The Governor vetoed the act on May 23, 2024. The Governor's objections and veto message are available here: https://webservices.ncleg.gov/ViewBillDocument/2023/8586/0/H198-BD-NBC-12010.

House committee substitute to the 2nd edition makes the following changes.  

Amends GS 136-133.1(a)(2), which adds new authority for owners or their designees to cut vegetation within any area on the State right-of-way located between viewing zones of two sign faces on the same structure (was, just between the viewing zones of two sign faces).  Makes technical change.

Amends GS 105-164.44M(b) to require the Secretary of Revenue to transfer certain funds monthly (was, at the end of each month) from the net proceeds of sales and use taxes collected at the general rate to the Highway Fund and Highway Trust Fund.

Amends new GS 136-44.40 (setting forth limitations on rail transportation liability for S-Line Corridor acquisition) as follows. Amends defined term S-Line Corridor to mean that portion of the rail corridor located generally  between Raleigh and Ridgeway, also known as the S-Line, which is to be acquired by the Department of Transportation (DOT), as it may now be constituted or hereafter enlarged, adjusted, or relocated, and shall include any additional real property from any source and howsoever acquired if used for or in connection with passenger rail service on or near the S-Line (was, the portion of the rail corridor located generally along the CSX Transportation, Inc.). Changes the third meaning of passenger rail claims to an incident occurring on property owned by DOT or a railroad, or otherwise occupied by DOT or a railroad, pursuant to charter grant, fee simple deed, lease, easement, license, trackage rights, or other form of ownership or authorized use, and intended for current or future use in connection with passenger rail service on the S-Line. (Prior definition did not specify types of ownership.) Changes meaning of railroad to mean a railroad corporation or railroad company from whom DOT has acquired an interest in land related to passenger rail service, its successors in interest, the National Railroad Passenger Corporation, or any other intercity rail passenger service provider, and, in the case of all of the foregoing, that has entered into any contracts or operating agreements of any kind with DOT for operations on the S-Line Corridor. Now requires DOT to secure and maintain a liability insurance policy in line with the requirements of GS 136-44.40 (previously DOT could secure and maintain said policy or cause that policy to be secured and maintained).  Now specifies that the insurance policy limits as provided in the contract, cannot exceed the then current limitation of liability provided in 49 U.S.C. § 28103 (or any successor legislation) (was, just limitation of liability provided in 49 U.S.C. § 28103 or any successor legislation).  

Amends Section 3.2 of SL 2021-180 to indicate the figures are for the Highway Fund availability used in developing the 2021-23 fiscal biennial budget (was, the Highway Fund availability used in adjusting the 2021-22 FY budget).  

Amends Section 3.4 of SL 2021-180, as amended, to indicate that the figures are for the Highway Trust Fund availability used in developing the 2021-23 fiscal biennial budget (was, Highway Trust Fund availability used in adjusting the 2021-22 fiscal year budget).   

Amends GS 20-158 by adding new subsection (f), which specifies the following requirements that apply to a traffic control photographic system used to enforce vehicle control signs and signals under GS 20-158 as follows: (1) A violation detected by a traffic control photographic system is defined as when a vehicle enters and proceeds into the intersection after the onset of the  signal display of a steady circular red or steady red arrow controlling traffic approaching the intersection and the applicable red clearance interval has  expired. All signals with traffic control photographic systems must be designed with an appropriate red clearance interval, (2) The duration of the yellow light change interval and the red clearance interval at intersections where traffic control photographic systems are in use must be no less than the yellow light change interval and the red clearance interval  durations specified on the traffic signal plan of record signed and sealed by a  professional engineer, licensed in accordance with the provisions of GS Chapter 89C, and must comply with the provisions of the most recently adopted Manual on Uniform Traffic Control Devices. Effective December 1, 2023, and applies to any enforcement of GS 20-158 by a traffic control photographic system, including by any municipality authorized under GS 160A-300.1, and SL 2001-286, as amended, on or after that date.

