Local Govt Transportation System Financing.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 584

Short Title: Local Govt Transportation System Financing. (Public)
Sponsors: Senators Rabon, Craven, and Sawyer (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S584-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AUTHORIZE SUPPLEMENTAL SOURCES OF REVENUE FOR LOCA L 2
GOVERNMENT TRANSPORTATION SYSTEM FINANCING. 3
The General Assembly of North Carolina enacts: 4
5
PART I. RESERVED 6
7
PART II. REVISIONS T O CURRENT LOCAL SALE S TAX FOR PUBLIC 8
TRANSPORTATION 9
SECTION 2.1. G.S. 105-506.1 reads as rewritten: 10
"§ 105-506.1. Definitions. 11
The definitions in G.S. 105-164.3 and the following definitions apply in this Article: 12
… 13
(3) Public transportation system. – Any combination of real and personal property 14
established for purposes of public transportation. The systems may include 15
one or more of the following: structures, improvements, buildings, equipment, 16
vehicle parking or passenger transfer facilities, railroads and railroad 17
rights-of-way, rights -of-way, bus services, shared -ride services, 18
high-occupancy vehicle facilities, car -pool and vanpool programs, voucher 19
programs, telecommunications and information systems, integrated fare 20
systems, and the interconnected bicycle and pedestrian infrastructure that 21
supports public transportation, bus lanes, and busways. The term includes 22
tunnels and other infrastructure designed to rapidly transport people, freight, 23
or vehicles through automated means. The term does not include, however, 24
streets, roads, or high ways except to the extent they are dedicated to public 25
transportation vehicles or to the extent they are necessary for access to vehicle 26
parking or passenger transfer facilities. 27
(4) Transportation authority. – For the purposes of Part 2 of this Article, a 28
metropolitan public transportation authority created pursuant to Article 34 of 29
Chapter 160A of the General Statutes . For the purposes of Parts 3 and 4 of 30
this Article, a regional public transportation authority created pursuant to 31
Article 26 of Chapter 16 0A of the General Statutes; and for the purposes of 32
Parts 3 and 5 of this Article, a regional transportation authority created 33
pursuant to Article 27 of Chapter 160A of the General Statutes." 34
SECTION 2.2. Reserved. 35
SECTION 2.3. G.S. 105-507.3(b) reads as rewritten: 36
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"(b) Use. – A county must allocate the net proceeds distributed to it in accordance with its 1
financial plan adopted pursuant to G.S. 105-507 and use the net proceeds only for financing, 2
constructing, operating, and maintaining local public tran sportation systems. Any other unit of 3
local government may use the net proceeds distributed to it under this Part only for financing, 4
constructing, operating, and maintaining local public transportation systems. Every unit of 5
government shall use the net proceeds to supplement and not to supplant or replace existing funds 6
or other resources for public transportation systems. The net proceeds distributed to any unit of 7
local government, other than the county that levies the tax, pursuant to this Part may be included 8
as revenues within the meaning of G.S. 159-81(4), including any modifications of that statute." 9
SECTION 2.4. Reserved. 10
SECTION 2.5. This Part is effective when it becomes law. 11
12
PART III. RESERVED 13
14
PART IV. RESERVED 15
16
PART V. METROPOLITAN PUBLIC TRANSPORTATION AUTHORITY 17
SECTION 5.1. Chapter 160A of the General Statutes is amended by adding a new 18
Article to read: 19
"Article 34. 20
"Metropolitan Public Transportation Authority. 21
"§ 160A-900. Title. 22
This Article shall be known and may be cited as the "Metropolitan Public Transportation 23
Authority Act." 24
"§ 160A-901. Definitions. 25
As used in this Article, unless the context otherwise requires: 26
(1) Authority. – A metropolitan public transportation authority as defined by 27
subdivision (5) of this section. 28
(2) Board of trustees. – The governing board of the authority, in which the general 29
legislative powers of the authority are vested. 30
(3) Metropolitan public transportation authority. – A body corporate and politic 31
organized in accordance with the provisions of this Article for the purposes, 32
with the powers and subject to the restrictions hereinafter set forth. 33
(4) Population. – The number of persons residing in respective areas as defined 34
and enumerated in the most recent decennial federal census. 35
(5) Public transportation system. – Defined in G.S. 105-506.1. 36
(6) Unit of local government. – Any county, city, town , or municipality of this 37
State, and any other political subdivision, public corporation, authority, or 38
district in this State, which is or may be authorized by law to acquire, establish, 39
construct, enlarge, improve, maintain, own, and operate public transportation 40
systems. 41
(7) Unit of local government 's chief administrative official. – The county 42
manager, city manager, town manager, or other person by whatever title, in 43
whom the responsibility for the unit of local government 's administrative 44
duties is vested. 45
"§ 160A-902. Definition of territorial jurisdiction of authority. 46
An authority may be created for any area of the State that, at the time of cre ation of the 47
authority, meets all of the following criteria: 48
(1) The area consists of a single county that has a population greater than 49
1,000,000. 50
(2) The county borders another state. 51
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(3) The county includes at least one unit of local government that operates a light 1
rail system. 2
"§ 160A-903. Creation of authority. 3
(a) The Board of Commissioners of a county for which an authority may be created as 4
defined in G.S. 160A-902 may by resolution signify its determination to organize an authority 5
under the provisions of this Article. The resolution shall be adopted after a public hearing thereon, 6
notice of which hearing shall be given by publication at least once, not less than 10 days prior to 7
the date fixed for such hearing, in a newspaper having a general circulation in the county. The 8
notice shall contain a brief statement of the substance of the proposed resolution, shall set forth 9
the proposed articles of incorporation of the authority , and shall state the time and place of the 10
public hearing to be held thereof. No county shall be required to make any other publication of 11
such resolution under the provisions of any other law. 12
(b) Each such resolution shall include articles of incorporation which shall set forth all of 13
the following: 14
(1) The name of the authority. 15
(2) A statement that the authority is organized under this Article. 16
(3) The name of the organizing county. 17
(4) A provision stating that an affirmative vote equal to at least seventy -five 18
percent (75%) of the membership of the board of trustees is required to amend 19
the articles of incorporation or to adopt or amend the bylaws of the authority. 20
(c) A certified copy of the resolutions signifying the determination to organize an 21
authority under the provisions of this Article shall be filed with the Secretary of State, together 22
with proof of publication of the notice of hearing on each of such resolutions. If the Secretary of 23
State finds that the resolution, including the articles of incorporation, conform to the provisions 24
of this Article and that the notices of hearing were properly published, the Secretary shall file the 25
resolutions and proofs of publication and shall issue a certificate of incorporation under the seal 26
of the State and shall record the same in an appropriate book of record. The issu ance of a 27
certificate of incorporation by the Secretary of State constitutes the authority a public body and 28
body politic and corporate of the State of North Carolina. The certificate of incorporation is 29
conclusive evidence of the fact that the authority has been duly created and established under the 30
provisions of this Article. 31
(d) When the authority has been duly organized and its officers elected as provided in 32
this Article, the secretary of the authority shall certify to the Secretary of State the names and 33
addresses of officers as well as the address of the principal office of the authority. 34
(e) The authority may become a Designated Recipient pursuant to the Urban Mass 35
Transportation Act of 1964, as amended. 36
"§ 160A-904. Territorial jurisdiction of the authority. 37
(a) The initial territorial jurisdiction of an authority created pursuant to this Article shall 38
be coterminous with the boundaries of the county that organized it. 39
(b) Except as provided by this Article, the jurisdiction of the authority may in clude all 40
local public passenger transportation operating within the territorial jurisdiction of the authority, 41
but the authority may not take over the operation of any existing public transportation without 42
the consent of the owner. 43
