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Senate | July 2, 2013 | Chamber | Session Part 1

Full MP3 Audio File

The Senate will come to order. Sergeant at arms will close the doors. Members will go to their seats. Members and guests in the gallery, please silence all electronic devices. Leading the Senate in prayer is the Reverend Peter Milner, Senate Chaplain. All members and guests in the gallery will please stand. [SPEAKER CHANGES] Let's pray together. Heavenly Father we come before you and you know what's on this calendar today, Lord, way before we did. Lord, why does the gate that leads to destruction and narrows the path that leads to life. Lord, what is our path? We seek your wisdom for walking on that path. None of us know that path. There are so many people here with so many opinions, so many great ideas, it's hard to hear what's actually the right path sometimes. You actually are that path, Jesus. You are that narrow little road, and you have a love for us that shines like 10,000 suns. A love of God that is the hymn of this road. The crippled can come and they can sing this hymn so let the needy join this throng, let the widowed here in hope and bring every wonder on this table that will come. You will not send us away empty handed. Amen. [SPEAKER CHANGES] Senator Berger is recognized for a motion. [SPEAKER CHANGES] Thank you, Mr. President. The journal of Monday, July 1, 2013 has been examined and is found to be correct. I move that we dispense with the reading of the journal and that it stand approved as written. [SPEAKER CHANGES] Without objection, the journal for July 1st stands approved as written. Senators, we have leaves of absence today granted for Senators Jenkins, Robinson and Senator Don Davis. Senators, we do have a nurse of the day with us today. Our nurse is Dr. Patricia Queen of Asheboro, North Carolina. Dr. Crane if you'll please stand and be recognized. Thank you so much for your service to the Senate today. On the motion of Senator Tamara Barringer of Wake County the chair is happy to extend courtesies of the gallery to Mike Dorman, founder of MMIA, Military Missions in Action, an organization dedicated to helping wounded veterans with projects that include homebuilding and remodeling for handicapped accessibility to providing shoeboxes to soldiers. Mike was awarded the Presidential Citizen's Medal in 2012 and the AAAA Edward Kennedy Community Service Award and the 2010 Newman's Own award. At this time I'd like to recognize Senator Ron Rabin. [SPEAKER CHANGES] Well, Mike, on behalf of myself, Senator Barringer and Senator Barefoot, congratulations to you on the award and welcome to the balcony and into the gallery. I'd like everyone to know I had the privilege of attending the ceremony in ?? that honored Mike for his work with the MMIA. After listening to the testimony of his friends, his neighbors and his family and coworkers, it was evident that his being awarded the Presidential Citizen's Medal was more than deserved. His efforts on behalf of wounded veterans and his community service are in the best traditions of our American way of life. It is an honor and a privilege to know Mike and I wish him well as he continues with his work. Mike, just be sure that you can call on me for sure and I know the other Senators involved, to help in any way that we can. Thank you and God bless you and America. [SPEAKER CHANGES] Mr. Dorman, please stand and be recognized. Senator Barefoot, for what purpose do you rise? [SPEAKER CHANGES] Moment of personal privilege. [SPEAKER CHANGES] Senator, you have the floor for a point of personal privilege out of order. [SPEAKER CHANGES] Thank you, Mr. President. Today I would like to recognize citizens of the town of Garner who have joined us here in their lovely blue t-shirts. I represent the town of Garner and its been a real privilege.

Privilege. And, I’ll tell you. Because, that’s where my parents are from. I never dreamed in a million years that I would represent the area that my parents grew up in. It has been quite a privilege. What’s important is that on June the 16th, a couple of weeks ago, Garner, North Carolina was recognized as a 2013 All America City by the National Civic League. Garner was one of ten communities across the country to win this award. Garner is the first locality in the triangle to win the award since Durham in 1982-1993 and the first Wade County municipality to earn the award since Raleigh in 1974 and 1975. The award is often called the Nobel Prize of civic accomplishment. In a video presentation, the 2011 American Idol winner Scotty McReary of Garner, described Garner’s three best projects that have resulted in significant local impact and action planning within the past five years. The Garner Veterans Memorial at Lake Benson Park. The Community of Hope Charity operating out of First Baptist church of Garner, and the Garner performing arts center among many other things. I can tell you that I’m extremely proud to recognize them for their great accomplishments. Garner has a brand, and that brand is a strong community. With that, Mr. President, I would like to send forth a Senatorial statement? [SPEAKER CHANGES] You can send forth your statement, Senator. [SPEAKER CHANGES] And I would also like for the body to join me in congratulating the town of Garner, their staff, mayors, community members, economic development officers, chamber members, in being a 2013 All America City. (clapping) [SPEAKER CHANGES] Reports of standing committees. Senator Tucker, for what purpose do you rise? [SPEAKER CHANGES] Yes sir, to send forth a committee report. [SPEAKER CHANGES] Senator Tucker, you can send forth your report. The clerk will read. [SPEAKER CHANGES] Senator Tucker for the state and local government committees to passing. House bill 191 on Griffin de-annexation. Favorable. [SPEAKER CHANGES] House bill 191. Finance. Senator Jackson, for what purpose do you rise? [SPEAKER CHANGES] To send forth a committee report, Mr. President. [SPEAKER CHANGES] Senator Jackson, you can send forth your report. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] The clerk will read. [SPEAKER CHANGES] Senator Jackson from the agricultural, environmental, and natural resources committee submits for passing. House bill 15 committee substitute number 1. The favor asks to the Senate committee substitute bill titled. An act to facilitate the use of vehicles as for law enforcement for providing emergency responses provided by the division of parks and recreation and the department of environmental and natural resources, the North Carolina forest service of the department of agriculture and consumer services. Direct the department of public safety to allow prisoners to continue clean up in mitigation efforts in connection with a state of emergency declared in this state. And amend the laws governing the assignment of the state owned motor vehicles. House bill 321. Committee substitute number 1. Unfavorable as to the committee substitute bill number 1, but favorable as to the committee substitute bill title. An act to repeal the requirement in local government developing and maintaining the solid waste management plan and exempt certain landfills from the requirement that they obtain the same size to operate from the local government in limited circumstances. [SPEAKER CHANGES] House bill 115 and 321 calendar. Senator Davis, for what purpose do you rise? [SPEAKER CHANGES] To send forth the community report. [SPEAKER CHANGES] Senator Davis you can send forth your report. [SPEAKER CHANGES] Thank you Mr. President. [SPEAKER CHANGES] The clerk will read. [SPEAKER CHANGES] Senator…

[0:00:00.0] Today Davis making to Mr. Passage for the state or local government committee House Bill 417, Committee Substitute number 2, modifies internal auditing stat favorable. House Bill 546 ___[00:14] graded school district favorable. [SPEAKER CHANGES] House Bill 417 appropriations base budget and House Bill 546 calendar. Senator Gun what purpose you have? [SPEAKER CHANGES] Thank you Mr. President to send forward the committee report. [SPEAKER CHANGES] Senator you can send forward your committee report, the clerk will read. [SPEAKER CHANGES] Senator Gun for the Commerce Committee submission passage House Bill 474, redeposit government funds into insurance deposit account, favorable. House Bill 761, Committee Substitute number 1, Exempt Well K'ors/Electrical K'ors Lic Reqs, unfavorable as to Committee Substitute Bill number 1 the favorable has to Committee Substitute Bill. House Bill 476, Committee Substitute number 2, Rewrite Underground Damage Prevention Act unfavorable as to Committee Substitute Bill number 2 with favorable has to Committee Substitute Bill. House Bill 796: Exempting certain Columbariums Cemetery act unfavorable to Committee Substitute Bill the favorable to Committee Substitute Bill. House Bill 616, Committee Substitute number 1, Transitional Mortgage Loan Originator, unfavorable to Committee Substitute Bill number 1, the favorable has to Committee Substitute Bill. [SPEAKER CHANGES] House Bill 474, 761, 796 and 616 calendar, House Bill 476 finance. Senator Apodaca what purpose you has? [SPEAKER CHANGES] To send forward the committee report. [SPEAKER CHANGES] Senator Apodaca you can send forward your committee report, the clerk will read. Senator Rabin Hornet could I get you to turn off your microphone? Thank you. [SPEAKER CHANGES] Senator Apodaca for the rules and operation of the senate committee submission passage, House Bill 214: Amend real estate license laws records favorable. [SPEAKER CHANGES] House Bill 214 calendar. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator Apodaca what purpose you has? [SPEAKER CHANGES] Motion please. [SPEAKER CHANGES] Senator Apodaca has the floor for the motion. [SPEAKER CHANGES] Mr. President our bills read in today by the reading clerk that are going on the calendar moved that then will be placed on today’s supplemental calendar, I don’t think we have enough bills on this one. So, I think both get up a bit… [SPEAKER CHANGES] Without objection so ordered. [SPEAKER CHANGES] Thank you Mr. Speaker. [SPEAKER CHANGES] Senator is upon the motion, Senator Pate of ___[02:57] and Wayne County the Chair is happy to extend courtesies of the gallery to the Mayor, City Manager, City Attorney and Chairman of Green ___[03:06] Utilities Commission and the Commission Attorney if you are with us today please stand and be recognized. [Applause] Senators we are go ahead and move right into our calendar, we have the length even today, and start with local bills fourth reading… [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator Apodaca what purpose you has? [SPEAKER CHANGES] Motion relative to the calendar. [SPEAKER CHANGES] Senator Apodaca has the floor for motion. [SPEAKER CHANGES] Thank you Mr. President, the House Bill 418: Buncombe Culture & Recreational Authority to be remove from today’s calendar and placed on about Tuesday the 9th calendar. [SPEAKER CHANGES] Without object so ordered. [SPEAKER CHANGES] Thank you Mr. President. A couple of additional motions I wanna up. [SPEAKER CHANGES] You may. [SPEAKER CHANGES] House Bill 194: Allow PAVE Certification/Veterinary License. Committee on rules it has to be removed and re-referred to committee on finance. [SPEAKER CHANGES] Without objection so ordered. To start with our local bills calendar second reading ___[04:11] our bill, House Bill 529, the clerk will read. [SPEAKER CHANGES] House Bill 529: ___[04:21] county occupancy tax authorization. [SPEAKER CHANGES] Is there any discussion or debate? [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator Walters what purpose you has? [SPEAKER CHANGES] To speak on the bill. [SPEAKER CHANGES] Senator Walters has the floor to speak on the bill. [SPEAKER CHANGES] Members this is a bill asked by the ___[04:35] County Commissioners and two-thirds it goes to travel and tourism ___ County and remained to tourism related expenses, I will ask for your support. [SPEAKER CHANGES] Is there any further discussion or debate, hearing none, the question before the Senates, Senator Apodaca what purpose you has? [SPEAKER CHANGES] Senator Walters you have a question. [SPEAKER CHANGES] Senator Walters do you yell? [SPEAKER CHANGES] Yes, Sir. Do they have hotels in ____[04:56] County? [SPEAKER CHANGES] My understanding… [0:04:59.8] [End of file…]

Yes, sir. [SPEAKER CHANGES] So you never, follow up. You've never been behind there to see. [SPEAKER CHANGES] What I think Senator Jenkins is actually in a hotel now, he asked me to run the bill. [SPEAKER CHANGES] OK, thank you senator. [SPEAKER CHANGES] Further discussion or debate? Hearing none, the question before the Senate is the passage of House Bill 529 on its second reading. All in favor will vote aye, opposed will vote no. 5 seconds will be allowed for the voting. The clerk will record the vote. 34 having voted in the affirmative and 13 in the negative, House Bill 529 passes its second reading. It will remain on the calendar. Moving on to non-local, local bills, second reading, House Bill 404, clerk will read. [SPEAKER CHANGES] House Bill 404, Camden local stormwater feeds. [SPEAKER CHANGES] Further discussion or debate? Hearing none, the question before the Senate is the passage of House Bill 404 on its second reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. House Bill 404 passes its second reading and without objection will be read a third time. [SPEAKER CHANGES] The North Carolina General Assembly enacts. [SPEAKER CHANGES] Any discussion or debate? Hearing none, the question before the Senate is the passage of House Bill 404 on its third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. The ayes have it. House Bill 404 passes its third reading. It will be enrolled. Moving on to public bills, third reading roll call bill, Senate Bill 480, the clerk will read. [SPEAKER CHANGES] Senate Bill 480, UNC Capital Improvement Projects. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Committee Substitute for Senate Bill 480 on its third reading. All in favor will vote aye, all opposed will vote no. 5 seconds will be allowed for the voting. The clerk will record the vote. Gunn, aye. 47 having voted in the affirmative and none in the negative, Committee Substitute for Senate Bill 480 has passed its third reading. The amendment will be engrossed and it will be sent to the House. Public bills, second reading, roll call bill, House Bill 816, clerk will read. [SPEAKER CHANGES] House Bill 816, Tobacco grower's assessment act. [SPEAKER CHANGES] Senator Jackson is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President. Members, this bill has passed the House unanimously, which I don't think many have, and I know of no opposition to this bill as it's currently written. This is a total voluntary assessment and I would ask for your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute for House Bill 816. All in favor will vote aye, all opposed will vote no. 5 seconds will be allowed for the voting, the clerk will record the vote. Ford, Ford, aye. 47 having voted in the affirmative and zero in the negative, Senate Committee Substitute for House Bill 816 passes its second reading and it will remain on the calendar. House Bill 998, the clerk will read. [SPEAKER CHANGES] House Bill 998, tax deduction act. [SPEAKER CHANGES] Senator Berger is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President. Members of the Senate, we now come back to House Bill 998, if you'll recall a few weeks ago we had this bill in a different form on the floor, passed it on second reading and from that point forward we have been attempting to work out differences that we have with the House on the bill, and I'm not going to go through the bill in its entirety. What I want to do is give you an idea of some of the changes from the bill that you heard a couple of weeks ago and how we've made modification that I believe moves us closer to where the House is or where the House was when House Bill 998 passed that body. The first thing is the personal income tax rate. We continue to go with a flat rate but instead of the ultimately 5 1/4% number that we had in our previous version of this bill or the 5.9% rate that the House had in its bill, this current version has a personal income tax rate of 5 3/4%, again, a movement towards the House position. Secondly, on charitable contributions, we have moved to the House position on charitable contributions so that for individual taxpayers 100% of charitable contributions are deductible against their income.

With reference to social security, we have adopted the house position on that. We have moved to the fact that social security would not be subject to taxation, no change in current law. With reference to mortgage interest and property tax deduction, the provisions in this bill would provide for a limited deduction of mortgage interest and property taxes up to 15,000 dollars for folks who are married filing jointly. Lower numbers for heads of households or for single taxers. With reference to the 50,000 dollars small business deduction, which is a provision that was implemented by this body for small businesses. We would continue that for the 2013 tax year which we are halfway through. It would be eliminated beginning in 2014. That maintains the Senate position, the house would have eliminated that in 2013. With reference to food tax, we make no change to the local imposition of food tax. We make no change with reference to those local revenues for cities and counties. In connection with the corporate income tax, we modified the position that we had in the original bill. In that bill, we phased out the corporate income tax over four years. This bill phases it out over five years. With reference to the franchise tax, and the business license fee, we continue to eliminate the franchise tax for S corporations and we make S corporations and LLC’s subject to a new business license fee that ultimately will be… Starts out at $400 and then moves up to $500. With reference to the franchise tax on C corporations, we move that tax down from $1.5 per thousand to 75 cents per thousand. With reference to local privilege taxes, we adopt the house position and hold local governments harmless with regard to local privilege taxes. With reference to a house position which would impose or expand the sales tax base to service contracts, we adopt the house position in this bill and do likewise. On the non-profit refunds which a lot of you heard a lot about. We modified the Senate position substantially so ultimately we phase down the refund, but we phase it down to point that non-profits that receive a refund of 2.85 million dollars or less will receive 100% of their refund. Those who would normall receive a refund in excess of 2.85 million dollars would ulitmately not receive any refund for sales tax they paid above that amount. This will make a huge difference for the rural hospitals, which I’m sure a lot of you have heard from. Make a big for most of the private colleges and universities and I would say virtually every church and religious institution in the state would receive their full refund as they do presently. The bill also has an additional provisions and that additional provision is that it does cap the gas tax for a period of two years. That’s something that is new to this version of the bill and not something that was in the house bill. The bill itself, based on projections from our non-partisan staff, fiscal research staff, would provide for revenue growth of 3% in 2014-15. 3.1% in 2015-16. 3.7% in 2016-17 and 4.3% in 2017-18. What that means is that the projected revenue growth on a year over year basis is at least 600 million dollars per year. That is revenue growth to address any needs for increased population and inflation with reference to state government expenditures. What I’d like to say is that there’s been a good deal of work done on trying to find some common ground between what Senate was and what the house has been. There is, I think, a substantial movement in connection with this bill. The bill itself will help North Carolina in areas that we desperately need help.

