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House | May 28, 2013 | Chamber | Finance

Full MP3 Audio File

There is a fiscal note on this bill and being distributed at this time. Representative Folgum, you have the floor to explain the bill sir. [Speaker Changes] Thank you Mr. Chairman. This is a PCS for a HHS bill that was passed without any problem that is update to the board of physical therapy examiners. The concept of this is to go and update the protection of witnesses before the board that have to appear in the event of an investigation, and also outlines the procedures for hearings. There are six parts. First part is largely unchanged. Second part consists of handling the application violations, privacy matters and the usual routine functions of a board such as continuing education. And the third page of this particular section involves protecting the rights of the subpoenaed persons and impaired practitioners. There’s a routine board matters involving medical practitioners and this is an update to the existing language. Section three involves criminal history checks where the applicants are required to supply fingerprints and other identifying materials so the board can ask the Department of Justice and the SBI and FBI to conduct a thorough background check before these applicants are approved. The remainder of the third section involves grounds for license denial. Fourth section involving foreign trained therapists, and five out of state therapists who are here for a temporary period such as sports teams and performing arts theaters. And the last part involves a more detailed explanation for the Department of Justice routine for handling fingerprint material and identifying that material to the board and keeping that confidential. So I recommend this PCS substitute to you. The fiscal impact as far as I can see involves costs mainly to the applicant for the application as well as for whatever it costs the department of justice to run the criminal background check. [Speaker Changes] Thank you Representative. Representative Storms, please state your purpose [Speaker Changes] I want to ask a question. I guess I’ll direct it to Dr. Folgum or staff, either one [Speaker Changes] The gentleman is recognized [Speaker Changes] Typically what does the background check cost? [Speaker Changes] Thirty eight dollar fee is what we have in the fiscal note from the department of justice, and this would involve the actual mechanics of doing the check. They’re not allowed to charge excessive amounts. But 38 dollars is what we have the fiscal note. [Speaker Changes] And I’ve always wondered, when they do a background check and it says criminal history background check, do they also pull your driving record. Is that a part of the background check. [Speaker Changes] It should be. I can’t imagine why it wouldn’t be. We’re looking for all violations, criminal or civil. [Speaker Changes] OK [Speaker Changes] There’s some representatives of the board here as well if someone likes to speak to that. [Speaker Changes] Representative Holly, please state your purpose [Speaker Changes] Thank you Mr. Chair. I have a question. When you say confidential investigation then the physical therapist is unaware that they are being investigated? [Speaker Changes] Representative Holly, this would be confidential to the parties involved. So the applicant would have to apply for the ability to be licensed by the board. In most cases we’re talking about investigations conducted in the case of violations of the rules of the board. But in all cases the applicant is total aware. The board is required to keep the matters confidential. There are some public records laws that do apply however [Speaker Changes] Follow up [Speaker Changes] The lady’s recognized [Speaker Changes] OK. So what you’re saying is the applicant knows when they apply that they will be investigated. But in instances of alcohol and mental health problems and things that you’re going into, are they aware that that will be also investigated, not just a criminal record? [Speaker Changes] Mr. Chairman, Representative Holly. I think this alcohol and drug use aspect applies to the applicant seeking treatment.

Through the board, through the entire practitioner’s mechanisms that are available for professionals. But it would not be part of the criminal background check. [SPEAKER CHANGES] Ladies and gentlemen, not seeing any other. The Chair apologizes. Representative Hager. [SPEAKER CHANGES] Sorry Mr. Chairman. Ask the bill sponsor a question, please? [SPEAKER CHANGES] The gentleman is recognized. [SPEAKER CHANGES] Dr. Fulghum, I apologize. I’m just scanning the bill analysis. Is this certification already in place? [SPEAKER CHANGES] Yes it is, Representative Hager. [SPEAKER CHANGES] Thank you sir. [SPEAKER CHANGES] Representative Jordan, your purpose please? [SPEAKER CHANGES] Ask staff a question. [SPEAKER CHANGES] The gentleman may propose his inquiry. [SPEAKER CHANGES] Thank you Mr. Chairman. I’d like to ask staff, as far as page 2, section 23 about the confidential investigations, is this common for boards in the state to have the records be privileged and not subject to discovery, subpoena or other means? [SPEAKER CHANGES] ?? to that. I do know that many other boards conduct background checks but as far as the confidentiality of the information, the way this bill is structured, that it’s not confidential between the board and the applicant. But it’s confidential to outsiders, so they wouldn’t be able to go out there and do a public records request and then get that applicant’s records that were compiled by the law enforcement. But I don’t know if you can do public records requests on other boards and actually get that information. