Latest Meeting of the House Regulatory Reform Committee

Jeff, a white man with grey hair, wears a white shirt, blue and white striped tie and black blazer. By Jeffrey P. Gray 

The House Regulatory Reform Committee met on Tuesday, March 11, this time with a specific topic on the agenda: occupational and professional licensing. Two outside speakers, both with similar perspectives, made presentations.

Jon Sanders, Director of the Center for Food, Power and Life, a research arm of the John Locke Foundation, provided statistics on the number of occupations requiring licensure in North Carolina (19%) and North Carolina’s ranking among all the states as to the number of occupations requiring some type of license, registration, or certifications to engage in a particular occupation (11th). Based on the Center’s many years of study, and the 2022 study by the General Assembly’s then Program Evaluation Division, Mr. Sanders suggested a layered policy of alternatives for licensure:

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Summary of Regulatory Reform Committee Meeting

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

On Tuesday, February 25, 2025, the Regulatory Reform Committee met. Andy Ellen, General Counsel of the Retail Merchants Association, was the first presenter. He characterized the environment as dire and needing for certainty and consistency in statutes addressing small businesses. He and Representative Hager supported voluntary environmental regulation concerning plastic disposal. One of his slides includes “what [they] are hearing from their members” regarding rules, rulemaking, and agencies.

Chris Millis, Former Chair of this committee and now lobbyist for the North Carolina Home Builders Association, was the next presenter. His presentation included the following: there has been an average increase in the cost of housing of $160,000. The average mortgage is $420,000, requiring an income of $130,000. This amount is well above the average household income in North Carolina and has a devastating effect upon most individuals being able to qualify for a mortgage. Other issues which also have a devastating effect upon housing development are zoning and permits. In most municipalities, developers are required to enter into negotiations to obtain voluntary consent from the municipal and county governments relating to appearance controls, traffic controls, park support and other unrelated concerns to obtain the voluntary consent. On average, it takes 18 months to deal with these concerns. On average, it takes between three to four years to move from the purchase of property to develop and the time that the homes are occupied. Efficiency in the permitting process is absolutely necessary for reducing the time for permitting. Adequate staffing in permitting departments is key to accomplishing timely permitting. Reform concerning high-density municipal development is extremely needed.

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Changes to Notary Act and Rules That Affect Attorneys Now

By Ann B. Wall

Emergency Video Notarization (EVN) Alert

EVN expired on June 30, 2024, at 12:01 a.m. House Bill 556, which would have extended EVN until July 1, 2025, has been vetoed over a matter unrelated to notarization. Unless the General Assembly should override the veto or another legislative action is taken to extend EVN, it is not law. Do not perform or request an EVN by a North Carolina notary public until this changes. Current law requires both traditional and electronic notarization to be done in person.

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Summary of February 27, 2024, Administrative Procedures Oversight (APO) Committee Meeting

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

The APO Committee is chaired by Rep. Sarah Stevens. Sen. Galey is Co-Chair and was present along with Committee Members Sen. Mayfield, Sen. Moffit, Sen, Sanderson, Rep. Longest and Rep. Dahle.

A report on the Periodic Review of Existing Rules (Existing Rules Review or ERR) was presented by Codifier of Rules Ashley Berger Synder and RRC Chair Jeanette Doran. The first step of the review, which will be completed in three years, is the classification of rules. Sen. Mayfield inquired if the RRC could intervene if the agencies classified rules in the middle bucket which was necessary without a substantive public interest. Synder responded with a review of the three buckets for classification in the first round of ERR, how each bucket was handled, and noted that the General Assembly amended the process to delete the middle bucket. Rep. Longest asked how many rules were classified in the middle bucket. Doran responded they did not have numbers for this question but could get them. Doran went on to state that the APA defines public comment in a much narrower fashion than might be expected and that only comments on a rule could be calculated. Rep. Stevens asked what groups are exempt from the review. Sen Mayfield asked about the process of rule making for the exempt groups. Synder responded with examples of exempt groups: the State Bar, the Utilities Commission, and the Lottery Commission. The exemption is defined by statute, and each of the exempt groups have processes for review of rules. Rep. Stevens mentioned problems with HHS and DPI having not complied with the rules review process. Doran indicated they did not know the number of rules issues, and the two agencies had too many subdivisions to determine a number. Rep. Stevens asked for an explanation of the difference between rules and policy.

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Nominations for Administrative Law Award for Excellence

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

The Administrative Law Section established the Award for Excellence to recognize members of the section who have made significant and lasting contributions to the practice of administrative law. These individuals are experienced members of the profession and are in good standing concerning their practice. The recipient must have practiced administrative law for five years. The nomination letter should indicate the above criteria and specific examples of how the nominee has made significant, lasting contributions.