...we have heard over and over again about how our tax rates are an impediment to job creation, that the fact that we have the highest marginal income tax rates in the southeast creates real problems from a competitive standpoint for us. And that we have the highest corporate income tax in the southeast creates those same sorts of problems. It is my belief and I think the belief of a number of other folks, that passing this substantial tax reform and substantial tax reduction to allow the people of North Carolina and the businesses in North Carolina to keep more of their money is going to have a substantial positive impact on our economy and a positive impact on job creation. Because as I said in the Finance Committee yesterday, is what we want to do is we want to create an environment that is such that businesses, small and large, can be productive and can be profitable. Because businesses that are productive and profitable can grow. Businesses that are productive and profitable will employ people. You don't have employees if you don't have employers. What we want to do is increase the opportunity employers to be successful and when they're successful, they will create more jobs and they will hire more people. I urge your support for the bill, be more than happy to answer any questions anyone has, and Mr. President, I understand that Senator Rabin has an amendment. Speaker Changes: Thank you, Senator. Senator Rabin, for what purpose do you rise? Speaker Changes: Thank you, Mr. President. To amend the bill. Speaker Changes: Senator Rabin, you can send forth your amendment. The clerk will read. Speaker Changes: Senator Rabin of Brunswick moves to amend the bill. Speaker Changes: Senator Rabin's recognized to explain the amendment. Speaker Changes: Thank you, Mr. President. This amendment does two things. In a few places it has purely technical corrections and in three places it has clarifying changes. I'll go over those clarifying changes. On page two, line twenty-four, the clarifying change notes that only the main hospital at UNC Chapel Hill is included in the state tax refund. Second clarifying change is on page four, I believe, line three, the clarifying change defines the utilities covered in that section. The final change is the final part of the amendment. which changes the length and time of the duration of the gas tax cap to two years rather than one year. It was... My original intention was to make that two years than it was written as one year and the change is that the gas tax will be capped for two years. I'd be happy to answer any questions. Thank you, Mr. President. Speaker Changes: Further discussion or debate. Senator Stein, for what purpose do you rise? Speaker Changes: To see if the amendment sponsor will yield to a question. Speaker Changes: Senator Rabin, do you yield? Speaker Changes: I yield. Speaker Changes: Thank you. Senator Rabin, is there a fiscal note for this? What is the impact to the general fund if we were to pass this amendment? On the gas tax, sir? Speaker Changes: There is no physical note attached to that, but I can give you off the top of my head, you know the gas tax of course went up by statute yesterday one tenth of one cent. Of course, a penny on the gas tax is about 10 million dollars, but that will in six months be about 3.3 million in revenues. Speaker Changes: Follow up? Speaker Changes: Senator Rabin, do you yield? Speaker Changes: Yes, I yield. Speaker Changes: So is the only provision that affects revenues in this the gas tax piece? Speaker Changes: Yes. Speaker Changes: Follow up? Speaker Changes: Senator Rabin, do you yield? Speaker Changes: Yes, I yield. Speaker Changes: Thank you, Senator Rabin. Just to be sure I understood, you said it was 3.3 million in the second year? Speaker Changes: About 3.3 million actually that should be this year, between now and January. Speaker Changes: Thank you very much. Speaker Changes: Thank you. Speaker Changes: Any further discussion or debate? Hearing none. Question before the Senate, passage of Amendment One. All in favor vote aye. All opposed vote no. Five seconds will be allowed for the vote. The clerk will record the vote. Woodard, aye. Bryant, aye. Tarte. Forty-six having voted in the affirmative and zero in the negative, Amendment One is adopted. The bill as amended is back before the body. Is there anyone further discussion or debate? Speaker Changes: Mr. President? Speaker Changes: Senator Blue, for what purpose do you rise? Speaker Changes: Will Berger yield? Speaker Changes: Senator Berger, will you yield?

Yes. [SPEAKER CHANGES] Thank you, Senator Berger. In listening to your comment, you indicate that you had changed the cap on the amount of sales tax refunds that the larger nonprofits would receive, or are receiving currently. Is that correct? [SPEAKER CHANGES] No. We changed the cap from the bill that was heard in the Senate a couple of weeks ago. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Senator Berger, do you yield? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] And so now that, you say, will be 2.85 million rather than whatever the other amount was? Just to complete the question, how and why did you choose that particular cap? [SPEAKER CHANGES] Senator Blue, in the bill that we heard a couple of weeks ago, what we did is we phased the cap down from the current unlimited amount of refund to ultimately the refund would be $100,000 phased in over several years. What this bill does, is it also phases down the cap, or phases down the refund, and the refund starts at ten, ten-and-a-half million dollars. It then goes to $7 million, then to $5 million, and then to $2.85 million. The reason we selected $2.85 million is that what we found is that someone would have to spend, I think it's about $40 million in gross spending on sales-taxable items to get to the point where the sales tax was $2.85 million. We looked around the state at the various hospitals and the various charitable institutions. And what we found is that well over 98%, maybe 99% of the nonprofits would fit below that $2.85 million. The ones that are above, what we found is that they generally are institutions that are organized as nonprofits, but in many instances they are institutions that pay their executives and their employees, particularly their senior management-type employees, six- and seven-figure salaries. It was our feeling that in many instances that those institutions, who are organized as nonprofits, don't pay any property taxes--if they're medical institutions, they have basically a monopoly under Certificate of Need--that those institutions probably, when the amount that they would pay in sales tax represents less than 1% of their operating budgets, could probably withstand this modification. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Senator Berger, do you yield? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] So as I understand it, there are two universities and 10 or 12 health systems that fall within what you just described. So you're specifically targeting it toward that group as opposed to the other nonprofits? [SPEAKER CHANGES] What we did is we tried to address the smaller nonprofits that may be running on particularly small gross revenue margins and were not necessarily those institutions that have executives with six- and seven-figure salaries. And what we found was that there were about 15 or so that were above that figure, and it was our feeling that those 15 or so were organized in such a way that for them to receive a taxpayer subsidy, which is the refund of their sales tax, was something from a policy standpoint we felt needed to be changed. [SPEAKER CHANGES] Debate the bill, Mr. President. [SPEAKER CHANGES] Senator Blue is recognized to debate the bill. [SPEAKER CHANGES] Thank you, Mr. President. And ladies and gentlemen, I'd just like to point out a very few things. Number one, Wake Med is one of the biggest employers in Wake County. They have four or five thousand employees, primarily in my district. It is a nonprofit, used to be a county hospital, a nonprofit agency took it over. And you have to understand what nonprofits do. Nonprofits do exactly what the name says. Nobody can take the profits out. They have to rededicate the money that they receive back to the charitable ??. Now it seems to me that if you've got a nonprofit that is quite successful

They keep pouring the money back in to the charitable purpose, then they get better at it. Now, let me give you a case in point. We talked about Wake Mid, just, you know, twenty years ago. Just a local Wake county hospital owned by the tax payers and the commissioners were wise enough in this county to organize a non-profit and it's still totally controlled here in Wake county. Organized a non-profit to deliver health care services better. To provide greater care to the energent population of this county. That was part of the deal that they made when they converted it to a non-profit. And if you look at the start of the numbers, Wake Mid is consistently among the leaders in hospitals across the state that deliver charitable, non-compensated care. So, if in fact they are getting this benefit back by not having to pay sales tax on the additions, and by the way, they've made some very extensive additions at Wake Mid. What do they do? They're the leading heart hospital in the state. They do more heart operations than any other hospital in the state. What was a county hospital, now this non-profit. So, if they made a hundred million dollars or whatever the amount is, they gotta turn it back in to deliver better charitable care, health care for the citizens of Wake county. And I raise a question several weeks ago, and I don't know because I haven't seen it specifically in this bill, Wake county is blessed in many ways. Probably to a degree that no other area in the state is. We have three major health systems operatin' in this county. Three major health systems. The only county in the triangle that does that. And, those hospitals compete with each other. I don't know how the UNC hospital is treated in this scenario, but I guarantee you, Rex hospital will be building facilities that are valued at more than two hundred plus million dollars. Because, their specialty in this market is cancer care and those are very expensive hospitals to build. Go a little bit further. Because of the success of these big hospitals, they create jobs. Now, I believe you when you said you wanted to create jobs, but I will assure you that if you put this strangle hold on these health systems, you're going to destroy, probably in the neighborhood, four, five thousand jobs immediately in this state. Because the money just doesn't pop out of thin air. And, so, I urge you to think about how you get new discoveries coming out of these hospitals in the triangle, whether it's Duke,whether it's UNC. Which raises another issue. Why should Duke and UNC be competing on different playing fields? They go for the same patients. They treat the same patients. They have similar charity care amounts. They deliver care to the energents, not only in Duram and Wake county and Orange county, but all of those hospitals serve people in the surrounding counties, whether it's Granville county, Franklin county, Caswell county. And just look at the service of these hospitals in the triangle. And so, as you destroy these jobs that they've created because they've been very successful in upping the level of care to most of the people who are treated at these hospitals, you also destroy something else. Again, we're fortunate in the triangle and it's got quaternary care hospitals. You know, those are the hospitals that people travel from across the world to come get treatment, not primary, secondary, tertiary care, but do the exotic things; transplant lungs and hearts and every other organ and you. At Wake Forest, which is one of the universities that you've targeted in this bill, you know, some fellow down there learned how to grow organs and so they're growing organs. For several years we helped fund their program to grow organs so that they could then be transplanted into people. How do you think they get the funds to do these exotic things? So, you improve the overall health care. You improve the ability of the state to compete, not just with rural North Carolina, but places around the country. So, you compete with Austin, Texas. You compete with San Francisco. You compete with Boston. And so, now this region is one of the major bio-tech regions, one of the four major bio-tech regions in the country because of what goes on in these hospitals and their... [end]

[Speaker changes.] ability to do research and deliver ????? care and again they do it because these things that you call profit are poured back into the institutions. It's not sittin' up on somebody's balance sheet for shareholders so that somebody makes a private profit from it. It has to be rededicated to the same charitable purposes that these non-profits were created for anyhow. Ya'know there was a lot of discussion and a lot of pride, I think, in this area several years ago when Senator Ted Kennedy chose to come to Duke above the Harvard hospitals, the hospitals in California and the others that had tremendous brain research going on. These institutions don't get that way just by being mediocre so you might not like the fact that they get funds that you don't quite understand how it fits into the process but these additional revenues substantially increase our sense of who we are around the world and what the ability of these hospitals are...the ones I know about. And that same thing applies not only in the triangle but I see that Wakeforest and Duke Universities are the only universities effected by this and any given time, those health systems and universities will be building 3-400 million dollars worth of facilities in order to do the cutting edge research and the kind of stuff that's necessary for them to stay on the forefront. I think we passed earlier this self-liquidating bill for UNC. Go look at UNC and I will bet you, in addition to what we're doing with the 50 million dollars a year for the cancer center...that those kinds of facilities cost you between two and five hundred million dollars and so, what are we doing, punishing them for building things because they've become excellent in what they do. Punishing Wa??? for building a state-of-the-art heart hospital with the hotel and things along with it so that people have somewhere to stay when they come from other sections of the state to have heart surgery. Ya' know one of the things that becomes rather obvious in what we're trying to do here is to punish success and, for the life of me, I don't understand why you want to do it and you guys are the last ones I thought would punish success...because that's really what we're talking about here and so I hope that you'll reconsider. I know it won't change your vote or anything but I hope that you'll reconsider what you're doing to these institutions that are managed in the multi-billion dollar annual range and you...you're angry at 'em because they pay an executive a million dollars...or some number in that neighborhood. They are competing for the very best people who do that kinds of things they do. Now whether those people are in the private sector or the public sector, they still have to compete for them and, if in fact, we're gonna keep moving ahead with these institutions, especially the ones that are world-class that we have in this state now, then you're gonna have to get over it and realize that a million dollars, while a big number, is insignificant to a four, five billion dollar annual operation and the kinds of decisions that they have to make and the kinds of liabilities associated with it. So I hope you'll rethink this somewhere along the road. I know you won't in your vote today but I do hope that you reconsider what your attitude is toward these institutions that do such a great job for North Carolina as they provide healthcare to the degree that most places would be very envious of. [Speaker changes.] Senator Stein, for what purpose do you rise? [Speaker changes.] To debate the bill. [Speaker changes.] Senator Stein has the floor to debate the bill. [Speaker changes.] Thank you Mister President, Members of the Senate...with all due respect to the bill's sponsor, this bill is not tax reform. This bill is a tax cut for the wealthy and large out-of-state corporations on the backs of middle-class tax payers and working families. We've heard that this bill's simply returning money to the tax payers. Sounds nice but which tax payers? Let's look at the winners and losers of your tax bill here today. Remarkably this plan raises taxes on 80% of the state of North Carolina. Fifty-six percent of the benefit of this tax plan goes to the wealthiest one percent. A hundred percent goes to the top twenty percent. Who pays for this shift to the top? Well, it's the middle class because their taxes are ...

?? up. Who else? Well, patients. We just heard Senator Blue talk about the hospitals. Hospitals are going to have to eliminate services, eliminate programs, lay off health care workers, and cease providing critical health services to the people of this state. Who else? Middle-class families trying to send their kids to college. You eliminate the credit for the 529 program; 30,000 North Carolinian families avail themselves of that to help afford college education for their children. We've already raised tuition. You've eliminated need-based financial aid for 9,800 students. And now you're making it harder for people to afford a college education with this tax bill. Who else? Home builders and renters. You propose to eliminate the state tax credit that helps to construct work-force housing. It eliminates in 2018. This is particularly hard on rural economies where they can't support high rents. This program creates about 7,000 jobs a year in the construction trade and it generates $6 of private real estate development for every $1 of public money invested. It adds millions to the tax base, and as I said, supports jobs. Who else? Nine-hundred-thousand hard-working taxpayers who benefit from the earned-income tax credit today will no longer get that assistance with this tax bill. You know that there are 64,000 military families in North Carolina who draw the earned-income tax credit? That is often the difference between living in poverty and being able to rent a home, buy health insurance, provide child care for your family. Who else? Retirees. You all are raising taxes on retirees. You got rid of the Social Security fees, where you were raising taxes on Social Security in the last bill. Guess you all caught a little too much heat. You get rid of the $4,000 deduction that goes currently in North Carolina law for retirees. You're raising taxes on retirees. But the biggest cost is borne by the people of North Carolina as a whole. Because you all are doing the easiest and most irresponsible thing an elected official can do. You're claiming the political credit today but you're putting the cost on the future, down the road. In the first two years this bill costs the state about $670 million. We factored that into the budget, which we voted on a couple weeks ago. In years three, four, and five, it gets up to 2.8, 2.9 billion. It's over $1 billion for every year thereafter. Senator Berger said that's enough. It's enough for the state. How do we get the baseline number that you all have in your projections? Two things: population growth and inflation. That's it. Some of you all are business people, you understand the concept of inflation. If you earn more money but you're having to pay more for the inputs you haven't made any money. That's inflation. You understand the concept of per capita. The more people in your state, the more kids you have to educate, the more seniors you provide services to, the more people who travel on your roads, the more prisoners, unfortunately, you have to incarcerate. The more people, the more costs. Everything in this projection is per-capita and inflation-adjusted. Anything that you take off of that number, you're taking off of zero. It's zero growth. So you're taking a billion dollars off of zero. It would be great if we could ignore inflation and we could ignore the hundreds of thousands of people who move to our state. But we don't have that luxury in the real world. We've seen the consequences in your budget for this biennium of the $700 million you all are proposed to cut in the next two years: 4,500 teacher assistants fired, 4,800 teacher positions eliminated, increasing tuition on community-college students, eliminating thousands of pre-kindergarten slots, eliminating need-based financial aid for more than 9,000 students, and eliminating proven economic development programs. We've been told that this giveaway is necessary for economic development. There's no evidence that giving a tax cut to the wealthiest 1% is going to create jobs, particularly when you're cutting critical government services to fund that tax cut. As I mentioned, 90% of the corporate income tax credit cut will go to out-of-state shareholders.

