House and Senate Democrats, who have a controlling majority in the legislature, have agreed to both taxes this week as part of a $980 million package to cope with the budget deficit facing North Carolina.

That would be coupled with cuts in state spending, but Democratic leaders say the tax increases are needed to avoid more devastating cuts to education and social services.

And that could come back to haunt Democrats. In competitive districts, Democrats are already predicting a difficult campaign season next year, when all 170 House and Senate seats are up for election.

"The package the House wants us to accept is raising everything," said Sen. Joe Sam Queen, a Waynesville Democrat who represents one of the state's few truly competitive legislative districts. Queen has not decided whether he will support the tax plan. But if he votes for it, he said, he can already envision the Republican television and radio commercials chastising him for increasing taxes.

"There will be more acrimony and rhetoric in this coming election than ever before," he said.

Republicans, long in the minority in the legislature, did not hesitate to start the debate.

"They found a way to impose a tax on everybody without consideration for your ability to pay," said Rep. Thom Tillis, a Mecklenburg County Republican. "They even found a way to tax taxes." (N&O)

The bill creates a new division of the Attorney General's office that would advise some 1,500 governmental units on public records issues. The unit could also mediate disputes before they end up in court.

The bill also states that if a governmental agency, city, town, county, school system or other public entity loses a lawsuit over public records, a judge must require the agency to pay the plaintiff's attorney fees.

State law already allows judges to impose fees, but it is rarely used in public records cases.

"The public records are the people's records," said Rep. Deborah Ross, a Raleigh Democrat and co-sponsor of the bill. "They're not our records. They're not the politicians' records."

The bill was unlike nearly ever other contentious bill that has been discussed on the House floor this year in that the usual partisan lines were gone. On Thursday, what determined whether a House member was in favor or against the bill seemed to be whether he or she was once a locally-elected official.

Rep. Lucy Allen, a Louisburg Democrat and former mayor of that city, offered an amendment that would allow a government or agency to avoid paying legal fees if it relied on a written opinion from its staff or contract attorneys to deny releasing the records.

More after the jump.

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Debate on the House tax package has become an exercise in alliterative hypothetical situations.

Rep. Thom Tillis, a Charlotte Republican, started it all by posing a scenario in which "Larry the Landlord," the owner of a 20-unit affordable housing complex would have to raise rent because of the new taxes upon him.

Rep. Deborah Ross, a Raleigh Democrat, escalated when she suggested that Larry would benefit greatly from the additional services the tax package would fund.

Rep. Tricia Cotham, a Charlotte Democrat, took the exercise even further when she said she was concerned about "Danny the Disabled Child" who apparently lives in "Larry the Landlord's" building and has disabilities and decaying teeth.

"I'm voting for Danny," Cotham said. 

Dome is sure that Larry and Danny appreciate the legislative concern. 

Several House members were disturbed, even shocked, when they saw Rep. Cary Allred embrace and kiss a teenage girl on the chamber floor, according to a report summarizing an investigation into the incident.

The report by House sergeant at arms, Bob Samuels, includes written statements from several lawmakers, including Allred. The report will be forwarded to the legislature's ethics committee, which would consider whether to take any action.

Allred, a Burlington Republican, says he was not drunk on April 27 when he hugged the page, the daughter of a neighbor and family friend.

"The page lives across the road from me and is like my granddaughter," Allred wrote. "Her parents stated...they have no problems with what I did and neither does she."

Others were concerned by what they saw that night. Rep. Paul Stam, the House Republican leader, and Rep. Thom Tillis, the House Republican whip, confronted Allred in the chamber, even before the hug because of his erratic behavior that night.

Tillis recounted that Allred said, "I am 62 years old, and I'm worth $2 million. People ought to show me respect."

Some time after that, several House members said they saw the embrace.

"Representative Allred had a female House Page in what seemed to be a never-ending embrace that resembled a gruesome bear hug," wrote Rep. Mitchell Setzer, a Catawba Republican. "When the embrace finally broke, Representative Allred stepped back for a moment and then he stepped forward and began the hugging procedure again. I have never witnessed anything as unsettling as this in the eleven years that I have been a member of the General Assembly."

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The House voted on bills to slow revolving doors for state lobbyists and to make it a crime to remove a house-arrest monitor. The bills now move to the Senate.

HB 1136: Adds several state jobs to a requirement to wait six months before becoming a lobbyist. Currently, legislators, elected executive branch officials and department heads are covered by the six-month cooling off period. The bill adds senior officials at universities and the State Board of Community Colleges as well as liasons — lobbyists who work on behalf of state agencies.

HB 836: Under the bill, removing or tampering with an electronic monitoring device is a crime. Rep. Thom Tillis, a Charlotte Republican and the bill's sponsor said many were surprised to hear that tampering with the devices wasn't previously a crime.

The House approved a bill Wednesday that would try to stop scrap dealers from buying stolen junk metal.

The bill, co-sponsored by Rep. Thom Tillis, a Charlotte Republican,  woudl require junk dealers to collect fingerprints and other identifying information form anyone selling catalytic converters or certain air conditioner parts.

The House voted for the bill 115 to 0. The bill would also probit a junk dealer from buying items that were probably stolen, such as manhole covers or street signs. 

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.

The proposed smoking ban has its first amendment.

Rep. Wil Neumann, a Gaston County Republican, proposed exempting cigar bars from the ban.

The bill's sponsor, House Majority Leader Hugh Holliman, said he had no objection to the amendment, saying people who go to cigar bars know what they're getting into.

Rep. Thom Tillis, a Mecklenburg County Republican, objected to the amendment, saying it would complicate enforcement.

The amendment passed, 93-24.

Some recent House bills:

H.B. 512: Incentives for Energy Conservation, Reps. Hugh Holliman, Pricey Harrison and Paul Luebke

H.B. 516: Increase Revenues Without Raising Taxes, Rep. Paul Stam

H.B. 518: Lottery Name Changed, Reps. John Blust, Thom Tillis, Ruth Samuelson and Darrell McCormick

H.B. 539: Merge Smart Start/More at Four, Reps. Ray Rapp, Rick Glazier, Bob England and Marvin Lucas

H.B. 586: Expand Voter-Owned Elections, Reps. Glazier, Deborah Ross, Rapp and Grier Martin

A few notable House bills filed:

H.B. 132: Jury Duty Tax Deduction, Rep. Timothy Spear

H.B. 133: Prudent Management of Institutional Funds, Rep. Deborah Ross

H.B. 134: Assault State or Local Officer or Employee, Rep. Russell Tucker

H.B. 135: Broadband Service Providers, Reps. Bill Faison, Joe Tolson, Phil Haire and Thom Tillis

H.B. 137: Capital Procedure / Severe Mental Disability, Reps. Verla Insko, Pricey Harrison, Larry Womble and Paul Luebke

H.B. 149: Require Arts Educ. Credit for Graduation, Reps. Becky Carney, Rick Glazier, Alma Adams and Linda Johnson

H.B. 154: Appoint State Superintendent, Rep. Leo Daughtry

H.B. 155: Appoint State School Superintendent, Reps. Haire, Harold Brubaker, Johnson and Marvin Lucas