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] The gentleman is recognized. [SPEAKER CHANGES] Thank you. I appreciate that. Let me go further though. This is not just public records requests, this is subject, not subject to discovery, subpoena, or other means of legal compulsion. That sounds pretty strong. Is that done in other cases? [SPEAKER CHANGES] I don’t know how that compares to what other licensing boards do. Of course the information, I guess it’s just the source. The information would still be available to law enforcement or to other people that tried to compile it. So it, I guess the question would be you potentially could get that information if you were a law enforcement agent, just that you can get it from the law enforcement agencies. If you weren’t law enforcement and you wanted to compile that information about an individual to the extent that it’s public, and you put forth the effort, then you could compile it yourself. So it’s really only preventing people from taking a shortcut towards the information that’s been, the work done by law enforcement agency. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Representative Jordan, if you don’t mind, if you could hold only for one moment. We have a representative here from the License and Board, who I think would like to speak to this bill. And he may, he indicated he might be able to address your concern. So with that, the Chair is going to invite him to address the committee. If you will please, sir. State your name and who you’re representing and then you have the floor. [SPEAKER CHANGES] My name is, my name is William Potter. I represent the North Carolina Physical Therapy Association. Ben Massey, the executive director of the board and Skip Roy, a representative of the association are also here. To answer the first question, whether or not this language is similar to other boards, it is almost identical to the medical board and we worked extensively with representatives of the medical association to make sure that it is parallel. The reason that this language is in the statute for the medical board and many other boards, and is added to this board, is the peer review process. And a peer review is a situation where if a person has some concerns, there’s a peer review examination and it is kept confidential unless and until it gets to the level of a formal disciplinary case or unless a court involved in the process, goes through the process. It’s not subject to a subpoena while the board is looking at it, while it’s under investigation. But once it becomes part of a formal action, it becomes part of the public record. [SPEAKER CHANGES] Representative Jordan. [SPEAKER CHANGES] I wanted to inquire of the speaker from the Physical Therapy Association? You mentioned that it would become public record once it had been entered by the board into a decision or a hearing, and that’s what the language in here says. But what if it doesn’t not reach the point of being a hearing or

?? of charge or… other process, I guess, from the board. [SPEAKER CHANGES] Again, if the process is investigated by the board and is determined to be unfounded, then unless it reaches the level of a formal decision, it remains confidential. There is a process where the board itself could be defended in an action and the Justice Department or some other department could go through that, but again, the problem is in a peer review process, the system for many years has wanted to assure the medical providers that their testimony in this should be completely candid so that the review of the medical process is there and that it won’t immediately hit the newspapers and won’t develop into arguments among different members of the profession, and again, it is in the Medical Practice Act, it is in, I would say, 70 or 80% of the Licensing Board’s statutes, and it’s not something that has been criticized in general. [SPEAKER CHANGES] Mr. Chairman, I might add that this bill is supported by the North Carolina Medical Society and the North Carolina Orthopedic Association who work closely with these practitioners in the peer review of processes. One thing that I’m very familiar with having been on several committees in hospitals and various other organizations is the chilling process, that you can’t talk about this candidly and can’t get raw data, allegations, accusations, discussion in an open manner in a confidential practice meeting. You’ll never hear it, so that’s the purpose of this type of language. [SPEAKER CHANGES] Representative Jordan. [SPEAKER CHANGES] So final inquiry to staff. Above and beyond what you’ve already answered, the language here says these records are privileged and not subject to discovery, subpoena or other means of legal compulsion. Is that as strong as it sounds to me, that there is no legal process available to gather this information unless it’s gone to a board decision? [SPEAKER CHANGES] Yes, I think you’re right that there would be secrecy inside that board, and so unless it comes out through a formal complaint or you go and gather the information without going to the board, that that information in there would stay locked in. [SPEAKER CHANGES] Representative Brawley of Iredell. [SPEAKER CHANGES] To make a motion at the appropriate time. [SPEAKER CHANGES] The Chair will return to the gentleman. Representative Collins. [SPEAKER CHANGES] Inquiry of the bill sponsor. [SPEAKER CHANGES] The gentleman may propose his inquiry. [SPEAKER CHANGES] Dr. Fulghum, unfortunately most of the bills that look like this that come to us from the medical profession usually represent a turf war that we’re trying to solve. This doesn’t appear to me on first blush to be that, but do you know of… is this bill controversial at all, or are there those that oppose this bill that you know of? [SPEAKER CHANGES] No sir. [SPEAKER CHANGES] Are there further inquiries from the committee? If