A BILL TO BE ENTITLED
AN ACT to make changes to TRANSPORTATION laws, AS RECOMMENDED BY THE DEPARTMENT OF TRANSPORTATION.
The General Assembly of North Carolina enacts:

REPEAL BIENNIAL TRANSPORTATION EMERGENCY RESERVE EVALUATION
SECTION 1.  G.S. 136‑44.2E(e) is repealed.

REMAINING HURRICANE DORIAN FUNDS USED FOR RESILIENCE PROGRAM
SECTION 2.  Subdivision (1) of Section 1.7 of S.L. 2019‑251 reads as rewritten:
"(1)	$30,000,000 for current and future activities related to recovery from Hurricane Dorian such as debris removal and repair of highway infrastructure damage. Any remaining funds not required for Hurricane Dorian expenses shall be used to continue the Department's Resilience Program."

PROGRESSIVE DESIGN‑BUILD DELIVERY METHOD PILOT PROGRAM
SECTION 3.(a)  Definition. – For purposes of this section, the term "Progressive Design‑Build" means a project delivery method that uses a stepped, or progressive qualifications based selection process, followed by a progression to a contract price. The Progressive Design‑Build Team is selected exclusively on qualifications, without consideration of schedule or costs, and delivers the project in two distinct phases with two separate contracts. The Progressive Design‑Build Team is initially under contract for preconstruction activities, including developing preliminary designs, performing constructability reviews, and developing construction schedules and pricing. If the Department of Transportation and the Progressive Design‑Build Team reach agreement on a guaranteed maximum construction cost, the Department of Transportation and the Progressive Design‑Build Team will execute a second contract for completion of the preliminary designs and construction of the project.
SECTION 3.(b)  Pilot Project. – Notwithstanding any provision of Chapter 136 of the General Statutes to the contrary, the Department of Transportation may establish and implement a pilot project to award contracts for up to five transportation projects using the Progressive Design‑Build procurement process. The Department of Transportation may only award a contract under this section if (i) the Department determines that the project cost is less than five hundred million dollars ($500,000,000), (ii) the Department determines that it is in the public's interest to use the Progressive Design‑Build procurement process, (iii) the Department prequalifies the prime contractor and lead design firm that will be awarded the contract, (iv) the Department complies with the pre‑award reporting requirement set forth in subsection (c) of this section, and (v) the Department establishes and implements Progressive Design‑Build Guidelines, as required under subsection (d) of this section.
SECTION 3.(c)  Report. – Prior to the award of a contract under the authority set forth in subsection (b) of this section, the Department of Transportation shall submit a pre‑award report to the Joint Legislative Transportation Oversight Committee on the nature and scope of the project and the reasons the Progressive Design‑Build procurement process will best serve the public interest. Upon completion of a project awarded under subsection (b) of this section, the Department of Transportation shall submit a post‑completion report to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division detailing the project results, including any cost and time efficiencies achieved using the Progressive Design‑Build procurement process.
SECTION 3.(d)  Guidelines. – The Department of Transportation shall develop and implement Progressive Design‑Build Guidelines for awarding contracts under subsection (b) of this section.
SECTION 3.(e)  Expiration. – This section expires upon submission of the post‑completion report required under subsection (c) of this section for the final project completed under the authority set forth in subsection (b) of this section.

INCREASE PROJECT CAP FOR PROJECT DELIVERY METHOD PILOT PROGRAM
SECTION 4.  Section 34.13(b) of S.L. 2018‑5, as amended by Section 21 of S.L. 2022‑68, reads as rewritten:
"SECTION 34.13.(b)  Pilot Project. – Notwithstanding any provision of Chapter 136 of the General Statutes to the contrary, the Department of Transportation may establish and implement a pilot project to award contracts for up to eight projects for the construction of transportation projects on a construction manager‑general contractor basis. The Department may only award a contract under this section if (i) the cost of the project is determined by the Department to be less than five hundred million dollars ($500,000,000), (ii) the Department determines that it is in the public interest to use the construction manager‑general contractor basis for the project, (iii) the Department prequalifies the contractor that will be awarded the contract, (iv) the Department complies with the pre‑award reporting requirement set forth in subsection (c) of this section, and (v) the Department has established and implemented guidelines as required under subsection (d) of this section."

REPEAL TRAFFIC IMPACT ANALYSIS REPORT TO JLTOC
SECTION 5.  G.S. 136‑93.1A(g) is repealed.

REPEAL CASH BALANCE TARGET AMOUNT REPORT
SECTION 6.  G.S. 143C‑6‑11(m) is repealed.

AUTHORIZE DEPARTMENT OF TRANSPORTATION TO ESTABLISH STATEWIDE PURCHASING CONTRACTS FOR CERTAIN TRANSPORTATION MODES
SECTION 7.(a)  Article 2 of Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136‑28.1A.  Contracts for capital assets, technology, or services related to public transportation, bicycle, pedestrian, and related transportation modes.
(a)	Notwithstanding Chapter 143 of the General Statutes or any other provision of law to the contrary, the Department of Transportation, Integrated Mobility Division, may independently establish statewide purchasing contracts with private vendors for capital assets, technology, or services related to public transportation, bicycle, pedestrian, and related transportation modes, where such statewide purchasing contracts are established through competitive procurement and selection in accordance with Federal Transit Administration or Federal Highway Administration requirements, and where such statewide purchasing contracts are established primarily for the convenience of the Department of Transportation, local government agencies, Metropolitan Planning Organizations, Rural Planning Organizations, Councils of Government, or public transportation agencies to select and enter into contractual relationships with vendors without completing additional procurement or competitive selection processes.
(b)	All processes, procedures, and aspects of establishing statewide purchasing contracts under subsection (a) of this section are exempt from Department of Administration or Department of Information Technology oversight and requirements.
(c)	The Department of Transportation shall notify the Department of Administration of the nature and scope of all statewide purchasing contracts, and notify the Department of Information Technology of the nature and scope of all statewide purchasing contracts related to information technology projects, established pursuant to subsection (a) of this section.
(d)	The Department of Transportation shall report to the Joint Legislative Transportation Oversight Committee, the Joint Legislative Oversight Committee on Information Technology, and the Fiscal Research Division of the nature and scope of all statewide purchasing contracts established pursuant to subsection (a) of this section within 30 days of entering into the contract."
SECTION 7.(b)  This section is effective when it becomes law and applies to contracts entered into on or after that date.