(c) The authority shal l not have jurisdiction over public transportation subject to the 44
jurisdiction of and regulated by the Interstate Commerce Commission, nor shall it have 45
jurisdiction over intrastate public transportation classified as common carriers of passengers by 46
the North Carolina Utilities Commission. 47
"§ 160A-905. Membership; officers; compensation. 48
(a) The governing body of an authority is the board of trustees. The initial board of 49
trustees shall consist of 27 members, appointed as provided in this section. For each appointment 50
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below, the appointing authority may appoint an alternate that may act in the absence of the 1
primary person appointed. The appointments are as follows: 2
(1) Twelve members appointed by the board of commissioners of the county that 3
created the authority as follows: 4
a. The board of commissioners shall appoint one member as 5
recommended by the governing body of the municipality that has the 6
second largest population of residents that reside in the county. 7
b. The board of commissioners shall appoint one member as 8
recommended by the governing body of the municipality that has the 9
third largest population of residents that reside in the county. 10
c. The board of commissioners shall appoint one member as 11
recommended by the governing body of the municipalit y that has the 12
fourth largest population of residents that reside in the county. 13
d. The board of commissioners shall appoint one member as 14
recommended by the governing body of the municipality that has the 15
fifth largest population of residents that reside in the county. 16
e. The board of commissioners shall appoint one member as 17
recommended by the governing body of the municipality that has the 18
sixth largest population of residents that reside in the county. 19
f. The board of commissioners shall appoint one member as 20
recommended by the governing body of the municipality that has the 21
seventh largest population of residents that reside in the county. 22
g. The board of commissioners shall appoint six members in its 23
discretion. No more than one of these members may be an elected 24
official of the county. 25
(2) Twelve members appointed by the governing body of the largest municipality 26
in the county that created the authority as follows: 27
a. At least three of these appointments must be made upon the 28
recommendation of an en tity that represents business interests in the 29
county. The municipality may reject a recommendation from the entity 30
that represents business interests. If the municipality rejects a 31
recommendation, then the entity that represents business interests shall 32
make another recommendation to the municipality with respect to the 33
appointment. This process shall continue until the municipality 34
accepts the recommendation of the entity that represents business 35
interests. 36
b. The governing body shall appoint nine members in its discretion. No 37
more than two of these members may be an elected official of the 38
municipality. 39
(3) Two members appointed by the General Assembly, one upon the 40
recommendation of the President Pro Tempore of the Senate and one upon the 41
recommendation of the Speaker of the House of Representatives. 42
(4) One member appointed by the Governor. 43
(b) Members of the board of trustees shall serve for terms of four years, provided that 44
one-half of the initial appointments shall be for two -year terms, to be determ ined by lot at the 45
first meeting of the board of trustees. Initial terms of office shall commence upon approval by 46
the Secretary of State of the articles of incorporation. 47
(c) An appointing authority may appoint one or more of its members to the board of 48
trustees, subject to the limitations of subsection (a) of this section. Service on the board of trustees 49
may be in addition to any other office which a person is entitled to hold. Each voting member of 50
the board of trustees may hold elective public office as defined by G.S. 128-1.1(d). 51
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(d) Members of the board of trustees shall have demonstrated experience or qualifications 1
in the areas of law, finance, engineering, public transportation, urban planning, logistics, 2
government, architecture, or economic development. 3
(e) Members of the board of trustees shall reside within the territorial jurisdiction of the 4
authority as defined by G.S. 160A-904. 5
(f) Every two years, the board of trustees shall elect from its membership a group of 6
officers, which shall include a Chairperson, Vice -Chairperson, Secretary, and Treasurer. An 7
election of an officer must be by a majority vote at a meeting where a quorum is present. 8
(g) No trustee may serve for more than two consecutive terms on the board of trustees, 9
but a person who has been a member for two consecutive terms may be reappointed after being 10
off the board of trustees for a period of at least two years. An initial term that is two years or less 11
shall not be counted in determining the limitation on consecutive terms. This limitation applies 12
regardless of whether the appointments are made by the same appointing authority. 13
"§ 160A-906. Expansion of authority. 14
Upon approval of authorizing resolutions by the board of trustees and the board of 15
commissioners of the affected county, the territorial jurisdiction and service area of an authority 16
may be expanded to include a whole county within this State that is contiguous to the then 17
existing territorial jurisdiction of the authority. Each of the authorizing resolutions must recei ve 18
an affirmative vote equal to at least seventy -five percent (75%) of the membership of the 19
applicable board. The authorizing resolutions shall contain provisions with respect to the 20
following: 21
(1) The date on which the territorial jurisdiction is to be e xpanded to include the 22
county. 23
(2) The extent to which the composition of the board of trustees may be amended, 24
if at all, due to the addition of the county to the territorial jurisdiction of the 25
authority. The authorizing resolutions shall not eliminate o r amend the 26
requirements with respect to appointments to the board of trustees that are 27
provided in G.S. 160A-905. Subsections (b) through (g) of G.S. 160A-905 28
shall apply to any additional appointments to the board of trustees. 29
(3) Financial, legal, or operational commitments with respect to the county that is 30
to be added to the territorial jurisdiction of the authority. 31
(4) Any other matter determined to be relevant by the board of trustees and the 32
board of commissioners of the affected county. 33
"§ 160A-907. Voting; removal. 34
(a) A majority of the board of trustees constitutes a quorum for the transaction of 35
business. Each member shall have one vote. 36
(b) Each member of the board of trustees may be removed with or without cause by the 37
appointing authority. 38
(c) Appointments to fill vacancies shall be made for the remainder of the unexpired term 39
by the respective appointing authority charged with the responsibility for making such 40
appointments pursuant to G.S. 160A-905. All members shall serve until their succ essors are 41
appointed and qualified, unless removed from office. 42
"§ 160A-908. Advisory committees. 43
The board of trustees may provide for the selection of such advisory committees as it may 44
find appropriate, which may or may not include members of the board of trustees. 45
"§ 160A-909. Purpose of the authority. 46
The purpose of the authority shall be to finance, provide, operate, and maintain for a safe, 47
clean, reliable, adequate, convenient, energy efficient, economically and environmentally sound 48
public transportation system for the service area of the authority through the granting of 49
franchises, ownership and leasing of terminals, buses and other transportation facilities and 50
equipment, and otherwise through the exercise of the powers and duties conferred upon it, in 51
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order to enhance mobility in the region and e ncourage sound growth patterns. Such a service, 1
facility, or function shall be financed, provided, operated, or maintained in the service area of the 2
authority either in addition to or to a greater or lesser extent than services, facilities, or functions 3
are financed, provided, operated, or maintained for the entirety of the respective units of local 4
government. An authority may take direct action to accomplish these purposes or may enter 5
agreements with another unit of local government in the service area of the authority or a private 6
entity to accomplish these purposes. 7
"§ 160A-910. Service area of the authority. 8
The service area of the authority shall be as determined by the board of trustees consistent 9
with its purpose but shall not exceed the sum of the following: 10
(1) The territorial jurisdiction of the authority. 11
(2) An area outside of the territorial jurisdiction of the authority provided that one 12
of the following conditions is satisfied: 13
