One potential hitch in a state budget deal is the group of 12 Democratic House members who gathered after session Thursday in a windowless room in the bowels of the Legislative Building to discuss their concerns over raising beer, wine and cigarette taxes.

"What we're doing now is cutting the jugular vein" of the tobacco industry, said Rep. Nelson Cole, a Reidsville Democrat who helped organize the meeting. "They're already dying."

Democrats have a 68 to 52 majority in the House. Two members of their party voted against the House's original version of the budget, so they can't afford many more defections. Most, if not all, of the dozen potential dissidents have tobacco, beer or wine interests in their districts.

"It's jobs to us," said Cole, whose district includes a Miller brewery, noting the closing of tobacco giant Philip Morris' Cabarrus County plant this week.

The billboard industry contributed a total of more than $160,000 to more than 30 legislative and statewide campaigns in North Carolina in the past four years, according to a new study by Democracy North Carolina, a nonpartisan watchdog group.

In that time, the industry has been pushing a bill that would increase the area around billboards where companies can remove trees. The bill passed the Senate in past years, but stalled several times in the House. It recently received approval by a House committee.

"The billboard industry is not one of the 10 biggest spending special-interest groups, like the big banks, utilities, and developers - but it is one of the most persistent," Democracy North Carolina said in a press release.

The contributions came from industry representatives, such as business owners, as well as the industry's political action committee. The PAC contributed $95,750.

"If you are an active organization, then you want to help the people who are good representatives and senators," said Tony Adams, executive director of the N.C. Outdoor Advertising Association, who noted that his organization's contributions are substantially less than other PACs.

More after the jump.

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Rep. Alice Graham Underhill encountered some rocky going today when urging the House Transportation Committee today to approve putting the designation visitnc.com on state license plates.

Some of her sample license plates — meant to show the addition of the state's tourism Web site — displayed the ill-fated combination WTF, Thomas Goldsmith reports.

The state previously had to offer replacements to nearly 10,000 license plate holders after learning that the letter were a common abbreviation for a vulgar phrase starting, "What the ...?"

When committee members questioned whether the addition was in large enough type for other drivers to make out at interstate speeds.

"Is there a way to make the Web site more prominent?" asked Rep. Ty Harrell, a Wake County Democrat.

Not without redesigning the plate, Underhill said, adding: "My goal is to get the Web site on the plate. This is the only way to get the Web site on the plate."

The bill didn't move forward, but committee vice-chairman Nelson Cole appointed a subcommittee to study the issue further.

A smoking ban was weakened on the House floor today.

Rep. Hugh Holliman, the Democratic majority leader and bill sponsor, took different stances on four amendments that exempted different types of businesses:

CIGAR BARS: Rep. Wil Neumann, a Gaston County Republican, proposed exempting cigar bars. Holliman did not object. Adopted 93-24.

ADULTS-ONLY: Rep. Nelson Cole, a Rockingham County Democrat, proposed exempting restaurants and bars that do not allow minors. Supporters said it would gut the bill. Adopted 70-46.

SINGLE OWNERS: Rep. Paul Stam, a Wake County Republican, proposed exempting small home-based businesses. Holliman called it "far-fetched" but did not oppose it. Adopted 113-3.

GROWERS: Rep. Thom Tillis, a Mecklenburg County Republican, proposed exempting tobacco growers, processors and dealers. Holliman did not object. Adopted 115-2.

In addition, Holliman said another amendment would likely be proposed Thursday exempting Veterans of Foreign Wars halls.

A proposed smoking ban now mostly applies to restaurants, not bars.

After an hour and a half of discussion, an amendment to exempt dining facilities that do not allow minors from a statewide smoking ban passed 70-46.

Restaurants could still allow smoking as long as they did not allow patrons under the age of 18.

The practical effect would be that many bars could still allow smoking, while family-oriented restaurants such as Applebee's would go smoke-free.

The amendment had been proposed by Rep. Nelson Cole, a Rockingham County Democrat whose district includes Commonwealth Brands.

The amendment also requires the restaurant can prohibit smoke from migrating into the non-smoking section, but Cole said that would be virtually impossible without having a separate building.

A second amendment to the smoking ban passed, 70-46.

The proposed smoking ban now includes exceptions for restaurants with separate ventilation systems and those that are not open to minors.

The amendment was proposed by Rep. Nelson Cole, a Rockingham County Democrat.

Some supporters of the bill had argued that it was a "catfish amendment" designed to sound appealing while actually gutting the bill.

Cole refuted that charge, saying that the bill was designed to keep the ban from being too sweeping and allow common-sense exceptions.

A third amendment from Rep. Paul Stam to address some single-person businesses then passed 113-3.

Another amendment has been proposed on the smoking ban.

Rep. Nelson Cole, a Rockingham County Democrat, proposed allowing smoking sections in areas of restaurants with their own ventilation systems and restaurants and bars that are not open to minors.

He took an economic angle, arguing that tobacco brought in billions and employed 38,000 people, including 10,000 farmers.

That includes Commonwealth Brands, which is located in his district, he said. 

"Folks, tobacco made this state," he said. "What tobacco's done for this state, put it where it is. While it's decreasing, we don't need to be kicking them in the teeth."

Bill sponsor Rep. Hugh Holliman said the bill would not hurt tobacco companies and argued the amendment would not protect restaurant workers.

"Nothing in this bill keeps anyone from smoking," he said.  

Recent House bills of note:

H.B. 661: City Managers on School Boards, Rep. Ray Warren

H.B. 677: Require a "First in Flight" Background, Reps. Lucy Allen, Lorene Coates, Nelson Cole and Becky Carney

H.B. 691: State Contracts/Slavery Profits, Reps. Larry Womble, Earl Jones, Annie Mobley and Earline Parmon

H.B. 708: Furlough of State Employees, Reps. Ray Rapp, Rick Glazier and Margaret Dickson

H.B. 711: Sales Tax Fairness Act, Reps. Winkie Wilkins and Dale Folwell

H.B. 724: Open Records Attorneys' Fees, Reps. George Cleveland and Curtis Blackwood

Which legislators have tobacco companies in their districts?

With the General Assembly again considering enacting a smoking ban in restaurants and workplaces, Dome decided to see who represents the tobacco firms.

Alternative Brands, Mocksville:
Rep. Julia Howard, Sen. Andrew Brock

Commonwealth Brands, Reidsville:
Rep. Nelson Cole, Sen. Phil Berger

Lorillard, Greensboro:
Rep. Maggie Jeffus, Sen. Don Vaughan

Philip Morris, Concord:
Rep. Jeff Barnhart, Sen. Fletcher Hartsell

Reynolds American, Winston-Salem:
Rep. Larry Womble, Sen. Linda Garrou

Reynolds American, Tobaccoville:
Rep. Dale Folwell, Sen. Pete Brunstetter

In the 2007 session, Reps. Howard, Jeffus, Barnhart and Womble voted for a smoking ban in public places, while Reps. Cole and Folwell voted against it.