Table of Contents Chapter Page Editor’s Preface 1 1 The General Assembly 3 The House of Representatives 3 The Senate 4 Statistical Comparison 5 Major Legislation Enacted by the 2003 General Assembly 5 Unfinished Business 7 The Governor’s Vetoes 8 The 2004 Session 8 2 The State Budget 11 The Budget Process 11 The 2003–2004 Budget 12 3 Children and Families 15 Divorce 15 Marriage 16 Domestic Violence 16 Child Abuse, Neglect, and Dependency 17 Delinquent and Undisciplined Juveniles 20 Child Support 22 Child Day Care and Early Childhood Programs 23 Other Legislation Affecting Children and Families 25 4 Community Development and Housing 27 Community and Economic Development Tools 27 Affordable Housing 30 Consumer Lending 31 iii iv North Carolina Legislation 2003 5 Courts and Civil Procedure 33 Budget 34 Court Administration 35 Civil Procedure 36 Evidence 37 Alternative Dispute Resolution 38 Matters of Interest to Clerks of Court 38 Matters of Interest to Magistrates 40 Bills That Did Not Pass 41 6 Criminal Law and Procedure 43 Criminal Offenses 43 Criminal Procedure 49 Law Enforcement 50 Sentencing and Corrections 51 Studies 52 7 Elections 53 Help America Vote Act 53 Non-HAVA Changes Related to Elections Administration 58 Non-HAVA Changes Related to Elections Procedures 60 8 Elementary and Secondary Education 63 Financial Issues 63 Improving Student Performance and Opportunities 65 Health Issues 69 Miscellaneous 70 Studies 72 School Employment: Pay and Benefits 73 School Employment: Tenure, Contracts, and Licensure 74 9 Environment and Natural Resources 77 Agriculture 77 Air Quality 78 Coastal Resources 79 Environmental Finance 79 Contaminated Property Cleanup 81 Natural Resources 81 Solid Waste 82 State Parks and Natural Areas 82 Water Quality 83 Water Resources 83 10 Health 85 Budget 85 Public Health 87 Smoking 88 Jail Health 88 Emergency Medical Services 89 Health Professions 89 Financing 91 Advisory Committees 92 Anatomical Gifts 92 Other Laws of Interest 93 Table of Contents v 11 Higher Education 95 Appropriations and Salaries 95 University and Community College Governance 97 Student Relationships and Financial Aid 99 12 Information Technology 103 IT Security Issues 103 Budget and Appropriations Issues 104 The Help America Vote Compliance Act 105 E-NC Authority 107 Miscellaneous 108 13 Land Use, Community Planning, Code Enforcement, and Transportation 111 Zoning 111 Subdivision 112 Building Code 112 Housing Code 114 Community Appearance 114 Transportation 117 Miscellaneous Related Topics 119 14 Local Government and Local Finance 121 Local Finance 121 Local Government 125 15 Local Taxes and Tax Collection 133 Listing and Assessment 133 Levy and Collection 134 Occupancy Taxes 136 Municipal Vehicle Tax 136 Studies 137 Technical Corrections 137 16 Mental Health 139 Appropriations 139 Laws Affecting Local Program Expenditures 142 Prohibition of Rebirthing Technique in Psychotherapy Practice 143 Licensure Violations 143 Involuntary Commitment 144 Consumer Advocacy Program 144 Licensed Professionals 145 Confidentiality 145 Sterilization of the Mentally Ill and Mentally Retarded 148 Guardianship 148 Disabled Adults 149 Medicaid Services 149 Insurance 150 Joint Legislative Oversight Committee Studies and Reports 151 Other Legislation 151 17 Motor Vehicles 153 Driver’s License Law 153 Registration and Certificates of Title 154 Special License Plates 154 Rules of the Road 155 Impaired Driving Offenses 155 Bills That Failed to Pass 156 vi North Carolina Legislation 2003 18 Public Personnel 157 Legislation Affecting Both State and Local Government Employees 157 State Employees 158 Local Government Employees 159 19 Purchasing and Contracting 161 School Purchasing 161 University Purchasing Flexibility 163 Other Purchasing Changes 164 Construction Law Changes 164 General Contract Law Changes 166 Local Government Property Disposal 166 20 Senior Citizens 169 Government Programs for Senior Citizens 169 Long-Term Care Facilities 170 State and Local Government Retirees 171 Other Legislation of Interest to Senior Citizens and Their Families 172 21 Social Services 175 Children’s Services 175 Medicaid 179 State-County Special Assistance 181 Temporary Assistance for Needy Families (Work First) 182 Child Support Enforcement 183 Other Legislation Affecting Social Services Programs and Agencies 185 22 State Government 187 Administrative Procedure Act 187 Sale of Blount Street Property 190 23 State Taxation 193 Highway Use Tax 193 Internal Revenue Code Update 194 Tax Changes in the 2003 Budget Act 194 Revenue Administrative Changes 200 Psychiatric Hospital Financing 207 Manufactured Housing 209 Wine Shipper Permits 209 Employment Security Commission Surtax Delay 211 Qualified Business Credit/Ports Credit 212 Historic Preservation Credit 