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House | July 16, 2015 | Chamber | House Session

Full MP3 Audio File

The house to come to order, members to take their seats. This your chair for the chamber, sergeant at arm are instructed to close the doors. Members will please silence all electronic devices. The prayer will be offered today by Anne-Martha, let's leave assistance for members today listen to the gallery we please stand remain standing for the pledge of allegiance. Peace be with you. My prayer is in honor and tribute to all mothers and especially to my mother who would have celebrated her 82nd birthday today. Charlotte Garner Martha in God had faith to termination and love. She looks to her faith in God and edge that faith in love upon her children and student's hearts. With four children under 10 years old and many may theirs, she went back to college to become teacher graduated become that, my mother remembered and celebrated the people in her life in unique fine ways after battling and beating colon cancer in her 40s she succumb to the intense radiation in chemotherapy and she battled lung cancer weeks before her 64th birthday, happy birthday mam, please bow your heads as we pray. Father we thank you for this day and for all mothers who dedicate their lives to their families. Uplift them with your love, guide and strengthen them to fulfill your will, bless them with your peace that passes all understanding. Keep them and their loved ones in their care until we meet again. In Christ's name we pray, Amen. I pledge allegiance to the Flag of United States of America and to the republic for which it stands, one nation indivisible with liberty and justice for all. Honorable members the house will be in recess until 10: 45. The house will come back to order. The gentleman from Howard representative Luis is recognized for a motion. Thank you Mr. Speaker. The journal for July 15 has been examined and found to be correct, I move that it stand approved as written. Representative Luis moves that the journal for July 15 to be approved as written, those in favor will say aye. Aye. Those opposed no, the ayes have it, the journal is approved as written, ratification of the bills and resolutions the clerk will  prepare for read. Refers to following presentations of the government, by which the City Council receives citizens input all these amendments house bill 254 enact to extend national guard re-employment rights and members of national guards of other states. House bill 341 enact to add compounds and other substitutes to the control substance scheduled. Chapter bills will be noted. Members, our nurse of the day is [xx] Peacock form Durham, North Carolina. Mrs. Peacock would you please stand we're glad to have here with us today, thank you for being here. Messages from the senate, the clerk will read. House bill 350 will start driving [xx] in cities. Calendar. Calendar. Senate bill 678 clerk will read. Senators Gunn, Jackson senate bill 678 the bill to be [xx] debt collector status and more [xx] conform and federal fair debt collection practices act general assembly North Carolina enacts What purpose does the gentlemen form Cumberland Representative Szoka rise? To debate the bill The gentleman has the floor to debate the bill thank you Mr speaker. Ladies and gentleman this bill comes to us from the senate. It deals with debt collector laws and we are not talking about elections agencies, were talking about people who lend there own money and then attempt to collect the debt. The reason that this bill exist, is because there has been some confusion in the current North Carolina law and how it describes certain activities that debt collectors may in fact do. The intent of this bill it to make it very clear as to what debt collectors can do and what they can say

to people including third parties who are authorized by the person who owes the debt. The real purpose of contacting people when they are not making payments, isn't to harass them it's actually to collect the debt and prevent the debt from being unpaid going into collection going into judgement that's the whole purpose for this. There've been a lot of law suits in North Carolina because our laws are a little unclear that people have gone to the courts, hired attorneys just told them everything that this might have been more accurately called the not, full employment, Attorney and judges because we are trying to cut down on things going to court so it's really clarification I'd be happy to answer any questions ask that you vote green. For what purpose does the gentleman from Wake Representative Martin rise? To debate the bill the gentleman has authority to debate the bill. Thank you very much Mr speaker members I rise in opposition to this bill but first ones to acknowledge that it does do few good things one of which is as the gentleman from Cumberland said it provides has some certainty and I think bringing more certainty to the process is a good thing for both the lender and the borrower in particular it also provides a better process I think to facilitate communication between, to allow the lender to locate the borrower and that can be a good thing for borrower and actually help the borrower stay out of default because the concern would be if the lender can't find a borrower, and the lender wants to work with the borrower to prevent the bar from going into default, if they can't communicate with him then they are going to have no choice but to put the loan on revoke, and to this legislation will help address both those concern but I think a little bit more work needs to be done to it before its legislation then I can support I did speak senator [xx] yesterday about that possibility and he that he thought the bill was in defined form now but that didn't make any effort to do it, so at least one express to this body what my remaining concerns about the bill are, and the main one is it does unfortunately state back some of the protection that we do extent to borrow under the current law. Under the current law in order for the lender to communicate with third party and by third party of cause we mean someone other than the borrower, this could be a spouse, this could be a neighbor, this could be a boss or some other party also and under current law the lender can't do that before default am sorry, the lender can't do that unless they get written information from the borrower, or the borrower's lawyer and that information can only occur after the default. If this bill passes that's going to make a change and allow that written permission to be given at any time and on it's surface that may not sound like a problem, but as a practical matter what I think are very very small minority of lenders may do at the closing, at the long closing, where you're going to be presented with a stack of paper work. There is going to be a stack of papers documents for borrow to sign, and one of those documents is going to say I the borrower hereby permit the lender to make communications with any third party, and the bar is going to sign that. There is no requirement in this bill or any where else they requires the lender to tell the borrower that that form is optional so it opens up the potential for use and I think that we could all sit down and come up with some language that everyone would agree on that would eliminate that potential for abuse but still further the aim that both gentleman from Cumberland and I both agree our legitimate aims of this bill so that's why I am going to vote against it. And Mr. Speaker I wondered if the gentleman from Cumberland would yield to one question does the gentleman from Cumberland yield from the gentleman from Wake? I do. He yields. I need to be up frank with the body and to the gentleman he came up and spoke to me before hand and I mentioned to him that I think I had a question for him, but that I couldn't remember what it was and I told him that if I did remember what it was I would come tell him before hand. Halfway through my speech I remembered what the question is so I have unintentionally broken my word to you and if you don't want to answer my question I wont fault you. In committee yesterday though Rep. Szoka we talked about and asked the question but I think some to abdicates to this bill is that if this bill passes would it still be illegal for it to be a condition of granting the loan that the borrower signed