EXEMPTION FOR CERTAIN PUBLIC BUILDING CONTRACTS
SECTION 8.(a)  G.S. 143‑134 is amended by adding a new subsection to read:
"(c)	Notwithstanding subsection (a) of this section, this Article does not apply to public building contracts entered into by the Department of Transportation for the construction, alteration, or repair of facilities jointly occupied by personnel of the Division of Motor Vehicles, of the Department of Transportation, and the North Carolina Highway Patrol, but, with respect to these contracts, the powers and duties established in this Article shall be exercised by the Department of Transportation and the Secretary of Administration, and other State officers, employees, or agencies shall have no duties or responsibilities concerning the contracts. The Department of Transportation shall advertise and award contracts in the manner required by this Article. Upon request, the Department of Administration shall assist the Department of Transportation in advertising and awarding a contract under this subsection. Construction, alteration, and repair of facilities under this subsection may be subject to local building permit requirements."
SECTION 8.(b)  This section is effective when it becomes law and applies to contracts entered into on or after that date.

DEPARTMENT MAY SPECIFY MATERIAL SUBSTITUTION REQUIREMENTS
SECTION 9.(a)  G.S. 136‑28.1 is amended by adding a new subsection to read:
"(n)	The Department of Transportation may specify a brand name or specific manufacturer of construction materials in order to promote system compatibility or synchronization; long‑term maintenance savings or efficiencies; research, testing, or experimental projects; product evaluation; or when it is impossible or impractical to specify the required performance and design characteristics for such materials."
SECTION 9.(b)  This section is effective when it becomes law and applies to contracts entered into on or after that date.

ADJUST REQUIREMENTS FOR ROW REGISTRATIONS
SECTION 10.  G.S. 136‑19.4 reads as rewritten:
"§ 136‑19.4.  Registration of right‑of‑way plans.
(a)	A copy of the cover sheet and final right‑of‑way plans for all Department of Transportation projects, on those projects for which plans are prepared, under which right‑of‑way or other interest in real property is acquired or access is controlled shall be certified by the Department of Transportation to the register of deeds of the county or counties within which the project is located.
…
	
(e)	The register of deeds in each county shall collect a fee from the Department of Transportation for recording right‑of‑way plans in the amount set out in G.S. 161‑10."

REVISION TO BRIDGE PROGRAM OUTSOURCING
SECTION 11.  G.S. 136‑76.2(c) reads as rewritten:
"(c)	Outsourcing. – Except for the following activities, all projects funded under the bridge program established under subsection (a) of this section shall be outsourced to private contractors:
(1)	Inspection.
(2)	Pre‑engineering.
(3)	Contract preparation.
(4)	Contract administration and oversight.
(5)	Planning activities.
(6)	Installation of culverts and structures described in subsection (b) of this section on low volume or non‑outlet roads."

REVISION TO ADVANCE RIGHT‑OF‑WAY ACQUISITION ACCOUNT
SECTION 12.  Section 41.7 of S.L. 2022‑74 reads as rewritten:
"SECTION 41.7.(a)  The State Controller shall transfer the sum of one hundred nine million eight hundred thirty‑four thousand nine hundred seventy‑two dollars ($109,834,972) from the Highway Fund to the Highway Trust Fund Advance Right‑of‑Way Acquisition Account. These funds shall be used by the Department of Transportation for the purchase of property under the Advance Acquisition Program.
"SECTION 41.7.(b)  The Department shall streamline the Undue Hardship Program to ensure that property in a planned transportation project area is purchased expeditiously from a property owner experiencing an undue hardship, as that term is defined in G.S. 136‑186(a)(3), resulting from a rescheduled or reprioritized Strategic Transportation Investment (STI) project."

EXTEND EXPIRATION DATE OF BUILD NC BOND ACT
SECTION 13.  Section 7 of S.L. 2018‑16 reads as rewritten:
"SECTION 7.  This act becomes effective January 1, 2019, and expires December 31, 2030."

EXTEND DATE TO BUILD NC BOND CASH BALANCE REQUIREMENT
SECTION 14.(a)  Section 41.3 of S.L. 2021‑180, as amended by Section 7.1 of S.L. 2021‑189, reads as rewritten:
"SECTION 41.3.  For any issuance and sale of Build NC Bonds on or before June 30, 2024, the cash balance requirement under G.S. 142‑97(2)a. shall not apply, and the consultation requirement under G.S. 142‑97(2)c. shall be no later than two months prior to the expected issuance of the bonds."
SECTION 14.(b)  G.S. 142‑97(2)a. reads as rewritten:
"a.	The Department of Transportation's average month‑end cash balance for the first three months in the calendar year prior to the date of determination is equal to or less than two billion dollars ($2,000,000,000)."

REMOVE DOT EMPLOYEE LIMIT ON TRAVEL
SECTION 15.  Section 34.5 of S.L. 2014‑100, as amended by Section 29.7 of S.L. 2015‑241, is repealed.

REMOVE BOARD OF TRANSPORTATION LIMIT ON TRAVEL
SECTION 16.  Section 29.5A of S.L. 2015‑241 is repealed.

