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House | March 26, 2015 | Committee Room | Finance committee

Full MP3 Audio File

Go ahead and take our seats, we'll go ahead and get started. Good morning thank you for coming to our finance meeting today I'm pleased to announce our Sergeant at Arms thank you for serving with us this morning, we have Reggie Sills, Marvin Lee, Terry McCraw and Chris McCracken We are also honored to have several pages with us this morning, hope you had a great week, we have Tai Wakelands from Wake counties sponsored by Shelly Willingham, David Glastonbury from Wake County sponsored by Chris Malone, Kenny Luck from Wake sponsored by Darren Jackson and Shawn Cone from Nash county sponsored by Jeff Colins thank you for being here OK we have three bills on the calendar this morning we will start with House Bill 6 auto cycle definition regulations and Representative Tobbit you're invited to come forward and present your bill. Can I have the motion to have all the preparation for us thank you am sorry Good morning! its an exciting time in North Carolina, what you guys are looking at today pretty much just hammers home we're doing in North Carolina as far innovation, expanding the opportunities for entrepreneurial activity and looking as opposed looking throughout every mirror as what the future transportation might bring towards citizens in North Carolina. The reason I say it's exciting is that if you haven't pretty much reviewed or seen what we're talking about today. Imagine yourself today in the automobile that you drive. But now your automobile just happens to have only three wheels instead of four wheels. It's totally enclosed and has the safety apparatuses designed for the vehicle to keep you safe, and now you're getting how many miles per gallon? Quite a few more than you're probably currently getting. It's an entry market, it's an exciting market, my guess is we'll see these in North Carolina, if we're fortunate to move ahead with this bill in a very near future and I'll even step [xx], and say, it may end up being one of the main stays of our future transportation needs as far as the consumer goes. When you're looking for vehicle that has low cost, higher amounts per gallon, extended life and vehicle. My guess is, they'll be selling quite a few. With them Madam Chairman, if there's any questions, I'll lean to your advice. Also we do have a gentleman from the Eleo company here, and at the proper time, perhaps have him available for comments. Thank you do you want us go over the Bill or have that presenter first? I guess it will be probably a benefit of staff want to go with Bill and that will be great. Thank you. Thank you. Recognize that. Good Morning, Gregory with the Research Division, the main thrust of the Bill is to move autocycles from regulatory regime or motorcycle to its own regulatory regime which is more or like automobiles. So on the current law an operator of an autocycle in North Carolina would have to have a helmet and would have to have a driver's license endorsement for to operate at motorcycle, so will be classified as motorcycle. So, the basic structure, the bill is to just go through, quick through some of the dean this statute so that we will classify them as their own thing and autocycle they'll be regulated like an automobile as far as lights and safety equipment, under State law, under Federal law they are still a motorcycle but, the advantage to this would allow the like this one company here, that's making such a big push to market this in  the United States, that operators of these vehicles which is normal drivers and they will not have to wear a helmet. Thank you, do we have a representative from Elio Motors who would like to speak? Yes.

