NC & SC Legislatures
AGC’s top goal in both North and South Carolina continues to be helping to raise badly needed funding for the infrastructure crisis in both states for transportation, building, and water and sewer needs. Carolinas AGC monitors hundreds of bills each year in the legislatures in both states and we are closely involved with dozens of bills that affect your business.
In North Carolina, CAGC had an outstanding session of the Legislature in 2009, with such efforts as:
- Getting through the Legislature a bill that, effective Jan. 1, 2010, now prevents the N.C. Department of Revenue from continuing to apply the franchise tax to overbillings. Without CAGC's action here, the construction industry would have been assessed for tens of millions of dollars in unfair new taxes in coming years.
- Helping lead efforts to exempt construction from a new statute of repose that, effective Oct. 1, 2009, increased from 6 to 12 years in North Carolina. Such liability, had CAGC not been involved, would have added the threat of lawsuits and untold liability and legal bills to your company's bottom line.
- Helping pass legislation that authorizes counties to hold referenda to raise local sales taxes to support public transportation and congestion relief. This is extremely significant in that, for the first time, the General Assembly is allowing local counties to raise transportation funds.
- Putting together a wide-ranging coalition of construction industry, local governments and public schools interests that successfully opposed legislation that would have allowed Public Private Partnerships to seek unsolicited bids for public construction work. This legislation, as originally written, would have eliminated the traditional public bidding system on many jobs at a time when there already is limited opportunity to do public construction work because of limited funding.
- Organizing a diverse industry coalition that was able to prevent from moving, as written, proposed legislation that otherwise would have upended the lien system on private construction work. Without CAGC's intervention here, the bill, as originally written, would have forced general contractors, subcontractors and suppliers to have to cover themselves by making a mad dash to the courthouse to file liens every time property was sold, or they thought the property might be sold, prior to receiving their final payment.
- Helping lobby for successful legislation that allowed the N.C. Turnpike Authority to sell $750 million in bonds for Triangle Expressway projects. With CAGC helping to educate lawmakers about the ripple effect of construction investments and extremely low construction prices, lawmakers approved turnpike, UNC and other construction funding that totaled over $1.2 billion this year (more details below).
- · Defeating or weakening legislation to allow local governments to increase dramatically the amount of work they could do with their own forces. For example, Mecklenburg County wanted to raise the force account limit from $125,000 to $850,000, but we were able to reduce that to $300,000 and only involve limited construction work over a short time frame.
In addition, CAGC single-handedly defeated a bill that would have allowed the Town of Holly Springs to negotiate with one bidder on building, highway and utility work projects. Without CAGC's action on these and other numerous bills, many counties and municipalities could have banded together to increase work done by public owners on a statewide basis – at the expense of the private construction industry and open, competitive bidding.
- Working successfully with a business coalition, led by the State Chamber, to oppose legislation on the Senate floor that would have resulted in very harsh penalties concerning e-verification, including loss of business. CAGC also worked with other business lobbyists to oppose successfully bills that would have allowed state employees to have collective bargaining rights, a precedent-setting step that could have spilled over to business and industry.
- Ensuring that a penny hike in the sales tax did not affect bids submitted or contracts entered into before the temporary sales tax hikes took effect. Before Sept. 1, the sales tax was 4.75 percent. The tax rate for sales made from Sept. 1, 2009 to Sept. 30, 2009 was 5.5 percent. The rate will be 5.75 percent from Oct. 1, 2009 until the legislation sunsets on July 1, 2011.
In the 2010 session of the NC General Assembly, which begins May 12, CAGC's top priorities will be to continue pushing for infrastructure funding and trying to preserve the state's business friendly climate.
In South Carolina: your CAGC staff lobbyists Leslie Hope and Sammy Hendrix worked with legislators to give back $1 billion in tax cuts over the last two years through income, property and grocery taxes, SCDOT, and Workers’ Compensation reforms. We also worked to help craft legislation to cut down on copper theft, to offer incentives for installing fire sprinklers in businesses rather than mandating the installation, and on road funding plans that could provide billions to fix roads and bridges in South Carolina. In 2009, the push for road funding will continue along with legislation that will make further legal and workers compensation reforms.
CAGC Legislative Reports
in addition to  weekly government relations reports, your lobbyists also summarize each legislative session.
NC General Assembly
SC Legislature
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