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House | May 8, 2013 | Committee Room | Commerce

Full MP3 Audio File

But at person job development and charity committee thanks everyone for attending we have to start alarms with us today we have built a house Joe Crooke and Martha Garrison identified job has another five bills that we have before us today started off organized start with House Bill 69 opportunity advancement zones are presented for the builders of talking about the pros committee substitute is Bill yes there isn't represented Brown moves the PTSD probably before the committee represent for your recognized present the bill? Good morning members of the committeeshort and sweet on this one it is not a simple meal but it is very important to what this bill would allow for us inside of specific County areas that could be set your County that are more broader or more or less economically depressed in other sections of the counties and this would provide based on the specific criteria which is in the BLM will take the time to go over you to redirect their is that it would enable the county to determine where those districts are where those areas are inside accounting and they could effectively address more economic development that went through the current North Carolina tier system and I'm a vital request? Further discussion for the delay on the legislation ribs and what will question from Bill sponsor direct as escort mission to orbit that I just need to put my mind at ease on this question of an AV rating is totally incorrect that when I think of a out the save accounting it where you're from and having a particular segments of the county that could be here differently and I walked a little bit late some off key here is to check me out so for your mind is easier to calculate on in our more remote rural areas you may have to grab an extra 30 or 45 minutes to get to where there may be a job but in our world is populated areas in IDE or places I had better write access jet drive only 10 minutes to get from one area to the next to find the next best jobs of overall a big pot of money split some inlays now if they can be split more ways that now it deletes the ones I probably have the fighters to go to get a job as what I would appreciate your dress with our I'll address it with my own analogy if I would if the world according to John aside from the money to keep the state solving out into the treasury try finer people jobs as well with it and what this bill actually does it provides people of counties that have varying degrees of economic up and down provide the enzymatic tool toolbox to hopefully do something to attract jobs in those counties wherever they are located and that's the purpose of visits to do everything we can within our legislative powers to try to provide for additional job opportunities out there an animal that eases your mind or not but that's the intent in and out in the explanation thank you Ursula to recognize a large network of early literacy recognize that disorder question for all the organized boundary question still it would be safe to assume that the intent of this video would be to level the playing field throughout the county so everybody is equal opportunity for job creation if you're addressing it from the economic opportunity to it in list businesses to come to a specific area of the county it would assist with back yes is far as the level playing field for job opportunity I would hope that that that exists today I believe it does this just present a provisos additional tool in in the county's economic toolbox 22 hopefully it will bring that industry indicates that if it's a route to the human one more, tool and will come to your area this is what provides what you can't do it across the county you have to have specific targeted areas inside accounting which are very specifically drafted in the words of higher

As they are sending to push the bill sponsored the measure, the questions they can assure them is no less on as a tool that the Israel stopping and a standstill of all government often begins here without some of the recall of the one would mistake you can eat a contented network inferences with this change the status of it in the Somalia and tear down the weekends and can be carried within the county level of storage lots of the exchange Mckay would not change the county during it would change perhaps the specific place in any county that might be more heavily, impacted by the loss of jobs all this should all Mr. Recognize that some bond issue to live with this evening of may, it's down to whether do with Microsoft announces there's a X number of dollars to more ram this actually, (SPEAKER CHANGES) I didn't write this actually work to pull dollars from the Federal Park your cameras and more job losses interfering with inside network and you people more dollars in debt and of his decimal you may be doing now, and therefore would lower the overall amount of money to be put into summer and into this MMI L, confirmed that the demand dollars that anything in my conversation with people dealing with the Congress is that we're doing everything, your means that provided to provide the funds necessary to increase the pay for job growth of the day was a part of that in your question making you can you elaborate more common for me please call center seconds gone on the bridge and I are good ideas what 11 suggesting is defined it is a possibility for this meal if you take the county and was more pronounced like the midway county and you can change often give itself within the county nicely with more money into account four dob increase which would insist this is the Italian amount of money for the sake of all the opportunities from rural counties with his remarkable cans, the belly with her tomorrow.(SPEAKER CHANGES) Casablanca pstn for Mr. At home where the company is looking to locate so if they were initially looking at how to make from Barbara their nation looking around for two and then get a good bet that even a purported benefit Rutherford board are pleading for example the golden share because they don't make a map of a big understand what version 4% on question of the question I have more wanted this with the Federal counts on we saw for now the calls would allow the state infrastructure we don't have all but for those with attracting businesses and this is one of the of one Carries we have out there, and, on a little bit concerned if its exit polls dollars away from county's health will have the air force to bring the family on the state supreme salon from one job to turn person college correctness, thank you Mr. Chairman MM pistol that, I understand your bill, understand the gloves and metropolitan areas that complicates the pot of exchange can level that whole county may get like two, Alameda County in which county and as we felt it may have different a level that she had copies and am fed up of the pockets that qualified four additional opportunities NFL I do understand, which you try to do you find effective follows the cleric and M,(SPEAKER CHANGES) a collection of films to clay and unafraid of this may be able to help you pick off if you can make you get something back and look for fifth, and the same county prosecutor and take away from your old, she just tried to explain and come back just a concert in which county doesn't mean that there are the party should he have to limit or Libya interrupters and we go from bills and 50 minutes on the snipers to try the Assisi and correct response will represent only recognize that would be a good assumption that the genesis bailey is simply to help them find jobs and opportunities where their bible and you look in counties that have specific areas that could be that started with additional total offspring economic growth person ??...........

