Tuesday at the North Carolina General Assembly

— Amusement machine owners say they want video poker machines legalized again

— Throwing the wind to caution: Senate panel sidesteps mountain wind turbine regulations

— Senate panel OK's limit on lawsuits jilted spouses file against interloping lover

— NC eminent domain change to state constitution returned to judiciary committee

— Bill directs sterilization program in public school curriculum, requires interviews

PERDUE SPEAKS UP: Gov. Beverly Perdue tried Tuesday to loosen a knot in the state budget negotiations by offering her own $1.6 billion tax plan that's larger than the $1 billion House or Senate Democrats have proposed. She said neither is enough to protect education and other vital services. Her menu of tax options would raise the sales tax most consumers pay from 6.75 percent to 7.75 percent for one year and place an emergency surcharge on the highest wage earners for two years. But permanent sales and income tax rates ultimately would be lowered and services subject to the sales tax expanded. Perdue's plan also would raise cigarette taxes by 50 cents per pack and increase alcohol taxes.

LEGISLATORS SPEAK OUT: Key House and Senate negotiators on the tax package say their chambers may be hard pressed to accept a tax increase above $1 billion this year. They still don't believe there are enough votes to raise the amount of additional taxes that Perdue wants. The idea of "temporary" tax increases are sure to give Democrats pause. The Democratic-led Legislature agreed to raise sales and income taxes for two years in 2001 to cope with the most recent recession. But lawmakers didn't take the income tax portion off the books until 2007, and a quarter-cent increase on the sales tax became permanent. Republicans kept pushing for a solution Tuesday that would include more targeted spending cuts and no new revenues.

LET IT ROLL: Arcade machine owners who want to return to the video poker business say they want to remove the cloud hanging over the games. A House judiciary committee heard about a bill to legalize video gambling terminals again and give the state 20 percent of the profits. The Legislature banned the machines in July 2007, but there has been a series of legal rulings that threaten to invalidate the ban. Video poker had been tainted because one of its biggest supporters was then-House Speaker Jim Black. He is in federal prison after pleading guilty to a corruption count unrelated to video poker. No vote was taken. There's not much support from leaders in the House and Senate.

LOST WIND: Senators looking at how to balance the demand for green energy with environmental protection and tourism have endorsed a bill that sidesteps regulating wind turbines on mountain ridges. A Senate committee approved regulations for where wind turbines can be built, but only along the coast. Bill sponsor Sen. Charlie Albertson, D-Duplin, said a dispute between tourism interests, mountain-district senators, and green-power advocates means a system for western North Carolina will be added later. The proposed law would require a permit to build wind farms. They could be blocked if they have a negative effect on navigation, wildlife, or the views from any state or national park.

SPOUSAL REVENGE: A Senate committee has backed limits to a law that allows scorned spouses to sue and collect damages for stolen affection and adultery. A Senate judiciary committee recommended a bill barring lawsuits for amorous acts after a married couple separated, and puts a three-year time limit on the lawsuits. Jilted spouses also could not sue a business. North Carolina is one of only about a half dozen states that still allow a spouse to sue their wayward partner's lover for stolen affection. Sen. Daniel Clodfelter, D-Mecklenburg, said North Carolina is the only state that allows lawsuits over a spouse's adultery. Senators said the lawsuits are primarily filed by revenge-seeking spouses of wealthy people.

EMINENT DOMAIN: The House sent back to committee a bill that would let voters decide whether to bar government from condemning private property for economic development The House voted 60-56 on Tuesday to re-refer the measure to a judiciary panel for further discussion and work out some pending amendments. The bill seeks to ensure government can only condemn private property for a public use. The amendment is in response to a 2005 U.S. Supreme Court decision. The amendment also would emboss in the constitution the right of a landowner whose land is condemned to receive a jury trial to determine what is just compensation. A similar proposed amendment was approved by a wide margin in the House in 2007 but died in the Senate.

TEACHING EUGENICS: House members have endorsed teaching public school students about how thousands of people were sterilized through a state program in the mid-20th century. The House Education Committee approved legislation that would order the eugenics program be included in the public school curriculum. The bill also direct students and professors at University of North Carolina campuses to interview program victims so future generations know what happened. About one-third of the 7,600 people sterilized by choice or coercion are still alive. The program ended in the 1970s. Then-Gov. Mike Easley apologized for what happened in 2002. The bill now goes to another committee. It's unclear if a separate effort to pay survivors will wind up in the state budget.

In the House:

— S962, to give a public school teacher with four years of experience the right to receive an explanation why the teacher will not receive tenure and the right to a hearing before the local school board votes on the decision. Approved 90-26. Next: Return to Senate for concurrence motion.

— H1267, to clarify that a commercial social networking site cannot be sued for a sex offender's use of the site if the company has tried to block access by comparing his Internet identifying address to lists of registered offenders. Concurrence motion approved 116-0. Next: To Gov. Beverly Perdue's desk.

In the Senate:

— S580, would create a loan fund with a supervising board of directors with the aim of financing medical, pharmaceutical or other biotechnology companies with a product ready for market but no money to start production. Loans of up to $30 million would be used by companies to pay for buildings or equipment needed to build permanent production facilities in North Carolina. Tentatively approved 44-4. Next: Final Senate vote.

— S467, directs animal shelters to make animals available for adoption or recovery by its owner, that the shelter be open for owners to look for their lost pets for at least four hours on three days a week, that every animal in a shelter be available for search by owners, to make reasonable efforts with a microchip scanner to find the owner. Concurrence motion approved. Next: To Gov. Beverly Perdue's desk.

— S1021, to limit fees companies that promise to find lost bank accounts or other property can charge to $1,000 or 20 percent of the value of the property recovered. Concurrence motion approved. Next: To Gov. Beverly Perdue's desk.

In committees:

— H1378, would begin a New Hanover County pilot program requiring marinas with more than 10 slips for boats of 26 feet or larger to install equipment by July 2010 allowing boats to empty their on-board sewage, and banning sewage from being discharged into coastal waters. Recommended for approval, Senate Agriculture and Natural Resources Committee. Next: To the full Senate.

— S32, to require that employers use a federal database to verify that an employee is authorized to work in the United States. Recommended for approval, Senate Commerce Committee. Next: To the Senate Appropriations Committee.

Senate Minority Leader Phil Berger and House Minority Leader Paul Stam challenged Gov. Beverly Perdue to hold at least five joint appearances over the next two weeks with Republicans to debate taxes and spending. Berger said the state needs a frank dialogue over policy differences with Democrats who are considering raising taxes by at least $1 billion. Perdue spokeswoman Chrissy Pearson said Berger "should focus his talents and efforts on continuing to work with his colleagues in the Legislature to pass a budget that protects education, rather than parading in front of the media."

North Carolina's dairy industry sponsors a milk-chugging contest Wednesday pitting House against Senate members. The Senate's team includes Sens. Bob Atwater, D-Chatham; Andrew Brock, R-Davie; and Joe Sam Queen, D-Haywood. The House's pride is in the hands of Reps. Van Braxton, D-Lenoir; Roger West, R-Cherokee; and Arthur Williams, D-Beaufort.

"It's like trying to get a grass stain out of your blue jeans by rubbing it with a red dirt clod." Sen. Andrew Brock, R-Davie. He contended that interest groups and political parties would continue to pump money into election campaigns regardless whether the Legislature passed a bill adding the treasurer to the list of statewide officials qualifying for taxpayer campaign financing. The measure was sent back to a committee.

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By Gary D. Robertson and Emery P. Dalesio.

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July 7, 2009 - 08:21 p.m. EDT

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