Bill Summaries: S113 (2015-2016 Session)

  • Summary date: Feb 24 2015 - View summary

    Authorizes the Ferry Division (Division) of the Department of Transportation to enter into a contract for the purchase of motor fuel that offers a guaranteed price plan or prepaid guaranteed price plan. Sets out the following requirements that apply to any such contract: (1) the maximum length of any contract under this section is six months; (2) the maximum price at which the Division may contract to purchase motor fuel is $2.50 per gallon; (3) the maximum amount of motor fuel the Division may contract to purchase is two million gallons per contract; (4) the Division may take delivery of motor fuel in installments, with the contract specifying the number of deliveries and the dates on which the deliveries are to be made; (5) the motor fuel dealer must file a guaranty bond with the clerk of the superior court in the county in which the contract is entered into; the bond must be in an amount determined by the Division to be adequate to provide indemnification to the Division for any loss incurred by the Division if the motor fuel dealer fails to deliver the amount of motor fuel specified in the contract, and remains in full force and effect until the contract is fully executed by both parties; and (6) except as otherwise provided in this section, any contract entered into under this section is subject to applicable law. The authority to enter into contracts under this section expires 30 days after this act becomes law. 

    Amends GS 136-82 to establish the Capital Improvement Account (Account) under the control and direction of the Ferry Division of the Department of Transportation, as a nonreverting special revenue account within the Highway Fund. Requires the Division to credit to the Account all proceeds generated from (1) the leasing of office space in the shipyard by the Division and (2) maintenance and other services performed by the Division. Requires the Division to use the proceeds credited to the Account for covering expenses incurred in the leasing of office space in the shipyard and performing maintenance and other services on boats and other vessels, including the purchase, lease, or rental of equipment. Makes conforming changes.