not, Representative Brawley of Iredell, you’re recognized for a motion. [SPEAKER CHANGES] Thank you, Mr. Chairman. My sister is a physical therapist at Lake Norman Regional Hospital and she said I can make a motion we give this bill a favorable report. [SPEAKER CHANGES] Mr. Chairman? [SPEAKER CHANGES] Representative Luebke, please state your purpose. [SPEAKER CHANGES] I apologize for… and I just changed this earlier, but when… Representative Fulghum, when you said that you hadn’t heard of any opposition, does that mean there’s no physical therapist who you’ve heard of who’s in any way expressed opposition? We get a lot of emails on a lot of thing. I don’t remember one on this, but are you quite sure that even rank and file physical therapists are okay with these changes? [SPEAKER CHANGES] They have not contacted me about it and I’ve had no opposition from anybody that I’ve heard from. [SPEAKER CHANGES] Thank you, sir. [SPEAKER CHANGES] Thank you, Representative. Is there further discussion or debate on the motion from Representative Brawley of Iredell? Seeing none, the question before the committee is the motion by the gentleman from Iredell to give House Bill 828 a favorable report. Those who favor the motion will signify by saying aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] Those who oppose the motion will signify by saying no. In the opinion of the Chair, the ayes have it and the motion carries. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Ladies and gentlemen, as was announced prior, we will now move to House Bill 616 – House Bill 616 – and the Chair will recognize Representative Szoka to present House bill 616. [SPEAKER CHANGES] Thank you Mr. Chair, members of the committee. I’ll start with the bottom line up front: There is no opposition to this bill from

Huff know why this plan that's a good place for motion they could send a category of Los recall transitional answer that place lane, and the mortgage loan origination commander 2872 categories salon officer can originate from Lycos from a composite or institution this like to buy the tape of the sale sewer she wants others are nine because tourists institutions which analyzes march and losses of which I am one five to become licensed a mastery of 224 hours of five classes you have to pass a state and Federal tests from birthplace of the masters, after they and the national Moorish licensing system on the top deposits or institution near the register and then and now lives with his (SPEAKER CHANGES) M.S. take that as soon as a class is a way to sell for chairman of the bus to raise tuition you have to be licensed which means you take the classes and take the test and what this one does not take place in a category loss earned his losses and a deposit or institution is not taken the class is a testing if a life lessons for transition #the second award tonight at 540 station for 220 days only take the classes and effective system and also say which indicates the commissioner bank so $125 , Marshall losses like myself that they had five nearly $225 sold a new category of Los error disclaimer Felix’s last month from a select committee has passed banking and assess their lives on an opposition says that one out then check your running shoes and section two of the bill itself the warning disabled that peculiar two and that was worked and the very heart of this wedding site for the layers because right now where attacking the passes bill in anticipation of the S.F. the Dade allowing this to happen in the Federal level-headed out with mortar shell for tens to their complicated and now this is an instance of a foreign aid bill as silicon that this is a set DB publishes the Israel and the study's lead on this summer that they can assign an opposition to that of the Federal level that your friend is no ma'am we would put more responses to this attention our state, we have quit some exceptionally to put this in a slump were running the spill now and this level in section two businesses that are 722722 while we have no acronym policy which explained by the judge said that the process as nothing more to say that dollar active in the back and susceptible as a consumer financial protection bureau , ladies and gentlemen of the time from when he is prepared to offer a commodity in motion and some are their inquiries from riverside lost that feature corporation's bank and by just a couple of questions is the chairman of the Fuhrman, two questions this question this post a reason why the effective date is July 1 rather than October 1 is that this as something to two with five Federal all this, we let com let something like that go into effect July 1 to last as a reason for hope that they should? (SPEAKER CHANGES) Soon rusnak this alias it was recommended to put the July 1 that suspicion of them Federal Agency taken action and this is the second question that may have misunderstood what he said he said one of the reasons why you're telling this is so that somebody has time to take the classes in qualifying something that'll get that back to transitional mortgage loan originator that left the post seven after that and tomatoes, like finals rodeo not become a luscious loan officer, I may have said GM FA fell nine Van Exel , to spend five questions that give them permission to do this and can turn even the game and fell entered in the missing some Allied but as your first and second question their wealth because, commissions for a person doing this is a database two years of experience and any other state court in the pasta for institution so a workflow bank the money had training from the bank and 1/2 the best of Federal guidelines for their training so it is anticipated that they wouldn't move from a deposit or 29 the quest for insufficient that the requisite knowledge to be able to take a ??.......

