A BILL TO BE ENTITLED
AN ACT TO IMPLEMENT the NORTH CAROLINA MOVING AHEAD transportation INITIATIVE BY ALLOWING CASH BALANCES IN THE HIGHWAY TRUST FUND TO BE USED TO MEET CRUCIAL TRANSPORTATION NEEDS, to require funds designated by this act for preservation, modernization, and maintenance be expended in accordance with the equity distribution FORMULA, To require the DEPARTMENT of Transportation to certify that use of funds in ACCORDANCE with this act will not delay construction of any highway trust fund project, to reaffirm the intent of the general assembly that proceeds from the issuance of bonds under authority of the State HIGHWAY bond act of 1996 shall be used for the purposes stated in that act, and for no other purpose, to establish a blue ribbon commission to study solutions to north carolina's urban transportation NEEDS, AND TO CLARIFY THE EFFECTIVENESS OF PERMITS ISSUED BY THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a3)	The Department may obligate three hundred million dollars ($300,000,000) in fiscal year 2003-2004 and four hundred million dollars ($400,000,000) in fiscal year 2004-2005 of the cash balance of the Highway Trust Fund for the following purposes:
(1)	Six hundred thirty million dollars ($630,000,000) for highway system preservation, modernization, and maintenance, including projects to enhance safety, reduce congestion, improve traffic flow, reduce accidents, upgrade pavement widths and shoulders, extend pavement life, improve pavement smoothness, and rehabilitate or replace deficient bridges; and for economic development transportation projects recommended by local officials and approved by the Board of Transportation.
(2)	Seventy million dollars ($70,000,000) for regional public transit systems, rural and urban public transportation system facilities, regional transportation and air quality initiatives, rail system track improvements and equipment, and other ferry, bicycle, and pedestrian improvements. For any project or program listed in this subdivision for which the Department receives federal funds, use of funds pursuant to this subdivision shall be limited to matching those funds."
SECTION 2.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a4)	Projects selection pursuant to subsection (a3) of this section shall be based on identified and documented need. Funds expended pursuant to subdivision (1) of subsection (a3) of this section shall be distributed in accordance with the distribution formula in G.S. 136-17.2A.  No funds shall be expended pursuant to subsection (a3)(1) of this section on any project that does not meet Department of Transportation standards for road design, materials, construction, and traffic flow."
SECTION 3.  G.S. 136‑176 is amended by adding a new subsection to read:
"(a5)	The Department shall report to the Joint Legislative Transportation Oversight Committee, on or before September 1, 2003, on its intended use of funds pursuant to subsection (a3) of this section. The Department shall report to the Joint Transportation Appropriations Subcommittee, on or before May 1, 2004, on its actual current and intended future use of funds pursuant to subsection (a3) of this section. The Department shall certify to the Joint Legislative Transportation Oversight Committee each year, on or before November 1, that use of the Highway Trust Fund cash balances for the purposes listed in subsection (a3) of this section will not adversely affect the delivery schedule of any Highway Trust Fund projects. If the Department cannot certify that the full amounts authorized in subsection (a3) of this section are available, then the Department may determine the amount that can be used without adversely affecting the delivery schedule and may proportionately apply that amount to the purposes set forth in subsection (a3) of this section."
SECTION 4.  The General Assembly reaffirms its intent that the proceeds of the issuance of any bonds pursuant to the Highway Bond Act of 1996, Chapter 590 of the 1995 Session Laws, shall be used only for the purposes stated in that act, and for no other purpose.
SECTION 5.(a)  Commission Established. – There is established in the General Assembly a Blue Ribbon Commission to study the unique mobility needs of urban areas in North Carolina.
SECTION 5.(b)  Membership. – The Commission shall be composed of 27 members as follows:
(1)	Fifteen members of the public appointed by the Governor, two of whom shall represent the Regional Transportation Alliance, one of whom shall represent the environmental community, two of whom shall represent the Business Coalition for Regional Transportation Strategies, two of whom shall represent the North Carolina Citizens for Business and Industry, two of whom shall represent the transportation industry, and four of whom shall be mayors from among the 10 most populous municipalities in the State.
(2)	Six members of the House of Representatives appointed by the Speaker of the House of Representatives.