Amends GS 143-299.2 (limitations on payments by the State under State Tort Claims Act) to specify that the maximum amount that DOT may pay cumulatively to all claimants on account of injury and damage to any one person arising out of any one occurrence, whether the claim or claims are brought under the State Tort Claims Act, or Article 31A (Defense of State Employees) or Article 31B (Defense of Public School Employees) of GS Chapter 143, is $3 million, less any commercial liability insurance purchased by DOT and applicable to the claim or claims under GS 143-291(b), 143-300.6(c), or 143-300.16(c). Amends DOT’s powers set forth in GS 136-18 to allow DOT to purchase and maintain an umbrella policy of commercial liability insurance providing coverage in an amount up to $10 million beyond the limits of commercial liability insurance policies otherwise authorized by law. Effective when it becomes law and applies retroactively to January 1, 2021.

Amends GS 136-44.20 (DOT as designated agency to administer and fund public transportation programs) to require DOT to recognize a regional council of governments or regional planning commission as an eligible unit of government to apply for, accept, receive, and dispense all rural and urban planning, operating, and capital transit grants made available through DOT or the Federal Transit Administration. Authorizes DOT to designate a council of governments or a regional planning commission as a transit planning district in order to promote efficient and effective planning and coordination of transit services and programs and to allocate funding to carry out planning and coordination activities. Specifies that the council of governments or a regional planning commission is subject to the following: (1) it cannot apply for transit operating or capital funds to replace an existing transit agency without consent of the member governments in the proposed transit service area and (2) it is authorized to apply for and implement mobility management activities, as defined by the Federal Transit Administration, for 49 U.S.C. § 5307, 49 U.S.C. § 5310, and 49 U.S.C. § 5311 grant programs. Specifies that funding percentages for these grants will be allocated based on (i) 80) federal match and 20% local match for capital projects, (ii) 50% federal match and 50% local match for operating projects, or (iii) the most recent recommended match percentages published by the Federal Transit Administration for these grant programs.

Amends GS 136-44.27 (NC Elderly and Disabled Transportation Assistance Program) to specify that a regional council of governments or a regional planning commission may apply for and receive any funds to perform mobility management activities, as defined by the Federal Transit Administration, and use funding to fill gaps in service, where they exist, by coordinating with existing transit agencies, nonprofit organizations, or third-party operators. Effective July 1, 2023, and applies to applications for transit grants on or after that date.

Makes organizational changes.

Amends GS 136-44.2E to limit use of funds in the Transportation Emergency Reserve (Reserve) to unreimbursable expenditures related to an emergency (previously permitted access and use of the funds to the extent practicable that the funds are eligible for federal reimbursement or cost sharing with federal funds). Expands use of Reserve funds to include use when the US Department of Transportation (DOT) authorizes expenditure of emergency relief funds pursuant to federal law or when the Governor has declared a disaster under state law, in addition to existing authority to use funds after a presidential declaration of a major disaster. Adds a new provision specifying that the funds in the Reserve can be used for past or present disasters and for any reimbursed expenditures related to the declared disaster. Repeals subsection (e) that requires DOT to submit biennial reports to specified NCGA committees and division.

Amends Section 1.7, SL 2019-251, as amended by Section 5.4, SL 2022-74, to direct funds remaining of the $30 million appropriation to DOT for Hurricane Dorian recovery be used to continue DOT's Resilience Program. 

Authorizes DOT to establish and implement a pilot project to award contracts for up to five transportation projects using the Progressive Design-Build procurement process, as described to include two distinct phases and contracts for (1) preconstructions activities and (2) completion of preliminary designs and construction of the project. Establishes five qualifications that must be met for award of a contract: (1) DOT determination that the project cost is less than $500 million; (2) DOT determines that the Progressive Design-Build process is in the public's interest; (3) DOT prequalifies the prime contractor and lead design firm that will be awarded the contract; (4) DOT complies with the described pre-award reporting requirements; and (5) DOT establishes and implements Progressive Design-Build Guidelines as directed. Requires DOT to submit a pre-award report to the specified NCGA committee describing the project and the reasons this procurement process will serve the public interest, and submit a post-completion report to the specified NCGA committee and division detailing the project results. Directs DOT to develop and implement Progressive Design-Build Guidelines for awarding contracts under the pilot program. Sunsets these provisions upon submission of the post-completion report for the final project completed under this authority. 

