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Senate | February 26, 2013 | Chamber | Session

Full MP3 Audio File

[Speaker changes.] (Gavel.) Senate will come to order. Sargent-at-arms will close the doors. Members go to their seats. Members and guests of the gallery will please silence all electronic devices. Leading the Senate in prayer is the Reverend Peter Milner???, Senate Chaplain. All members and guests in the gallery will please stand. Let us pray. Lord, you're good. You're are God. You're everlasting, you reign forever. You're our hope, you're our deliverer. You don't faint, you don't grow weary. You are the defender of the weak. You comfort those in need. You lift us up on wings like eagles. Thank you. From everlasting to everlasting, you're God. We wait upon you, Lord, now to give us strength. You are our deliverer, our hope, our redeemer, Amen. [Speaker changes.] Senator Berger is recognized for a motion. [Speaker changes.] Thank you, Mister President. The journal of Monday, February 25, 2013, has been examined and is found to be correct. I move that we dispense with the reading of the journal and that it stand approved as written. [Speaker changes.] Without objection, the journal for February 25th stands approved as written. Leaves of absence are granted for Senators Hartsell and Bryant. Senators, we have ... we have a few courtesies here. Upon the motion of Senator Phil Berger of Rockingham County, the Chair is happy to extend courtesies to the North Carolina Association of Registers of Deeds; Lee Warren??? Register of Deeds of Cumberland County brings with him about seventy elected Registers of Deeds, their spouses and their staff. If you're with us today, please stand so you can be recognized. When you see them today, please recognize them. Upon the motion of Senator Nesbitt of Buncombe County, the Chair is happy to extend courtesies to the Board Members, Volunteers and Staff from non-profits from every region of North Carolina who have come to Raleigh today to remind us that non-profits enrich the lives of North Carolinians in all one hundred counties, provide more that 425,000 jobs in North Carolina and contribute thirty-eight billion dollars a year to the state's economy. Do we have any of those folks with us in the gallery today? Thank you so much for being with us. (Applause.) Upon the motion of Senator Chad Barefoot of Wake County, the Chair is happy to extend courtesies to his wife, Page Barefoot and their new son, Franklin Barefoot, and Franklin's grandparents, John and Jan Rodgers????? Are you with us today? There they are. Please stand and thank you. (Applause.) Thanks for being with us today. Reports of standing committees. [Speaker changes.] Mister President? [Speaker changes.] Senator Allran, for what purpose do you rise? [Speaker changes.] To send forward a committee report. [Speaker changes.] Senator Allran, you can send forward your committee report. Do we have a Page to bring this committee report forward? Thank you. Clerk'll read. [Speaker changes.] Senator Allran for Judiciary Two Committee submits for passage House Bill 19, ?????? and Fallen Heroes, favorable; Senate Bill 70, ???? the law, increase child abuse penalties, also favorable; [Speaker changes.] House Bill 19, calendar: Senate Bill 70, Appropriations based budget. Senator Davis, for what purpose do you rise? [Speaker changes.] Thank you, Mister President. Send forth a committee report? [Speaker changes.] Senator Davis, you can send forth your committee report. Do we have any Pages? Our Pages? If we can grab committee reports and bring them forward please. Thank you. Clerk'll read. [Speaker changes.] Senator Davis for the State and Local Government Committee submits for passage Senate Bill 95, favor city elections... [Speaker changes.]

?? [SPEAKER CHANGES] Senate Bill 95 calendar. Senator Meredith for what purpose do you rise? [SPEAKER CHANGES] Mr. President, to send forth committee report. [SPEAKER CHANGES] Senator, you can send forth your committee report. [SPEAKER CHANGES] Pages, we have another committee report. Right over here, with Senator Meredith. Clerk will read. [SPEAKER CHANGES] Senator Meredith of the Commerce Committee submits to passage Senate Bill 43, study savings for administration of claims favorable. Senate Bill 44, unfavorable as to bill but favorable as to committee, substitute bill. Workers compensation is covered public records. Senate bill 51, DBICC workers comp program, unfavorable as to bill but favorable as to committee, substitute bill. Senate bill 71, unfavorable as to bill but favorable as to committee, substitute bill. Amend immigration contracts with license law. [SPEAKER CHANGES] Senate bill 43, Senate bill 44, Senate bill 51, calendar. Senate bill 71, finance. Senators will move into the calendar now with public bills second reading. Senate bill 16, the clerk will read. [SPEAKER CHANGES] Senate bill 16, revoke license for passing stopped school bus. [SPEAKER CHANGES] Senator ?? is recognized to explain the bill. [SPEAKER CHANGES] Thank you Mr. President, this was heard in J2, and it was very well vetted, we had an amendment that changed this bill. Initially, it was a 6 month revocation of your driving license, we scaled that back to 30 days and then there was a few other changes but it seemed to be unanimous and I would urge for your support. Just a note to indicate to you the seriousness of this, in '98 until 2012 we have passed over bills and laws relative to passing stopped school buses in increasing importance etc. But the number of incidents of passing stopped school buses has escalated. In 2012, 647,500 vehicles passed stopped school buses. That indicates the seriousness of this and this will just be hopefully a wake up call and we'll begin to reduce the incidents of this and there's been several children killed. This will give the opportunity for schools to put cameras on these school buses. One of my colleagues in the senate, Senator Tucker, had mentioned to me an organization involving county where they're presently putting cameras on school buses and they have gotten several convictions. Senator Tucker, I appreciated the information, I've shared that with some of the other districts and they're very interested. I know of no opposition to this and I would urge your support and be happy to answer any questions, Mr. President. [SPEAKER CHANGES] Thank you, Senator. Is there any further discussion or debate? Hearing none, the question for the Senate is the passage of the committee's substitute to senate bill 16 on its second reading. All in favor will vote aye, opposed will vote no, five seconds will be allowed for the voting and the clerk will record the vote. 48 having voted in the affirmative and 0 voting in the negative, committee substitute senate bill 16 passes its second reading without objection, will be read a third time. [SPEAKER CHANGES] North Carolina general assembly enacts. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, all in favor of the passage of the committee's substitute senate bill 16 on its third reading will say aye. Opposed no. The ayes have it and committee's substitute senate bill 16 passes third reading and will be sent to the House. Senate bill 76, clerk will read. [SPEAKER CHANGES] Senate bill 76, Domestic Energy Jobs Act. [SPEAKER CHANGES] Senator Newton is recognized to explain the bill. [SPEAKER CHANGES] Thank you, Mr. President.

