A RESOLUTION SUPPORTING SMALL BUSINESS AND FAIR COMPETITION AND SEEKING A DELAY IN CONSIDERATION OF PROPOSED AMENDMENTS TO THE UMSTEAD ACT (2005-06-27/R-0.2)

WHEREAS, since 1929 the Umstead Act has provided protection for small and large businesses from unfair competition by the State of North Carolina; and

WHEREAS, the negative impact on private businesses from direct competition with the UNC System and its constituent institutions can be substantial and long term; and,

WHEREAS, Senate Bill 758 (House Bill 1539), presently under consideration in the North Carolina General Assembly proposes modifications to the Umstead Act that would enhance the ability for the State and the University to compete with private enterprise and would be harmful to local businesses; and,

WHEREAS, Senate Bill 758 (House Bill 1539) could have a negative impact on the quality of life in communities that count on local businesses for the jobs they provide and sales tax revenue they generate; and,

WHEREAS, Senate Bill 758 (House Bill 1539) was proposed and introduced without sufficient time for consideration and study by businesses which could be impacted by its enactment; and,

WHEREAS, the economic impact of Senate Bill 758 (House Bill 1539) is not known and needs further consideration and study.

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council opposes the enactment in this Session of the General Assembly of Senate Bill 758 (House Bill 1539).

BE IT FURTHER RESOLVED that the Council supports sending Senate Bill 758 (House Bill 1539) to a study commission so that its potential economic impact can be studied in a methodical manner before it is considered further by the North Carolina General Assembly.

This the 27^th day of June, 2005.