North Carolina General Assembly Update - June 2022 #2

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.

Budget Negotiations
House and Senate Appropriations Subcommittee Chairs held closed-door meetings all week to work out their area-specific portions of the budget. House and Senate leadership have already reached an agreement on topline spending. We anticipate the chambers to reach a budget agreement within the next two weeks which would keep the legislature on track to conclude the short session by July 1.

Medical Marijuana
The Senate gave final approval to S711, NC Compassionate Care Act. The legislation would legalize the use of medical marijuana for qualified patients with a debilitating medical condition. On Monday, the bill passed third reading on the Senate floor (36-7) with 1 Democrat and 6 Republicans voting against the measure. The bill has been sent to the House for consideration.

This week, the House passed S448, Amendments to Schedule VI of the Controlled Substances Act (CSA). The bill would remove Marijuana and THC derived prescription drugs that have received approval from the Federal Food and Drug Administration (FDA), from Schedule VI of the CSA. The North Carolina Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services could submit objections to any decision that comes from the FDA. House proponents made it clear in their discussions this was not marijuana legalization and dealt with prescription drugs already approved by the FDA. The bill passed third reading in the House on Wednesday (92-9) and has been sent to the Governor.

Medical Debt
On Tuesday, the House Banking Committee discussed H1039, Medical Debt De-Weaponization Act. Requested by the NC Department of State Treasurer, the bill would require hospitals and other large health care facilities and providers to disclose prices and financial assistance, provide minimum levels of free care, and prohibit certain collections practices. Facilities would have to adopt a written financial assistance policy (Medical Debt Mitigation Policy or MDMP) and provide free care for patients at 200 percent of the federal poverty level. The bill would give the Attorney General the authority of enforcement. No vote was taken on the legislation during the committee.

Remote Instruction
The House approved S671 this week. The proposed committee substitute (PCS) heard in the House Rules Committee would allow schools that provided full-time virtual instruction in the 2021-2022 school year to continue providing such instruction in the 2022-2023 school year and allow districts to opt for virtual learning days in the event of inclement weather. It would also authorize public school units to establish remote academies that meet certain requirements beginning in the 2023-2024 school year. The bill passed on the House floor Thursday with a vote of 73-22. It will be returned to the Senate for a concurrence vote.

Legislative Committee Meetings
Below is the current list of upcoming committee meetings scheduled for next week.

Tuesday, June 14

1:00 PM – House Local Government

4:00 PM – House Wildlife Resources

Wednesday, June 15

10:00 AM – House Appropriations, Information Technology

11:00 AM – House Judiciary 2

Thursday, June 16

9:00 AM – Joint Legislative Commission on Governmental Operations, Subcommittee on Interscholastic Athletics

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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