?? and pass the test. [SPEAKER CHANGES] Thank you, Mr. Chairman. I just...there’s just a little concern if that person is able to do something that they’re really not skilled to do and whether the consumer is protected. Nobody else cares. [SPEAKER CHANGES] No, but...I probably didn’t explain good enough. If, for example, if someone works at BBNT, a depository institution, as a mortgage loan officer and they’ve been for two years, they’ve in fact been originating loans. They’ve had to follow all the state and federal laws, rules and guidelines so they know what they’re doing and they’ve just been overseen by a different body. For them to come into the non-depository institution is the North Carolina Commissioner Banks office which oversees them and to be licensed as a mortgage loan officer according to federal guidelines in the national mortgage licensing system, they have to take the required class and they have to take the required test. My personal opinion is I would not anticipate anyone coming from that environment to actually flunk. [SPEAKER CHANGES] Representative Ross. [SPEAKER CHANGES] Just a final question. Is somebody from the Commissioner of Banks here or has the Commissioner of Banks said this is a good idea. Have we heard anything? [SPEAKER CHANGES] They have no problem with this whatsoever. I don’t see anybody here from the Commissioner’s office. They were at the banking committee and they had no problem then. [SPEAKER CHANGES] The chair saw Representative Brawley of Mecklenburg. Please state your purpose. [SPEAKER CHANGES] Thank you, Mr. Chair. I wonder if the bill’s sponsor would yield for a couple of questions. [SPEAKER CHANGES] Absolutely. [SPEAKER CHANGES] As I understand this, what we are dealing is taking people that had been mortgage originators and transitioning them into a non-depository situation where, in a lot of professions, we might just get...do a reciprocity and license them. If I understand what you’re doing is rather than granting a license through reciprocity, you are giving a temporary license while requiring them to take the requisite North Carolina training and pass all the exams to prove they are as competent as we are assuming they are based on their prior experience or license. Am I hearing this correct? [SPEAKER CHANGES] That is essentially correct and it’s not just to meet North Carolina law, it’s also to meet federal law because the distinction that the National Mortgage Licensing System at the federal level is that you have to take the classes and you have to pass the test to become a licensed loan officer. [SPEAKER CHANGES] If I may follow up. [SPEAKER CHANGES] You may sir. [SPEAKER CHANGES] We’ve taken someone over, we’ve given them the transitional reciprocity, they have to take the classes, they have to take the test, if they fail the test at the expiration of their license, they’re just out of luck until they can take the test and pass it. [SPEAKER CHANGES] That’s correct. [SPEAKER CHANGES] They’re not longer allowed to function so in fact, what we’re doing instead of creating a loophole for the incompetent to get into the profession, we are making sure that people that transition over are competent by making them prove it. [SPEAKER CHANGES] I think that’s a very fair assessment, yes sir. [SPEAKER CHANGES] Representative Hager, please state your purpose. [SPEAKER CHANGES] Thank you, Mr. Chairman. A question for the bill’s sponsor. [SPEAKER CHANGES] The gentleman is recognized. [SPEAKER CHANGES] There’s a line in the bill’s summary and if you could explain it to me I would appreciate it because I’m not sure what it means. The bill would also allow license be issued to a person who is registered, but not licensed in this state or another state. Can you explain what that means? [SPEAKER CHANGES] Yes, I can. Registered, again, would be coming from the depository institution. Let’s say they work for BBNT in Florida, a state other than here. They move from Florida to North Carolina, they want to go...it’s the same thing, it just covers someone moving from another state. [SPEAKER CHANGES] Follow up, Mr. Chair. [SPEAKER CHANGES] The gentleman is recognized. [SPEAKER CHANGES] But they would not have been licensed as a loan originator in this state or another state, right? [SPEAKER CHANGES] That’s correct. Again, its the distinction between registered which is a federal distinction in the National Mortgage Licensing System working for a depository institution like a bank and license loan officer in a non-depository institution like the company I work for, it’s a privately owned firm we originate loans and then we sell them. We’re not governed...we’re governed by the same federal and state rules in regards to mortgage ??, but we have different oversight bodies. [SPEAKER CHANGES] Follow up and last, Mr. Chairman. [SPEAKER CHANGES] Yes sir. [SPEAKER CHANGES] I guess, and hope ?? follow up, Chair, but I do agree a little bit with her on this issue that are we allowing...why don’t we require folks to be...

License first and then practice rather than democrats is free; Marietta protecting the public in this case has a role says so we'll all know the income from 120 days seven and the also miss cover the Rincon valley and that the requirements such and you can't just started the bank is two weeks ago and then decide to become a transitional on all three have to have two years of experience in that because forest station and the glamorization business and a bag of celibacy stadium 2374 Wilshire whenever the bank is that she made a LAN the exact same way that I do with the fact that all the same Federal laws the same state laws so to have two years of expense that applies for insufficient the assumption this issue already have all of the knowledge that she may soar nearly a minute, so the Federal law by making and take the classes and taking the Federal mandate a segmented sense of some of which are noncallable more businesses and possible that that uses we had a line in there about moving from another state and that they could have not been copying are or aren't many issues and other states and a sawmill button issue a transitional licensee ritually due to terminate almost are going to make sense that that this access to certain question in this state, lined builder somewhere that,(SPEAKER CHANGES) while say OM that say that was another bill five of those as a fact which is selling center as pastels and that the forgettable number 9000 update to use a fact which is some of the original member at home just as this some more to slice the same age as a commissioner banks to 42 left in the National Mortgage licensing system which are all lancers should be a registered for license I have to have the error, have today and so if there's any state reported actions in the rain fell apart in action suit, one of the National Mortgage licensing system the commission banks in fact , (SPEAKER CHANGES) has civility selected that muse said, to deny licensing North Carolina the chair believes on this point that some stunning represent two columns for the delay and services phone booth taking a share this quickly Edstrom make a quick no denies to the structure at the time, all that, eight, the deposit and not opposed away from the nomination letter would be looking for two years prior to making this transition in the DB tested 855 and the magician's with a deposit or a pack of the times and I Pass the test along, for the deposit or a lucky other sizes same transition… That, and that's not the schema banking five about it and say so that's correct bad day for deposit or a dissertation said that for ways to train their loan officers which is mandated by Federal law that are overseeing nine multiple Federal agencies so that they have trained from the profile of a plea from seven to pay court to face a nine B application could e-mail application the survey actually assume that is safe and swam back for sale of more than 954-8906 issue regime in allowed to send those standalone application essentially can live in the same good faith estimate of a port is exactly the same as wide as a two year requirement for its bearings for someone to apply for this transitional one, stands representative, just pass rushers torture purpose to seven, Czech national program is in part of a well, located a worst case scenario from comes from bad to the language of page one and in section 4-5 14th to 19 of their own, 17 if you don't pass the test after 20 vision of seven victory application renewal or an extension so say the two have been working in the bank and you have, for this some transitional mortgage loan originator of the good work for the private sector , for whatever reason you follow the test and your 120 days set up and so you can retake the test now for your losses to the touch of a car crash that had been sent so-action film out the list is too rigid ones that person has said several options that client side because second flight back to deposit or institution where they mail at the register for lake and that we take the designation retake the test of ??....

