§ 136-176. Creation, revenue sources, and purpose of North Carolina Highway Trust Fund. - North Carolina Statutes

§ 136‑176.  Creation,revenue sources, and purpose of North Carolina Highway Trust Fund.

(a)        A special account,designated the North Carolina Highway Trust Fund, is created within the Statetreasury. The Trust Fund consists of the following revenue:

(1)        Motor fuel,alternative fuel, and road tax revenue deposited in the Fund under G.S. 105‑449.125,105‑449.134, and 105‑449.43, respectively.

(2)        Motor vehicle usetax deposited in the Fund under G.S. 105‑187.9.

(3)        Revenue from thecertificate of title fee and other fees payable under G.S. 20‑85.

(4)        Repealed by SessionLaws 2001‑424, s. 27.1.

(5)        Interest and incomeearned by the Fund.

(a1)      The Department shalluse two hundred twenty million dollars ($220,000,000) in fiscal year 2001‑2002,two hundred twelve million dollars ($212,000,000) in fiscal year 2002‑2003,and two hundred fifty‑five million dollars ($255,000,000) in fiscal year2003‑2004 of the cash balance of the Highway Trust Fund for the followingpurposes:

(1)        For primary routepavement preservation. – One hundred seventy million dollars ($170,000,000) infiscal year 2001‑2002, and one hundred fifty million dollars($150,000,000) in each of the fiscal years 2002‑2003 and 2003‑2004.Up to ten percent (10%) of the amount for each of the fiscal years 2001‑2002,2002‑2003, and 2003‑2004 is available in that fiscal year, at thediscretion of the Secretary of Transportation, for:

a.         Highway improvementprojects that further economic growth and development in small urban and ruralareas, that are in the Transportation Improvement Program, and that areindividually approved by the Board of Transportation; or

b.         Highway improvementsthat further economic development in the State and that are individuallyapproved by the Board of Transportation.

(2)        For preliminaryengineering costs not included in the current year Transportation ImprovementProgram. – Fifteen million dollars ($15,000,000) in each of the fiscal years2001‑2002, 2002‑2003, and 2003‑2004. If any funds allocatedby this subdivision, in the cash balance of the Highway Trust Fund, remainunspent on June 30, 2008, the Department may transfer within the Department upto twenty‑nine million dollars ($29,000,000) of available funds tocontract for freight transportation system improvements for the Global TransPark.

(3)        For computerizedtraffic signal systems and signal optimization projects. – Fifteen milliondollars ($15,000,000) in each of the fiscal years 2001‑2002, 2002‑2003,and 2003‑2004.

(4)        For publictransportation twenty million dollars ($20,000,000) in fiscal year 2001‑2002,twenty‑five million dollars ($25,000,000) in fiscal year 2002‑2003,and seventy‑five million dollars ($75,000,000) in fiscal year 2003‑2004.

(5)        For small urbanconstruction projects. – Seven million dollars ($7,000,000) in fiscal year 2002‑2003.

Funds authorized for use by theDepartment pursuant to this subsection shall remain available to the Departmentuntil expended.

(a2)      Repealed by SessionLaws 2002‑126, s. 26.4(b), effective July 1, 2002.

(a3)      The Department mayobligate three hundred million dollars ($300,000,000) in fiscal year 2003‑2004and four hundred million dollars ($400,000,000) in fiscal year 2004‑2005of the cash balance of the Highway Trust Fund for the following purposes:

(1)        Six hundred thirtymillion dollars ($630,000,000) for highway system preservation, modernization,and maintenance, including projects to enhance safety, reduce congestion,improve traffic flow, reduce accidents, upgrade pavement widths and shoulders,extend pavement life, improve pavement smoothness, and rehabilitate or replacedeficient bridges; and for economic development transportation projectsrecommended by local officials and approved by the Board of Transportation.

(2)        Seventy milliondollars ($70,000,000) for regional public transit systems, rural and urbanpublic transportation system facilities, regional transportation and airquality initiatives, rail system track improvements and equipment, and otherferry, bicycle, and pedestrian improvements. For any project or program listedin this subdivision for which the Department receives federal funds, use offunds pursuant to this subdivision shall be limited to matching those funds.

Funds authorized for obligationand use by the Department pursuant to this subsection shall remain available tothe Department until expended.

(a4)      Project selectionpursuant to subsection (a3) of this section shall be based on identified anddocumented need. Funds expended pursuant to subdivision (1) of subsection (a3)of this section shall be distributed in accordance with the distributionformula in G.S. 136‑17.2A. No funds shall be expended pursuant tosubsection (a3)(1) of this section on any project that does not meet Departmentof Transportation standards for road design, materials, construction, andtraffic flow.

(a5)      The Department shallreport to the Joint Legislative Transportation Oversight Committee, on orbefore September 1, 2003, on its intended use of funds pursuant to subsection(a3) of this section. The Department shall report to the Joint TransportationAppropriations Subcommittee, on or before May 1, 2004, on its actual currentand intended future use of funds pursuant to subsection (a3) of this section.The Department shall certify to the Joint Legislative Transportation OversightCommittee each year, on or before November 1, that use of the Highway TrustFund cash balances for the purposes listed in subsection (a3) of this sectionwill not adversely affect the delivery schedule of any Highway Trust Fundprojects. If the Department cannot certify that the full amounts authorized insubsection (a3) of this section are available, then the Department maydetermine the amount that can be used without adversely affecting the deliveryschedule and may proportionately apply that amount to the purposes set forth insubsection (a3) of this section.

