a worker as an employee versus an independent contractor; and 2) the new state penalties for misclassifying a worker as an independent contractor to avoid workers compensation insurance, tax laws, and other legal requirements. This bill would establish a new Classification Division” within the Department of Revenue that would receive “Employee and investigate reports of misclassification, assess civil penalties, among other new duties. One of the bill sponsors estimated a $191 million annual savings to the state with the passage of this legislation; however, the Department of Revenue would not verify that estimate during the committee meeting. Taxpayer Bill of Rights The Senate Finance Committee approved this bill on Thursday. This legislation would put to the voters proposed amendments to the state constitution to set the maximum tax rate on incomes at five percent, among other things. It would also require that an emergency reserve fund is available in case of revenue shortfalls and it limits growth on state spending. The State Treasurer has expressed concerns that this bill would endanger NC’s AAA bond rating due to potential limits on the state’s financial and budgetary flexibility. Prohibit Closure of Laurel Elementary (Proposed Committee Substitute) On Thursday, the House Committee on Rules, Calendar, and Operations heard draft legislation that would prohibit the Madison County Board of Education from closing Laurel Elementary School. The proposed bill was withdrawn from committee (and not available online), but will likely be heard again. The bill would require the Board to continue operating Laurel Elementary through the 2016-17 school year or convert it to a charter school, whichever occurs first. The bill sponsor indicated that the recent closure of this school will force around 50 students to travel upwards of 1.5 hours to attend the nearest elementary school. No school board member or representative was present to comment. Other Bills with Action This Week: Achieving a Better Life Experience Act House concurred with Senate changes Presented to the Governor Waive Tuition/Fallen Officer was Guardian Approved by House Committee on Education Universities – Placed on House calendar for Monday, August 10 Meetings Next Week (August 10-14): TBA Contact Information: Rachel E. Beaulieu Legislative & Community Relations Director Department of Public Instruction 919-807-4035
a worker as an employee versus an independent contractor; and 2) the new state penalties for misclassifying a worker as an independent contractor to avoid workers compensation insurance, tax laws, and other legal requirements. This bill would establish a new “Employee Classification Division” within the Department of Revenue that would receive and investigate reports of misclassification, assess civil penalties, among other new duties. One of the bill sponsors estimated a $191 million annual savings to the state with the passage of this legislation; however, the Department of Revenue would not verify that estimate during the committee meeting. Taxpayer Bill of Rights The Senate Finance Committee approved this bill on Thursday. This legislation would put to the voters proposed amendments to the state constitution to set the maximum tax rate on incomes at five percent, among other things. It would also require that an emergency reserve fund is available in case of revenue shortfalls and it limits growth on state spending. The State Treasurer has expressed concerns that this bill would endanger NC’s AAA bond rating due to potential limits on the state’s financial and budgetary flexibility. Prohibit Closure of Laurel Elementary (Proposed Committee Substitute) On Thursday, the House Committee on Rules, Calendar, and Operations heard draft legislation that would prohibit the Madison County Board of Education from closing Laurel Elementary School. The proposed bill was withdrawn from committee (and not available online), but will likely be heard again. The bill would require the Board to continue operating Laurel Elementary through the 2016-17 school year or convert it to a charter school, whichever occurs first. The bill sponsor indicated that the recent closure of this school will force around 50 students to travel upwards of 1.5 hours to attend the nearest elementary school. No school board member or representative was present to comment. Other Bills with Action This Week: Achieving a Better Life Experience Act House concurred with Senate changes Presented to the Governor Waive Tuition/Fallen Officer was Guardian Approved by House Committee on Education – Universities Placed on House calendar for Monday, August 10 Meetings Next Week (August 10-14): TBA Contact Information: Rachel E. Beaulieu Department of Public Instruction Legislative & Community Relations Director 919-807-4035