If you're concerned that our corporate income tax marginal rate is too high, then lower it. You don't have to go all the way to zero. When you go to zero, you're takin' one point two billion dollars out of our general fund. Which, by the way, is more than the entire community college budget. That's the choice you are making by going down to zero. How many more thousands of teachers you wanna' fire? How much more do you wanna' raise tuition? How many more prisons do you wanna' close? How many more need-based financial scholarships you wanna' eliminate? Will we ever give the teachers of North Carolina a pay raise again? They are currently 48th in the country in pay. Do we want them to be 50th?? This bill is nothin' more than a political check to the tune of one billion dollars per year that you all are signing, paid out to the wealthiest and out-of-state corporations, drawn on the account of the average tax payer in the form of higher taxes, larger classroom sizes, worsening infrastructure, degraded universities and community colleges and diminished public safety. We should void that check and defeat this legislation. Thank you. [Speaker changes.] Senator Tillman, for what purpose do you rise? [Speaker changes.] Mister Chairman, to speak on the bill. [Speaker changes.] Senator Tillman has the floor to speak to the bill. [Speaker changes.] You just heard a grand level democrat speaking the grand level theme of "we won't have enough money to run the government". If you wanna run on that folks, you go right ahead. We don't have enough money to fund the government programs. You just heard another conglomeration of half-truths...we're not increasing the class size one student, we're not firing a single teacher, and the last raise in four years that the teachers got, we gave it. It was 1.2%. Senator Stein, if I believed half of what you said, then I would believe we'll have no growth by cutting taxes, by putting a billion dollars back in the taxpayer's pockets. That money will be spent in the economy. That money will be used by healthcare. That money will be used any way that the taxpayer wants to use it. And we will not be pickin' and choosin' liberal giveaway programs because you think government needs more money. That big billion dollar tax cut is going into the pockets of people that vote and that work and that pay taxes in this state. And, if you wanna run on the "we don't have enough money to run government", you go right ahead. When you tried that, we came in here with a three billion dollar deficit. We're just now working our way out of it and a budget that will balance...that will make sense...and a tax plan that will improve the economy. [Speaker changes.] Senator Brown, for what purpose do you rise? [Speaker changes.] Speak to the bill... [Speaker changes.] Senator Brown has the floor to speak to the bill. [Speaker changes.] Thank you, Mister President. Senator ????? I have a ton of respect for...you know, talking about penalizing success? When we talk about penalizing success...look at our tax rate and talk about penalizing success for the business community in this state for how many years now? 6.9% corporate rate, highest in the southeast. 7.5% income tax rate, highest in the southeast. Unemployment rate? Fifth highest in the nation. And you ask why? And you look at policies that have passed in the past few years and wonder why businesses don't like North Carolina, don't wanna come to North Carolina? We've talked about it and there's no question in my mind, when you're not competitive on the front end, you don't go there! You go somewhere else. And that's exactly what has happened to businesses lookin' to relocate when they compare North Carolina to other states in this nation. We're not competitive. That's just a flat fact. Then you put the franchise tax on top of that so we just added another tax, that we created not long ago...a ???? that adds another burden to the business community on top of those overburdening tax rates that we have now. So if you wanna talk about, you know, hurting success...that's exactly what we've done to this business community in this state for many, many years. Then we talk about the growth of government, ya'know, the bill that you're lookin' at now...increases growth by about six hundred million the first year, bout eight hundred the second year, over a billion the following year. How much is enough? What's that answer? Is it over a billion every year?? Is it two billion more a year? How much more government growth do we need to sustain this state? I mean I think that's a good question. Six hundred million a year's not enough? I think it's enough. I mean, what's what's..the right answer? How far do you wanna go? And then we talk about what we've done to.... [Speaker changes.]

The least fortunate. You know, one good thing in what we've done probably in the past 2 years is that about 1.2, 1.3 billion more dollars to medicaid. I would say that's taking care of the less fortunate. That's how much more we'll spend in 2 years, 2 years, on our Medicaid costs in the state of North Carolina to take care of the less fortunate. I think that's doing a pretty good job. So we talk about being competitive and what we can do to get this state on the move, it's going to be the smart businesses in this state that's going to make a difference, I can promise you that. And when it comes to recruiting, if you're not competitive, you don't win, you lose, because then what you have to do with incentive money is you have to say what's it going to take? How much have I got to give you to come to North Carolina. That's how you promote your state because you're not competitive on the other end, so now it's just how much have I got to buy you off for to get you to come here, and that's why businesses say I want $50 million, I want $60 million, because you're not in a negotiating position. Because you can't sell your tax policy because you're out of whack, that's if they even give you an opportunity to bid on the chance of them coming to your state. I think this bill does a lot. I think it will help our unemployment rate. I think it will make us competitive for first time. I think it will start a whole lot new small businesses in this state. I think it will put us at the front of the line when businesses look to relocate. I think this will do a great service to this state. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Hise, for what purpose do you rise? [SPEAKER CHANGES] To speak to the bill. [SPEAKER CHANGES] Senator has the floor to speak to the bill. [SPEAKER CHANGES] Thank you, Mr. President, members of the Senate. Sometimes the arguments get a little ridiculous around here. Sometimes people make statements like 100% of the benefits go to the top 20%. Find $1 that's not true and that's a false statement. Moving forward, sounds a lot like what the Budget and Tax Center seems to be saying about this bill you have before you. We can make it a $4,000 loss and ignore the fact that everyone now has a $15,000 standard deduction and say it's some kind of cut or elimination. We can somehow say a reduction in the rate, even the bottom rate in this state is a tax increase. We can somehow look at the proportion of benefits and not compare that to who pays taxes but to who's getting the benefits and say this is a skewed plan, all of which are false. We can hear a lot about 10 businesses in the state and how devastating it is to those businesses to not receive 6.5% of their purchases over $48 million back to that business that sales type portion and we can hear about how that's destroying innovation and the people that are going to be laid off. I tell you to look at every major corporation in the state then that we are charging 6.9% of their income and ask what is not happening in this state. Not the select 10 that file themselves as non-profits, but every other major corporation in this state. What is the same innovation we're destroying? What is the same businesses and jobs that are not able to be created because what we're doing to all those other industries that exist in this state? This is how we make a playing field in North Carolina that makes us competitive. We take those corporations and we put them on a level playing field of privileged businesses in this state. They all do great work for this state, and they're all important to the economic future of North Carolina. It's time we get out of the business of designing a tax code for winners and losers, friends and buddies and it's time we look at this system and say it's time we unleash economic power in North Carolina. I believe firmly that this bill takes great strides in moving in that direction. I believe that we underestimate revenue coming from this bill simply because we do not factor for the growth we expect from it. If we are ever going to solve our budget problem in North Carolina, we're going to have to get our unemployment back down to 6

Eleven percent levels so that we can begin to fund the functions of government and there is nothing about our current tax system or raising additional revenue or campaigns that say it's just a penny that are gonna get us to a tax level where we can be competitive and thrive again. Thank you. SPEAKER CHANGES: Mister president. SPEAKER CHANGES: Senator McKissic for what purpose do you rise? SPEAKER CHANGES: To speak on the bill. SPEAKER CHANGES: Senator Mckissic has the floor to speak to the bill. SPEAKER CHANGES: I've heard an awful lot about leveling the playing field. The problem is we've leveled that field we're you've back field it with sinking sand. So those folks that are well off individuals. Those that are part of the middle class, they're not better off they're sinking. They're financial prosperity the wealth they have today is decreasing. They're spending power will go down not up. Eighty percent are gonna be paying more not less. That sinking sand people can't stand upon it. If you happen to be one of those persons who has to go out there and buy manufactured housing mobile homes. If you happen to be one of those who could only afford the modular homes in this state and may I remind you over two thirds of our residents fall in those categories. You're gonna pay more not less. If you happen to be one of those individuals that qualifies for low income housing, the low income tax credits that exist today well if you're in an urban area, there's no incentive to even want to build them there. They'll only be eligible in the tier one and tier two areas that's it. Not only that but there gonna be gone. Twenty five year of your reduction every year until it's completely gone. So what happens to those occupants of those low income housing that would have had a place to stay before. Incentives are gone. What happens to those buying the manufactured housing and the modular homes that are worse off they're sinking. What happens to all those individuals that in this state we agreed to create kind of that safety net of opportunity. To provide that door that they need to prosperity. That ladder that takes them from the middle class and beyond. We haven't helped them. We can talk about employers coming. We can talk about what's going to incentivize them. On every list I've ever seen dealing with attractive sites for manufactures to locate dealing with those environments that were absolutely conducive to them creating jobs. They look at a good strong public education system and we haven't done anything to help our K thru twelve education system those that are in our public universities but most importantly those employers that are considering North Carolina ?? skilled labor force. We want to make sure they get the right jobs. But if we don't invest in education we can't get them there so it gives me concern and yes I've heard a lot about the non profits and I appreciate with the rural hospitals and for those non profits that will be helped by raising that floor up to the two point eight five million. But the problem is there're major hospitals such as Dukeoever in Durham and yeah they're gonna be hurting for two point four million dollars and you look at what's gon' on there in the last several years during there sanction and what do they do? They went out there and built a new six hundred dollar investment in one facility three hundred million in another. Producing substantial jobs. ?? spends six hundred million dollars not just the impact within Durham but within the whole Piedmont area of North Carolina those dollars are turning over three and four times, producing jobs they're making reinvestments in the community. If you look at what we've been doing to these hospitals the major ones as well as the small ones by failure to increase medicaid coverage they're hurting, they're ?? cost is going up. If you look at blue cross going in and renegotiating rates trimming costs by about twenty percent these hospitals are hurting. If you look at the realization of the Medicaid reimbursement payments. These hospitals are hurting if you look at Duke they're gonna be hit if this were to go forward with all the other impacts to the tune of a hundred million dollars. A hundred million dollars approximately and what have they produced in recent years of eleven thousand jobs additional jobs. As a result in their belief to reinvest in the economy. Those are real numbers those are things we should be concerned about. If you happen to be in that hospital trying to absorb that ?? expense it's gon' be a true hardship. And most importantly if you look at the average working class individual if this were to...

You’re going to be worse off. And if you look at our economy as a state, we will basically create a $1 billion hole. A $1 billion hole. And if we don’t see the growth occur in our economy that’s anticipated, to the tune of about 4.4 percent average, typically you’re going to get about 4.1, 4.2, if these things don’t materialize the hole will be even deeper. And we’re just going to keep cutting and cutting and cutting. I respect the fact that we had to cut when the economy was bad. I respect the fact that we can downsize and make intelligent decisions, but to keep cutting and cutting and cutting on the backs of people that are hurting, working class individuals and the middle class, that are putting their stake, in many respects, in less competitive positions because we’re not investing what we need to to make ourselves attractive to these businesses. That’s a mistake. [Speaker Change] Mr. President -- [Speaker Change] Senator Kinnaird, for what purpose do you rise? [Speaker Change] To debate the bill. [Speaker Change] Senator Kinnaird has the floor. Speak to the bill. [Speaker Change] We heard a drumbeat over and over and over that we need to cut the corporate tax to attract business. But let’s look at the facts. Year after year after year North Carolina was declared one of the best business climates in the country: Forbes Magazine, Site Selection Magazine, ChiefExecutive.net. Christian Science Monitor named us the best for business on criteria that included taxes. Progress Energy on their website even encourages business to move here because of our low business cost. We even have on McCrory’s [sp?] website that this the best state to do business. The Institute on Taxation and Economic Policy did a side by side comparison of nine states with a high tax rate with states with no income taxes on three dimensions of economic growth. On two dimensions, real per capita growth and real median household growth, the high tax states outperformed, repeat, outperformed the low tax rate. So what states have the lowest taxes and how are they doing? Wyoming, South Dakota, Alaska. Are these really the economic development engines that we want to emulate? We have hoped for years for real tax reform and we thought we were started down that path. This is not tax reform and it doesn’t do what we really need it to do. [Speaker Change] Is there any further discussion or debate? Senator Newton, for what purpose do you rise? [Speaker Change] To speak to the bill. [Speaker Change] Senator Newton has the floor to speak to the bill. [Speaker Change] Thank you, Mr. President. Colleagues of the Senate, when I ran in 2010 I ran on a promise to fight for jobs. I ran on a promise to fight for our economy, to improve it. I ran on a promise to fight for these things by reforming our tax code, cutting taxes, providing tax relief to our businesses and employers in this state. I ran to make us more competitive nationally and in our region here in the south. Because you see, when I ran, for those of you on the back row who have forgotten, when I ran we were the highest tax state in the southeast and one of the highest in the nation. We were in economic freefall. What was your solution? Raise taxes. Spend money. Raise taxes, spend money. Regulate, raise taxes, spend money. That’s why I ran, was to run against that, to do something about it. As has already been stated, when I got here there was a 2 and a half, almost 3 billion dollar shortfall; 2 and a half billion dollar debt on unemployment insurance, basically our state credit card run to the max on a lot of debt that wasn’t voter approved. We’ve already fixed that. Our retirement plan was underfunded. State health plan was underfunded. We were overregulated with ridiculous rules that we’ve already made a good stab at replacing, of fixing twice with regulatory reform. Because of the horrible shambles that the minority party had left this state, we had to spend the last two years basically fixing your mess and righting this state and trying to get it on the right track. Finally now we have gotten to the point where we can actually provide some substantive tax relief, some sub--…

To the citizens of this state, I am so pleased to finally have an opportunity to vote for a bill like this. Now does this bill do enough? No, actually I wish this bill did more. But I'll take what I can get, because this is the best we're going to get. We'll come back next year, we'll come back the year after that, and we'll try to do it some more. I applaud all my colleagues who have worked so hard to get here. I certainly hope the governor in the house will take this legislation, chew on it, mull on it and listen to their citizens and vote yes on this bill. Because it's about time that we put this state new again. It's about time that we got this economy going. It's about time that we do something to fix the mess that we were left. [SPEAKER CHANGES] Any further discussion of it. Senator Nesbitt for what purpose do you rise. [SPEAKER CHANGES] Thank you Mr. President. To speak on the bill. [SPEAKER CHANGES] Senator Nesbitt has the floor to speak on the bill. [SPEAKER CHANGES] Thank you Mr. President, members of the senate. We hear a lot of talk about economic development, jobs, etc. etc. The truth of the matter is this is all about tax cuts for the wealthy, that’s what it’s about. This isn’t tax reform, this isn’t economic development. It’s giving tax cuts to the wealthy at the expense of the middle class. I looked at it. Same song, third verse. It's not any better but it couldn't get worse. The worst is the one you all created a website for. And you constantly tried to nibble around the edges and make this thing get better but you keep coming back with the same thing. Raise taxes on the middle class families, give massive tax relief to the wealthy; every time the world descends on you, the uproar is so loud that you can hear it. You go away and you come back and do the same thing over again. The plan today raises taxes on the bottom 80 percent in order to give tax cuts to the top 1 percent. That’s the same thing that you had in your first bill and you’re creating a billion dollar hole that someone’s gotta dig out of. It's my understanding the governor is the number one critic of that billion dollar hole because he’s gotta govern this state. Now i'll tell you, you can keep doing it but it's not fooling the people of this state and the working people of this state and the unemployed of this state deserve better. [SPEAKER CHANGES] Senator Abodaca for what purpose do you rise. [SPEAKER CHANGES] To speak on the bill. [SPEAKER CHANGES] Senator Abodaca has the floor to speak on the bill. [SPEAKER CHANGES] It's simple folks we can continue with the f- [SPEAKER CHANGES] Senator Newton you’re exactly right we inherited a mess, y'all buried us in three to four billion dollars worth of negative revenues and just kept spending, kept taxing, kept spending, kept taxing. Now we still have some of the highest. [SPEAKER CHANGES] It’s that simple. [SPEAKER CHANGES] Senator Berger for what purpose do you rise? [SPEAKER CHANGES] Mr. President, to speak the second time briefly on the bill. [SPEAKER CHANGES] Senator Berger has the floor to speak the second time on the bill. [SPEAKER CHANGES] Members of the Senate, I listened, as you did to a number of the things that were said about this bill and about the consequences. And I was reminded of something that President Reagan said when faced with a similar situation he said you know the problem with some of these folks is they just believe so many things that just aren’t so and I have no doubt that folks on the back row fervently believe what they’re saying but they’re just not so. To say that what this bill will do is reduce the money the state will receive by a billion dollars of what we’re currently receiving is just not so and the first year under this plan the revenues will increase by 600 million dollars. 600 million dollars and the second year it’ll increase by about.

[Speaker changes.] ...until about the fourth year, the increase is almost a billion dollars over...over the previous year so what we're looking at is not a question of reducing the revenue available to the state, now, quite frankly, I've got some constituents and I'll bet you've got some constituents who say that we oughta' be spending less and not more. What we're talking about is a tax plan that actually increases revenue but at a more reasonable rate so that we don't end up with the kind of "run away growth" in government that we've seen in the past. The kind of tax and spend policy that we've seen in the past, the kind of thing that has been fueled by some of the arguments that we've heard today in the nature of class warfare...some of the arguments that we've heard today that just are not based on factual information. What I would ask you to do is look at the bill, consider the reality that we've got people and we've got businesses out there that are hurting and one of the reasons they're hurting is because this government has got too much of a hand in their pockets and what this bill does is it leaves more money in the pockets of small businesses, large businesses, middle class people and just about everybody in the state of North Carolina. I ask you to support this...if you're interested in creating jobs in the private sec... (SKIPPED AUDIO!) [Speaker changes.] Amended on its second reading. All in favor vote aye, opposed vote no. Five seconds be allowed for the voting. Clerk will record the vote. [Speaker changes.] Kinnaird NO [Speaker changes.] Thirty-two having voted in the affirmative and fifteen in the negative. Senate Committee Substitute Number Two to House Bill 998, as amended passes its second reading and will remain on the calendar. [Speaker changes.] House Bill 94, Clerk will read. [Speaker changes.] House Bill 94, amend environmental laws, 2013. [Speaker changes.] Senator Jackson is recognized. [Speaker changes.] Thank you, Mister President. Before I get into this bill, I wanna publicly apologize to our Reading Clerk for last week because this is the bill that took him about five minutes to read and I was hopin' that we could go ahead and hear it and I'd just stand up and say, "well, you've heard the bill"...you got any questions, I'll try and answer 'em but I did want to do that...and also wanna thank our environmental staff that has worked so diligently and hard on this legislation between not only the Senate and the House but this is our Annual Amends Bill...environmental amends...and what I'm gonna do is break it up into about three or four parts so I will not belabor you and bore ya...the following sections of this bill you have already voted on forty-eight to zero before in the Senate and they were in Senate Bill 112. They are parts 9,10,12,13,14,15,16,21,24,26,28,29 and 32. Now I currently have two amendments and I would like to go ahead and bring those before us if we may...the first one? [Speaker changes.] Senator, you can send your amendment forward. Which amendment do you wanna send forward first, Senator? [Speaker changes.] Well, send the one with deleting Section 27. Which is H94-ATA-36, Version One. (Sounded like AUDIO CUT?!) And others in this and in the House, we decided that this was not needed and so this deletes Section 27 of this bill and I would ask for your support on the amendment. [Speaker changes.] Any discussion or debate? Hearing none, question for the Senate is passage of Amendment One. All in favor vote aye, opposed vote no. Five seconds will be allowed for the voting. Clerk will record the vote. [Speaker changes.] Apodaca, Aye. [Speaker changes.] Gunn, Aye. [Speaker changes.] Forty-five having voted in the affirmative and zero in the negative. Amendment One is adopted. The bill as amended is back before the body. Senator Jackson's recognized. [Speaker changes.] Thank you, Mister President. Amendment Number Two basically is just purely... [Speaker changes.] No, no Senator Jackson, let's read that in first. Clerk will read. [Speaker changes.] Senator Jackson move to amend the bill. [Speaker changes.] Senator Jackson's recognized to explain the amendment. [Speaker changes.] Thank you again, Mister President. This amendment is purely technical...

