Identical to H 457, filed 3/23/17.

Enacts new GS 153A-331.1 concerning performance guarantees on county subdivision streets, providing that these newly enacted provisions apply to all developments approved on or after August 1, 2017, and retroactively to all county residential subdivisions or development plans approved on or after October 1, 2010, that include an offer of dedication of roads and the roads have been constructed and opened for travel and are fully completed. Sets out four general requirements for all performance and residual performance guarantees, including (1) that a county ordinance can, but is not required to, provide for performance guarantees for new streets offered for dedication; (2) that the ordinance must provide for the performance guarantee pursuant to additional requirements found in subsections (g) through (j); (3) that developers may or may not provide a performance guarantee and can be permitted to record a plat and proceed to construct the street, but must provide the residual performance guarantee prior to the issuance of any building permit for construction in a subdivision or development; and (4) performance or residual performance guarantees for subdivision streets must be in a form as defined in GS 160A-372(g)(1), meaning a surety bond, letter of credit, or other acceptable means of guarantee, at the election of the developer. Provides in subsections (c) through (k1) specific requirements and limitations for performance and residual performance guarantees, including in (c) that the amount of a street performance guarantee (and an extension of the guarantee) cannot exceed 125% of the reasonably estimated cost of completion and that in (d) a performance guarantee can only be used for completion of required improvements and not for repairs or maintenance after completion. Further provides in (e) for the extension of a street performance guarantee if required improvements are not complete and the current performance guarantee is expiring. Provides for the release or incremental reduction of performance guarantees, establishing in (f) that any performance guarantee on a street must be released when it is confirmed by the Division of Highways that the street has been accepted for maintenance, but no later than 6 months following submission of a SR-2 form and upon presentation of any of four specified documents. Provides in (f1) for the release of performance guarantees on streets built with more stringent standards than those required by the Division of Highways standards of January 1, 2017, upon confirmation from the Division of Highways that the street has been accepted for maintenance, but no later than three months following submission of an SR-2 form and upon presentation of any of four specified documents. Provides in (g) that the principal amount of the performance guarantee can be incrementally reduced during the course of construction to reflect the level of completion of the road. Concerning residual performance guarantees, provides in (h) that on certification that the road has been fully constructed, the performance guarantee amount must be reduced to a residual amount, the greater of 15% of construction cost or 125% of the pavement cost, providing that this reduced guarantee is known as the residual performance guarantee. Further details in (i) the purpose and use of the residual performance guarantee, specifically that the purpose is to allow a reasonable period of time so that new roads offered for dedication can attain the density required for acceptance. Also provides in (j) that residual performance guarantees must remain in place either until the road is accepted or for a period of one year from the date of issuance, whichever is less. Further details in (k) requirements and time frame that must be met for the release of a residual performance guarantee, and in (k1) requirements and time frame that must be met for the release of a residual performance guarantee on a street that is built with more stringent standards than those required by the Division of Highways standards of January 1, 2017.  Provides in subsections (l) through (n) the process, procedures, and timelines for Department of Transportation (DOT) acceptance, specifically that DOT must accept subdivision roads offered for public dedication within subdivisions or developments approved on or after October 1, 2010, that are fully completed or confirmed by a built to standards letter as soon as is possible after January 1, 2018, if specified metrics are met. Provides that any subdivision street completed prior to January 1, 2018, that has not yet been accepted by the Department, are subject to Division of Highway subdivision street construction standards of January 1, 2017, and shall be accepted by the Department in accordance with this statute. Provides that roads that meet the requirements can be proposed for acceptance by either the county or another party to the Division of Highways and that acceptance by the Division of Highways must be issued as soon as the Division can review the streets and assure that they meet requirements, provided that the review occurs within 60 days of the request. Provides in subsection (p) that counties can finance the costs of improvements made under DOT supervision to bring streets up to standards for acceptance if necessary and recover costs in doing so. Provides specified applicability exceptions of the provisions in this section in subsection (q) and details terms for use in this statute as they apply to the components of the road construction in subsection (r). Sets out four conditions or actions in subsection (s) that cannot be a basis for denial or delay of acceptance by the DOT for streets or roads completed between October 1, 2010, and September 30, 2017. Directs the DOT in subsection (t) to work with each county to provide necessary information so that counties can compile a readily available "County Public Street Information Database," to be completed before January 1, 2019. Describes and specifies which roads are to be included. Directs the DOT to update its Subdivision Roads Minimum Construction Standards manual, and any related policies, by July 1, 2018, and regularly thereafter, to reflect current federal and state law, and to report all updates to the Joint Legislative Transportation Oversight Committee.

Effective July 1, 2017.