GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	3
HOUSE BILL 1430
 Committee Substitute Favorable 6/25/01 
 Committee Substitute #2 Favorable 7/4/01 

Short Title:	Budget Fee Provisions.	()	
Sponsors:	     	
Referred to:	     	
May 9, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE COMMISSIONER OF LABOR TO ESTABLISH CERTAIN FEES; TO ALLOW CERTAIN COUNTIES TO ACQUIRE PROPERTY FOR PUBLIC SCHOOLS; TO LIMIT THE AUTHORITY OF AGENCIES TO ESTABLISH OR INCREASE FEES CHARGED TO THE PUBLIC; AND TO EXEMPT PRISONS LOCATED ON LAND OWNED BY THE STATE AND BUILT PURSUANT TO A CONTRACT WITH THE STATE FROM PROPERTY TAX. 

The General Assembly of North Carolina enacts:
LABOR COMMISSIONER FEE AUTHORITY
SECTION 1.(a)  G.S. 95‑105 and G.S. 95‑106 are repealed.
SECTION 1.(b)  G.S. 95‑107 reads as rewritten:
"§ 95‑107.  Assessment and collection of fees; certificates of safe operation.
The assessment of the fees  adopted by the Commissioner pursuant to G.S. 95-110.5 and G.S. 95-111.4 shall be made against the owner or operator of  the equipment and may be collected at the time of inspection. If the fees are not collected at the time of inspection, the Department must bill the owner or operator of the equipment for the amount of the fee assessed  for the inspection of the equipment and the amount assessed is payable by the owner or operator of the equipment upon receipt of the bill. Certificates of safe operation may be withheld by the Department of Labor until such time as the assessed fees are collected."
SECTION 1.(c)  G.S. 95‑108 reads as rewritten:
"§ 95‑108.  Disposition of fees.
All fees collected by the Department of Labor pursuant to  G.S. 95-110.5 and G.S. 95-111.4 shall be deposited with the State Treasurer and shall be used exclusively for inspection  and certification purposes."
SECTION 1.(d)  G.S. 95‑110.5 is amended by adding a new subdivision to read:
"(20)	To establish fees not to exceed two hundred dollars ($200.00) for the inspection and issuance of certificates of operation for all devices and equipment subject to this Article upon installation or alteration, for each follow-up inspection, and for periodic inspections thereafter."
SECTION 1.(e)  G.S. 95‑111.4 is amended by adding a new subdivision to read:
"(19)	To establish fees not to exceed two hundred fifty dollars ($250.00) for the inspection and issuance of certificates of operation for devices subject to this Article that are in use."
SECTION 1.(f)  Subsection (a) of this section becomes effective October 1, 2001.  The remainder of this section is effective when it becomes law.

certain COUNTIES MAY ACQUIRE PROPERTY FOR PUBLIC SCHOOLS
SECTION 2.(a)  G.S. 153A‑158.1(e), as amended by S.L. 2001‑76, reads as rewritten:
"(e)	Scope. – This section applies to Alamance, Alexander, Alleghany, Anson, Ashe, Avery, Bertie, Bladen, Brunswick, Burke, Cabarrus, Caldwell, Camden, Carteret, Catawba, Chatham, Cherokee, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Davidson, Davie, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gaston, Gates, Graham, Greene, Guilford, Halifax, Harnett, Haywood, Henderson, Hoke, Hyde, Iredell, Jackson, Johnston, Jones, Lee, Lenoir, Lincoln, Macon, Madison, Martin, McDowell, Mecklenburg, Mitchell, Montgomery, Moore, Nash, New Hanover, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Randolph, Richmond, Robeson, Rockingham, Rowan, Rutherford, Sampson, Scotland, Stanly, Stokes, Surry, Transylvania, Union, Vance, Wake, Watauga, Wayne, Wilkes, Wilson, and Yadkin Counties."
SECTION 2.(b)  This section is effective when it becomes law.

GENERAL ASSEMBLY to authorize agency FEES
SECTION 3.(a)  G.S. 12‑3.1 reads as rewritten:
"§ 12‑3.1.  Fees and charges by agencies.
(a)	Authority. – Only the General Assembly has the power to authorize an agency to establish or increase a fee or charge for the rendering of any service or fulfilling of any duty to the public. In the construction of a statute, unless that construction would be inconsistent with the manifest intent of the General Assembly or repugnant to the context of the statute, the legislative grant of authority to an agency to make and promulgate rules shall not be construed as a grant of authority to the agency to establish by rule a fee or a charge for the rendering of any service or fulfilling of any duty to the public, unless the statute expressly provides for the grant of authority to establish a fee or charge for that specific service. Notwithstanding any other law, no agency may establish or increase a fee or charge by rule without express authorization by the General Assembly of the fee or charge or range of fees or charges to be established or increased, or an authorization by the General Assembly of reasonable fees to be established or increased, and the purpose of that fee or charge.
(b)	Definitions. – The following definitions apply in this section:
(1)	Agency. – Every  agency, institution, board, commission, bureau, department, division, council, member of the Council of State, or officer of the legislative, executive or judicial branches of State government. The term does not include counties, cities, towns, villages, other municipal corporations or political subdivisions of the State or any agencies of these subdivisions, the University of North Carolina, community colleges, hospitals, county or city boards of education, other local public districts, units, or bodies of any kind, or private corporations created by act of the General Assembly.
(2)	Rule. – Every  rule, regulation, ordinance, standard, and amendment thereto adopted by any agency, including rules and regulations regarding substantive matters, standards for products, procedural rules for complying with statutory or regulatory authority or requirements and executive orders of the Governor.
(c)	Exceptions. – This section does not apply to any of the following:
(1)	Rules establishing fees or charges to State, federal or local governmental units.
(2)	A reasonable fee or charge for copying, transcripts of public hearings, State publications, or mailing a document or other item.
(3)	Reasonable registration fees covering the cost of a conference or workshop.
(4)	Reasonable user fees covering the cost of providing data processing services."
SECTION 3.(b)  This section is effective when it becomes law.

Prison Property Tax Exemption
SECTION 4.(a)  G.S. 105‑275 is amended by adding a new subdivision to read:
"§ 105‑275.  Property classified and excluded from the tax base.
The following classes of property are hereby designated special classes under authority of Article V, Sec. 2(2), of the North Carolina Constitution and shall not be listed, appraised, assessed, or taxed:
…
(39a)	A correctional facility, including construction in progress, that is located on land owned by the State and is constructed pursuant to a contract with the State, and any leasehold interest in the land owned by the State upon which the correctional facility is located."
SECTION 4.(b)  This section is effective for taxes imposed for taxable years beginning on or after July 1, 2001.