How They Voted WHERE LEGISLATORS STOOD ON NORTH CAROLINA’S JOBS AGENDA 2019 LEGISLATIVE SESSION NORTH CAROLINA GENERAL ASSEMBLY Introduction As the state’s most industry-diverse, nonpartisan business advocacy group, the NC Chamber is relentlessly focused on economic growth and job creation. For us, that means listening to your concerns about the issues impeding your progress, identifying the solutions and policies that will spur economic development and job creation, then fighting and advocating for those ideas at the North Carolina General Assembly. Thanks to the input and leadership from the statewide business community, we’ve seen tremendous success on pro-growth and pro-jobs policies over the last several years. But in the midst of a challenging political landscape, it’s more important than ever to hold our lawmakers accountable to your priorities and celebrate those leaders who stood up for you. How They Voted has always been an unbiased accounting of where our state’s legislators stand on the issues that matter most to your business as detailed in the annual Jobs Agenda. Transcending politics, this publication is a straightforward tally of who showed up when given the opportunity to improve our state’s competitive footing and create jobs in our communities. We’re proud to stand up for job creators in our state and to fight for the policies that fuel statewide job growth and economic prosperity. After another successful legislative session, we look forward to future collaborations and victories on your behalf. Sincerely, Gary J. Salamido President and CEO, NC Chamber Building the Jobs Agenda Building the Jobs Agenda Using the framework laid out by our guiding document, North Carolina Vision 2030 – A Plan for Accelerating Job Growth and Securing North Carolina’s Future, NC Chamber volunteer leadership and committees develop a list of policy priorities that matter most to the business community. Before session begins, we share our top agenda items with each lawmaker and deliver copies of the Jobs Agenda at the General Assembly. Fighting for the Issues that Matter Throughout session, our government affairs team stays in close contact with lawmakers to advocate for or against policies that could affect your business and the cost of a job. The NC Chamber keeps our members updated on these bills throughout session in our newsletter, This Week at the Capital. This email details where the NC Chamber stands on active bills and why we support or oppose their passage. Counting the Votes Legislators earn points for each pro-business vote they take on the bills we tracked or lose points for anti- business votes. We track votes including readings, concurrences on conference reports and more. Bill sponsors and cosponsors earn additional points for introducing legislation that the NC Chamber supports. Missing a vote or declining to sponsor or cosponsor a bill is not a penalty—that legislator will simply have one fewer vote. Naming the Champions Each legislator’s final voting percentage is calculated as pro-business votes divided by total votes. Legislators who have a voting record exceeding 80 percent are named Jobs Champions. Legislators who scored a 70 percent or higher and improved by 10 percent or more over their lifetime record are named Jobs Advocates. By the Numbers 38 65 82% 98 11 Bills Included Votes Counted Average Voting Jobs Champions Jobs Advocates Record 25 14 13 0 Pro-Jobs Bills Pro-Jobs Bills Anti-Jobs Bills Anti-Jobs Bills Became Law Signed into Law 2019 Legislative Agenda The following is an abbreviated version of the NC Chamber’s 2019 legislative agenda. For the full agenda, please visit ncchamber.com/agenda. Education & Talent Supply - Maintain strong academic standards that prepare our students for a competitive workforce - Encourage 75% enrollment rate for eligible children in the North Carolina Pre-K program to help meet 3rd- grade reading proficiency goals - Support both college and career advising programs, including the Career and College Promise Program - Advocate for apprenticeships and other career and technical education - Coordinate with the NC Community College System to expand access to training and education, examine funding methodologies and explore regionalization - Support efforts to recruit high-quality teachers, especially methods inspired by the private sector Competitive Business Climate - Cap, reduce and eliminate the state franchise tax over the next five years - Decouple from the Internal Revenue Code section 163(j) limit deduction on interest expense and reverse the 2018 franchise tax expansion on small businesses - Support association health plans and value-driven health care - Oppose legislation that expands the number of health insurance mandates imposed on NC businesses - Continue