Greater Raleigh Chamber Blog

After a hiatus, the Raleigh Chamber Government Affairs Department is back on the blog. We’ll be posting regular updates on what is going on in various halls of power that impact the business community. We will also be previewing upcoming Chamber events, sharing opportunities you may want to take advantage of, or sharing interesting ideas or concepts that may come into play in our region. ​

Want more information on what your Raleigh Chamber is up to? You can sign up for a variety of communications from us here. 

The Raleigh City Council took off for a summer recess but are now back in full swing. Here are a few things they discussed in their latest meeting on August 15:

• The council unanimously approved a spending plan that would see hundreds of millions of dollars spent to renovate PNC Arena, expand the Raleigh Convention Center, relocate Red Hat Amphitheater, begin the Cary Indoor Sports Facility, and other regional tourism projects. This was one of three votes from several elected bodies necessary for the projects to move forward, and a unanimous vote from the council shows they realize how important the projects are to keeping our region competitive and our quality of life high.
• The council heard an update on development plans for the future S-Line passenger rail service to Richmond, VA. The S-Line is part of a federal plan to improve connectivity between Raleigh and Richmond, but also to connect our city by rail to Washington, D.C. As the line gets up and running, the city wants to make sure that development around the rail stations that are going in is robust and equitable. Keep an eye on this project as it's going to further energize regions of the city that are already seeing a lot of attention like the Blue Ridge Corridor where PNC Arena’s renovation will spur lots of changes.

The Wake County Commissioners were also out for a summer break, returning mid-August. Top on their agenda was also a vote on allocating tax dollars towards the sports, conference, and tourism projects addressed by the city. After hearing an update from staff, the commission members similarly voted unanimously to approve the projects and move our region forward. In addition to the Raleigh City Council and Centennial Authority votes, our elected officials have shown a strong commitment to these projects and our region’s intent to chase larger events and opportunities for more people from out of town to experience our area. ​

It’s been all over the news, so we won’t repeat the details, but the General Assembly returned briefly after being out for many weeks to override several vetoes from Governor Cooper and advance a few select pieces of legislation. Rumors abound about when the General Assembly will finally debate a conference budget, but the current belief is it will be the week of September 11. Whether it will pass that same week or draw out longer is to be determined. ​

Don’t be surprised if a LOT of policy is packed into what would be considered a financial document. Legislators often find ways to pack in policy priorities that didn’t survive as independent bills. While there’s no guarantee what will be in there as the Senate leadership negotiates with House leadership, there will be plenty to digest when the bill language drops. Also of note is the tenuous start date for Medicaid expansion in NC - leadership has declined to split its start date out from the budget, which was the original deal that was made to get it passed.

​Staff have been hard at work preparing for the Chamber’s annual First Responders Appreciation Breakfast on September 12. This is an opportunity for the business community to show appreciation for those who risk their lives to save others in our community. Benefiting The 200 Club of Wake County, this year’s breakfast includes a keynote presentation by N.C. Department of Public Safety Secretary Eddie M. Buffaloe, Jr., and awards to heroes from each department for outstanding service in the previous year.
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Chamber staff work with representatives from all of Raleigh’s first responder agencies as well as members of the business to curate event content that is relevant to our members and first responder attendees. We hope you are able to join us in recognizing the members of our community who keep us safe!

What’s happening in the North Carolina General Assembly and around state government? Here’s an update on bill activity and how your business will be impacted.
 
As discussed in previous blogs, House Bill 320: Modernize Remote Business Access is an important piece of legislation that allows for the continuance of certain business transactions to be conducted electronically, beyond the COVID-19 emergency setting.

​Specifically, the bill would:

• Authorize remote meetings of corporation shareholders, nonprofit corporation members, and mutual insurance company policy holders.
• Authorize nonprofit corporations to conduct all business electronically.

 
Since our previous update, House Bill 320 has passed the Senate and is currently waiting for House concurrence with the Senate proposed changes. The ability to conduct business in a virtual setting remains important as employers adjust to operational changes brought about by COVID-19. We will continue to update you as the bill moves forward.
 
Additionally, a PCS for House Bill 776: Remote Online Notarization saw movement in the Senate last week. The Proposed Committee Substitute would allow authorized North Carolina notaries to remotely perform notarial acts using real time online communication technology. The notary and the principal to the transaction would be required to be physically located in North Carolina at the time of the notarial act. Unfortunately, the current Senate proposal limits the scope of documents that are eligible for remote notarization and therefore we are hopeful that the final bill reflects the original proposal that passed the House in May.

Like the remote business access issue, the remote notarization process was also part of COVID-19 emergency procedures granted to employers during the pandemic. The flexibility that is offered in the House version of HB 776 has been helpful to businesses that remain under some level of internal COVID-19 restrictions. We will continue to encourage the General Assembly to provide as much flexibility as possible for employers by allowing for more remote options. HB 776 is currently awaiting a hearing in the Senate Commerce and Insurance Committee, and we will keep you updated on further action.
 
Finally, The Raleigh City Council released its study group final report. The report focuses on Raleigh City Council election terms, compensation, and voter participation. Currently, Raleigh City Council has five district members, two at-large members and the mayor. Each member serves two- year terms instead of four- year terms. The study committee recommended a four-year term instead of a two-year term and adding one additional district member, increasing the Raleigh Council to nine members. This will avoid deadlocks, improve the decision-making process, and facilitate efficient policy development. The study committee also recommended council members receive a pay raise. Currently, Raleigh city Council members makes far less than their counterparts in Durham, Fayetteville, Greensboro, and Winston-Salem. The mayor currently makes $27,550 while council members make $19,725. If the study committee’s recommendation is approved, the mayor could make $45,911 and council members would make $37,248. Finally, the study committee recommended a voter engagement program to help voters feel more included in the election process. A few recommendations to increase voter engagement includes reallocating savings from shifting elections to even years to fund voter engagement, including voter engagement within City’s DEI and community engagement strategy and adding voter engagement to the City’s social media platforms. The study committee’s final recommendations are listed below.
 
The study group proposed six recommendations:
1. 4 -year terms
2. Staggered terms
3. Even year elections
4. Increase total compensation
5. Develop and implement voter engagement program
6.  Add 1 new district council position
 
We will keep you updated on further action as the Raleigh City Council moves forward with the recommendations of the study committee.
 
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.
 
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.
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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.
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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.  

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.