August 20, 2007

The press has reported on the private athletic scholarships that were slipped into the conference report on the budget at the request of Senator Dannelly.  The News and Observer has editorialized against it (August 17, 2007).                                  

Now theNews and Observer reports (Under The Dome, August 17, 2007) that the Speaker believes the scholarship provision should have received a full airing instead of being dropped in the final budget.  “He doesn’t like the process” says his spokesman, Bill Holmes.

But the Speaker was not an observer of the process.  He was in charge.

I advised the Speaker and the House Democratic Leadership that if they tried to slip things into the budget in violation of House Rule 44(b) that I would raise that as a point of order.  Forewarned that I would do that, they slipped in dozens and dozens of items like this, some of much more importance, including an extra $400 million dollars of spending.

The audio of the point of order and the Speaker's ruling is transcribed below as well as a list of many of the special provisions involved.

Previously under the reign of Speaker Black the rules were generally ignored.  In 2007 the Rules of the House were generally followed, except with respect to the final budget in which the most important rule was obliterated, at great cost to the taxpayers.  

AUDIO TRANSCRIPT

Representative Paul Stam: Mr. Speaker, as I have advised the Chair that I would be raising this point of order, I would like to elaborate a little bit …  

I rise to the point of order that this bill violates Rule 44b and Rule 36.4 of the rules adopted by the House.  

44b says only such matters as are in difference between the two houses shall be considered by the conferees and the conference report shall deal only with such matters. Rule 36.4 deals with the content of appropriation bills.  

The bill before you, before us, contains many, many such items in contravention of the former rule and some in contravention of the latter rule. Just to mention a few: the making of the temporary taxes permanent; the increase in spending way beyond the amount set by either the House or Senate; adding an extra hour when people can drink in Charlotte at the Panthers’ games; extending JDIG (Job Development Investment Grants); adding additional tax provisions concerning sales tax and land transfer tax; outlaw Captive REITs and many many others. 

… Mr. Speaker, I call on the Chair as the Speaker of the whole House to enforce the rules adopted by the House.  

Speaker Joe Hackney: The Chair has carefully considered the point of order to be raised and the Chair believes that the bill complies with our rules and the point of order is overruled. 

And a summary of items added to the budget by the House and Senate conference committee that were not a part of either the House or Senate versions of the budget.

NEW SPECIAL PROVISIONS 
PROPOSED CONFERENCE COMMITTEE SUBSTITUTE 
FOR HOUSE BILL 1473 
 
PART VI. GENERAL PROVISIONS 
MODIFY HOURS OF SALE FOR PERMITTEES AUTHORIZED TO ENGAGE IN IN STAND SALES PURSUANT TO G.S. 18B 1009 
SECTION 6.25. 
 
PART VII. PUBLIC SCHOOLS 
USE OF FUNDS FOR CENTRAL CAROLINA COMMUNITY COLLEGE 
SECTION 8.13 
 
PART IX. UNIVERSITIES 
ESTABLISH THE JOHN B. MCLENDON LEADERSHIP AWARDS 
SECTION 9.18. 
 
PART X. DEPARTMENT OF HEALTH AND HUMAN SERVICES 
SKILLED NURSING FACILITY REIMBURSEMENT RATES 
SECTION 10.39A. 
 
PART XI. DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES 
STUDY STRUCTURE AND MANAGEMENT PRACTICES OF AGRICULTURAL RESEARCH STATIONS AND RESEARCH FARMS 
SECTION 11.4. 
 
PART XII. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES 
FUNDS FOR PENDING CIVIL LITIGATION EXPENSES 
SECTION 12.2A. 
 
STUDY ADVISABILITY OF ADDING DEEP RIVER STATE TRAIL TO STATE PARKS SYSTEM 
SECTION 12.9. 
 
PART XIII. DEPARTMENT OF COMMERCE 
TEMPORARY EXPANSION OF JDIG CAP 
SECTION 13.1A. 
 
FUNDS FOR LOCAL GOVERNMENT WATER AND SEWER IMPROVEMENT GRANTS 
SECTION 13.13A. 
 
E NC AUTHORITY/STAGGER COMMISSION MEMBERS TERMS 
SECTION 13.16A. 
 
PART XXI. DEPARTMENT OF CULTURAL RESOURCES 
GRANT IN AID FOR THE JEWISH HERITAGE FOUNDATION 
SECTION 21.3. 
 
PART XXVII. DEPARTMENT OF TRANSPORTATION 
INCREASE ADMINISTRATIVE APPROPRIATION FOR THE HIGHWAY TRUST FUND 
SECTION 27.17. 
 
DEPARTMENT OF TRANSPORTATION TO MAINTAIN DIVISION BUDGETS 
SECTION 27.18. 
 
VIPER BUILD OUT FUNDS 
SECTION 27.19. 
 
PART XXIX. CAPITAL APPROPRIATIONS. 
DISPOSITION OF PROCEEDS FROM SALE OF FORMER BUNCOMBE COUNTY HEADQUARTERS PARCEL 
SECTION 29.11A. 
 
LAND FOR TOMORROW AND WATERFRONT ACCESS AND MARINE INDUSTRY FUND 
SECTION 29.14. 
 
PART XXXI. TAX LAW CHANGES 
 
ENHANCE 529 PLAN INCOME TAX DEDUCTION 
SECTION 31.19. 
 
SALES TAX REFUND – RESEARCH SUPPLIES 
SECTION 31.20. 
 
WORK OPPORTUNITY TAX CREDIT 
SECTION 31.21. 
 
DATACENTER SALES TAX EXEMPTION 
SECTION 31.22. 
 
TAX INCENTIVE FOR RAILROAD INTERMODAL FACILITY 
SECTION 31.23. 
 
FIREFIGHTER/RESCUE SQUAD TAX DEDUCTION 
SECTION 31.24. 
 
OUTLAW CAPTIVE REITS 
SECTION 31.18 
 
PART OF STATE ASSUMPTION OF MEDICAID: 
MEDICAID HOLD HARMLESS PAYMENTS 
ADM EARMARKING ADJUSTMENTS FOR ONE YEAR STATE TAKEBACK OF LOCAL SALES TAX 
LOCAL OPTION TAXES: SALES TAX AND LAND TRANSFER TAX 
 
Source: Answer to Query by House Republican Leader Rep. Paul Stam (R-Wake) from 
Bill Drafting Staff: North Carolina General Assembly, July 27, 2007