North Carolina General Assembly Week in Review - May 2024 #4

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Members of the North Carolina General Assembly were back in Raleigh for another full week of committee meetings and floor voting sessions. House and Senate appropriations chairs continued to meet behind the scenes throughout the week in an effort to come to an agreement on the amount of state dollars the legislature wants to spend during the short session.

Meanwhile, Governor Roy Cooper (D) vetoed the first bill of the legislative short session Thursday afternoon. HB 198: DOT Legislative Changes.-AB originally passed the House during the long session last year but was not taken up by the Senate until earlier this month. HB 198 largely contains changes requested by the North Carolina Department of Transportation, with the exception of the provisions cited by Governor Cooper as the reason for the veto. The provisions prompting the veto in HB 198 would amend maximum vegetation cut zone limits, expand the view zone for outdoor advertisement owners, or billboard owners, to remove vegetation from a state right-of-way up to 500 feet from the signage, and remove native redbud preservation requirements.

The Senate passed HB 198 in a final 30-14 vote along party lines earlier this month while the House approved the final version of the bill on Wednesday in a final 65-38 bipartisan vote. With slim Republican supermajorities in both chambers, lawmakers could vote to override the governor’s veto sometime this summer.

Predatory Roofing

A bill aimed at strengthening consumer protections against unethical practices in the roofing industry and makes several reforms to the regulations governing insurance rebates made its way through the House Committee on Insurance Wednesday afternoon.

SB 124: Predatory Roofing/Ins. Rebate Reform seeks to target predatory practices within the roofing industry by requiring contracts for residential roof replacement or repair to have a five-business day cancellation period following an insurance claim denial for the work to be performed under contract. The goal of the bill’s five-business day cancellation provision is to provide homeowners in weather-damaged neighborhoods time to determine whether insurance will cover the cost of the roofing services before the work begins. A violation of the five-day period would be a Class 1 misdemeanor.

The predatory roofing provisions included in SB 124 have been introduced in the House during the past three legislative sessions but were never taken up by the Senate. However, it appears the Senate has more of an appetite this time around. Proponents of the provisions have argued over the years that this will help in communities, particularly those along the coast, impacted by severe weather events that see out-of-state companies come in and begin work right away. Sen. Todd Johnson (R- Union) emphasized to committee members that the goal is not to harm local roofing companies; the goal is to prevent others from taking advantage of vulnerable North Carolinians.

In addition, SB 124 would allow an insurer or insurance producer to offer products or services not specified in an insurance policy as long as the total retail value does not exceed $250 per person per year and must be related to marketing, purchasing, or retaining an insurance contract, or provide risk control for the benefit of the insured. The bill would also limit the commission or fee given for the referral of insurance business by an unlicensed individual to a licensed insurance agent or broker to $50.00 or less in value. However, this limitation would not apply to title insurance.

SB 124, which passed the House Committee on Judiciary 2 last Wednesday and the House Committee on Insurance earlier this week, will now make its way to the House Committee on Rules, Calendar, and Operations.

Healthcare Flexibility

After discussion during last week’s hearing, the Senate Health Care Committee approved a new version of HB 681: Healthcare Flexibility Act on Wednesday. The original version passed by the House in 2023 with unanimous, bipartisan approval, sought to establish the interstate compact for physician licensure.

The version passed by the committee this week still includes the physician interstate licensure compact language but adds in several other priority healthcare policy provisions of the Senate. Those provisions include:

  • The ability for nurse practitioners with 4,000 hours of practice experience to apply for full practice authority.
  • The obligation for anesthesiologists to meet the federal Tax Equity and Fiscal Responsibility Act of 1982 (commonly referred to as TEFRA) requirements for billing and for services provided by a nurse anesthetist to be reimbursed at half of the anesthesiologist rate.
  • The requirement for insurance contracts with in-network facilities to include terms for those facilities to let patients know if some services at said facilities may be provided by out-of-network providers.
  • The prohibition of facility fees performed anywhere that the state can determine can be performed in a non-hospital setting, including for services not performed at a hospital’s main campus, remote main campus locations, or at a facility that includes an emergency department.

With more bipartisan support than concerns in the Senate Health Care Committee, the bill now goes to the Senate Finance Committee for consideration.

Upcoming Legislative Meetings

Tuesday, May 28

9:30 AM House: Session Convenes
9:30 AM Senate: Session Convenes
1:00 PM Senate: Commerce and Insurance

Wednesday, May 29

9:00 AM Senate: Agriculture, Energy, and Environment
15 Minutes After Session House: State Government
1:00 PM House: Agriculture
2:00 PM Senate: Judiciary
Immediately After Session House: Local Government

Thursday, May 30

9:00 AM House: Oversight and Reform

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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