GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	2 

HOUSE BILL 399*
Committee Substitute Favorable 4/7/89

Short Title:  North Carolina Highway Trust Fund.	(Public)
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Sponsors:
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Referred to:  
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February 28, 1989

A BILL TO BE ENTITLED
AN ACT TO CREATE THE NORTH CAROLINA TRUST FUND AND TO DESIGNATE THE FUNDING SOURCES FOR THE FUNDS AND PURPOSES FOR THE FUND AND TO PROVIDE FOR INCREASED REVENUES FOR OTHER HIGHWAY PROGRAMS.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 136 of the General Statutes is amended by adding a new Article to read:
“ARTICLE 14.
"North Carolina Highway Trust Fund.
"§ 136-175.  North Carolina Highway Trust Fund; created.
There is created a special account within the State Treasury to be known as the ‘North Carolina Highway Trust Fund'.  The Trust Fund shall contain the proceeds from the sources designated by this Article and the Trust Fund is continuously appropriated for the purposes designated by this Article.
"§ 136-176.  North Carolina Highway Trust Fund; purposes.
The Trust Fund shall be used:
(1)	For the planning, design, and construction of the North Carolina Intrastate System specifically described in G.S. 136-178.
(2)	For the planning, design and construction of the Urban Loops described in G.S. 136-179.
(3)	For a supplement to secondary road construction as described in G.S. 136-180.
(4)	For a supplement to the Transportation Improvement Program.
Funds from the North Carolina Highway Trust Fund may be substituted on a dollar-for-dollar basis with funds from the Federal Aid Construction Program.
"§ 136-177.  North Carolina Highway Trust Fund; sources.
The Trust Fund shall receive all funds generated by:
(1)	The three cents (3¢) per gallon tax on motor fuel collected pursuant to Articles 36, 36A, and 36B of Chapter 105 of the General Statutes.
(2)	The two percent (2%) fee on the transfer of motor vehicles collected pursuant to G.S. 20-72.1.
(3)	The nine percent (9%) of the net revenue of the Highway Fund transferred to the North Carolina Highway Trust Fund pursuant to G.S. 136-182.
"§ 136-178.  North Carolina Intrastate System.
Sixty and five one-hundredths percent (60.05%) of the Trust Fund shall be used to plan, design and construct the North Carolina Intrastate System, hereinafter referred to in this Article as the ‘Intrastate System'.  The Intrastate System is a network of major multi-lane arterial highways established to provide a high level of travel service (speed, safety and mobility) throughout the State, and serves to connect major population centers both inside and outside the State to provide safe, convenient, through travel for motorists.  The Intrastate System is designed to support statewide growth and development objectives and connect to major highways of adjoining states.  Designed for high speed travel, these corridors shall have access control determined by travel service and economic considerations.
The North Carolina Intrastate System shall consist of those routes on the State primary and urban system designated herein.  All segments of these highways are to have four or more travel lanes, vertical separation or interchanges at crossings where warranted, including expansion of existing multi-lane segments where needed, and bypasses where determined necessary, and are to be under construction no later than the year 2001.  The Department of Transportation shall develop, and update annually, a schedule for all Intrastate System improvements to be done over the twelve-year period FY 1989-90 through FY 2000-01.
The Department of Transportation may add additional multi-lane routes to the Intrastate System that have been designed and built to meet the construction criteria of the completed portions of the System; provided, no funds from the Highway Trust Fund may be expended on the portions of the Intrastate System added by the Department of Transportation.
The completion of the Intrastate System shall be a top priority of the Department of Transportation.  If the funds allocated by this section are insufficient for the entire Intrastate System to be under construction by the year 2001, the funds shall be supplemented with funds that would be available from the supplement in G.S. 136-182 and then with other funds available for the construction of the Transportation Improvement Program projects authorized by G.S. 143B-350(f)(4).
The Intrastate System Construction Program consists of improvements on the following routes:

Route	Improvements	Affected Counties
I-26	None Anticipated

I-40	Widening	Buncombe, Haywood,
Guilford, Wake, Durham

I-77	Widening	Mecklenburg

I-85	Widening	Durham, Orange, Alamance
Guilford, Cabarrus,
Mecklenburg, Gaston

I-95 	Widening	Halifax

I-240	None Anticipated

I-277	None Anticipated

US-29	None Anticipated

US-64	Complete 4-laning from	Edgecombe, Pitt,
Raleigh to Coast	Martin, Washington,
(including freeway	Tyrrell, Dare
construction from I-95
to US-17)

US-264	Complete 4-laning from	Wilson, Greene,
US-64 to Washington	Pitt
(including Wilson and
Greenville Bypasses)
(including freeway
construction from I-95
to Greenville)

US-70	Complete 4-laning from	Wake, Johnston,
Raleigh to Morehead City	Wayne, Lenoir,
(including Clayton,	Craven
Goldsboro, Kinston,
Smithfield-Selma, and
Havelock Bypasses)

NC-24	Complete 4-laning from	Mecklenburg,
Charlotte to Morehead 	Cabarrus, Stanly,
City	Montgomery,Moore,
Harnett, Cumberland,
Sampson, Duplin,
Onslow, Carteret

US-74	Complete 4-laning from	Mecklenburg, Union,
Charlotte to US-17	Richmond, Robeson,
(including multi-laning	Columbus
of Independence Blvd. in
Charlotte, and Bypasses
of Monroe, Rockingham,
and Hamlet)

US-74	Complete 4-laning from	Polk, Rutherford
I-26 to I-85

US-158	Complete 4-laning	Forsyth, Guilford,
from Winston-Salem	Rockingham, Caswell,
to Whalebone	Person, Granville,
Vance, Warren,
Halifax,
Northampton, Gates,
Hertford,
Pasquotank, Camden,
Currituck, Dare

New bridge over	Currituck
Currituck Sound

US-64	Complete 4-laning from	Davidson, Randolph,
Lexington to Raleigh	Chatham, Wake

US-421	Complete 4-laning from	Watauga, Wilkes,
Tennessee Line to I-40	Yadkin

US-421	Complete 4-laning from	Chatham, Lee
Greensboro to Sanford
(including Bypass of
Sanford)

NC-87	Complete 4-laning from	Lee, Harnett,
Sanford to US-74	Cumberland, Bladen,
Columbus

US-13	Connector from I-95	Cumberland
to NC-87

US-19/	Complete 4-laning from	Madison, Yancey,
US-19E	US-23 to NC 194 in	Mitchell, Avery
Ingalls

NC-194	Complete 4-laning from	Avery
US-19E to US-221

US-19	Complete 4-laning	Cherokee, Macon,
Swain

US-23-441	Complete 4-laning from	Macon
US-19/US-74 to Georgia
Line

US-23	Complete 4-laning and	Madison, Buncombe
upgrading existing
4-lanes from Tennessee
Line to I-240

NC-105	Complete 4-laning from	Watauga, Avery
Boone to Linville

US-221	Complete 4-laning from	Avery, McDowell,
Linville to South 	Rutherford
Carolina

US-321	Complete 4-laning from	Caldwell, Catawba,
Boone to South Carolina	Lincoln, Gaston
Line

US-52	Complete 4-laning from	Surry, Davidson
I-77 to Lexington
(including new I-77
Connector)

US-220/NC-68	Complete 4-laning from	Rockingham, Guilford
	Virginia Line to I-40

US-220	Complete 4-laning from	Guilford, Randolph,
I-40 to the inter-	Montgomery, Richmond
section with US-1

US-1	Complete 4-laning from	Vance, Franklin,
Henderson to South	Wake, Chatham, Lee,
Carolina Line	Moore, Richmond
(including 6-laning of
Raleigh Beltline)

