FILED SENATE
Apr 4, 2023
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 580
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS35210-BGf-4
Short Title: DOT Legislative Changes.-AB (Public)
Sponsors: Senators McInnis, Sawyer, and Lazzara (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE CHANGES TO TRANSPORTATION LAWS, AS RECOMMENDED BY
3 THE DEPARTMENT OF TRANSPORTATION.
4 The General Assembly of North Carolina enacts:
5
6 EXPAND AUTHORIZED USE OF TRANSPORTATION EMERGENCY RESERVE
7 SECTION 1.(a) G.S. 136-44.2E reads as rewritten:
8 "§ 136-44.2E. Transportation Emergency Reserve.
9 (a) Creation. – The Transportation Emergency Reserve (Emergency Reserve) is
10 established as a special fund in the Department of Transportation.
11 (b) Funding; Use of Funds. – Subject to subsection (d) of this section, no later than July
12 30 of each fiscal year, the Department of Transportation shall transfer from the Highway Fund
13 to the Emergency Reserve the sum of one hundred twenty-five million dollars ($125,000,000),
14 and these funds are hereby appropriated for expenses related to an emergency. an unreimbursed
15 expenditure arising from an emergency. For purposes of this section, the term "emergency" has
16 the same meaning as in G.S. 166A-19.3.
17 (c) Access to Funds. – The Department may only use funds in the Emergency Reserve
18 after the President of the United States issues a declaration under the Stafford Act (42 U.S.C. §§
19 5121 – 5207) that a major disaster exists in the State. The Secretary of Transportation shall ensure
20 all funds in the Emergency Reserve are accessed and used pursuant to this section, and in a
21 manner that ensures to the extent practicable that the funds are eligible for federal reimbursement
22 or cost sharing with the federal funds.section for unreimbursed expenditures arising from an
23 emergency. Funds in the Emergency Reserve may be used for a past or present emergency.
24 (d) Limitation on Funds. – The total funds in the Emergency Reserve shall not exceed the
25 sum of one hundred twenty-five million dollars ($125,000,000). If a transfer under subsection
26 (b) of this section would cause the Emergency Reserve to exceed this limitation, the amount
27 transferred shall equal the difference between one hundred twenty-five million dollars
28 ($125,000,000) and the amount of funds in the Emergency Reserve on the transfer date set forth
29 in subsection (b) of this section.
30 (e) Evaluation of Emergency Reserve. – No later than February 1 of the first year of the
31 2021-2023 fiscal biennium, and biennially thereafter, following a year in which funds in the
32 Emergency Reserve were used, the Department of Transportation shall submit a report on the
33 Emergency Reserve to the House of Representatives Appropriations Committee on
34 Transportation, the Senate Appropriations Committee on the Department of Transportation, and
35 the Fiscal Research Division. The report shall contain the results of an evaluation of the
36 Emergency Reserve, based on a methodology developed jointly by the Office of State Budget
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 General Assembly Of North Carolina Session 2023
1 and Management and the Department of Transportation, to determine the minimum amount of
2 funds needed in the Emergency Reserve.
3 (f) Notification of Governor; Reimbursement. – The Secretary shall notify the Governor
4 within 24 hours of determining that anticipated emergency expenses by the Department under
5 this section will exceed the funds in the Emergency Reserve. Upon notification, the Governor
6 shall immediately proceed under G.S. 166A-19.20(e). Federal reimbursements for funds
7 expended in relation to a major disaster, declared in accord with subsection (c) of this section,
8 shall be used to reimburse expenditures from the following accounts in order of priority:
9 (1) Emergency Reserve, subject to the limitation in subsection (d) of this section.
10 (2) Reserve for General Maintenance in the Highway Fund.
11 (3) Savings Reserve."
12 SECTION 1.(b) This section becomes effective July 1, 2023.
13
14 PROGRESSIVE DESIGN-BUILD DELIVERY METHOD PILOT PROGRAM
15 SECTION 2.(a) Definition. – For purposes of this section, the term "Progressive
16 Design-Build" means a project delivery method that uses a stepped, or progressive
17 qualifications-based selection process, followed by a progression to a contract price. The
18 Progressive Design-Build Team is selected exclusively on qualifications, without consideration
19 of schedule or costs, and delivers the project in two distinct phases with two separate contracts.
20 The Progressive Design-Build Team is initially under contract for preconstruction activities,
21 including developing preliminary designs, performing constructability reviews, and developing
22 construction schedules and pricing. If the Department of Transportation and the Progressive
23 Design-Build Team reach agreement on a guaranteed maximum construction cost, the
24 Department of Transportation and the Progressive Design-Build Team will execute a second
25 contract for completion of the preliminary designs and construction of the project.