Every time it has to be 30 days between each time you take the test and again it was amended by federal law not by state law but after the 120 days if you have not passed the test then you are out of the industry. Well you are out of yes essentially all though they could go back to depositories institution of they could find employment there. They would only keep you out of nine depository’s institutions and operating as a license loan officer because it is illegal to originate loans without being properly licensed or registered. [SPEAKER CHANGES] Representative Warren. [SPEAKER CHANGES] Yes I had two questions if I could. First of all I would like to know why is this necessary and second part is if someone fails the test after 120 days. Is it irrespective of humorous question does that subject the arrangement say during the 120 day period to any type of levitation by the people bolding those loans sort of like the prosecutors found guilty of something and all these cases are thrown up prior to that. Is running liability associate with that? [SPEAKER CHANGES] Credit alliance with second part of the question first and the answer to that is there would be none because there will be properly wisent as a transitional loan officer so there is no come back if you will be because they are operating under a license so that it protects them it protects the company they are operating for and it also protects the consumer. Answer the first path of your question why is this necessary right now there is a barrier of you will to employees loan officers who at the depositories institution want to go work for non-depositories institutions. In the real world if somebody works today in the bank and they want to go work at one of these other institutions so I think it's a good idea. The barrier is as soon as they start these classes and test their employment fact find out about that in fact have been some instances where there employment has been placed in japery should we say. So that's within the state. The other thing and the reason for it is when people move here from out of the state and it might restricting crumbling county fort Bragg there are number of military families who come from many different places in the country so it's not preventative if especially a military member comes into North Carolina or just moves here for main or Massachusetts or North Dakota or wherever and they had a job as a loan officer and they know what they are doing and they want to be a loan officer here allows them to get their feet on the ground or get employed as soon as they get here rather than taking this time where might put them under great financial strength. [SPEAKER CHANGES] Are there further inquiries for the bill sponsor? Saying none to gentleman from Lee representative Stone is recognized for motion. [SPEAKER CHANGES] Thank you Mr. Chair I would like to make a favor report for house bill 616. [SPEAKER CHANGES] Representative Stone has moved the house bill 616 being given a favor of report. Is there further discussion or debate on motion? Saying nine the question before the committee is the motion by Representative Stone to give house bill 616 the favor report. Those who favor the motion will sign defy by saying aye those who oppose will sign defy by saying no. In the opinion of the chair ayes have and the Mouton carries. [SPEAKER CHANGES] Thank you Mr. Chair. [SPEAKER CHANGES] Thank you representative Zocor House bill 371. To present house bill 371 representative Bryan glad you are here Sir you have the floor. [SPEAKER CHANGES] Thank you Mr. Chairman members of the committee after watching my seat I thought I was gonna be appear in down pretty quickly and may be that won't be the case. House bill 371 in front of you is a bill requested by the ?? examiners and sponsored with representative ?? And I have sponsored which authorizes as a certification of clinical assistance. Again it comes at the board request the standards set forth covered safety indications and counter indications for health care as well as protocol and educational standards for these clinical assistance really a health and safety type measure its not mend to further create some big regulation health care industry, many folks in the industry requesting these changes a number of other States have adopted them at the federal level, also at the at their national chiropractic level.