US-13	Complete 4-laning from	Gates, Hertford,
Virginia Line to US-17	Bertie

US-17	Complete 4-laning from	Camden, Pasquotank,
Virginia Line to South	Perquimans, Chowan,
Carolina Line (including	Bertie, Martin,
Washington, New Bern,	Beaufort, Craven,
and Jacksonville	Jones, Onslow,
Bypasses)	Pender, New Hanover,
	Brunswick

NC-168	Complete multi-laning	Currituck
from Virginia Line
to US-158
"§ 136-179.  Urban loops.
Twenty-four and six one-hundredths percent (24.06%) of the Trust Fund shall be used to plan, design and construct the following Urban Loops:

Loop	Description	County
Charlotte Outer Loop	Multi-lane facility on	Mecklenburg
	new location encircling
	City of Charlotte.

Raleigh Outer Loop	Multi-lane facility on	Wake
	new location from US-1
	southwest of Cary
northerly to US-64 in
eastern Wake County.

Greensboro Loop	Multi-lane facility on new	Guilford
	location encircling City
	of Greensboro.

Winston-Salem	Multi-lane facility on 	Forsyth
Northbelt	new location from I-40 west
of Winston-Salem northerly
to I-40 in eastern Forsyth
County.

Durham Northern Loop	Multi-lane facility on new	Durham, Orange
	location from I-85 west of
	Durham to US-70 east of
	Durham.

Asheville Western	Multi-lane facility on new	Buncombe
Loop	location from I-26 west of
Asheville to US-19/23
north of Asheville.