Representative: …this is a.. the cord is a little short – we will figure that out later on. My colleagues, it is my pleasure to stand here before you today and talk about this very important jobs act. NC needs job and America needs energy. It is the reason we have put this legislation together. In the face of this high employment and soaring energy prices, this is why we need to move forward with this bill. NC needs a vibrant energy sector, and we need this economic development. Why do we have this bill? What does it do? Well, it does a number of key things. Many of you that were here before – remember when we passed legislation last session for senate bill 820, which brought NC forward and started to move us forward in the energy business. It developed our natural gas resources. Many people do not realized that there is great potential here in NC. There are estimates that as much as 42 trillion cubic feet of natural gas under our feet here in NC. Now what does 42 trillion cubic feet mean? Well, let me give you an example. This is comparable to the [xx] in TX. This is as large, or larger, than the [xx] in AR. This is a significant amount of gas, of energy for this state. A significant amount of economic development potential for our state: thousands of jobs. So what does this bill do? It continues the work we did on senate bill 820. What it does is set a firm date, let me rephrase that. It sets a clear time frame of when the moratorium for hydraulic fracturing will be lifted in NC. This date comes almost 5 months after the department of environmental resources is required and mandated issued our rules and regulations – five months. We started this in 2011 and it would authorize permits to be used March 1, 2015. That is not a very quick pace, but a deliberate and important pace. Why do we need to set this pace? I will tell you why: because the industry – the energy industry will not come to NC and invest all the time and resources to build this unless they know the moratorium is going to be lifted. They learned a very hard lesson in NY, where they have a nonending moratorium, after they invested millions of dollars. If we want them to come sooner than later, we have to set the stage and now and make sure they understand that we want them to come here, and we want them to invest here, and create jobs here. That is the first and main thing that this bill does. The second thing it does is set the severance tax. What is the tax going to be on this energy? This is a very important component on this bill as well. What we have done is created a low initial tax that gradually increases over time. If you look at the bill, you will see that the first two years: 2015. 2016, 2017, the effective tax rate will be 1%, and I will explain as to how we got these numbers. After 2017, 2018, 2019, it would be 2.5%, and 2020, it would be a floating tax rate, ranging between 6- 2.5 %. That tax would depend – that price would depend on what the price was per MCF, per cubic feet, which is the unit you use. Let me shorthand this and tell you what it means: if the price is $3 per MCF, essentially, the tax rate will be 3% per MCF. The industry thought that was very good because it keeps them moving forward and producing, even when prices are very low, like they currently are. So that is an important piece of this legislation. What are some of the other things we do? In addition to tax rate, we provide additional monies to the mining and energy commission to move forward to

develop the rules and regulations that are necessary for this to go forward. And we encourage the governor, which he's already doing, very pleased to see, we encourage the governor to go ahead and move forward on offshore production, and working with the states to the north and south, South Carolina and Virginia, and go ahead and try to work with the Federal government to develop our offshore resources. North Carolina has largest area of offshore that's available, I think it's some 64,000,000 acres. Consensus believes that its rich in natural gas, and we hope that that will move forward. Let me put a little bit of this in perspective. If this state had moved forward six or seven years ago, we would've had these thousands of jobs, and we would've had this investment, and this energy sector would have been created in this state, and we would've had all of that during this recession. Our $2.5 billion shortfall that we had in the last session wouldn't have been quite so bad. Our economy would have been moving, and we wouldn't have had unemployment rates at 9%. That's the reality. If we sit back and continue to say, let's wait a little longer, let's drag this out a little bit more, all we're doing is pushing the jobs and the economic development further down the road. Let me put a more fine point on this. I just read an article from the Houston chronicle in the Sunday Paper. And it talks about an area in Texas, where the ?? is, called Carns county, which is a very rural county in Texas. That was a struggling county. And the headline reads, shale play turns Carns county around. At think what's important for folks to realize is that Carns county is probably a lot like Lee county, and some of the other counties in our state, which we believe has tremendous shale gas potential. In the month of November alone, more than $70,000,000 was paid out to the various landowners, and royalties for the natural gas that was being brought out of the ground in Carns county. $70,000,000 in one month. I don't know what the amount is for the year. I don't know what the amount will be for the two, or three or four years. But I know that in my home county, if there was shale gas. I wish there was. $70,000,000 a month is quite an economic impact. That's what this bill is about. Now, at this time, I have an amendment that I would like to send forward. Mr. President, it should be on the desk already. [SPEAKER CHANGES] Thank you, senator. You can send forward your amendment. The clerk will read. [SPEAKER CHANGES] Senator Newton moves to amend the bill. [SPEAKER CHANGES] Senator Newton, you can explain your amendment. [SPEAKER CHANGES] Thank you, Mr. President. Colleagues, this is a purely technical amendment. The staff advised me that this was eliminating some redundant language, and if you have any questions about it other than that, I'm gonna have to refer to staff, but they encouraged me to run this amendment. Thank you, Mr. President. [SPEAKER CHANGES] Thank you, senator. Is there any further discussion or debate on amendment one? Hearing none, the question before the senate is the passage of amendment one. All in favor will vote aye. Opposed will vote no. Five seconds will be allowed for the voting, and the clerk will record the vote. Kinnaird aired, I. Nesbitt, I. Jenkins, not here. 47 having voted in the affirmative and zero in the negative, amendment one is adopted, and that bill has amended is back before us. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] ?? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Yes, senator Barringer, for what purpose do you arise? [SPEAKER CHANGES] To offer an amendment. [SPEAKER CHANGES] Do the members have copies? [SPEAKER CHANGES] No, they do not. [SPEAKER CHANGES] Can you get those distributed? Pages, please. [SPEAKER CHANGES] Yes.

All the members now have copies that have been distributed.And members for your viewing pleasure, the memos are on the dashboard as well so you can look at your dashboard or look at your paper as we move our self into the 21 st century ?? the coco vein [SPEAKER CHANGES] and the bag of most amended bill [SPEAKER CHANGES] ?? recognize as ?? [SPEAKER CHANGES] thank you very much.With respect to senator bill 76 i joined senator newton and other sponsors too to positively endorse this bill with my amendment, the amendment to senator bill 76 that i offered will further pretend the surface and also our environment by clarifying bonding requirements associated with the or-lean gas activities that will carry in north Carolina. As a point of history the first bill the primary bill you have before you that stand before any drilling occurs before there is any drilling exploration. The developer that is required to register with the department and energy and natural resources also point of historical significance is that senate bill A20 actually talks about and actually provides further bonding in the three different kinds of bonding in senate bill A20 .The one that i am concerned about in the one that is before you in traded in this amendment relates to the bonding that goes to the surface owners of the properties .What this amendments provide is that it instructs the mining and energy commission to set rules based on a minimum criteria any any additional criteria they they may see fit including the number of wills that will be on the surface owners properties that pee-drilling drilling condition of the property that ackrage that will be affected by the drilling and again any other factors on a case by case side by side basis that would be necessary for a proper bonding ?? .In addition it states and the current offering of the bill of that who will set that bond and that bond would also be set by the mining and energy commission consist with the rules that it would promo gate and based on information provide by the developer regarding

