Legislative Budget Sent to Governor Perdue

After a final vote to concur with the Senate's changes to the state budget bill, the House sent Governor Bev Perdue the legislative spending plan just after midnight on Saturday, June 5.  Governor Perdue has until June 15, 10 days from being sent the budget, to veto the bill before it would become law.  The deadline for the executive and legislative branches to compromise on a spending plan is July 1, the beginning of the new fiscal year. 

If Democrat Governor Perdue vetoes the Republican legislature's plan, both chambers will attempt to override her veto.  With a supermajority in the Senate, Republicans easily have the votes to get the 3/5ths majority necessary to pass a veto override.  In the House, where the Republicans don't hold as comfortable majority numbers, five Democrats who supported the legislative budget have indicated they'll also vote with the majority to override a gubernatorial veto on the measure.  With five additional votes on the potential veto override House Republicans will garner the 3/5ths majority necessary to overrule Governor Perdue's veto.

Under the assumptions of the approval or forced approval of the state spending plan, legislative Republicans have indicated their intention to adjourn the 2011 long session by June 17.  With this timeline in mind, the legislature expects to reconvene in mid-July to begin discussions on redistricting. 

 Crossover

Thursday June 9 is the deadline for bills introduced this session to pass one chamber of the General Assembly in order to be eligible for consideration the remainder of the 2011-2012 biennium.  Unless there is a fiscal impact or state money required, legislation must pass the House or Senate and be handed off to the other chamber, thus the nick name "cross over."

Unemployment Insurance

Last week Governor Bev Perdue issued an executive order extending federal unemployment benefits to an estimated 47,000 North Carolinians.  Upon learning from the federal government seven weeks ago that state action was required to extend the federal unemployment payments, the legislature passed and sent Governor Perdue a bill for her approval that married the unemployment payout extension to a largely political measure that would have tied the hands of the executive branch on budget negotiations for a year.  She vetoed the legislation, and the legislature then embedded the unemployment payment provision into their budget that they passed to her this weekend.  Questions have arisen as to whether or not the executive branch had the authority to issue the order

Workers Compensation Reform

Last week a bill passed in the House by a large bi-partisan margin that would reform North Carolina's workers compensation system.  The passage of the legislation follows months of lengthy negotiations between all relevant stakeholders including the business community, trial attorneys and union representatives.  The final product is one supported by all parties involved in negotiations, which would make North Carolina's system more comparable, and thus more competitive, with the systems in surrounding states including a cap on temporary total disability payments, among other provisions.  The measure has been referred to the Committee on Insurance in the Senate.

Tort Reform

A measure to reform portions of North Carolina's civil liability system passed the House last week as well.  HB 542 would require juries to receive accurate information about the actual medical bills paid by a plaintiff or their insurer for medical care received, clarify that land owners aren't liable for harm received by trespassers on their property, and establish expert witness requirements for testimony.  This legislation is now passed to the Senate for approval.

For more information, contact:

Allison Waller, Policy Advisor
allison.waller@nelsonmullins.com
 Mobile: 704.957.3728 | Office: 919.329.3883 | Fax: 919.877.3799