North Carolina General Assembly Update - March 2023 #4

Kilpatrick

KTS Strategies brings years of experience providing clients in a diverse range of industries with comprehensive policy and advocacy advice before federal, state, and local agencies. In North Carolina, we advise local municipalities, corporate transportation entities, nonprofit organizations, statewide associations, government vendors, and Fortune 500 companies before the North Carolina General Assembly and executive branch.

Below is an update on the activity at the NC General Assembly this week.

House Budget
House Speaker Tim Moore (R-Cleveland) confirmed the House budget will be released to the public next Wednesday, March 29. The proposal will have its first committee hearings following its release. The House is on track to have their budget passed by the first week of April. This is one of the quickest budget timelines we have seen in recent memory. The Senate plans to have their version passed in May. The two chambers will then negotiate in a conference committee until a final compromise has been reached. The goal is to have a budget completed before the end of the fiscal year on June 30.

Sports Betting
This week, the House considered H347, Sports Wagering. The bill would authorize, regulate, and tax sports betting in North Carolina. The Lottery Commission would be responsible for regulating and issuing licenses to 10 to 12 sports wagering operators. A 14 percent privilege tax would be levied on each operator. A portion of tax revenues would be distributed to DHHS for problem gambling, the NC Department of Parks and Recreation for grants to benefit youth sports, certain universities to support collegiate athletic departments, and the North Carolina Outdoor Heritage Advisory Council for grants for sports team travel assistance.

The bill passed the House Commerce, Finance, and Judiciary Committees this week. It will be heard in the House Rules Committee next Tuesday before heading to the floor for consideration.

Medicaid Expansion
The legislature gave final approval to Medicaid expansion this week. H76, Access to Healthcare Options, was heard on the House floor Wednesday and Thursday for concurrence votes. The bill passed on third reading with a vote of 87-24. It will now head to Governor Cooper for approval. Expansion would not be enacted immediately upon signature. It is contingent upon passage of this year’s state budget.

Session Laws
Governor Cooper allowed two bills to become law without his signature. S53, Hotel Safety Issues, would clarify that accommodations provided by inns, hotels, motels, or similar lodgings for less than 90 consecutive days do not create a tenancy. H40, Prevent Civil Rioting and Disorder, would increase the penalties for rioting or inciting rioting that causes damage to property, serious bodily injury, or death. It would also increase the penalty for certain assaults on emergency personnel. Both issues were passed by the legislature last year, but ultimately vetoed by the Governor. They are now Session Law 2023-5 and Session Law 2023-6 respectively.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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