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Senate | May 24, 2016 | Chamber | Senate Finance

Full MP3 Audio File

[BLANK_AUDIO] [SOUND] Meeting will come to order. Good afternoon and welcome to senate committee on Finance. Our sergeant at arms today, Dona Blake, Don,there you are, Don Blake, Charles Molalis/g, Francis Patterson, and Hull Roges/g . Thank you all. We have a litany of pages. Katy Match/g with a heart over the eye, from Charlotte, Senator Rucho, are you from Charlotte Katy are you from Mathews? >> From Mathews >> Good for you, [LAUGH] be proud of that fact. Louis Frank, Williton, Senator Barringer, J Grag, [INAUDIBLE] Holden Beach, Bill Raybern, is it sunshine yet in the beach today John, don't you wish you were there? Good. Benzy/g Jack, Cliffside. Senator Hise, you mountain boys grow up pretty well. Okay impressive, impressive Bradey Butler, Madison. Senator Berger, Benjamin Lee fairville, Senator Meredith, Julie Daniel Morganton, Senator Daniel, do I see a family resemblance and Brady Daniel yes, Morganton Senator Daniel. Welcome I hope you Enjoy your week here and we appreciate all the help that you give while you are here. We have one item that is going to be pulled from the calendar today ->> two >> two, that is senate 527 and senate Three. The 727 like the airplane. Okay and 803. All right >> [INAUDIBLE AUDIO] >>. Senator Tucker Becky, Senator Tucker senate bill 575. North Carolina, South Carolina original border of confirmation. Is their a PCS senator? >> Yes sir their is a PCS. >> Motion here the PCS by senator Alexander all in favor of the motion please say Aye >> Aye. >> Opposed. The motion carries in the PCS before the committee. Senator Tucker. >>Mr. Chairman and members, thank you so much this is kind of a monumental day for me and state of North Carolina and south Carolina. This bill has been in process for 20 years. Many senators have taken it and tried to work through all the. the Gary Thomson is here from state. And all the bill results is from a decade long process to settle the location of the boundary on North and South Carolina. Mr. John Mark will be an historian realized that over decades the boundaries that were recognized between the state, so rocks were used, trees were used, fence posts were used, and so they'd been degraded over the years. And so it was uncommon upon Mr Thompson and the state of North Carolina and South Carolina to use geo-dated technology to re-establish the border. And when they did, it impacted a number of people, we had extensive comment periods, stakeholders for years and years. And so this legislation has been designed to lessen the hardships on the affected properties. Now we have staff here that can explain the technical part of it, I'll just go over it where I was. We went down to Rock Hill and we had agreed to sing Kumbaya the two states together and all of a sudden, a gentleman in my favorite profession, an attorney, stepped up and said well I gotta have this, because I've got a land owner that's affected by that. And I asked him where he'd been for 20 years, and just got a little incensed by it but, he went to a representative in the state of South Carolina and held the bill up last year and that's fine he was doing what he needed to do for his client. But we took every step we could to not impact folks but there are let's see 19 homes that are impacted by establishing this boundary. Four businesses are impacted and the boundary goes through 54 homes and buildings. I would never had dreamed as a layman how technical and how litigious

this would get ,but we have taken into consideration out of state tuition. We've taken into consideration public schools and public school busing, we've taken into consideration whichever bedroom you sleep in if the boundary goes to the middle of your house you can vote in whichever state you wanna vote in, as long as you are in that bedroom. We've done utility extensions and we have worked with role fire protection districts in county fire protection districts and sewer districts. We have worked to get into environmental compliance as best as we could between North and South Carolina and so we've done almost everything we could. One step we took is we created an additional tax classification into article five of the constitution for properties that were affected by the board of correction and this was the design to allow business to continue to operate. What you have is a convenience store that sells beer and wine and off course South Carolina gas which is cheaper than North Carolina, and they also sell fireworks and if we had shut the business down the state would have been involved in what I believe to be in the attorneys here expensive litigation. So we made an exception for that business and I'll call upon Dan Edefal and Matt to explain those exceptions, but the process has not been perfect but we have