to oppose the elimination of Certificate of Need (CON) while working to advance CON reforms that reduce cost to the health care system and business - Advance tort and civil liability reforms, especially those that provide certainty and protection from frivolous nuisance lawsuits - Defeat legislation that erodes balanced reforms to workers’ compensation laws and fight to protect balance on the North Carolina Industrial Commission - Work to establish a research and development grant program for early-stage and start-up businesses - Promote policies that encourage angel investing and venture capital investment - Identify and promote qualified opportunity zones and general investment in non-urban and distressed areas Infrastructure and Growth Leadership - Advocate for policy recommendations outlined in the NC Chamber Foundation’s regulatory competitiveness study and the Framework for North Carolina Water Policy - Streamline the contested case process to promote efficiency and predictability for businesses to simplify and accelerate project delivery - Identify additional, diversified revenue sources to stabilize infrastructure investments, especially recommendations in the NC Chamber Foundation’s transportation study Education and Talent Supply North Carolina must develop and maintain a first-rate, leading talent pipeline by aligning education and workforce development systems that are effective, agile, accountable, and flexible, and that consistently produce a competitive, diverse, world-class workforce. For many job creators, the lack of skilled talent is the top issue affecting their ability to grow. This legislative session, we saw a number of victories that will both strengthen our talent pipeline from cradle to career and bolster collaborative, demand-driven workforce development solutions. Key Bills HB 487 Additional Education and Community College Short-Term Workforce Training Funds Talent Supply Bills Supported by the NC Chamber There is a funding disparity at the community colleges between workforce training programs and curriculum (college preparation) HB 362/HB 145 15-Point Scale for programs. This legislation closes that gap. Increasing the number School Grades of qualified workers remains a top priority for the NC Chamber. HB 886 Study Participation of Therefore, we supported the policy of treating curriculum and Operators in NC Pre-K workforce programs equally. The language from this bill was signed into law as part of SB 61. HB 924/SB 134/HB 433 Economics and Financial Literacy Act HB 664 SB 438 Excellent Public Schools Act myFutureNC/Postsecondary Attainment Goal of 2019 The myFutureNC Commission set an important postsecondary SB 562/HB 874 Second Chance Act attainment goal for the state: by 2030, 2 million North Carolinians between 25 and 44 will have a high-quality postsecondary degree or credential. This bill codifies that goal and sets up a task force to chart a path forward. The NC Chamber endorsed the myFutureNC attainment goal and supported this legislation because business leaders will need skilled workers to fill their open positions for years to come, and aligning stakeholders across business, education and government will benefit us all. Competitive Business Climate While North Carolina is appearing near the top of an increasing number of noteworthy business climate rankings, we cannot be complacent as other states are constantly working to be more competitive. North Carolina must continually strive to position its business climate more competitively in order to attract new investment and create and retain more good jobs for North Carolinians. Key Bills SB 86/HB 464 Bad Bills that Threaten Small Business Health Care Act North Carolina’s Business Climate Across all three pillars of North While North Carolina’s health care costs have been on the rise, our Carolina Vision 2030, these are the health outcomes remain far below the national average. To upend bills opposed by the NC Chamber this backwards value proposition, North Carolina must bring value- during the 2019 legislative session: driven health care to our state, and association health plans could be a key piece of that puzzle. This legislation creates an opportunity HB 46 Economic Security Act to help small businesses across the state have access to high- quality, affordable health care coverage. It became law without the HB 315 Instructional Materials governor’s signature on August 26. Selection HB 431 Fiber NC Act SB 622/HB 676 Tax Reduction Act of 2019 HB 568/SB 653 Additional Measures for Emerging Contaminants Two of the NC Chamber’s top tax priorities are included in this bill: the simplification and reduction of the franchise tax and the HB 572 Req Prop. Disposal/Coal Ash extension of the exemption on jet fuel. A cap, reduction