doesn't abandon the project in the middle of the way. There's the bond that goes in favor of the state in case there's a problem with the well, some sort of accident or something, and now there's the bond that Sen. Barringer's- this amendment addresses, benefits the surface owner. In addition to that, there's $10 million as you read the bill that's set aside to deal with any issues that may occur, so that it's important for the public to understand that the purpose of this amendment is to clarify the surface owner's rights as it relates to the bond. I think it's an excellent amendment, and I commend it to you. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Sen. Stein, for what purpose do you rise? [SPEAKER CHANGES] To see if the amendment sponsor will yield to a question? [SPEAKER CHANGES] Sen. Barringer, will you yield for a question? [SPEAKER CHANGES] Yes I will. [SPEAKER CHANGES] She yields, you can ask your question Senator. [SPEAKER CHANGES] Thank you. So in the current- I just want to make sure I understand- the current bill there isn't a bonding requirement as it relates to- it's in the name of the current property owner? [SPEAKER CHANGES] May I address that sir? [SPEAKER CHANGES] Yes you can, Senator. [SPEAKER CHANGES] There is a requirement, but this actually clarifies what the requirement is. The bill just says, the original bill says that there shall be a bond for reclamation in favor of the surface owner, but it does not say who will set the bond, it also gives no criteria for the bond, and that concerns me as a owner of a farm myself, unfortunately not having any of the oil or gas opportunities, but it does give me concern because we do need to know who's going to be setting it, at what criteria that would be based, and also an appeals process if that surface owner is not satisfied with the original amount of the bond. [SPEAKER CHANGES] Follow up question? [SPEAKER CHANGES] Senator, do you yield for a follow up question? [SPEAKER CHANGES] I do. [SPEAKER CHANGES] She yields, you have the floor Senator. [SPEAKER CHANGES] Thank you. Does either the original bill or your amendment set a minimum bond amount? [SPEAKER CHANGES] No it does not. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Thank you Senator. Any further discussion or debate? Sen. Ford, for what purpose do you rise? [SPEAKER CHANGES] Mr. President, to ask the member a question. [SPEAKER CHANGES] Sen. Barringer, do you yield for a question. [SPEAKER CHANGES] I do sir. [SPEAKER CHANGES] She yields, Sen. Ford you have the floor for your question. [SPEAKER CHANGES] Thank you Mr. President. Do any of the three of the bonds that were mentioned in this discussion cover the roads? [SPEAKER CHANGES] I would like to ask Sen. Newton for help because I do know that the reclamation bond with respect to the surface owners does not, because it relates specifically to the surface owner's properties, the amount of- the number of wells, the acreage involved with their property. I am not aware of the road situation, may I ask Sen. Newton to assist me with this? [SPEAKER CHANGES] Sen. Newton, you have the floor. [SPEAKER CHANGES] Yes I would yield for a question. DOT already has bonding authority for that, Senator. [SPEAKER CHANGES] Thank you Senator. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Is there any further discussion or debate? Hearing none, [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Sen. Clark, for what purpose do you rise? [SPEAKER CHANGES] Mr. President, I rise to send forth an amendment. [SPEAKER CHANGES] Senator, we're still voting on amendment 2, so we have to do that first. Is there any further discussion or debate on amendment 2? Hearing none, the question before the Senate is the passage of amendment 2, all in favor will vote "aye", opposed will vote "no", five seconds will be allowed for the voting and the clerk will record the vote. 47 having voted in the affirmative- Oh. Apodaca, "aye". 48 having voted in the affirmative and 0 in the negative, amendment 2 is adopted and the bill as amended is back before us. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Sen. McKissick, for what purpose do you rise? [SPEAKER CHANGES] To speak on the bill. [SPEAKER CHANGES] Senator, you have the floor to speak on the bill. [SPEAKER CHANGES] I'd like to first say what when this bill passed about a year ago, dealing with fracking here in North Carolina, it was a balancing of lots of competing interests and it only survived the House vote by about 1 vote, in the final analysis a veto was conducted by the Governor. There were many communications had between members of the Senate and members of the House that allowed the legislation to come forth. There were many people who placed their votes on the line because of representations and commitments that were made. Many of those representations and commitments that were made are being undone with this current legislation. And that gives me some concern, because I don't think that it's a very good precedent for conducting business in many instances. I think that

key to good use of a state where of this bill ??-centered on-the concern of the-street China have been split into the welfare and remove sediment-status, and then came about when the team and 1/2-life of me and having them honestly it is from seven-tile of the president has the right to the businesses involved on we have the time comes for the Kings Entertainment content whalers when I heard someone say open only to protection that was the snaps to believe in the top we even fewer than 70 people ?? would have to manage the informs me, that much about the civil rights in U.S. women (SPEAKER CHANGES) and people are negotiating with them of apple china's state for people that the chief of the section division last year and not as each requirement in your district did not indicate what we have a need for this central to the injected into the air of the nations of the large, smacking process we know I'm a lesbian on these properties of the-art facility small-time we're down to the killing those visions that is the deep concern ?? we still had four starters, some of the kind of regulation times in the movies, some idea-order that contain with the defense's different companies use a different measure fateful of some $10,000 me to a lack of coordination that I'm doing something I have reasonable rules and regulations taken the case we also have the time he's the only established that have some people serving as part of the ?? of SNA-these issues, but it's important for us to specifically resented his studies at the department that housing that U.S. forces the people-please-interstate two-party that with the feeling that we're giving you some people have the same time, this process you to we need to treat carefully when we are making the sort of wholesale revisions we have a chemical study after being used as props rile me the causes that because of the man from family to the implications of defending the owners live from the time is Wells in the Home Centers is the initial areas where evident in 1974 is reflecting it be great to have SKG honest people more time on 18, 20 years for sustained and parties commissions working in these rules are being used at trial it be great to take things work on the street and conservatively as screen for hiking near North Carolina was any time the sole standard, but numbers in the upcoming cracking it because of a sudden he's only been one of them, factoring back of the deal: the commerce drive into the weekend in taking into account the council including the A's the agency here is charged with regulating the syntax of their ?? education, as long weekend, taxes dryly and faxing 90 visit, Texas into this and other hand, some information which by default taxes of me as I meant to be happier we'll have a decline with the team faces when they come up with a score the more times this is a long, that's what the influence is not included in the long time. And this happens to us at the end of the idea that they're and made history as these events were we, we have a digital products, Texas law China to be careful where, in Las Vegas these are using as a base in Ohio nature and when using all reason to call and that's the idea that a smart and three other ?? ??........

?? ?? care that when then Ica of NT taxes levied its inaugural line with the activities in the serial Caroline ?? they are using a reason to their events wedding present some of the city would be sexually and United States: added, driving them user in case the company had these out-icing they are listed, of facts less than 400 syndicate Sunday night as Ms. Miller, the land of time in with Nis important evidence. The center's centers to help ease the event of a rivalry Sundays in the comment that this decision in the hills is the components, like its mission that has the backing wasteland in transferring some advocates and some are these people 101-TV 12 data to the sake of the meantime, people on nights we elected 19 days is an overall and it goes back and says it will essentially time, people haven't won U.S. forces of evil men were noncommittal, resented our state geologist, has been which time the varsity status as the year ago as he returns as the women more because the ?? action infection influence employees here of these chemicals were to begin lines would like to deal with the result of Salinas time during altruism only 50% 1980, AltaVista Company was one of the ticker sites ?? well, this presidency with chemicals intent of 60 levels it could be a stronger and colorful you can simply have not seen it come back to the recall from store to examine the time of the tormented with the last year's levels and middle ages the develop into a costly onset and riled NT Jim of session data center was arrested in advance and in the first and that is fast, playfully, such as the times of the city's issues already an as- a performance that would rile me a call to be injected are already on the Dea and others commission has informed me that all his home and this isn't a refined in the nation, and the kinds of the finances can be returned via anti-sprawl, and for the delay, questioned wilson's what this is the safest way to dispose of the investment back, the firefight 1000 people who wanted it has the necessary time is up to the clients in a strange and have a role, but, send the message when I'm off dispensation and if this year, said the handsome time the situation has been a six- whisper that happens so dollars into this edition of ?? -session that some original former Xerox onto the time he and ceo, said that the distance, which some consider question that I did see this as a got any other trial of the end of the scenes and listed in stable, its identity of the reform of individuals and sign of lenin's greatest regret we created last year specifically in this particular time items, invasive wee Reese ends of everything we do that and then return to the ball in the city with a major all commuters the time I have a greater share of the administration's will become obsolete ??.........

