Performance Guarantees/Subdivision Streets (New)

View NCGA Bill Details2015-2016 Session
Senate Bill 778 (Public) Filed Wednesday, April 27, 2016
AN ACT TO MAKE CHANGES TO STATE LOW CONCERNING PERFORMANCE GUARANTEES ON COUNTY SUBDIVISION STREETS OFFERED FOR PUBLIC DEDICATION; NCDOT AND CITY REQUIREMENTS FOR ROAD IMPROVEMENTS ADJACENT TO SCHOOLS.
Intro. by Wade, Brock, B. Jackson.

Status: Re-ref Com On Transportation (Senate Action) (Jun 21 2016)

SOG comments (2):

Change Long Title

House committee substitute to 2nd edition changed long title.  Long title was AN ACT TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO STUDY THE FISCAL IMPACT OF SEPA REFORM, AS RECOMMENDED BY THE ENVIRONMENTAL REVIEW COMMISSION.

Long Title Change

House amendment to the 3rd edition makes changes to the long title. The original title was as follows:

AN ACT TO MAKE CHANGES TO STATE LAW CONCERNING PERFORMANCE GUARANTEES ON COUNTY SUBDIVISION STREETS OFFERED FOR PUBLIC DEDICATION; NCDOT AND CITY REQUIREMENTS FOR ROAD IMPROVEMENTS ADJACENT TO SCHOOLS; AND ZONING APPLICABLE TO SCHOOLS.

Bill History:

S 778

Bill Summaries:

  • Summary date: Jun 16 2016 - More information

    House amendment makes the following changes to the 3rd edition.

    Changes the long title.

    Current GS 136-18(29a) concerns the Department of Transportation's power to coordinate with all public and private entities planning schools to provide written recommendations and evaluations of driveway access and traffic operational and safety impacts on the State highway system resulting from the development of the proposed sites. Amends the proposed addition to subsection (29a) to establish that the total cost of any improvements to the State highway system provided by a school pursuant to subsection (29a), including those improvements made pursuant to subsection (29) of the statute (previously, did not specify improvements made pursuant to subsection (29) of the statute to also be included in the total cost), are to be reimbursed by the Department.

    Deletes proposed subsection (k1) of GS 153A-340, and proposed subsection (g1) of GS 160A-381, which directed that 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. 

    Makes a technical change to the effective date provisions.


  • Summary date: Jun 14 2016 - More information

    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. 


  • Summary date: May 11 2016 - More information

    Senate committee substitute to the 1st edition makes the following changes.

    Requires that the Department of Transportation's report on their study of the impact that reforms to the State Environmental Policy Act have had on transportation projects also be given to the Joint Legislative Transportation Oversight Committee. 


  • Summary date: Apr 27 2016 - More information

    Identical to H 1003 filed on 4/27/16.

    Directs the Department of Transportation to study the impact of reforms to the State Environmental Policy Act (SEPA) enacted by SL 2015-90 (SEPA Reform).  Specifically directs the Department to assess impacts on transportation project permitting costs and other savings as a result of shortening project construction timelines. Requires the Department to report the results of the study and any recommendations by the Department for other changes in State environmental law that would result in significant cost savings to the Environmental Review Commission no later than December 1, 2016.


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