...Catlin, you're recognized. [SPEAKER CHANGES] Thank you, Mr. Chairman. As we're trying to lower our taxes, which is going to be our big discussion in the next month, what's the fiscal impact of this? How many tax dollars are we going to be taking out of the overall pool and as we're trying to lower taxes on everything? [SPEAKER CHANGES] Representative Catlin, let me also make a point here, that this bill does have to go to finance and so that probably would be a question for finance. Representative Torbett, you're recognized. [SPEAKER CHANGES] I'll go with the Chairman's discretion. [SPEAKER CHANGES] Representative Avila, you're recognized. [SPEAKER CHANGES] Thank you, Mr. Chairman. I know I came in late on the discussion, but in catching myself up to this, I don't know that I've got so much a question as I've got a comment. Because I think I've seen this on a smaller scale when we tried to manipulate business within cities with enterprise zones. I think with something like this, good intended though it may be, that we're just creating complexity of a system that when we look at the overall health of the State and we look at the overall fairness to the tax codes in the corporate and personal world, that we need to focus our efforts in that direction. We need to be able to work with these areas of the State and they come to us with issues as they develop. I'm just a little concerned with so much nitpicking micromanaging from the level of the State and creating some areas and I don't know if other areas where they've been tried that we really see the hoped for results. [SPEAKER CHANGES] Representative Torbett. [SPEAKER CHANGES] Thank you. Thank you, Representative Avila. We obviously have a little bit of different variation of looking at this. I would ask all the committee members to think about yes, multiple folks in this room are looking at the new tax policies as being advantageous for job growth. However, they're currently not in place. They have yet to be approved. And what I'm looking at is, and what I know in my heart of hearts, is that if we can't get our folks to work by providing them any necessary tool to enable opportunity for job growth when our current industries and enlisting new industries. If we can't get them to work earning an income, it doesn't matter what tax policy is in play because nobody's going to have an income to apply to it. So I see it more importantly to also, before we address our tax policy or simultaneously to make sure we pull all stops and get our people employed in the great State of North Carolina. [SPEAKER CHANGES] Representative Robert Brawley, you're recognized. [SPEAKER CHANGES] To ask, just to confirm. In Iredell County, one section of county they've got a $73,000 medium income. Another section of the county has a $31,000 medium income. The $31,000 area could come under a different opportunity from the $73,000. [SPEAKER CHANGES] You're recognized. [SPEAKER CHANGES] Real quick, Mr. Chairman. As long as that specific, very well defined area meets the criteria ??. [SPEAKER CHANGES] Representative George Graham. [SPEAKER CHANGES] Yes, sir. Thank you, Mr. Chairman. I'm trying to understand this particular proposal here. I'm of the understanding that at the end of the day, what really matters is what it costs to develop a job. [SPEAKER CHANGES] Representative Torbett, you're recognized. [SPEAKER CHANGES] Mr. Chairman, I ask him to respectfully repeat the question. [SPEAKER CHANGES] I'm trying to look at the end of the day, what we're looking at is to cost of an incentive to create and develop that job. Here, it seems to me, that what we're doing is we're going to have two or three different systems within the overall system within the county that's going to, you would need to put all those factors on the table before you could determine what it's going to cost to create that particular job. [SPEAKER CHANGES] Actually, Mr. Chairman, if I may. My economic guy and the county manager tells me it's very simple. Once criteria is met and an area is defined, it's located, it's mapped. Everybody knows where that is. And so it just be an added addition. It's not a multiplier, it's not a heavy piece of paperwork. They just add that additional component for that opportunity advancement zone area. It's not a hard process. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] You're recognized. [SPEAKER CHANGES] Do we know what the average cost per job in our counties are now? [SPEAKER CHANGES] The average cost per job? I do have that under the current tier...