care for the rest of the SMS servers are insecure for the latest in a day in other states can the United States eight years old and in registry time of his up seven to 01 am not aware of the dead-end sub-doing something to protect consumers more stable and restores the humidity pioneers in a time of making certain that they're not victimized by unscrupulous individuals in may, London and take advantage of your lack of knowledge of the day-a-vis-a-plus innings as the best movies, seven, when the DS time as the U.N. to discredit center, the final question sentence Edison test for you should have done that in the industry's anywhere in the country is still missing from time and end the need for ms-DOS collection, that there are some civil penalties to guess whether he's a three level trial companies that have read this. But many other companies are needed just 80 and the soul of MSN and the protection of the timeout and sell their own, as he submitted his advantage of it is in high season Sunday, through the secretary of state's office in other ways of doing a ?? centers in the National Semiconductor questions may also has constructed questions and share this time as a follow-up question that on the other two are considered behalf of the U.S. and Soviet-era center on ?? -as-yet-to-life time-this-the descendants of activities is appealing the state of the time that is the ex-husband, after the fact is the wave of these components from getting some of his support behind the estate needed include copies of worst in the wake of the time of the tactical in a meeting with nationalistic people there a business and I've indicated the sad time original for the just-say that if anybody is detected, and statewide estimates of one that, with me at these, about all these protections and many as 200-some-winning pass legislation Sunday comes to being on vital and on valuable time of the day the same products into this and that, he maintains some possible investment in hearing what he's trying to use when a film style at these events and, as a senate-house about one-half of the data that we suspect in the mall for a class, so one-even if it's an acting times residents any rate, returned to the counts of this- seven, which invests in-the - renowned ?? says to them, sentiments of Congress and ?? ?? chimes ?? ?? , not to that the 2-6 points as the as-Tass in our office, one of the land and one for me, is as one of the tough as it was an appropriation accidentally let it all this does is take that out of time staying home page one -20 to 23 which is required lines of the health information on these two and 117 to 14, leaving those lines with the state of the times-news for the surface session that senator ??.............

the time-sponsor of the information seven-cent Addison street, and I said Russia and the movie-in the city's 22 thousands of dollars in times, the state to the end of times, the defense of student surface-time U.S. has frozen as the first U.S. has said that after the deal for questions and not enough for us this summer that in some time for Davis-set that has taken steps to demand with miniature matter for the time that one, that certainly has some of his 33rd fighter ace and that the ?? to find out a small, and many, many of them his knowledge of the amendment that would get it is not interested in, say, from the edge at a time served as it was announced today, seven to that of superior for students of two and one of my sense is just one and 9-1 meeting time I have acted the system until still been the last year's reasonable protection service majority as well as in a majority in the house foreign subsidiary and the coveted by the same time as politics as the sons of former Xerox, said that all men are from the day that an anticipated, 17, and that, the cost report are sent a ?? excess cash and a that man has the same time, several of them hi all-too-to-four record ?? than the six-inch panels and as a metaphor is a time and only fails in the last minute span of one is that sometimes just as well as victims of the event is due to the lesson for them and sentenced into the home and contact in the ?? into further depress the price of a spokesman for the force of reasons because of the specified these weapons ban of some states economic growth in state of semi-see the state's ?? and adolescent estate assets enforcement of center seven, zero and has some time the center for comment said-that times are hard-to-be it, is that the surgeon and I'm Ina and this one-10th that-that's-to-head, the commission Republic of time the sense that this was the highest and best use business under- chai members of the message of its past and have some issues and members of the CDs with extensive business machines as the time the democrats alike, but if so, and then to the one where he's from this and the specifics, said it added that the times news headlines and have them from USC and CDs to drive to the DNC, the senses that have been as effective as it is saying and Seagate's other times the size of the event-and-as-spirits , was that must have happened that within 10 days, the content of that China has a soon-to-the-scenes maneuvers it has a happy time of issuance-still says the fire that sent to see ?? ?? ……………………

to the amendment, simply it pares the pool of qualified candidates to anyone in the state with particular experience in air, and water pollution, and waste management, rather than limiting the premise to a small pool of members of only 2 existing commissions. [SPEAKER CHANGES]Thank you Senator. Is there any further discussion or debate? Senator Newton, for what purpose do you rise? [SPEAKER CHANGES]To speak to the amendment. [SPEAKER CHANGES]Senator, you have the floor to speak to the amendment. [SPEAKER CHANGES]Thank you, Mr. President. Thank you Senator Clark, I appreciate your amendment. I think this is an improvement. We want to expand the pool of applicants to us, and this amendment preserves those qualifications on that board, and I think it's a good move, and I commend it to you. [SPEAKER CHANGES]Thank you Senator. Any further discussion or debate. Hearing none, the question before the Senate is the passage of Amendment 5. All in favor vote aye, opposed will vote no. 5 seconds will be allowed for the voting. The clerk will record the vote. 45 having voted in the affirmative, and 3 in the negative, Amendment 5 is adopted and the bill is back before the body. Any further discussion or debate. [SPEAKER CHANGES]Mr. President. [SPEAKER CHANGES]Senator Walter, for what purpose do you rise. [SPEAKER CHANGES]To proffer an amendment. [SPEAKER CHANGES]Senator, do the members have copies of your amendment. [SPEAKER CHANGES]Yes sir, I believe they do. [SPEAKER CHANGES]Then you can send forth your amendment, the clerk will read. [SPEAKER CHANGES]Senator Walters moves to amend the bill. [SPEAKER CHANGES]Senator Walter, you're welcome to explain the amendment. Thank you Mr. President. Folks around the room today, I guess most of us are old enough to remember the old Popeye cartoon, and you remember one of the characters, burger today. This bill, holding respect to the sponsors and supporters feels a lot like Whimpy to me. We're asking that we accept this bill with payment to the residents, particularly of Lean, Moor, Chatham, Wake, Durham, Granville Counties, 10, 20, or 30 years down the road. We're asking those local governments in those 6 counties to bear a lot the costs of introducing fracking to our state. My amendment to the bill, in essence, removes the section about taxes. No imposition of local taxes, fees or anything else. Hearing discussion in 2 committees last week, I asked both committees what the status of this was. One answer was that the Mayan Energy Commission is currently considering impact fees in their imposition. In another committee, the bill sponsor allowed us to how regardless any action the MEC might take, that he would oppose that for various reasons. While thinking about that since those meetings, I've thought a lot about the impact on our local governments, on road, bridges, on water infrastructure, and on our schools. And I see a number of different impacts as I look at the model states cited by the supporters of the bill. For instance, truck traffic has been estimated, to deliver water to a single well site, causes as much damage to a road as 3.5 million car trips. That's just delivering the water, 3.5 million car trips. And I can't speak about a lot of the rural roads in the other 5 counties, but I can in Durham, and that's going to be significant damage to the local, rural roads. State bonds or not, are they going to be enough for us to maintain these roads. Many of you in this chamber have served in local government, and you know what those calls are like, when you hear that that rural road is damaged. And we're going to be damaging these rural roads 3.5 million car trips. Texas for instance, one of the model states cited by sponsors, has already spent over $40 million in repairs, just in the Barnett Shale region of their state. Pennsylvania has been considering this for some time, and their estimate on road repair, that's in their Governor's budget for the last couple of years, will exceed $265 million dollars by all their estimates. On water infrastructure, the State of Texas had estimated that it will cost over $400 million to state and local governments over a 50 year period to improve and maintain the water infrastructure as a result of fracking. What about the schools? We hear in North Dakota, decided in committee last week to 2.6% unemployment. That's a laudable figure. But we didn't hear the other side of the coin. As people move in to North Dakota to accept those jobs, they're bringing families with them. A lot of those families will live in trailers, and these rural school districts

