North Carolina Legislation Blocks Digital Currency Payments Following Successful Veto Override

North Carolina Legislation Blocks Digital Currency Payments Following Successful Veto Override

Senators successfully completed three veto overrides, and two more are awaiting approval from the House of Representatives in their recent session at the North Carolina General Assembly on Monday.

A legislation called “No Central Bank Digital Currency Payments to State” was introduced by Reps. Mark Brody and Harry Warren. This legislation prohibits the federal government from making payments or conducting tests with state governments. Digital currency is solely stored and managed electronically, with transactions and record-keeping taking place within computer systems.

House Bill 690, also known as, has become law with immediate effect. All Republicans supported the override in both chambers, with a Senate vote of 27-17 and a House vote of 73-41. Interestingly, Reps. Shelly Willingham, D-Edgecombe, and Michael Wray, D-Northampton, were the only Democrats who voted in favor of it. In June, the passage received overwhelming support in both the Senate and the House.

Two new laws have been passed: Tenancy in Common/E-Notary/Small Claims Changes, also known as HB556; and Titles for Off-Road Vehicles/Low Speed Vehicles Inspection, or HB155. Some sections of the former will take effect immediately, while others will become law on October 1. As for the latter, a subsection will become law on July 1 next year, with the majority taking effect immediately.

The voting on these two items reflected the veto on digital currency. In June, the Senate voted 36-6 and the House voted 74-39 on HB556. However, on Monday, the Senate voted 27-17 and the House voted 74-40 on the same bill. In June, the Senate voted 33-16 and the House voted 92-12 on HB155. However, on Monday, the Senate voted 27-17 and the House voted 73-41.

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HB556 includes recommendations from the North Carolina Bar Association regarding tenancy and from Secretary of State Elaine Marshall’s office regarding notary public laws. Additionally, there is a provision that prevents counties and cities from implementing regulations that would prevent landlords from denying tenants based on their source of income, which may include federal housing assistance.

The new law regarding ATVs and utility vehicles allows for an expansion of the streets and highways where they can be legally operated.

Senators have initiated the process of overturning Gov. Roy Cooper’s veto on two important bills: the 2024 Building Code Regulatory Reform (Senate Bill 166) and the Recording of Court-Filed Documents (SB445). Both items are scheduled for votes on Wednesday according to the House calendar.

In 1995, a ballot referendum was passed, granting the governor veto power. Interestingly, North Carolina was the final state in the country to be given this authority. The General Assembly has the power to override it with a three-fifths vote, which requires a minimum of 30 votes in the Senate and 72 votes in the House.

All of Cooper’s 27 vetoes this two-year session have been overridden, with a flawless record of 25-for-25.

During Cooper’s tenure, he issued 102 vetoes, but Republican supermajorities successfully overrode 48 of them in all attempts. Republican leadership has failed in all 13 attempts with less than three-fifths majorities.

In the two two-year sessions following the passage of the law, there were no vetoes. Prior to Cooper taking office on January 1, 2017, there were only 16 successful veto overrides in the 20 years.

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