26 SECTION 2.(b) Pilot Project. – Notwithstanding any provision of Chapter 136 of
27 the General Statutes to the contrary, the Department of Transportation may establish and
28 implement a pilot project to award contracts for up to five transportation projects using the
29 Progressive Design-Build procurement process. The Department of Transportation may only
30 award a contract under this section if (i) the Department determines that the project cost is less
31 than five hundred million dollars ($500,000,000), (ii) the Department determines that it is in the
32 public's interest to use the Progressive Design-Build procurement process, (iii) the Department
33 prequalifies the prime contractor and lead design firm that will be awarded the contract, (iv) the
34 Department complies with the pre-award reporting requirement set forth in subsection (c) of this
35 section, and (v) the Department establishes and implements Progressive Design-Build
36 Guidelines, as required under subsection (d) of this section.
37 SECTION 2.(c) Report. – Prior to the award of a contract under the authority set
38 forth in subsection (b) of this section, the Department of Transportation shall submit a pre-award
39 report to the Joint Legislative Transportation Oversight Committee on the nature and scope of
40 the project and the reasons the Progressive Design-Build procurement process will best serve the
41 public interest. Upon completion of a project awarded under subsection (b) of this section, the
42 Department of Transportation shall submit a post-completion report to the Joint Legislative
43 Transportation Oversight Committee and the Fiscal Research Division detailing the project
44 results, including any cost and time efficiencies achieved using the Progressive Design-Build
45 procurement process.
46 SECTION 2.(d) Guidelines. – The Department of Transportation shall develop and
47 implement Progressive Design-Build Guidelines for awarding contracts under subsection (b) of
48 this section.
49 SECTION 2.(e) Expiration. – This section expires upon submission of the
50 post-completion report required under subsection (c) of this section for the final project
51 completed under the authority set forth in subsection (b) of this section.
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 General Assembly Of North Carolina Session 2023
1
2 INCREASE PROJECT CAP FOR PROJECT DELIVERY METHOD PILOT PROGRAM
3 SECTION 3. Section 34.13(b) of S.L. 2018-5, as amended by Section 21 of S.L.
4 2022-68, reads as rewritten:
5 "SECTION 34.13.(b) Pilot Project. – Notwithstanding any provision of Chapter 136 of the
6 General Statutes to the contrary, the Department of Transportation may establish and implement
7 a pilot project to award contracts for up to five projects eight projects for the construction of
8 transportation projects on a construction manager-general contractor basis. The Department may
9 only award a contract under this section if (i) the cost of the project is determined by the
10 Department to be less than five hundred million dollars ($500,000,000), (ii) the Department
11 determines that it is in the public interest to use the construction manager-general contractor basis
12 for the project, (iii) the Department prequalifies the contractor that will be awarded the contract,
13 (iv) the Department complies with the pre-award reporting requirement set forth in subsection
14 (c) of this section, and (v) the Department has established and implemented guidelines as required
15 under subsection (d) of this section."
16
17 REPEAL TRAFFIC IMPACT ANALYSIS REPORT TO JLTOC
18 SECTION 4. G.S. 136-93.1A(g) is repealed.
19
20 REPEAL CASH BALANCE TARGET AMOUNT REPORT
21 SECTION 5. G.S. 143C-6-11(m) is repealed.
22
23 DEPARTMENT MAY SPECIFY MATERIAL SUBSTITUTION REQUIREMENTS
24 SECTION 6. G.S. 136-28.1 is amended by adding a new subsection to read:
25 "(n) The Department of Transportation may specify a brand name or specific manufacturer
26 of construction materials in order to promote system compatibility or synchronization; long-term
27 maintenance savings or efficiencies; research, testing, or experimental projects; product
28 evaluation; or when it is impossible or impractical to specify the required performance and design
29 characteristics for such materials when required for replacement or repair of an existing asset."
30
31 ADJUST REQUIREMENTS FOR ROW REGISTRATIONS
32 SECTION 7. G.S. 136-19.4 reads as rewritten:
33 "§ 136-19.4. Registration of right-of-way plans.
34 (a) A copy of the cover sheet and plan and profile sheets of the final right-of-way plans
35 for all Department of Transportation projects, on those projects for which plans are prepared,
36 under which right-of-way or other interest in real property is acquired or access is controlled shall
37 be certified by the Department of Transportation to the register of deeds of the county or counties
38 within which the project is located. The Department shall certify said plan sheets to the register
39 of deeds within two weeks from their formal approval by the Board of Transportation.
40 …
41 (d) If after the approval of said final right-of-way plans the Board of Transportation shall
42 by resolution alter or amend said right-of-way or control of access, the Department of
43 Transportation, within two weeks from the adoption by the Board of Transportation of said
44 alteration or amendment, shall certify to the register of deeds in the county or counties within
45 which the project is located a copy of the amended plan and profile sheets approved by the Board
46 of Transportation and the register of deeds shall remove the original plan sheets and record the
47 amended plan sheets in lieu thereof.
48 (e) The register of deeds in each county shall collect a fee from the Department of
49 Transportation for recording right-of-way plans and profile sheets in the amount set out in
50 G.S. 161-10."
51
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 General Assembly Of North Carolina Session 2023
1 REVISION TO BRIDGE PROGRAM OUTSOURCING
2 SECTION 8. G.S. 136-76.2(c) reads as rewritten:
3 "(c) Outsourcing. – Except for the following activities, all projects funded under the bridge
4 program established under subsection (a) of this section shall be outsourced to private
5 contractors:
6 (1) Inspection.