Structure that which are asking that your wand undercurrent of the 1200050022 of the 5000 to 3750 M opportunity and handsome sum that you're one of the 14th at a tier two of the 14th at 23 would be $7000 vs. (SPEAKER CHANGES) stars recognize the famous Chairman Les Gelb committee don't restart peace treaty talks had on tax credits several years ago we had 52 years and beyond then we got a lot of complaints from people who were in tears four and five that they were not getting the tax credit money men sold it was reworked to take down the three cheers and now we're still getting complaints from people ensure three that are not getting enough money to practical effect of this bill is that we're one of wall of the three tier system if you want away with 15 away with it but there's not one being cured three counted as I have pockets it would qualify 421 designation under the essence of a normal words for the stock that only the practical effect is this do with this distorted three tier system and I don't think this through the winter than ours and shoulder and a vacancy rates will make a comment from this is a CVS of the legislation and accused the road this is one of those other 224 on an urban land which will not emerge to one count is a course at present you with county all the women and infrastructure two of them at my county four to recruit from economic development is the issue of having concern I have is a little too urban situation such as Mecklenburg more lake county or some as large an area is leno's with those folks are going to look first we know we may have the infrastructure to put one together 5821 on session with a Netware County winery, maybe there's no way and that is going well and I can compete with that, and I have no concern that were just dig and roll vs. Irvine, 11 some address and the arson Alexander as you and thank you, Stuart ,(SPEAKER CHANGES) I am is more pointed out that the key in the 23 counties call 427 from state worker on ended in the impacted here are usually Indian of that film's census tracts are just as concerning the economic development and scion of a part of the state school and I would urge my colleagues to keep a lid down via peach walks me a possible MPH , is the thing about the addictive three of the county's because local citizens two more deserving of economic development person she recognized and jump back and remorse version of the army duplicate my district are some really a flowing areas but the people in my district goal by a flood in my district is a large district was 30 miles long, can take a long-term study, they should be penalized because of course the county divorce law idea that our responsibility to represent and do want to go back all residents and the Parks the county's accounts and allow the parser dollars should be penalized because other parts of Clark and get what you suggest, countered the operator can she? Sidney helping his system and we should not about business, Portugal but still you recognize as chair of the things that make up the deal at the DOS one motion on both sides of an additional nine on the metro show me the smaller counties are to be married a 40 dollars or look anywhere with candidates and look of a large national tax breaks to larger bank vault at the store to complete the job. Cumberland someone very concerned special you look at you do that you are just a way that the Care System put the money flows from Willie heard any impact those earnings, that would urge caution urgently read as judge's robe rate for you have to find ways to some ??..........

no way gets rid of the current tiered structure. [SPEAKER CHANGES] Representative Shepard, you're recognized. [SPEAKER CHANGES] Thank you, Mr. Chair for a question of the sponsor. [SPEAKER CHANGES] You're recognized. [SPEAKER CHANGES] Representative Torbett, has anyone from our local or regional economic development committees organizations weighed in on their input on this--what they think--have we heard anything on it? [SPEAKER CHANGES] From the Gaston area they did weigh in on it. Because Gaston, much like Cleveland and some of the other counties that were mentioned, pretty much has a split. There's like a natural divide, where you have the more affluent from the less--I even hate to put tags on people, but that's what people are using in here today. All I'm trying to do is develop areas that--across the state--that if it's a specifically blighted or more heavily impacted they have an additional tool there--they can attract industry there in hopes of opportunity for jobs. [SPEAKER CHANGES] Final comment from Representative Goodman. [SPEAKER CHANGES] Thank you, Mr. Chairman. Seems to me that a county like Mecklenburg or Wake has the economic resources to create their own advancements on zones within the county where a poor county--a tier one county--like Richmond or Scotland, or Robeson, which I represent, do not have the local resources to be able to do that. And, I think that's the difference that we're looking at there. The district I'm in goes from Robeson all the way to Montgomery, and every one of those counties are tier one. So, where somebody in a depressed neighborhood in Mecklenburg can drive a few miles to another part of the county to get a good job, where I live they gotta drive 50 or 60 miles to get out of one of those zones. So, I think this is a very problematic issue and I'm going to vote against it. [SPEAKER CHANGES] Mr. Chairman, if I may? [SPEAKER CHANGES] Yes, sir. [SPEAKER CHANGES] Thank you so much. Representative Goodman, I understand your sentiment. And, what I fear most of all is that we're getting to a we against them--or us against them--mentality in North Carolina, because of the poor economy we have. And, I assure you, like I say, to the bottom of my heart, that the intent and the direction is we should be looking to find any and every opportunity to hire, to provide opportunity for job growth for any and every North Carolinian. I don't care where they are. But to continue this us against them, or rich against poor, or small county against big county, it--to me--is just absurd. I'm sorry, I live in a county that has both. It has absolutely both. And we have to use every tool we can devise to provide for job growth. And, forget the us against them. We have to do that. [SPEAKER CHANGES] Follow-up? [SPEAKER CHANGES] One final follow-up. [SPEAKER CHANGES] Thank you, Mr. Chairman. I do not question your motives and I know your intentions are good, but I just see the results being different from what is intended here. [SPEAKER CHANGES] Representative Waddell, you're recognized for your motion. [SPEAKER CHANGES] Thank you, Mr. Chairman. I also represent one of those tier one counties. In fact, I represent three tier 1 counties. And, I understand the bill sponsor's intent, I believe, in this bill. I went and talked to the bill sponsor about it. And I do believe that--you know--in this state--this great state of North Carolina--we need to be looking for jobs everywhere we can. And I do hope that that's going to cause those jobs to come back down into my tier 1 counties, too. And, when having said all that, I move that we have a favorable report for the proposed committee substitute for House Bill 69 and refer it to Finance. [SPEAKER CHANGES] Motion is properly before us, Representative Torbett? [SPEAKER CHANGES] Further discussion, further debate on the motion? All those in favor will say aye; all opposed say no; unable--the Chair is unable to determine-- [SPEAKER CHANGES] Division. [SPEAKER CHANGES] Division having been called, all those in favor will raise your hand. [pause] All those opposed will raise your hand. [pause] Motion fails 18-22. [SPEAKER CHANGES] Representative Steinburg, you're recognized.