Wilmington Bypass	Multi-lane facility on new	New Hanover
location from US-17
northeast of Wilmington
to the US-17 southwest
of Wilmington.
"§ 136-180.  Secondary roads.
(a)	Six and one-half percent (6.5%) of the Trust Fund shall be used to supplement the regular secondary road appropriations to each county, on a pro rata basis, so as to pave by 1999 all secondary roads with a traffic vehicular equivalent of 50 vehicles per day.  All funds shall be allocated solely based upon the ratio of the number of miles of unpaved secondary road mileage with traffic vehicular equivalent of 50 vehicles per day within a county as compared to the total number of State-maintained unpaved secondary road miles with traffic vehicular equivalent of 50 vehicles per day.  This supplement shall be discontinued when the Department of Transportation certifies that with funds available, all remaining unpaved secondary roads can be paved during the following six years.
(b)	When a secondary road within a county is listed within the first ten secondary roads to be paved during a year on a priority list, issued by the Department of Transportation, of secondary roads to be paved in that county, it cannot be removed from top ten of that list or any subsequent lists and all secondary roads within a county shall be paved, insofar as possible, in the priority order of the list.  A secondary road in the first ten secondary roads to be paved on a list issued by the Department of Transportation shall not be replaced with a secondary road below it on that list or any subsequent list.
"§ 136-181.  Transportation Improvement Program.
	Nine and thirty-nine one-hundredths percent (9.39%) of the Trust Fund shall be used to supplement the Transportation Improvement Program and the planning, design, and construction of the Intrastate System.
"§ 136-182.  Continuation funding of Trust Fund.
	Except to the extent needed to satisfy any current obligation of all outstanding bonded indebtedness pursuant to any pertinent Bond Act, within 30 days after the end of each calendar quarter, beginning with the calendar quarter ending September 30, 1989, the State Treasurer shall transfer from the Highway Fund and deposit to the credit of the North Carolina Highway Trust Fund, a sum equal to nine percent (9%) of net revenue credited to the Highway Fund during the immediately preceding quarter including the net proceeds of revenues from taxes on motor fuels collected pursuant to Articles 36, 36A, and 36B of Chapter 105 of the General Statutes, and the motor vehicle registration fees and other revenues collected pursuant to Chapter 20 of the General Statutes, including interest or income received and accruing on the State Highway Fund by reason of these revenues.  These transfers shall be made from the Highway Fund prior to the availability of these funds for any other appropriation.  The sums transferred pursuant to this section shall constitute recurring annual appropriations.
"§ 136-183.  Legislative Highway Oversight Committee.
	(a)	There is created the Legislative Highway Oversight Committee.  The members of this Committee shall be:
(1)	Eight Senators appointed by the President Pro Tempore of the Senate.
(2)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives.
Members shall serve two-year terms beginning and ending on January 15 of the odd-numbered years, except that initial appointments shall begin thirty (30)	days after the effective date of this act.  Members shall not be disqualified from completing a term of service on the Committee because they fail to run or are defeated for reelection.  Resignation or removal from the General Assembly shall constitute resignation or removal from service on the Committee.
	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each appoint a member to serve as a Cochairman of the Committee.
	(b)	The Committee shall meet at least quarterly to review reports prepared by the Department of Transportation relating to the matters contained in this Article.
	The Committee shall:
(1)	Monitor the funds deposited in and expenditures from the North Carolina Highway Trust Fund and the Highway Fund.
(2)	Determine that the funds are spent in accordance with the provisions of this Article.
(3)	Recommend to the General Assembly any revisions needed in the programs established by this Article based on funds available to the North Carolina Highway Trust Fund.
	(c)	The Committee shall prepare reports to be submitted to the General Assembly at the beginning of the regular session in odd-numbered years beginning in 1991 and made interim reports as necessary, containing any legislation needed to facilitate the construction of the projects authorized by this Article.
	(d)	The Committee, while in the discharge of official duties, may exercise all the powers provided for under the provisions of G.S. 120-19, and G.S. 120-19.1 through G.S. 120-19.4.  The Committee may meet at any time upon the joint call of the Chairman.  The Committee may meet in the Legislative Building or the Legislative Office Building.
	(e)  Members of the Committee shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1.
	(f)  The Committee may contract for professional, clerical, or consultant services as provided by G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist in the work of the Committee. The House of Representatives' and the Senate's Supervisor of Clerks shall assign clerical staff to the Committee, upon the direction of the Legislative Services Commission.  The expenses relating to clerical employees shall be borne by the Committee.