Amends Section 34.13 of SL 2018-5 (2018 Appropriations Act), as amended by Section 21, SL 2022-68, authorizing DOT to establish and implement a pilot project to award contracts for up to eight projects (was capped at five projects) for the construction of transportation projects on a construction manager-general contractor basis, subject to specified limitations and cost caps.

Repeals the reporting requirement in GS 136-93.1A(g), which requires DOT to annually report to the specified NCGA committee on the number of times in the preceding year that DOT failed to communicate the scope of a traffic impact analysis to an applicant within 10 business days of receipt of the scope proposed by the applicant as required by subdivision (a)(1) of the statute.

Repeals the reporting requirement in GS 143C-6-11(m), which requires DOT to report to the specified NCGA committee and division when the combined average daily cash balance of the Highway Fund and Highway Trust Fund is outside the target range defined by subdivision (k)(1), which requires transportation project funding to be between 15-20% of the total appropriations of the current fiscal year from those funds. 

Enacts GS 136-28.1A, authorizing DOT's Integrated Mobility Division to establish independent statewide purchasing contracts with private vendors for capital assets, technology, or services related to public modes of transportation, so long as federal competitive procurement and selection requirements are met and the contracts are established primarily for the convenience of DOT and named local government entities to select and enter into contracts with vendors without completing additional procurement and competitive selection processes. Exempts the statewide purchasing contracts from Department of Administration (DOA) or Department of Information Technology (DIT) oversight and requirements, but requires DOT to notify DOA of the nature and scope of all contracts, and notify DIT of all those related to information technology. Directs DOT to report to specified NCGA committees and division within 30 days of entering into a statewide purchasing schedule for a project the Integrated Mobility Division is undertaking pursuant to the statute. 

Amends GS 143-134 to exempt from the public contracting laws of Article 8 public building contracts entered into by DOT for facilities that are or will be jointly occupied by personnel from the Division of Motor Vehicles and the Highway Patrol. Specifies that the powers and duties related to public contracts under Article 8 must be exercised by DOT and the Secretary of Administration, with other State officers, employees, or agencies having no duties or responsibilities concerning the contracts. 

Amends GS 136-28.1 relating to DOT's letting of contracts to bidders after public advertising, adding a new subsection to authorize DOT to specify a brand name or specific manufacturer of construction materials for promotion of listed purposes, including system compatibility or synchronization and product evaluation. 

Amends GS 136-19.4 regarding registration of right-of-way plans. Removes requirements for copies of profile sheets to be certified by DOT to the register of deeds within which the project is located. Eliminates the requirement for DOT to certify to the register of deeds a copy of amended final right-of-way plans approved by the Board of Transportation within two weeks from their adoption, and the directive for the clerk to remove original plan sheets and record the amended sheets in lieu thereof. Makes conforming changes. 

Amends GS 136-76.2 to include the installation of culverts associated with the State highway system on non-outlet roads to those activities funded by the "bridge program" not required to be outsourced to private contractors (previously excepted this activity only in cases of emergency and did not specify installation on non-outlet roads only). 

Amends Section 41.7, SL 2022-74 to require funds transferred to the Highway Trust Fund Advance Right-of-Way Acquisition Account to be used by DOT to purchase property under the Advance Acquisition Program (Undue Hardship Advance Acquisition Program). Eliminates required quarterly reporting to the specific NCGA committee and division regarding DOT's required streamlining the Undue Hardship Program under the provision.

Amends SL 2018-16, the Build NC Bond Act of 2018, extending the sunset date of the act from December 31, 2028, to December 31, 2030. 

Amends Section 41.3, SL 2021-180, as amended, providing (1) that DOT's average month-end cash balance for the first three months in the calendar year prior to the date of determination must be equal to or less than $2 billion (no longer specifying the requirements are limited to the 2021-23 fiscal biennium), and (2) for any issuance and sale of Build NC Bonds on or before June 30, 2024 (was, June 30, 2022), the cash balance requirement under GS 142-97(2)a. does not apply and the consultation requirement under GS 142-97(2)c. must be no later than two months prior to the expected issuance of the bonds.

Repeals Section 34.5, SL 2014-100, as amended, which bars expenditures for out-of-state travel by DOT for 2014-15 and each fiscal year thereafter from exceeding the amount expended during the 2009-10 fiscal year.

