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What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Last week during a COVID-19 press conference, Governor Roy Cooper announced that Executive Order 220: Extension of COVID-19 Measures to Reflect Public Health Safety Recommendations would expire. Executive Order 220 was an extension of EO 215 that lifted mask requirements in certain sectors of the private sector. During his press conference, Gov. Cooper and Dr. Cohen also announced an updated public school toolkit with guidance for masking which goes into effect July 30 at 5 p.m. Under their guidance

1. All schools should require that all children and staff in schools K-8th grade wear face coverings consistently when indoors.
2. Schools with K-8th grade should make mask use universally required regardless of vaccination status.
3. In high schools, face coverings should also be worn indoors by all individuals who are not fully vaccinated, including students grades 9-12, workers, teachers, guests, other adults, and children age two (2) or older, unless an exception applies.

 
Wake County continues to be a leader among areas within the state that have successfully worked with the community to ensure everyone has access to a vaccine of their choosing. County Commission Chair Matt Calabria recently announced that 70 percent of the eligible population has received at least one dose, leading the state. And the effort to reach the remaining 30 percent is underway. Wake County Public Health announced last week that it is expanding its COVID-19 vaccine outreach strategy to include brining vaccinations directly to homes. This allows Public Health staff, community workers and vaccinators the opportunity to have one-on-one conversations with residents, provide education and answer any questions they have prior to making the decision to get vaccinated.
 
As for legislative action last week, House Bill 366: Regulatory Act of 2021 passed the Senate and has been returned to the House for concurrence in the Senate Committee Substitute. The bill would amend state laws related to State and local government, agriculture, energy, environment, natural resources, and other various regulations. Specifically, the Senate PCS makes the following regulatory changes to NC law that may affect your business:

• Requires Pre-K operators to provide parents with information pertaining to public and private school options within the county they are located.
• Requires the NC Department of Environmental Quality (DEQ) to examine the needs associated with expanding the express permitting program to include additional types of permits typically required for job creating and real estate development or redevelopment activities.
• Requires the Division of Water Infrastructure within DEQ to prioritize projects that improve designated impaired waters of the state and that serve as a public water supply for a large public water system (over 175,000 service connections).
• Clarifies that proof of mailing is sufficient proof of notice for certain insurance policy or renewal cancellations by the insurer.

 
 Regulatory Reform has been an annual priority of the General Assembly since 2011. The overall goal is to reassess the burden that was placed on businesses over decades of agency oversight of the private sector. That level of oversight had grown to a level that far outpaced our neighboring states and placed additional cost burdens on North Carolina businesses. The balance between appropriate oversight and burdensome regulations is one that we will continue to monitor and provide you with updates.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

​On July 22, the Raleigh Chamber Government Affairs Department hosted its first in-person event. State of the City, County, & Schools, presented by Delta Dental, included remarks from Mary-Ann Baldwin, Mayor of Raleigh, Matt Calabria, Wake County Commissioners Chair, and Keith Sutton, Wake County Board of Education.
 
During the event, Mayor Baldwin’s remarks focused on the state of Raleigh and where we are as a business community. She addressed the changes surrounding the upcoming municipal election, the importance of greenway spaces during the pandemic, and the need for a commuter rail as big businesses are making their way to the Raleigh-Durham area.
 
Chair Calabria acknowledged the work Wake County is doing surrounding affordable housing, food security, employment, small business assistance programs, economic development, and its COVID-19 response. During his presentation, Chair Calabria expressed his gratitude to all of Wake County’s leaders as they worked diligently during the COVID-19 pandemic creating education initiatives such as Wake ThreeSchool and universal pre-K for low-income four-year-olds. Chair Calabria, along with the other Wake County Commissioners, is continuing to work towards a creating a greater way for residents to live, work, and learn.
 