a. If the area is within this State, the governing bodies of th e political 14
subdivisions to which service is to be extended approve by majority 15
vote of their governing boards the extension of service into the 16
political subdivision or the purchase of real property within the 17
political subdivision for the extension of service. 18
b. If the area is in another state, the extension of service is approved by 19
any applicable federal or State agency and in accordance with the other 20
state's laws. 21
"§ 160A-911. General powers of the authority. 22
The general powers of the authority include all of the following: 23
(1) To sue and be sued. 24
(2) To have a seal. 25
(3) To make rules and regulations, not inconsistent with this Article, for its 26
organization and internal management. 27
(4) To employ persons deemed necessary to carry out the functions and duties 28
assigned to them by the authority and to fix their compensation, within the 29
limit of available funds. 30
(5) With the approval of the unit of local government 's chief administrative 31
official, to use officers, employees, agents, and facilities of the unit of local 32
government for such purposes and upon such terms as may be mutually 33
agreeable. 34
(6) To retain and employ counsel, auditors, engineers, and private consultants on 35
an annual salary, contract basis, or otherwise for rendering professional or 36
technical services and advice. 37
(7) To acquire, lease as lessee with or without option to purchase, hold, own, and 38
use any franchise, property, real or personal, tangible or intangible, or any 39
interest therein and to sell, lease as lessor with or without option to purchase, 40
transfer (or dispose thereof) whenever the same is no longer required for 41
purposes of the authority, or exchange same for other property or rights which 42
are useful for the authority purposes, including, but not necessarily limited to, 43
parking facilities. 44
(8) To acquire by gift, purchase, lease as lessee with or without option to purchase 45
or otherwise to construct, improve, maintain, repair, operate, or administer 46
any component parts of a public transportation system or to contract for the 47
maintenance, operation, or administration thereof or to lease as lessor the same 48
for maintenance, operation, or administration by private parties, including 49
parking facilities. 50
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(9) To make or enter into contracts, agreements, deeds, leases with or without 1
option to purchase, conveyances or other instruments, including contracts and 2
agreements with the United States, the State of North Carolina, and units of 3
local government. 4
(10) To purchase or finance real or personal property in the manner provided for 5
cities and counties under G.S. 160A-20. 6
(11) To surrender to the State of North Carolina or a unit of local government any 7
property no longer required by the authority. 8
(12) To develop and make data, plans, information, surveys, and studies of public 9
transportation facilities within the territorial jurisdiction of the authority and 10
to prepare and make recommendations in regard thereto. 11
(13) To enter in a reasonable manner lands, waters, or premises for the purpose of 12
making surveys, soundings, drillings, and exam inations whereby such entry 13
shall not be deemed a trespass except that the authority shall be liable for any 14
actual and consequential damages resulting from such entries. 15
(14) To develop and carry out demonstration projects. 16
(15) To make, enter into, and perform contracts with private parties, and public 17
transportation companies with respect to the management and operation of 18
public passenger transportation. 19
(16) To make, enter into, and perform contracts with any public utility, railroad, or 20
transportation company for the joint use of property or rights, for the 21
establishment of through routes, joint fares, or transfer of passengers. 22
(17) To make, enter into, and perform agreements with governmental entities for 23
payments to the authority for the transporta tion of persons for whom the 24
governmental entities desire transportation. 25
(18) With the consent of the unit of local government which would otherwise have 26
jurisdiction to exercise the powers enumerated in this subdivision: to issue 27
certificates of public c onvenience and necessity; and to grant franchises and 28
enter into franchise agreements and in all respects to regulate the operation of 29
buses and other methods of public passenger transportation which originate 30
and terminate within the territorial jurisdiction of the authority as fully as the 31
unit of local government is now or hereafter empowered to do within the 32
territorial jurisdiction of the unit of local government. 33
(19) To operate public transportation systems, to enter into and perform contracts 34
to operate public transportation services and facilities, and to own or lease 35
property, facilities, and equipment necessary or convenient therefor, and to 36
rent, lease, or otherwise sell the right to do so to any person, public or private; 37
further, to obtain grants, loans, and assistance from the United States, the State 38
of North Carolina, any public body, or any private source whatsoever, but may 39
not operate or contract for the operation of public transportation systems 40
outside the territorial jurisdiction of the authority except as provided by 41
subdivision (21) of this section. 42
(20) To enter into and perform contracts and agreements with other metropolitan 43
public transportation authorities, public transportation authorities, regional 44
public transportation authorities, or units of local government pursuant to the 45
provisions of G.S. 160A-460 through G.S. 160A-464 (Part 1 of Article 20 of 46
Chapter 160A of the General Statutes); further to enter into contracts and 47
agreements with private transportation companies, but th is subdivision does 48
not authorize the operation of, or contracting for the operation of, service of a 49
public transportation system outside the service area of the authority. 50
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(21) To operate public transportation systems extending service into any political 1
subdivision of the State of North Carolina unless a particular unit of local 2
government operating its own public transportation system or franchising the 3
operation of a public transportation system by majority vote of its governing 4
board, shall deny consent. 5
(22) To operate public transportation systems extending service into another state, 6
but only if the extension of service is authorized by any applicable federal or 7
State agency and in accordance with the other state's laws. 8
(23) Except as restricted by covenants in bonds, notes, or equipment trust 9
certificates, to set in its sole discretion rates, fees , and charges for use of its 10
public transportation system. 11
(24) To do all things necessary or convenient to carry out its purpose and to 12
exercise the powers granted to the authority. 13
(25) To issue bonds or other obligations of the authority as provided by law and 14
apply the proceeds thereof to the financing of any public transportation system 15
or any part thereof and to refund, whether or not in advance of maturity or the 16
earliest redemption date, any such bonds or other obligations of the authority 17
or another municipality that financed or refinanced real and personal property 18
for a public transportation system to be owned or operated by the authority. 19
(26) To contract for, or to provide and maintain, with respect to the facilities and 20
property owned, leased with or without option to purchase, operated or under 21
the control of the authority, and within the territory thereof, a security force to 22
protect persons and property, dispense unlawful or dangerous assemblages 23
and assemblages which obstruct full and free passage, control pedestrian and 24
vehicular traffic, and otherwise preserve and protect the public peace, health, 25
and safety; for these purposes a member of such force shall be a peace officer 26
and, as such, shall have authority equivalent to the authority of a police officer 27
of the city or county in which said member of such force is discharging such 28
duties. 29
(27) To contract for the purchase, lease, or oth er acquisition of any apparatus, 30
supplies, materials, or equipment for public transit purposes with any person 31
or entity that, within the previous 60 months, after having completed a public 32
formal bid process substantially similar to that required by Artic le 8 of 33
Chapter 143 of the General Statutes or through the competitive proposal 34
method provided in G.S. 143-129(h), has contracted to furnish the apparatus, 35
supplies, materials, or equipment to any unit or agency approved in 36
G.S. 143-129(g) if the person o r entity is willing to furnish the items at the 37
same or more favorable prices, terms, and conditions as those provided under 38
the contract with the other unit or agency. Any purchase made under this 39
section shall be approved by the board of trustees as prov ided in 40