for a presentation on House Bill 563. [SPEAKER CHANGES] Thank you, Mr. Chairman. Good morning everyone. You have in front of you, before you House Bill 563, and uh, what this bill is all about is we're trying to create a foreign trade zone in northeastern North Carolina using the Port of Norfolk. And the, this is a tremendous opportunity for rural counties who are experiencing significantly high unemployment and have been experiencing that kind of unemployment for decades, sadly. This is an opportunity for us as the fourth poorest Congressional District in the United States to take advantage of partnering up with the, with the Port of Norfolk, and, uh, the, uh, the opportunities that that will create. The dichotomy is this, the Hampton Roads area is one of the fastest growing areas in the country, and just across the border, within 60 or 90 miles, 60 minutes or 90 miles we have, um, uh, 50, we have four or five counties that are identified as finger counties, and these counties would serve as points of assembly and so forth for businesses that are going to, would like to locate in Norfolk clear, next to the port, but can't because there is no room there for them to, uh, for them to expand. So the very natural expansion for them would to be look Sou-, would be to look Southward to those finger counties. So this is a bill that I'm really excited about. This is something that I think is really going to be, create an economic reneassance in northeastern North Carolina that badly needs it. And I think it's pretty self-explanatory, the Port of Norfolk, the Port Authority, they are very excited about this opportunity as well, and this bill will enable us to partner up with them to create what I think is just something very exciting that will not only touch northeastern North Carolina, but, I believe the entire eastern sector of the state will benefit as a result. [SPEAKER CHANGES] Do members have the copy of the legislation before you, it's House Bill 563? Has that bill been passed out? This side has it? You have the summary. Members have the summary. The summary's longer than the bill. [SPEAKER CHANGES] It's in the folder. [SPEAKER CHANGES] It's in the folder? It's in the folder? It's in the folder. [inaudible] Representative Jeter, you're recognized. [SPEAKER CHANGES] Um, if I could just briefly, well hopefully briefly speak. I appreciate what Representative Steinburg's doing, and I understand the provision of what he's trying to accomplish, but as someone who makes his living in the trucking logistics and shipping industry, let me tell you my concern with this bill. He, he referenced it a couple times, this will be great for the poor in Norfolk, but we have to understand, the Panama Canal is being widened for the first time in a generation, which is going to allow super ships to come through the Panama Canal that current, that can't currently get through the Atlantic Seaboard. Anything we do to allocate those steam ships to go through the Norfolk Port versus Wilmington, Morehead city, is going to be dangerous to the existing economies we get. And let me tell you why I have such concerns, it's not easy to get from Norfolk or Representative Steinburg's district to where the major manufacturers are, and that's in tier one, tier two, tier three counties to take, to take on a theme. And it's not easy to get to the major population centers because of the way the roads are built. That's not Representative Steinburg's fault, that's just the reality of it is. Trucks buy mileage in road, if we advocate and allocate a policy that increases more freight to Norfolk and that port, it will diminish the amount of fre-, manufacturing in the rest of the state, because it takes more miles to get there. Trucks buy miles, trucks pay by miles, if you, if it costs more miles to get there, it costs more money, the less likely they are to relocate in every else, everybody else's county. And I appreciate the, what he's trying to do, but I just think this is a bad, bad policy for the rest of the state. [SPEAKER CHANGES] Representative Steinburg, you're recognized. [SPEAKER CHANGES] Uh, Representative Jeter, with all due respect sir, uh, this, this particular bill is, uh, is directly related to those five finger counties in northeastern North Carolina. We don't expect that folks in the other parts of the state are going to be using this. We're going to designate foreign trade zone status

...within these five counties, that's it. The Port of Norfolk is built out, there is nothing more they can do in terms of having places for assembly and so forth. They need space. This space is going to be located within these five counties. These five counties have excessive unemployment. This is an opportunity for us, the fourth poorest congressional district in the country - in the country, not in the state, in the country - to take advantage of the fastest growing metropolitan area, which is right across the border in Virginia. For us not to pass this bill is complete insanity. These counties are desperate for employment and we have a plan here that can give it to them. It's not going to impact your business or others in other parts of the state. They can continue doing business as they've been doing it. This is merely to build upon the problem or take advantage of the problem the Port of Norfolk has right now, as opposed to the problem that we have right now, which is excessive unemployment. So this is something that is going to bring jobs to this region. We're looking at that for this region, these five counties. [SPEAKER CHANGES] Representative Steinburg, I've got 12 people on the queue to list and we will vote these bills out this week. And if we don't do it today, we will do it seven in the morning. So Representative Larry Bell, you're recognized. Representative Tine, you're recognized. [SPEAKER CHANGES] Thank you, Mister Chairman. I'll just speak briefly. It was summarized very well. This is about economic development in the Northeast. The former Logistics Chair for the Northeast Commission, which takes all of these different considerations that Representative Jeter was talking about, into consideration. And this is an investment in economic development. It's going to require some additional infrastructure, but we do have assets that they don't have, from way down areas for manufacturing projects, to collection areas, to areas that we could