Not ?? Senator Hartsells words that this is really all it does is it corrects some of the language in several places throughout the bill. And I'd ask for your support on this one as well. SPEAKER CHANGES: Is there any discussion or debate? SPEAKER CHANGES: Mister president. SPEAKER CHANGES: Senator Newton for what purpose do you rise? SPEAKER CHANGES: Thank you mister president. I had just gotten back in the room when you were taking the vote and so I would like to be counted in favor of voting in favor of amendment one if that's possible? SPEAKER CHANGES: Senator Newton aye on amendment one. Final vote forty six to zero. Is there any discussion or debate? Herein none. The question before the Senate is passage of amendment two all in favor vote aye opposed vote no. Five seconds will be allowed for the voting and the cleric will record the vote. ?? Aye, Runstettor aye. Forty seven having voted in the affirmative zero in the negative. Amendment two has adopted the bill as amended ?? bill. SPEAKER CHANGES: Senator Brown is recognized to explain the amendment. Thank you mister president. What this amendment does is basically say that before counties and cities shall not in the course in the process in recording technical review of an application for a permit or a plan submitted for approval. Require revisions to that part of the application or plan that constitutes the practice of engineering that has been part of the application or plan that constitutes or that supervise...I'm sorry let me get this straight, revisions that are part of the application plan that constitutes the price of engineering and that has been supervised and sealed ?? plan that you need an engineer or intern that's supervised by an engineer to change that plan. I'll be glad to answer any questions. SPEAKER CHANGES: Any discussion or debate. Senator Nesbitt for what purpose do you rise? SPEAKER CHANGES: Yes will the gentlemen yield to a question? SPEAKER CHANGES: Senator Brown do you yield? SPEAKER CHANGES: I will. SPEAKER CHANGES: Maybe everybody in the room knows what you're doing except me. But I don't and who are we limiting and why do we not want to review engineering work and who are we limiting from reviewing that why are we doing that? SPEAKER CHANGES: We're not limiting the review at all. But what we are saying is that if an engineer has sent in a plan, put a stamp seal on it. Before a city or county could change that. It needs to be looked at by another engineer or an intern under the supervision of an engineer not just an employee that duttin' have an engineering degree at all that duttin' know anything about how a plan was put together. SPEAKER CHANGES: Is there any further discussion or debate? SPEAKER CHANGES: Mister president? Senator Jackson for what purpose do you rise? SPEAKER CHANGES: To speak on the amendment. SPEAKER CHANGES: Senator Jackson has the floor to speak on the amendment. SPEAKER CHANGES: I have reviewed this amendment folks and as the bill's sponsor I am fine with this amendment. SPEAKER CHANGES: Mister president. SPEAKER CHANGES: Senator Blue for what purpose do you rise? SPEAKER CHANGES: Will Senator Brown yield for a question? SPEAKER CHANGES: Senator Brown do you yield? SPEAKER CHANGES: I will. SPEAKER CHANGES: Senator Brown this is just a review by the governmental agency I'm wondering how architects figure into this since ultimately they do have to sign off in engineering changes and building plans. Will this restrict the architect from...well he doesn't' really...well he does sign it. Would it restrict him in the review before the governmental agency in any way? SPEAKER CHANGES: Senator Blue I don't think it would in any way no. SPEAKER CHANGES: Any further discussion or debate? Herein none the question before the Senate is the passage of amendment three, all in favor vote aye. Opposed vote no. Five seconds will be allowed for the voting the cleric will record the vote. Apadaka aye. SPEAKER CHANGES: President? SPEAKER CHANGES: Senator Canair for what purpose do you rise? SPEAKER CHANGES: To speak on the bill. SPEAKER CHANGES: Senator Canair has the floor to speak to the bill. SPEAKER CHANGES: I represent Chattam county which is one of the countys that will probably will be if this bill goes through and if there is enough there. We'll be one of those which has a great deal of fracking. I can tell you that daily I get many many emails and letters and calls concerning fracking and what it will do to Chattam county. And one of the areas that they are most concerned with is what happens to their water supply and in this bill on page six they particularly take out the section in which the chemicals that are used in the process will be revealed to the public. This is of great concern to the people in Chattam county and I feel that this is going in the wrong direction when we hide from the public as far as health ?? what is...

that are in these chemicals, and, interestingly, I'm not the only one who shares this concern. So does the Mining and Energy Commission, and they have even written a letter objecting to this. This is only one of many of the parts that are bad under this, but this to me is the most egregious for the people of Chatham county, and for this reason I am voting against the bill. [SPEAKER CHANGES] Mr. President -- [SPEAKER CHANGES] Sen. Jackson, for what purpose do you rise? [SPEAKER CHANGES] To speak on the bill again and explain it. [SPEAKER CHANGES] Sen. Jackson has the floor to speak on the bill the second time. [SPEAKER CHANGES] Thank you, sir. [SPEAKER CHANGES] I want to go ahead. I didn't not get through the whole deal here, so let me go do that and then, Sen. Kinnaird, I'd like to address your question which is a valid question. I'll go ahead do that now. Basically what this you're talking about referring to in Section 7, it is not that they do not report the chemicals. They are reporting every chemical that is used in the fracking process. What they have asked -- and ?? asked requested this -- they do not want the recipe. They want all the chemicals so if anyone was to ask, they could supply the names of the chemicals that are being used, but they do not want the recipe as they're being mixed together, as I understand it. So following up on that Part 1, 2, 3, 4, 5, 6, 18, 25, 30, 33 and 35 are all recommendations that have been run through ?? and through the House and through the Senate staff, and I'm agreeable to those. And then the new parts of the bill are Part 7, as we've just briefly spoke on, Part 8, Part 11, 17, 19, 20, 22, 23, 31 and 34. And I'll be glad to attempt to answer any questions, and I have staff on stand-by should you have any, and I understand there is still a couple more motions amendments to come forth on this bill. Thank you. [SPEAKER CHANGES] Mr. President -- [SPEAKER CHANGES] Sen. McKissick, for what purpose do you rise? [SPEAKER CHANGES] To speak on the bill. [SPEAKER CHANGES] Sen. McKissick has the floor to speak to the bill. [SPEAKER CHANGES] Well, I do have some deep concerns about this bill, and I'm sure those who are involved with the Mining and Energy Commissioner are very concerned about it, too. It appears that they have sent a letter in that's gone out to those here in the House and the Senate basically saying that they do not like the provisions here dealing with the fracking chemicals being trade secrets. We do not need to undercut the authority of this commission. We charge this commission with doing extraordinarily important work and trying to craft appropriate rules and regulation dealing with fracking in North Carolina. If they are in the process of coming up with appropriate rules that govern the use of the chemicals that are used by the companies that will be involved in fracking, then we need to give them the opportunity to do so. We need to allow them to craft it. We need allow them that opportunity to listen to whatever experts they need to, conduct whatever public hearings they may choose to -- [SPEAKER CHANGES] Mr. President -- [SPEAKER CHANGES] -- but most importantly -- [SPEAKER CHANGES] Sen. Newton, for what purpose do you rise? [SPEAKER CHANGES] To see if Sen. McKissick will yield to a question. [SPEAKER CHANGES] Sen. McKissick, will you yield? [SPEAKER CHANGES] Not at this time. [SPEAKER CHANGES] Sen. McKissick, you still have the floor. [SPEAKER CHANGES] Sure, and I guess that as a result of looking at what I understand to be their dire concern, which was apparently the consensus of a majority of the board, we need to listen to them. That's what we charge them with. We need to give them that authority. We do not need to be in the process of trying to shield and protect what these chemicals are. We need to make certain that information is publily available, protected in terms of appropriate confidentiality, but it needs to be provided to ?? so that we know what we're getting into. Because these are some serious chemicals going into the ground that do have the potential to contaminate groundwater in this state. There are other provisions in here that I get concerned about. There's a provision here that says there's not going to be a physical note required when it comes to fracking restrictions. Well, we require physical notes when it comes to other rules and regulations. There's no reason why we should not apply when it comes to horizontal drilling and fracking. There are provisions in this bill that talk about repealing the Mountain Resources Planning Act. Well, they are doing good work. Those up in the mountains of this state have a reason to be concerned about the environment. They have extraordinarily steep slopes. They have environments that are unique, that are uncharacteristic to other parts of our state. We don't need to be repealing the Mountain Resources Planning Act. It's [CUTS OFF]

Talk about provisions in here that talk about extending the boundaries that are applicable to areas for groundwater quality standards to going all the way out to the outer perimeter of the property line rather than 500 feet that currently exists, that gives me concern. Talking about the opportunity when their water permit is issued to decrease the time when there will be an opportunity for people to contest the issuance of those kinds of permits, we need to be careful. We need to protect what we can in North Carolina. Our environment is one of those things that all of us appreciate. It gives us a quality of life which we all share, which brings people here to this state whether it's to our coastlines, to our mountains, to our Piedmont area. We should be very careful about compromising our environmental regulations here in North Carolina. Thank you. [SPEAKER CHANGES] Senator Newton, for what purpose do you rise? [SPEAKER CHANGES] To send forth an amendment. [SPEAKER CHANGES] Senator Newton, you can send forward your amendment. [SPEAKER CHANGES] Should be ?? on the dashboard. [SPEAKER CHANGES] Clerk will read. Clerk will read. [SPEAKER CHANGES] Senator Newton moves to amend the bill. [SPEAKER CHANGES] Senator Newton is recognized to explain the amendment. [SPEAKER CHANGES] Thank you, Mr. President. I appreciate hearing for Senator McKissick and Senator Kinnaird about their concerns about their concerns about future energy sector that we're going to have in this state and hydraulic fracturing and there seems to be a great deal of misunderstanding about what the proper role of our state is in this process of the materials and substances that are used in hydraulic fracturing fluid, and the Mining and Energy Commission as well seems to misunderstand what the role of the state should be, so this amendment would clarify what we've already got in law and make it clear that the state will not take possession or ownership of trade secrets. Now Senator Kinnaird, you don't need to worry. The Mining and Energy Commission and DNR will know what the materials are. They will know what the substances are, they just will not know what the recipe is. Now let me put this into context for everybody who's listening. I like Coca-Cola. I drink Coca-Cola on occasion. It goes into my body, if it was bad for me other than it might cause me to gain weight I would hope that we might be able to figure out what was in it that was hurting me, but we don't know what the recipe is. Now on the back of that can, they tell you what's in it. They don't tell you what the formula is, they don't tell you what the secret recipe is, but they tell you what's in it, and that's what this amendment would do. Would make it clear that the state does not take ownership of these trade secrets, and let me tell you why I think this is important. First of all, if we did it in this area, it would be different from all the other trade secrets that the state deals with and second of all, I don't think the state, Senator McKissick, should have to defend the trade secrets of any company, I think that's their job. [SPEAKER CHANGES] ?? Do you rise? [SPEAKER CHANGES] To see if the amendment sponsor will yield to a question. [SPEAKER CHANGES] Senator Newton, do you yield? [SPEAKER CHANGES] Certainly. [SPEAKER CHANGES] I understand Coca-Cola, that they put every single ingredient including the chemical name and what's the secret sauce is their relative ratios of those products, ingredients, and yes, that is a trade secret, but every single ingredient is listed, and I'm looking at this amendment on page 2 lines, essentially start on line 3 or 4 where it talks about chemical families and then it says or other suitable description of those chemicals and constituents, and chemical family means a group of chemicals that share similar chemical properties or have a common general name, so the way I've heard it talked about out in the halls is if it's rat poison, it'll say it's rat poison, but it won't tell you what rat poison it is, so I think there's a big difference between the two if my understanding is correct, and I was hoping you could speak to that. [SPEAKER CHANGES] Senator Stine, the substances that are used in this process are generally found underneath your kitchen sink, it's the ratios that are the trade secret. The intent of this is to make it available to DNR for them to know whatever it is that they need to know. It is clear that that has to be turned over if there was a need of, a public need for that, so as far as your getting into the chemistry of chemical families, I'm not sure I can answer that question directly, but that's the intent of this amendment. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] I have a follow up question if I may, Mr. Chair. [SPEAKER CHANGES] Senator Newton, do you yield for a follow up question? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] Does the Mining Commission have a position on your amendment?

No idea. This amendment. Senator Stein is to make it clear what their charge should be and what it was all along and what it was intended to be. They seem to not quite understand that. But there has been a great deal of conversation with DENR on this, and DENR is, as I understand it, asked for a similar type amendment. I'm not sure if they've looked at the actual language of it or not, but there's been a great deal of conversation with them on this. [SPEAKER CHANGES] Speak to the amendment. [SPEAKER CHANGES] Senator Stein has the floor to speak to the amendment. [SPEAKER CHANGES] Thank you Mr. President. I think for those two reasons I'm going to be voting against this amendment. One is, we don't know what the actual composition is. I think it's not quite right to say it's like Coke, cuz if we knew what all the chemicals were, I think that would be one thing, but this board language under chemical family weakens it substantially. And I think that the expertise in the mining commission is the place to decide this. They've been very articulate with their frustration. You know, I can quote them. You can't have industry come in and say it is a trade secret so I'm not going to disclose it to the chair of the commission. Someone needs to verify that. He, the chair of the commission, said that he was blindsided by this effort, so I will be voting against this amendment. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of amendment 4. All in favor vote aye, opposed will vote no. 5seconds will be allowed for the voting. Clerk will record the vote. Apodaca. Apodaca no. 35 having voted in the affirmative and 12 in the negative, amendment 4 is adopted. The bill as amended is back before the body. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Pate, for what purpose do you rise? [SPEAKER CHANGES] Send forward an amendment. [SPEAKER CHANGES] Senator Pate, you can send forward your amendment. The clerk will read. [SPEAKER CHANGES] Senator Pate moves to amend the bill. [SPEAKER CHANGES] Senator Pate is recognized to explain the amendment. [SPEAKER CHANGES] Thank you Mr. President. This amendment is much narrower in scope than the ones we've been hearing, and I hope that I can shortly sit down. Session log 2013-50 which passed recently, transfers Ashville's water system to a metropolitan sewage district. When this law passed, it included a provision limiting its application to public water systems that had not been issued an interbasin transfer certificate. House Bill 94, however, eliminates this provision from the law, thereby making the transfer provisions applicable to Greenville's water system. That's Greenville, which is 330 miles away from Ashville. This creates a threat that Greenville's water system will be transferred to the ?? sewerage district. A small, metropolitan sewage district located in Pitt County. The ?? sewage district has a limited staff, and the transfer of the Greenville water system to such a small entity is neither practical nor a reasonable action. The Greenville water system is a tremendous asset to the Greenville utility service area, and having it transfer of the assets and liabilities occurred by operation of law without any compensation to the city of Greenville would not be beneficial to Greenville or its citizens, nor any of the persons served by Greenville utilities. Senator John Davis of Green County, who also represents Pitt County with me, is absent today, but he called me today to let me know that he supports this amendment, as I hope all members will. Thank you Mr. President. [SPEAKER CHANGES] Is there any discussion or debate? Senator Jackson, for what purpose do you rise? [SPEAKER CHANGES] Speak on the amendment. [SPEAKER CHANGES] Senator Jackson has the floor to speak to the amendment. [SPEAKER CHANGES] Thank you Mr. President. Members, this is an excellent amendment. This was an unintended consequences, and I would appreciate your support for this amendment. [SPEAKER CHANGES] Further discussion or debate. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Clodfelter, for what purpose do you rise? [SPEAKER CHANGES] To make motion for under rule 29 that I be excused from voting on this particular amendment. I have sent forward a statement of reasons. [SPEAKER CHANGES] Thank you Senator. Senator Nesbitt, for what purpose do you rise? [SPEAKER CHANGES] To speak briefly on the amendment. [SPEAKER CHANGES] Thank you Mr. President. And just to make sure for the record that people do know, Don Davis also called me, and wanted the membership to know that he very much opposes this.

