Bill Summary for S 778 (2015-2016)

Summary date: 

Jun 14 2016

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 778 (Public) Filed Wednesday, April 27, 2016
Intro. by Wade, Brock, B. Jackson.

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Bill summary

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

Amends the short and long titles.

Deletes all of the provisions of the previous edition and replaces it with the following.

Enacts 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 October 1, 2016, 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 (k) 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 (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.  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, 2017, if specified metrics are met. 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 conditional requirements, provided that the review occurs within 60 days of the request. Provides in subsection (o) that counties can make improvements 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 (p) and details terms for use in this statute as they apply to the components of the road construction in subsection (q). Sets out four conditions or actions in subsection (r) 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, 2016. Directs the DOT in subsection (s) 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, 2018.  Describes and specifies which roads are to be included. 

Amends GS 136-18, concerning the powers of the DOT for road improvements related to K-12 schools, specifically to roadways, driveways and bus parking on public K-12 school sites, providing that the DOT is now authorized to expend up to $60,000 per project and has the power to grant final design approval. Provides that the term "public school" includes a public charter school, and that a public charter school includes public charter schools opened on or after July 1, 2015. Gives the DOT power to grant final project design approval. Also amends the power of the DOT as far as its authority to oversee improvements to public roads adjacent to but not located on any school property of any K-12 school. Further provides that the DOT has power to grant final project design approval, but that schools can engage private traffic engineers for the design as specified. Provides that the DOT can only require improvements required for safe ingress and egress to the State highway system and that are physically connected to a school driveway. Also provides that improvements made to the State highway system provided by the school must be reimbursed by the DOT. Defines school and improvements

Enacts GS 160A-307.1, Limitation on city requirements for street improvements related to schools, providing that a city can only require street improvements related to K-12 schools that are required for the safe ingress and egress to the municipal street system and that are physically connected to a driveway on the school site. Specifies limits for required improvements, providing the improvements cannot exceed those required pursuant to GS 136-18(29), concerning the size, location, direction of traffic flow, and the construction of driveway connections. Sets out further details concerning agreements for improvements as well as reimbursement requirements by the DOT. 

Enacts GS 153A-340(k1) (applicable to counties) and GS 160A-381(g1) (applicable to municipalities) concerning local government planning and regulation of development, providing that such regulations adopted by local governments must provide that schools are permitted as a matter of right in all zoning districts, including relocatable and modular school units. Provides that certain lighted athletic facilities can be subject to special use permit standards as accessory uses to the school, but such special use permit standards are limited to the portion of the school site where the athletic facility is located. Further provides that only street improvements for planned access drives from the athletic facilities connecting to public streets will be allowed. Defines school for the purpose of these statutes.

Effective October 1, 2016. 

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