then start some manufacturing and start some of those businesses right there in those five, which they wouldn't have very far to travel. So at the appropriate time, I'd like to make a motion. [SPEAKER CHANGES] Representative Millis, you're recognized. [SPEAKER CHANGES] Thank you, Mister Chair. Just a friendly comment in regard to Representative Jeter's response to Representative Steinburg is that that widening of the Panama Canal, one thing to consider about Representative Steinburg's bill and this traffic going to Norfolk is that we have to consider the capacity for the Port of Wilmington and also the Port of Morehead to be able to harbor these ships. And one thing that we need to consider is that these large ships coming in at the Port of Norfolk, may have more access and capacity to harbor this ships than Wilmington and Morehead and therefore they're not able to take advantage of the shipping and trucking. That these ships will not come to Wilmington or to Morehead potentially. [SPEAKER CHANGES] Representative Shephard, you're recognized. [SPEAKER CHANGES] Thank you, Mister Chair. Basically, I was going to echo what Representative Millis said. I've been working with the transportation of the Military and the Marine Core for 36 years. There are a lot of things that could not go into Wilmington and Morehead City that could go into the Norfolk Port. They could not handle some of the items we ship in some of the ships, so I would counter what Representative Jeter said, that thought that it is a plus, this bill. [SPEAKER CHANGES] Representative Riddell. [SPEAKER CHANGES] Thank you, Mister Chairman. I would just agree with the previous comments of Representative Shephard and Millis. I have sailed as a US merchant seaman into Charleston, into Wilmington, Morehead and Norfolk. And the waters of Wilmington and Morehead City unfortunately do not have the draft capacity to handle a Panamax sized ship, so it's a new question. [SPEAKER CHANGES] Representative George Graham. [SPEAKER CHANGES] Thank you, Mister Chair. I just wanted to simply echo what has simply been said. The economic trade zone is awfully important. We recruited spirit owl systems to come down to Lenoir County, and one of the things that they demanded prior to coming or settling an agreement, is that we put together the trade zone. That is critically a piece that you need in your toolbox. [SPEAKER CHANGES] Thank you, Representative Graham. Representative Floyd. [SPEAKER CHANGES] I'm just amazed when we start talking about jobs and jobs and jobs, and we look at the mountains and we look at the Southeastern part of our state which is about the most poorest in our state. And we can create some jobs, both from the creation of this zone and also from the infrastructure which may follow that, then I think that this is a good opportunity for this state. It's about jobs to our poorest other than the county right about me going to South Carolina, so I support this.

Rep. Avila -- [SPEAKER CHANGES] Thank you, Mr. Chairman. This is just a point of inquiry for the staff. Could you tell us how many current foreign trade zones we have in the state? [SPEAKER CHANGES] I believe it's six. [SPEAKER CHANGES] Follow-up. [SPEAKER CHANGES] Recognize the follow-up question. [SPEAKER CHANGES] Do you by any chance know where they're located generally? [SPEAKER CHANGES] I can get you the map, Rep. Avila. I know there's one that's in Wilmington, one in the GlobalTrans? Park. There's one in Charlotte. There's one in the Triangle, I think. But I can get you the map of where they're located. [SPEAKER CHANGES] Rep. Starnes, you're recognized. [SPEAKER CHANGES] Question for staff. [SPEAKER CHANGES] Merchandise that comes into these trade zones are free from ad valorem taxes. Does this, will this bill have any adverse impact on either municipal or county revenues. This does have a subsequent referral to Finance, Rep. Starnes. [SPEAKER CHANGES] Does she have a quick answer to that question? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] No sir, I don't know. [SPEAKER CHANGES] Rep. Szoka -- [SPEAKER CHANGES] Thank you, Mr. Chair. My concern on this bill was that what we have here between our short-term objectives in the state and our long-term objectives. I’ve heard Sec. Trotzler ? and Sec. Decker speak several times over the last month talking about our ports, the infrastructure that we need to build up those ports that are in North Carolina. And my concern is I've heard one or two of the representatives say that there'll be some need for infrastructure to support this. In our long-term vision of building up Wilmington and Moorehead City, if we commit to this, we could in fact be diverting resources for our ports that could definitely bring in a whole lot more money for our citizens than supporting Norfolk. And that's my concern with the bill. [SPEAKER CHANGES] Rep. Stein, be here recognized for ? to respond. [SPEAKER CHANGES] Am I on here? Okay. Rep. Szoka, I believe that you heard the comments the other evening from Gov. McCrory when he was talking about his new transportation plan. Were you there when the Governor was speaking? I don't know if you heard that or not. Okay. The Governor did speak specifically about northeastern North Carolina and for us to take advantage of the Norfolk tidewater area as a gateway region into the state. This is in no way meant to take away from your ports in your particular district. This is to provide additional business and revenue for the northeastern region, additional employment. And I think in fact that your region may be able to even expand upon this. And I'm saying that as it relates to other points that have been made here previously. [SPEAKER CHANGES] Rep. Catlin -- [SPEAKER CHANGES] Thank you. To answer a couple of questions: This doesn't impact, foreign trade zones don't impact ad valorem tax. They're duty deferrals, which allow ships that are, or something that's being shipped out of Norfolk that doesn't have to, it could be stored in North Carolina without having to pay a duty. The post-Panama Canal ships don't fit in any of the Wilmington or Moorehead City ports. So right now those ships are going to go to Charleston, or they're going to go to Norfolk, so if we can get some benefit out of what goes to Norfolk, I think we should. The foreign trade zones, they are normally expanded by what's called an alternative-site framework that