Chair Sutton addressed the state of Wake County’s School System. During his remarks, he thanked the Wake County Public School System faculty and staff for their persistence in educating our students during the pandemic. In his presentation, Chair Sutton announced Wake County is working to onboard more bus drivers for the upcoming school year, new learning initiatives, and overcoming setbacks that many students and teachers experienced during remote learning.
 
The event was followed up by a moderated Q&A session, where Mayor Baldwin, Chair Calabria, and Chair Sutton had the opportunity to answer questions from the audience.
 
Make sure to register now for the Raleigh Chamber/CPI Security First Responders Appreciation Breakfast on Sept. 24. We will celebrate and show appreciation for our first responders, who risk their lives to save others.

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Over the past two weeks two important pieces of legislation have been enacted into law.  Senate Bill 208: Labor Law Changes, makes various changes to the labor laws of North Carolina that affect the laws governing you as an employer in the following ways all:

• Requires employers to notify employees, in writing, at least one pay period prior to changes in wages
• Provides that the maximum penalty for employers who violate record keeping requirements must not exceed $2,000 per violation
• Clarifies, that medical records obtained by the Department of Labor must be kept separate from an investigation except as necessary to support the issuance of a citation in an OSHANC enforcement proceeding
•  Makes clarifying changes to statutes addressing youth employment certificates and payment to separated employees

The Governor signed SB 208 into law on July 8. Please let us know if you would like more information on updates to North Carolina labor law or if you would like to connect with someone at the NC Department of Labor for further explanation into how they interact with employers.
 
House Bill 602: UNC Legislative Priorities/ HR Reports, is an omnibus bill that provides greater flexibility to institutions within the UNC system to manage administrative issues within the system. Highlights of the legislation include:

• Exempt’s finance, business office, and auditor professionals of UNC from most provisions of the NC Human Resources Act; Consolidates and eliminates certain reports.
• Gives the UNC Board of Governors temporary authority to implement an early retirement incentive program.
• Provides statutory authority for the UNC President to approve a reduction in force without approval of any other State agency.
• And provides temporary authority of the UNC Board of Governors to use non-state funds to provide State Health Plan premium payments for certain employees placed on emergency temporary furloughs.

The Raleigh Chamber would like to thank both Governor Cooper and the North Carolina General Assembly for supporting these bills as they align with the Chamber’s Government Affairs priorities.
 
Lastly, House Bill 951: Modernizing Energy Generation, moved forward last week and received House approval. The bill advances North Carolina’s “All of the Above” energy strategy while ensuring a balanced energy transition in North Carolina at a pace that ensures continued reliability and affordability.  A few important provisions in the bill would:
 

• Require retirement of certain coal-fired generating facilities: the Allen Plant located in Gaston County, Marshall Units 1 and 2 located in Catawba County, the Roxboro Plant located in Person County, Cliffside Unit 5 located in Cleveland County, and the Mayo Plant located in Person County.
•  Assign designated replacement resources for each of the retiring coal-fired generating facilities
• Require an electric public utility to use bond financing for $500,000,000 in certain energy transition costs related to retirement of units at the Allen Plant, Marshall Units 1 and 2, the Roxboro Plant, Cliffside Unit 5, and the Mayo Plant. This financing mechanism would not create any indebtedness for the State or any of its political subdivisions.

 
House Bill 951 has since passed the House and has been sent to the North Carolina Senate for their consideration. We will continue to monitor this issue and provide you with updates as the discussions move forward.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Here’s a recap on House Bill 366: Regulatory Act of 2021. This bill would amend state laws related to State and local government, agriculture, energy, environment, natural resources, and other various regulations. The Senate PCS for HB 366 replaces contents within agriculture, natural resources, and alcohol regulations. The Senate PCS for House Bill 366 has six parts.
 
1. Wastewater Reserve Priority: Changes the effective date regarding priority consideration for loans or grants from the Wastewater Reserve or the Drinking Water Reserve, from July 1, 2021 to August 1, 2021.

2. Clarification regarding use of insurance restatements in interpreting law: Adds new Section 8A, providing that a statement or restatement of the law of insurance in any legal treatise, scholarly publication, textbook, or other explanatory text does not constitute the law or public policy of the State.