are crowded. I don't know about your county, but in Durham, we're tired of trailers for our school children. Those temporary trailers have a way of becoming permanent. How do we fund the growth in our schools? What about orphaned wells? There's a point when the wells done. And I don't see anything here that specifically addresses the orphaned wells. Whose responsibility is that? Hopefully, the counties will do that. Farm production. Look at farm production in some of these states. In Pennsylvania, the milk production in cows has dropped 18 1/2 percent in those areas where fracking is allowed. ?? remained constant or increased in other parts of the state. Weight production, in the area of Pennsylvania where fracking is allowed is down 20 percent. Who makes these things whole? Who evens these things out? Well, we've heard that other states don't have impact fees. In fact, Pennsylvania does. Their impact fee: 50,000 dollars for each horizontal well. I would argue that's not enough. West Virginia, Ohio have all implemented impact fees for their local governments. Now, we heard from the bill's sponsor that it ?? will end up with a patchwork of fees. Feel that it's backdoor way for us to block exploration. And I would say that this is just another reason for us to take time to look at this to see how that can work. I can do the arithmetic. We are going to get the 26 or 33 or more than that votes here and we will have fracking in North Carolina. While I may not like that, I do think we've gotta consider that impact on the local governments. Plus, the bill's sponsor told us last week that property taxes will increase and will cover the cost to local governments. Little fact, did anyone look at when these counties will do their re-evaluations? In Lee county, their next re-val is in 2013. In Moore and Chatham, 2015. In Durham, 2016. We won't have time. There'll be too much lag time between those re-vals and the property values going up and being increased. Senator Newton told us last week in response when will the jobs come. He said as soon as this bill is enacted, the trucks will start rolling. The damage to our roads and infrastructure begins then. But we can't wait for the re-vals to catch up and for the property tax to be there. But then another factor, another issue on the property taxes; if you look, we heard arguments last week, well the property taxes will increase. The fact that data show that they will not. In Texas, those properties in a proximity to fracking wells and where the lines run down 14 percent. In Pennsylvania, they're down 9 percent. So, ladies and gentleman, particularly those of you who've served in local government and who care about how your local governments can fund the services for our residents, I would urge you to approve this amendment and let us take some time to look at this and let's allow these local governments to establish some system of impact fees. Thank you, Mr. President. [speaker changes] Senator Newton, for what purpose do you rise? [speaker changes] to speak to the amendment. [speaker changes] Senator Newton, you have the floor to speak to the amendment. [speaker changes] Thank you, Mr. President. A couple things. One, the impact fees question is Mining and Energy committee is studying that and the Mining and Energy committee, if they decide that there is an appropriate need for impact fees, I want to pose that [speaker changes] be clear, Senator Woodard. [speaker changes] I do oppose allowing local impact fees because there are two distinct reasons and you touched on them but I want to make them clear. I'm not sure where you've gotten your figures. I'm sure there are some sources out there but there are two main reasons why I would oppose allowing the local governments to have impact fees or taxes. One, it would be a great way to locally kill the development of the energy sector and there are certainly some areas that would prefer to do that to keep our unemployment at 9 percent and pretend as if the world is just gonna improve itself. And two, there needs to be consistency across the state for this industry. They need a predictable environment in order to understand what it is they're gonna engage in. For those reasons, I don't think that this amendment is in good order. I don't think it's offered at the appropriate time. I think we should wait and see what the Mining and Energy Commission comes up with. It is my hope that in 2015/2016

to have that many, said time and cents, and the investors and has a Clinton, they're and the event live, and so-famous men and time-that is has several members us to that season, leading some to force the second, they should, Cincinnati-suggest anyone in this chamber was only time the level official wishes to keep unemployment that made 9% is disingenuous time anyone has about the severity sells has a citizen junior statements, I think we did that happen to support his immediate comment, as the facts I'm thinking that maybe the mind is no-prisoners into the racing community and entertainment week, so many other as his best times when statements centers-day discussing some Air Force just like; and seven for speed and China-cent-seven, of the season start of a descendant of a women's conference has not affected how much or as some of us there will go a long time that the events as the defense is in place of exchange, some of the spell of the aisle we have things in place of nonsense of the two years, the chief of the events that have been issued, but the deposit I'm missing wanted to open a second into the so-and time-that this individual or into the hands of the event in cities and the style section features a of the deficit down the WINNT question of here so they turned into a discussion that the man times is just as soon as former Xerox a stadium and 7/8 and forced into Haiti was present, finally back, and the housing, commissioned a container two years in the middle-class time he has some council which Mr. Of statements that if she has an office has been a pioneer of medicine reside here is one -shot if any of the ASCII of the county's in my district is that it's a toss in economic activity for the challenge of making sure that where his projected the schools are educated that people have enough and some of the Angeles 50 years of the current round of your budget is right for a time-place: as sole hasn't really bother me, but that was a is not telling them it's time for them are up to the task is this an opportunity and make it happen that the ?? into the session that the Dataquest, says passage of amendment cents a day-by-time of 16-member energy time, the defendant as a kind of sex and send the lesson is time for by the stress and signer of Xerox has been available since this began making a decision setting a time, CRS reports which senator of the document as I expected something in the industry in section. Questions times as independents and North Carolina and because the press time salmon days-unlikely that any industry will come a time sheet and shovel in mind and in a destination answers about to be those of us when someone does that mean that I'm definitely the business that those who has a problems-& against the list are experienced and knowledgeable about this instance, just that had also been certified that it just doesn't matter tiled ??.............

season and is supposed to be protecting the public interest in having halftime and just remember events, some of the steamer the protection of sun-times that this is an expert in energy efficient design that is at the center concert Sunday evening, as says Hansen-energy efficiency that finances and that's how much we can make use of energy is not from the same time, some that are something and then specifications that time and the distracting from the name of an access to happen in NT 1¢ in sufficiency is a 10-7 and 19 difference than an invalid page action as root in a suitcase has a season since you can't see well as the city's pension for from environmental protection and hand-set against any last-simmering that at the same time and that addresses, the energy-services act as a man standing time and that this issue is tremendous that I think that the 7-7 halftime, and that's it, just send me the comments this enhancement and this happening that has to me and said the others at the same constants for the environment this century, we should he was having said that the CF patients in a statement faxed us from using NT interest rates has the best and she Time Energy you can have some differences step into the senate and house arrest the only a symptom of four speaker that that this 10-of-the department's and in others. That's the essence of the a-half day-and then non-core and as the amendments and then that, and for that, as is, that I made them enough, to the survey found that that that is fast, is that has been an SS-fives, actress best, that was the deciding the trial in this section that says that over to a distance people mail soon as the enforcement of that has happened in the members have ?? was intended that of the disabilities, ties here a few of which have access to-late that some major concerns that I met the minimum tax- and-see-and-despite we were doing, I'm at a state-best three of you-and why have you added structures that method of states and we have identified styled acting all of a GM and have a spot where the action and the Kennedy gave it back into the ground and into my head of China and a memoir by an of the separation and worked at the time room, a find some actions that have not entered into the anyone does anyone have the time as if in fact we have that problem ?? it has nothing to hide the fact is, do-industry behind us here have actors editor-in-stock effects on, and sometimes a bit, but it up in the past since it and we all-members of the beloved the second half, as happened that, in- and the Indian ??................

