JLF Research Archive

Law & Regulation

(5.02.12) Catch Shares: A Potential Tool to Undo a Tragedy of the Commons in NC Fisheries

Declining fish stocks are affecting N.C. fishermen and fishing communities despite the U.S. government spending $70 million a year to bail out failing federally managed fisheries under traditional management systems. Catch shares are a transformative approach to fisheries management that inject property rights into the fisheries to produce a sea change in incentives. Catch shares eliminate race to fish, encourage a more discriminating harvest, and reduce bycatch. Research finds strong links between catch shares and improved economic and biological performance of fisheries and that switching fisheries to catch share systems not only slows their decline but possibly stops (or even reverses) it.


(1.05.12) Compensating NC’s Eugenics Victims: Five Ways North Carolina Can Help Right the Wrong

North Carolina forcibly sterilized approximately 7,600 individuals in the 20th Century as part of its eugenics program. Many eugenics victims are still alive in North Carolina. This report offers five ways that North Carolina should compensate the victims before it is too late.


(10.13.11) Energy Efficiency, Economic Efficiency and The Pretense of Knowledge

Energy efficiency programs focus on the relationship between one input into the production process, energy, relative to the output generated by that process. This simplistic view makes no consideration for the strong possibility that other inputs -- labor, plastic, steal, copper, glass, etc. -- might actually increase. Economic efficiency, on the other hand, relates total costs to the value of the output that those costs generate.


(10.04.11) The N.C. Supreme Court: A look at the inner workings

This Spotlight report provides useful information about the Court's work that is probably unfamiliar even to most attorneys in the state. It includes how often justices agree with each other and the reversal rate of Court of Appeals decisions.


(6.02.11) No More Unaccountable Government: Legislators, not unelected bureaucrats, should make major policy decisions

State agencies should not be allowed to issue regulations that exceed federal requirements, and cost-benefit analysis should be required for all agencies. These two regulatory reforms should have a positive impact on the economy, but they are first and foremost about promoting good government.


(4.26.11) North Carolina's Auto Insurance System: Still Unfair, Still in Need of Improvements

North Carolina’s auto insurance system is unfair to low-risk drivers because it overcharges them in order to subsidize some of the state’s more risky and dangerous drivers. Every insured driver pays a hidden tax, and private insurance companies are guaranteed a profit. This report recommends reforms to improve the system.


(1.27.11) Blocking Eminent Domain Abuse in NC: It’s past time for well-crafted constitutional amendment

There is optimism that an eminent domain amendment will pass this upcoming legislative session. This Spotlight explains how to craft the amendment carefully to best protect property owners.


(10.27.10) Perdue’s Regulatory Executive Order: A step in the right direction

North Carolina’s regulatory environment is poor, especially in comparison with other states’. Gov. Beverly Perdue signed a new executive order to modify the rulemaking process and help reduce the costs of regulation, which is a good start, but much will depend on how it is implemented in practice. For true regulatory reform, the legislature needs to build upon the executive order and apply reforms to all agencies.


(9.30.10) The Pill Police: North Carolina law enforcement has access to private health records

There has been significant public attention and concern regarding a proposal by the North Carolina Sheriffs' Association that would allow sheriffs to have access to patients' prescription information for painkillers and controlled substances. The bigger issue is that the state already collects this information and law enforcement, specifically the State Bureau of Investigation, already has access to it. North Carolina should eliminate the database. The incredible intrusion into the lives of citizens greatly outweighs its limited, if any, benefit.


(8.25.10) Deregulating Health Insurance and Health Providers in North Carolina

North Carolina policymakers should eliminate provider licensing, certificate-of-need laws, and mandated health insurance benefits. Short of this, the state can accept alternative forms of credentialing and ensure consumers have the right to purchase optional benefits at additional cost. These regulations limit access to health care providers and health insurance by artificially constraining markets.


(6.10.10) Taking DNA from the Innocent: Bill would be a major step toward Big Brother government

The North Carolina General Assembly is considering a bill (HB 1403) that would require law enforcement agencies to collect DNA samples from individuals arrested for certain felonies. Such a law would overturn the time-honored principle of innocent before proven guilty.


(5.11.10) Let the Dogs In: Restaurant Owners, Not the State, Should Decide Whether to Allow Pets

On February 1, 2010, the North Carolina Commission for Public Health published a proposed rule addressing whether pets may be allowed in restaurants. Not unlike the smoking ban, whether pets are allowed in restaurants is a property rights issue.