3. Nonforfeiture Interest Guarantee Change, includes the following:
a. Adds new Section 8B. Amends GS 58-58-61, the Standard Nonforfeiture Law for Individual Deferred Annuities.
b. Revises the specifications provided in determining the annual interest rate for nonforfeiture amounts, making the determination to be the lesser of 3 percent per annum and the determined interest guarantee resulting from specified parameters provided, now including that the resulting interest guarantee cannot be less than 0.15 percent (was 1 percent).

​4. Allow distilleries to sell spirituous liquor produced by the distiller directly to consumers in other states, includes the following:

1. Revises the proposed changes to GS 18B-1105(a)(2), clarifying that the new provisions allow distillery permittees to sell, deliver, and ship spirituous liquor in closed containers at wholesale or retail to consumers in other states or nations, subject to the laws of those jurisdictions.
2. Changes the effective date of the proposed changes to GS 18B-800, GS 18B-1001, and GS 18B-1105; as well as the directive to the ABC Commission to amend its rules consistent with the proposed changes, to August 1, 2021 (was July 1, 2021.)

5. Waiver of post-construction conference for certain engineered wastewater systems, includes the following:
a. Adds new Section 12A. Amends GS 130A-336.1(j), concerning required post-construction conferences between the professional engineer designing the wastewater system and the owner of the wastewater system, the licensed soil scientist or licensed geologist, the certified on-site wastewater system contractor, the certified operator of the system, and representatives from the local health department and the Department of Health and Human Services, as applicable.
b. Allows for waiver of the required conference for Type I, II, and III wastewater systems, as listed in specified administrative rule, upon written request by the professional engineer and written approval by the owner of the wastewater system.
 
6. Approval of on-site subsurface wastewater systems, includes the following:

1. Adds new Section 12.1.
2. Amends GS 130A-343, regarding the approval of on-site subsurface wastewater systems.
3. Adds to the statute's defined terms prefabricated permeable block panel system, defined, among other things, to be a unit of rigid design, constructed and installed to withstand load requirements without collapse, compression, or deflection.

 
The Senate substitute for House Bill 366 was passed by the Senate Environment Committee and is awaiting action by the Senate Committee on Rules and Operations of the Senate. We will continue to monitor and keep you apprised of its progress. 
 
Last week, the House and Senate gave final approval to Senate Bill 208: Labor Law Changes, which makes various changes to the labor laws of North Carolina. Senate Bill 208: Labor Law Changes would do all the following:

1. Clarify that the medical records obtained under G.S. 95-133(b)(13) must be kept separate from an investigative file and must not be released to an employer under investigation except as necessary to support the issuance of a citation in an OSHANC enforcement proceeding.
2. Repeal the article addressing regulation of job listing services.
3. Makes clarifying changes to statutes addressing youth employment certificates and payment to separated employees.
4. Require employers to notify employees, in writing, at least one pay period prior to changes in wages, and (5) provides that the maximum penalty for employers who violate record keeping requirements must not exceed $2,000 per violation.

 
The bill has been sent to the Governor for final approval before becoming law. He has 10 days from July 1 to sign, veto, or allow the bill to become law without his signature.
 
Stay up to date on Government Affairs priorities, track legislative bills, and read our blog posts by visiting our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business may be impacted.
 
Last week, the North Carolina Senate laid out its 2021 Senate budget. This proposed budget focuses on finance and spending for North Carolina. Under the proposed budget, state employees including teachers and UNC system and community college employees would receive a 3 percent raise over the next two years. The budget also includes tax provisions found in House Bill 334.
 
Additionally, the proposed budget includes a $5 billion rainy day fund for any natural disasters or occurrences. The budget would spend $25.7 billion in 2021-22 and $26.6billion in 2022-23 and $4.3billion will be allocated to the State Capital Infrastructure fund over the next two years. The House begins their budget negotiations this week and ultimately a conference committee will be appointed to resolve the differences between the two chambers before the bill goes to the Governor for his consideration.
 