G.S. 143-129(g). 41
"§ 160A-912. Authority of Utilities Commission not affected. 42
(a) Except as otherwise provided in this Article, nothing in this Article shall be construed 43
to limit or otherwise affect the power or authority of the North Carolina Utilities Commission or 44
the right of appeal to the North Carolina Utilities Commission as provided by law. 45
(b) The North Carolina Utilities Commission shall not have jurisdiction over rates, fees, 46
charges, routes, and schedules of an authority for service within its territorial jurisdiction. 47
"§ 160A-913. Fiscal accountability. 48
An authority is a public authority subject to the provisions of Chapter 159 of the General 49
Statutes. 50
"§ 160A-914. Funds. 51
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The establishment and operation of an authority are governmental functions and constitute a 1
public purpose, and the State of North Carolina and any unit of local government may appropriate 2
funds to support the establishment and operation of the authority. The State of North Carolina 3
and any unit of local go vernment may also dedicate, sell, convey, donate, or lease any of their 4
interests in any property to the authority. An authority may apply for grants from the State of 5
North Carolina, or from the United States or any department, agency, or instrumentality thereof. 6
The Department of Transportation may allocate to an authority any funds appropriated for public 7
transportation, or any funds whose use is not restricted by law. 8
"§ 160A-915. Competition. 9
No equipment of the authority may be used for charter, tour , or sight-seeing service except 10
as allowed under regulations adopted by the Federal Transit Administration. 11
"§ 160A-916. Effect on existing franchises and operations. 12
Creation of the authority shall not have an effect on any existing franchises granted b y any 13
unit of local government; such existing franchises shall continue in full force and effect until 14
legally terminated; further, all ordinances and resolutions of the unit of local government 15
regulating local public transportation systems, bus operations, and taxicabs shall continue in full 16
force and effect now and in the future, unless superseded by regulations of the authority; such 17
superseding, if any, may occur only on the basis of prior mutual agreement between the authority 18
and the respective unit of local government. 19
"§ 160A-917. Termination. 20
The board of trustees may terminate the existence of the authority by adopting a resolution 21
by majority vote to do so at any time when it has no outstanding indebtedness. The resolution to 22
terminate the exist ence of the authority does not become effective unless and until ratified by 23
majority vote of the board of commissioners of the county that created the authority. In the event 24
of such termination, all property and assets of the authority not otherwise encu mbered shall 25
become the property of a unit of local government within the territorial jurisdiction of the 26
authority as specified in the termination resolution and, if accepted by the unit of local 27
government, the unit of local government shall succeed to a ll rights, obligations, and liabilities 28
of the authority. 29
"§ 160A-918. Controlling provisions. 30
Insofar as the provisions of this Article are not consistent with the provisions of any other 31
law, public or private, the provisions of this Article shall be controlling. 32
"§ 160A-919. Bonds and notes authorized. 33
In addition to the powers granted by this Article, the authority may issue bonds and notes 34
pursuant to the provisions of The State and Local Government Revenue Bond Act, Article 5 of 35
Chapter 159 of the General Statutes, for the purpose of financing public transportation systems 36
or any part thereof and to refund such bonds and notes and to refund any bonds, notes , or other 37
obligations of another municipality used to finance or refinance real and personal property for a 38
public transportation system to be owned or operated by the authority, whether or not in advance 39
of their maturity or earliest redemption date. 40
"§ 160A-920. Equipment trust certificates. 41
In addition to the powers here and before granted, the authority shall have continuing power 42
to purchase equipment, and in connection therewith execute agreements, leases with or without 43
option to purchase, or equipment trust certificates. All money required to be paid by the authority 44
under the provisions o f such agreements, leases with or without option to purchase, and 45
equipment trust certificates shall be payable solely from the fares, fees, rentals, charges, revenues, 46
and earnings of the authority, monies derived from the sale of any surplus property of the 47
authority, and gifts, grants, and contributions from any source whatever. Payment for such 48
equipment or rentals may be made in installments; the deferred installments may be evidenced 49
by equipment trust certificates payable solely from the aforesaid revenues or receipts and title to 50
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such equipment may or may not vest in the authority until the equipment trust certificates are 1
paid. 2
"§ 160A-921. Power of eminent domain. 3
(a) The authority shall have continuing power to acquire, by gift, grant, devise, exchange, 4
purchase, lease with or without option to purchase, or any other lawful method, including the 5
power of eminent domain, the fee or any lesser interest in real or personal property for use by the 6
authority. 7
(b) Exercise of the power of eminent domain by the authority shall be in accordance with 8
Chapters 40A and 136 of the General Statutes. 9
"§ 160A-922. Tax exemption. 10
The property of the authority, both real and personal, its acts, activities, and income shall be 11
exempt from any tax or tax obligation; in the event of any lease of authority property, or other 12
arrangement which amounts to a leasehold interest, to a private party, this exemption shall not 13
apply to the value of such leasehold inter est nor shall it apply to the income of the lessee. 14
Otherwise, however, for the purpose of taxation, when property of the authority is leased to 15
private parties solely for the purpose of the authority, the acts and activities of the lessee shall be 16
considered as the acts and activities of the authority and the exemption. The interest on bonds or 17
obligations issued by the authority shall be exempt from State taxes. 18
"§ 160A-923. Removal and relocation of utility structures. 19
(a) The authority shall have the p ower to require any public utility, railroad, or other 20
public service corporation owning or operating any installations, structures, equipment, 21
apparatus, appliances, or facilities in, upon, under, over, across, or along any ways on which the 22
authority has the right to own, construct, operate, or maintain its public transportation system, to 23
relocate such installations, structures, equipment, apparatus, appliances , or facilities from their 24
locations, or, in the sole discretion of the affected public utility, railroad, or other public service 25
corporation, to remove such installations, structures, equipment, apparatus, appliances , or 26
facilities from their locations. 27
(b) If the owner or operator thereof fails or refuses to relocate them, the authority may 28
proceed to do so. 29
(c) Except as otherwise agreed, the authority shall provide any necessary new locations 30
and necessary real estate interests for such relocation and, for that purpose, the power of eminent 31
domain as provided in G.S. 160A-921 may be exercised provided the new locations shall not be 32
in, on, or above a public highway; the authority may also acquire the necessary new locations by 33
purchase or otherwise. 34
(d) Except as otherwise agreed, any affected public utility, railroad , or other public 35
service corporation shall be compensated for any real estate interest taken in a manner consistent 36
with G.S. 160A-921, subject to the right of the authority to reduce the compensation due by the 37
value of any property exchanged under this section. 38
(e) The method and procedures of a particular adjustment to the facilities of a public 39
utility, railroad, or other public service corporation shall be covered by an agreement between 40
the authority and the affected party or parties. 41
(f) Except as otherwise agreed, the author ity shall reimburse the public utility, railroad , 42
or other public service corporation for the cost of relocations or removals which shall be the 43
entire amount paid or incurred by the utility properly attributable thereto after deducting the cost 44
of any increase in the service capacity of the new installations, structures, equipment, apparatus, 45
appliances, or facilities and any salvage value derived from the old installations, structures, 46
equipment, apparatus, or appliances. 47
"§ 160A-924. Reports to the General Assembly. 48
The authority shall annually submit to the General Assembly, on or before February 1, its 49
annual operating report, including a report of its administrative expenditures, and its audited 50
