Prohibition on Contingency Fee Audits Passes NC Legislature
We reported earlier this week the the North Carolina Legislature was considering a bill banning counties from paying business personal property auditing firms on a contingency basis. See.
The North Carolina Chamber of Commerce reported as follows late Tuesday that the necessary approvals had been given by the Legislature for the bill to become law:
The NC House concurred on House Bill 462: Contingency Contracts for Audits/Assessments, which takes important steps to prohibit unfair contingency audits on your business. The legislation was amended to make the effective date for counties and cities July 1, 2013 with a sunset on July 1, 2015. Additionally, the issue will be comprehensively studied in a legislative committee. HB462 is now sent to the Governor where she has ten days to decide whether to veto, sign or let the bill go into effect without signature.
As the report indicates, the legislation is not law yet, as it awaits the Governor's signature. If the Governor signs, the legislation becomes law. If the Governor takes no action within 10 days of the bill's passage, the legislation becomes law. If the Governor vetos the legislation, it will not become law unless the Legislature, which is now adjourned, is later called back into session to vote on a veto override.