REMOVE RESIDENCY REQUIREMENT FOR SECRETARY OF TRANSPORTATION NONVOTING MEMBER APPOINTMENTS TO REGIONAL PUBLIC TRANSPORTATION AUTHORITY BOARDS OF TRUSTEES
SECTION 17.  G.S. 160A‑605 reads as rewritten:
"§ 160A‑605.  Membership; officers; compensation.
(a)	The governing body of an authority is the Board of Trustees. The Board of Trustees shall consist of 13 members, appointed as follows:
(1)	The county with the greatest population shall be allocated five members to be appointed as follows:
a.	Two by the board of commissioners of that county;
b.	Two by the city council of the city containing the largest population within that county; and
c.	One by the city council of the city containing the second largest population within that county;
(2)	The county with the next greatest population shall be allocated three members to be appointed as follows:
a.	One by the board of commissioners of that county;
b.	One by the city council of the city containing the largest population within that county; and
c.	One jointly by that board of commissioners and city council, by procedures agreed on between them;
(3)	The county with the least population shall be allocated two members to be appointed as follows:
a.	One by the board of commissioners of that county; and
b.	One by the city council of the city containing the largest population within that county; and
(4)	Three members of the Board of Transportation appointed by the Secretary of Transportation, to serve as ex officio nonvoting members.
(b)	Voting members of the Board of Trustees shall serve for terms of four years, provided that one‑half of the initial appointments shall be for two‑year terms, to be determined by lot at the first meeting of the Board of Trustees. Initial terms of office shall commence upon approval by the Secretary of State of the articles of incorporation. The members appointed by the Secretary of Transportation shall serve at his pleasure.
(c)	An appointing authority may appoint one of its members to the Board of Trustees. Service on the Board of Trustees may be in addition to any other office which a person is entitled to hold. Each voting member of the Board of Trustees may hold elective public office as defined by G.S. 128‑1.1(d).
(d)	Members of the Board of Trustees, except members appointed by the Secretary of Transportation, shall reside within the territorial jurisdiction of the Authority as defined by G.S. 160A‑604.
(e)	The Board of Trustees shall annually elect from its membership a Chairperson, and a Vice‑Chairperson, and shall annually elect a Secretary, and a Treasurer.
(f)	Members of the Board of Trustees shall receive the sum of fifty dollars ($50.00) as compensation for attendance at each duly conducted meeting of the Authority."

TURNPIKE BILL COLLECTION
SECTION 18.  G.S. 136‑89.213 reads as rewritten:
"§ 136‑89.213.  Administration of tolls and requirements for open road tolls.
(a)	Administration. – The Authority is responsible for collecting tolls on Turnpike projects. In exercising its authority under G.S. 136‑89.183 to perform or procure services required by the Authority, the Authority may contract with one or more providers to perform part or all of the collection functions and may enter into agreements to exchange information, including confidential information under subsection (a1) of this section, that identifies motor vehicles and their owners with one or more of the following entities: the Division of Motor Vehicles of the Department of Transportation, another state, another toll operator, a toll collection‑related organization, insurance companies, or a private entity that has entered into a partnership agreement with the Authority pursuant to G.S. 136‑89.183(a)(17). Further, the Authority may assign its authority to fix, revise, charge, retain, enforce, and collect tolls and fees under this Article to a private entity that has entered into a partnership agreement with the Authority pursuant to G.S. 136‑89.183(a)(17).
…."

ADD VIN TO UNPAID TOLL BILL AND AUTHORIZE ELECTRONIC INFORMATION COLLECTION FOR OWNER VERIFICATION
SECTION 19.(a)  G.S. 136‑89.214 reads as rewritten:
"§ 136‑89.214.  Bill for unpaid open road toll.
…
(b)	Information on Bill. – A bill sent under this section must include all of the following information:
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(1a)	The vehicle identification number (VIN) or other vehicle identifying information of the motor vehicle that traveled on the Turnpike project.
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(c)	Electronic Information Verification. – The Authority may utilize digital communications and methods to obtain information for a registered owner of a motor vehicle through verification of phone numbers, connected or enabled vehicle applications, and other digital means to pursue a bill by first‑class mail."
SECTION 19.(b)  This section becomes effective July 1, 2023.

INCREASE TURNPIKE PROCESSING FEE FOR BILLING
SECTION 20.(a)  G.S. 136‑89.215(b) reads as rewritten:
"(b)	Fee. – If a person does not take one of the actions required under subsection (a) of this section within the required time, the Authority may add a processing fee to the amount the person owes. The processing fee may not exceed nine dollars ($9.00). A person may not be charged more than seventy‑two dollars ($72.00) in processing fees in a 12‑month period.
The Authority must set the processing fee at an amount that does not exceed the costs of collecting the unpaid toll."
SECTION 20.(b)  This section becomes effective July 1, 2023.

AUTHORIZE TOLLING FOR CERTAIN LANES
SECTION 21.  G.S. 20‑146.2 reads as rewritten:
"§ 20‑146.2.  Rush hour traffic lanes authorized.
…
(b)	Temporary Peak Traffic Shoulder Lanes. – The Department of Transportation may modify, upgrade, and designate shoulders of controlled access facilities and partially controlled access facilities as temporary travel lanes during peak traffic periods. When these shoulders have been appropriately marked, it shall be unlawful to use these shoulders for stopping or emergency parking. Emergency parking areas shall be designated at other appropriate areas, off these shoulders, when available. The Turnpike Authority may authorize tolling for travel in a lane designated and marked as in use under this subsection.
(c)	Directional Flow Peak Traffic Lanes. – The Department of Transportation may designate travel lanes for the directional flow of peak traffic on streets and highways on the State Highway System and cities may designate travel lanes for the directional flow of peak traffic on streets on the Municipal Street System. These travel lanes may be designated for time periods by the agency controlling the streets and highways. The Turnpike Authority may authorize tolling for travel in a lane designated and marked as in use under this subsection."

EXEMPT FERRY DIVISION FROM TEMPORARY SOLUTIONS PROGRAM
SECTION 22.  G.S. 126‑6.3(a) reads as rewritten:
"(a)	Use of Temporary Solutions Required for Cabinet Agencies. – Notwithstanding G.S. 126‑5 or any other provision of law, all Cabinet agencies that utilize temporary employees to perform work that is not information technology‑related shall employ them through the Temporary Solutions Program administered by the Office of State Human Resources. The Director of the Office of State Human Resources may create exceptions to this requirement when doing so would be in the best interests of the State in the sole discretion of the Director. An exception shall be invalid unless it is in writing. Council of State agencies may use the Temporary Solutions Program in the discretion of the agency. The Department of Transportation, Ferry Division, shall be exempt from the required use of Temporary Solutions when there is an established need for peak season hires or when the work requires a specific skillset beyond the scope of temporary employees."

