Greater Raleigh Chamber Blog

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, Senate Bill 462: CON/Threshold Amds. & Certificate Expirations passed both the House and the Senate and is currently awaiting the Governor’s consideration. Senate Bill 462 would increase the dollar threshold on diagnostic center equipment, major medical equipment, and capital expenditures for new institutional health services must exceed before they are subject to certificate of need review. It would also require projects subject to a certificate of need to initiate construction within a specified timeframe. This bill has three sections, and more information can be found below.
 
Section 1 of the bill would increase the dollar threshold various types of healthcare equipment and facilities must exceed before becoming subject to Certificate of Need review:

• For diagnostic centers, the aggregate dollar value of equipment with an individual value over $10,000 would be increased to $1,500,000. The current threshold is $500,000.
• For major medical equipment, the threshold would be increased to $2,000,000. The current threshold is $750,000.
• For capital expenditures for new institutional health services, the threshold would be increased to $4,000,000. The current threshold is $2,000,000.

 
Section 2 of the bill would require certificate of need holders to initiate construction on projects withing a specified timeframe. If the project is not initiated by the deadline, the certificate of need would expire. These projects include the following:

• Projects costing over $50,000,000 would have to initiate construction within 4 years of the certificate of need becoming final.
• Projects costing $50,000,000 would have to initiate construction within 4 years of the certificate of need becoming final.
• Projects that already have a certificate and a deadline for completion would have to be completed by that deadline.

 
Section 3 of the bill is a severability clause. We will keep you updated on further action from the Governor.
 
Additionally, House Bill 320: Modernize Remote Business Access moved forward last week and received approval from the Senate Commerce Committee. House Bill 320 would: authorize remote meetings of corporation shareholders, nonprofit corporation members, and mutual insurance company policy holders; authorize nonprofit corporations to conduct all business electronically; and make technical and conforming changes. House Bill 320 has been re-referred to the Senate Judiciary Committee for further review. We will keep you updated on further action as this bill continues to make its way through the General Assembly.
 
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.
 
The NC House began discussing an important piece of legislation that aims to lower health care costs by providing small businesses with additional health insurance options. Senate Bill 228: Allow Employers to Offer EPO Benefit Plans allows insurers to offer Exclusive Provider Benefit Plans where out-of-network services would not be covered.  The bill also establishes continuity of care provisions for EPOs. This transitional coverage would be available to individuals who are newly insured by the EPO and to individuals whose healthcare providers left the EPO's network.
​

1. In general, the insurer would have to continue paying the provider for treatment received within 90 days of the provider leaving the network.
2. If the care is related to surgery, organ transplantation, or inpatient care, coverage must be continued for 90 days after discharge.
3. If the care is related to pregnancy, and the insured was in her second trimester when the provider left the network, coverage must continue through 60 days of postpartum care.
4. Coverage for terminal illness must be extended for the duration of the insured's life.

 
Insurers may condition coverage for continuing care on the following:

1. The provider agreeing to accept reimbursement from the insurer and not charge the patient a greater cost-share.
2. The provider agreeing to comply with the insurer's quality assurance programs and policies for in network providers.

 
The bill received a unanimous vote from the NC Senate in June, and we are pleased to see the NC House begin to move it forward. It passed the House Insurance Committee last week and has been re-referred to the House Health Committee. Healthcare costs are a critical factor in an employer’s business model and particularly for small businesses that are often forced to make tough decisions on whether health care coverage is an option they can afford to provide. SB 228 is a great tool for businesses looking to add health care coverage to their employee benefit schedule. We will keep you posted on its progress.
 
Also, a PCS for House Bill 353: Winston-Salem/Forsyth and Wake Boards of Education passed the NC House last week. The PCS to House Bill 353 would do the following:

• Create staggered terms for members of the Wake County Board of Education, beginning with the election in 2022.
• Move the Wake County Board of Education election cycle to odd-numbered years, beginning in 2023
• Establish four-year terms for members of the Wake County Board of Education, beginning in 2023.

 
This bill passed the House on second and third readings and has been sent to the Senate for further consideration. We will keep you posted as the bill moves forward.
 
Finally, Gov. Cooper signed Senate Bill 507: Modify Business Corporation Act into law. We have reported on SB 507 in several blog posts as it progressed through the General Assembly, and we thank members of the House, the Senate, and Governor Cooper for their support. Please see the Raleigh Chamber Bill Tracking Chart for more information on the legislative history of SB 507.
 
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 around state government? Here’s a recap of activity and how your business will be impacted.
 