The face of us some and the fact that helps with five shares companies, like 2C5 B singers and placed 9 to 47 from SA that that's a good action, validated SC from the Spanish applicants and does not exceed $50.00 MM, think at this summit here from fat from the more rationally (SPEAKER CHANGES) I think they're estimating the CFC just about $20.00 a bushel of triad mechanics and not to exceed number from bad to take any questions percent of college Hussein should focus on questions of bill sponsored the gentleman proposes a coordinated by the daily operations to 29 advances to the fact that a separate section of them to the home represent a call from a commotion department from Jama May make its portion of the loaf a report to the house bill 37 percent of commons, as a liberal influx of preparations that the senate, systems that has proven a 71 be given a Federal report in this building and searching for three of a nation's answer further discussion and debate so ninth as soon favored the motion to move some analysts, the two 10 those who favor a motion to the hospital from 7:00 AM, said, look into this led them to appropriate actions from since I was saying nine of those who opposed to signify the same ninth gave me the chance have a motion chairs, said he was the most honest this mod section of a chance to the bottom of the combo 287502697 to 0269 for the sponsor as the middle schools masterpiece of a bill ) and some chair will be glad two of the Fichera ?? (SPEAKER CHANGES )jackson's from long-standing as simple and recognize 2% a report things as committed as chair the House Committee finance subcommittee of the annexation annexation that last Thursday and we give the house bill 568 actually annexation and senate bill 269 to celebrate annexation plan county Airport Property those centers as chairman was removed from 27 percent seizure question if these are just can't read ML of the man appeared on the counter last Thursday or Friday, 10 to 12% chance to look into the reply to that is the club to parody of a jam to an end to serve had to shoot offense from land-use some of this group four 1,000,000 sellouts – not been reported to the full committee and therefore a question whether these clever license plates on the agenda when it's appropriate for this morning, the hurdle-office chair 560-2609 that the smallest my questions procedural question no question that share and said Tom comes to about two and 5 to 68 and 2629 U.S. edition of the SNA channel seven subcommittee and the research is being referred to have preferred an additional edition-show yesterday to share the buffer that committee Thursday and refer to the house of financing suspension for today and has lessened and should come under chairs ?? (SPEAKER CHANGES) two column that in hopes that they cannot sit down and some place an object of attention to the spells being placed on today's card holder and as such table not be heard today as champions survey of some from as a father, Sam Jasper 553 to 12% chance than half of his civil and constitutional schools 553 to take as chairman of the committee um, stand in the place of Representative Al Rashid, presented this puts us in the ??....

House finance occupancy tax sub committee last Thursday. Essentially what it does is, it conforms to new guidelines that we set forward and adopted in the sub committee last week. That also increases their occupancy tax from 5% to 6%. You'll notice in the bill itself that there is a cap on the accumulated amount of dollars that can be used toward beach nourishment of 30 million dollars. The reason that that cap is in there is simply to protect the fund itself because if the federal government ever does began to participate in funding beach nourishment then those dollars will be sent back to the tours and be used for other reasons. I'll answer as many questions as I can. [SPEAKER CHANGES] Representative Ross for an inquiry. [SPEAKER CHANGES] Yes, thank you mr chairman. The gentlemen said that they've changed the guidelines for occupancy tax bills. And so since we've had certain guidelines for occupancy tax bills for years and years. I'd like to know what the changes are to the guidelines for occupancy tax and why those changes were made. Because we've been doing things the same way for a long time and its always good to know why the old way doesn't work anymore. [SPEAKER CHANGES] Yes ma'am the chair would like to point at with all due respect that this was explained when we first convened. But the chair would ask that representative Moffit address that again. And Mr. Cohen could you come to the front please you have the floor. [SPEAKER CHANGES] Thank you Mr chair. As I stated this morning, the guidelines which have been in place I guess for about 20 years or so that were put in place by this committee. Essentially allowed for coastal communities to use one third of their occupancy tax for beach nourishment. This was put in while at the same time the federal government was also participating and funding some of those beach nourishment programs. Since the federal government is no longer doing that, the coastal communities were having difficulties with their beach nourishment programs. They ask for the change in the guidelines to go from one third to fifty percent. The North Carolina travel and tourism coalition took this under advisement. They met about it. They discussed it. They felt that it would be an appropriate step to change the guidelines to honor that request. The sub committee discussed it thoroughly last Thursday we agreed and we adopted the change to the guidelines. Once the guidelines were changed thats when representative Mikel Ref presented her bill. [SPEAKER CHANGES] No Problem. Representative Brawley. [SPEAKER CHANGES] Speak on the bill and make a motion. [SPEAKER CHANGES] Yes sir you have the floor to speak on the bill. [SPEAKER CHANGES] Having been apart of the some of the first occupancy taxes that were passed and seen the benefits derive from it. I'd like to make a motion we give house bill 553 a favorable report. [SPEAKER CHANGES] Ok sir. Representative Carney. [SPEAKER CHANGES Thank you Mr chairman. I serve on the occupancy tax committee and we did discuss this fully and the coalition did weigh in and support on it. I will point that there, we did say is that the chairman of the occupancy tax sub committee said earlier that there will be a sunset put in, its not a sunset but its a date certain that Carnig county agreed that this would end and it would revert back to the original formula. We did identify those coastal counties that are contiguous to the coast itself. So we did have that in that discussion. [SPEAKER CHANGES] Thank you. Representative Lukey. [SPEAKER CHANGES] Thank you mr chairman. I wanna follow up on representative Ross's concerns. And let me ask first representative Moffit and I'm in Carnig county, and I've stayed in Lantic beach, so I've paid that occupancy tax. If I go down after this bill becomes law, how much will I pay in terms of occupancy tax. [SPEAKER CHANGES] It'll go up one percent. [SPEAKER CHANGES] Do you realize how unusual that is in the state of North Carolina? [SPEAKER CHANGES] What is unusual? [SPEAKER CHANGES] That the occupancy tax is above 6%. [SPEAKER CHANGES] No its going from 5 to 6. [SPEAKER CHANGES] I'm sorry, I understood you to say 7%. [SPEAKER CHANGES] I didn't say 7 I said it goes up one percent to 6 percent. [SPEAKER CHANGES] five plus one. O. Well to follow up you're saying Carnig county, I've been paying 11 percent not 12 ..