214 State Government Sales Tax Exemption/School Cooperative Refund 215 24 Wildlife and Boating Regulation 219 Public Acts 219 Local Acts 220 Editor’s Preface Since 1955 the UNC Chapel Hill School of Government’s Institute of Government has published periodic summaries of legislation enacted by the North Carolina General Assembly. Initially these summaries were published in special issues of Popular Government. Beginning in 1974, however, the Institute began publishing the summaries annually as a separate book, North Carolina Legislation. North Carolina Legislation 2003 is the fortieth of these summaries and deals with newly enacted legislation of interest and importance to state and local government officials. It is organized by subject matter and divided into twenty-four chapters. In some instances, to provide different emphases or points of view, the same legislation is discussed in more than one chapter. With two exceptions, each chapter was written by a School of Government faculty member with expertise in the particular field addressed. The two exceptions are Chapter 12, “Information Technology,” written in part by staff members of the North Carolina League of Municipalities and the North Carolina Association of County Commissioners; and Chapter 23, “State Taxation,” written by members of the General Assembly’s professional staff. The text of all bills discussed in this book may be viewed on the Internet at the General Assembly’s Web site: http://www.ncleg.net. This site also includes a detailed legislative history of all action taken on each bill and, for some bills, a summary of the fiscal impact of the bill. Albeit comprehensive, this book does not summarize every legislative enactment of the 2003 General Assembly. For example, some important legislation that does not have a substantial impact on state or local governments, such as that involving business regulation or insurance, is not discussed at all. Local legislation of importance to a single jurisdiction often is treated only briefly. Readers who need information on public bills not covered in this book may wish to consult Summaries of Substantive Ratified Legislation, 2003 General Assembly, which contains brief summaries of all public laws enacted during the session. This compilation is published by the General Assembly’s Research Division and posted on the Internet at the General Assembly’s Web site. A list of General Statutes affected by 2003 legislation, prepared by the General Assembly’s Bill Drafting Division, is also on-line at the same site. The Institute of Government also publishes two separate reports, Final Disposition of Bills and the Index of Legislation, that provide additional information with respect to public and private bills considered in 2003. These publications can be purchased through the School of Government Publications Sales Office (telephone: 919.966.4119; e-mail: [email protected]). 1 North Carolina Legislation 2003 2 Each day the General Assembly is in session, the Institute’s Legislative Reporting Service publishes the Daily Bulletin. The Daily Bulletin includes summaries written by Institute of Government faculty members of every bill and resolution introduced in the state House and Senate, summaries of all amendments and committee substitutes adopted by the House and Senate, and a daily report of all action taken on the floor of both chambers relative to legislation. The Daily Bulletin is available by paid subscription, with delivery via U.S. mail, fax, or e-mail. For information on subscriptions, contact the School of Government Publications Sales Office (telephone: 919.966.4119; e-mail: [email protected]). Throughout the book, references to legislation enacted during the 2003 session are cited by the Session Law number of the act (for example, S.L. 2003-105), followed by a parenthetical reference to the number of the Senate or House bill that was enacted (for example, S 236). Generally the effective date of new legislation is not noted if it is prior to the production date of this book. References to the General Statutes of North Carolina are abbreviated as G.S. (for example, G.S. 105-374). William A. Campbell 1 The General Assembly The 2003 General Assembly convened on January 29, 2003, and adjourned on July 20, 2003, a brief session as odd-year sessions go, especially when compared to the eleven-month run of the 2001 session. This chapter provides an overview of the 2003 session, concentrating on the organization of each house, major legislation enacted, and unfinished business. The House of Representatives When the votes were finally counted and certified in the November 2002 election for members of the 2003 North Carolina General Assembly, sixty-one Republicans and fifty-nine Democrats had been elected