Representative: …we discuss this last year. The mining bills allow, when a will is drilled, to basically adversely possess surrounding land owners mineral rights. It is called cooling. What you do is take your minerals and somebody, besides the land owner, decides what to get paid for them and so forth, which certainly goes against what people on the other side of the aisle think about condemning people’s property. What I happen to think about it to, and a lot of us on my side of the aisle. It is kind of tough when you tell people that you are pumping their gas out and that you will let them know what they will get for it. with these wells, I think that law was drafted back when we were talking about an oil well, where you went down and pulled some stuff from your neighbor’s. but this here allows you to go down and then out, and I have seen a half a mile clearly, and I understand that now they can go out a mile in all directions. You are talking about a two mile diameter circle around a well where you can just pull people in and where they are subject to just whatever the pool says they are entitled to for going in and having gotten their resources. That seems to go against everything that we stand for down here when it comes to people’s property. I have not heard any… we were told that the mining commissioner would work on that and we would hopefully get some answers. When I sit down, I do not know who to ask a question to, but if anyone has got information, I would like to hear it. The other thing is that we are being told that we need to do it for jobs. I do not doubt that if we are successful, and if everything goes as planned, that we will not create some jobs. I am going to tell you something. You cannot sit here and ignore the environment in the future o this state and the ability to have the great state that we have potentially so that we can hurry up and have a job. We are going to start holding you accountable on this jobs business. We set aside a sales tax because we needed to get that money back into the economy to create jobs. In a four month period, around the sunset of that tax, unemployment rate went up almost a full percent – go back and look. It was a loss of private sector jobs and at that time, we had been almost at the national average, somewhere close – about a half a percent, and we went over a percent above the national average and have not come down yet. If it created jobs, I cannot find a net good out of it. It was the first thing we did to stimulate the economy and the unemployment rate went above the national average because of it, in my opinion. I think the bureau of labor statistics showed a loss of public jobs that ran that up over a four month period of time. So, if we are going to create jobs, pass bills so we can create jobs, you need to start telling us how many jobs, when we can expect them, will the unemployment rate come down, will we lose other jobs and replace them with these so the rate keeps going up? This is your economy. We need some answers and we will hold you accountable. Until I can answers about, what I consider to be two very serious flaws about this bill, I cannot support it because I don’t think we can risk in this state we damage the [xx] over time and lose several great communities in this state. Speaker: Senator Apodaka, for what purpose do you rise? Representative: To speak on the fracking bill but I am going to get into a little economics if I might. I am looking for my memo here on talking points, but I do not have one – but we are going to be held accountable. We are moving to fast

[Senator [??]]: It takes my breath away. You know, I love all these saying we hear. Oh. This is the best one. Government jobs doing away with those is what hurt our economy. That is amazing. Absolutely amazing, that government jobs is what put us in this recession. I’ve heard some absurdities but that’s got to be the top of the list. [Speaker]: Is there any further discussion or debate? Hearing none. The question for the Senate is the passage of Committee Substitute Two to Senate Bill 76 as amended on its second reading. All in favor vote aye. All opposed will vote no. Five seconds will be allowed for the voting and the Clerk will record the vote. All ran. All ran aye. 38 having voted in the affirmative and 10 in the negative. Committee Substitute Two to Senate Bill 76 as amended passes its second reading without objection, will be read a third time. [Clerk]: North Carolina General Assembly in Acts. [Speaker]: Is there any further discussion or debate? Hearing none. All in favor of the passage of Committee Substitute Two Senate Bill 76 as amended on its third reading will say aye. Opposed no. The ayes have it. Committee Substitute Two Senate Bill 76 as amended has passed its third reading. The amendments will be [??] and it will be sent to the House. Messages from the House the Clerk will read. [Clerk]: House Joint Resolution 36. A Joint Resolution honoring the life, the memory of Joe H. Hagee, Jr. Former Member of the General Assembly. [Speaker]: Senator Bingham is recognized to explain the Joint Resolution. Hold on one second Senator. [Senator Bingham]: Thank you Mr. President. I speak today… [Speaker]: Senator Bingham, hold one second please sir. Senator Apodaca, you’re recognized. The Resolution needs to be placed on the calendar. [Senator Apodaca]: Thank you Mr. President. House Joint Resolution 20 that was just read in I move that it be brought before us for immediate consideration. [Speaker]: The Clerk will read. [Clerk]: House Joint Resolution 36 Honor Joe Hagee. [Speaker]: Now Senator Bingham you have the floor to explain the Joint Resolution. [Senator Bingham]: Thank you Mr. President. Representatives, Joe Hagee a lot of you do not know or knew him. I think Austin certainly did and I knew the family. [??] I served as a County Commissioner several years ago and had the pleasure Joe Hagee. I’m going to give just some, a little bit of history about Joe and then I’m going to talk briefly about some of his family that has joined us today in the audience. Joe Hagee served during World War II, from 1944 to 1946. He was awarded the European African Middle East Service Award with two bronze stars. He got the Good Conduct Medal World War II Victory Medal and the Army Occupation Medal. Joe also served as the Assistant Director of Services for The Blind under Governor Jim [??] Administration from ’73 to ’77. Joe served in the House of Representatives from 1967 to 1991. 18 years. Joe was also involved in several [??] organizations within the County and that’s how I got to know him. When the [??] Veterans of Foreign [??] Aircraft Owners and Pilot Association, Quantas and [??] International and American Legion. Joe was certainly a dear friend of mine and of course I got to know his wife, Jane, was a cracker Jack and well thought of in Davidson County. She was much more

?? everyone knows ?? public ?? she suffered a lot ?? so many years here in ?? also with her daughter ?? in same ?? has been the former chairmen ?? and an excellent commissioner ?? ladies and gentlemen ?? before you ?? things about this family ?? other who wish to speak ?? hopefully ?? will do so, thank you mister ?? [speaker change] thank you ?? [speaker change] to speak on the resolution [speaker change] ?? before i speak on the resolution [speaker change] thank you mister ?? of this senate ?? two turns with ?? in 1981 and in 85 i believe ?? then representative ?? but i specially remember ?? committee always appreciated chosen integrity and ?? to public service and i some think that people who are ?? little bit ?? the idea of ?? rest of us ?? regular people but it was never that way with ?? even though he went ?? lot of power ?? that position ?? never came across he kept his humility and his desire to ?? rather than hold a position to ?? be served he served his minority with ?? for while ?? later on in the senate he was always fair and reasonable and accessible he was a decorated ?? rather soldier a sheriff ?? he always ?? an outstanding job and so on the behalf of this resolution for fine public servant and fine American i do ?? and ask for your support, thank you [speaker change] thank you, further discussion ?? debate ?? for the senate is the passage of how ?? resolution 36 on a second reading on favor of vote ?? 5 seconds will be allowed for the vote being in the ?? the vote ?? [speaker change] with your permission mister president ?? ?? ?? recognize ?? [speaker change] ?? [speaker change] ?? okay [speaker change] 47 have voted in the affirmative and 0 in the negative ?? resolution 36 passage of second reading ?? will be rather third time [speaker change] ?? [speaker change] ?? further discussion on the debate ?? all in favor of the adoption of ?? resolution 36 will stand and declare aye ?? the aye's have it ?? resolution 36 passes ?? reading and there ?? thank you , on the motion ?? representative ?? the chair is happy to extend the ?? of the gallery to ?? the third ?? if you please stand and be recognized