done believe me folks everything we can to accommodate folks. And it all came down again to lawyers we had a meeting here what? A month ago maybe we ask all the title lawyers and all to come together and sit down and talk to us and get into agreement [INAUDIBLE] register deeds because we had free documents, and they didn't want it to impact what they had to do. So we accommodated them and the [INAUDIBLE] insurance folks actually Dan you correct me if I'm wrong wanted us if you buy a piece of property in North Carolina that was in South Carolina our position is that you get a clear title deed, is that correct? Clear title deed and not want the property all they way back to the king's document some 250 years is that right? >> Actually it's a pretty different way [INAUDIBLE] the quality of title as it stands in South Carolina would be given [INAUDIBLE] and credit within the state of North Carolina whatever the quality of that title is. >> Okay, all right as you can see we walked through some of the banks and [INAUDIBLE] insurance companies that had difficulty. I just kinda told them we're moving this bill after 20 years, and if you're gonna leave it up to me to make the decision then I'll make it, and we made it and we moving the bill. So it's my hope that I can urge you to support this bill and I'll be happy to try to answer any questions Mr. Chairman. >> Thank you Senator Tucker, any questions from the committee? >> Does any member of the committee want, okay Senator McKissick. >> First Senator Tucker let me thank you for your work on this, I can see you are spending a lot of time. >> Yes, sir. >> Was there any physical impact statement done to see what impact would have on the counties or the state? In terms of perhaps the realignment of the boarders. I assume it's probably nothing significant. But I was just curious as to what it look like or how many counties might be impacted on a state level. What impact would be. It's just really those counties on the border I don't recall a physical note we are talking about swat for property tax, were property tax. And in the case of the many more service stations whatever for united all had. He allows to the senate revenue. To South Carolina continue Dan, explain the tax classification. >> Going over the tax classification for the gas station specifically the gas stations affected by the board certification would be allowed to continue to charge basically the South Carolina They were remitted to the state of North Carolina, the revenue law study committee would annually look at the South Carolina rate to see if there have been adjustment if there had been one they would go up to whatever the rate was. The difference in taxes between the North Carolina and South Carolina rate would be treated as the third tax is a kindle what we do with a present use value property. And they would continue to exist that way until the gas station was transferred to a new owner,

it would be a three year look back with a cap equal to the tax value of the property. >> Senator Mckissick what he said >> Quick follow up >> We anticipate there will be a minimal or insignificant, yes. >> Inconsequential what it gets down to but if a new owner came along you would not continue with the same methodologies is that what you are saying? >> That's correct once the owner who went into buying or building the property with the intent of being able to utilize it as a South Carolina business and be taxed as a South Carolina business left the business. And a new owner came in knowing that it was a North Carolina business they be treated accordingly. >> Treated according, okay again thank you then we can actually see a significant impact but I don't know. >> And again we done everything we could to not impact the property owners as much as we can. We got a business right through my county and split the middle of the business as I mean we done everything we can. In fact some of the answers I've had to be no because we couldn't come up with anything to accommodate them, so we'd ask that you move forward with the bill. >> Probably a time make that recommendation for favorable report. >> Thank you sir >> Thank you any one any further question or comment, hearing none we have a motion which will favor the report of the PCS unfavorable to the original, all those in favor please say aye >> Aye >> opposed No, motion carried, thank you Senator Tucker you have another bill >> Yes sir I do. >> Would you like to do that while you. >> Yes sir I'm here I'll be glad to do that >> Senate Bill 774 Senator Marvin, the annotation, and we have PCS on that we are all set. >> Yeah we have a PCS as well. >> The motion for PCS, Senator [INAUDIBLE] all those in favor please say aye >> Aye >> opposed No, the motion carries TCS before the committee. May I go ahead Mr. Chair >> Yes Sir. >> Yes sir. Okay thank you. Just I will do this with memory