FERRY PRIORITY BOARDING
SECTION 23.(a)  G.S. 136‑82(f3) reads as rewritten:
"(f3)	Priority Boarding Fee for Certain Vehicles. – For a vehicle providing commercial goods and services, the Department of Transportation shall charge an annual fee of one hundred fifty dollars ($150.00) for an annual pass that entitles the vehicle issued the annual pass to priority when boarding a ferry vessel. Only one annual pass per vehicle shall be issued per year. Except as authorized under this subsection, the Department of Transportation shall not provide priority boarding to a ferry vessel to any vehicle providing commercial goods and services. The following limits shall apply to priority boarding under this subsection:
(1)	For ferry vessels departing Hatteras, priority boarding shall not be authorized except between 10:00 A.M. and 4:00 P.M., and for ferry vessels departing Ocracoke, priority boarding shall not be authorized except between 4:00 P.M. and 9:00 P.M.
(2)	No more than 10 vehicles may priority board a ferry per one‑way trip."
SECTION 23.(b)  This section becomes effective July 1, 2023, and applies to applications for priority passes submitted on or after that date.

RESIDENT PRIORITY PASSES ON HATTERAS‑OCRACOKE
SECTION 24.(a)  G.S. 136‑82 is amended by adding a new subsection to read:
"(f4)	Priority Boarding for Ocracoke Residents. – The Board of Transportation shall establish resident vehicle priority passes for the Hatteras‑Ocracoke ferry route at an amount set by the Board per vehicle. To evidence residency for the purpose of priority pass applications under this subsection, a person must provide a valid drivers license and a current vehicle registration with an Ocracoke address."
SECTION 24.(b)  This section becomes effective July 1, 2023.

REPEAL DRONE ACTIVITY REPORTING REQUIREMENT FROM DIVISION OF AVIATION ANNUAL REPORT
SECTION 25.  G.S. 63‑74.5(2) is repealed.

REVISE USE OF CERTAIN MATCHING FUNDS OF RAIL DIVISION
SECTION 26.  Part XLI of S.L. 2022‑74 is amended by adding a new section to read:
"SECTION 41.11.  Notwithstanding any other provision of law or a provision of the Committee Report described in Section 43.2 of this act to the contrary, the seven million five hundred twenty‑seven thousand dollars ($7,527,000) in nonrecurring funds appropriated to the Department of Transportation, Rail Division, for the 2022‑2023 fiscal year for the S‑Line rail corridor may also be used for a future grant to develop the S‑Line beyond the CRISI grant announced from Fiscal Year 2021 funds."

REVISE OUTDOOR ADVERTISING LAW
SECTION 27.(a)  G.S. 136‑133.1 reads as rewritten:
"§ 136‑133.1.  Outdoor advertising vegetation cutting or removal.
(a)	The owner of an outdoor advertising sign permitted under G.S. 136‑129(4) or G.S. 136‑129(5) who obtains a selective vegetation removal permit, and the owner's designees, may cut, thin, prune, or remove vegetation in accordance with this section, G.S. 136‑93(b), 136‑133.2, and 136‑133.4. The maximum cut or removal zone for vegetation for each sign face shall be determined as follows:
(1)	The point located on the edge of the right‑of‑way that is the closest point to the centerline of the sign face shall be point A. The point on the edge of the pavement of the travel way, including acceleration and deceleration ramps, that is the closest to the centerline of the sign face shall be point B. The point located on the edge of the pavement of the main traveled way, corresponding to the applicable distance under sub‑subdivision a. or b. of this subdivision moving in the direction of the sign viewing zone from point B, shall be point C. The point perpendicular to point C on the edge of the right‑of‑way shall be point D. Lines drawn from point A, to point B, to point C, and to point D shall define the maximum cut or removal zone.
a.	For a distance of 500 feet for a view zone that has a posted speed limit of over 35 miles per hour.
b.	For a distance of 350 feet for a view zone that has a posted speed limit of 35 miles per hour or less.
(2)	Notwithstanding subdivision (1) of this subsection, the sign owner or designee may also cut vegetation within any area on the State right‑of‑way located between viewing zones of two sign faces, or otherwise within any area measured perpendicular from any point on the sign structure to the edge of the pavement of the main traveled way, by paying a fee of one hundred fifty dollars ($150.00) per caliper inch to the Department of Transportation.

	

