A BILL TO BE ENTITLED
AN ACT to make changes to laws related to transportation, as recommended by the department of transportation.
The General Assembly of North Carolina enacts:

NONPUBLIC SCHOOL RIGHT‑OF‑WAY CONDEMNATION AUTHORITY
SECTION 1.  G.S. 40A‑3(a) reads as rewritten:
"(a)	Private Condemnors. – For the public use or benefit, the persons or organizations listed below shall have the power of eminent domain and may acquire by purchase or condemnation property for the stated purposes and other works which are authorized by law.
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(2)	School committees or boards of trustees or of directors of any corporation holding title to real estate upon which any private educational institution is situated, have the power of eminent domain in order to obtain a pure and adequate water supply for such institution or to accommodate transportation improvements required by the Department of Transportation.
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AIRPORT IMPROVEMENT PROGRAM
SECTION 2.(a)  Article 7 of Chapter 63 of the General Statutes is amended by adding a new section to read:
"§ 63‑74.  Airport Improvement Program.
(a)	Purpose. – There is established an Airport Improvement Program that shall serve to (i) fund improvements at eligible airports and (ii) pay debt service or related financing costs and expenses on revenue bonds or notes issued by eligible airports. The Department of Transportation shall allocate funds appropriated to this program to eligible airports based on the findings in the biennial economic impact study, as described in this section. The Department shall adopt rules governing the distribution and use of these funds.
(b)	Eligible Airport. – Any publicly owned, commercial service airport with more than 10,000 passenger boardings during the two calendar years preceding the fiscal year in which funds are allocated is eligible to apply for airport improvement program funds.
(c)	Economic Impact Study and Distribution Formula. – The Department of Transportation shall conduct a biennial economic impact study that examines the annual economic impact of each commercial and general aviation airport in North Carolina. Funds appropriated to the Airport Improvement Program shall be disbursed by the Department based on the percentage of the total economic impact of each eligible airport as determined by the economic impact study. The three largest airports, as defined by the total number of passenger boardings used to determine eligibility for this program, shall receive no more than eighty percent (80%) of the total funds allocated to the program. Should the formula developed by the Department for allocation of these funds result in an allocation to the three largest airports in excess of eighty percent (80%) of the total funds allocated, the allocation to the three largest airports in excess of eighty percent (80%) shall be reduced proportionately among the three largest airports and redistributed to the remaining eligible airports as follows. Of the funds redistributed to the remaining eligible airports, twenty‑five percent (25%) shall be allocated equally among the remaining eligible airports and seventy‑five percent (75%) shall be allocated proportionally to the remaining eligible airports based on the total number of passenger boardings used to establish eligibility for the program.
(d)	Permissible Uses, Reporting, and Return of Funds. – The Department of Transportation shall not allocate funds to an airport under this section until that airport has provided a report outlining how the airport will use the funds in conformance with the purposes of the program. No later than 45 days from the date the Department receives the report required under this subsection, the Department shall make a determination whether the intended use of the funds matches the purposes of the program and, if so, allocate funds under this section to the compliant airport. An airport that receives funds under this section shall return the funds to the Department if the funds are in the possession or control of the airport and not expended or made subject to an encumbrance by August 31 of the year following the fiscal year in which the Department makes the allocation. All funds returned to the Department under this section, or retained by the Department for failure of an eligible airport to submit a report under this subsection, shall be credited to the fund from which they were appropriated and shall remain unexpended and unencumbered until appropriated by the General Assembly.
(e)	Limitation. – Notwithstanding any provision of law to the contrary, the allocation of funds under this section to eligible airports, the enactment of this section, and the issuance of bonds or notes by the airports in reliance thereon, shall not in any manner constitute a pledge of the full faith and credit and taxing power of the State. Additionally, allocations under this section are subject to the availability of funds appropriated to the Airport Improvement Program. A security interest shall not be granted in funds allocated under this section."
SECTION 2.(b)  Section 34.19(b) of S.L. 2017‑57 is repealed.

SMALL PROFESSIONAL SERVICES FIRMS
SECTION 3.  G.S. 136‑28.4 reads as rewritten:
"§ 136‑28.4.  State policy concerning participation by disadvantaged minority‑owned and women‑owned businesses in transportation contracts.
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(c)	The following definitions apply in this section:
(1)	"Contract" includes, but is not limited to, contracts let under the procedures set forth in G.S. 136‑28.1(a) and (b).
(1a)	"Disadvantaged Business" has the same meaning as "disadvantaged business enterprise" in 49 C.F.R. § 26.5 Subpart A or any subsequently promulgated replacement regulation.
(2)	"Minority"' includes only those racial or ethnicity classifications identified by a study conducted in accordance with this section that have been subjected to discrimination in the relevant marketplace and that have been adversely affected in their ability to obtain contracts with the Department.
(3)	"Small Professional Services Firm" is an independent, for‑profit firm that meets size standards as defined by the Small Business Administration (SBA) regulations, 13 C.F.R. Part 121, and Sector 54 of the North American Industrial Classifications System (NAICS).
(4)	"Women" means nonminority persons born of the female sex.
(d)	The Department shall report annually to the Joint Legislative Transportation Oversight Committee on the utilization of disadvantaged minority‑owned businesses and women‑owned businesses and any program adopted to promote contracting opportunities for those businesses. Following each study of availability and utilization, the Department shall report to the Joint Legislative Transportation Oversight Committee on the results of the study for the purpose of determining whether the provisions of this section should continue in force and effect.
(e)	The Department of Transportation's Office of Civil Rights is directed to increase outreach efforts to small professional service firms. The Office of Civil Rights shall set a goal that the utilization of small professional service firms increases by five percent (5%) by January 1, 2021.
(f)	This section expires August 31, 2022."

REENACT AUTHORIZATION FOR PARTNERSHIP WITH PRIVATE DEVELOPERS
SECTION 4.  Section 2 of S.L. 2009‑235, as amended by Section 7 of S.L. 2014‑58 and Section 2.3 of S.L. 2016‑90, reads as rewritten:
"SECTION 2.  This act is effective when it becomes law."

EFFECTIVE DATE
SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.