financial report. In odd -numbered years, the report shal l be submitted to the Senate and House 51
General Assembly Of North Carolina Session 2025
Senate Bill 584-First Edition Page 11
Transportation Committees. In even -numbered years, the report shall be submitted to the Joint 1
Legislative Transportation Oversight Committee. 2
"§ 160A-925. Limitations on rail transportation liability. 3
(a) As used in this section: 4
(1) Claim. – A claim, action, suit, or request for damages, whether compensatory, 5
punitive, or otherwise, made by any person or entity against: 6
a. The authority, a railroad, or an operating rights railroad; or 7
b. An officer, director, trustee, employee, parent, subsidiary, or affiliated 8
corporation as defined in G.S. 105-130.2, or agent of: the authority, a 9
railroad, or an operating rights railroad. 10
(2) Operating rights railroad. – A railroad corporation or railroad company that, 11
prior to Janu ary 1, 2001, was granted operating rights by a State -Owned 12
Railroad Company or operated over the property of a State -Owned Railroad 13
Company under a claim of right over or adjacent to facilities used by or on 14
behalf of the authority. 15
(3) Passenger rail services. – The transportation of rail passengers by or on behalf 16
of the authority and all services performed by a railroad pursuant to a contract 17
with the authority in connection with the transportation of rail passengers, 18
including, but not limited to, the o peration of trains; the use of right -of-way, 19
trackage, public or private roadway and rail crossings, equipment, or station 20
areas or appurtenant facilities; the design, construction, reconstruction, 21
operation, or maintenance of rail -related equipment, track s, and any 22
appurtenant facilities; or the provision of access rights over or adjacent to lines 23
owned by the authority or a railroad, or otherwise occupied by the authority 24
or a railroad, pursuant to charter grant, fee simple deed, lease, easement, 25
license, trackage rights, or other form of ownership or authorized use. 26
(4) Railroad. – A railroad corporation or railroad company, including a 27
State-Owned Railroad Company as defined in G.S. 124-11, that has entered 28
into any contracts or operating agreements of a ny kind with the authority 29
concerning passenger rail services. 30
(b) Contracts Allocating Financial Responsibility Authorized. – The authority may 31
contract with any railroad to allocate financial responsibility for passenger rail services claims, 32
including, but not limited to, the execution of indemnity agreements, notwithstanding any other 33
statutory, common law, public policy, or other prohibition against same, and regardless of the 34
nature of the claim or the conduct giving rise to such claim. 35
(c) Insurance Required. – 36
(1) If the authority enters into any contract authorized by subsection (b) of this 37
section, the contract shall require the authority to secure and maintain, upon 38
and after the commencement of the operation of trains by or on behalf of the 39
authority, a liability insurance policy covering the liability of the parties to the 40
contract, a State -Owned Railroad Company as defined in G.S. 124-11 that 41
owns or claims an interest in any real property subject to the contract, and any 42
operating rights railroad for all claims for property damage, personal injury, 43
bodily injury, and death arising out of or related to passenger rail services. The 44
policy shall name the parties to the contract, a State -Owned Railroad 45
Company as defined in G.S. 124-11 that owns or claims an interest in any real 46
property subject to the contract, and any operating rights railroad as named 47
insureds and shall have policy limits of not less than two hundred million 48
dollars ($200,000,000) per single accident or incident, and may inc lude a 49
self-insured retention in an amount of not more than five million dollars 50
($5,000,000). 51
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(2) If the authority does not enter into any contract authorized by subsection (b) 1
of this section, upon and after the commencement of the operation of trains by 2
or on behalf of the authority, the authority shall secure and maintain a liability 3
insurance policy, with policy limits and a self -insured retention consistent 4
with subdivision (1) of this subsection, for all claims for property damage, 5
personal injury, bodily injury, and death arising out of or related to passenger 6
rail services. 7
(d) Liability Limit. – The aggregate liability of the authority, the parties to the contract 8
or contracts authorized by subsection (b) of this section, a State -Owned Railroad Com pany as 9
defined in G.S. 124-11, and any operating rights railroad for all claims arising from a single 10
accident or incident related to passenger rail services for property damage, personal injury, bodily 11
injury, and death is limited to two hundred million dollars ($200,000,000) per single accident or 12
incident or to any proceeds available under any insurance policy secured pursuant to subsection 13
(c) of this section, whichever is greater. 14
(e) Effect on Other Laws. – This section shall not affect the damages t hat may be 15
recovered under the Federal Employers ' Liability Act, 45 U.S.C. § 51, et seq., (1908); or under 16
Article 1 of Chapter 97 of the General Statutes. 17
"§ 160A-926. Civil liability. 18
Except as provided in G.S. 160A-925, the authority shall be deemed a city for purposes of 19
civil liability pursuant to G.S. 160A-485. Governmental immunity of the authority is waived to 20
a minimum of twenty million dollars ($20,000,000) per single accident or incident. The authority 21
shall maintain a minimum of twenty million dollars ($20,000,000) per single accident or incident 22
of liability insurance. Participation in a local government risk pool pursuant to Article 23 of 23
Chapter 58 of the General Statutes shall be deemed to be the purchase of insurance for the purpose 24
of this section." 25
26
PART VI. REQUIREMENT S IF MECKLENBURG COU NTY CREATES A 27
METROPOLITAN PUBLIC TRANSPORTATION AUTHORITY 28
SECTION 6.1. If Mecklenburg County creates a metropolitan public transportation 29
authority under Article 34 of Chapter 160A of the General Statutes, as enacted by Part V of this 30
act, then that Authority is subject to all of the provisions of this Part. 31
SECTION 6.2. The Authority shall conduct a study of the issues listed in this section. 32
The Authority may use any source of funding available to it to conduct the studies required by 33
this section. This specifically includes funds provided to the Authority by another u nit of 34
government and funds that the Authority receives as a donation or grant from any other public or 35
private source. The Authority shall complete the study required under this section and publish a 36
report no later than July 1, 2025. The Authority shall publish the report and submit copies of the 37
report to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, 38
the Legislative Library, the Mecklenburg County Board of Commissioners, the Charlotte City 39
Council, the Town of Corn elius Board of Commissioners, the Town of Davidson Board of 40
Commissioners, the Town of Huntersville Board of Commissioners, the Town of Matthews 41
Board of Commissioners, the Town of Mint Hill Board of Commissioners, the Town of 42
Mooresville Board of Commissioners, and the Pineville Town Council. The Authority shall study 43
the following issues: 44
(1) Legal and financial considerations with respect to the transfer or use of assets 45
from the City of Charlotte or the Charlotte Area Transportation System 46
(CATS) to the Authority. 47
(2) Legal and financial considerations with respect to outstanding indebtedness 48
issued by the City of Charlotte with respect to CATS to ensure no adverse 49
impacts in relation to the outstanding indebtedness. 50
General Assembly Of North Carolina Session 2025
Senate Bill 584-First Edition Page 13
(3) Legal and financial consideration s with respect to agreements and 1
recognitions by the City of Charlotte or CATS with respect to the public 2
transportation system with any federal, State, regional, or local governmental 3
entities. 4
(4) Legal and financial considerations with respect to human resources of a 5
transfer of assets, liabilities, and operations of the public transportation system 6
from the City of Charlotte or CATS to the Authority, including issues related, 7
but not limited, to employee pensions, retirement plans, and benefits. 8
(5) A r ecommendation as to whether the transfer of assets, liabilities, and 9
operations of the existing public transportation system to the Authority is 10
feasible and advisable. 11
(6) Any other issue determined to be relevant by the Authority. 12
SECTION 6.3. Reserved. 13
SECTION 6.4. The Authority shall do the following no later than one year after 14
enactment of this act: 15
(1) Adopt bylaws that are consistent with the provisions of Article 34 of Chapter 16
160A of the General Statutes. 17
(2) Establish policies with respect to B oard governance, including the adoption 18