I don't have notes with me, we have a rail road is a four rail road going from Mecklenburg in the Union county. Is kind of the gateway into union county. And on the right side of the road we have 26 acres of land, and the property that's in question, six acres of the 26 acres is in the village of Marvin, and the balance of it between 20 acres is in the county. The village of Marvin has restrictive zoning setbacks which would not bring through the true value of developing a property. And since 90% of the property is in Union county which has less restrictive zoning and the fact that the six Six acres that we are DNXsing, four is in the flood plain, so actually DNXing two usable acres into the county, so that the land can be developed as the high end commercial retail area where a mile down the road in the Macklenburg county all our folks that live in Union center forward go to 131 main and all those restaurants in [INAUDIBLE] green and valentines spend their sales tax dollars, this is an opportunity for use to have a nice look in development at the gateway of Union County. Now I will tell you that the village of Marvin is adamantly oppose to the Annex in these two acres. But it does not Impact any donor or anything internally to the corporate limits of the village in [UNKNOWN] Is right on the edge, access on the edge of a flood plain. So I've requested and it passed state and local unanimously to DNX the two acres, so I'll ask for your support on this >> Thank you Thank you Senator Tucker. Questions, comments from the committee? >> Mr. Chair >> I've been through this once today, yes - >> I just have one - >> I would expect that thank you - >> Yeah just got one - >> Yes mum >> One addition or call from Wellington >> Mm-hm >> And in Fortway/g at Novena/g the town that is involved in this but there They're adjourn in town and therefore concerned, say in what way will this affect the text base there in Marvin as a result of this >> Well, it's an developed property so it won't impact there one and half percent tax rate. The town of Marvin Doesn't provide water and sewer county inspection, we have 14 municipalities in Union county some of them as you fondly chastise me about are called paper towns, they have borders, they have a mayor council of government, they have a planning board and its own director They rent one deputy from the county so as far as impact in tax base, Senator it would be minimal Wellington Square I started my political career the fear of Charlotte coming across the border

and annexing into Union County was impedance that formed the City of Wellington in 1983 It has no impact on the city of wellington. >> Okay thank you >> Yes Ma'am thank you >> Senator Ford would like chain in? >> You smiling come on >> No thank you sir >> Thank you >> Since this is the annexation is there any member of the public that would like to comment For or against. Okay hearing none. [INAUDIBLE] We have a motion by Senator for Hise for a favorable report on the TSC unfavorable to the original. All those in favor please say Aye. >> Aye. >> Oppose No. The Ayes have it, thank you Senator Tucker, thank you Mr chairman and members of the committee [INAUDIBLE] >> Okay town of Rolesville annexation. Senator Barefoot [BLANK_AUDIO] Senator Barefoot you have the floor. >> Thank you Mr chairman, this bill comes to you already being approved by our state and local government committee, the town of has a Rolesville new bypass and a new high school that's located on the other side of the bypass, they would simply like to annex the road for the purpose of delivering City services such as EMS5 and police and establish some side walks that where students are currently walking on the street is unanimous request from the town of Rolesville and ask for your spot. >> Thank you senator, Senator Hise. >> Just to check this annex and state property. You said the road. >> That's right. >> Okay. We have a motion for favorable report on the co chair of state and local government, Senator Davis. All of those in favor please say Aye. >> Aye. >> Oppose no, the Ayes have it. Thank you senator Barefoot The last Bill we're here today is house bill 1023, Municipal service district statutory changes. Representative Wade and Senator Davis is in it the way. We'll tell about it if we switch [INAUDIBLE] >> Go ahead. >> You have the floor sir. >> Thank you Mr.Chairman thankful now and the bill will be heard today. The bill before you came out as a recommendation from the committee on municipal service district which was part of the legislative research commission during the interim. Signed a treaty way on our co-chairs or that committee And what we did is we looked at the Municipal service district legislation that's in effect now and looked to see if there are any changes that might needed to be made and out of that there were some changes made and I will go through