the written permission form referenced in this bill Thank you for the question I don't know the answer for that question to be entirely honest with you. The intent of the authorization content third party before along goes into default is to prevent a loan from going into default as you accurately pointed out, currently laws says you can't contact a third party to locate someone particularly in Cumberland county where we have a lot of military forks might take out a loan the PCS they moved to another state so mail doesn't show up because it doesn't get forward whatever the lender doesn't know where they went. Right now under statute they can't attempt to call a third party to find out where that person is, so the land's going to go under default actually it will lead to more defaults. What this does is try to clear that up and allows the lender to contact the third party they can do that now as you accurately point out,  they sign an authorization to do that, then we can prevent a default and individual in my example to surgery could be anybody and people move all the time particularly people who is going to apartments and makes to live in the apartment, here they move there  and now those who'll catch up, so what has happened under our current law is that there's been a lot of lawsuits debating this very points so I think this is an important point of the bill, I think maybe we just disagree, agree to disagree on this point, but I think overall it will help consumers a lot The speaker inquire the Chair. The gentleman may state his inquiry. Do I still have the floor from. The gentleman has the floor to continue debating Thanks for that Mr. Speaker and thank you representatives Zoko and again I apologize for breaking my words to inspire in that question on and I think representative Zoko will say that this is not his dog, he's just walking it, so it's not fair to expect him to know everything, but I like to state with my understanding of the discussion in committee was which when I asked the question of the advocates, would it be illegal for a lendor to require a has the condition of the loan that to borrowerr grant written permission to the lender to communicate with third parties, the response was that that will be illegal, and then just to finish up, again I agree with aims of this bill but I'm going to vote against in hopes that if we vote against it now we can tide up some of this language, clarify some of the protections we gave to our borrowers here and come back with the bill that will provide the certainty that representative Szoka and I both agree as necessary, thank you. For what purpose does the gentleman from Cumberland representative Szoka rise? To debate the bill the second time. The gentleman has the floor to debate the bill the second time. Ladies and gentlemen you've heard in essence what was the cracks of 40 minute discussion we had in J1 yesterday. I hope was able to answer that question so it clarifies for you what we're really trying to do here, and what we're trying prevent loans from going into default and one of the provisions in this is that we get permission form a borrower upfront to contact the third party when you go through the builders, a list of criteria that when they control that third party. I'd also like to add that although there are some reservations about this and certain members and other people. The center for responsible lending is neutral on the bill. Usually in my experience neutral means neutral. They're not for it, they're not against it, they don't see anything bad. Senate for response [xx] as we all know, looks out for the well being of customers and many types of lending situations, more [xx] so ones like this so I would say that they're stands and into this bill to be a neutral to be a positive, if they had any objections to this language either language we discussed running on much they would have summit brought it up, by now obviously they would have actually talked to there, [XX]she read to me yesterday that they are in fact neutral on this sir, I would like you to green on this Bill, thank you For what does the gentleman from Cleveland Representative Speciale rise? To speak on the bill The gentlemen has the floor to debate the bill I have to say I have to agree with the Representative Martin there on this, this could open up [xx] if isn't properly worded I'm going to vote against for that reason and I'm going to jump to third reading so what we can do it many many session we need to do to tech this up a little bit, so I going to ask that you vote against this and let's make sure we have the right protection, I agree with the edge of the bill I think it is a good bill that I do think need doesn't need to be tide up a little bit to keep a younger [xx] the military we are speaking generally younger forks which keeps them out of trouble, lets make sure that what needs to be accomplished can be accomplished but without running over the younger forks, thankful.   For what purpose does the gentleman from Gaston representative Torbett rise?   Speaker on the Bill Mr. Speaker.

