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ESC subpoena

Legislative committees generally don’t issue engraved invitations, especially to government officials. Generally, it’s considered good form to show up when the guys who write your budget ask you to stop in.

Apparently, Lynn Holmes — the Commerce Department Assistant Secretary in charge of the Employment Security Commission — declined to speak to the Revenue Laws Committee today.

So the Revenue Laws Committee took the unusual step of issuing a subpoena, with the blessing of Senate President Pro Tempore Phil Berger and House Speaker Thom Tillis. Issuing a subpoena is an unusual step and generally indicates a high level of frustration with the target.

The committee wanted to talk to Holmes about the state’s mounting debt to the federal government that has been accumulated in order to pay unemployment benefits. North Carolina has tripped automatic triggers that require the state to raise unemployment insurance taxes on employers.

“A request was made for her to attend this meeting today to share with us her ideas how we’re going to work our way out of this problem,” Sen. Bob Rucho said. “She made the decision not to attend.” He added that he wanted to know how Holmes planned to “get us back on the right path and no longer do any damage to our business committee.”

Rucho probably didn't need much prodding to issue the subpoena. In an October Associated Press story, Rucho derided Holmes for "incompetence."

The committee was unanimous in issuing the subpoena.

Update: Commerce Department spokesman Tim Crowley wrote this in response to a request for comment: 

"Assistant Secretary Holmes notified Department of Commerce leadership of a personal conflict and that she would not be able to attend today’s meeting. The Department of Commerce and Assistant Secretary Holmes notified General Assembly staff of the conflict. It’s my understanding that a meeting has been set up next week with Senator Rucho, Secretary Crisco, and Assistant Secretary Holmes. It is her intention to attend the January meeting, and that no subpoena is necessary. The Department of Commerce is committed to working with the General Assembly and providing information and updates as requested."

Click below to listen to the Revenue Laws discussion.

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