Gov. Josh Stein vetoes charter school, state auditor, and electric utility bills

RALEIGH, N.C. (WNCN) — North Carolina Gov. Josh Stein’s office said three of the 10 bills on his desk were vetoed Wednesday.

One of the bills vetoed was Senate Bill 254, which amends charter school laws to give the Charter School Review Board more power.

Changes in the bill include giving the Charter School Review Board the ability to approve rules and policies at charter schools instead of only being able to provide recommendations to the North Carolina State Board of Education. The bill also transfers the North Carolina Superintendent of Public Instruction’s powers over charter school funding and enrollment to the Charter School Review Board.

“Senate Bill 254 is an unconstitutional infringement on the authority of the State Board of Education and the Superintendent of Public Instruction,” Stein said in a statement. “Additionally, it weakens accountability of charter schools when every North Carolina student deserves excellent public schools, whether traditional or charter.”

North Carolina Coalition for Charter Schools Executive Director Dave Machado responded to the veto in a statement:

“More than 150,000 North Carolina families now rely on public charter schools to educate their children. 

“The success of public charter schools hinges on their flexibility and autonomy. The legislature rightly placed at the front line of charter school regulation and oversight a body of public charter school experts insulated from political maneuverings that have hamstrung the charter school sector in other states. 

“The Constitution clearly authorizes the legislature to do this. The operative words are literally, ‘subject to laws enacted by the General Assembly’.

“On behalf of the 150,000 families who rely on charter schools, we hope the legislature successfully overrides Gov. Stein’s veto.”

Stein also vetoed House Bill 549, which increases the powers of the state auditor to acquire and access information, along with making other changes to the auditor’s office and giving the Department of Revenue the power of enforcing debt collections owed to state agencies through levy and sale and attachment and garnishment.

On his veto, Stein said in a statement, “House Bill 549 would grant the auditor sweeping access to the data and records of any private corporation that accepts any amount of state funding. Giving the auditor this intrusive power may undermine our state’s efforts to recruit businesses to North Carolina.

“Additionally, the bill would remove the Office of State Auditor from the state’s cybersecurity efforts led by the Department of Information Technology, putting North Carolinians’ personal identifying information at heightened risk of a breach,” the governor continued in his statement.

In response to the veto, State Auditor Dave Boliek issued the following statement:

“Our agency bill was written to protect the independence of the State Auditor’s Office. Throughout the process we were transparent, incorporating feedback from legislators and the governor’s office.

“The autonomy and independence of watchdog agencies like the State Auditor’s Office, especially with regard to information technology and our ability to examine data when conducting audits, is critical to our mission.

“Gov. Stein’s veto undercuts the important principles of accountability and transparency that taxpayers expect from their government. Further, as the governor is aware, our office already has the authority to hold those who receive tax dollars accountable. I have confidence the legislature will stand up for these principles and override the governor’s veto.”

The third bill vetoed was Senate Bill 266, which eliminates the carbon reduction interim date for certain public utilities, allows an alternative cost recovery mechanism to finance the cost of baseload electric generating facilities, modifies the statutes that govern the cost recovery of fuel-related charges and performance-based ratemaking, and codifies a provision that authorizes the costs of the retirement of coal-fired generating units to be secured.

“This summer’s record heat and soaring utility bills has shown that we need to focus on lowering electricity costs for working families—not raising them,” Stein said in a statement. “And as our state continues to grow, we need to diversify our energy portfolio so that we are not overly reliant on natural gas and its volatile fuel markets.

“Recent independent analysis of Senate Bill 266 shows that this bill could cost North Carolina ratepayers up to $23 billion through 2050 due to higher fuel costs,” he continued in his statement. “This bill not only makes everyone’s utility bills more expensive, but it also shifts the cost of electricity from large industrial users onto the backs of regular people—families will pay more so that industry pays less.

“Additionally, this bill walks back our state’s commitment to reduce carbon emissions, sending the wrong signal to businesses that want to be a part of our clean energy economy. My job is to do everything in my power to lower costs and grow the economy. This bill fails that test.”

North Carolina Democratic Party Chair Anderson Clayton said in a statement, “Gov. Stein’s veto standing up against rising energy costs couldn’t have come at a better time. SB266 would cause working people to pay more, while protecting large scale corporations and big industry. After the last few days of intense heat, all North Carolinians should be able to agree that having affordable energy needs to be a priority.

“As Washington threatens tens of thousands of clean energy jobs, North Carolina should be working to protect this growing industry—not halt progress to reduce carbon emissions and discourage clean energy companies from setting up shop here,” she said in her statement.

The three bills will return before the North Carolina General Assembly, which will vote to override or uphold the vetoes.

Stein also signed seven bills into law:

• House Bill 620, which modifies the provisions affecting North Carolina courts and their administrative offices, including prohibiting Administrative Office of the Court forms from being modified without proper notice, establishing criteria for a name change to be private, giving superior court more power over secure custody orders, and requiring a proceeding to suspend or remove a superior court clerk
• House Bill 928, which allows physical therapists to evaluate student athlete head injuries during athletic events
• House Bill 768, which directs the North Carolina Building Code Council to adopt rules clarifying exemptions from in-building emergency responder communication coverage requirements, determines how to fill vacancies on certain sanitary boards, and establishes statutory requirements for the Department of Environmental Quality to handle the applications of projects eligible for nationwide or regional permits
• Senate Bill 472, which changes the process for the Department of Environmental Quality to issue water quality certifications, reforms upland basin marina permits, and clarifies certain man-made ditches are not covered under the coastal area management act
• Senate Bill 710, which modernizes the Alarms System Licensing Act, changes Private Protective Services Board laws, gives the ABC Commission more oversight authority, allows law enforcement officers’ personnel records to be reviewed when they transfer agencies, and modifies the provisions of summary court martials and the appointments of military judges in the North Carolina National Guard
• Senate Bill 690, which modifies the licensing procedures of the North Carolina Appraisers Act, authorizes brokers to register with multiple dealers under common ownership control, modifies how a landlord may recover out-of-pocket expenses from a tenant, and allows a buyer’s agent compensation to be part of a purchase offer
• Senate Bill 387, which amends the Brownfields Property Reuse Act and the brownfields property tax benefit, including establishing the percent of appraised value excluded each year