[clapping] Speaker: Senator Apodaka, for what purpose do you rise? Representative: To send forth a committee report out of order. Speaker: Senator you may send forth your committee report. Representative: Mr. President. Speaker: Senator Tillman, for what purpose do you rise? Representative: To make an announcement. Speaker: Senator Tillman, we will do that but we are still on committee report here – just one second. The clerk will read the committee report. Clerk: Senator Apodaka rules operation to assent to joint resolution 20, joint session state board of education, favorable. Speaker: Senator Apodaka, for what purpose do you rise? Representative: I move that house joint resolution 20 be read and brought before us for immediate consideration. Members have copies. Speaker: Without objection, so ordered. Senator, did you say members do have copies? Senator Apodaka is recognized to explain the – sorry, the clerk will read. Clerk: House joint resolution 20, a joint resolution providing a joint session for general assembly to act on the joint resolution providing for confirmation on point of governor new members to the state board of education. Speaker: Senator Apodaka is recognized. Representative: Thank you Mr. President. Members, this just allows us to go into a joint session as required by statute with the house in order to vote on the new members of the state board of education. This resolution allows the speaker and the present protim to pick the date to have that and it looks like it will be Thursday morning at this point. So we do need to get that voted on. I ask for your support. Speaker: Any discussion or debate? Hearing none, the question before the senate is the passage of the house joint resolution 20 on its second reading. All in favor will vote aye, all opposed will vote no. Five seconds will be allowed for the voting. The clerk will record the vote: 36 having voted in the affirmative, 0 in the negative. House joint resolution 20 passes its second reading and will, without objection, be read a third time. Clerk: NC general assembly enacts. Speaker: Any discussion or debate? Hearing none, all in favor of the adoption of house joint resolution 20 will say aye [aye], opposed, no [silence]. The aye’s have it. House joint resolution 20 is adopted and will be enrolled. Senate bill 4, the clerk will read. Clerk: Senate bill 4, no MC exchange, no Medicaid expansion. Speaker: Senator Apodaka is recognized. Representative: Thank you Mr. President. Members, the conference report on senate bill 4 does two things. First, it specifies how the state can apply the $11 million grant, already received, to the cost of upgrading NC facts. Secondly, it clarifies that the new 9010 grant funding, once obtained, shall be employed towards NC fact upgrades. That is all it does. I ask for your support. Speaker: Senator Stine, for what purpose do you rise? Representative: To speak to the conference report. Speaker: Senator, you have the floor to speak to the conference report. Representative: Members of the senate, it has been about three weeks since we debated this bill the last time. It will be helpful to discuss what has happened in these last three weeks. We already knew that there were five republican governors, including governor Brewer of AZ, governor Kasick of OH, who were endorsing expanding access to healthcare for their people. We have now heard from three more republican governors: from FL, VA

...and today New Jersey. Governor Rick Scott, as a former healthcare executive, who was elected because of his opposition to Obamacare. Here’s what he says now embracing health care expansion for his people. I think this is a common sense solution to dealing with this for the next three years where it will give us time to think about how we can improve the system. In other words, let’s help the economy and our people while we improve the system at the same time. Today, Governor Chris Christie included expansion of healthcare in his budget to the General Assembly of New Jersey. Yesterday, Governor Bob McDonnell of Virginia supported expanding healthcare access to his people. One of the arguments that you all asserted three weeks ago was that we shouldn’t expand access to healthcare because our neighboring states weren’t and that might attract poor people to North Carolina who wanted to take advantage of Medicare...Medicaid. Well, so much for that argument. What else has happened in the last three weeks? Well, a central argument you all raised was that expanding access to Medicaid would hurt rural hospitals because it would shift people from private insurance to Medicaid and Medicaid reimburses at a lower lever. To support that thesis, you all cited a Harvard study that was national in scope. The fallacy of that argument, and really, the central misconception, of your case is that you see there being two buckets of people, those with private health insurance and those on public health insurance. Of course, there’s a third bucket. 17% of North Carolinians have no insurance at all. Expanding access to healthcare will primarily serve to increase the number of people with health insurance even if there is some movement from people with private insurance to public insurance. If somebody gets health care coverage in a hospital with Medicaid, they will, by definition get reimbursed more than if they had no insurance at all. Don’t take my word for it. Take the word of Steve Pizer. Steve Pizer, is the author of the Harvard study that you all were so enamored with three weeks ago. He said, “North Carolina has relatively high uninsurance rates and currently restrictive Medicaid eligibility policies. This means that new Medicaid enrollees in North Carolina will be more likely to be uninsured than in many other states. The proposed Medicaid expansion would be an effective means to reduce uninsurance among the low income population.” Well, now that he no longer agrees with you, I’ll expect you’ll discount his opinion. Let’s not take the word of the Harvard law professor, you cited, let’s ask the hospitals themselves. In a query from Senator Clark, the hospitals wrote: “Absent alternative coverage expansion, the decision not to expand Medicaid will harm your community’s hospital ability to meet our patients’ and communities’ health care needs. Although already struggling rural hospitals will be among the first to manifest those harms, all community hospitals will feel the effects." We heard a lot that Medicaid was broken. Medicaid can, of course, and should be made more efficient. We need to eliminate waste from the program. Over the last couple of years, on a bipartisan basis, we have, in a number of ways, supported efforts to eliminate fraud and waste from Medicaid, and we must never stop searching for ways to make that program more effective for the people and taxpayers. But because Medicaid did not achieve the unrealistic cuts that you all imposed on them in the last budget does not mean that the system is broken. In fact, between 2007 and 2010, North Carolina was number 1 in the nation in having the lowest rate of spending growth of its state Medicaid program. Finally, we heard time and again that there is no such thing as a free lunch. I love lunch more than the next person. But I very much understand that you have to pay for your lunch and so does Obamacare. What you’re doing with this bill is saying that all the federal taxes that North Carolina are going to pay to the federal government will not come back to North Carolina. No, instead, we’ll send them to Arizona, to Ohio, to Florida, and now to New Jersey instead.