	
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(b)	Vegetation permitted to be cut, thinned, pruned, or removed shall be defined as any tree, shrub, or underbrush within the zone created by subsection (a) of this section. Any existing tree that was in existence at the time that an outdoor advertising structure was erected shall only be eligible for removal in accordance with subsections (c), (d), and (e) of this section. Native dogwoods shall be preserved. For the purposes of this section, an existing tree is defined as a tree that had a diameter of four inches or greater as measured six inches from the ground at the time that the outdoor advertising structure was erected. An outdoor advertising sign is considered erected when the sign is completely constructed with a sign face.
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(e)	Removal of trees and vegetation of any age, including complete removal, except for native dogwoods, shall be permitted within the cut or removal zone established in subsection (a) of this section if the applicant for the selective vegetation removal permit, in lieu of compliance with subsection (d) of this section, agrees to submit to the Department a plan for beautification and replanting related to the site for which the vegetation permit request is made. The Department shall develop rules for compensatory replanting, including the criteria for determining which sites qualify for replanting, and shall, in consultation with the applicant and local government representatives, determine which sites must be replanted, and the types of plants and trees to be replanted. The replanting and maintenance shall be conducted by the applicant or his or her agents in accordance with the rules adopted by the Department. If the conditions detailed in this subsection are agreed to by the applicant and approved by the Department, there shall be no reimbursement to the Department under G.S. 136‑93.2 for removal of trees that existed at the time the outdoor sign was erected, nor shall the applicant be required to remove two nonconforming outdoor advertising signs for removal of existing trees at the site.
(f)	Tree branches within a highway right‑of‑way that encroach into the zone created by subsection (a) of this section may be cut or pruned. Except as provided in subsection (g) of this section, no person, firm, or entity shall cut, trim, prune, or remove or otherwise cause to be cut, trimmed, pruned, or removed vegetation that is in front of, or adjacent to, outdoor advertising and within the limits of the highway right‑of‑way for the purpose of enhancing the visibility of outdoor advertising unless permitted to do so by the Department in accordance with this section, G.S. 136‑93(b), 136‑133.2, and 136‑133.4.
(g)	Notwithstanding any law to the contrary, the owner of an outdoor advertising sign defined by subsection (a) of this section or the owner's designees may, working only from the private property side of the fence, without charge and without obtaining a selective vegetation removal permit, cut, trim, prune, or remove any tree or other vegetation except for native dogwoods that is (i) less than four inches in diameter at the height of the controlled access fence, (ii) located within 300 feet on either side of the existing sign location, and (iii) a distance of three feet from a controlled access fence within the limits of the highway right‑of‑way. The activities permitted by this subsection must be performed from the private property owner side of the controlled access fence and with the consent of the owner of the land that is used to access said fence.
…."
SECTION 27.(b)  G.S. 136‑133.2 reads as rewritten:
"§ 136‑133.2.  Issuance or denial of a selective vegetation removal permit.
(a)	Except as provided in subsection (b) of this section and G.S. 136‑133.1(g), permits to remove vegetation may be granted for outdoor advertising locations that have been permitted for at least two years prior to the date of application. The Department shall approve or deny an application submitted pursuant to this section, including the fee required by G.S. 136‑18.7 and all required documentation, within 30 days of the receipt of an application for a selective vegetation removal permit. If written notice of approval or denial is not given to the applicant within the 30‑day period, then the application shall be deemed approved. If the application is denied, the Department shall advise the applicant, in writing, by registered or certified mail, return receipt requested, addressed to the party to be noticed, and delivering to the addressee, the reasons for the denial.
(b)	Notwithstanding the two‑year period required in subsection (a) of this section, permits to remove vegetation may be granted for outdoor advertising locations where outdoor advertising has been relocated pursuant to G.S. 136‑131.5 and that otherwise comply with the requirements of this section and rules adopted by the Department in accordance with this section.
(c)	A new site for relocation shall not be denied by the Department of Transportation due to the presence of vegetation obstructing the visibility of the outdoor advertising from the viewing zone. Notwithstanding any law to the contrary, the owner or operator of the outdoor advertising sign shall be permitted to improve the visibility of the sign by removing any vegetation on private property upon receiving written consent of the landowner."
SECTION 27.(c)  This section becomes effective July 1, 2023, and applies to applications for selective vegetation removal permits submitted on or after that date.

PILOT PROGRAM TO AUTHORIZE AUTOMATIC LICENSE PLATE READERS IN STATE RIGHTS‑OF‑WAY
SECTION 28.(a)  The Department of Transportation may enter into agreements with the North Carolina State Bureau of Investigation for the placement and use of automatic license plate reader systems, as defined in G.S. 20‑183.30(1), within land or right‑of‑way owned by the Department of Transportation as part of a pilot program established by this section; provided that (i) the use of the land or right‑of‑way is temporary in nature, (ii) the automatic license plate reader system is above ground, removeable, and contains no combustible fuel, (iii) the placement and use does not unreasonably interfere with the operation and maintenance of public utility facilities or cause the facilities to fail to comply with all applicable laws, codes, and regulatory requirements, (iv) the authorization to locate the automatic license plate reader system within the right‑of‑way is revocable by the Department for cause with at least 30 days' notice, (v) the use of the automatic license plate reader system complies with provisions of Article 8A of Chapter 87 of the General Statutes, and (vi) the automatic license plate reader system is operated in accordance with Article 3D of Chapter 20 of the General Statutes. Placement and use of an automatic license plate reader system and related equipment under this subsection must be terminated and removed by the Department upon request by any affected public utility. The Department or a public utility may relocate an automatic license plate reader system and related equipment in the event that the Department or public utility needs immediate access to its utilities or facilities and shall only be liable for damages to the automatic license plate reader system and related equipment caused solely by its gross negligence or willful misconduct. If an automatic license plate reader system or related equipment is moved for immediate access, the Department or applicable public utility must provide notice to the State Bureau of Investigation. For purposes of this subsection, the term "public utility" means any of the following: a public utility, as defined in G.S. 62‑3(23), an electric membership corporation, telephone membership corporation, a joint municipal power agency, or a municipality, as defined in G.S. 159B‑3(5). The State Bureau of Investigation may enter into an agreement under this section on its own behalf or as an administrative agent of a local law enforcement agency in this State.
SECTION 28.(b)  No later than October 1, 2024, the North Carolina State Bureau of Investigation shall submit a report to the Joint Legislative Oversight Committee on Justice and Public Safety and the Joint Legislative Transportation Oversight Committee on automatic license plate reader systems placed on rights‑of‑way owned or maintained by the Department of Transportation. The report shall contain the written policy governing use of each automatic license plate reader system, the number of requests for captured data by requesting agency, and the amount of data preserved for more than 90 days compared to the amount of data captured during the pilot program.
SECTION 28.(c)  G.S. 136‑27.3A and G.S. 20‑183.32A are repealed.
SECTION 28.(d)  G.S. 20‑183.30 reads as rewritten:
"§ 20‑183.30.  Definitions.
The following definitions apply in this Article:
(1)	Automatic license plate reader system. – A system of one or more mobile or fixed automated high speed cameras used in combination with computer algorithms to convert images of license plates into computer readable data. This term shall not include a traffic control photographic system, as that term is defined in G.S. 160A‑300.1(a), or an open road tolling system, as that term is defined in G.S. 136‑89.210(3).
(1a)	Reserved for future codification purposes.
(1b)	Reserved for future codification purposes.
(1c)	Reserved for future codification purposes.
(1d)	Criminal justice officer. – A criminal justice officer as defined in G.S. 17C‑2 and justice officer as defined in G.S. 17E‑2.
(2)	Law enforcement agency. – Any agency or officer of the State of North Carolina or any political subdivision thereof who is empowered by the laws of this State to conduct investigations or to make arrests and any attorney, including the Attorney General of North Carolina, authorized by the laws of this State to prosecute or participate in the prosecution of those persons arrested or persons who may be subject to civil actions related to or concerning an arrest.
(3)	Reserved for future codification purposes.
(4)	Reserved for future codification purposes.
(5)	Law enforcement purpose. – Any of the following:
a.	Actions related to criminal investigations, arrests, prosecutions, post‑conviction confinement, or supervision.
b.	Apprehending an individual with an outstanding felony warrant.
c.	Locating a missing or endangered person.
d.	Locating a lost or stolen vehicle.
(6)	Reserved for future codification purposes.
(7)	Reserved for future codification purposes.
(8)	Missing or endangered person. – A person who has been identified as a missing or endangered person by at least one of the following:
a.	The National Criminal Information Center.
b.	The National Center for Missing and Exploited Children.
c.	A "be on the lookout" bulletin issued by a law enforcement agency."
SECTION 28.(e)  G.S. 20‑183.31(b) reads as rewritten:
"(b)	Data obtained by a law enforcement agency in accordance with this Article shall be obtained, accessed, preserved, or disclosed only for law enforcement purposes. Notwithstanding, data obtained under the authority of this Article shall not be used for the enforcement of traffic violations."
SECTION 28.(f)  G.S. 20‑183.32(e) reads as rewritten:
"(e)	Captured plate data obtained in accordance with this Article is confidential and not a public record as that term is defined in G.S. 132‑1. Data shall not be disclosed except to a criminal justice officer at a State or local law enforcement agency or a similar official at a federal law enforcement agency for a legitimate law enforcement purpose pursuant to a written request from the requesting agency. Written requests may be in electronic format. Nothing in this subsection shall be construed as requiring the disclosure of captured plate data if a law enforcement agency determines that disclosure will compromise an ongoing investigation. Captured plate data shall not be sold for any purpose."
SECTION 28.(g)  Article 3D of Chapter 20 of the General Statutes is amended by adding a new section to read:
"§ 20‑183.33.  Penalty for violation.
Any person who violates the provisions of this Article by obtaining, accessing, preserving, or disclosing data obtained in accordance with this Article in a manner other than that allowed by the provisions of this Article is guilty of a Class 1 misdemeanor."
SECTION 28.(h)  Subsection (g) of this section becomes effective December 1, 2023, and applies to offenses committed on or after that date. The remainder of this section becomes effective July 1, 2023. Subsection (a) of this section expires July 1, 2024, and any agreement entered into under the pilot program established in that section shall terminate no later than that date.