OK, please come forward, Do you have a presentation? This you're giving on the computer? Yes madam Chairman there's handouts there. Okay I think they're in the packet correct? That's on, why say that they're extra handouts in the back. Okay there and I get some extra handouts in the back if anyone is interested and they should be in your pocket, please state your name and company position for the record. Madam Chairman and honourable members of the house finance of house committe, my name is Joel Sholfran, I'm Vice President of Arial Motors government affairs the representative however did a great job of talking about our vehicle I would to give a little background about the vehicle. It's a two passanges, 10 of CD front wheel drive, three wheel, three solder gas clean powered fully enclosed as mentioned technically considered a motor cycle by federal standards. The vehicle will retail for an expected $6800 and yet at an expected 84 miles a gallon it's been engineered to the highest available standards it has three air bags it has a high stringed rope cage ABS stability control traction control plus other safety enhancement equipment that you normally find an animal bill. Is truly across between an animal being on a motorcycle. Currently looking at your hand out there and I got, I got two different handouts so one I brought was a little different but anyway P4 prototype. If you notice there, we have over 41, 000 pre-sold reservations which is amazing. It shows you that we won't be into production until next year and the people have already put in mostly nonrefundable deposits on this vehicle the next fate shows you that the interior of the vehicles basically a hafer a car and has a stereering wheel has control just like in North the nodes are out of control, of course the problem that we have is the fact that in North Carolina North Carolina is one of four states now they require helmets for everyone in the vehicle we have some states that are age specific and age six would insert auto cycle in definition and would exempt from autocycles from helmets and motorcycle endorsements the helmet issue we will look at that first, wearing a helmet in a completely enclosed vehicle makes it difficult to hear emergency vehicles sirens, wearing a helmet reduces visions and can break blind spots. Our vehicles as well as others on the road today with airbags are not designed for helmet use. Airbag deployment requires instead of calibrations adding a three to four pound helmet and it's 30% to 40% more weight to the head, no automobile manufacture considers how must one calibrating airbag deployment. The extra weight of a helmet will actually lower our safety rating because of neck elongation one of the measurements considered and that is escalating. The use of a helmet with safety three point safety straight puts the operator and passenger on a dangerous situation. The three points restraints hold the body against the seat, but the head with the extra weight of the helmet will be pulled vitally forward in a frontal coalition to avoid the significant endless injuries results from the actions. Race car drivers are now using the hands device. They drive a lot faster than we do. However, NASCAR and safety engineers will tell you that you can get killed just as quickly at 30 miles/hour if stop quickly enough under the scenario. So, the helmets are actually a very dangerous thing to require. The next page here if you want to the helmet map shows you exactly where we at in the nation with helmet requirements I got a call yesterday that Ohio is now done, so we can cross that off two days ago New Mexico was finished and so things are moving along quite nicely we're almost done with the helmet portion of the legislation these registration would take care of motorcycle endorsement is another issue we are way to ride, and you can see that in the hand of how we're way too wide, we're way too long to pass your motorcycle skills test and there isn't anything else inthe skills test that would be relevant to our vehicle anyway,.

Thank you Mr. Sachun if you can conclude in one minute and we can start taking questions? So obviously if you can't pass the test there's no reason and no benefit no protection of the public require a motorcycle test for this type of vehicle, as handles lke an automobile the drivers and automobiles, it has automotor controls. Thank you very much and with Madam Chairman's lead by welam answering the questions as chair. Thank you very much. Members do we have any questions about this bill? Madam chair Share Promotions Department time. Thank you. I need any other questions, yes [xx] Yes, Carl what is this two cycle four cycle and what's of the weight of the vehicle? Vehicle weighs 1200 and 29 pounds, is a four cycle engine, three cylinder, it's a regular automotive engine, power. Fuel injection? Is a sequential no port fuel injection. Representative Heisting sir. No I'll try to be brief. NHTSA, National Highway Traffic safety Administration do you also work at the fedel level? Yes, we have curently we have legistartion that mirrors regstration represenattorial legistartion on the fedel level. So that would be already working on that and now senatorVedor has senate bill 685. Alright. So ther is a supreme call issue did you have to deal with at the fedel level because you are [xx] at the state level which do, aren't you in proper marrying situation? There is an supremacy cause issue you can do what ever you want to in North Carolina. However, the reason we introduced it on the federal level is because these vehicles are goingto be on the road and they need consistent safty standards. You can imagine what it would be like if you try to register in another state and you don't get the definition. [xx] So if there isn't a supremacy clause issue then what do you you do with the fact that the federal government classifies it as a motorcycle. The states have the ability as long as they accept the certification of motorcycle to register the vehicle as autocycle. Some are using motor vehicle and autocycle as a vehicles, some states are saying autocycle is a motorcycle. OK. Representative Collins.   Thank you Madam Chair and I'm on the transportation committee and this was for it's here in finance and looking at the fiscal note there's not a really big hair to the state for this, it could be a revenue generator which was hard to, for the staff to estimate. So I'm sorry that Representative Collins beat you to the question that one, want to mention that one question if I may of the bill's sponsor yes. I have. Representative Tobert, we ran out of time on transportation but I've been dying to ask you this question, will you tape into one of these [xx]. Representative Connie, probably like you the only, the closest that I've been to the vehicles would have been what I've been able to see on the website.  Any other questions? Representative [xx] excuse me Representative James. Thank you, this is a financial question but can you explain to Representative Tobert why is the cost we got a 90 million dollar cost and then going to 9 million, what is that for?  Madam chairman?  You're recognized. I could but there's someone here of much higher somebody can speak on that, commissioner Thomas from department of motor vehicle, if Madam Jeremy would like to appear and address the physical impact county representative from DMB come forward, and state your name and department for our records please. Thank you. My name is Kelly Thomas, commercial motor vehicles and I'm not looking at the same physical node you are, the IT cost for this initiative which I very much support, the definition autocycle in the classification of vehicles is exactly what brings us into current operations in the state of North Carolina. So I very much look forward autocycles, I also look forward to the next classfication of vehicles, the autonomous vehicle that we'll see here in recent and very soon history. But anyway back to the IT question, all estimates