And to tell you that he supports this amendment and opposes what was happening in the bill, and to let you know that I wouldn't wish what's happened to us on my worst enemy much less my food friends from Greenland, and I wholeheartedly endorse the amendment. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Apodaca for what purpose do you rise? [SPEAKER CHANGES] Senator Davis did not call me but I still support this amendment. [SPEAKER CHANGES] Thank you Senator. Senator Clodfelter could you approach the dias [SP] for a second please? Voting and the clerk will record the vote. [SPEAKER CHANGES] Berger aye. [SPEAKER CHANGES] 46 having voted in the affirmative and zero in the negative amendment. Five is adopted, the bill as amended is back before the body. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Wade for what purpose do you rise? [SPEAKER CHANGES] To send forth an amendment, it should be on the dashboard. [SPEAKER CHANGES] You can send forward your amendment, the clerk will read. [SPEAKER CHANGES] Senator Wade moves to amend a bill. [SPEAKER CHANGES] Senator Wade is recognized, explain the amendment. [SPEAKER CHANGES] Thank you Mr. President. This amendment directs the Commission for Public Health to clarify its rules that prohibit smoking in bars and restaurants. By doing this is will ensure consistency in interpretation and enforcement, and it also would have them clarify the definition of enclosed areas for this purpose. I'd be happy to answer any questions. [SPEAKER CHANGES] Is there any discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Kinnaird. [SPEAKER CHANGES] In bars and restaurants. Right now they need to be clarified so that they're enforced and they're consistent in the same manner in every area. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Allran for what purpose do you rise? [SPEAKER CHANGES] To ask the senator a question. [SPEAKER CHANGES] Senator Wade do you yield for a question? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] Is this the same amendment that was defeated in committee? [SPEAKER CHANGES] No it is not sir. [SPEAKER CHANGES] It is not? [SPEAKER CHANGES] No sir. [SPEAKER CHANGES] OK. Thank you. [SPEAKER CHANGES] Senator Stein for what purpose do you rise? [SPEAKER CHANGES] To see if the amendments sponsor will yield for a question. [SPEAKER CHANGES] Senator Wade do you yield? [SPEAKER CHANGES] Yes sir I will. [SPEAKER CHANGES] Thank you. I'm looking in the amendment on lines 19 through 22 and there are a lot of statutory cites, which is rules adopted pursuant to the sixth section shall be exempt form the requirements of, and then are not subject to, and there are a lot of statutory cites. Can you explain what those provisions are and why they have those exceptions? [SPEAKER CHANGES] Yes sir I can. The first one will exempt them from a fiscal note, the second exempts them from rules reviewed by the commission and the third one would send them back for legislative review. [SPEAKER CHANGES] Senator Bryant did you have a question? For what purpose do you rise senator? [SPEAKER CHANGES] To be heard on the amendment. [SPEAKER CHANGES] You want to speak to the amendment? Senator Bryant has the floor to speak to the amendment. [SPEAKER CHANGES] I was just wanting to, it looks like this may be okay, but I just, because of all these statutory references I know I'm wanting to object the third reading so I can make clarify what it actually does since this is the first time I've ever seen it. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Apodaca for what purpose do you rise? [SPEAKER CHANGES] We don't have third reading on amendments. [SPEAKER CHANGES] This is just an amendment senator. [SPEAKER CHANGES] I Understand this is an amendment, I'm talking about on the bill. Obviously I mean if this passes and it's in the bill, I would be concerned about having more time to understand what it really does, that was my only point. [SPEAKER CHANGES] Thank you senator. [SPEAKER CHANGES] I didn't mean object to third reading to the amendment of course. [SPEAKER CHANGES] Thank you senator. Senator Nessbitt for what purpose do you rise? [SPEAKER CHANGES] Yes Mr. President, would the lady yield to a question? [SPEAKER CHANGES] Senator Wade do you yield? [SPEAKER CHANGES] Yes sir I will. [SPEAKER CHANGES] Why do we want, why all of a sudden are we taking this set of rules and exempting them from everything? Exempting them from rules reviewed. There's a process, and just let me make a statement. There's a process by which you adopt rules and the public has a chance to have input and it goes through a process, we don't have to worry with it and it works pretty well. So why are we saying that these rules aren't subject to any of that? [SPEAKER CHANGES] I think they need to come back before the legislative body just to make sure it's an open process.

[0:00:00.0] And it would expedite the process and is not unusual it’s then… [SPEAKER CHANGES] To speak on the amendment. [SPEAKER CHANGES] Senator ___[00:12] is recognized to speak on the amendment. [SPEAKER CHANGES] Thank you Mr. President and members of the Senate I have been watching and maybe we are doing it all the time but I hope not. We have a rules process so that we don’t have to do all the steps. We pass a law and give it to the agency to implement rules and the only way you can delegate that responsibly is that if the people have a chance to watch it and make the rules and object and then if something wrong bring it back to us so can fix it and we let the process work but this is a convoluted way of getting at here and I think those things to do is not passes amendment now and if it’s imperative or it’s a good thing we can put it on another bill where it can go through a committee and we can see it. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator Jackson what purpose you have? [SPEAKER CHANGES] To speak on the amendment. [SPEAKER CHANGES] Senator Jackson has the floor to speak on the amendment. [SPEAKER CHANGES] I hope I wanna make this clear I will do my best to ask you some of the questions that this amendment basically will clarify that the public health department has the final authority to make rule on whether you can smoke inside or outside but currently there seems to be there are rules all over the place as in the lot of cases in the state and this bill basically, this amendment excuse me will just clarify that the public health department has a final say on what the rules will be and how they will be administered and I would appreciate this forward. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator ___[01:54] what purpose you have? [SPEAKER CHANGES] Senator Jackson yells to a question. [SPEAKER CHANGES] Senator Jackson do you yell? [SPEAKER CHANGES] Reluctantly. [SPEAKER CHANGES] Could you draw us an amendment that says that so I can vote for it because I’m not sure that this one says a whole lot more than that. It says they are gonna write the rules and there is not gonna be proper side of those rules. [SPEAKER CHANGES] Mr. President to respond, Senator ___[02:18] that is not the intent of this amendment I assure you with that. [SPEAKER CHANGES] Mr. President… [SPEAKER CHANGES] Senator ___[02:27] what purpose you ask? [SPEAKER CHANGES] To ask Senator Jackson a question. [SPEAKER CHANGES] Senator Jackson do you yell? [SPEAKER CHANGES] Yes, Sir. [SPEAKER CHANGES] What is going on now in the way of rules are local public health departments writing rules I mean what is existing system now that this would be replacing? [SPEAKER CHANGES] Mr. President to respond, Senator ___[02:53] the best I understand I have been told personally is that they are all over the board, one county may have one set of rules another county may have another set and municipality may have a totally different set within the same county. So, this was an effort to make it uniform all across the states so folks would know what the laws are and the county folks and city folks would know how to enforce it. [SPEAKER CHANGES] Senator Goolsby what purpose you ask? [SPEAKER CHANGES] Mr. President in my own county we had an issue related to what Senator Jackson was just talking about where a local restaurant operator a number of different franchises across the state and it so happened then in my county they interpreted the statue much more narrowly and actually either know they will operating an outside smoking area with so many egresses and entrances and exits and a wall here but not a wall on three sides, they ended up interpreting it completely different than anybody else in the state and shutdown their outside smoking area and I do think from what I saw happen and so what I felt like it was arbitrary of local entities getting into this and not having any laws that were actually setout, I can definitely see a reason for it for what I experience in my own county. [SPEAKER CHANGES] Senator Barringer has an excuse to absence for the remainder the afternoon. Senator Raid what purpose you ask? [SPEAKER CHANGES] To speak on the amendment. [SPEAKER CHANGES] Senator Raid has the floor to speak on the amendment. [SPEAKER CHANGES] I just wanna to clarify a couple of things to commission for public health already has rules and there will be an interpreted differently, in different counties and they are not being enforced to saying, “This is merely telling not changing the rules but telling them to amend and clarify the rules so that they can be interpreted and enforced consistently throughout the state of North Carolina.” It’s not writing new rules it’s clarifying… [0:04:59.9] [End of file…]

when amending the rules so that each local health department will interpret them as best as we can consistently. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator McKissick, for what purpose do you rise? [SPEAKER CHANGES] Ask Senator Wade a question. [SPEAKER CHANGES] Senator Wade, do you yield for a question? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] This is just a simple question. Why don't they bring people together and have a meeting or a seminar and tell them what the way these rules should be interpreted as opposed to going back through the process. It sounds like the rules are already, generally in place. Why are we going back and administratively establishing a new process of procedure for doing so because it would seem to be easy just to disseminate either a flyer or a sheet in the mail or something that would provide appropriate information for consistent application as opposed to going through this process. Have they attempted doing that and that effort has failed or why are we resorting to this as what I would consider to be a last effort to address what appears to be a problem. I don't know how frequent this problem has occurred or whether it's occurred on a widespread basis or that there's one or two incidences where simple clarification would do the job. [SPEAKER CHANGES] Mr. President, may I answer. [SPEAKER CHANGES] Senator Wade, you have the floor to answer the question. [SPEAKER CHANGES] Senator, first, obviously there's some problems with interpretation so we need to clarify those. Sending the flyer out or getting together with a group is not going to be able to straighten that out for generations to come or people coming behind that staff. We need to have it written so it's clarified and you can go through the law and the rules to see what and interpret it the same. We don't need to have one group of people interpret one way and another the other. You need to have it written out. Any rule should be able to be interpreted somewhat the same with consistency and I think this is what this is morally trying to do. Have consistency since we already know that different localities are interpreting it differently therefore we need to clarify that there's that problem. [SPEAKER CHANGES] Mr. President, I just want to speak on the amendment. [SPEAKER CHANGES] Senator McKissick has the floor to speak to the amendment. [SPEAKER CHANGES] It would seem to me we already have rules and regulations in place that just simply need to be completely understood. There may be an occasional misinterpretation but I think that could happen anywhere dealing with building codes and regulations or anything else. You simply clarify it and there may be some local interpretation that may not be consistent with what the intent was so I'm not completely convinced that this is something we need to do. I certainly don't want to think that the goal here is to undermine, in any respect, the prohibitions that presently exist on smoking in bars and restaurants. If there's any goal here that's an undercurrent to undermine that then that would deeply disturb me. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Jackson, for what purpose do you rise? [SPEAKER CHANGES] To speak on the amendment a second time. [SPEAKER CHANGES] Senator Jackson has the floor to speak on the amendment a second time. [SPEAKER CHANGES] I didn't know I was going to spend more time on this amendment than the bill but I just wanted, and it came back to me, I was refreshed, staff refreshed my memory. They currently only have three rules and they really need to clarify those. They're so broad they're being interpreted totally ever how you see fit. Senator McKissick, I'm sure you might interpret it differently than I would. So we're asking them to go back and make some more rules and clarify those rules with this amendment. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of amendment 6. All in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote. Brunstetter, aye. Goolsby, aye, 36 having voted in the affirmative and 10 in the negative amendment 6 is adopted. The bill as amended is back before the body. Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 94 as amended on its second reading. All in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote. Tucker, Tucker, aye. McKissick, no. Walters, aye, 35 having voted in the affirmative and 11 in the negative Senate Committee Substitute to House Bill 94 as amended passes its second reading. [SPEAKER CHANGES] Objection. [SPEAKER CHANGES] Senator Bryant objects to third reading and the bill will remain on

On the calendar. House Bill 110, the clerk will read. [SPEAKER CHANGES] House Bill 110, public contract project labor. [SPEAKER CHANGES] Senator Gunn is recognized. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Brown is recognized. [SPEAKER CHANGES] Thank you, Mr. President. What the bill will do is prohibit the state from requiring or prohibiting project labor agreements in government construction contracts or conditioning the award of grants for tax incentives on the existence of absence of those project labor agreements. I'll try to answer any questions. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Committee Substitute to House Bill 110 on second reading. All in favor will vote aye, opposed will vote no. 5 seconds will be allowed for the voting. The clerk will record the vote. Berger, aye. 44 having voted in the affirmative and 2 in the negative, Committee Substitute to House Bill 110 passes its second reading. Without objection, will be read a third time. [SPEAKER CHANGES] The General Assembly of North Carolina enacts. [SPEAKER CHANGES] Further discussion or debate? Hearing none, the question before the Senate is the passage on third reading of the Committee Substitute to House Bill 100. All in favor say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. The ayes have it. Committee Substitute to House Bill 110 passes its third reading. It will be enrolled and sent to the Governor. House Bill 168, the clerk will read. [SPEAKER CHANGES] House Bill 168, division of attorneys fees in worker's comp. [SPEAKER CHANGES] Senator Goolsby is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President. This bill requires the Industrial Commission to hear and determine disputes between employees current and past attorneys regarding the division of a fee. I also have an amendment that's been handed up to the clerk. [SPEAKER CHANGES] Clerk will read. [SPEAKER CHANGES] Senator Goolsby moves to amend the bill. [SPEAKER CHANGES] Senator Goolsby is recognized to explain the amendment. [SPEAKER CHANGES] Thank you, Mr. President. It excludes superior court cases that are already filed from this bill. Appreciate your support in the amendment. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of amendment 1. All in favor vote aye, opposed vote no. 5 seconds will be allowed for the voting, the clerk will record the vote. Soucek, aye, Tucker, aye, Nesbitt, aye. 46 having voted in the affirmative and 0 in the negative, amendment 1 is adopted. The bill as amended is back before the body, is there any discussion or debate? Any discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES] Inquiry of the chair? [SPEAKER CHANGES] Senator Apodaca, you have the floor for your inquiry. [SPEAKER CHANGES] Mr. President, do you think it's appropriate that any attorneys in here that split fees should not vote on this bill. [SPEAKER CHANGES] Senator, you're out of order. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Please sit down. [SPEAKER CHANGES] Follow up. Are you an attorney now? [SPEAKER CHANGES] I am not, but you're still out of order. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Nesbitt, for what purpose do you rise? [SPEAKER CHANGES] ?? voting hope that someone would split a fee with us. [SPEAKER CHANGES] Any discussion or debate. Hearing none, the question before the Senate is the passage of the Committee Substitute to House Bill 168 as amended on its second reading. All in favor will vote aye, opposed will vote no. 5 seconds will be allowed for the voting. The clerk will record the vote. Newton, aye. 43 having voted in the affirmative and 3 in the negative, Committee Substitute to House Bill 168 as amended passes its second reading. Without objection will be read a third time. Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Committee Substitute to House Bill 168 as amended on its third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed no. The ayes have it. Committee Substitute to House Bill 168 as amended passes its third reading. It will be sent to the House for concurrence in the amendment. House Bill 250, the clerk will read. [SPEAKER CHANGES] House Bill 250, Charter Schools enrollment and charter revisions. [SPEAKER CHANGES] Senator Sanderson is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President, members of the Senate. House Bill 250 would make changes to the enrollment priority and procedures for charter schools and would make changes as to what

Qualifies as a material revision to a charter application. Section one would define the term sibling to include half siblings, step siblings, and children residing in a family foster home if they all reside in the same household. It will allow a charter school to give enrollment priority for children of full time employees. It would add a limitation for the enrollment priority allowed for children of full time employees and children of the initial members of the board of directors in the first year of the schools operation to 10% of the schools total enrollment. Create a new class of enrollment priority for students who were enrolled in the charter school within the two previous school years but left the school early for one of two reasons, to participate in an academic study abroad program or a competitive admission residential program, or because of the vocational opportunities of the students parents. It would allow a charter school to enter all siblings into a lottery together under one surname. Section two would expand to offer grades four and five if the charter school has previously been authorized to offer grades kindergarten through grades three. Expand to offer grades seven and eight, if the charter has previously been authorized to offer grade six, and expand to offer 10, 11 and 12 if the charter school has previously been authorized to offer grade nine. And Mr. President at the appropriate time I'd like to send forth an amendment. [SPEAKER CHANGES] You can send forward your amendment Senator, the clerk will read. [SPEAKER CHANGES] Senator Sanderson moves to amend a bill. [SPEAKER CHANGES] Senator Sanderson is recognized to explain the amendment. [SPEAKER CHANGES] Thank you Mr. President. The amendment, members, simply would do one thing, it would allow these charter schools to only expand one grade higher than the charter school currently offers. And so if they currently offer ninth grade they would only be able to go to tenth grade the next year, the year after that eleventh, the year after that to twelfth. [SPEAKER CHANGES] Is there any discussion or debate? [SPEAKER CHANGES] Mr President. [SPEAKER CHANGES] Senator Hartsell for what purpose do you rise? [SPEAKER CHANGES] I'd like to send forward an excuse from voting. [SPEAKER CHANGES] Senator, you can send forward your rule. Is there any discussion or debate on the amendment? Senator Nesbitt for what purpose do you rise? [SPEAKER CHANGES] Yes Mr. President, would the gentleman yield to a question? [SPEAKER CHANGES] Senator Sanderson do you yield? [SPEAKER CHANGES] yes sir I will. [SPEAKER CHANGES] I apologize for having to ask you this but there's so many bills going we can't get all of our research done. It's my understanding this provision had to do with [??] county? [SPEAKER CHANGES] Pamlico county. [SPEAKER CHANGES] Pamlico county, and it's about the high school there. Can you tell me how many students are in the high school in Pamlico? [SPEAKER CHANGES] Sir there's about 1200 students total in Pamlico county in the original or traditional public school. I don't know there's - I would say around 400, 4 to 500 in the high school. [SPEAKER CHANGES] Will he yield to a question? [SPEAKER CHANGES] Senator Sanderson do you yield for a follow up? [SPEAKER CHANGES] I will. [SPEAKER CHANGES] I'm assuming that would be about 100 per grade? [SPEAKER CHANGES] I can't give you those exact numbers, I really don't have those. [SPEAKER CHANGES] Will he yield to another question? [SPEAKER CHANGES] Senator Sanderson do you yield? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] Have they expressed concern about the dilution for the high school population? [SPEAKER CHANGES] Yes sir, the local school board has expressed a great deal of concern about what this Arapahoe Charter School would like to offer and any other charter school that finds themselves in a similar situation, they have adamantly opposed this from the very beginning. But to me this comes down and to my constituents, especially the parents of the charter school, that this comes down to a school choice issue for parents. This particular charter school only wants to be able to offer an additional grade so that the students who are already enrolled in that charter school, the students who are already in grade nine, will have grade 10 available to them so that they do not have to change schools. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none the question before the senate is the passage of amendment one. All in favor vote aye, opposed vote no, 5 seconds will be allowed for the voting, the clerk will record the vote. 38 having voted in the affirmative and 7 in the negative, amendment one is adopted the bill as amended is back before the body. Is there any further discussion or debate? Senator Tillman for what purpose do you rise? [SPEAKER CHANGES] To offer two simple amendments. [SPEAKER CHANGES] Senator you can send forward your amendment. Did you say two amendments senator, what's the first one you want to offer up? [SPEAKER CHANGES] Let's take the one on top.