Repeals Section 29.5A, SL 2015-241, which caps expenditures for out-of-state travel by the Board of Transportation for 2015-16 and each fiscal year thereafter at $20,000.

Repeals GS 160A-605(d), which requires Board of Trustee members of the Regional Public Transportation Authority Board to reside within the Authority's territorial jurisdiction defined by GS 160A-604. 

Amends GS 136-89.213 to authorize the Turnpike Authority to contract to exchange information with insurance companies to identify motor vehicles and owners relating to toll collection. Adds new authority for the Turnpike Authority to use 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 bill by first-class mail.

Adds to the information that must be included in a toll bill under GS 136-89.214 to include the vehicle's VIN or other identifying information of the motor vehicle that traveled the Turnpike project.

Increases the cap for toll bill processing fees under GS 136-89.215 from $6 to $9. Increases the cap on the amount of annual processing fees that may be charged to one person in a 12-month period from $48 to $72.

Amends GS 20-146.2 relating to HOV lane restrictions, to remove the following from the list of HOV lane restriction exemptions: motorcycles; vehicles designed for 15 or more passengers; plug-in electric vehicles; dedicated natural gas vehicles; and fuel cell electric vehicles.

Amends GS 20-146.2, authorizing the Turnpike Authority to toll for travel in a lanes designated and marked as in use for temporary peak traffic shoulder lanes or directional flow peak traffic lanes.

Amends the Transportation Investment Strategy Formula set forth in GS 136-189.11, revising the distribution of funds for DOT division need projects to no longer bar DOT from providing financial support for independent bicycle and pedestrian improvement projects.

Amends GS 126-6.3 to exempt the Ferry Division from the required used of the Temporary Solutions Program for temporary employment when there is an established need for peak season hires or when the expertise requires a specific skillset beyond the scope of temporary employees.

Amends GS 136-82, requiring the Board of Transportation to establish resident priority passes for the Hatteras and Ocracoke route for those who provide a valid driver's license with an Ocracoke address and a current vehicle registration with an Ocracoke address.

Amends GS 136-82(f) to limit priority boarding passes for commercial vehicles boarding ferries to one annual pass per vendor per vehicle each year. Adds further limitations to limit use of the priority boarding passes, establishing windows of authorization as follows: for ferries departing Hatteras, between 10:00 a.m. and 4:00 p.m.; and for ferries departing Ocracoke, between 4:00 p.m. and 9:00 p.m. Additionally provides that no more than 10 vehicles can priority board a ferry during these authorized times. 

Amends GS 136-82 to direct that all unexpended funds appropriated to the Ferry Division's budget from the prior fiscal year that are transferred to the Ferry Capital Special Fund and deposited in the Ferry Statewide fund code carryforward. 

Repeals Section 41.15A(a) and (b), SL 2021-180, which (1) requires the Directors of the Office of State Budget and Management to certify line item expenditure accounts of the Ferry Fund Code 7825 as appropriations, and (2) requires positions in that fund code to be budgeted to the Personal Services major account group rather than agency receipts. 

Repeals GS 63-74.5(2), removing from the Division of Aviation's annual reporting requirements to the specified NCGA committee and division, summaries of activities related to unmanned aircraft systems. 

Amends GS 146-44.36, authorizing DOT to administer State and federal revitalization programs within adjoining states upon agreement with the adjoining state entity. 

Adds a new section to Part XLI, SL 2022-74, directing that the $7.527 million in nonrecurring funds appropriated to DOT, Rail Division for 2022-23 for the S-Line rail corridor can also be used for a future grant to develop S-Line beyond the CRISI grant announced from Fiscal Year 2021 funds. 

Replaces the language of GS 136-133.1(a), which defines maximum cut or removal zones for outdoor advertising sign owners who have obtained a selective vegetation removal permit, with changes to the maximum cut or removal zone for vegetation determination parameters as follows. Changes the description of the sign face points, and determines that lines drawn from point A, B, C, and D defines the limits of the vegetation cut or removal area. Sets view zone distances based on the travel way's speed limit. Adds new authority for owners or their designees to cut vegetation within any area on the State right-of-way located between viewing zones of two sign faces or otherwise within any areas measured perpendicular from any point on the sign structure to the edge of the pavement of the main traveled way, subject to a fee of $100 per caliper inch. Additionally revises vegetation that may be removed without a permit under subsection (g), except for native dogwoods and native redbuds, to include vegetation located within 300 feet on either side of the existing sign location (was within 200 feet on either side of the existing sign location as defined by previously described points A and B). Makes conforming changes. 