for IT bill requirement is 109, 000 to put this autocycle definition into our stars database. So I don't have whatever figure you're looking at it  9 million, $109 000 for IT cost. Okay, got that. Representative Warren did you have a question. Yes I have curious [xx] Seat two attendant and the reason for that is that you are able to reduce the wind pressure in front of vehicle which has helps get rid of fuel tanks.  Okay representative Collins you're recognized for a motion.  I'd like to make a motion for  a save report for the current substitute passed bill six and favorable to the regional.  Members you have heard the motion, and all in favor of the favor report, signify by saying I aye, opposed. House bill six passes committee will be sent to the floor, thank you joining, thank you representative Torbes. Thank you madam Madam chairman and members of the committee. We're now going to hear hospital 229, modify religious property exemption, by Represantative Mc Mill and other sponsors, please come forward. Can I have a motion to have The PCS properly before us? Representative Corony and second, Representative Wail, thank you. Thank you, thank the committee and chairman for allowing us to bring House Bill 229 before you. This bill basically does two things, it attempt to close loop hole in current law and also make a law consistent across the whole state. If you go all the way the first page is current law. If you go all the way to second page you'll see a section G that subtract those are basically just technical correction. The major the change in this law is in section three, excuse me subsection three at the very end and basically let me explain to you what this does. For years in North Carolina religious property that it is occupied for religious purposes has been tax exempt. Recently christian labeling interpretation by a local tax departments they have taken buildings they were under construction that were not completed by January the 1st is not being occupied. Giving example what happened around North county we had a church that was building a new sanctuary right beside the old sanctuary on property they announce for years they were not through it was a 900 almost 1, 000 seat sanctuary they were not through with construction on January the 1st. Therefor they technically had not occupied it according to a level interpretation of law. so theoretically, and the tax department said we're going to tax [xx], we're not going to tax the land on it's own because it's been taxed for years obviously since was not finished construction, they could not get an occupancy permit to occupy it for any purposes, so they were in a conic h22 situation well luckily the appealed that ruling, and the board of equalization and review in in landoff county said no, no, no we don't believe that is purpose of the [xx] statute that is accepting religious property. However in other counties, I understand for South County and other counties the Board of Equalization Review has gone against the churches and said that the property they had to pay their taxes. So I personally, when I heard about this situation I did believe that was in the intent of the original statute that exempted property, I saw it was a loop hole I saw it it was been interpreted different in different counties and in the state and I felt like it was something we need to do as legistrative to cross this loop hole and Mike Lawn consistent across the entire state. Directed to the physical note of the bag issues no physical impact to the state and it shows no impact to the counties. And my core sponsor Gregon [xx] [xx] this morning you know I got to look out for the brother and the sisters we just get through with the building and I can understand the impact we've been to taxed it's a strange loophole therefore it's not in use but both people notice it's going

