Bill Summary for H 77 (2019-2020)

Summary date: 

Jun 18 2020

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 77 (Public) Filed Wednesday, February 13, 2019
AN ACT TO ADJUST THE DEPARTMENT OF TRANSPORTATION CERTIFIED BUDGET FOR THE 2020-2021 FISCAL YEAR AND TO IMPLEMENT GOVERNANCE MEASURES AND OTHER MODIFICATIONS RELATED TO THE OPERATIONS OF THE DEPARTMENT.
Intro. by Torbett, Presnell, Iler, Shepard.

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Bill summary

Senate amendment makes the following changes to the 5th edition.

Part II

Modifies the following appropriations. Reduces the amount appropriated for maintenance in DOT’s 2020-21 Current Operations Highway Fund schedule from $70,777,925 to $65,715,093. Further reduces the amount appropriated for aviation in DOT’s 2020-21 Current Operations Highway Fund schedule from $13,745,222 to $8,682,390.

Part III

Reduces from $112,221,003 to $107,158,171 the amount appropriated from the Highway Fund that must be used for General Maintenance Reserve and Contract Resurfacing. Achieves this outcome by reducing the non-recurring appropriation for Contract Resurfacing from $28,055,251 to $22,992,419, with a revised net appropriation of $558,674,899 (was $563,737,731).

Further reduces from $181,921,003 to $176,858,171 designated appropriation reductions to DOT from the Highway Fund. In particular, the reduction of $8,878,022 in nonrecurring funds to Commercial Airport Funds is lowered to $3,815,190, with a revised net appropriation of $71,184,810 (was $66,121,978).

Part IV

Modifies the act’s GARVEE Bond provisions as follows. Directs DOT to continue to obligate federal funds in accordance with the Master Trust Indenture (MTI), pursuant to (i) the memorandum of agreement (MOA) reached between DOT and the Federal Highway Administration and (ii) the MTI between the State and the Master Trustee named in the MTI that secures all outstanding GARVEE Bonds. Further directs DOT, except as prohibited by the MTI or MOA, to use other legally available federal funds to fund and maintain a GARVEE/Federal Repayment Reserve Fund equal to the immediately ensuing payment of only interest, or both principal and interest, on all outstanding GARVEE Bonds. Requires DOT to use federal funds only for payment of debt service on GARVEE Bonds. Retains definition of currently existing project as a project that was in the process of design or construction as of June 1, 2020.

Modifies the proposed changes GS 136-44.2E(c) to require the Secretary of Transportation to access and use funds in the Emergency Reserve in a manner that ensures the funds are eligible for federal reimbursement (previously required the Secretary to ensure that Emergency Reserve funds were used in a manner that would not jeopardize federal reimbursements for disaster-related expenses).

Amends the proposed changes to GS 143C-6-11 to exempt personal services instead of salaries from DOT budget reductions caused by the depletion of funds allocated for snow and ice removal and emergencies. Retains the act’s other revisions to G.S. 143C-6-11, which together require DOT, in coordination with the Office of State Budget and Management (OSBM), to reduce by the same percentage the budget for every department division, grant-in-aid, and category of expenditures to pay for any unanticipated expenditures for snow and ice removal and emergencies.

Allocates $5,062,832 to Wilmington International from Commercial Airport Funds.

Corrects an internal cross-reference in Section 4.14(a).

Deletes the proposed change to GS 143B-350(B)(1) that would have allowed more than two members of the Board of Transportation to reside in the same highway division.

Substitutes “Transportation Oversight Manager” for “Director of Transportation Budget” throughout proposed GS 143C-6.11.1 (Department of Transportation Spend Plan).

Amends Section 5.5 of the act to change the title of a transferred position from “Director of Transportation Budget” to “Transportation Oversight Manager.” Eliminates the requirement that the person in that position report to the State Budget Officer. Directs the Transportation Oversight Manager to ensure that DOT executes its budget in accordance with all statutes governing DOT finances, not just the State Budget Act. Directs DOT to give full access to, and training on, all systems so that the OSBM can perform proper oversight. Previously the act directed DOT to give the Director of Transportation Budget full access to, and training on, all financial systems utilized by DOT to the extent necessary for the Director to perform his or her duties. Makes conforming changes.

Directs the OSBM, rather than the Director of Transportation Budget, to work with DOT to prepare and submit the reports required by new GS 143C-6-11(p).

Provides that, if Section 2.5 of Senate Bill 750 of the 2019 Regular Session becomes law, section 4.16 of the act is repealed. Section 4.16 allows DOT’s Ferry Division to use up to $1,146,179 to lease and operate a ferry vessel for operation between Hatteras and Ocracoke.

Requires all totals in the act to be adjusted in accordance with the amendments made.

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