INCREASE FREQUENCY OF TAX REVENUE TRANSFER TO HIGHWAY FUND
SECTION 29.(a)  G.S. 105‑164.44M(b) reads as rewritten:
"(b)	Transportation Needs. – At the end of each month, the Secretary must transfer to the Funds listed below a percentage of the net proceeds of the tax collected under this Article at the State's general rate of tax set in G.S. 105‑164.4(a). The percentages that must be transferred are as follows:
	Percentage to	Percentage to
Fiscal Year	Highway Fund	Highway Trust Fund
2022‑23	2%	0%
2023‑24	1%	3%
2024‑25 and thereafter	1.5%	4.5%."
SECTION 29.(b)  This section becomes effective July 1, 2023.

REVISE MONTHLY FINANCIAL STATEMENT REPORT
SECTION 30.  G.S. 143C‑6‑11(q) reads as rewritten:
"(q)	Monthly Financial Statement Report. – Each month the Department of Transportation shall post on the Department's Web site and submit to the Board of Transportation, the Joint Legislative Transportation Oversight Committee, and the Fiscal Research Division a financial statement report that includes the following information:
…
(6)	Projected revenues and Spend Plan of the Department for the current fiscal year, noting any changes.
…."

MODIFY STIP REPORTING AND LOCAL CONSULTATION REQUIREMENTS
SECTION 31.(a)  G.S. 136‑12 reads as rewritten:
"§ 136‑12.  Reports to General Assembly; Transportation Improvement Program posted and submitted to members and staff of General Assembly.
(a)	The Department of Transportation shall, on or before the tenth day after the convening of each regular session of the General Assembly of North Carolina, make a full printed, detailed report to the General Assembly that includes the cost of maintenance and construction work undertaken by the Department, receipts of license fees, disbursements of the Department, and other financial information relevant to illustrate the Department's financial condition during the previous fiscal year. For maintenance and construction work undertaken by the Department, the report shall also include expenditures of both State and federal funds and shall be in sufficient detail that the county can be identified. A full account of each road project shall be kept by and under the direction of the Department of Transportation or its representatives, to ascertain at any time the expenditures and the liabilities against all projects; also records of contracts and force account work. The account records, together with all supporting documents, shall be open at all times to the inspection of the Governor or road authorities of any county, or their authorized representatives, and copies thereof shall be furnished such officials upon request.
(a1)	Repealed by Session Laws 2011‑145, s. 28.35(a), effective July 1, 2011.
(b)	At least 10 days before it approves a Transportation Improvement Program in accordance with G.S. 143B‑350(f)(4) or approves interim changes to a Transportation Improvement Program, the Department shall post the proposed Transportation Improvement Program or proposed interim changes to a Transportation Improvement Program on the Department's website, and also submit the proposed Transportation Improvement Program or proposed interim changes to a Transportation Improvement Program to all of the following members and staff of the General Assembly.
(1)	The Speaker and the Speaker Pro Tempore of the House of Representatives.
(2)	The Lieutenant Governor and the President Pro Tempore of the Senate.
(3)	The Chairs of the House and Senate Appropriations Committees.
(4)	Each member of the Joint Legislative Transportation Oversight Committee.
(5)	The Fiscal Research Division of the Legislative Services Commission."
SECTION 31.(b)  G.S. 136‑11.1 reads as rewritten:
"§ 136‑11.1.  Prior consultation on transportation projects.
Prior to any action of the Board on a transportation project, the Department shall inform all municipalities and counties affected by a planned transportation project and request each affected municipality and county to submit within 45 days a written resolution expressing their views on the project. A municipality or county may designate a Transportation Advisory Committee to submit its response to the Department's request for a resolution. Upon receipt of a written resolution from all affected municipalities and counties, or their designees, or the expiration of the 45‑day period, whichever occurs first, the Board may take action. The Department and the Board shall consider, but shall not be bound by, the views of the affected municipalities and counties, or their designees, on each transportation project. The failure of an affected municipality or county to express its views within the time provided shall not prevent the Department or the Board from taking action. The Department shall not be required to send notice under this section if it has already received a written resolution from the affected municipality or county on the planned transportation project, or if the planned transportation project appears on a proposed Transportation Improvement Program posted on the Department's website pursuant to G.S. 136‑12(b). "Action of the Board", as used in this section, means approval by the Board of: the Transportation Improvement Program and amendments to the Transportation Improvement Program; the Secondary Roads Paving Program and amendments to the Secondary Roads Paving Program; and individual applications for access and public service road projects, contingency projects, small urban projects, and spot safety projects that exceed two hundred fifty thousand dollars ($250,000). The 45‑day notification provision may be waived upon a finding by the Secretary of Transportation that emergency action is required. Such findings must be reported to the Joint Legislative Transportation Oversight Committee."