?? Senator Tillman moves to amend the bill. [Speaker Change] Senator Tillman is recognized and explain the amendment. [Speaker Change] This amendment simply says that after one year of operation, the charter school will make an effort to have a population that will reflect the ethnic and racial makeup of the LEA or the surrounding area that it draws from. That's all it does. [Speaker Change] Is there any discussion or debate? [Speaker Change] Senator Anderson, for what purpose do you rise? [Speaker Change] Thank you Mr. President, I would support this is a good amendment and I would support this amendment. [Speaker Change] Senator Stein, for what purpose do you rise? [Speaker Change] To see if Senator Tillman will yield for a question. [Speaker Change] Senator Tillman, will you yield? [Speaker Change] For you, anything Senator. [Speaker Change] Thank you. There was a concept like this in the original bill that was moved from one part of the bill to the front, and I don't have the paper in front of me. How does this differ from what's in the underlying bill? [Speaker Change] This simply restates, and I believe the other legislation's language may be out of the, the House has done a lot of work on this charter bill since it's been over there, Senator, and I understand this needs to be back in there to make our intent clear that that's what we want to do with the makeup of the school. [Speaker Change] Follow up question. [Speaker Change] Senator Tillman, do you yield for follow up? [Speaker Change] I do. [Speaker Change] So, I'm looking at page one, lines 25 through 32, is it different than that? [Speaker Change] Well the House bill sponsor thought we needed this. What page are you on? Senator, Mr. president, what page are you on? [Speaker Change] I was on page one. I'm sorry. I was on page one of the bill, lines 25. My astute colleagues have pointed out the difference, Senator Tillman, if you'd like me to answer my own question. [Speaker Change] Senator Stein, why don't you go ahead and answer your question to Senator Tillman. [Speaker Change] What the amendment does is lower the standard for achieving diversity by making it 'try to do it' rather than 'they shall do it', and for that reason I'm going to be voting against the amendment, although I'm sure offered in good faith. [Speaker Change] Senator Tillman, you are recognized. [Speaker Change] To respond. [Speaker Change] To respond. {Speaker Change] Pick on the amendment. You can not guarantee a new charter school or any other charter school that will be able to quickly make these things and ratios hard and fast. We can not do that. They just can not adapt to do that. And this says that we'll make every effort to do so. That's all it does, it just clears it up enough to make it something that is a goal worthy of trying to do. [Speaker Change] Is there any further discussion or debate? Hearing none, the question before the is the passage of amendment two. All in favor vote 'Aye', opposed vote 'No'. Five seconds will be allowed for the voting and the court will record the vote. 34 having voted in the affirmative and 11 in the negative, amendment two is adopted. The bill, as amended,is back before the body. Is there any further discussion or debate? Senator Tillman? [Speaker Change] Mr. President, to send forth the second amendment. [Speaker Change] Senator, you can send forth your second amendment. The clerk will read. [Speaker Change] Senator Tillman moves to amend the bill. [Speaker Change] Let's wait one second, Senator, while that amendment- There it is. Senator Tillman is recognized to explain the amendment. [Speaker Change] Mr. President, I believe everybody's got it but Senator Bingham, but to explain the amendment, that will simply say that we're going to continue to try to expand this bill a little bit to say that those children eligible to be taken in automatically would be employee's children. The original bill just had principals, teachers, and teacher assistants. This says all employees. We've got some charter schools with like 15, 20 kids, and if you had 17 kids and you only had 10% that you could allow in, that would be 1.7 children. Solomon might could've handled that but we need to at least have it 20%. That means that you could take in a couple. If we have it 20%, if you had 20 kids you could take in 4 and that just gives us a little more leeway to take in another

one of the children or two in the smaller schools. [SPEAKER CHANGES] Mr. President -- Sen. Apodaca, for what purpose do you rise? [SPEAKER CHANGES] Will Sen. Tillman yield for a question? [SPEAKER CHANGES] Sen. Tillman, do you yield? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] Sen. Tillman, did this bill come through the Education committee? This bill come through the Education -- [SPEAKER CHANGES] Yes, sir. [SPEAKER CHANGES] -- committee? [SPEAKER CHANGES] No. [SPEAKER CHANGES] Oh, it did not? [SPEAKER CHANGES] Oh, the bill came through, yes. [SPEAKER CHANGES] Yes, sir. [SPEAKER CHANGES] I just wondered. It just seems like we haven't seen it before with all these amendments. Just saying. [SPEAKER CHANGES] Sir. [SPEAKER CHANGES] Well, this a floor amendment. Do you know this? You're seeing this amendment for the first time. The bill, yes. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President -- [SPEAKER CHANGES] Sen. McKissick, for what purpose do you rise? [SPEAKER CHANGES] Can I just ask Sen. Tillman a clarifying question? [SPEAKER CHANGES] Sen. Tillman, do you yield? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] Is it your intent that this apply to all charter schools? Is that the goal of this particular amendment? [SPEAKER CHANGES] It would apply to all, yes. Yes, Senator, you're right about that. [SPEAKER CHANGES] All right. [SPEAKER CHANGES] And further discussion or debate? Hearing none, the question before the Senate is the passage of Amendment 3. All in favor vote Aye. Opposed will vote No. Five seconds will be allowed for the voting. Clerk will record the vote. Thirty-seven having voted in the affirmative and eight in the negative, Amendment 3 is adopted and the bill as amended is back before the body. Is ther any further discussion or debate? Hearing none, the question before the Senate is the passage of the Senate committee substitute to House Bill 250 as amended. On its second reading, all in favor will vote Aye. Opposed will vote No. Five seconds will be allowed for the voting. The Clerk will record the vote. [PAUSE] Thirty-four having voted in the affirmative, and 11 in the negative, the Senate committee substitute to House Bill 250 as amended passes the second reading without objection. It will be read a third time. [SPEAKER CHANGES] North Carolina ?? [SPEAKER CHANGES] Is there discussion or debate? Hearing none the question before the Senate is is the passage of the Senate committee substitute to House Bill 250 as amended on its third reading. All in favor will say Aye. [ANSWERS] Opposed No. [ANSWERS] The ayes have it. Senate committee substitute to House Bill 250 as amended passes its third reading. The amendments will be in gross and be sent to the House for concurrence in the Senate committee substitute. House Bill 296: The Clerk will read it. [SPEAKER CHANGES] House Bill 296 -- Omnibus Wildlife Resources Commission Act. [SPEAKER CHANGES] Sen. Tucker is recognized to explain the bill. [SPEAKER CHANGES] Mr. President, thank you. Members of the Senate, I bring you this Wildlife Resources Commission Act. This bill will allow the adjustment in fees for hunting fees, fishing fees, et cetera. It also incorporates a bear stamp. It also allows the charge of the Wildlife Commission to manage bears and bear hunting over bait. I've become an expert in that in the last four days. All of you have received a number of calls from these very civil folks that are objectionable to that, and there will be an amendment, Mr. President, by Sen. Hise on this before we get into discussion of the bill, please. [SPEAKER CHANGES] Sen. Hise, for what purpose do you rise? [SPEAKER CHANGES] To send forth an amendment. [SPEAKER CHANGES] Sen. Hise, you can send forward your amendment. The Clerk will read. [SPEAKER CHANGES] Sen. Hise moves to amend to bill. [SPEAKER CHANGES] Sen. Hise is recognized to explain the amendment. [SPEAKER CHANGES] Thank you, Mr. President and members of the Senate. The purpose of this amendment, really looking at the licenses we sell, this will remove the increase on the lifetime licenses for individuals. This includes those licenses available to infants, children, adults, adults over70, as well as disabled individuals and disabled veterans, all of which have different rate categories. This keeps those lifetime licenses at their current rates, except for the non-residents. It lets the non-residents continue to go up as moving forward. It also eliminates the increase in the Mountain Heritage Designated Trout Waters three-day. This is something that is used a lot in my district, purchase a lot by children who are learning to trout fish and others and moving forward. The entire impact of this amendment, when research came out with their analyst for this, they did both a 10% and a 20% resistance. If you look at a 10% resistance, the total impact of keeping these rates the same would be about $161,000. If you go to a 20% resistance, keeping the rates the same would actually be a $133,000 increase. So I guess it's somewhere between those two numbers pretty close to zero if you would average those two together. So I'd appreciate your support of this amendment. [SPEAKER CHANGES] Mr. President -- [SPEAKER CHANGES] Sen. Tucker, for what purpose do you rise? [SPEAKER CHANGES] To speak on the amendment. [SPEAKER CHANGES] Sen. Tucker has the floor to speak on the amendment. [SPEAKER CHANGES] Thank [CUTS OFF]

Sir, Senator Hise and I have worked together on this and I would certainly be in favor of this amendment. [SPEAKER CHANGE] Any further discussion or debate on amendment one? Hearing none, the question before the Senate is the passage of amendment one. All in favor will vote aye. Opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote... 45 having voted in the affirmative, and one in the negative. Amendment one is adopted, the bill as amended is back before the body. Is there any further discussion or debate? Senator Tucker, for what purpose do you rise? [SPEAKER CHANGE] Mr. President, to speak the second time on the bill. [SPEAKER CHANGE] Senator Tucker has the floor to speak the second time. [SPEAKER CHANGE] Thank you Mr. President. Just to go into a bit more length on the bill it does adjust the fees, it does establish a black bear stamp, it also allows the Wildlife Commission to set the rules for controlling the bear population. The bear hunters are not in favor of this, let me just go ahead and state that. They have a great deal of concern. About the Wildlife Commission taking over. The management of the bear population argument on the other side is is that they manage almost everything else in the state. We have received assurances from the Wildlife Commission executive director and also their board, that they will do everything that they can to be amenable to the bear hunters. This discussion has been going on a number of years, so we want to take this opportunity to put it up under Wildlife so that they can begin to manage the bear population. We’ve all seen them on t.v, the side of the road, and we have a bear sanctuary state. The bear hunters to a great job feeding the bears. The population has grown and grown and grown. It’s my hope that the Wildlife Commission and the bear hunters will be able to work together. It also moves the age when you can receive a license from 65 to 70. So I’ll have to wait on that. Also, too, it provides that no more than 25% of the Wildlife Resources Commission authorized operating ?? shall be kept in reserve. We have also, in this budget process, both in the Senate and the House, have reduced their budget, in some cases substantially, to raise these fees gets to a better situation from revenue stand point for the Wildlife Commission so that in time they will become self sufficient and less dependent upon the state. I’ll be glad to answer any questions. Thank you. [SPEAKER CHANGE] Is there any other discussion or debate? Hearing none, question before the Senate is the passage of Senate Committee Substitute to House bill 1096 as amended on it’s second reading. All in favor vote aye, all opposed vote no. Five seconds will be allowed for the voting and the clerk will record the vote. 42 having voted in the affirmative, and four in the negative. Senate Committee Substitute House bill 296 as amended passes it’s second reading without objection. Will be read a third time. [SPEAKER CHANGE] North Carolina general assembly enact. [SPEAKER CHANGE] Is there any discussion or debate? [SPEAKER CHANGE] Senator Sanderson objects to third reading. It will remain on the calendar. [SPEAKER CHANGE] House bill 327. The clerk will read. [SPEAKER CHANGE] House bill 327 Fire and Rescue Pension Revisions of 2013. [SPEAKER CHANGE] Senator Meredith is recognized. Explain the bill. [SPEAKER CHANGE] Thank you Mr. President. Members of the Senate this is an Agency bill, I’ll appreciate your support. Thank you. [SPEAKER CHANGE] Is there any other discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute House bill 327 on a second reading. All in favor will vote aye, opposed will vote no. Five second will be allowed for the voting. The clerk will record the vote. Kinnaird, aye. Clark, aye. 46 having voted in the affirmative and zero in the negative. Senate Committee Substitute to House bill 327 passes it’s second reading without objection. Will be read a third time. [SPEAKER CHANGE] North Carolina general assembly enacts. [SPEAKER CHANGE] Is there any further...set to the House for concurrence in the Senate Committee Substitute. House bill 357. The clerk will read. [SPEAKER CHANGE] House bill 357 Retirement Government ?? Act of 2013. [SPEAKER CHANGE] Senator Barefoot’s recognized. Explain the bill. [SPEAKER CHANGE] Members, House bill 357 seeks to increase citizen oversight, improve the efficiency of, and improve transparency over, state personnel retirement systems. By assuring that all retirement systems are overseen by a board of trustees, and I would like to send forth an amendment. [SPEAKER CHANGE] Senator you can send forward your amendment. The clerk will read.

The clerk will record the vote. Jackson, aye. Clodfelter, aye. 46 have voted in the affirmative and 0 in the negative amendment 1 is adopted. The bill as amended is back before the body. Is there any further discussion or debate? Hearing none, the question before Senate is the passage of the Senate committee substitute of House Bill 357 as amended on its second reading. All in favor vote aye, opposed vote no. Five seconds will be allowed for the voting. The clerk will record the vote. Soucek, Soucek aye. 46 have voted in the affirmative and 0 in the negative, Senate committee substitute of House Bill 357 as amended passes second reading without objection. Will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of Senate committee substitute to House Bill 357 as amended on its third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed no. The ayes have it. Senate committee substitute to House Bill 357 as amended passes its third reading. The amendment will be sent to the House for concurrence. In the Senate committee substitute. House Bill 358. The clerk will read. [SPEAKER CHANGES] House Bill 358. Retirement technical correction. [SPEAKER CHANGES] Senator Barefoot is recognized to explain the bill. [SPEAKER CHANGES] This bill makes purely technical corrections to the general statute as needed to conform to changes made in the code of the IRS and makes other technical and conforming to statutes affecting North Carolina public employment systems. I urge your support. [SPEAKER CHANGES] Any discussion or debate? Hearing none, the question before the Senate is the passage of the committee substitute of House Bill 358 on its second reading. All in favor will vote aye, all opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Soucek, aye. 46 have voted in the affirmative and 0 in the negative, Senate committee substitute of House Bill 358 passes its second reading without objection and will read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate. Hearing none, the question before the Senate is the passage of the committee substitute of House Bill 358 on its third reading. All in favor say aye. [SPEAKER CHANGES] All opposed say no. The ayes have it. Committee substitute of House Bill 358 passes its third reading. It will be enrolled and sent to the governor. House Bill 362. The clerk will read. [SPEAKER CHANGES] House Bill 362 Department of public safety changes. [SPEAKER CHANGES] Senator Sanderson is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President. Members, House Bill 362 is an agency bill that makes a number of conforming changes to reflect the 2011 consolidation and reorganization of public safety. I know of no opposition and I encourage your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage Senate committee substitute to House Bill 362 on it’s second reading. All in favor, vote aye. All opposed, vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Soucek, aye. Daniel. 45 have voted in the affirmative and 0 in the negative, the Senate committee substitute to House Bill 362 passes its second reading without objection. Will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of Senate committee substitute to House Bill 362 on this third reading. All in favor say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] ‘ All opposed no. The ayes have it. Senate committee substitute to House Bill 362 passes its third reading. It will be sent to the house for concurrence in the Senate committee substitute. Senator Raven has an excused absence for the remainder of the day. House Bill 371. The clerk will read. [SPEAKER CHANGES] House Bill 371 Chiropractic assistance certification fee. [SPEAKER CHANGES] Senator Heist is recognized to explained the bill. [SPEAKER CHANGES] Thank you, Mr. President. Members of the Senate, what this bill simply does is allow the Board of Chiropractic examiners to certify chiropractic clinical assistance and henceforth some of the minimum requirements for individuals wishing to fulfill those positions and to be certified by the board. Allows them to do rules. I encourage your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of House Bill 371 on its second reading. All in favor vote aye, opposed vote no, Five seconds will be allowed for the voting. The clerk will record the vote. 45 have voted in the affirmative and 0 in the negative, House Bill 371 passes its second reading without objection. Will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of House Bill 371.