The first same in some senses that serve as a scientist and staff can turn the thing back in the county had 8% is the only one thing that's because the man's car museum but to follow this chairman to offer this lie again led by these guidelines which we have struggled with me for years and have those headlines in the house finance committee and subcommittee and a lot of members of thumb for testing for exceptions to those rules and in this subcommittee has hammered them back and said nationalism before me some committee's subcommittee with the same rules questions that so that people can form the rules even have a special break your special repair some muscle a list along, (SPEAKER CHANGES) as the years I was coach Arafat’s so I'm wondering if you're wise suddenly this subcommittee is changing the rules says that mean that climax member function of each community association rules on a mountain was changing roles , just as some understanding sounds like you said you change the rules just before the spill came to hostile 553 to 40¢ and then the HMOS and 5¢ and 20 THS has been under discussion for several months of the market on travel and tourism coalition of that with an early on second because we do not take lightly change the guidelines and got a license else says surge of this body well this Serb document is well service they will so we did not take it lightly this that could not happen just a convenience system and several months in the making the Foot Locker line travel and tourism coalition could not agree with the subcommittee one of them about changes to the position that day and then taking was the fact that the beach itself is the largest role for the coastal communities at the beach itself does not have the appropriate notion in regards to replace as saying that Betsy’s two to leave by coddle action that's a bit role from a tourist stamp one would go for naught so they decided that's the best interest of the coastal communities as number one attraction from the tourist standpoint is the beach to be adequately funded a special in the face of the fact that the Federal government has seized the fund was the first elected as a move follows the challenger and Anna Serna move them to move quickly and some asking and I heard someone references sunset some references some said this sometimes has served as a sign that says he'll have some said, (SPEAKER CHANGES) a staff of this direction of these questions-sensitive data as of 5 seconds for the NLUAFNY, Friday's crash and semifinal MI Lebed FM at this company SIUIT 60 percent for being too harsh and that their BI there a cap on how much money they can to make all our offense at this particular down as a cap of $30,000,000 -looking thing to serve a chance-Janzen, some stores officials as chairman of questions that his staff, that they represent looking at this Taliban of the SMS just a way to find out whether the better angels of occupancy taxes in North Carolina and has the highest occupancy taxes account is due to limited to 2 1/2-committing a crime, the chair will recognize staff two-cassette status of looking at some of the contempo stars , (SPEAKER CHANGES) and then not in IE Scott MAFI 6 percent which is a combination that Randall CFM Lenny ascend to play a macro Baghdad five, seven years ago, and a shell T & S specifically dedicated to ask Alice M and that the underlying economy C does about the 6% but most cases range anywhere from three sides and has established players chairman members of the committee and I'm certainly I am a staunch supporter of the guidelines to travel and tourism industry decided that have to remember your suggestion deadlines might be in order that rolls of the change in the Federal government's own problem of dishonesty travel and tourism coalition supports the guidelines in the legislation here ??....