	(g)  All State departments and agencies and local governments and their subdivisions shall furnish the Committee with any information in their possession or available to them.
	(h)  The Committee shall be funded from funds available to the Legislative Services Commission.
(i)	Vacancies on the Committee shall be filled by the appropriate appointing authority."
Sec. 2.  G.S. 105-434(a) reads as rewritten:
"(a)	Tax. – An excise tax is levied on motor fuel sold, distributed, or used by a distributor within this State at the rate of seventeen cents (17¢) per gallon plus seven percent (7%) of the average wholesale price of motor fuel, but no less than the equivalent of three and one-half cents (3 1/2¢) per gallon of the average wholesale price of motor fuel, as determined semiannually by the Secretary of Revenue from information on refiner and gas plant operator sales prices of finished motor gasoline and No. 2 diesel fuel for resale, published by the United States Department of Energy in the ‘Monthly Energy Review,' or on equivalent data. The Secretary shall determine the average wholesale price of motor fuel by computing the average sales price of finished motor gasoline for the base period, computing the average sales price for No. 2 diesel fuel for the base period, and then computing a weighted average of the results of the first two computations based on the proportion of tax collected under this Article on motor fuel and Article 36A on fuel for the base period. The Secretary shall notify affected taxpayers of the tax rate to be in effect for each six-month period.
To facilitate collection of the motor fuel tax, the Secretary shall convert the percentage rate to a cents-per-gallon rate to be in effect during the six-month period beginning each January 1 and July 1. The rate to be in effect during the six-month period beginning January 1 shall be computed from data published for the six-month base period ending on the preceding September 30, and the rate to be in effect during the six-month period beginning July 1 shall be computed from data published for the six-month base period ending on the preceding March 31. The cents-per-gallon rate computed by the Secretary shall be rounded to the nearest one-tenth of a cent (1/10¢). If the cents-per-gallon rate computed by the Secretary is exactly between two tenths of a cent, the rate shall be rounded up to the higher of the two."
Sec. 3.  G.S. 105-446 reads as rewritten:
"§ 105-446.  Refund of motor fuel used other than to propel a motor vehicle.
A person who purchases and uses motor fuel for a purpose other than to operate a licensed motor vehicle may receive an annual refund, for the tax paid during the preceding calendar year, at a rate equal to seventeen cents (17¢) per gallon plus the average of the two wholesale cents-per-gallon rates of tax in effect during the year for which refund is claimed, less one cent (1¢) per gallon. An application for a refund allowed under this section shall be made in accordance with G.S. 105-440."
Sec. 4.  G.S. 105-446.1 reads as rewritten:
"§ 105-446.1.  Refunds of taxes paid by counties and municipalities.
The following entities shall be entitled to reimbursement for the tax levied by G.S. 105-434 upon filing a statement in writing with the Secretary of Revenue, which statement shall be made upon the oath or affirmation of the chief executive officer of said entity, showing the number of gallons of fuel purchased and used by said entity on which the tax levied by G.S. 105-434 has been paid: the Department of Transportation, counties, municipal corporations, volunteer fire departments, county fire departments, volunteer rescue squads, and ‘sheltered workshop' organizations recognized and approved by the  Department of Human Resources. ‘Chief executive officer' shall mean the Secretary of the North Carolina Department of Transportation, the mayor, city manager or other municipal officer designated by the governing body of the municipality, the chairman of the board of county commissioners or other county officer designated by the board of county commissioners, or the president or other duly designated officer or agent of a volunteer fire department, county fire department, volunteer rescue squad or ‘sheltered workshop' organization. Reimbursement shall be at a rate equal to seventeen cents (17¢) per gallon plus the wholesale cents-per-gallon rate of tax in effect during the quarter for which the refund is claimed, less one cent (1¢) per gallon. An application for a refund under this section shall be made in accordance with G.S. 105-440."
Sec. 5.  G.S. 105-446.3(a) reads as rewritten:
"(a)	Any person, association, firm or corporation, who shall purchase any motor fuels, as defined in this Article, for the purpose of use, and the same is actually used, in the operation of motor buses transporting fare-paying passengers, in connection with a city transit system or in the operation of a taxicab transporting fare-paying passengers, both as hereinafter defined in subsection (b) of this section, or in the operation, by private nonprofit organizations, of motor vehicles transporting passengers under contract with or at the express designation of units of local government (such transportation above and hereinafter referred to as private nonprofit  transportation services) shall be entitled to reimbursement for the tax levied by this Article upon filing with the Secretary of Revenue an application upon the oath or affirmation of the applicant or his agent showing the number of gallons of motor fuel so purchased and used. Reimbursement shall be at a rate equal to seventeen cents (17¢) per gallon plus the wholesale cents-per-gallon rate of tax in effect during the quarter for which the refund is claimed, less one cent (1¢) per gallon. An application for a refund allowed under this section shall be made in accordance with G.S. 105-440."
Sec. 5.1.  G.S. 105-446.5(a) reads as rewritten:
"(a)	Refund. – A person who purchases and uses motor fuel in one of the vehicles listed below may receive a refund for the amount of fuel consumed by the vehicle:
(1)	A concrete mixing vehicle;
(2)	A solid waste compacting vehicle;
(3)	A bulk feed vehicle that delivers feed to poultry or livestock and uses a power take-off to unload the feed; and
(4)	A vehicle that delivers lime or fertilizer in bulk to farms and uses a power take-off to unload the lime or fertilizer.
The refund rate shall be computed by subtracting one cent (1¢) from seventeen cents (17¢) per gallon plus the average of the two wholesale  cents-per-gallon rates of tax in effect during the year for which the refund is claimed, and multiplying the difference by thirty-three and one-third percent (33 1/3%). An application for a refund allowed under this section shall be made in accordance with G.S. 105-440. This refund is allowed for the amount of fuel consumed by the vehicle in its mixing, compacting, or unloading operations, as distinguished from propelling the vehicle, which amount is considered to be one third of the amount of fuel consumed by the vehicle."
Sec. 5.2.  G.S. 105-446.6 reads as rewritten:
"§ 105-446.6. Refund on taxpaid motor fuel transported to another state.
Upon application to the Secretary, any person, association or corporation who purchases motor fuel upon which the tax imposed by this Article has been paid, and who transports the fuel to another state for sale or use in that state may be reimbursed at a rate equal to seventeen cents (17¢) per gallon plus the wholesale cents-per-gallon rate of tax paid on the fuel, less one cent (1¢) per gallon. The refund application shall require the claimant to furnish evidence satisfactory to the Secretary that the motor fuel for which the refund is claimed has been reported for taxation in the state to which it was transported. As used in this section, to ‘transport' means to carry motor fuel in a cargo tank, tank car, barge or barrel and does not include carrying fuel in a tank connected with or attached to the engine of a motor vehicle."
Sec. 6.  G.S. 136-41.1(a) reads as rewritten:
"(a)	There is hereby annually appropriated out of the State Highway Fund a sum equal to nine percent (9%) of the annual net revenues paid into the State Highway Fund to be allocated in cash on or before October 1 of each year to the cities and towns of the State in accordance with the following formula:
Seventy-five percent (75%) of said funds shall be distributed among the several eligible municipalities of the State in the percentage proportion that the population of each eligible municipality bears to the total population of all eligible municipalities according to the most recent annual estimates of population as certified to the Secretary of Revenue by the State Budget Officer. This annual estimation of population shall include increases in the population within the municipalities caused by annexations accomplished through July 1 of the calendar year in which these funds are distributed. Twenty-five percent (25%) of said fund shall be distributed among the several eligible municipalities of the State in the percentage proportion that the mileage of public streets in each eligible municipality which does not form a part of the State highway system bears to the total mileage of the public streets in all eligible municipalities which do not constitute a part of the State highway system.
It shall be the duty of the mayor of each municipality to report to the Department of Transportation such information as it may request for its guidance in determining the eligibility of each municipality to receive funds by virtue of G.S. 136-41.1 and 136-41.2 and in determining the amount of allocation to which each is entitled. Upon failure of any municipality to make such report within the time prescribed by the Department of Transportation, the Department of Transportation may disregard such defaulting unit in making said allotment.
The funds to be allocated under this section shall be paid in cash to the various eligible municipalities on or before October 1 each year after March 15, 1951. Provided that eligible municipalities are authorized within the discretion of their governing bodies to enter into contracts for the purpose of maintenance, repair, construction, reconstruction, widening, or improving streets of such municipalities at any time after January 1 of any calendar year in total amounts not to exceed ninety percent (90%) of the amount received by such municipality during the preceding fiscal year, in anticipation of the receipt of funds under this section during the next fiscal year, to be paid for out of such funds when received.