The gentleman has debated to debate the Bill. That's my concern is well, it seems that we are leaning towards the presumption of differ when the person will actually not going to be foul in and simply find the availability to call people to ask about the of the intent of the borrower in the presumptive mode that could lead to other matters, other actions relative to the military, I think Representative Martin and Representative Szoka would agree that in certain clearance level activities that  good standing, good faith, good standing is very instrumental and critical towards obtaining those certain clearance in the monetary structure and the simple err of a possibility of going in to default could actually have that person called and have that special clearance removed, so I still think, it sounds to me that this  part of it is half baked and I cant support it, thank you. For waht purpose does the gentleman form Johnson Representative Daughtry rise? To speaker on the bill. Gentleman has the floor to debate the bill. Members  I don't have a dog in this fight but I was in the committee yesterday and we had a about an hour and a half debate on this bill and  they had all of the stakeholders there and they were all sitting there  including the military including those who support consumers, the Bank Commissioner was represented and I asked on three occasion if anyone want to speak in opposition to the bill, no one got up, I asked does anyone want to speak in favor of the bill, a number of people got up but there was no opposition any group regarding anything wrong with the bill in respect to may be an uninttended consequences it was well scrubbed and a lot of questions were asked and I don't think thats any reason to be worried about this bill at this point I'd argue you to vote green. What purpose does the gentleman from Craven representative [xx]   Speak a second term. Gentleman has the floor to debate the bill a second time The fact that it had to be debated a hour and a half I wasn't there but I would say that shows that there is some concern on it and i ask that you give it the benefit of the doubt that we can fix this with an amendment and that you vote no on it tonight. Further discussion and further debate is not the question for the house is the passage is the senate committee substitute for senate bill 678 on it's second reading, those in favour will vote Aye, those opposed will vote no, the clerk will open the vote the clerk will lock the machine and record the vote. 70 having voted in the affirmative and 38 in the negative, senate bill 678 passes it's second reading and will without objection. Objection. Objection. Haven't we heard the bill will be for third reading on Monday night's calendar. Members a couple of courtesies to the gallery, I would ask the pages to go ahead and come forward and while they're coming forward we'll do a couple of courtesies. First on behalf of the Chair as well as Representative Hastings and Hagar, the Chair wants to extend the courtesy of the gallery to a good personal friend and life long lesson in Rutherford county the former Sheriff there Philip Biers who also is a new member of the UNC board governance is also joined by his wife who is with us, we would like to thank you for being here would you please stand so we  properly welcome you for this today. Representative Ford are your guests here yet? On behalf of Representative Ford and  Johnson and Representative Pittman, the Chair is to exchange the courteous to the gallery to teacher and Fairbee of the Kannapolis City Schools who joined us alongside students from Kannapolis intermediate, Kannapolis middle first park elementary and Woodrow Wilson Elementary Schools would you all please stand so the we can welcome him as well, thank you for being here with us. Pages I want to thank you for all for your service this week I hope you have a great summer break and hope this week was enjoyable that you learnt a little something that more importantly that you maybe made some friends and had a good time while you were here. Heard great reports from the committee Chairs and from everyone else and certainly saw you all doing a great job. I'd ask my colleagues to join me in thanking you for your services this week. Notices and announcement.  Pages you are all excused, enjoy the rest of your summer. Members we are going to be receiving some committee reports, we are going to be adjourning subject to the receipt of committee report there or a number of bills that came out of finance. the chair intends those will be their own monday nights calendar, Tuesdays nights calendar once we get back after we adjourn. For what purpose does the gentleman from Guilford Senator Blest rise? Amendment of personal privilege. Gentleman is recognized to speak to a point of personal privilege the house will come to order. Thank you Mr. Speaker, members of

the house as most of you know North Carolina is the home of the 82nd airborne division America's guard of honor, America's 911 service and answer in response to crisis anywhere in the world and we are all proud of that division being right here and I just  thought that it was very fitting for the speaker to honor the 82nd airborne division by appointing 82 conferees to the budget committee. You finally cracked the code Representative Blest we though we are going to honor the 101st that we decide under the 82nd. For what purpose does the gentleman for Cumberland Representative Szoka rise? What purpose does the gentleman from Durham Representative Michaux rise? Just a brief moment of personal privilege. The gentleman is recognized to speak to a point of personal privilege. I understand now why we've not put on a conference committee, I was [xx] of it at first. Noted. Further notices and announcements. If not the gentleman from Harnet Representative Lewis is recognized to a motion. Mr. Speaker, subject to re-referrals of bills and resolutions, messages form the senate, committee reports, conference reports, I move the house now adjourn to reconvene on Monday July 20th at seven o'clock pm. Representative Lewis moves, seconded by Representative Michaux and the house do now adjourn subject to the receipt of messages from the senate committee report and re-referral of bills and resolutions to reconvene Monday July 20th at 7 P. M. Those in favor will say aye, those opposed no, the ayes have it, we stand adjourned.