Some of the prior recipients of the award are Julian Mann, Fred Morrison, Nick Fountain, Jack Nichols, Dan McLawhorn, Molly Masich, Ann Wall and Jeff Grey.

The deadline for receiving the nominations is Friday, February 16. For more information and to complete your nomination, visit the Administrative Law Award for Excellence webpage. For questions, email BreAnne Shieh.

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The Privilege of Doing Business

Fred, a man with brown hair, wears a pale blue shirt, red and black striped tie, and a black suit.By Fred Moreno

For decades, North Carolina citizens have had the opportunity to work in several different industries and practices. Certain dealings require that person to first obtain a professional license. This is typically done by passing an exam and satisfying certain education or training requirements. Once all required conditions are completed to obtain a required professional license, the North Carolina citizen is well on their way to pursue success in their chosen field. However, it is typically soon after obtaining such a license that the person is first introduced to the North Carolina Privilege Tax. The North Carolina Privilege Tax is a tax imposed for the purpose of “carrying on the business, exercising the privilege, or doing the act named.”[1] This tax is required to be paid on an annual basis at a cost of $50. Most professional licensees regulated by occupational licensing boards qualify as individuals subject to the annual North Carolina Privilege Tax. This includes veterinarians, physicians, real estate brokers, real estate appraisers, funeral directors, certified public accountants, etc.

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What Is the Game Plan, and Where Are We Moving?

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

Over two hundred years ago, James Madison, Alexander Hamilton and John Jay wrote The Federalist Papers. These essays were to encourage discussion and the approval of the United States Constitution. In The Federalist #78, Alexander Hamilton noted that the courts were “designed to be the intermediate body between the people and their legislature” to ensure that the people’s representatives acted only within the authority given in the Constitution. Clearly, the courts on the federal and state levels are created to be an active check on the Legislative and Executive branches. We are an essential part of this check.

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Lawrence Duke Appointed Administrative Law Judge

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

In October, Lawrence Duke, formerly Legal Counsel to the North Carolina Rules Commission, was appointed the newest Administrative Law Judge. Judge Duke was with the Rules Commission for one year and nine months. A graduate of the Campbell School of Law in 2015, Judge Duke clerked at the North Carolina Court of Appeals for almost four years before joining the law firm of McDougal and Worrell. He continued his practice with the McDougal Law Firm concentrating on business, financial, complex legal litigation as well as catastrophic personal injury cases. Judge Duke has also worked in legislative relations and policy analysis.

Please welcome Judge Duke to his new appointment.

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Fred Morrison Retires from the Office of Administrative Hearings

Bain, a white man with white hair, wears a white shirt and black suit.By W. Bain Jones Jr.

After over fifty years of service to the State of North Carolina, Fred Morrison retired as the Senior Administrative Law Judge at the Office of Administrative Hearings. Judge Morrison has had a long and distinctive career serving the citizens of North Carolina. He is a graduate of Wake Forest School of Law, where he graduated second in his class. Afterwards, Judge Morrison served as a Solicitor in the courts in Thomasville. Governor Robert Scott selected Morrison to be his Legal Counsel and with this, Fred Morrison started his public service in Raleigh. Judge Morrison is the only individual to serve as Legal Counsel to two Governors from two different parties. When James Holshouser was elected Governor, he sought to have a smooth transition and appreciated the experience Judge Morrison brought to this position. Governor Holshouser appointed Judge Morrison, and when Holshouser left office, Morrison had several opportunities in North Carolina State Government. He chose to be Executive Director of the Inmate Grievance Commission.

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North Carolina Real Estate Commission Welcomes New Members

Kristen, a white woman with brown hair, wears a beige blouse and a black jacket. By Kristen Fetter

The General Assembly recently appointed Robert J. “Bob” Ramseur Jr. and William “Bill” Aceto to the North Carolina Real Estate Commission. Mr. Ramseur and Mr. Aceto were sworn in as new members at the September 13, 2023, business meeting.

Mr. Ramseur is an attorney and a partner at Ragsdale Liggett PLLC in Raleigh, where he focuses his practice on all aspects of residential and commercial real estate. Mr. Ramseur is a graduate of Wake Forest University, where he received both his bachelor’s degree and a Juris Doctorate. He is also a member of the NCBA. Mr. Ramseur was previously appointed to the Real Estate Commission in 2015 by Governor Pat McCrory and served as a past Commission Chair. His term with the Real Estate Commission ends June 30, 2026.

Mr. Aceto is a partner at Blue Ridge Realty & Investments in Boone. He has been a licensed real estate broker in North Carolina since 2007. Mr. Aceto graduated from Appalachian State University with a bachelor’s degree in political science and minors in business and criminal justice.  Mr. Aceto is also a public member on the North Carolina Building Commission. His term with the Real Estate Commission ends July 31, 2026.

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