EXCLUDE FEDERAL FERRY BOAT AND TERMINAL FACILITIES CONSTRUCTION PROGRAM FUNDS FROM TRANSPORTATION INVESTMENT STRATEGY FORMULA
SECTION 32.(a)  G.S. 136‑189.11(b) reads as rewritten:
"(b)	Funds Excluded From Formula. – The following funds are not subject to this section:
…
(13)	Funds received from the federal government that under federal law may only be used for Ferry Boat and Terminal Facilities Construction Program (FBP) projects."
SECTION 32.(b)  This section is effective when it becomes law and applies to State Transportation Improvement Program plan updates on or after that date.

AMEND BICYCLE AND PEDESTRIAN PROJECT STATE FUND LIMITATION
SECTION 33.(a)  G.S. 136‑189.11(d)(3)c. reads as rewritten:
"c.	Bicycle and pedestrian limitation. – The Department shall not provide financial support for independent bicycle and pedestrian improvement projects, except for federal funds administered by the Department for that purpose. This sub‑subdivision shall not apply to funds allocated to a municipality pursuant to G.S. 136‑41.1 that are committed by the municipality as matching funds for federal funds administered by the Department and used for bicycle and pedestrian improvement projects. This limitation shall not apply to any bicycle and pedestrian improvement project that may provide improved access to opportunities or community services for low‑income, elderly, or disabled individuals. This limitation shall not apply to funds authorized for projects in the State Transportation Improvement Program that are scheduled for construction as of October 1, 2013, in State fiscal year 2012‑2013, 2013‑2014, or 2014‑2015."
SECTION 33.(b)  This section is effective when it becomes law and applies to State Transportation Improvement Program plan updates on or after that date.

DEPARTMENT FEE AUTHORIZATION FOR DRIVEWAY, SUBDIVISION, TRAFFIC IMPACT ANALYSIS, AND ENCROACHMENT REVIEW PROGRAMS
SECTION 34.(a)  Article 7 of Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136‑93.03.  Fee authorization for driveway, subdivision, traffic impact analysis, and encroachment review permits, approvals, or certifications.
(a)	Program Fees Authorized. – Except as otherwise provided by law, the Department is authorized to determine and assess fees for all programs that issue permits, approvals, or certifications concerning driveways, subdivisions, traffic impact analyses, and encroachment reviews.
(b)	The Department shall be responsible for the administration and collection of fees. The fees shall be applied to fund a portion of the cost of administering the program for which the fee was assessed.
(c)	The Department shall develop and publish rules, policies, and procedures for the implementation of fee assessments authorized by this section."
SECTION 34.(b)  This section becomes effective July 1, 2023.

INCREASE DEPARTMENT LIAISON PERSONNEL
SECTION 35.  G.S. 120C‑500 is amended by adding a new subsection to read:
"(f)	Notwithstanding subsection (c) of this section, the Secretary of Transportation shall designate at least one, but no more than five, liaison personnel to lobby for legislative action for all offices, commissions, and agencies within the Department of Transportation, as established by Article 8 of Chapter 143B of the General Statutes."

REPEAL UNMANNED AIRCRAFT SYSTEM OPERATION REGULATIONS
SECTION 36.(a)  Article 10 of Chapter 63 of the General Statutes is repealed.
SECTION 36.(b)  G.S. 15A‑300.3(b)(3)d. reads as rewritten:
"d.	Uses the unmanned aircraft system for commercial purposes pursuant to and in compliance with Federal Aviation Administration regulations, authorizations, or exemptions."
SECTION 36.(c)  Prosecutions for offenses committed before the effective date of this section are not abated or affected by this section, and the statutes that would be applicable but for this section remain applicable to those prosecutions.
SECTION 36.(d)  This section becomes effective December 1, 2023.