very briefly with you. One of the main changes was to require An Audit, an annual audit in the service district which we thought was very important for transparency and accountability, so that the people in a particular district will be able to know how the money that they're paying for has been spent. If it is being spent for the proper purpose. The present legislation allows a municipality to Form a service district, what we added was to allow individuals who might want to petition the city to go forward with the municipal service district. And so the legislation does allow that process to take place. So now not only can a municipality on their own Proceed with a municipal service district a group of individuals that are liked to be part of one can actually come and petition the city council to be a member of one. Under the present legislation it only requires one meeting of the municipality because it was a resolution. We Felt like if it would be better if we have two readings or two votes on a minute will serve as district, that would allow those that might not or have had notice of it being only of gender, didn't counter the first meeting or someone would just not able into call. So that would allow more input from the public So by making it two means it would no longer be a resolution that why is now an ordinance, simply because of the fact of the two meetings.The meetings vote will be by a majority of those members that are present therefore if it comes up and you'll have a public hearing and so if after the public hearing on the first vote it doesn't pay us, from majority is over If on the first vote it does pass by a majority, you'll have a time period and then you'll have a second hearing. Another thing that we added was someone that comes in after the public hearing and says,

well you now I don't want you to create this Municipal service district, I don't think it's necessary, but if you Do it then I want you to consider allowing me to be excluded. And as a burden that the city has to meet, to allow a municipal service district to be implemented that same burden applies to someone who is coming in and saying I don't wanna be part of it. But what it does, it allows on funny end, someone individually Come in and have the opportunity to object to being part of the municipal service district on an individual basis. Separate apart from all [INAUDIBLE] basis. What this also does is allow somebody on the back end. Once the municipal service district has been created it allows someone in that municipal service district to be Be able to come to the municipality and say, hey I'm not benefiting from this anymore, I don't think I should be allowed to stay under, I want out, so once again if they can leave their burden after the fact then the city or can if they want to allow the person to withdraw, but please remember All of this lease it up to the municipality, [INAUDIBLE] may create a municipal service district, and a municipality may allow somebody to withdraw from that district, and once again for a majority of the vote from that body and soon [INAUDIBLE] I believe that was All the highlights if there is anything else you can think of I wanna find Senator Wade .I thought we did a work very well together we had great committee meetings, we really looked into this in depth we had people coming from historic district, beach rasian district, urban Downtown revitalization come in and have input during this committee meeting I hope you'll get a favorable report [INAUDIBLE] senator do you have anything to weigh in. >> It pulsate micro government unanimously and at the [INAUDIBLE] is exactly The same wanted to run the house bill [INAUDIBLE] sorry going through the house, and the [INAUDIBLE] municipalities are was in favor and I know of no opposition. >> Thank you senator now Senator Tillman your turn. >> I was simply going to try to get to Senator Wade to understand and I want her to hear her The house member here representative Davis did a tremendous job but anyway he rung a little bit out of me I wanna hear you extrapolate on this bill. >> Quite well from Senator Tillman. >> Any members questions or comments on the bill? Being none we'll entertain A motion, Senator [INAUDIBLE] move for favorable motion favorable report, all those in favor of the motion please say aye. >> Ay.e >> Opposed no, motion carries, [CROSSTALK] Thank you all ladies and gentlemen we have one thing before we adjourn. I would remind everyone that tomorrow at 1 O'clock and this room 5:44 we will have a finance meeting to discuss market based sourcing, and to clarify the state sales tax. All members of the senate are invited and all members of the house are invited as well. So this is an important meetings we will not be voting but I would like the attention, and the attendance everyone to discuss those two items in place. Thank you and we're adjourned.