(3.05.10) The Clean Smokestacks Bill: A Retrospective

In 2002 the State of North Carolina passed what was officially titled “Improve Air Quality/Electric Utilities,” which became better known as the Clean Smokestacks Bill (CSB). When the CSB was passed in 2002, it was estimated to cost $2.3 billion.


(2.23.10) Regulating the Regulators: Seven Reforms for Sensible Regulatory Policy in North Carolina

The excessive regulatory power allowed by North Carolina imposes great costs on its citizens and businesses and hurts the economic competitiveness of the state. This report identifies seven reforms that North Carolina should adopt to improve the regulatory environment in the state.


(10.21.09) NC Gun Laws Need a Change: Legislature Went Too Far in Restricting Gun Possession by Ex-Felons

In 2004, the legislature went too far in passing a complete and permanent ban on gun possession by all ex-felons. In August 2009, the North Carolina Supreme Court in Britt v. North Carolina held that those changes were unconstitutional as applied to the plaintiff, Barney Britt.


(10.01.08) Private Well Regulation: A Real Possibility for North Carolinians

Despite claims to the contrary, North Carolina’s new drought management bill does not expressly prohibit the regulation of water use from private wells. In fact, the bill likely authorizes regulation of water use from private wells.


(12.03.07) Drought-Resistant Water: Variable prices can work better than mandatory restrictions

Water is a scarce resource and a commodity. Some water systems do not change water rates based on demand.


(12.13.06) North Carolina’s Price-Control Laws: Harming Those They’re Meant to Help

The state of North Carolina levies differing forms of price regulations on a range of what would otherwise be free-market activities. These include controls on wages, gasoline, interest rates, and an unspecified number of prices during disasters and states of emergency. The purpose of this paper is to explain why a free and flexible price system is so important to both social order and the efficient allocation of goods, services, and resources in a free society. Particular emphasis will be placed on North Carolina’s laws meant to regulate prices and the negative effect that these regulations have on both markets and the well-being of the citizens of the state.


(11.08.06) Fish Tales About Mercury: Why regulation of mercury is all cost and no benefit

North Carolina utility consumers may face higher rates for no justifiable reason if extreme mercury regulations are adopted. The United States Environmental Protection Agency (EPA) is regulating, for the first time ever, mercury emissions from power plants. The purpose is to minimize potentially harmful mercury levels in fish consumed by humans. However, there has never been any documented case in the United States of mercury poisoning from fish. Data linking fish consumption to any type of adverse effect in humans is very weak. In addition, the EPA acknowledges that it does not know the impact mercury emissions from power plants have on the mercury levels in fish. Despite the lack of benefits and the additional costs, North Carolina’s Environmental Management Commission (EMC) is considering whether to adopt regulations which exceed the new and stringent federal standards.


(9.07.05) Auto Dealer Protectionism: State Limitations on Dealer Competition Should Be Eliminated

North Carolina law limits the establishment and relocation of new-vehicle dealerships in “relevant market areas” where the same make of car is sold. This law was enacted due to the belief that dealers were in an unequal bargaining position with manufacturers. This rationale is now obsolete. Research also indicates that such laws hurt consumers. No justification exists to continue granting special privileges to dealers, especially when those privileges come at the expense of the public.


(6.01.05) Still a Bad Idea: State Shouldn’t Try to Force Up the Minimum Wage

The NC House is considering a bill to raise the state’s minimum wage to $8.50 an hour. While intended to help lower-income workers earn a “living wage,” the more likely result is to boost the earnings of some non-poor workers, including many teens and seasonal workers, while increasing the unemployment rate for many poor and minority workers. Employers will not hire people whose work efforts are worth less in the market than a government-imposed wage. A better policy to boost the earnings of entry-level workers would be to address their educational deficiencies.


(3.01.01) Regulation in North Carolina: A Primer

Like taxes, state and local regulations have an enormous impact on the average citizen as well as on businesses, especially small business — the key to job creation in a vibrant economy. In many ways, regulations are a more onerous and hidden way than taxes for the state to take resources out of the private sector to accomplish what is at least a purportedly public objective.


(2.12.01) Virginian Red Herring: Cross-Border Sales Poor Reason For N.C. Lottery

One of the most common arguments in favor of a state lottery for North Carolina is that the Virginia Lottery attracts as much as $100 million in lottery ticket purchases from North Carolinians. But this revenue loss is exaggerated and dwarfed by the loss of revenue to out-of-state corporations that North Carolina would experience with a lottery. In reality, Virginia receives at most $34 million in state revenues from N.C. residents, while management fees paid out-of-state for operating a N.C. lottery would be at least $36 million.


Who Is John Locke

JLF Network Websites & Blogs