of a Code of Ethics for Trustees and key employees and the adoption of a 19
Conflicts of Interest policy. 20
(3) Create a human resources plan. This includes, at a minimum: 21
a. Creating an organizational chart that specifie s positions that report 22
directly to the Authority's Board of Trustees. 23
b. Completing the search for direct reports to the Board of Trustees. 24
c. Creating personnel policies and procedures, including those related to 25
employee recruitment and retention, compe nsation and benefit 26
policies and plans, and an employee code of conduct. 27
d. Taking all steps necessary to ensure participation by the Authority in 28
the Local Governmental Employees' Retirement System under Article 29
3 of Chapter 128 of the General Statutes. 30
e. Creating a plan, including a time line, to implement a transfer of 31
employees of CATS from the City of Charlotte to the Authority. 32
f. Developing or acquiring information technology and other assets 33
needed to implement the human resources plan. 34
(4) Develop financial policies for the Authority. 35
(5) Develop operational policies for the Authority, including policies related to 36
business continuity, system operation, maintenance of the system and system 37
assets, fares, purchasing and contracts, transit rules and regulations, travel 38
markets, transit service, and advertising and sponsorships. 39
(6) Develop an information technology plan for the operation and administration 40
of the public transportation system. The plan shall include provisions related 41
to cybersecurity, data privacy, and the use of websites and mobile 42
applications. 43
(7) Create a plan, including a time line, for the acquisition of the assets of CATS 44
from the City of Charlotte. This includes: 45
a. Drafting agreements to be entered into with the City of Charlotte with 46
respect to the use, control, and acquisition of assets of CATS. With 47
respect to assets of CATS that were procured with funds available to 48
the City other than (i) federal or State funds received by the City with 49
respect to CATS, (ii) funds generated by a tax levied under Article 43 50
of Chapter 105 of the General Statutes, and (iii) funds generated by a 51
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Page 14 Senate Bill 584-First Edition
tax levied under Section 3.1 of S.L. 1997-417, as added by Section 30 1
of S.L. 2006-162 and amended by Section 2(h) of S.L. 2009 -527 and 2
by Senate Bill 145 of the 2025 General Assembly, if that bill becomes 3
law, the agreements shall provide that the City has a right of reverter 4
with respect to the property if the property is no longer used for a 5
purpose supporting the operation of a public transportation system. 6
b. Negotiating an agreement with the City of Charlotte to reimburse the 7
City for the acquisition of the Norfolk Southern O-Line as provided in 8
Section 4.9(4) of Senate Bill 145 of the 2025 General Assembly, if that 9
bill becomes law. 10
c. Drafting ag reements with the City of Charlotte with respect to any 11
outstanding bonds, notes, or other financing secured or payable by 12
receipts from the taxes levied under Article 43 of Chapter 105 of the 13
General Statutes or under Section 3.1 of S.L. 1997 -417, as added by 14
Section 30 of S.L. 2006 -162 and amended by Section 2(h) of S.L. 15
2009-527 and Senate Bill 145 of the 2025 General Assembly, if that 16
bill becomes law. 17
d. Notwithstanding the agreements above, any agreements entered into 18
between the City and the Authorit y will require that the Authority 19
undertake all obligations necessary to ensure that the City will remain 20
in compliance with and will not have an adverse impact on the City's 21
outstanding bonds, notes, or other financing obligations for the public 22
transportation system. 23
(8) Take all steps necessary to ensure approval by the Federal Transit 24
Administration and any other applicable federal or State agency of the use, 25
control, and acquisition of CATS assets. 26
(9) Draft amendments to the interlocal agreement between Mecklenburg County, 27
the City of Charlotte, the Town of Cornelius, the Town of Davidson, the Town 28
of Huntersville, the Town of Matthews, the Town of Mint Hill, and the Town 29
of Pineville dated February 16, 1999, as amended, to provide for the 30
termination of that agreement at the time a tax levied under Senate Bill 145 of 31
the 2025 General Assembly, if that bill becomes law, becomes effective, 32
subject to any continuing obligations agreed to by the parties to the agreement. 33
The agreement shall contain provisi ons dissolving the Metropolitan Transit 34
Commission created under that interlocal agreement and repealing all 35
maintenance-of-effort requirements. 36
(10) Draft agreements or amendments to agreements with third parties to ensure 37
that the Authority may be substi tuted for the City as a party to any ongoing 38
contracts, agreements, rights, responsibilities, or liabilities with respect to 39
CATS once the Authority assumes operational control of CATS. 40
SECTION 6.5. If Mecklenburg County enacts a tax authorized by Senate Bill 145 41
of the 2025 General Assembly, if that bill becomes law, then the Authority and the City of 42
Charlotte shall do all of the following effective as of the date the tax levied under that Part 43
becomes effective: 44
(1) The Authority shall begin receiving the proceeds of all of the following: 45
a. Taxes levied under Senate Bill 145 of the 2025 General Assembly, if 46
that bill becomes law as provided in that act. 47
b. Taxes levied under Article 43 of Chapter 105 of the General Statutes 48
as provided in G.S. 105-507.3. 49
c. Taxes levied under Section 3.1 of S.L. 1997-417, as added by Section 50
30 of S.L. 2006 -162 and amended by Section 2(h) of S.L. 2009 -527 51
General Assembly Of North Carolina Session 2025
Senate Bill 584-First Edition Page 15
and Senate Bill 145 of the 2025 General Assembly, if that bill becomes 1
law, as provided in that act. 2
(2) The City shall transfer control of the operational assets of CATS to the 3
Authority subject to use agreements between the City and the Authority. 4
(3) The City shall retain ownership of any assets that are pledged as security for 5
any outstanding indebtedness. Once any outstanding indebtedness is satisfied, 6
the City shall begin transferring ownership of these assets of CATS to the 7
Authority as provided in the agreements. 8
(4) The City shall begin transferring ownership of other physical assets of CATS 9
to the Authority as provided in the agreements. 10
(5) The City shall retain the thirty million dollars ($30,000,000) required fund 11
balance from the existing CATS Revenue Reserve Fund. If these reserves 12
must be used by the City to cover any debt service payments due within the 13
current fiscal year, the Authority shall provide an amount sufficient to return 14
the fund balance to the thirty million dollars ($30,000,000) required balance. 15
Once all applicable debt obligations have been satisfied, any amount 16
remaining in the Fund shall revert to the Authority. 17
(6) The Authority shall begin making payments to the City in accordance with 18
agreements between the Authority and the City for the following: 19
a. An amount to the City that is, at a minimum, sufficient to cover any 20
debt service pay ments due within the current fiscal year. Amounts 21
must be provided according to a schedule that ensures the funds are 22
available prior to the required payment dates. 23
b. An amount to reimburse the City for the acquisition of the Norfolk 24
Southern O-Line as provided in the agreements. 25
(7) Except as provided with specifically identified positions or individuals, 26
employees of CATS shall be transferred from the City to the Authority. 27
SECTION 6.6. If Mecklenburg County enacts a tax authorized by Senate Bill 145 28
of the 2025 General Assembly, if that bill becomes law, then, as of the date the tax levied under 29
that act becomes effective, the interlocal agreement between Mecklenburg County, the City of 30
Charlotte, the Town of Cornelius, the Town of Davidson, the Town of Huntersville, the Town of 31
Matthews, the Town of Mint Hill, and the Town of Pineville dated February 16, 1999, as 32
amended, and any other interlocal agreement with respect to the tax levied under Article 43 of 33
Chapter 105 of the General Statutes or a tax levied under Section 3.1 of S.L. 1997-417, as added 34
by Section 30 of S.L. 2006 -162 and amended by Section 2(h) of S.L. 2009 -527 and Senate Bill 35
145 of the 2025 General Assembly, if that bill becomes law, is terminated subject to any 36
continuing obligations agreed to by the parties to that agreement. In addition, the Metropolitan 37
Transit Commission is dissolved as of that date. 38
SECTION 6.7. If Mecklenburg County creates a metropolitan public transportation 39
authority under Article 34 of Chapter 160A of the General Statutes, as enacted by Part V of this 40
act, then, notwithstanding G.S. 160A-910 as enacted by that Part, any service outside of the 41
territorial jurisdiction of the Authority that is offered as of the date that the Authority assumes 42
