Bill giving teeth to sunshine law passes test

Legislation that would require state and local governments to pay reasonable legal fees when they lose a public records lawsuit cleared a Senate judiciary committee Tuesday after an attempt to gut the bill.

State law currently gives the courts limited discretion to not award legal fees to people and businesses who win public records lawsuits if the governmental agency showed substantial justification to deny records. Open government advocates say judges have largely used that discretion to prevent or limit the awarding of legal fees.

"It hasn't operated as people thought it should and it has cost some of the smaller papers in the state a lot of money to protect their rights," said Senate Majority Leader Tony Rand, a Fayetteville Democrat.

State Sen. Dan Clodfelter, a Charlotte Democrat, offered an amendment that would have left that standard in place. He said the current law, passed in 2005, had not been given a chance to prove its effectiveness.

"It was negotiated in good faith," Clodfelter said. "What I don't like about the bill is that it is going to be thrown out the window."

Representatives of county and municipal governments and public hospitals supported the amendment, while representatives of the N.C. Press Association and N.C. Association of Broadcasters urged its defeat.

A majority of senators voted the amendment down in a voice vote and then gave the legislation a favorable report. It now goes to the Senate Finance Committee.

The legislation, filed by state Sen. David Hoyle, a Gaston County Democrat, also creates an open government section within the state Attorney General's Office to educate public officials about the state's open records and open meetings laws. The unit would also mediate disputes.

Veterans keep tax break

House budget writers saved a tax break in the proposed $21.4 billion state budget for fully disabled military veterans, but it will cost the counties.

The property tax homestead exemption for the veterans has an $8.6 million price tag. House leaders wanted to pay for it in the state budget, but Rep. Paul Luebke, a Durham Democrat, said Senate leaders did not go along.

"The only way we could get that program is if we spread it around to the various counties," Luebke said.

House Minority Whip Bill McGee, a Forsyth County Republican, noticed the cost shift in the budget proposal. He pointed it out on the House floor during Monday's budget debate, but he did not criticize the move.

Economists like McCain plan

Seven North Carolina economists have signed onto John McCain's plan.

The Republican presidential candidate released a statement signed by more than 300 professional economists in support of his "Jobs for America" economic plan.

The statement notes McCain's pledge to veto bills with earmarks, implement a line-item veto, halt nonmilitary discretionary spending for one year, cut the corporate income tax, phase out the alternative minimum tax and support free trade agreements. It does not mention his proposed gas tax holiday, which many economists derided.

Among the Tar Heels who signed: Barry K. Goodwin and Walter N. Thurman of N.C. State, J. Edward Graham of UNC-Wilmington, Randall Parker of East Carolina University, James F. Smith of UNC-Chapel Hill and Sherry L. Jarrell of Wake Forest University.

John Silvia, an economist with Wachovia, also signed.

Ex-candidate sues fundraiser

A former Republican Congressional candidate says a fundraising firm cheated her.

Dr. Ada Fisher, a Salisbury doctor who ran unsuccessfully against U.S. Rep. Mel Watt in 2006, told the liberal Web site Talking Points Memo that Washington-based BMW Direct sent her checks too late and kept much of the money.

According to the piece, BMW Direct raised more than $400,000 for Fisher during the election cycle, but only about $30,000 made it back to her for use in her campaign. But she said she did not know then that many of the key vendors were run by BMW employees.

"They make it seem like each of these people is a private entity. But as you listen more and more and you get smarter, you realize they all work together," she told the site.

A spokesman for BMW told the Web site that Fisher's case was unique because she started late, but he argued that the direct-mail effort still helped build name recognition. In June, Fisher was chosen for a North Carolina seat on the Republican National Committee.

In recent days, Talking Points Memo has been investigating the firm's fundraising for long shot candidates.