7 (2) Pre-engineering.
8 (3) Contract preparation.
9 (4) Contract administration and oversight.
10 (5) Planning activities.
11 (6) Installation of culverts described in subsection (b) of this section, but only in
12 cases of emergency.section on non-outlet roads."
13
14 REVISION TO ADVANCE RIGHT-OF-WAY ACQUISITION ACCOUNT
15 SECTION 9. Section 41.7 of S.L. 2022-74 reads as rewritten:
16 "SECTION 41.7.(a) The State Controller shall transfer the sum of one hundred nine million
17 eight hundred thirty-four thousand nine hundred seventy-two dollars ($109,834,972) from the
18 Highway Fund to the Highway Trust Fund Advance Right-of-Way Acquisition Account. These
19 funds shall be used by the Department of Transportation for the purchase of property under the
20 Undue Hardship Advance Acquisition Program (Undue Hardship Program).Advance
21 Acquisition Program.
22 "SECTION 41.7.(b) The Department shall streamline the Undue Hardship Program to
23 ensure that property in a planned transportation project area is purchased expeditiously from a
24 property owner experiencing an undue hardship, as that term is defined in G.S. 136-186(a)(3),
25 resulting from a rescheduled or reprioritized Strategic Transportation Investment (STI) project.
26 Beginning October 1, 2022, the Department shall submit a quarterly report to the Joint Legislative
27 Transportation Oversight Committee (JLTOC) and the Fiscal Research Division containing the
28 Department's streamlined efforts, the amount of property purchased, and the number of hardship
29 claims by the Highway Division."
30
31 EXTEND EXPIRATION DATE OF BUILD NC BOND ACT
32 SECTION 10. Section 7 of S.L. 2018-16 reads as rewritten:
33 "SECTION 7. This act becomes effective January 1, 2019, and expires December 31,
34 2028.December 31, 2030."
35
36 TURNPIKE BILL COLLECTION
37 SECTION 11. G.S. 136-89.213 reads as rewritten:
38 "§ 136-89.213. Administration of tolls and requirements for open road tolls.
39 (a) Administration. – The Authority is responsible for collecting tolls on Turnpike
40 projects. In exercising its authority under G.S. 136-89.183 to perform or procure services
41 required by the Authority, the Authority may contract with one or more providers to perform part
42 or all of the collection functions and may enter into agreements to exchange information,
43 including confidential information under subsection (a1) of this section, that identifies motor
44 vehicles and their owners with one or more of the following entities: the Division of Motor
45 Vehicles of the Department of Transportation, another state, another toll operator, a toll
46 collection-related organization, insurance companies, or a private entity that has entered into a
47 partnership agreement with the Authority pursuant to G.S. 136-89.183(a)(17). Further, the
48 Authority may assign its authority to fix, revise, charge, retain, enforce, and collect tolls and fees
49 under this Article to a private entity that has entered into a partnership agreement with the
50 Authority pursuant to G.S. 136-89.183(a)(17).
51 …."
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 General Assembly Of North Carolina Session 2023
1
2 ADD VIN NUMBER TO UNPAID TOLL BILL AND AUTHORIZE ELECTRONIC
3 INFORMATION COLLECTION FOR OWNER VERIFICATION
4 SECTION 12.(a) G.S. 136-89.214 reads as rewritten:
5 "§ 136-89.214. Bill for unpaid open road toll.
6 …
7 (b) Information on Bill. – A bill sent under this section must include all of the following
8 information:
9 …
10 (1a) The vehicle identification number (VIN) or other vehicle identifying
11 information of the motor vehicle that traveled on the Turnpike project.
12 …
13 (c) Electronic Information Verification. – The Authority may utilize digital
14 communications and methods to obtain information for a registered owner of a motor vehicle
15 through verification of phone numbers, connected or enabled vehicle applications, and other
16 digital means to pursue a bill by first-class mail."
17 SECTION 12.(b) This section becomes effective July 1, 2023, and applies to toll
18 collection for vehicle use on a Turnpike project occurring on or after that date.
19
20 INCREASE TURNPIKE PROCESSING FEE FOR BILLING
21 SECTION 13.(a) G.S. 136-89.215(b) reads as rewritten:
22 "(b) Fee. – If a person does not take one of the actions required under subsection (a) of
23 this section within the required time, the Authority may add a processing fee to the amount the
24 person owes. The processing fee may not exceed six dollars ($6.00). nine dollars ($9.00). A
25 person may not be charged more than forty-eight dollars ($48.00) seventy-two dollars ($72.00)
26 in processing fees in a 12-month period.
27 The Authority must set the processing fee at an amount that does not exceed the costs of
28 collecting the unpaid toll."
29 SECTION 13.(b) This section becomes effective July 1, 2023, and applies to toll
30 collection for vehicle use on a Turnpike project occurring on or after that date.
31
32 HOV LANE RESTRICTIONS
33 SECTION 14. G.S. 20-146.2(a) reads as rewritten:
34 "(a) HOV La