A BILL TO BE ENTITLED
AN ACT to increase public‑private partnerships for tolling and other financing methods on Transportation infrastructure Projects, as recommended by the Joint Legislative Transportation Oversight Committee.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 136‑18 reads as rewritten:
"§ 136‑18.  Powers of Department of Transportation.
The said Department of Transportation is vested with the following powers:
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(39)	To enter into partnership agreements with private entities, and authorized political subdivisions to finance, by tolls, contracts, and other financing methods authorized by law, the cost of acquiring, constructing, equipping, maintaining, and operating transportation infrastructure in this State, and to plan, design, develop, acquire, construct, equip, maintain, and operate transportation infrastructure in this State. An agreement entered into under this subdivision requires the concurrence of the Board of Transportation. The Department shall report to the Chairs of the Joint Legislative Transportation Oversight Committee, the Chairs of the House of Representatives Appropriations Subcommittee on Transportation, and the Chairs of the Senate Appropriations Committee on the Department of Transportation, at the same time it notifies the Board of Transportation of any proposed agreement under this subdivision. Any contracts for construction of highways, roads, streets, and bridges which are awarded pursuant to an agreement entered into under this section shall comply with the competitive bidding requirements of Article 2 of this Chapter. In connection with any agreement entered into under this section, the following shall apply:
a.	Notwithstanding the provisions of Article 3 of Chapter 44A, an agreement entered into under this subdivision may require the private entity or its contractors to provide performance and payment security in the form and in the amount determined by the Department of Transportation. Such performance and payment security may consist of bonds, letters of credit, parent guaranties, or other instruments acceptable to the Department of Transportation.
b.	Notwithstanding the provisions of G.S. 143B‑426.40A, an agreement entered into under this section may allow the private entity to assign, transfer, sell, hypothecate, and otherwise convey some or all of its right, title, and interest in and to such agreement, and any rights and remedies thereunder, to a lender, bondholder, or any other party.
c.	The Department of Transportation, with respect to transportation infrastructure financed in whole or in part by tolls, shall have the powers to fix, revise, charge, and collect tolls and fees with respect to such transportation infrastructure, and an agreement entered into under this section may allow the private entity to fix, revise, charge, and collect such tolls and fees.
d.	Revenues derived from transportation infrastructure that are not allocated to a private entity or repayment of financing or other costs under an agreement entered into under this section may be used for the following:
1.	Administration, development, right-of-way acquisition, design, construction, operation, and maintenance costs of the Department.
2.	Debt service on revenue bonds issued by or on behalf of the Department.
3.	Other financing costs related to transportation infrastructure.
4.	The establishment of debt service reserve funds.
5.	Any other lawful purpose.
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(41)	The Department shall, prior to the beginning of construction, determine whether all sidewalks and other facilities primarily intended for the use of pedestrians and bicycles that are to be constructed within the right‑of‑way of a public street or highway that is a part of the State highway system or an urban highway system must be constructed of permeable pavement. "Permeable pavement" means paving material that absorbs water or allows water to infiltrate through the paving material. Permeable pavement materials include porous concrete, permeable interlocking concrete pavers, concrete grid pavers, porous asphalt, and any other material with similar characteristics. Compacted gravel shall not be considered permeable pavement.
(42)	The Department may exercise the powers and duties set forth in Article 6H of this Chapter independently of the Authority and may contract to exercise those powers and duties through a vendor, subject to the provisions of subdivision (39) of this section."
SECTION 2.  This act is effective when it becomes law.