to be used for religious purpose so I want to thank representative Mike Neal for that so I would join with him and asked if were do this to help our church community in those churches who are in the process of building buildings that time period of time thank you. Madam chair. Thank you are there questions from the committee? Madam chair, I have representative Jones present and then center. Thank you madam for a motion at the appropriate time. Thank you representative Sether. I was going to make a motion I have passed. Okay any other question? Representative Charles recognized. Thank you, I propose a favorable report for the proposed committee being a substitute for House Appeal 229 and favorable for the original. Members you've heard the motion all in favor signify by saying aye, aye any oppose no thank you very much committee substitute house bill 229 passes. Next on our agenda we have house bill 265 in the camper asset sale and representative Collins I have you came forward to represent the bill. Since we've fully debated this in public utilities I feel comfortable to maintain as Chair I can't present the Bill but if that changes I'll have my colleague step up. Thank you, and Representative Stam will also be here. He was our first to speak on this Bill yesterday but he's involved in another meeting. So I'm going to if he was needed I tell him I felt certainly would be. We debated this bill tharrally in public utility any view folks on public utilities? Okay so you heard it already. So we are not going to debate it. This is the finance committee so this should we should be listed in the finance this year. Let me say this is the bill that I have been waiting to run through this hospital five years and senator Newton the same thing in the senate, we had the study committee four years ago that we begged and pleaded for, got and were awarded a nine co-chair [xx] where this as one of the main fundings of the study committee. The folks at Duke and Campbell, I'll be remiss if I did not I'd thank them publicly they worked harder on this than anybody else. So to make this day come true and it looks like finally where I live and some of the Representative Piers lives in some of the revisit areas that you represent, those 30% or 40% premiums that we're paying on electricity are finally going to come down and not only will our less fortunate people financially be able to perhaps afford their electricity but also we'll be able to finally recruit some industrious users at least 32 municipalities. As far as the fiscal piece goes let me just say this there is not a fiscal note if you'll notice on this. This is one of those nirvana moments where we've come up with a market driven solution to something that benefits everybody. It benefits the decampler[sp?] ratepayers, it benefits the other Duke ratepayers because through this deal due progress is age, fuel process go down by an estimated 70 million dollars a year, there's no losers in this and we're not asking for a dime of the state money This is not a bale out solution this is a market driven solution. Also, the other thing is that it does not affect the state's bonding capacity or rating whatsoever because the [xx] is not [xx] of the state I think those are the financial questions to ask. I'll stop there and let representative Peter Slay say whatever he wants to say. Not whatever I want to say. Whatever you want to say. But I commit to thank you a lot. I just had a Representative Ken Goodman and I, we represent some of the same folks down home. I want to thank Representative Hager because one of my constituents it just really worked on him for this deal also, but we're just glad to be here this morning in the many capacities that I serve but these are just some of the newspaper articles from local papers that talked about the win-win situation for all of our citizens, and how lots of our folks who benefit [xx] senior citizens and others who sometimes these bills are really burdensome they have to choose sometimes between rent, and other things. So its just that I don't want to get into all that. But its a great bill and I'm glad to be in a great day as many have said in North Carolina, when this Bill is finally signed and becomes law, it will be truly a great day. So thank you all for allowing me to share with you this morning thank you. I had a few questions, representative Jones? [xx] Thank you. Representative Moore I was going to do the same but let me just say that I'm very happy that this bill has come about. I have relatives who live in rural areas. They are not blessed to live where I live, and this has been a concern for them in the past, so I look forward to this passage and give some relief to those citizens who have these issues for a year hopefully. Thank you. Representative Goodman Thank you Madam Chair. Just to comment to Rep. Moore. If he only knew what it was like to live in God's country where we are he would not have made that comment I cannot read that.

[xx] OK I'm sorry. Are there any other questions? OK, Representative Jones you're recognized for your motion. Thank you Madam Chair. I do want to commend the sponsors for this excellent bill and my motion is for a favorable report for House Bill 265. OK, diverse[sp?] second, seconded by Representative Moore. All in favor?  Aye. Any opposed? Thank you Members, this meeting is adjourned. Thank you Madam Chair, thank you members of the committee. when you make a motion put it out of the net