(3)	Six members of the Senate appointed by the President Pro Tempore of the Senate.
SECTION 5.(c)  Secretary of Transportation. – The Commission shall invite the Secretary of Transportation to attend each meeting of the Commission and encourage his participation in the Commission's deliberations.
SECTION 5.(d)  Duties of Commission. – The Commission shall study the following matters related to North Carolina's urban needs:
(1)	Innovative financing approaches to mitigate urban congestion.
(2)	Local revenue options which would give urban areas more control over their regional mobility future.
(3)	Any other urban transportation issues if approved by the cochairs or recommended by the Secretary of Transportation and approved by the cochairs.
SECTION 5.(e)  Vacancies. – Any vacancy on the Commission shall be filled by the appointing authority.
SECTION 5.(f)  Cochairs. – Cochairs of the Commission shall be designated by the Speaker of the House of Representatives and the President Pro Tempore of the Senate from among their respective appointees.  The Commission shall meet upon the call of the chairs.  A quorum of the Commission shall be 11 members.
SECTION 5.(g)  Expenses of Members. – Members of the Commission shall receive per diem, subsistence, and travel allowances in accordance with G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 5.(h)  Staff. – Adequate staff shall be provided to the Commission by the Legislative Services Office.
SECTION 5.(i)  Consultants. – The Commission may hire consultants to assist with the study.  Before expending any funds for a consultant, the Commission shall report to the Joint Legislative Commission on Governmental Operations on the consultant selected, the work products to be provided by the consultant, and the cost of the contract, including an itemization of the cost components.
SECTION 5.(j)  Cooperation. – The Commission may call upon any department, agency, institution, or officer of the State or any political subdivision thereof for facilities, data, or other assistance.
SECTION 5.(k)  Meetings During Legislative Session. – The Commission may meet during a regular or extra session of the General Assembly, subject to approval of the Speaker of the House of Representatives and the President Pro Tempore of the Senate.
SECTION 5.(l)  Meeting Location. – The Commission shall meet at various locations around the State in order to promote greater public participation in its deliberations.  The Legislative Services Commission shall grant adequate meeting space to the Commission in the State Legislative Building or the Legislative Office Building.
SECTION 5.(m)  Report. – The Commission shall make an interim report of its findings and recommendations to the 2004 Regular Session of the 2003 General Assembly and shall make a final report of its findings and recommendations to the 2005 General Assembly.  The Committee shall submit copies of the reports to the Governor and the Secretary of Transportation.  Upon the filing of its final report, the Commission shall terminate.
SECTION 5.(n)  Funding. – The Commission may apply for, receive, and accept grants of non‑State funds, or other contributions as appropriate to assist in the performance of its duties.
SECTION 5.(o)  Appropriation. – Of the funds appropriated to the General Assembly, the Legislative Services Commission shall allocate sufficient funds for the expenses of the Commission.
SECTION 5.(p)  This section is effective when it becomes law.
SECTION 6.  Chapter 136 of the General Statutes is amended by adding a new section to read:
"(a)	Once the Department of Environment and Natural Resources or any agency within the Department of Environment and Natural Resources has issued a permit that is required for a transportation construction project to be undertaken by the Department of Transportation pursuant to the Transportation Improvement Program, that permit shall remain in effect until the project is completed. The permit shall not expire and shall not be modified or cancelled for any reason, including a subsequent change in federal law or regulations or in State law or rules, unless at least one of the following occurs:
(1)	The modification or cancellation is requested by the Department of Transportation.
(2)	The modification or cancellation is clearly required by a change in federal law or regulations, and a failure to modify or cancel the permit by the Department of Environment and Natural Resources will or may result in a loss of federal program delegation or a significant reduction in the availability of federal funds to the Department of Environment and Natural Resources or to the Department of Transportation.
(3)	The modification or cancellation is clearly required by a change in State law as a result of an act of the General Assembly that includes a statement that the General Assembly specifically intends the change in State law to apply to ongoing transportation construction projects.
(4)	The modification or cancellation is ordered by a court of competent jurisdiction.
(5)	The nature or scope of the transportation construction project is significantly expanded or altered.
(6)	Federal law or regulation requires that the permit expire at the end of a specific term of years."
SECTION 7.  Except as otherwise provided, this act becomes effective July 1, 2003.