Replaces the language of GS 136-133.2 concerning the issuance of a selective vegetation removal permit with the following. Allows for granting a permit for locations that have been permitted for at least the two years prior to application. Requires approval or denial within 30 days of an application with required fee and documentation. Deems applications approved which are not given written approval or denial within 30 days. Provides for written notice of reasons for denial. For all other permit applications, allows for granting permits for locations where outdoor advertising has been relocated under GS 136-131.5 which otherwise comply with the statute's requirements and DOT rules. Prohibits denial of a new site for relocation due to the presence of vegetation obstructing the visibility of the advertising from the viewing zone. Requires the owner or operator be permitted to improve the visibility zone by removing any vegetation on private property subject to written consent of the landowner.

Authorizes DOT to enter into agreements with the NC SBI, with the SBI acting on its own behalf or as an administrative agency of a local law enforcement agency of the State pursuant to authority granted by these provisions, for the placement and use of automatic license plate reader systems within land or right-of-way owned by DOT as part of a pilot program, subject to six qualifications, including: the use of the land is temporary; the system is above ground, removeable, and contains no combustible fuel; and the system is operated in accordance with GS Chapter 20, Article 3D. Requires termination and removal by DOT upon request by any affected public utility. Allows DOT or public utilities to relocate the system for immediate access to utilities, with liability limited to gross negligence or willful misconduct, and subject to notification to the SBI. Defines public utility. Effective July 1, 2023; expires June 1, 2024, with any agreement entered into under the pilot program terminating no later than that date.

Requires the SBI to submit a report to the specified NCGA committees by March 1, 2024 on systems placed on rights-of-way owned or maintained by DOT as specified. Effective July 1, 2023. 

Repeals Section 41.57(a) and (c), SL 2021-180, which enacts GS 136-27.3A (Relocation of automatic license plate reader systems) and GS 20-183.32A (Report on automatic license plate reader systems). Effective July 1, 2023. 

Amends GS 20-183.30, adding new defined terms to Article 3D, Automated License Plate Reader Systems. Defines criminal justice officer by statutory cross-reference. Defines law enforcement purpose to include (1) actions related to criminal investigations, arrests, prosecutions, post-conviction confinement, or supervision; (2) apprehending an individual with an outstanding felony warrant; (3) locating a missing or endangered person; or (4) locating a lost or stolen vehicle. Defines missing or endangered person to mean a person who has been identified as a missing or endangered person by one of three listed sources, including the National Criminal Information Center and law enforcement agency "be on the lookout" bulletins. Effective July 1, 2023. 

Amends GS 20-183.31 to limit access and disclosure of data obtained by a law enforcement agency under the Article 3D to law enforcement purposes, as that term is now defined by the Article (was, for law enforcement or criminal justice purposes). Effective July 1, 2023. 

Amends GS 20-183.32 to limit disclosure of captured plate data to criminal justice officers of State or local law enforcement agencies or similar officials at a federal law enforcement agency for a legitimate law enforcement purpose pursuant to a written request from the requesting agency (previously limited disclosure to federal, State, or local law enforcement agencies for a legitimate law enforcement or public safety purpose pursuant to such written request). Effective July 1, 2023. 

Adds DOT to the list of agencies authorized to implement and enforce State and federal environmental laws under GS 150B-19.3, limiting DOT from adopting more restrictive standards, limitations, or requirements than those imposed by federal law or rule unless otherwise specified.

Amends GS 105-164.44M to require the Secretary of Revenue to monthly rather than quarterly transfer the net proceeds of sales and use taxes collected at the general rate to the Highway Fund and Highway Trust Fund. 

Amends GS 143C-6-11 regarding DOT's required monthly financial statement reports to require the report include projected revenues and Spend Plan for the next 12-month period rather than 18-months.