The notion that you think you can solve the federal budget problem by rejecting federal monies paid for by North Carolina tax payers is entirely misguided. The impact on the federal deficit of our little bit of share of our money, our own taxpayer money, is negligible. I expect when we see the state budgets that you all are gonna bring forward in a couple of months, that we're gonna send back about the ten, ten to twenty, twenty to thirty billion dollars that we get from the federal government for transportation, for healthcare and education. I mean, my goodness, why should we take our own taxpayers to help with transportation if we've got a federal deficit problem? Our ability to solve the federal debt is a single raindrop in an ocean. Look, we know Congress is broken. Congress has to fix our federal deficit. But for us to reject our own taxpayer money is simply foolhardy. By rejecting federally funded healthcare expansion, we are failing to generate billions of dollars in economic activity when we desperately need it today. We are failing to create tens of thousands of jobs. We are failing to insure about a half million North Carolinians, and as a result, we are failing to save thousands of lives. Please, reject this Conference Report. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Kinnaird what purpose do you rise? [SPEAKER CHANGES] To speak on the conference report. [SPEAKER CHANGES] Senator Kinnaird has the floor to speak on the conference report. [SPEAKER CHANGES] I represent a very large healthcare organization, which is a state healthcare organization. It is the organization that takes care of the indigent, of those who have no health insurance, who have Medicaid. And I have heard from them, many, many of them. They are very distressed. They know what will happen to the hospitals. More importantly, they know what happens to those without health insurance. They show up at the emergency room. The emergency room is the most expensive healthcare anywhere. And what we're doing is forcing our hospitals to pay for these indigent people through the most expensive healthcare that's possible. Our doctors have called me, have emailed me, have written me, saying please, this is the most important thing you can do for the health and the healthcare of the state of North Carolina. Fifteen medical societies sent a letter to the governor saying, this is really a very, very bad thing to do. The health of our profession and our people is at stake at this point. The Hospital Association has told us what will happen to not only our rural hospitals, but other hospitals that are taking care of indigents. I urge you to vote against the Conference Report. [SPEAKER CHANGES] Is there any further discussion or debate? [SPEAKER CHANGES] Mr. President? [SPEAKER CHANGES] Senator Robinson for what purpose do you rise? [SPEAKER CHANGES] To speak to the Conference Report. [SPEAKER CHANGES] Senator Robinson, you have the floor to speak to the Conference Report. [SPEAKER CHANGES] I'd like to just speak very briefly on behalf of the citizens I represent. And last week I had the opportunity to meet with quite a few of those in Guilford County, who not only represented people who were employed, maybe soon unemployed, but also healthcare professionals. And yesterday, with a doctor who is well known at UNC Chapel Hill, who takes care of a lot of indigent people. And he said to me, Senator you know what you're doing is, your gonna put them on our doorsteps by not expanding Medicaid. And so last week, and the last couple of weeks, we've heard from the Secretary in our Appropriations for Health and Human Services meeting. And I appreciate the chairs, the co-chairs, for bringing her in, because what she said is, yes the system is broken, and we're gonna fix it by June 30th. And I think all of you heard that. Well my other concern is if she's gonna fix it, and all of you have confidence in her, that it's gonna be fixed by June 30th, what is the reason for not expanding Medicaid, so that people in this state who really need it, who can't afford health insurance, hospitals who can't afford to take care of people in emergency rooms, what is the rationale for not expanding Medicaid in North Carolina? I think it is unconscionable if it, it means that we don't care about our people. We have an obligation to, maybe, make sure the system is working. And our secretary that our governor hired said that she is gonna get it done by June 30th, so it doesn't make sense...

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Do we have any notices or announcements? [SPEAKER CHANGES] Mr. President. SPEAKER CHANGES] Senator Brown, for what purpose do you arise? [SPEAKER CHANGES] Republicans will caucus immediately after session. [SPEAKER CHANGES] Thank you, senator. Senator Tillman, what purpose do arise? Mr. President, I'm very sorry a while ago, senator Graham said that I was asleep, and I stood up at the wrong time, and I missed, I'm so sorry, I missed your speech. Senator McKissak spoke so eloquently, Stan said, and I missed that. I'm terribly sorry for that, but the announcement is education, higher education will meet at 10 tomorrow. The house bills will not be considered, but we will meet on the community college board resolution. [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Jackson, for what purpose do you arise? [SPEAKER CHANGES] To make an announcement, please. [SPEAKER CHANGES] Senator, you have the floor for your announcement. [SPEAKER CHANGES] ?? Caucus will meet tomorrow morning at 7:30 AM in room 414. 7:30 AM. So those of you who sleep in late, get up early and come on. Thank you. [SPEAKER CHANGES] Senator Soucek, for what purpose do you arise? [SPEAKER CHANGES] Make an announcement. [SPEAKER CHANGES] Senator, you have the floor for your announcement. [SPEAKER CHANGES] Thank you, Mr. President. Republican senators are reminded that tomorrow at 3:00 we have our mandatory ethics training in room 2126. [SPEAKER CHANGES] Senator Newton, for what purpose do you arise? [SPEAKER CHANGES] To make an announcement. [SPEAKER CHANGES] Senator, you have the floor for an announcement. [SPEAKER CHANGES] Thank you, Mr. President. Some of you, if you look at your general assembly e-mail accounts will see an invitation. [SPEAKER CHANGES] The senate, come to order please. [SPEAKER CHANGES] See an invitation from Representative Moffitt in the house. I would ask you to, despite the fact that it comes Representative Moffitt to please take a look that email and consider joining the sportsmen's caucus. That email is self explanatory. We have a lot of fun in that caucus. A lot of important issues, and I would invite you to join. Thank you. [SPEAKER CHANGES] Any further notices or announcements? [SPEAKER CHANGES] Mr. President. [SPEAKER CHANGES] Senator Graham, for what purpose do you arise? [SPEAKER CHANGES] On a personal privilege. [SPEAKER CHANGES] Senator, you have the floor for a personal privilege. [SPEAKER CHANGES] Ladies and gentlemen of the Senate, yesterday, the 101st central inter-collegiate athletic association CIAA basketball tournament started in North Carolina's largest city, Charlotte. The CIAA is the third largest postseason basketball tournament in the country, larger than the SEC, the big east, and even ACC. The economic impact on the city of Charlotte, we're expecting about 200,000 visitors and the impact of $50,000,000 for hotel owners, restaurants, other small business event management company. It's a huge impact for the region and the state. We have three state institutions participating in the tournament, Elizabeth City State, Fayetteville state, and Winston Salem state, along with four private institutions, all based here in North Carolina, which helps bring that economic impact or state and to our region. On a person notes, my daughter is a member of the Fayetteville State women's basketball team, and last night I had the opportunity of not being with you guys and ladies, but hosting 25 of them in my home for dinner last night, and they have a 22 and four record, and looking forward to bring home the title. But that aside, sports and entertainment is a huge economic driver for North Carolina economy. Teams like the Carolina Panthers, the Charlotte Bobcats, the Carolina Hurricanes, NASCAR, the Belt Bowl, and other major sporting events like ACC basketball or football, contributes the economic economy of North Carolina. A huge driver, which brings over close to $1,000,000,000, all those entities combined. So, I just want to pause might you know that as our economy is changing, sports and entertainment is a major part of it, and certainly the CIAA basketball tournament in a larger city is contributing a great windfall to our local economy in February. Thank you very much. [SPEAKER CHANGES] Thank you, senator. Any other notices or announcements? Is there any further business to come before the senate? If not, the chair recognizes senator Berger for a motion. [SPEAKER CHANGES] Thank you, Mr. President. I move that the senate do now adjourn, subject to the introduction of bills and resolutions, the receipt, referral and re-referral of committee reports, and the receipt of messages from the house and the governor, to reconvene tomorrow, February 27, 2013 at 2:00 PM. [SPEAKER CHANGES] The motion is the senate do now adjourn, subject to the stipulations stated by senator burger, to reconvene Wednesday

January 27th at 2pm 2nded by senator adbodocko all In favor say I all oppose no the I's have it the senate stays adjourned