I've been working on for two years. It's not done yet, and we've got an existing foreign trade zone at the GlobalTrans Park. Typically this would be a magnet site to that. There would be no necessary infrastructure to make that, if there would be infrastructure for whoever wanted to use it. But I have question about this. This might be a staff question. I have no idea how this definition of "public corporation" is going to create a magnet site for a foreign trade zone. If it does, I totally support it, and I don't have to have that answer right now. But this would be good for North Carolina. But I have some concerns that this may not do anything. So that's my question. [SPEAKER CHANGES] Rep. Catlin, we struggled with the language as well when we were developing this ? the bill's sponsor, and that's about as good as it's going to get as far as how to define it. So I'll let staff respond to that. But we went through the same kind of just how are we going to define to get the goal. So I'll let the staff explain that as well. [SPEAKER CHANGES] Thank you, Mr. Chair. Rep. Catlin, as the Chair indicated we had some concerns that this language was actually doing what was intended. What we discovered in working with the ? county economic developer and [CUTS OFF]

...with the federal trade zone, Representative, the best thing to do, essentially, is to mirror the federal definition of this term, and that's what this bill has done. It adds a clause that mirrors the federal definition, and since we would have to get it approved by the Federal Trade Zone Board, they'd prefer to see language that's like their language, so that's why it is the way it is. The Chairman: You're recognized for a followup question. [SPEAKER CHANGE] Just real quickly, we will get the alternative site framework authorization from the U.S. Department of Commerce soon? Or I'll be very upset if we don't, but I think we will. And whether this works or not, we'll still be able to do it by making your area a magnet site to an existing foreign trade zone. Representative Brian Brown: Thank you, Mr. Chairman. Representative Catlin actually said a lot of what I wanted to say, so I'll be briefer, but my concern was exactly the language in the bill and how this will create a magnet site, so I'm glad that was brought up. But just a friendly comment to Representative Szoka's concern of what this would actually do, as someone who lives in the eastern part of the state, and one of the largest areas in the eastern part of the state, I can assure you that manufacturing and shipping and these industries within our county, they don't ship things out of Moorehead City and Wilmington; it's cheaper to send it to Norfolk, it's cheaper to send it to Charleston. That's just the facts. If we can't pull anything, can't pull any revenue, can create any jobs and any advancement whatsoever in these northeastern counties, who are very poor, that is exactly what we need to do. And the reality of it is, too, regardless to what we do from an infrastructure standpoint, in those two state ports, those five counties, it's pure business economics -- they're still going to send that product out of Norfolk. They're not going to send it to Wilmington; they;re not going to send it to Moorehead City. It's just about proximity. So I fully support this bill and anything we can do to support the northeast region, we need to do. The Chairman: Representative Dollar, you're recognized. Representative Dollar: I'll try not to be repetitive, but that area of the state, the northeast area of the state, unfortunately is more of a drain on the state budget than it is a contributor, so anything that we can do that will help them develop the economy in the northeast will be a tremendous help, not only to the rest of the state, certainly to the state's budget, and most importantly, to the people who live up in the northeast, who've had just tremendous, longstanding, systemic difficulties in developing the economy. The Chairman: Further discussion, further debate? Representative Tine, you're recognized for a motion. Representative Tine: Thank you, Mr. Chairman, thank you, Representative Dollar for the backhanded support. [laughs] I move for a favorable report, and I did not see on line that it had a serial referral; has that been added? [SPEAKER CHANGE] It has been determined that it has had a serial referral to Finance, a referral to Finance, by the Rules. [SPEAKER CHANGE] That's correct. The Chairman: Motion is properly in force. All those in favor say aye; all those opposed say no. In the opinion of the Chair, the ayes have it, the ayes do have it. [gavel] [SPEAKER CHANGE] Thank you, Mr. Chairman, thank you, committee, and thank you for the spirited debate. The Chairman: We are displace House Bill 201. Please check your calendars. We will reschedule. One of the beauties of the House Commerce Committee is that the House Commerce Committee meets upon the call of the Chair. So be watchful for your emails, because the Chair will call a meeting tomorrow on House Bill 201, but I will relinquish the gavel to present the next two bills. The Chairman Pro Tempore: Thank you, Mr. Chair. Next up will be House Bill 65, short title, amend pharmacy laws. We have PCS before us. Representative Catlin makes the motion. All in favor say aye. Mr. Chairman, you have the floor. The Chairman: Thank you, Mr. Chairman. It's a pleasure for me to present House Bill 65, amend pharmacy laws. At this time I would like to make a motion for a favorable report to the proposed committee substitute. Section one of the legislation deals with establishing certified pharmacy technicians. Currently pharmacy technicians have to have a job in order to register with the Board of Pharmacy. This creates a situation where a certified pharmacy technician, someone whose training has already been verified through the certification process, can register with the Board of Pharmacy without having to get a job, so we can get the individual qualified before they register with the Board of Pharmacy. Section 5 of the legislation, if I could skip to that section -- Representative Susan Martin brought this to my attention -- North Carolina schedule two prescriptions, the written prescription does not expire; it has no expiration date. So I'm going to let that one sink in for a little bit. The most controlled medications -- the written prescription never...