House Bill 680: Reenact Qualified Business Venture Credit also saw movement this week. The bill provides income tax credits for qualified business investments that are headquartered in a tier one or two county; or are in an opportunity zone. Additionally, the legislation increases the total amount of tax credits in a calendar year to $10 million (up from $7.5 million). The bill would become effective on Jan. 1 and contains an expiration date of Jan. 1, 2025. As of June 22, the bill was re-referred to the House Committee on Rules, Calendar, and Operations. The PCS for HB 680 maintains the former law's credit amount that was equal to 25% of investment with a maximum of $50,000 per individual. However, the PCS increases the statewide maximum to $10 million per year and increases the credit by 10 percent of the credit if the investment is a diversity business. 
 
The following types of investments are defined as qualified business:

1. Qualified business venture
2. Qualified grantee business that has received during the current year or prior 3 years funding from the Small Business Innovation Research Program administered by the US Small Business Administration or from a granting entity (i.e., certain tax-exempt corporations and universities)
3. Qualified licensee business that meets all of the following conditions:
   1. Gross revenues below $1 million
   2. Certified by a research university as currently performing under a licensing agreement with the university for the purpose of commercializing technology developed at the university

 
Governor Cooper issued Executive Order No. 216, which reinstated work search requirements for individuals receiving unemployment insurance. One proposal debated by the General Assembly that offered additional incentives for returning to work was Senate Bill 116: Putting North Carolina Back to Work Act . Senate Bill 116 would end the extra $300 weekly benefit payments to unemployed insurance claimants through September 6, 2021. Common ground was not met at the General Assembly. A conference report was filed to resolve the differences between the Senate and the House of Representatives on Senate Bill 116. The conference report has been adopted and is headed to the Governor’s office.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

Tom Barkin focused his talking points on on inflation and how the economy has struggled as a result of the pandemic. He discussed how behaviors during the pandemic, such as lack of spending, isolation, supply chain demands, and the closing of businesses resulted in the rise and fall of inflation over the past year. He believes we are in a temporary adjustment cycle, in which workers will return to the workplace, children will return to schools and fiscal payments will eventually retire. He projected our near term inflation pressure to ease as we go into the fourth quarter. Tom’s remarks were followed with by a discussion with our president and CEO, Adrienne Cole. Tom and Adrienne discussed job security, wage disparities, workforce development, and talent pipelines.

Neil Bradley gave his insight on today’s economy from a public policy perspective. He focused on congressional issues stemming directly from Capitol Hill such as; workforce shortage, right-sizing unemployment benefits, immigration, and federal spending. Neil stated that he believed our 2022 economy would be stronger than ever as a result of the “Great Resurgence”. The panel discussed top legislative issues affecting our state. Our panelists addressed North Carolina’s current state on government spending, education access, healthcare access, and workforce development.​

Make sure to save-the-date for our next event - the State of the City, County & Schools on July 22. This in-person event will be a great opportunity to hear priorities and policies from the following representatives: Mayor of the City of Raleigh, Chair of the Wake County Board of Commissioners, and Chair of the Wake County Board of Education.

You can register on our website. We hope to see you on July 22 at 11:30 a.m. ​

We have some great events coming up! Make plans now so you can join us in-person at the following events:

• July: State of the City, County & Schools
• August: Diversity, Equity & Inclusivity Conference
• September: Annual Meeting 
• September: Raleigh Chamber/CPI Security First Responders Appreciation Breakfast 

 
State of the City, County & Schools is your chance to hear from our local leaders as they discuss the state of Raleigh, Wake County, and Wake County Schools. Our speakers are:

• Mary-Ann Baldwin, Mayor of Raleigh
• Matt Calabria, Wake County Commission Chair
• Keith Sutton, Wake County Board of Education Chair

The event will be held on Thursday, July 22 from 11:30 a.m. - 1:30 p.m. at the Sheraton Raleigh Hotel.
Register here.

