and to evaluate markets for by-products derived from swine waste and methods for encouraging the production and use of renewable energy from swine waste.

H1485 - NC Illegal Immigration Prevention Act (Rep. Bryan Holloway, R-Stokes) Would have added a new Article to Chapter 95 (Labor) of the NC General Statutes entitled " Workplace Immigration Compliance."

H1508 - Broaden Law Providing for Cartways (Rep. Phil Haire, D-Jackson) Would have allowed owners of land-locked real property to petition a court for the establishment of a "cartway" over the property of another to gain access to their property for the purpose of a single-family homestead. Such homestead must consist of at least seven acres of land. Cartway proceedings are currently available only to gain access to land that is being used for farming, cemeteries and certain business enterprises.

H1588 - Real Property Partition Sale (Rep. Lucy Allen, D-Franklin) Would have required Courts to consider non-monetary concerns of non-petitioning cotenants, prior to ordering the sale of real property in order to effect a equitable partitioning of interests in a tract of real property. Included are considerations of how long the property has been in the family, whether one or more cotenants use the property for their livelihood and whether a homestead exists on the property. This bill would have also required a court to allow non-petitioning cotenants an opportunity to buy out the interest of the petitioning cotenant(s) to avoid the sale of the property.

H1600 (S967)- NC Organic Opportunities Study (Rep. Bill Faison, D-Caswell) Would have directed the Department of Commerce to contract with a market research firm to conduct a study of the economic opportunities of expanding and developing organic agriculture production, marketing, and supporting business enterprises in North Carolina.

H1818 - Agricultural Family Protection Act (Rep. Dan Blue, D-Wake) was introduced earlier this year as a result of the alleged pesticide violations by Ag Mart. The bill would have required additional record keeping for applicators of crop protection products. It would have also increased penalties for most farmers from $500 to $2,000 per violation, required a phone in migrant housing, and additional shower heads in worker camps.

Bills Still Pending and Eligible in the 2008 Short Session

 

Senate

S208 (H127)- Clean Water Act of 2007 (Sen. Walter Dalton, D-Rutherford) Would provide for a referendum on the issuance of general obligation bonds in the amount of $100,000,000 per year over the next five years for a total of $500,000,000. The proceeds from these bonds would be used to provide funds for grants and loans for wastewater and drinking water projects statewide. This bill is pending in the Senate Finance Committee.

S215 Litter Reduction Act of 2007 (Sen. Doug Berger, D-Franklin) Would place a ten-cent deposit on all beverage containers of more than four liters capacity and less than 50 liters capacity. The bill would create local redemption centers for the return of these containers for a refund of the deposit. This bill is pending in the Senate Commerce Committee.

S569 - Wildlife Conservation Property Tax Relief (Sen. Fletcher Hartsell, R-Cabarrus) Would allow a landowners whose property is assessed at present-use value to manage his land solely for wildlife preservation and not lose the land's present-use value eligibility as long as the landowner abides by the wildlife management plan. This bill is pending in the Senate Finance Committee.

S948 - Small Dairy Sustainability (Sen. Kay Hagan, D-Guilford) Would repeal the prohibition against "cow share" arrangements by which consumers are given access to raw milk for human consumption. This bill remains pending in the House Agriculture Committee.

S1203 - Present-Use Value Changes (Sen. Martin Nesbitt, D-Buncombe) Would allow present-use value property tax assessment for tracts of land consisting of at lease 10 acres that are managed under a wildlife management plan approved by the NC Wildlife Commission. This bill would also reduce the minimum acreage to 5 acres for agricultural land to qualify for present-use assessment and would clarify that land that was previously assessed at its present use value and is put into a perpetual conservation easement will continue to qualify for present-use value assessment if the price paid to the landowner for the conservation easement is no more than 50% of the fair market value of the donated property interest. This bill is pending in the Senate Finance Committee.

S1305 - Present-Use Value Easement Tax Credit (Sen. Joe Sam Queen, D-Haywood) Would reduce the tax rate by 50% for real property that is taxed at its present-use value and is the subject of a perpetual conservation easement. This bill is pending in the Senate Finance Committee.

S1309 - Property Tax Reform Act of 2007 (Sen. Dan Clodfelter, D-Mecklenburg) Among the provisions of this bill is a section that would require reappraisal of all real property in a county in any year following a year in which the average sales price of real property is less than 90% of the assessed value. This bill would also allow present-use valuation for some residential property located in subdivisions that are zoned for a use other than single-family residential. This bill is pending in the Senate Finance Committee.

 

House

H127 - Clean Water Act of 2007 (Rep. Bill Owens, D-Pasquotank) Would provide for a referendum on the issuance of general obligation bonds in the amount of $100,000,000 per year over the next five years for a total of $500,000,000. The proceeds from these bonds would be used to provide funds for grants and loans for wastewater and drinking water projects statewide. This bill is pending in the House Finance Committee.

H153 - Local Option Tax Menu (Rep. Mickey Michaux, D-Durham) Would allow local governments to put before their voters referenda on the following revenue measures: (1) One-cent sales tax; (2) Impact fees; (3)Prepared meals tax; (4)Occupancy tax; (5) Local income tax; (6) Land transfer tax. This bill is pending in the House Finance Committee.

H412 - Lower Present-Use Value Threshold (Rep. Susan Fisher, D-Buncombe) Would lower the acreage requirement for agricultural land from 10 acres to five acres in order to qualify for present-use value assessment for property tax purposes. This bill is pending in the House Finance Committee.

