Like so many bills this year in the General Assembly, this one had an appealing title: “Protecting and Putting North Carolina Back to Work Act.” But the thrust of the proposed legislation was to reduce insurance premiums businesses pay for Worker Compensation Insurance and to reduce the outflow of money from self-funded programs at large corporations.
The original bill would have restricted qualifications for workers getting the 500 weeks (about nine and a half years) maximum benefits for serious debilitating injuries and closed delays in medical reports. Stricter guidelines for returning to work when “suitable employment” is offered are included.
Organizations including the N.C. Chamber and the N.C. Medical Society supported the bill. Injured workers, their attorneys, and some social service agencies were strongly opposed. At initial meetings of the House Tort Reform Committee, chaired by Rep. Jonathan Rhyne of Lincolnton, opponents were vocal—as were the advocates.
This week, after almost a month of closed door meetings, the organizations came together with a compromise version which was adopted. Neither side got 100 percent of what they wanted. But the bottom line is that payouts for Worker Compensation claims will be under scrutiny with tighter controls. This assumes the Senate will concur with the House bill sponsored by a relieved Rep. Dale Folwell of Forsyth who repeatedly insisted North Carolina was not competitive with other states because of high costs associated with worker compensation.
BUDGET GRINDS FORWARD
The State Senate Appropriations Committee rolled out its budget this week, with spending about $120 million more in education than in the House version. Public schools and the university system got a little more money—community colleges at little less. Even so, the line items for the Textile Technology Center and the Manufacturing Solutions Center remained unchanged, each getting a 10 percent “haircut.” The MSC appropriation now is $515,000 and the Textile Center $821,205.
Next step: approval by the Senate Tuesday. Then conferees. Then approval of a compromised House-Senate plan. And then…consideration by Gov. Perdue who keeps a veto stamp on her desk. That is another story.
PEEK-A-BOO BILL
On Thursday, the House Finance Committee agenda included a bill entitled “Update/Modernize Physical Therapy Act.” The sponsor, Rep. Edgar Starnes of Caldwell, introduced a substitute version which he called a “jobs bill.” The act, approved by the GOP-dominated committee, exempts from taxes the first $50,000 in income for businesses with revenue of under $800,000.
Starnes told the committee it is estimated 250,000 North Carolina small businesses will benefit, but the loss of revenue to the state over the next biennium will be over $400 million. The committee approved the bill with a bipartisan vote.