Diversity, Equity & Inclusivity Conference in partnership with Bank of America is a two-day virtual conference with the theme of, Speak Up, Take Action.
Conference attendees will explore topics from different focal points over the two-day conference. You’ll hear from a number of powerful local speakers and hear from two global leaders in DEI.

• Day 1 - Interpersonal: How individuals can learn to see their own biases, communication styles, and values and to recognize how this may affect others.
• Day 2 - Infrastructural: How organizations can build strategies to reimagine programs, practices, and policies that are inclusive for their employees, partners, and customers.

This event will be held Wednesday, August 25-26 from 8:30 a.m. – noon, virtually.
Register here.
 
Our Annual Meeting presented by Wells Fargo will include an overview of the Chamber’s accomplishments for the year, installation of the new chair of the Board of Directors, presentation of the A.E. Finley Distinguished Service Award, and a keynote presentation by Lynn Good, chair, president and CEO of Duke Energy.
The event will take place Tuesday, September 14 from 3-5 p.m.
Register here.
 
Raleigh Chamber/CPI Security First Responders Appreciation Breakfast is our annual celebration of first responders. This event welcomes the business community to attend and show how much we appreciate those who risk their lives to save others.
Representatives from the following departments plan to attend:

• Wake County Emergency Medical Services
• The Wake County Sheriff’s Office
• N.C. Highway Patrol
• The Raleigh-Wake County Emergency Communications Center
• The City of Raleigh Fire Department
• The City of Raleigh Police Department

The program includes a keynote presentation from Dr. Jose Cabanas, an award ceremony for local heroes, recognition of the twentieth anniversary of 9/11, and words of inspiration from local leaders such as the Mayor of Raleigh and Wake County Commissioner, Matt Calabria.
This event will be on Friday, September 24 from 7:30-9:30 a.m.
Register here.
​
We invite you to join us for these upcoming events. 

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Important discussions began last week around House Bill 951, a major piece of legislation designed to modernize our energy infrastructure and ensure that North Carolina has clean, reliable, and affordable energy generation. House Bill 951: Modernizing Energy Generation, is sound energy policy that moves our community forward in a multitude of ways. The bill strengthens existing customer-facing solar programs like Green Source Advantage, which businesses look to support sustainability goals and help reduce the carbon footprint. The bill also supports balanced energy transition in North Carolina at a pace that ensures continued reliability and affordability that businesses depend on.
 
The bill is a product of a lengthy stakeholder group that has been occurring over the past several months. While there will certainly be numerous changes as the legislation moves through the legislative process, we are hopeful that discussions will continue, and the General Assembly will address this vital issue for the future of our economy. The economic development efforts of our region benefit when there is an “All of the Above” energy strategy in place. We will continue to update you as the legislation moves forward.
 
For the past few months, the North Carolina General Assembly has been working to update North Carolina Labor Laws. Senate Bill 208: Labor Law Changes would do all of the following:
 

1. Clarifies that the medical records obtained under G.S. 95-133(b)(13) must be kept separate from an investigative file and must not be released to an employer under investigation except as necessary to support the issuance of a citation in an OSHANC enforcement proceeding.
2. Repeals the article addressing regulation of job listing services.
3. Makes clarifying changes to statutes addressing youth employment certificates and payment to separated employees.
4. Requires employers to notify employees, in writing, at least one pay period prior to changes in wages, and (5) provides that the maximum penalty for employers who violate record keeping requirements must not exceed $2,000 per violation.

 
The bill passed the Senate and is now being debated in the House. We will monitor the legislation as it moves forward so business leaders are aware of any significant changes to North Carolina Labor Laws.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

What’s happening in the North Carolina General Assembly and around state government? Here’s a recap of activity and how your business will be impacted.
 