operational control of the assets of CATS may continue without the governing bodies of the 43
applicable political subdivisions granting approval by majority vote for the continuation of 44
service. 45
46
PART VII. REVENUE BO NDS FOR CITY OF CHAR LOTTE AND NEW 47
TRANSPORTATION AUTHORITY 48
SECTION 7.1. The definitions in G.S. 159-81 apply in this Part. 49
SECTION 7.2. In addition to the revenues included in G.S. 159-81(4), a 50
municipality may include as revenues the receipts from any sales and use tax or other local tax 51
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Page 16 Senate Bill 584-First Edition
received by a municipality in connection with its ownership and operation of a revenue bond 1
project or a utility or public service enterprise facility or system of which a revenue bond project 2
is a part as long as the pledge of such receipts does not constitute a pledge of the muni cipality's 3
taxing power. 4
SECTION 7.3. In addition to the powers provided in G.S. 159-83, a municipality 5
has the authority to finance and refinance the cost of public transportation systems, facilities, or 6
equipment with bonds or notes secured in one or more of the following ways: (i) by the revenues 7
of the public transportation systems, facilities, or equipment, (ii) by pledge, mortgage, or grant 8
of a security interest in all or a portion of the real and personal property, whether owned or leased, 9
comprising the public transportation systems, facilities, or equipment, and (iii) as otherwise 10
provided in Article 5 of Chapter 159 of the General Statutes. Notwithstanding anything in 11
G.S. 159-83(a) or otherwise in Article 5 of Chapter 159 of the General Statutes to the contrary, 12
each municipality may secure bonds or notes by a pledge of all or any portion of the revenues of 13
public transportation systems, facilities, or equipment without regard to meeting the expense and 14
maintenance and operation of and renewals a nd replacements with respect to the revenue bond 15
project. 16
SECTION 7.4. This Part applies only to cities with a population of greater than 17
870,000 according to the 2020 federal decennial census or any subsequent federal decennial 18
census and metropolitan pu blic transportation authorities created under Article 34 of Chapter 19
160A of the General Statutes, as enacted by Part V of this act. 20
21
PART VIII. CONFORMING CHANGES 22
SECTION 8.1. G.S. 40A-3(c) reads as rewritten: 23
"(c) Other Public Condemnors. – For the publi c use or benefit, the following political 24
entities shall possess the power of eminent domain and may acquire property by purchase, gift, 25
or condemnation for the stated purposes. 26
… 27
(14) A metropolitan public transportation authority established under Article 34 of 28
Chapter 160A of the General Statutes for the purposes of that Article." 29
SECTION 8.2. G.S. 105-164.14(c) reads as rewritten: 30
"(c) Certain Governmental Entities. – A governmental entity listed in this subsection is 31
allowed an annual refund of sales and use taxes paid by it under this Article on direct purchases 32
of items. Sales and use tax liability indirectly incurred by a governmental entity on building 33
materials, supplies, fixtures, and equipment that become a part of or annexed to any building or 34
structure that is owned or leased by the governmental entity and is being erected, altered, or 35
repaired for use by the governmental entity is considered a sales or use tax liability incurred on 36
direct purchases by the governmental entity for the purpose of this subsection. The refund 37
allowed under this subsection does not apply to purchases of electricity, telecommunications 38
service, ancillary service, piped natural gas, video programming, or a prepaid meal plan. A 39
request for a refund must be in writing an d must include any information and documentation 40
required by the Secretary. A request for a refund is due within six months after the end of the 41
governmental entity's fiscal year. 42
This subsection applies only to the following governmental entities: 43
… 44
(15) A regional public transportation authority created pursuant to Article 26 of 45
Chapter 160A of the General Statutes, a metropolitan public transportation 46
authority created pursuant to Article 34 of Chapter 160A of the General 47
Statutes, or a regional transportation authority created pursuant to Article 27 48
of Chapter 160A of the General Statutes. 49
…." 50
SECTION 8.3. G.S. 136-44.20(b1) reads as rewritten: 51
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Senate Bill 584-First Edition Page 17
"(b1) The Secretary may, subject to the appropriations made by the General Assembly for 1
any fiscal year, enter into State Full Funding Grant Agreements with a Regional Public 2
Transportation Authority (RPTA) duly created and existing pursuant to Article 26 of Chapter 3
160A, 160A of the General Statutes, a Regional Transportation Authority (RTA) duly created 4
and exis ting pursuant to Article 27 of Chapter 160A, 160A of the General Statutes, a 5
Metropolitan Public Transportation Authority (MPTA) duly created and existing pursuant to 6
Article 34 of Chapter 160A of the General Statutes , or a city organized under the laws of this 7
State as defined in G.S. 160A-1(2), to provide State matching funds for "new start" fixed 8
guideway projects in development by any entity pursuant to 49 U.S.C. § 5309. These grant 9
agreements shall be executable only upon an Authority's or city's completion of and the Federal 10
Transit Administration (FTA) approval of Preliminary Engineering and Environmental Impact 11
Studies in anticipation of federal funding pursuant to 49 U.S.C. § 5309. 12
Prior to executing State Full Funding Grant Agreements, the Secretary shall submit proposed 13
grant agreements or amendments to the Joint Legislative Transportation Oversight Committee 14
for review. The agreements, consistent with federal guidance, shall define the limits of the "new 15
starts" projects within the State, commit m aximum levels of State financial participation, and 16
establish terms and conditions of State financial participation. 17
State Full Funding Grant Agreements may provide for contribution of State funds in 18
multiyear allotments. The multiyear allotments shall be based upon the Department's estimates, 19
made in conjunction with an Authority or city, of the grant amount required for "new start" 20
project work to be performed in the appropriation fiscal year. 21
State funds may be used to fund fixed guideway projects developed without federal funding 22
by the Department, a Regional Public Transportation Authority (RPTA) duly created and existing 23
pursuant to Article 26 of Chapter 160A of the General Statutes, a Regional Transportation 24
Authority (RTA) duly created and existing pursuant to Article 27 of Chapter 160A of the General 25
Statutes, a Metropolitan Public Transportation Authority (MPTA) duly created and existing 26
pursuant to Article 34 of Chapter 160A of the General Statutes, or a unit of local government. In 27
addition, State funds may be used to pay administrative costs incurred by the Department while 28
participating in such fixed guideway projects." 29
SECTION 8.4. G.S. 136-44.27(e) and (f) read as rewritten: 30
"(e) Funds distributed by the Department under this section shall be used by counties, 31
public transportation authorities, metropolitan public transportation authorities, or regional 32
public transportation authorities in a manner consistent with transportation development plans 33
which have been approved by the Department and t he Board of County Commissioners. To 34
receive funds apportioned for a given fiscal year, a county shall have an approved transportation 35
development plan. Funds that are not obligated in a given fiscal year due to the lack of such a 36
plan will be distributed to the eligible counties based upon the distribution formula prescribed by 37
subsection (d) of this section. 38
(f) A regional public transportation authority created pursuant to Article 25 or Article 26 39
of Chapter 160A of the General Statutes and a metropolita n public transportation authority 40
created under Article 34 of Chapter 160A of the General Statutes may, upon written agreement 41
with the municipalities served by a public transportation authority authority, county served by 42
the metropolitan public transport ation authority, or counties served by the regional public 43
transportation authority, apply for and receive any funds to which the member municipality or 44
counties are entitled to receive based on the distribution formula set out in subsection (d) of this 45
section." 46
SECTION 8.5. G.S. 143-129(h) reads as rewritten: 47
"(h) Transportation Authority Purchases. – Notwithstanding any other provision of this 48
section, any board or governing body of any regional public transportation authority, hereafter 49
referred to as a "RPTA," created pursuant to Article 26 of Chapter 160A of the General Statutes, 50
or a regional transportation authority, hereafter referred to as a "RTA," created pursuant to Article 51
