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H148 (Congestion Relief/Intermodal Transport Fund) passed, granting authority to rural counties to hold a referendum to increase their sales tax for the specific use of mass transit. ./-MODERNIZE ANNEXATION LAWS -Support legislation modernizing the annexation laws as follows: • Requiring the development of joint utility service plans for urbanizing areas; • Requiring cities to reimburse counties for the loss of sales tax due to an annexation • Increasing the degree of urbanization required to annex property; • Requiring a referendum on proposed involuntary annexations in areas where public services -water and sewer and solid waste -are already in place; and • Requiring the direct provision of municipal water and sewer services to customers within three years of an annexation. • Providing that counties have the option of continuing to provide utilities to annexed areas. • Setting the effective date for involuntary annexations to be June 30 following the date of adoption or final resolution of an appeal. H524 (Annexation-Omnibus Changes), sponsored by Rep. Bruce Goforth (Buncombe), passed the House but did not see any ac- tion in the Senate. The bill includes many of the changes in the annexation law desired by the Association. The bill increases the density standards for urbanizing areas, requires the provision of water and sewer services in the annexed area within three years, establishes June 30 following the adoption of an annexation ordinance as the effective date, requires the development of joint utility services plans, and establishes a procedure for a referendum if at least 15 percent of the total of the registered voters of the municipality and proposed annexation area sign a petition. The bill does not require the annexing municipality to reimburse the loss of any sales tax revenues due to the annexation, but it does require oversight by the Local Government Commission, including a fiscal assessment of the impact of each involuntary annexation. If a municipality involuntarily annexes an area and does not provide the stated services within three years, the LGC is required to abate all ad valorem property taxes and prohibit further annexation by that municipality until the municipality provides the stated services. H524 passed 3rd reading in the House, but in an uncommon procedural quirk, the bill remains in the House because it has not been received by the Senate. Because H524 affects appropriations, it remains eligible for the 2010 Session. ./ COLLECTIVE BARGAINING FOR PUBLIC EMPLOYEES -Oppose legislation authorizing local governments to enter into collective bargaining agreements with public employees, or mandating dues check-off programs. Several bills were filed that would have impacted North Carolina's collective bargaining laws. S427 (Restore Contract Rights to State/ Local) would have repealed the state's prohibition against collective bargaining and would have made other statutory changes allowing. employees' and retirees' associations that engage in collective bargaining with the state to continue to use payroll deductions. No action was taken on S427, sponsored by Sen. Ellie Kinnaird (Orange), or the companion House Bill (H750, sponsored by Reps. Dan Blue (Wake), Rick Glazier (Cumberland), Lorene Coates (Rowan) and Ty Harrell (Wake). The legislation remains eligible for the 2010 Session. H1266 (Law Enforcement Officer Protection Act), sponsored by Rep. Earl Jones (Guilford), would grant law enforcement officers the right to representation by a representative of the officer's chosen employee organization during an interrogation or administrative investigation that may result in disciplinary action. H1266 was viewed as a potential advance by union interest groups. H1266 did not pass this session and is not eligible during the 2010 Session. ./-WORKERS' COMPENSATION REFORM -Support legislation to reform North Carolina's Workers' Compensation system to reduce disability findings and open-ended streams of payment, to address the trend in favor of long-term disability findings, to diminish control over these findings on the part of claimants and their legal representatives, and to curtail adoption of rules that limit return-to-work efforts. H945, the Study Act, included astudy -Issues Relating to the Duration of Compensation for Temporary Total Disability Under the Workers' Compensation Act. Recommendation from the study committee will be eligible for the 2010 session. ./-RURAL TRANSPORTATION PLANNING ORGANIZATIONS -Support legislation providing continued funding of rural transportation planning organizations (RPOs), enabling increased participation in transportation planning for the state's non-urban areas by local gov- ernments. Long-range transportation plans drafted by RPOs or MPOs should be submitted to member boards of county commissioners for review and comment prior to being submitted to the North Carolina Department of Transportation. X SECOND PRIMARY -Seek legislation to eliminate second primary elections. G-4 Page 139