No allocation to cities and towns shall be made under the provisions of this section from the one cent (1¢) per gallon additional tax on gasoline imposed by Chapter 46 of the Session Laws of 1965, unless and until said additional one cent (1¢) per gallon tax produces funds which are not needed for or committed by said Chapter 46 of the Session Laws of 1965, to the payment of the principal of or the interest on the secondary road bonds issued pursuant to the provisions of said Chapter 46 of the Session Laws of 1965. The Department of Transportation is hereby authorized to withhold each year an amount not to exceed one percent (1%) of the total amount appropriated in G.S. 136-41.1 for the purpose of correcting errors in allocations: Provided, that the amount so withheld and not used for correcting errors will be carried over and added to the amount to be allocated for the following year.
The word ‘street' as used in this section is hereby defined as any  public road maintained by a municipality and open to use by the general public, and having an average width of not less than 16 feet. In order to obtain the necessary information to distribute the funds herein allocated, the Department of Transportation may require that each municipality eligible to receive funds under G.S. 136-41.1 and 136-41.2 submit to it a statement, certified by a registered engineer or surveyor of the total number of miles of streets in such municipality. The Department of Transportation may in its discretion require the certification of mileage on a biennial basis."
Sec. 7.  G.S. 136-44.2A reads as rewritten:
"§ 136-44.2A.  Secondary road construction.
There shall be annually allocated out of the State Highway Fund to the Department of Transportation for secondary road construction programs developed pursuant to G.S. 136-44.7 and 136-44.8, a sum equal to that allocation made under G.S. 136-41.1(a). The sum of sixty-eight million six hundred seventy thousand dollars ($68,670,000) allocated to secondary road construction shall be distributed in accordance with the provisions of G.S. 136-44.5.  All funds for secondary road construction in excess of sixty-eight million six hundred seventy thousand dollars ($68,670,000) shall be allocated solely based upon the ratio of the number of miles of unpaved secondary road mileage with traffic vehicular equivalent of 50 vehicles per day within a county as compared to the total number of State-maintained unpaved secondary road miles with traffic vehicular equivalent of 50 vehicles per day.
The Department of Transportation shall report, on or before April 1 of each year, to the General Assembly, and to the Fiscal Research Division of the Legislative Services Commission, the number of secondary road miles with a traffic vehicular equivalent of 50 vehicles per day statewide, the number of secondary road miles with a traffic vehicular equivalent of 50 vehicles per day in each county, and the number of secondary road miles with a traffic vehicular equivalent of 50 vehicles per day paved pursuant to this section."
Sec. 8.  Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20-72.1.  Transfer fee.
	(a)	The Division shall collect a fee for the issuance of a vehicle title in the following manner:
(1)	On new and used vehicles sold by registered dealers, those dealers shall collect a fee equal to two percent (2%) of the ‘sale price' of the vehicle as defined and determined in Article 5, Schedule E of Chapter 105 of the General Statutes and remit the fee along with the registration fees to the Division.
(2)	On transfers of title after sales between persons other than registered dealers, the Division shall collect a fee equal to two percent (2%) of the average fair market value of each vehicle, as determined by the Division, for which an application for certificate of title is filed.
(3)	There shall be a minimum title transfer fee of twenty-five dollars ($25.00).
(4)	The provisions of this section shall not apply to transfers of manufactured or mobile homes as defined in G.S. 143-143.9.
	(b)	The fee imposed by this section shall be in addition to any other fees imposed by law.  The fees imposed by this section shall be collected before a certificate of title is issued.  The funds derived from this fee shall be deposited in the North Carolina Highway Trust Fund for the exclusive use of the purposes set out in G.S. 136-176, and disbursed on vouchers drawn by the Board of Transportation in accordance with the acts of the General Assembly dealing with the subject matter herein referred to.
	(c)	The Division may issue rules concerning the collection of the fees described in subsection (a) of this section including procedures covering the methods by which the fees may be paid and the collection of uncollectable checks and drafts issued to the Division or contractors with the Division for the title transfer fee.
	(d)	The Division shall begin collecting the transfer fee no later than 60 days following ratification of this act."
Sec. 9.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-184. Distribution formula.
The funds, for the construction of the program authorized in G.S. 136-178 and all funds allocated for construction under the Transportation Improvement Program, and exempting G.S. 136-179, shall be distributed in the following manner:
(1)	For purposes of this formula, the State shall be divided into seven Distribution Regions:
a.	Highway Divisions 1 and 4 shall be Distribution Region A.
b.	Highway Divisions 2 and 3 shall be Distribution Region B.
c.	Highway Divisions 5 and 6 shall be Distribution Region C.
d.	Highway Divisions 7 and 9 shall be Distribution Region D.
e.	Highway Divisions 8 and 10 shall be Distribution Region E.
f.	Highway Divisions 11 and 12 shall be Distribution Region F.
g.	Highway Divisions 13 and 14 shall be Highway Distribution Region G.
(2)	The amount of funds available during each seven-year period for the construction of Intrastate System Construction Program authorized in G.S. 136-178, G.S. 136-181, and exempting G.S. 136-179, and all funds allocated for construction of projects under the Transportation Improvement Program in each Distribution Region shall be determined by multiplying the total amount of the funds available for that seven-year period for the construction of these projects by a factor based:  twenty-five percent (25%) on the miles to complete the Intrastate System within the Distribution Region as compared to the miles of the entire Intrastate System; fifty percent (50%) on the population of the Distribution Region compared to the total population of the State; and twenty-five percent (25%) on an equal share based on the number of Distribution Regions (one-seventh).
(3)	These funds shall be distributed on a seven-year construction program, which shall be updated annually.
(4)	When ninety percent (90%) of the Intrastate System Construction Program is completed, as certified by the Department of Transportation the distribution formula shall change to be determined by multiplying the total amount of funds available in that fiscal year for the construction of the projects authorized by G.S. 136-178, G.S. 136-181, exempting G.S. 136-179, and all funds allocated for construction of projects under the Transportation Improvement Program  by a factor based:  sixty-six percent (66%) on the population of the Distribution Region as compared to the total population of the State and thirty-four percent (34%) on an equal share based on the number of Distribution Regions (14.28%).
(5)	Each Distribution Region shall receive, in each consecutive seven-year period, within ten percent (10%), more or less, of the funds determined using the formulae set forth in subdivisions (3) and (4) of this section.
(6)	The miles of the Intrastate System completed, the VMT, and the population figures for the State and each Distribution Region shall be adjusted on July 1, or each year."
Sec. 10.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-44.16.  Toll road study authorized.
	The Department of Transportation shall determine on which highways and bridges it is legally and economically feasible to collect tolls and shall report to the 1991 General Assembly along with the necessary legislation to implement the collection of the tolls including the creation of a North Carolina Toll Roads Authority to collect the tolls."
Sec. 11.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136-12A. Transportation Improvement Program submitted to General Assembly before approval.
	(a)	The Department shall submit the Transportation Improvement Program, including any interim changes, to the persons and agencies listed in subsection (c) of this section at least thirty (30) days prior to its approval by the Board of Transportation, pursuant to G.S. 143B-350(f)(4).
	(b)	The Transportation Improvement Program shall contain:
(1)	A copy of the proposed Transportation Improvement Program; and
(2)	A list of changes, and the reasons for each change made from the last Transportation Improvement Program, including additions, deletions, postponements, and accelerated projects.
	(c)	Copies of the report required by subsection (a) of this section shall be delivered to:
(1)	The Chairmen of the House Appropriations Committee, the Highway Subcommittee of the House Appropriations Committee, the Senate Appropriations Committee and the Senate Budget Committee;
(2)	The Chairmen of the Senate Transportation Committee  and the Highway Subcommittee of the Infrastructure Committee of the House;
(3)	The Speaker of the House of Representatives, the President Pro Tempore of the Senate, the Lieutenant Governor, and the Speaker Pro Tempore of the House of Representatives;
(4)	The Fiscal Research Division of the Legislative Services Commission; and
(5)	Members of the Legislative Highway Oversight Committee."
Sec. 12.  Should any portion of G.S. 136-178, 136-179, 136-183, or 136-184 be finally declared unconstitutional by any court of competent jurisdiction, then there shall be no further allocations of funds from the North Carolina Highway Trust Fund, except for the expenditure of previously encumbered funds, until the General Assembly acts to authorize further allocations.
Sec. 13.  Notwithstanding any provision of this act, nothing in this act authorizes the appropriation, allocation, or expenditure of any funds.
Sec. 14.  This act is effective upon ratification and the taxes imposed by Sections 2 and 3 of this act and the fee imposed by Section 8 of this act shall be collected beginning no later than 60 days after the ratification date of this act.