The plans do not think that we have a reasonable building from office if you look at the original curry county auction text of this is one of the bills that did not completely conform to the guidelines and if you look at the language and his friends struck so much of the money was about to taxes geared towards building the convention center and truthfully this bill Moos Clara county into a better compliance with the guidelines issued a deal from further declines for a debate own hospital 553 F not represented by Olea, (SPEAKER CHANGES)bill has moved to the hospital 553 together the civil court for further discussion about hill hospital 55379 those who favor the motion to give hospital 555 Federal level center from the same 95 52 POWs will signify the 79 convention and thus had a motion to Harris, such as chairman and a setting that aside, plan's structure purpose from ocean and the Germans say this motion, saying that the resurrection of concern that the state will think there's any love difficulty in the house bill 269 I'd like to make a motion to go back to the scathing 269 five-assuming no account for those considerations that the census had a hankering as moves to seven vote and 69 which was reported seven and from the home seventh to many footer eighth at DS get ahead two to the use of object to notwithstanding the object of the objection raised: representative for a loan from nine and test a combination motion idea of readiness subcommittee of Ross invaders may recommendation on a vital to the best of my knowledge the city's Salisbury does not support this bill and I realize voluntary service and the annexation for the 5 to 70,000 support the annexation 1000 Mater Dei but, no for Mr. Masaki was controversial accounting offices here is your call the hype, Jerusalem controversial of the city posted this as a positive,¢, which(SPEAKER CHANGES) Mr. Ballmer specter to look in the mid to late Mrs. Two minutemen like it was too much in the consumer question is also home to motion, just that sense we do have one of the sponsors of the bill over there a way to get the information about the city's Salisbury could you just tell us whether the city's suspect as a columnist Anna K error we're recognizing them too early Mr. Chairman Lucy the bunny ground for new solo that, that's informed even be no Carl Levin hull actually met than the one that cruise on the board of regents which infrastructure losses in court as early as chair from the second thing the judges said bill was sponsored by Senator Brock and edit and the airports in my district , is in the 3887 does not support P\and moved to Canada 2000 to the county to support the first annexation of that for the Airport to affect the Meadows to seven, questions after buying this as a very bad condition, but entire delegation from February and locate Janet and trust and could lead the representative for Hager has moved to the ads from the senate bill 269 he had 22 games: should go before we discuss the actual contents of the bail out we would also like to speak on the motion this before the committee 79527 emotion from representative, eager to have said the 269 to today's agenda will signify by say I want those opposed to signify by saying no committee that share the ice haddock and senate vote 269 has had to today's attack on their Representative Moffett please state your purpose touches to comment this chair home of cancer ??...........

Thank you. I do believe that when the subcommittee was set for last week, that both House Bill 260, or Senate Bill 269 and House Bill 568 were properly noticed and that no one from Salisbury or the City of Asheville made it to the meeting. [SPEAKER CHANGES] Thank you, sir. With that, we'll move into Senate Bill 269. Representative, you have the floor, sir. [SPEAKER CHANGES] Thank you, Mr. Chairman, members of the committee. This is Senate Bill 269. Senator Brock could not be here. They're not meeting until later today, but it's companion to House Bill 260. This local bill has full bipartisan and local delegation support. It passed the Senate committee and onto the Senate floor unanimously with bipartisan support. It's passed all the House committees, finance subcommittee unanimously, and all the property in question is owned by Rowan county as you'll see by the map that has been passed out. All parcels are owned by the county of Rowan. Any questions? [SPEAKER CHANGES] Representative Luebke. [SPEAKER CHANGES] Well, I'm sorry to beat a procedural dead horse or moose or whatever I'm beating. But I remember, Representative Moffitt that when you called the subcommittee meeting you did not state the bills that would be heard in the subcommittee because afterwards several of us said, "Gosh, we should have asked what those bills were." And so you didn't actually notice them by even number. [SPEAKER CHANGES] Thank you, Representative Luebke, it's not my subcommittee. [SPEAKER CHANGES] I'm sorry. I apologize then. Whoever, who would it have been? Representative Stone, you did not identify the bills that were going to be heard. [SPEAKER CHANGES] All right. [SPEAKER CHANGES] It's neither here nor there, the bills got the votes. I just want to make that comment for the record. That we did not know what bills were coming up in the subcommittee. Thank you. [SPEAKER CHANGES] Thank you, Representative Luebke. Representative Ross on the contents of Senate Bill 269. [SPEAKER CHANGES] Thank you, Mr. Chairman. This is actually on a remark made by the gentleman. He said that it had full bipartisan support. I assume that means among the county commissioners? [SPEAKER CHANGES] No, ma'am. County commissioners are all Republican. I mean among the delegation. We have a democratic Senator and a Republican Senator, and two Republican House members. [SPEAKER CHANGES] OK. Thank you, very much. [SPEAKER CHANGES] Representative Brawley, please state your purpose. [SPEAKER CHANGES] For a motion. [SPEAKER CHANGES] The gentleman is recognized for a motion. [SPEAKER CHANGES] I would move that we give Senate Bill 269 a favorable report. [SPEAKER CHANGES] Representative Brawley of Iredell has moved that Senate Bill 269 be given a favorable report. Is there further discussion or debate? Seeing none, the question before the committee is the motion by Representative Brawley of Iredell to give Senate Bill 269 a favorable report. Those who favor the motion will signify by saying aye. Those opposing the motion will signify by saying no. In the opinion of the Chair, the ayes have it and the motion carries. [SPEAKER CHANGES] Thank you, Mr. Chairman, and members of the committee. Even you, Representative Luebke, thank you. [laughter] [SPEAKER CHANGES] Ladies and gentlemen, the Chair thanks you for your time today. There will be no further business before the committee. This committee stands adjourned. [background voices]