Expires so we're adding an expiration dates 11th avenue when they expire six months from the neighboring as chairman of Senator Slade Gorton stamina for Federal house of six and five of the jurors that we have a motion in from the story from over simmering will give you one more section is sun has been dealing with politics and we had all of the last round and this is a another way that when we were close a caller said improved calling process for local before a state opera situation legislation against the lasting questions progression to start to have noticed stewards in Colorado to look as quick nightmare? And all the addition of the six finalists for a certain fraud indictment would be a national record of 20 units. (SPEAKER CHANGES) You can come down at mission and went on I actually does this affect gallon four of the year certainly should assist the fact that the service so effect scheduled two medications you're correct so this is a schedule to miss a qualities example of oxycontin Curtis said enroll the highest bid for the highest addiction level political scandal two medications current law there is no expiration date from the day trading as low as six months expiration date for the first something with one of which is an anomaly in the wall Streeters for lower schedule medications schedules threes and fours on Valium hike ago, I couldn't be more boring or on the schedule threes and fours have an expiration date 61 for some reason scheduled to start of the Nynex parishioners said she saw routing Data Storage and would not impact your prescriptions for the central bank form into the regular nonscheduled medications are listed the system to add additional quick, for the skater two video sculptor Dr. (SPEAKER CHANGES) and forces average try to make sure the convertible ballot battle will feature the solicitation is something I can understand the addiction or by a Federal law degree from the schedule two medications written that there are only fools on behalf of a hardcopy would restrict me, thinking medications rid itself is just limit the amount found a schedule to medication telling the field without leadership in six months after the Southern Sierra Leone, for 30 days was so it's very limited Guerra said roger talk about your fall automatically so basically a share on a scheduled to go to the attack another six months by the media have to go back in for a new prescription and after every ounce of you can buy from us for 30% turnout in which you can get into our daughters for every town was to medication was unavailable but this one, questioned with the supplied to the ground before make a difference this applies to call schedule two medications people to prescriptions wouldn't say North Carolina, Steve Ballmer percent and Asian and American history for you not schedule to medications . You're not identify the hardcopy prescription returned 12 months' supply of scale to make additional questions is personnel are a distant to this clear on why you get a you get a prescription from the Dr. and 30 days may be supported and supply the July of this number three steals so does it affect the refill number you can, which can refill beyond you can get six months beyond six months with a retail outlet with the current schedule two medications there are a copy of the schedule two medication and not have been refills on a firewall is an oddity every time you do get rid our country this fall with an expiration date only restriction so it ?? (SPEAKER CHANGES) can be built six months after the beta three beautiful questions tsunami of the motion problem before this is for Federal Court house bill would oppose the substitute the house bill 675 unstable to the original against the former altar say like all those wishing passes that figure as many as I have one other bill health bill 680 S this as a sophomore from the funniest calls it has 8:00 PM at this established as an exemption so that we nor shall I can be a leader in what's called a crowd funding its own sons away to have small dollar invested ??....

For small business to raise capital. Congressmen Patrick McHenry… [SPEAKER CHANGES] Representative Murray. [SPEAKER CHANGES] Yes sir? [SPEAKER CHANGES] We have a PCS before us. Representative Brown makes the motion. All in favor say aye. Continue. [SPEAKER CHANGES] Congressmen Patrick McHenry sponsored this legislation in congress and the Federal Government is working on establishing rules to the Security Exchange Commission and it’s been in the law for over a year and no rules have been promulgated so the advocates for this idea are going State by State to get this exemption, this investment exemption in the State of North Carolina. Kansas has already passed this law. Georgia’s already passed this law. And I have a constituent here from Morrisville who brought this idea to me and he’s Mark Easley. Mr. Chairman, I believe we’ve got this room until noon so if you could recognize my constituent who brought this idea to me, Mark Easley I’d appreciate it. [SPEAKER CHANGES] Mr. Chairman, do members have the PCS or am I just the only one? [SPEAKER CHANGES] Who’s asking the question? [SPEAKER CHANGES] Representative Starnes, I have the PCS, nobody else has the PCS? If you have a PCS raise your hand. The majority of the committee has the PCS. If the Sergeant of Arms could provide a PCS to Representative Starnes I’d appreciate it. Mr. Easley if you could state your name for the record. [SPEAKER CHANGES] Push the button Mark. [SPEAKER CHANGES] Excuse me. I’m Mark Easley. I’m a local Angle Investor and start up adviser and part of the job 10CT that initiated this legislative effort. I want to briefly describe and summarize what this exemption is and what it is not. First what it is not. It is not some radical change to the North Carolina or Federal Securities Laws. Equity Investment Crowd Funding is also not like Kick Starter which might make you think people will be able to go up to any crowd funding website and click on buy and get some shares in a start up. No, no, far from it. So what is it? It is definition of a new and simple securities law exemption that will make it much easier for small businesses across our State