…71 on its third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. The ayes have it. House Bill 371 passes its third reading. It will be enrolled and sent to the Governor. Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES] Motion, please. [SPEAKER CHANGES] Senator Apodaca has the floor for a motion. [SPEAKER CHANGES] Thank you, Mr. President, Members. House Bill 392 is the next bill on the calendar. It’ll have to be removed and placed on next Tuesday, the 9th’s calendar, please. [SPEAKER CHANGES] Objections? So ordered. House Bill 402. Clerk will read. [SPEAKER CHANGES] House Bill 402, Tri-Care Supplements for Flex Accounts. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Hise is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President, Members of the Senate. What this does is allows under the Flex account, which most of us use for retirement benefits, it allows for individuals to pay for their Tri-Care benefits they receive under the Flex account. This allows them to get tax deferred in order to do that. I appreciate your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate as it passes, Senate Committee Substitute to House Bill 402 on its second reading. All in favor vote aye, opposed will vote not. Five seconds will be allowed for the voting and the clerk will record the vote. [SPEAKER CHANGES] ?? [SPEAKER CHANGES] Apodaca, aye. [SPEAKER CHANGES] Nesbitt, aye. [SPEAKER CHANGES] Forty-five having voted in the affirmative and zero in the negative, Senate Committee Substitute to House Bill 402 passes its second reading without objection, be read a third time. [SPEAKER CHANGES] North Carolina ?? Act. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate as it passes, Senate Committee Substitute to House Bill 402 on its third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. The ayes have it. Senate Committee Substitute to House Bill 402 passes its third reading. It will be sent to the House for concurrence on the Senate Committee Substitute. House Bill 428. Clerk will read. [SPEAKER CHANGES] House Bill 428, North Carolina School Bus Safety Act. [SPEAKER CHANGES] Senator Parmon is recognized to explain the Act. [SPEAKER CHANGES] Thank you, Mr. President and Colleagues. House Bill 428 will raise the requirement for someone passing a stopped school bus with the arm extended. Currently there is no minimum fine. This bill will add a minimum fine and increase penalties for violations, continuous violations of passing a stopped school bus. This bill was brought to bring attention to the fact that we’ve had too many of our students getting on school buses killed by people not stopping and this hopefully will bring more awareness and increase the penalties. And Mr. President, I’d like to send forth an amendment. [SPEAKER CHANGES] Senator, you can send forth your amendment. The clerk will read. [SPEAKER CHANGES] Senator Parmon moves to amend the bill. [SPEAKER CHANGES] Senator Parmon is recognized to explain the amendment. [SPEAKER CHANGES] This amendment will change the title, to honor the student killed in Forsyth County December 12th getting on the school bus, to Hasani N. Wesley Students, and it will be a memorial for all students killed getting on a school bus. And I ask for your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none the question before the Senate is the passage of Amendment 1. All in favor vote aye. Opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. [SPEAKER CHANGES] Hise, aye. [SPEAKER CHANGES] Forty-four having voted in the affirmative and one in the negative, Amendment 1 is adopted. The bill as amended is back before the body. Senator Parmon is recognized. [SPEAKER CHANGES] I would just ask the members to support the bill and hope that we will guarantee safety for our students getting on school buses. Thank you. [SPEAKER CHANGES] Is there any further discussion or debate? Senator McKissick, for what purpose do you rise? [SPEAKER CHANGES] Send forth an amendment. [SPEAKER CHANGES] Senator McKissick, you can send forth your amendment. The clerk will read. [SPEAKER CHANGES] Senator McKissick moves to amend the bill. [SPEAKER CHANGES] Senator McKissick is recognized to explain the amendment. [SPEAKER CHANGES] The amendment is pretty straightforward. It adjusts the penalty somewhat. I’ve discussed the amendment with Representative Hanes and Representative Lambeth, the sponsors of the bill, and they are supportive of the amendment. I request your support – [SPEAKER CHANGES] Is there – [SPEAKER CHANGES] – as well. [SPEAKER CHANGES] – is there any discussion or debate? Hearing none, the question before the body is the passage of Amendment 2. All in favor will vote aye, opposed will vote no. Five seconds will be allowed for the voting. Clerk will record the vote. Hise, no. Thirty-seven having voted in the affirmative and eight in the negative, Amendment 2 is adopted. [SPEAKER CHANGES] Mr. President…

Senator Rucho... [SPEAKER CHANGES] Can I change my vote, please. [SPEAKER CHANGES] Senator Rucho changes his vote from Aye to No. Final count 35 to 10. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Pate changes his vote from Aye to No. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Tillman changes his vote Aye to No. Final number 33 to 12. Amendment 2 is adopted. The bill as amended is back before the body. Is there any further discussion or debate? Senator Tucker, for what purpose do you rise? [SPEAKER CHANGES] Thank you, Mr. President. To speak on the bill. [SPEAKER CHANGES] Senator Tucker has the floor to speak on the bill. [SPEAKER CHANGES] First of all, I'd like to thank Senator Parmon for bringing this forward. Just making the body aware. Senator Bingham brought this up in our committee meeting. We have over 500,000 incidents of people passing school buses a year in North Carolina documented by the school bus drivers. And I know we're strapped for money, but there is technology available that can take a picture of the vehicle coming toward the school bus with the stopped arm out. As the individual passes, it takes a picture of who is driving the car, and then as it goes back behind the school bus, it takes a picture of the driver's license. I know we can raise and reduce fines, but I can tell you these children are in danger and one of these days we'll have to spend the dollars because those cameras will stop it. We've had a study plan in place in Rowan County, and they have gotten over 80% convictions. A lot of time people just I give, they got them on tape. It's no question about the fact of the violation, so the technology is available. So thank Senator Parmon for moving forward. I'm sorry about that student in Forsyth County. Thank you. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 428 as amended on the second reading. All in favor will vote Aye, all opposed vote No. Five seconds will be allowed for the voting, and the Clerk will record the vote. 45 having voted in the affirmative and zero in the negative, Senate Committee Substitute to House Bill 428 as amended passes as a second reading without objection to be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 428 as amended on its third reading. All in favor will say Aye, opposed No. The Ayes have it. Senate Committee Substitute to House Bill 428 as amended passes its reading. The amendments will be engrossed, will be sent to the House for concurrence, and the Senate Committee Substitute. House Bill 450, the Clerk will read. [SPEAKER CHANGES] House Bill 450, Criminal Contempt Bail Procedure. [SPEAKER CHANGES] Senator Daniel. Senator Daniel, are you explaining this one? [SPEAKER CHANGES] Thank you, Mr. President. Members of the Senate, this bill provides procedures for bail when a person has been found in criminal contempt of court and confinement has been imposed. I would ask for your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 450 on its second reading. All in favor will vote Aye, all opposed vote No. Five seconds will be allowed for the voting, and the Clerk will record the vote. Newton, Aye. Soucek, Aye. Woodard.... [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] 43 have voted [SPEAKER CHANGES] I want to change my vote to Aye. [SPEAKER CHANGES] Senator Walters wants to change his vote to Aye. 44 having voted in the affirmative and zero in the negative, Committee Substitute to House Bill 450 passes its second reading without objection to be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 450 on its third reading. All in favor will say Aye, opposed No. The Ayes have it. Senate Committee Substitute to House Bill 450 passes its third reading. The bill will be enrolled and sent to the governor. House Bill 462, the Clerk will read. [SPEAKER CHANGES] House Bill 462. Increase family court fee. [SPEAKER CHANGES] Senator Meredith is recognized. [SPEAKER CHANGES] Thank you, Mr. President. Members of the Senate, this does exactly what the title says. It will increase the family court fees. I'd appreciate your support. Thank you. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the House Bill 462 on its second reading. All in favor will vote Aye, all opposed vote No. Five seconds will be allowed for the voting, and the Clerk will record the vote. Nesbitt? Nesbitt? Senator Nesbitt? Aye. Stein, Aye. Woodard. 40 having voted in the affirmative and 4 in the negative. House Bill 462... [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Kinnaird. [SPEAKER CHANGES] I believe I'm going to change my vote to No also. [SPEAKER CHANGES] Senator Kinnaird changes her vote. [AUDIO ENDS]

to know the final count is 39 voting in the affirmative and 5 in the negative. House Bill 462 passes its second reading without objection. Will be read a third time. [SPEAKER CHANGES] ??? [SPEAKER CHANGES] Is there any discussion or debate? Hearing none the question before the Senate is the passage of House Bill 462 on its third reading. All in favor say aye. Opposed no. The ayes have it. House Bill 462 passes its third reading. It will be enrolled and sent to the Governor. House Bill 492 the Clerk will read. [SPEAKER CHANGES] House Bill 492. Safeguard Qualified Individuals Medicaid Personal Care Services. [SPEAKER CHANGES] Senator Hise is recognized to explain the bill. [SPEAKER CHANGES] Thank you Mr. President and members of the Senate. This bill is designed in its purpose to especially address the needs of individuals who may be in special care units expand the hours in which they can receive personal care services from a current maximum of 80 up to 130 hours. There are some changes to rates across the board to make that net cost neutral to the State. This is consistent as an overall policy with what was in the Senate budget and at the appropriate time Mr. President I'd like to send forth an amendment. [SPEAKER CHANGES] The time is appropriate Senator to send forward your amendment. The Clerk will read. [SPEAKER CHANGES] Senator Hise moves to amend the bill. [SPEAKER CHANGES] Senator Hise is recognized to explain the amendment. [SPEAKER CHANGES] Thank you Mr. President. This does two things to this bill. The first one is it changes a report that was in August that was coming back to Appropriations Subcommittees in both the House and the Senate. It is our hope that those committees aren't here at that point and instead would send it to the Legislative Oversight Committee on HHS, kind of a ?? that was in the bill but further moves we have one of the definitions in there that I think clarifies so that an individual doesn't have to exhibit four different symptoms at the same time but merely show that they have a history of those symptoms. I'd be happy to answer any questions. [SPEAKER CHANGES] Any discussion or debate? Hearing none, question before the Senate is the passage of the amendment 1. All in favor will vote aye, those opposed no. Five seconds will be allowed for the voting and the Clerk will record the vote. 44 having voted in the affirmative and 0 in the negative, Amendment 1 is adopted. The bill as amended is back before the body. Is there any discussion or debate? Hearing none, question before the Senate is the passage of the Senate Committee substitute 492 as amended on its second reading. All in favor will vote aye, opposed will vote no, five seconds will be allowed for the voting and the Clerk will record the vote. Woodard aye, Ford aye, Rucho, aye. 45 having voted in the affirmative and 0 in the negative, Senate Committee substitute the House Bill 492 as amended passes its second reading without objection and will be read a third time. [SPEAKER CHANGES] ??? [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of Senate Committee substitute the House Bill 492 as amended on its third reading. All in favor will say aye. Opposed no. The ayes have it. Senate Committee substitute the House Bill 492 as amended passes its third reading. The amendment will be engrossed, will be sent to the House for concurrence in the Senate Committee substitute. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES] Two motions relative to the calendar. [SPEAKER CHANGES] Senator Apodaca has the floor for his motions. [SPEAKER CHANGES] Thank you Mr. President. Members. House Bill 510 Foster Care Childrens Bill of Rights has to be removed from today's calendar and placed on how about Tuesday the 9th. [SPEAKER CHANGES] No objection. So ordered. [SPEAKER CHANGES] Also Mr. President, House Bill 802, Landlord Tenant Shortened Eviction Time remove it and place on Tuesday, the 9th, calendar also. [SPEAKER CHANGES] No objection. So ordered. House Bill 635. Clerk will read. [SPEAKER CHANGES] House Bill 635, Involuntary Commitment Custody Orders. [SPEAKER CHANGES] Senator McKissick is to explain the Bill. Is Senator MMcKissick in the Chamber? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Parmon is recognized to explain the Bill. [SPEAKER CHANGES] Mr. President, this is a bill that will allow sheriff deputies and police officers when they have carried a client or a patient to the emergency room, currently they have to stay which sometimes can run into three or four hours. This bill would allow them to give custody to a qualified medical person who would then take them into custody and it would relieve the law enforcement officer

To go back to the street and do the duties. And this is supported by hospitals and law enforcement. [SPEAKER CHANGES] Thank you Senator. [SPEAKER CHANGES] Ask for your support. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question for the Senate is the passage of the Senate Committee Substitute to House Bill 635 on its second reading. All in favor vote aye. Opposed to vote no. Five seconds will be allowed for the voting. the clerk will record the vote. 44 having voted in the affirmative and zero in the negative. Committee Substitute to House Bill 635 passes its second reading. Without objection, will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none the question for the Senate is the passage of the Committee Substitute to House Bill 635 on its third reading, all in favor will say aye. Opposed no. The ayes have it. Committee Substitute to House Bill 635 passes its third reading and it will be enrolled and sent to the Governor. House Bill 754 the clerk will read. [SPEAKER CHANGES] House Bill 754, Lease, Purchase of Real Property, Community College. [SPEAKER CHANGES] Senator Daniels recognized to explain the bill. [SPEAKER CHANGES] Thank you Mr. President. Members of the Senate. House Bill 754 authorizes the Board of Trustees of the Community College to use local funds for lease purchase, or installment purchase contracts to buy real estate. All other aspects of current law remain in place including requirement for resolution from the tax-levying authority. I ask your support for the amendment, for the bill. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Committee Substitute to House Bill 754 as amended on its second reading. All in favor will vote aye, opposed to vote no. Five seconds to be allowed for the voting and the clerk will record the vote. [SPEAKER CHANGES] Nesbitt, Nesbitt aye, Tucker aye, Tillman aye, Newton aye, Daniel aye, Ryan aye, Clark aye. [SPEAKER CHANGES] 45 having voted in the affirmative and zero in the negative, Committee Substitute to House Bill 754 as amended passes its second reading. Without objection will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Committee Substitute to House Bill 754 as amended on its third reading. All in favor will say aye, opposed no. They ayes have it. Committee Substitute to House Bill 754 as amended passes its third reading. It will be sent to the House for concurrence in the Senate amendment. House Bill 767. The clerk will read. [SPEAKER CHANGES] House Bill 767, Corporal ?? Rainey Brass to Class Act. [SPEAKER CHANGES] Senator Curtis is recognized to explain the bill. [SPEAKER CHANGES] Mr. President this bill allows members of our military to receive credit for training received following active duty making it easier for our military veterans to get a teachers license in this state. I commend the bill to you. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none the question before the Senate is the passage of the Committee Substitute to House Bill 767 as amended on its second reading. All in favor will vote aye, opposed to vote no. Five seconds will to be allowed for the voting. The clerk will record the vote. Graham, Graham aye, Curtis aye. 45 having voted in the affirmative and zero in the negative, Committee Substitute to House Bill 767 passes its second reading. Without objection, it will be read a third time. [SPEAKER CHANGES] North Carolina General Assembly enacts. [SPEAKER CHANGES] Any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate Committee Substitute to House Bill 767 on its third reading. All in favor will say aye, opposed no. They ayes have it. Senate Committee Substitute to House Bill 767 passes its third reading. It will be sent to the House for concurrence in the Senate Committee Substitute. House Bill 783. The clerk will read. [SPEAKER CHANGES] House Bill 783, Pyrotechnical and ?? changes. [SPEAKER CHANGES] Senator Parmon is recognized to explain the bill. [SPEAKER CHANGES] Thank you Mr. President, members. This bill was sought by the North Carolina School of the Arts which would allow the Department of Design to use pyrotechnics by the School of the Arts without having, some of the students are under age 21 and this would just allow the students to use this with the proper supervision. Ask for your support. [SPEAKER CHANGES] Is there any discussion or debate? Senator Pate for what purpose do you rise? [SPEAKER CHANGES] To see if Senator Parmon would answer a question. [SPEAKER CHANGES] Senator Parmon do you yield? [SPEAKER CHANGES] Yes I do. [SPEAKER CHANGES] Senator.