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27 of Chapter 160A of the General Statutes, or a metropolitan public transportation authority, 1
hereafter referred to as a "MPTA," created pursuant to Article 34 of Chapter 160A of the General 2
Statutes may approve the entering into of any contract for the purchase, lease, or other acquisition 3
of any apparatus, supplies, materials, or equipment without competitive bidding and without 4
meeting the requirements of subsection (b) of this section if the following procurement by 5
competitive proposal (Request for Proposal) method is followed. 6
The competitive proposal method of procurement is normally conducted with more than one 7
source submitting an offer or proposal. Either a fixed price or cost reimbursement type contract 8
is awarded. This method of procurement is generally used when conditions are not approp riate 9
for the use of sealed bids. If this procurement method is used, all of the following requirements 10
apply: 11
(1) Requests for proposals shall be publicized. All evaluation factors shall be 12
identified along with their relative importance. 13
(2) Proposals shall be solicited from an adequate number of qualified sources. 14
(3) RPTAs or RTAs RPTAs, RTAs, or MPTAs shall have a method in place for 15
conducting technical evaluations of proposals received and selecting 16
awardees, with the goal of promoting fairness and c ompetition without 17
requiring strict adherence to specifications or price in determining the most 18
advantageous proposal. 19
(4) The award may be based upon initial proposals without further discussion or 20
negotiation or, in the discretion of the evaluators, dis cussions or negotiations 21
may be conducted either with all offerors or with those offerors determined to 22
be within the competitive range, and one or more revised proposals or a best 23
and final offer may be requested of all remaining offerors. The details and 24
deficiencies of an offeror's proposal may not be disclosed to other offerors 25
during any period of negotiation or discussion. 26
(5) The award shall be made to the responsible firm whose proposal is most 27
advantageous to the RPTA's or the RTA's RPTAs, RTAs, or MPTAs program 28
with price and other factors considered. 29
The contents of the proposals shall not be public records until 14 days before the award of 30
the contract. 31
The board or governing body of the RPTA or the RTA RPTA, the RTA, or the MPTA shall, 32
at the regularly scheduled meeting, by formal motion make findings of fact that the procurement 33
by competitive proposal (Request for Proposals) method of procuring the particular apparatus, 34
supplies, materials, or equipment is the most appropriate acquisition method prior to the issuance 35
of the requests for proposals and shall by formal motion certify that the requirements of this 36
subsection have been followed before approving the contract. 37
Nothing in this subsection subjects a procurement by competitive proposal un der this 38
subsection to G.S. 143-49, 143-52, or 143-53. 39
RPTAs and RTAs RPTAs, RTAs, and MPTAs may adopt regulations to implement this 40
subsection." 41
SECTION 8.6. G.S. 143-157.1(d) reads as rewritten: 42
"(d) Reporting by Local Units of Government. – By September 1 of each year and with 43
regard to each local board listed in this subsection, the information required by subsection (b) of 44
this section shall be submitted on behalf of the appointing authority to the Secretary of State by 45
the clerk of that appoi nting authority. Appointments to each of the following local boards, 46
whether established by State law or local decision, or appointments to those local boards having 47
equivalent functions, however named or denominated, must be reported: 48
… 49
(26) A public tran sportation authority created pursuant to Article 25 of Chapter 50
160A of the General Statutes, a regional public transportation authority 51
General Assembly Of North Carolina Session 2025
Senate Bill 584-First Edition Page 19
created pursuant to Article 26 of Chapter 160A of the General Statutes, or a 1
regional transportation authority created p ursuant to Article 27 of Chapter 2
160A of the General Statutes.Statutes, or a metropolitan public transportation 3
authority created pursuant to Article 34 of Chapter 160A of the General 4
Statutes. 5
…." 6
SECTION 8.7. G.S. 153A-148.1(a) reads as rewritten: 7
"(a) Disclosure Prohibited. – Notwithstanding Chapter 132 of the General Statutes or any 8
other law regarding access to public records, local tax records that contain information about a 9
taxpayer's income or receipts are not public records. A current or former o fficer, employee, or 10
agent of a county who in the course of service to or employment by the county has access to 11
information about the amount of a taxpayer's income or receipts may not disclose the information 12
to any other person unless the disclosure is made for one of the following purposes: 13
… 14
(4) To exchange information with a regional public transportation authority or 15
authority, a regional transportation authority, or a metropolitan public 16
transportation authority, created pursuant to Article 26 or 26, Article 27, or 17
Article 34 of Chapter 160A of the General Statutes, when the information is 18
needed to fulfill a duty imposed on the authority or on the county. 19
…." 20
SECTION 8.8. G.S. 159-48(e) reads as rewritten: 21
"(e) Each sanitary district, mosquito control district, hospital district, merged school 22
administrative unit described in G.S. 115C-513, metropolitan sewerage district, metropolitan 23
water district, metropolitan water and sewerage district, county water and sewer district, regional 24
public transportation authority, metropolitan public transportation authority, and special airport 25
district may borrow money and issue its bonds under this Article in evidence thereof for the 26
purpose of paying any capital costs of any one or more of the purposes for which it is authorized, 27
by general laws uniformly applicable throughout the State, to raise or appropriate money, except 28
for current expenses." 29
SECTION 8.9. G.S. 159-81 reads as rewritten: 30
"§ 159-81. Definitions. 31
The words and phrases defined in this sect ion shall have the meanings indicated when used 32
in this Article: 33
(1) "Municipality" means a county, city, town, incorporated village, sanitary 34
district, metropolitan sewerage district, metropolitan water district, 35
metropolitan water and sewerage district, county water and sewer district, 36
water and sewer authority, hospital authority, hospital district, parking 37
authority, special airport district, special district created under Article 43 of 38
Chapter 105 of the General Statutes, regional public transportation authority, 39
regional transportation authority, metropolitan public transportation authority, 40
regional natural gas district, regional sports authority, airport authority, joint 41
agency created pursuant to Part 1 of Article 20 of Chapter 160A of the General 42
Statutes, a joint agency authorized by agreement between two cities to operate 43
an airport pursuant to G.S. 63-56, the North Carolina Turnpike Authority 44
described in Article 6H of Chapter 136 of the General Statutes and transferred 45
to the Department of Trans portation pursuant to G.S. 136-89.182(b), and a 46
Ferry Transportation Authority created pursuant to Article 29 of Chapter 47
160A of the General Statutes, but not any other forms of State or local 48
government. 49
…." 50
SECTION 8.10. G.S. 160A-20(h) reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 584-First Edition
"(h) Local Government Defined. – As used in this section, the term "unit of local 1
government" means any of the following: 2
… 3
(11) A regional public transportation authority or authority, a regional 4
transportation authority, or a metropolitan public tran sportation authority 5
created pursuant to Article 26 or 26, Article 27, or Article 34 of this Chapter. 6
…." 7
8
PART IX. MISCELLANEOUS PROVISIONS 9
SECTION 9.1. It is the intent of the General Assembly not to reduce transportation 10
funding allocations for any municipality in Mecklenburg County as a result of the enactment of 11
this act or the levy of a tax under the provisions of Senate Bill 145 of the 2025 General Assembly, 12
if that bill becomes law. In addition, it is the intent of the General Assembly not to reduce State 13
transportation funding for State projects located in Mecklenburg County as a result of the 14
enactment of this act or the levy of a tax under the p rovisions of Senate Bill 145 of the 2025 15
General Assembly, if that bill becomes law. Without specific authorization from the General 16
Assembly, the Department of Transportation may not reduce funding for any transportation 17
projects as a result of this act or the levy of a tax pursuant to the provisions of Senate Bill 145 of 18
the 2025 General Assembly, if that bill becomes law. 19
SECTION 9.2. This act becomes effective only if Senate Bill 145 of the 2025 20
General Assembly becomes law. Except as otherwise provided, this act is effective when Senate 21
Bill 145 of the 2025 General Assembly becomes law. 22