to find investors and sell stock in their company using Equity Investment Crowd Funding. The normal security laws still apply for selling equities but the NC jobs exemption allows 2 things that are new. Number 1, the exemption allows unaccredited North Carolina investors, in other words, all your friends and neighbors, to buy equities from the North Carolina issuing company provided the disclosure reporting registration and limits described in the exemption are allowed. Number 2 new thing, the North Carolina issuer is allowed to promote the offering via the web or any other method provided that the disclosure reporting registration and limits described in the exemption are followed. That’s it, very simple. So what will happen? A North Carolina entrepreneur will do what they always do to get financing, which is take their idea, turn it into a plan, figure out how much money they need and write it all down in a way that a potential investor can understand. Then they will get assistance in turning that into a sale of equities offering that meets all the requirements of the exemption and North Carolina Securities Law. They will also open up an escrow account in a bank or other escrow providers that will hold the invested funds until the minimum amount required by the offering is raised before it can be turned over to the company. At that point, they will register with the Secretary of States Office to let them know that they will be using the exemption. [SPEAKER CHANGES] Mark, I appreciate you being here. We’ve got to be out of here in less than 5 minutes. [SPEAKER CHANGES] So let me just summarize. After that, they’ll find an investor and they will do a private sale, direct sale from the company to the investor using the standard documentation and equity securities documentation that we use today. It’s really that simple. [SPEAKER CHANGES] Thank you for your comments. Thanks Mark. [SPEAKER CHANGES] Representative Shepherd. [SPEAKER CHANGES] Yes sir, Mr. Chair. For a motion that is appropriate in time. [SPEAKER CHANGES] Thank you Representative Brown. [SPEAKER CHANGES] It’s a brilliant bill. I was going to do the same thing. [SPEAKER CHANGES] Representative Bob Garner. Any questions from Representative Avila? [SPEAKER CHANGES] Just one quick question in a illustration example. Give me one example of what their exempted from that would help in this situation. [SPEAKER CHANGES] A lot of the Broker dealer aspects where you have to register with the Secretary of your State and all that kind of stuff. We have worked with the Secretary of States Office to make sure that this exemption, they still have a filing that they have to do, the Secretary of State but your basically talking about a mom and pop type operation using a web based platform to raise capital in small investments. We’re talking…in the current version it’s $2000.00, some of the States have gone up to $5000.00 but small investments and to help using

… the Internet to help capitalize small businesses. [SPEAKER CHANGES] Representative Starnes [SPEAKER CHANGES] Thank you. I’ve been a securities dealer and I’ll just be honest with you. I don’t want to go down this road. You’re talking about some rather risky investments and you’re allowing some people to make some sales to your friends and your neighbors without the proper disclosures or oversight of the normal course of securities that are offered in this state, and it better be buyer beware. You’re going down a road that we haven’t been down before and I’m not going to vote for it. There are consumer protections in this legislation for that escrow is not issued to the company until they reach a certain threshold and that they have to have a certain number of ??, and so we are putting in some consumer protections, but when Congressman McHenry sponsored this legislation ?? in this legislation. [SPEAKER CHANGES] Representative Terry [SPEAKER CHANGES] Did you say that there is a SEC report that is pending about this? [SPEAKER CHANGES] This bill has been signed by President Obama over a year ago and the Securities and Exchange Commission hasn’t promulgated any federal regulations on this and that’s why we have a 2017 sunset on this legislation because by 2017 we expect that the Securities and Exchange Commission will have rules promulgated and implemented for the nation, but in the meantime if we can help our small businesses in North Carolina in the interim, we think that this SEC will be available and the rules will be promulgated. [SPEAKER CHANGES] I just worry about that impact. [SPEAKER CHANGES] We have two more questions then we’ll hear the motion. Representative Hall. Representative Stone. [SPEAKER CHANGES] I just want to make sure I understand this. By 2017 they are going to come up with the rules. Is it our predication that by 2017 the federal Securities and Exchange Commission will enable crowd funding at the Federal level. We don’t want to inhibit small businesses to use crowd funding in our state while we are waiting on the federal government to promulgate regulations. [SPEAKER CHANGES] They will be able to go ahead and do crowd funding in North Carolina even though we are waiting on the rules from the Federal government. [SPEAKER CHANGES] We are more nimble, our secretaries state office will move at a rate faster than the federal government to help enable crowd funding in our state, and by 2017 this bill will expire and the federal government regulations will supersede. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Please sir. Is this bill have a ?? referral? [SPEAKER CHANGES] This bill goes to finance. [SPEAKER CHANGES] That’s right. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Representative Shepard, your recognized for your motion. [SPEAKER CHANGES] Yes sir Mr. Chair, I’d like to make a motion that we accept the proposed ?? substitute the house bill 680 unfavorable to the original with referral to finance. [SPEAKER CHANGES] Motion is properly before us. All in favor say aye. [SPEAKER CHANGES] Aye [SPEAKER CHANGES] All opposed say no. [SPEAKER CHANGES] No. [SPEAKER CHANGES] Bill passes. We are adjourned. Those of you who that are on the full regulator reform committees, hang around.