Last week, the North Carolina House passed its version of the state budget. As previously discussed, the NC Senate passed its version of the state budget and was awaiting the House to do the same. Both Chambers have laid out their plans to spend $25.7 billion in taxpayer money through the state budget. Both budgets focus on the same topics such as pay raises, education funding, emergency powers, etc. but there are many differences between the two budgets.
​
Some of the differences are listed below:
 

1. Raises for teachers and state employees
   1. The Senate plan includes a 3% raise for almost all state employees including teachers
   2. The House plan has a variety of raises which includes a 5.5% raise for teachers, a 5% raise for state employees, and a 2% bonus for retirees.
2. Tax Cuts
   1. The Senate wants bigger tax cuts now and the House wants lower tax cuts.
   2. The House wants to reduce the individual income tax from 5.25% to 4.99% compared to the Senate budget which proposes the rate go down 3.99%.
   3. In regards to the corporate income tax, the Senate plans to phase it out completely as opposed to the House which plans to lower the tax rate from 2.5% to 1.99%. This will help North Carolina compete regionally for businesses.
3. African American Monument Funding
   1. The Senate budget allocated zero dollars towards the African-American monument on the State Capitol grounds. Funding for the monument was not included in the House budget either but $650,000 was allocated in non-recurring funds for the Freedom Park project. The Freedom Park will commemorate the African-American struggle and experiences in this state. 
4. Emergency Powers
   1. Both the State Senate and House included provisions in their budgets that change the emergency powers of the governor.  The Senate budget includes a provision that would change state law to require agreement from the Council of State within 10 days of the governor issuing an executive order. If approved, the order would then expire 45 days later unless the General Assembly takes action to extend it longer. However, in the House budget, though there is a provision about emergency management, as the House proposal would require documentation of Council of State concurrence on issues that require it, and within 48 hours. These provisions have come about due to the governors powers used during the pandemic.

 
This week the Senate will vote to not concur with the House budget proposal and both chambers will move into a negotiating process. Once a final budget has been approved, it will move over to the Governor’s desk for consideration. We will keep you updated on further action as the budget moves 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 around state government? Here’s a recap of activity and how your business will be impacted.
 
Last week, The North Carolina House began discussing portions of their proposed budget, which is expected to see action this week in various House Committees and on the House floor. Like the proposed Senate budget, the House budget will focus on priorities that affect your business around transportation, workforce development, broadband access, education, health care, tax reductions, and unemployment. Once the House finalizes their proposed budged, they will work with the Senate to reach an agreement on the differences between the two proposals and send a final budget to Governor Cooper for his consideration. We will update you as soon as things move forward.
 
Additionally, Senate Bill 507: Modify Business Corporation Act which makes various changes to the NC Business Corporation Act, as recommended by the NC Bar Association, passed out of the General Assembly last week. The bill has six sections which include the following:

• Section 1 extends existing provisions relating to voting of shares held by a subsidiary to situations in which the subsidiary entity is not a corporation.
• Section 2 clarifies the authority of the board of directors to fix the compensation of directors for services in any capacity as director, codifying a decision of the North Carolina Business Court interpreting this statutory provision.
• Section 3 provides that, except as otherwise fixed in the articles of incorporation or bylaws, a majority of a board of directors constitutes a quorum.
• Section 4 allows the board of directors of a corporation with a single class of shares outstanding to change the corporate name without shareholder approval.
• Section 5 provides that in a proceeding brought in superior court by a shareholder seeking an appraisal, the court must determine whether the shareholder is entitled to appraisal rights, on which issue the shareholder would bear the burden of proof. If the court determines that the shareholder is not entitled to appraisal rights, the court would be required to dismiss the proceeding as to the shareholder.
• Section 6 makes several changes to the law governing corporate records and shareholder inspection rights, includes some of the following:
  • Eliminating the current requirement that particular records be maintained at the corporation's principal office.
  • Requiring all relevant records to be maintained in a manner permitting them to be made available for inspection within a reasonable time.

Senate Bill 507 has been presented to Governor Cooper for his consideration. We will keep you updated on further action from the Governor.
 
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 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 issued Executive Order 224: Implementing Measures to Address Covid-19 and Related Variants. This executive order came about due to the increase in COVID-19 cases and the emergence of the Delta variant. During his press conference, Gov. Cooper directed state government cabinet agencies to verify if their employees are vaccinated. State employees are now required to provide their employer with their vaccination status. Under the executive order, unvaccinated employees will be tested at least once a week and required to wear a mask. Gov. Cooper also urged private businesses to do the same. Executive Order 224 became effective July 29 at 5p.m. and will remain effective through August 31 at 5 p.m.
 
As COVID-19 cases continue to surge in NC, masks are now required indoors at all Wake County facilities for employees and the public, regardless of vaccination status. The mask requirement went into effect on Monday at all Wake County facilities. As previously stated, 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. The effort to reach the remaining 30 percent is underway. Wake County Public Health announced it’s expanding the COVID-19 vaccine outreach strategy to include bringing 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.
 
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.