H441 - Felony/Steal or Cut Another's Timber (Rep. Ronnie Sutton, D-Robeson) Would make it a Class I felony for a person who is not the owner to knowingly and willfully cut down, injure or remove any standing, growing or fallen tree or log when the damage caused by the violation is greater than $1,000. The bill was amended to make the second offense a Class I felony. Violations which cause less than $1,000 damage would continue to be Class I misdemeanors. This bill is pending in the Senate Judiciary II committee. S393 passed Judiciary II Committee after being amended to raise the threshold amount to $2,500 and was re-referred to Appropriations.

H493 - Defense of Marriage (Rep. Tim Moore, R-Cleveland) Would provide for a statewide referendum on the November 6, 2007 to determine whether the North Carolina Constitution should be amended to define marriage as the union of one man and one woman at one time and to provide that such marriage is the only kind that is recognized as valid in this state. This bill is pending in the House Rules Committee.

H653 - Cap Variable Rate of Gasoline Excise Tax (Rep. Pryor Gibson, D-Anson) Would cap the variable wholesale component of the motor fuel excise tax at 12.4 cents per gallon. The variable component of the tax is currently the greater of 3.5 cents per gallon or 7 percent of the average wholesale price of motor fuel. This bill is pending in the House Finance Committee.

H878 - Eminent Domain (Rep. Dan Blue, D-Wake) Would provide for a statewide public referendum on the November 6, 2007 ballot to determine whether to amend the State Constitution to prohibit the use of eminent domain for economic development purposes. This bill is pending in the Senate Ways and Means Committee.

H1475 - Restore Cigarette Tax Stamps (Rep Dan Blue, D-Wake) Would provide for payment of cigarette taxes by stamp, limit the receipt and sale of non tax paid cigarettes, and limit retail sales. . This bill is pending in the House Judiciary II Committee.

H1889 - Present-Use Value System Modifications (Rep. Pricey Harrison, D-Guilford) Would allow present-use value assessment of real property that is managed for wildlife habitat under a written sound management plan approved by the NC Wildlife Resources Commission. This bill is pending in the House Finance Committee.

H1958 - No Taxes Until Annexation Services Provided (Rep. Nelson Dollar, R-Wake) Would provide that after an involuntary annexation, no property taxes may be levied until certain basic services are provided, and that no water and sewer assessments may be levied until the municipal government is prepared to provide those services. This bill is pending in the House Rules Committee

H2002 - Clarify Property Tax for Conservation Land (Rep. Pricey Harrison, D-Guilford) Would provide that real property held by land trusts for conservation purposes is not subject to property tax. This bill is pending in the House Finance Committee.

S1256 - 2007 Studies Bill - This bill would authorize or extend legislative studies of a number of issues, including the following:

-Regulation of Smoking by County Ordinance
-Inherently Dangerous Animals
-Regulation of Deer Hunting with Dogs
-The operations of the Golden LEAF Foundation
-Environmental Review, Permitting and Mitigation in the Construction and Expansion of State Highways
-Littering
-The Impact of Undocumented Immigrants
-Fire Ants
-Franchise Laws for Farm and Industrial Equipment Dealers
-Farmers' Cap and Trade Program for Greenhouse Gas Emissions
-Wind Energy Systems Permitting
-The Desirability and Feasibility of Providing Disaster Relief to Farmers
-The Impact of Partition Sales of Real Property
-Greenhouse Regulations
-Fruit Production

Even though the Studies Bill did not pass, existing Legislative Research Commissions may study any of the listed issues or other issues.

The Budget

The state budget was passed on July 27, 2007, nearly a month after the end of the fiscal year. The $20.7 billion absorbs the county Medicaid costs, and keeps the sales tax at its current level. It also gives counties new tax options, including a land transfer tax of up to 0.4% and a 1/4 cent sales and use tax. Counties may hold a referendum on either of these local option taxes, but may not have both. The budget proposal is $1.8 billion or 9.5 percent more than last year's $18.9 billion budget. Included were provisions to set aside $135 million for new college scholarships and tax credits for low-income families, to create a dedicated cancer research fund, and to spend $860 million in cash and debt on university building projects and land conservation. The sales tax on most purchases will remain at 6.75% but does allow another temporary tax - an increase on the income tax for the highest earners - to expire Dec. 31. Also included in the budget was additional funding for Gov. Mike Easley's signature education programs: the More At Four pre-kindergarten initiative, the effort to reduce class sizes and the new EARN scholars program that provides a debt-free college education to needy students. The biggest winners appear to be the counties with the costs of Medicaid being picked up the state by July 2008. The package includes language that gives counties the option to raise their sales taxes by a quarter-penny or increase their land transfer taxes from 0.2 percent to 0.6 percent if voters approve. Budget items that are of interest include the following:

Long term Care Insurance Tax Credit (the state's tax credit had expired and this allows the reinstatement of that credit)

Reserve for Manufacturers' and Farmers' Energy Tax Provisions - phased in over 4 years

The Beaver Management Program (BMAP) will continue to receive $349,000 through the Wildlife Commission with an additional $300,000 from the Department of Transportation.

A very contentious issue in the budget was the Senate's proposed transfer of supervision of the state research farms from NCDA&CS to the UNC Board of Governors for NC State University. The House budget contained no such proposal. The final budget contained no transfer but included a study of the issue to be conducted by the newly created Performance Evaluation Division of the General Assembly.

The following new appropriations were included in the budget:

NC Department of Agriculture and Consumer Services

Department of Environment and Natural Resources

Land for Tomorrow and Waterfront Access - Authorizes the issuance of $120 million in certificates of participation for the acquisition of State parklands, conservation areas and land to promote waterfront access. The debt is to be serviced through revenues deposited into the Park and Recreation Trust Fund and the Natural Heritage Trust Fund.

Rural Economic Development Center

Capital - NCDA&CS