Here’s an update on House Bill 334: Temp Align PPP Treatment to Federal Treatment. This bill would allow individuals and corporate taxpayers an income tax deduction for expenses paid using a loan forgiven under the Paycheck Protection Program. The Senate PCS for HB 334 replaces its contents with the JOBS Grant Program and Tax Changes for 2021. The Senate PCS for House Bill 334 has four parts.
 

1. JOBS Grant Program: Appropriates $1 billion of federal funds from the American Rescue Plan Act of 2021 to provide grants to NC businesses that received a COVID-related loan from the State or federal government. The maximum grant amount would be $18,750 and determined by multiplying the lesser of the award amount or $250,000 of the award by 7.5 percent.

 

1. Tax Policy Initiatives includes the following:
   • Reduces individual and corporate income taxes
   • Simplifies the franchise tax
   • Extends the sunset on the mill rehabilitation tax credits for two years
   • Modifies the gross premiums tax and the tax on cigars
   • Imposes a sales tax on peer-to-peer vehicle rentals
   • Changes the calculation of the late tax payment penalty
   • Exempts vaccines and cemetery property from the local property tax base

 

1. IRC Update and Related Changes: Updates the IRC reference date from May 1, 2020 to April 1, 2021. This change permanently reduces the medical expense deduction threshold from 10 percent of AGI to 7.5 percent. This Part also enacts a SALT cap election for pass-through entities and provides a separate net operating loss calculation for individual taxpayers.

 

1. Revenue Laws Study Committee Recommendations: Makes technical, clarifying, and administrative changes to the tax law as suggested by the Department of Revenue and recommended by the Revenue Laws Study Committee.

 
The Senate substitute for HB 334 passed the Senate and awaits a concurrence vote in the House. If the House does not concur with the Senate proposal, a conference committee will be appointed to negotiate the differences between the two approaches to PPP forgiveness and tax policy.
 
Another notable piece of legislation that made its way through the General Assembly last week was Senate Bill 722: Revise Municipal Redistricting/ Census. Senate Bill 722, as passed by the House, would delay the Raleigh municipal elections from October 2021 to November 2022 and move future Raleigh municipal elections to even numbered years.
 
Additionally, the House proposal changes the election to one of non-partisan plurality, meaning that candidates will not run under a traditional party ballot and the runoff requirement would be eliminated. The terms of the officers currently serving on Raleigh City Council would be extended until November 2022 or his/her successor is elected and qualified in 2022.
 
It is important to note that the original version of SB 722 passed by the Senate would have moved all municipal elections to March of 2022 and did not make exceptions for individual municipalities.
 
We will continue to monitor and keep you apprised of its progress. Particularly as it relates to partnership on future bond proposals.
 
To learn more about our GA priorities, track legislative bills, or to read our blog posts, you can visit our webpage or follow us on Twitter @RcgaJ, @tierra_rcga, or @raleighchamber.  

Developing leaders is important to the future success of the Triangle region. The Raleigh Chamber is leading the efforts to attract a highly skilled workforce and to develop your company’s future leaders.  For the last 50 years, Leadership Raleigh has been the premier program for preparing the leaders of tomorrow.

The ten-month program has consistently provided participants with an in-depth view of community issues, a unique opportunity to interact and discuss issues with regional business and community leaders, and apply their talents by joining professional associations, civic clubs, public boards, and commissions.
​
Leadership Raleigh participants are exposed to monthly sessions on a variety of issues, challenges, and opportunities. Monthly session topics include:

• Education
• Local economy
• Law enforcement
• Local/state government
• Human services
• Healthcare
• Media
• Quality of life

 
Applications are now open for Leadership Raleigh classes 43 and 44. The deadline to apply is July 16 by 5 p.m. Applications, program calendar, and more information are available online at www.leadershipraleigh.org.
To hear more about the program directly from alumni, we invite you to register for our next Leadership Raleigh Information Session on June 10 starting at 8:30 a.m.

For more information regarding Leadership Raleigh, email Chauncey Bowden or call 919.664.7036.