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2009 Legislative Session Summary North Carolina Association of Realtors® The “long session” that concluded in August certainly lived up to its name this year. The session began in January and after a grueling six-month-plus debate on the budget, state lawmakers finally constructed a budget that could gain enough votes. The 2009 session also included discussion and enactment of major substantive legislation, such as legislation that significantly amends the state coastal insurance program and a bill that bans smoking in most restaurants and bars. In its governmental affairs advocacy, the North Carolina Association of Realtors® (N.C. Realtors®) has always fought to protect property owners’ rights, increase housing affordability and promote homeownership. And with the current real estate market, and the economy in general, facing real challenges, the N.C. Realtors® focused especially on ways to improve the industry and our members’ businesses. The following is a summary of the legislation of interest to Realtors® that was considered by the 2009 General Assembly. The summaries are grouped by subject matter. Tax Issues
However, N.C. Realtors® successfully halted all of these tax ideas. The $19 billion state budget approved by the General Assembly and signed by the governor includes nearly $1 billion in new taxes, approximately $2 billion in spending cuts and more than $1 billion in federal stimulus funds. The tax increases include the following:
However, our victories in defeating the tax proposals harmful for our industry cannot be celebrated for too long. There will continue to be an examination of the state’s tax code. House and Senate finance committee leaders will continue to meet this fall to review the tax code and consider the idea of restructuring our state tax system. There could even be a special legislative session to consider such reform. The N.C. Realtors® will continue to be engaged in this issue. Homeowners Insurance Home Insurance and Beach Plan Legislation N.C. Realtors® focused its advocacy efforts on the following:
N.C. Realtors® successfully lobbied for several significant changes to the bill, and its passage will improve insurance availability and affordability. Home Inspections Home Inspector Legislation This legislation will improve home-inspection reporting and increase the professionalism of the home-inspection industry. In addition to the hard work of the Senate sponsors, the sponsors of the legislation in the House (Rep. Pryor Gibson (D-Anson) and Rep. Thom Tillis (R-Mecklenburg)) were tireless in advocating for this legislation. The legislation does the following:
Appraisals HVCC Moratorium and Appraisal Management Companies The implementation of the Home Valuation Code of Conduct (HVCC) has led to appraisal-management companies (AMCs) having an increased role in the real-estate appraisal process. And in some instances, this is causing outcomes that are negatively impacting the real estate industry. During the 2009 legislative session of the N.C. General Assembly, we advanced legislation that would require AMCs to be regulated. This legislation, Senate Bill 829 (Regulation of Appraisal Management Companies),http://www.ncleg.net/Sessions/2009/Bills/Senate/PDF/S829v3.pdf, introduced by Sen. Clark Jenkins (D-Edgecombe), was approved by the Senate and will be eligible in the House next session. In addition, N.C. Realtors® staff has asked the N.C. Appraisal Board, the N.C. Real Estate Commission and the Attorney General to support an 18-month moratorium on the HVCC so these issues may be addressed. Due to our efforts, in conjunction with NAR, Reps. Howard Coble, Bob Etheridge, Virginia Foxx, Walter Jones, Patrick McHenry, Mike McIntyre and Heath Shuler have all agreed to cosponsor the moratorium legislation. N.C. Realtors® will continue to work with NAR, the state’s regulatory agencies and our elected officials at the state and national levels to come to a quick and positive resolution of these issues. Miscellaneous Notice/Internet Posting of Local Government Fee Increases Property Tax Reprieve on Builders’ Inventory Building and Development Permit Extensions Fortunately, N.C. Realtors®-supported legislation that automatically grants a six-month extension of these permits was approved by the General Assembly. Senate Bill 831 (Extend Permits Regarding Land Development), introduced by Sen. Dan Clodfelter (D-Mecklenburg), http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S831v6.pdf, is now law. The House counterpart bill, HB 1490 (Land Development Permit Changes), introduced by Rep. Ty Harrell (D-Wake), http://www.ncleg.net/Sessions/2009/Bills/House/PDF/H1490V5.pdf, contains language that specifies a process for local governments to follow when the extended or “resurrected” permits cause a water- or sewer-capacity problem. This bill was passed by the General Assembly to address concerns from Union County. Housing Affordability Senate Bill 810 (Affordable Housing/No Discrimination), http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S810v7.pdf, introduced by Sen. Floyd McKissick (D-Durham), makes it a violation of the North Carolina Fair Housing Act to discriminate in land-use decisions or permitting based on the fact that the development contains affordable housing for families or individuals below 80 percent of area median income. The bill does allow decisions to be based on considerations of an over-concentration of affordable housing and other criteria such as traffic and environmental concerns. This is landmark legislation as North Carolina is the first state in the nation to include affordable housing as a protected class in its fair housing law. Bans on E-mailing and Texting while Driving http://www.ncleg.net/Sessions/2009/Bills/House/PDF/H9V5.pdf, introduced by Reps. Garland Pierce (D-Scotland), Pricey Harrison (D-Guilford) and Larry Hall (D-Durham), was the only one enacted. HB 9 bans motorists from sending and reading -emails and texts while driving. Beginning Dec. 1, 2009, motorists who are in violation of this new law could face a fine of $100 plus court costs. The law includes exceptions for emergency responders, as well as people who use voice-activated technology or access global-navigation systems. Transportation http://www.ncga.state.nc.us/Sessions/2009/Bills/House/PDF/H148v6.pdf, introduced by Reps. Becky Carney (D-Mecklenburg), Lucy Allen (D-Franklin), Deborah Ross (D-Wake) and William McGee (R-Forsyth). The bill allows all 100 of North Carolina's counties to raise sales taxes to pay for public-transportation projects. Wake, Durham, Orange, Forsyth and Guilford Counties could implement a half-cent sales tax, and the remaining 94 counties could implement a quarter-cent sales tax to be used for public transportation. The tax can be levied only if the voters of the county approve the tax in a referendum vote and the boards of commissioners and the relevant local transportation authority have adopted a financial plan for the proceeds. Mecklenburg County already has an extra half cent on the sales tax for transportation and therefore could not raise it further. The bill also allows all counties to raise their vehicle-registration fees to a maximum of $7. Studies Before the start of next session, the N.C. Realtors® Government Affairs team will be working with the various study committees established by the General Assembly this session. There is a wide range of issues that will be studied over the interim and many could impact the real estate industry. HB 945 (The Studies Act of 2009), http://www.ncga.state.nc.us/Sessions/2009/Bills/House/PDF/H945v6.pdf, introduced by Rep. Ronnie Sutton (D-Robeson), provides the authority for the study committees. Here are some of the topics that we will be actively involved with during the legislative interim:
On Site: 9/25/2009
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