LIMITATIONS ON DEPARTMENT LIABILITY FOR S‑LINE CORRIDOR ACQUISITION
SECTION 37.(a)  Article 2D of Chapter 136 of the General Statutes is amended by adding a new section to read:
"§ 136‑44.40.  Limitations on rail transportation liability for S‑Line Corridor acquisition.
(a)	As used in this section:
(1)	"Claim" means a claim, action, suit, or request for damages, whether compensatory, punitive, or otherwise, made by any person or entity against any of the following:
a.	The Department of Transportation, or a railroad.
b.	A Regional Public Transportation Authority as defined by G.S. 160A‑601(6), a city as defined by G.S. 160A‑1(2), or a county listed in G.S. 153A‑10 pursuant to a contract authorized by subsection (b) of this section.
c.	An officer, director, trustee, employee, parent, subsidiary, or affiliated corporation as defined in G.S. 105‑130.2, or agent of: the Department, a railroad, or a Regional Public Transportation Authority, city, or county as authorized by subsection (b) of this section.
(2)	"S‑Line Corridor" means that portion of the rail corridor located generally along the CSX Transportation, Inc., Raleigh to Ridgeway corridor, also known as the S‑Line, which is to be acquired by the Department.
(3)	"Passenger rail claims" means claims arising out of or relating to any of the following:
a.	The transportation of rail passengers on behalf of the Department on the S‑Line Corridor.
b.	Services performed by a railroad pursuant to a contract with the Department in connection with the transportation of rail passengers on the S‑Line Corridor, including, but not limited to, the operation of trains; the use of right‑of‑way, trackage, public or private roadway and rail crossings, equipment, or station areas or appurtenant facilities; the design, construction, reconstruction, operation, or maintenance of rail related equipment, tracks, and any appurtenant facilities.
c.	An incident occurring on property owned by the Department and acquired as a part of the Department's purchase of the S‑Line Corridor and intended for current or future use in connection with passenger rail.
(4)	"Railroad" means CSX Transportation, Inc., its successors in interest, the National Railroad Passenger Corporation, or any other intercity rail passenger service provider that has entered into any contracts or operating agreements of any kind with the Department for operations on the S‑Line Corridor.
(b)	Contracts Allocating Financial Responsibility Authorized. – The Department may contract with any railroad, Regional Public Transportation Authority authorized pursuant to G.S. 160A‑626, county authorized pursuant to G.S. 153A‑279, or city authorized pursuant to G.S. 160A‑326, to allocate financial responsibility for passenger rail claims as defined in subsection (a) of this section, including, but not limited to, the execution of indemnity agreements, notwithstanding any other statutory, common law, public policy, or other prohibition against the same, and regardless of the nature of the claim or the conduct giving rise to such claim.
(c)	Insurance Required. – If the Department enters into any contract authorized by subsection (b) of this section, the Department shall secure and maintain, or cause to be secured and maintained, a liability insurance policy covering the liability of the parties to the contract and a railroad that owns or claims an interest in any real property subject to the contract for all property damage, personal injury, bodily injury, and death arising out of or related to passenger rail claims, regardless of whether or not the claim exceeds the self‑insured retention of the policy. The policy shall name the parties to the contract and the railroad that owns or claims an interest in any real property subject to the contract as named insureds and shall have policy limits as provided in the contract, which amount shall not exceed the current limitation of liability provided in 49 U.S.C. § 28103 (or any successor legislation), and may include a self‑insured retention in an amount of not more than five million dollars ($5,000,000). The Department shall establish a fund or other means of satisfying passenger rail claims up to the amount of the self‑insured retention.
(d)	Liability Limit. – The aggregate liability of the Department and railroad for all passenger rail claims arising from a single accident or incident for property damage, personal injury, bodily injury, and death of passengers is limited to the current limitations of liability provided in 49 U.S.C. § 28103 (or any successor legislation) or to any proceeds available under any insurance policy secured pursuant to subsection (c) of this section, whichever is greater.
(e)	Effect on Other Laws. – This section shall not affect the damages that may be recovered under the Federal Employers' Liability Act, 45 U.S.C. § 51, et seq., (1908); or under Article 1 of Chapter 97 of the General Statutes.
(f)	Sovereign Immunity not Waived. – Neither the provisions of this section nor acts of the Department, including the procurement of insurance or self‑insurance, shall be deemed a waiver of any sovereign immunity for tort to which the Department or its directors, officers, employees, or agents are otherwise entitled."
SECTION 37.(b)  This section is effective when it becomes law and applies to contracts entered into on or after that date.

REVISE HIGHWAY FUND AND HIGHWAY TRUST FUND AVAILABILITY FOR FY 2021‑2022 AND FY 2022‑2023
SECTION 38.(a)  Section 3.2 of S.L. 2021‑180 reads as rewritten:
"SECTION 3.2.  The Highway Fund availability used in adjusting the 2021‑2022 fiscal year budget is shown below:
Highway Fund Availability	FY 2021‑2022	
Actual Over Collections	249,824,965	
	
General Maintenance Reserve (GMR)	(176,577,495)	
Transfer of Funds to Emergency Reserve
	(G.S. 136‑44.2E(b) and (d))	(61,000,000)	
Estimated Ferry Overdrafts	(7,971,879)	
Ferry Vessels – Salvo and Avon	(4,275,591)	

Beginning Balance	0	
Motor Fuels Tax	1,672,500,000	
Licenses and Fees	872,600,000	
Highway Short‑Term Lease	10,000,000	
Investment Income	1,500,000	

Adjustments to Availability		
	Additional Highway Short‑Term Lease	69,800,000

Total Highway Fund Availability	$2,626,400,000"
SECTION 38.(b)  Section 3.4 of S.L. 2021‑180, as amended by Section 1.3 of S.L. 2021‑189, reads as rewritten:
"SECTION 3.4.  The Highway Trust Fund availability used in adjusting the 2021‑2022 fiscal year budget is shown below:

Highway Trust Fund Availability	FY 2021‑2022
Actual Over Collections	326,587,369	
		
STI Projects	(326,587,369)

Beginning Balance	0	
Highway Use Tax	958,300,000	
Motor Fuels Tax	418,000,000	
Fees	173,700,000	
Investment Income	2,000,000	

Total Highway Trust Fund Availability	$1,552,000,000"
SECTION 38.(c)  Section 3.2 of S.L. 2022‑74 reads as rewritten:
"SECTION 3.2.  The Highway Fund availability for the 2022‑2023 fiscal year in Section 3.2 of S.L. 2021‑180 is repealed. The Highway Fund availability used in adjusting the 2022‑2023 fiscal year budget is shown below:

Highway Fund Availability	FY 2022‑2023

Projected Over Collections	$107,700,000

General Maintenance Reserve (GMR)	(107,700,000)
Beginning Balance	0
Motor Fuels Tax	1,776,100,000
Licenses and Fees	872,200,000
Sales Tax Transfer – 2%	193,100,000
Highway Short‑Term Lease	95,300,000
Investment income	1,500,000

Total Highway Fund Availability	$2,938,200,000"
SECTION 38.(d)  Section 3.4 of S.L. 2022‑74 reads as rewritten:
"SECTION 3.4.  The Highway Trust Fund availability for the 2022‑2023 fiscal year set out in Section 3.4 of S.L. 2021‑180 is repealed. The Highway Trust Fund availability used in adjusting the 2022‑2023 fiscal year budget is shown below:

Highway Trust Fund Availability	FY 2022‑2023

Projected Over Collections	$74,800,000
	
STI Projects	(74,800,000)
Beginning Balance	0
Highway Use Tax	1,086,000,000
Motor Fuels Tax	590,100,000
Fees	158,000,000
Investment Income	1,400,000

Total Highway Trust Fund	$1,835,500,000"

EFFECTIVE DATE
SECTION 39.  Except as otherwise provided, this act is effective when it becomes law.