North Carolina Legislative Update

Transportation Plan

Gov. Pat McCrory announced a new transportation plan in April. The so-called “strategic mobility formula,” selects projects based on objective data and local input. Under the proposal, all modes of transportation compete for the same funds.

The new plan would fund 260 projects and create more than 240,000 jobs over the next 10 years. 
Here are the key elements of this proposal:
  • State Level
    Projects that address traffic congestion and bottlenecks of statewide significance will receive 40% of the available revenue, totaling $6.4 billion over 10 years. 
  • Regional Level
    Projects that will increase access and mobility for entire regions of the state will receive 40% of the available revenue, equaling $6.4 billion over a decade based on regional population. 
  • Local Level
    Projects that will reduce localized congestion, improve safety concerns and increase connectivity will receive 20% of the available revenue shared equally over NCDOT’s 14 transportation divisions. That totals $3.2 billion over 10 years.

Education Reform Proposals

The House approved House Bill 719, which reforms the teacher tenure system, giving administrators the ability to remove ineffective teachers. The new system removes tenure and gives teachers either a probationary or non-probationary status. Under the bill, teachers would be considered “non-probationary” after four years but they would have to undergo yearly evaluations. A teacher would go on probation if he or she received bad evaluations for two years in a row, and could be fired at will.

Competing Auto Insurance Reform Plans

Two bills reforming automobile insurance passed through the Senate. Senate Bill 180 allows insurance companies to offer optional program enhancements that are currently available in other states. Senate Bill 181 keeps insurers from using years of driving experience as a factor for determining rates. This measure is ensures that experienced drivers from outside the United States do not have to pay the same rate as new drivers. SB 181 would allow insurance companies to take age into consideration in determining rates if a driver is younger than 19 years.

House Files Proposal to Halt Film Tax Credits

Under current law, film companies based in North Carolina can claim a 25 percent tax credit, up to $20 million, on productions spending more than a quarter million dollars in the state. House Bill 994 would eliminate the tax credit and waive any tax liability the company accrues over the next five years up to an equivalent amount. Opponents of the bill claim that it would slow the amount of films produced in the state.

Best regards
und viele Grüße aus Charlotte
Reinhard von Hennigs