Foreman, I remember a few years back there was an accident on a stage at some sort of a concert where pyrotechnics were used and several people were killed a lot were injured. Do we have proper safe guards to assure our students that this would be handled safely? [SPEAKER CHANGES] Thank you Senator Pate. We do and when we discuss this, this was one of the things that we made sure that there were safe guards in place to protect the public. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of the Senate committee substitute to House seven eighty-three. Senator Berger has an excused absence for the remainder of the day. ?? is the passage of Senate committee substitute House bill seven eighty-three on it's second reading. All in favor vote aye, opposed vote no. Five seconds will be allowed for the voting and the clerk will record the vote. [SPEAKER CHANGES] Bryant, Senator Bryant, aye. Sanderson, aye. Allran, aye. [SPEAKER CHANGES] Fourth-three having voted in the affirmative and one in the negative. Senate committee substitute to House bill seven eighty-three passes it's second reading, without objection will be read a third time. [SPEAKER CHANGES] North Carolina general assembly enacts. [SPEAKER CHANGES] Is there any discussion or debate? Hearing none, the question before the Senate is the passage of the Senate committee substitute to House bill seven eighty-three on it's third reading. All in favor will say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. They ayes have it. Senate committee substitute to House bill seven eighty-three passes it's third reading. It will be sent to the House for concurrence in the Senate committee substitute. Senators we have some concurrence bills up next. We have our. I am sorry Senator. House bill nine eighty-two. The clerk will read. [SPEAKER CHANGES] House bill nine eighty-two, modify medicaid segregation statute. [SPEAKER CHANGES] Senator Goolsby is recognized to explain the bill. [SPEAKER CHANGES] Thank you Mr. President. This bill allows a beneficiary to abut the presumption in a medicaid claim. The court will end up determining the amount of the claim if it's not rebutted then the court will order the beneficiary to pay the presumed amount. It also allows the beneficiary and health and human services to reach agreements. This was worked through with the parties and appreciate your support and try to answer any questions. [SPEAKER CHANGES] Is there any discussion or debate? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Blue, for what purpose do you rise? [SPEAKER CHANGES] Will Senator Goolsby yield for a question? [SPEAKER CHANGES] Senator Goolsby, do you yield? [SPEAKER CHANGES] I will yield and do my best. [SPEAKER CHANGES] Senator Goolsby, and it just occurred to me, this does not effect, what is it, chapter forty-five, lien laws, does it? The one third arrangement to medicaid? [SPEAKER CHANGES] No sir, it does not. In fact, that was one thing that we worked hard to make sure that we protected. You're talking about rule forty-four fifty? [SPEAKER CHANGES] Fourth-four fifty. [SPEAKER CHANGES] Yes sir. I'm very congruous that being a personal injury attorney myself and it does not sir. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the Senate committee substitute to House bill nine eighty-two on it's second reading. All in favor vote aye, opposed vote no. Five seconds will be allowed for the voting. Clerk will record the vote. Forty-four having voted in the affirmative and zero in the negative, Senate committee substitute to House bill nine eighty-two passes it's second reading without objection will be read a third time. [SPEAKER CHANGES] North Carolina general assembly enacts. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, the question before the Senate is the passage of the Senate committee substitute to House bill nine eighty-two on it's third reading. All in favor say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Opposed, no. They ayes have it. Senate committee substitute to House bill nine eighty-two passes it's third reading. It'll be sent to the House for concurrence and the Senate committee substitute. [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Goolsby, for what purpose do you rise? [SPEAKER CHANGES] I have a motion sir. [SPEAKER CHANGES] Senator Goolsby, you have the floor for your motion. [SPEAKER CHANGES] Thank you. Having voted on the prevailing side, I move that the vote by which House bill one sixty-eight was passed on third reading be reconsidered. There appears to be a problem potentially with the motion, I'm sorry, with the amendment that I filed and that the members actually saw on the dashboard. I'd ask it be placed on tomorrow's calendar. [SPEAKER CHANGES] Without objection. Sir Warden. [SPEAKER CHANGES] Pages at this time it is five o'clock and I know many of you are waiting on rides... [end]

So, you can be dismissed at this time. Senators, we are going to bring back house bill 168 for third reading. [Speaker Changes] Mr. Presdent [Speaker Changes] Senator Apodaca for what ?? [Speaker Changes] Object to third reading. [speaker changes] Senator Apodaca objects to a third reading and it will be placed on the calendar. Senators, we are going to move into our concurrence votes now. First one for concurrence is a second reading role call bill and its also a constitutional amendment which requires a 3/5 vote. Senate bill 399. Clerk will read. [Speaker Changes] Senate bill 399 criminal defendant may wave jury trial. [Speaker Changes]Senator Brunsletter is recognized to explain the bill. [Speaker Changes]Thank you. Members of the House made some very minor changes in this. Didn't really change the substance of the bill and ask for you to concur. [Speaker Changes]Senator Brusletter asks that you concur. Is there any discussion or debate? Hearing none, question for the senate is the motion to concur in the House committee substitute to Senate bill 399 on its second reading. All in favor will vote aye opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Gunn-aya. Hise-aya. Clark-aya. Forty-three having voted in the affirmative and zero in the negative. The House Committee substitute senate vote 399, concurrence in the House Committee substitute vote 399 passed the second reading and without objection will be read a third time. [Speaker Changes] North Carolina General ?? [Speaker Changes] Is there any discussion or debate? Hearing none the question to the Senate is the motion to concur in the House Committee substitute to Senate Bill 399 on its third reading. All in favor will vote aye opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Brock-aya. Tillman-aya. [Speaker Changes]Mr. President [Speaker Changes]Senator Brunsletter [Speaker Changes]Mr. President, I believe that was a role call concurrence vote. [Speaker Changes]Senator we can do second and third on the same day for a concurrence but they just both have to be done electronically. So we will start that one over again. Let's recallibrate that vote. The question before the Senate is a motion to concur in the House Committee substitute to Senate Bill 399 on its third reading. All in favor will vote aye opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Brock-aya. Forty-four having voted in the affirmative and zero in the negative. The Senate concurs in the House Committee Substitute to Senate bill 399. It will be enrolled and sent to the governor. We have a handful of other votes for concurrence starting with Senate bill 132. Clerk will read. [Speaker Changes] Senate bill 132 health curriculum, preterm birth. [Speaker Changes} Senator Daniel is recognized. [Speaker Changes} Thank you, Mr. President. Members of the Senate, I would ask you to concur in this. The House made some changes which I think are probably good changes to expand this curriculum to Charter Schools and to make it available through the Department of Nonpublic Instruction. So I would ask for your concurrence. [Speaker Changes] Is there any discussion or debate? Hearing none the question for the Senate is the motion to concur in the House amendment to the committee to substitute to Senate bill 132. All in favor will vote aya opposed will vote no. Five seconds will be allowed for the voting and the clerk will record the vote. Brock-aya. Thirty-two having, thirty-three having voted the affirmative and eleven in the negative the senate concurs in the House amendment to the committee to substitute to Senate bill 132. It will be enrolled and sent to the governor. [Speaker Changes] Mr. President [Speaker Changes] Senator Graham ?? [Speaker Changes} Change my vote from yes to no. [Speaker Changes} Graham changes his vote from yes to no. The final count is thirty-two to 12. Senator Graham if you will turn your microphone off please. Thank you. Senate Bill

OK with. The compromise passed the House 101 to 2, so I ask that you concur. [SPEAKER CHANGES] Senator Brown asks that you concur. Is there any discussion or debate? Hearing none, the question before the Senate is the motion to concur in the House Committee Substitute to Senate Bill 174. All in favor will vote aye, opposed will vote no, 5 seconds will be allowed for the voting and the clerk will record the vote. Pate, aye, Brock, aye. Nesbitt, aye. 44 having voted in the affirmative and 0 in the negative, the Senate concurs in the House Committee Substitute to Senate Bill 174. It will be enrolled and sent to the Governor. Senate Bill 280, the clerk will read. [SPEAKER CHANGES] Senate Bill 280, DCR historic sites fees. [SPEAKER CHANGES] Senator Meredith is recognized. [SPEAKER CHANGES] Thank you, Mr. President, members of the Senate. I would just ask that you concur, please. [SPEAKER CHANGES] Senator Meredith asks that you concur. Is there any discussion or debate? Hearing none the question before the Senate is the motion to concur in the House Committee Substitute to Senate Bill 280. All in favor will vote aye, all opposed will vote no and the clerk will record the vote. Brock, aye, Pate, aye, Parmon, aye. 44 having voted in the affirmative and 0 in the negative the Senate concurs in the House Committee Substitute to Senate Bill 280. It will be enrolled and set to the Governor. Senate Bill 638, the clerk will read. [SPEAKER CHANGES] Senate Bill 638, NC Farm Act of 2013. [SPEAKER CHANGES] Senator Jackson is recognized. [SPEAKER CHANGES] Thank you, Mr. President. Members, the House made a few changes to the bill, but I'm OK with it and would ask for your support in a concurrence vote. [SPEAKER CHANGES] Senator Jackson asks that you concur. Is there any discussion or debate? Hearing none the question before the Senate is the motion to concur in the House Committee Substitute Number 2 to Senate Bill 638. All in favor will vote aye, all opposed will vote no and the clerk will record the vote. Hartsell, aye. 41 having voted in the affirmative and 3 in the negative the Senate concurs in the House Committee Substitute Number 2 to Senate Bill 638. It will be enrolled and set to the Governor. Senate Bill 683, the clerk will read. [SPEAKER CHANGES] Senate Bill 683, Safe Harbor, victims of human trafficking. [SPEAKER CHANGES] Senator Goolsby is recognized. [SPEAKER CHANGES] Thank you, Mr. President. The bill that we sent over came back substantially changed and I would ask that you not concur. [SPEAKER CHANGES] Senator Goolsby asks that you do not concur. Is there any discussion or debate? Hearing none the question before the Senate is the motion to concur in the House Committee Substitute to Senate Bill 683. All in favor will vote aye, all opposed will vote no and the clerk will record the vote. Graham, Graham, aye, Hartsell, Hartsell, no, Pate, aye. [SPEAKER CHANGES] Mr. President, I would like to change my vote to no. [SPEAKER CHANGES] Senator Randleman changes her vote to no. Senator Pate, for what purpose do you rise? [SPEAKER CHANGES] To change my vote to no. [SPEAKER CHANGES] Senator Pate changes his vote to no, Senator Allran changes his vote to no. [SPEAKER CHANGES] Yes, sir, Mr. President. Thank you. [SPEAKER CHANGES] Mr. President, I change my vote to aye. [SPEAKER CHANGES] Senator Parmon changes her vote to aye. Senator Bryant, Senator Bryant, you're aye. [SPEAKER CHANGES] I'll leave my vote. [SPEAKER CHANGES] Senator Bryant leaves her vote aye. Final number, 4 having voted in the affirmative and 40 in the negative the Senate does not concur in the House Committee Substitute to Senate Bill 683 and the House will be so notified. Senate Bill 717, Senator Brown, are you just rising to speak to this or? [SPEAKER CHANGES] I was going to send forth a rule 29 on the next bill. [SPEAKER CHANGES] OK, Senate Bill 717, the clerk will read, Senator you can send forward your excuse. [SPEAKER CHANGES] Senate Bill 717, MV safety inspection, MV licensing law changes. [SPEAKER CHANGES] Senator Rabin is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President. Members, I respectfully ask you to concur. [SPEAKER CHANGES] Senator Rabin asks that you concur. Is there any discussion or debate? Hearing none the question before the Senate is the motion to concur in the House Committee Substitute to Senate Bill 717. All in favor will vote aye, all opposed will vote no 5 seconds will be allowed for the voting and the clerk will record the vote. Hartsell, Hartsell, aye. 42 having voted in the affirmative and 0 in the negative the Senate concurs in the House Committee Substitute to Senate Bill

717, it will be enrolled and sent to the Governor. [SPEAKER CHANGES]. Mr. President? [SPEAKER CHANGES]. Senator Bingham, for what purpose do you rise? [SPEAKER CHANGES]. If I could send up an excuse for not voting. [SPEAKER CHANGES]. For the next bill on the...? [SPEAKER CHANGES]. For the one we just voted on. Thank you. [SPEAKER CHANGES]. Senate Bill 231, the clerk will read. [SPEAKER CHANGES]. Senate Bill 231, modified duties, Advisory Council on Indian Education. [SPEAKER CHANGES]. Senator Davis is recognized to explain the bill. [SPEAKER CHANGES]. Thank you, Mr. President. Just a minor change in the House, I ask that you concur. Thank you. [SPEAKER CHANGES]. Senator Davis asks that you concur. Is there and discussion or debate? Hearing none. The question before the Senate is the motion to concur in the House Committee Substitute to Senate Bill 231. All in favor will vote aye, opposed will vote no. Five seconds will be allowed for voting. The clerk will record the vote. Davis, Apodaca, aye, Hartsell, aye. Newton, aye, Daniel, aye. Woodard, aye, Parmon, aye, Bryant, aye. 44 having voted in the affirmative, and zero in the negative. The Senate concurs on the Conference Report. House Committee Substitute to Senate Bill 231, it will be adopted, and the House will be so notified. Senator Soucek, for what purpose do you rise? [SPEAKER CHANGES]. I'd like to change my vote on House Bill 783 from no to aye. [SPEAKER CHANGES]. Soucek changes his vote from no to aye on 783. Final count, 44-0. Senator Davis, for what purpose do you rise? [SPEAKER CHANGES]. Send forward the Committee Report out of order. [SPEAKER CHANGES]. Senator Davis, you can send forward your Committee Report out of order. [SPEAKER CHANGES]. Thank you, Mr. President. The clerk will read. [SPEAKER CHANGES]. Senator J. Davis of Macon, for the State and Local Government Committee, submits ?? House Bill 1005. Committee Substitute number one. Stanly County Commissioners and Board of Education ?? the Substitute bill number one, ?? to the Senate, Committee Substitute Bill. [SPEAKER CHANGES]. House Bill 1005 sequential referral to education, higher education. Senator Apodaca, for what purpose do you rise? [SPEAKER CHANGES]. Mr. President, an announcement. [SPEAKER CHANGES]. Senator Apodaca has the floor for an announcement. [SPEAKER CHANGES]. Mr. President, I have good news and I have bad news. The good news is, we're not going to do a supplemental calendar, bad news is, we're going to let J-1 meet at 5:30 and then we'll come back into session at 7:00. And finish a couple of items, and then go home until tomorrow morning at 9:00. [SPEAKER CHANGES]. So we will come back into session at 7:00, Senator? [SPEAKER CHANGES]. Yes, sir. [SPEAKER CHANGES]. At 7:00. [SPEAKER CHANGES]. Mr. President? [SPEAKER CHANGES]. Senator Nesbitt, for what purpose do you rise? [SPEAKER CHANGES]. Will the gentleman yield to a question? [SPEAKER CHANGES]. Senator Apodaca, do you yield? [SPEAKER CHANGES]. I do. [SPEAKER CHANGES]. Are we going to get a supplemental calendar or something, so we'll know what bills are on tomorrow? [SPEAKER CHANGES]. Tomorrow, I think, Senator Nesbitt, that's a good point. Mr. President, a motion? [SPEAKER CHANGES]. Senator Apodaca has the floor for a motion. [SPEAKER CHANGES]. Mr. President, everything we have placed on the calendar for tomorrow early, or tonight for the supplemental calendar, I move, be removed from the supplemental calendar, and sent to the calendar for July the 9th. [SPEAKER CHANGES]. Without objection, so ordered. [SPEAKER CHANGES]. Thank you. [SPEAKER CHANGES]. Mr. President? [SPEAKER CHANGES]. Senator Newton, for what purpose do you rise? [SPEAKER CHANGES]. An announcement. [SPEAKER CHANGES]. Senator Newton has the floor for an announcement. [SPEAKER CHANGES]. To make it formal, the J-1 committee will be meeting in its regular room at 5:30. We will take up the bill that was previously noticed earlier on the calendar that was cancelled earlier today, the House Bill 695. [SPEAKER CHANGES]. Senator Pate, for what purpose do you rise? [SPEAKER CHANGES]. To make an announcement of Conferees, Mr. President. [SPEAKER CHANGES]. Senator Pate, you have the floor for your announcement. [SPEAKER CHANGES]. Thank you, Mr. President. Senator Berger appointed the following Conferees on House Bill 122, amend interlocutory fields, family law, Senator Goolsby, Chair, Senator Newton, Senator Barringer, Senator Daniel. Senator Berger also appoints the following Conferees for Senate Bill 200, extend time for forensic

accreditation, Senator Bingham chair, senator Goolsby, senator Newton, senator Canard. Senator Berger also appoints the following CON FREES for House Bill 662 Limited License install back flow assembly. senator Gunn chair, senator Meredith, senator Barringer, senator McLaurin. Thank you mister president. [SPEAKER CHANGES] Thank you senator. Senator Apodaca for what purpose you rise [SPEAKER CHANGES] Mister president, a motion please. [SPEAKER CHANGES] Senator Apodaca has the floor for a motion. [SPEAKER CHANGES] House bill 761, was put on supplemental calender for tonight. Ask that it be removed and referrer to comity on ROLLS. [SPEAKER CHANGES] Objections to... [SPEAKER CHANGES] We also mister president if we recess. Can we recess also to allow any comity reports to be reported in. [SPEAKER CHANGES] Will do that. Any other notices or announcements? We don't have any other notices or announces so. [SPEAKER CHANGES] Mister president. [SPEAKER CHANGES] senator Nesbitt for what purposes you rise? [SPEAKER CHANGES] Thank you, the Democrats will Caucasus immediately after J-1 [SPEAKER CHANGES] Any other notices or announcement. If not the senate will stand on recess. subject to the comity report until 7PM tonight.