(b)        Funds in the TrustFund are annually appropriated to the Department of Transportation to beallocated and used as provided in this subsection. A sum, not to exceed fourand eight‑tenths percent (4.8%) of the amount of revenue deposited in theTrust Fund under subdivisions (a)(1), (2), and (3) of this section may be usedeach fiscal year by the Department for expenses to administer the Trust Fund.Operation and project development costs of the North Carolina TurnpikeAuthority are eligible administrative expenses under this subsection. Any fundsallocated to the Authority pursuant to this subsection shall be repaid by theAuthority from its toll revenue as soon as possible, subject to anyrestrictions included in the agreements entered into by the Authority inconnection with the issuance of the Authority's revenue bonds. Beginning oneyear after the Authority begins collecting tolls on a completed TurnpikeProject, interest shall accrue on any unpaid balance owed to the Highway TrustFund at a rate equal to the State Treasurer's average annual yield on itsinvestment of Highway Trust Fund funds pursuant to G.S. 147‑6.1. Interestearned on the unpaid balance shall be deposited in the Highway Trust Fund uponrepayment. The sum up to the amount anticipated to be necessary to meet theState matching funds requirements to receive federal‑aid highway trustfunds for the next fiscal year may be set aside for that purpose. The rest ofthe funds in the Trust Fund shall be allocated and used as follows:

(1)        Sixty‑one andninety‑five hundredths percent (61.95%) to plan, design, and constructprojects on segments or corridors of the Intrastate System as described in G.S.136‑178 and to pay debt service on highway bonds and notes that areissued under the State Highway Bond Act of 1996 and whose proceeds are appliedto these projects.

(2)        Twenty‑fiveand five hundredths percent (25.05%) to plan, design, and construct the urbanloops described in G.S. 136‑180 and to pay debt service on highway bondsand notes that are issued under the State Highway Bond Act of 1996 and whoseproceeds are applied to these urban loops.

(3)        Six and one‑halfpercent (6.5%) to supplement the appropriation to cities for city streets underG.S. 136‑181.

(4)        Six and one‑halfpercent (6.5%) for secondary road construction as provided in G.S. 136‑182and to pay debt service on highway bonds and notes that are issued under theState Highway Bond Act of 1996 and whose proceeds are applied to secondary roadconstruction.

The Department must administerfunds allocated under subdivisions (1), (2), and (4) of this subsection in amanner that ensures that sufficient funds are available to make the debtservice payments on bonds issued under the State Highway Bond Act of 1996 asthey become due.

(b1)      The Secretary mayauthorize the transfer of funds allocated under subdivisions (1) through (4) ofsubsection (b) of this section to other projects that are ready to be let andwere to be funded from allocations to those subdivisions. The Secretary shallensure that any funds transferred pursuant to this subsection are repaidpromptly and in any event in no more than four years. The Secretary shallcertify, prior to making any transfer pursuant to this subsection, that thetransfer will not affect the delivery schedule of Highway Trust Fund projectsin the current Transportation Improvement Program. No transfers shall beallowed that do not conform to the applicable provisions of the equity formulafor distribution of funds, G.S. 136‑17.2A. If the Secretary authorizes atransfer pursuant to this subsection, the Secretary shall report that decisionto the next regularly scheduled meetings of the Joint Legislative Commission onGovernmental Operations, the Joint Legislative Transportation OversightCommittee, and to the Fiscal Research Division.

(b2)      (Effective untilJuly 1, 2010) There is annually appropriated to the North Carolina TurnpikeAuthority from the Highway Trust Fund the sum of sixty‑four milliondollars ($64,000,000). Of the amount allocated by this subsection, twenty‑fivemillion dollars ($25,000,000) shall be used to pay debt service or relatedfinancing costs and expenses on revenue bonds or notes issued for theconstruction of the Triangle Expressway, twenty‑four million dollars($24,000,000) shall be used to pay debt service or related financing expenseson revenue bonds or notes issued for the construction of the MonroeConnector/Bypass, and fifteen million dollars ($15,000,000) shall be used topay debt service or related financing expenses on revenue bonds or notes issuedfor the construction of the Mid‑Currituck Bridge. The amountsappropriated to the Authority pursuant to this subsection shall be used by theAuthority to pay debt service or related financing costs and expenses onrevenue bonds or notes issued by the Authority to finance the costs of one ormore Turnpike Projects, to refund such bonds or notes, or to fund debt servicereserves, operating reserves, and similar reserves in connection therewith. Theappropriations established by this subsection constitute an agreement by theState to pay the funds appropriated hereby to the Authority within the meaningof G.S. 159‑81(4). Notwithstanding the foregoing, it is the intention ofthe General Assembly that the enactment of this provision and the issuance ofbonds or notes by the Authority in reliance thereon shall not in any mannerconstitute a pledge of the faith and credit and taxing power of the State, andnothing contained herein shall prohibit the General Assembly from amending theappropriations made in this subsection at any time to decrease or eliminate theamount annually appropriated to the Authority. Funds transferred from theHighway Trust Fund to the Authority pursuant to this subsection are not subjectto the equity formula in G.S. 136‑17.2A.

(b2)      (Effective July1, 2010) There is annually appropriated to the North Carolina TurnpikeAuthority from the Highway Trust Fund the sum of  ninety‑nine milliondollars ($99,000,000). Of the amount allocated by this subsection, twenty‑fivemillion dollars ($25,000,000) shall be used to pay debt service or relatedfinancing costs and expenses on revenue bonds or notes issued for theconstruction of the Triangle Expressway, twenty‑four million dollars($24,000,000) shall be used to pay debt service or related financing expenseson revenue bonds or notes issued for the construction of the MonroeConnector/Bypass, fifteen million dollars ($15,000,000) shall be used to paydebt service or related financing expenses on revenue bonds or notes issued forthe construction of the Mid‑Currituck Bridge, and thirty‑fivemillion dollars ($35,000,000) shall be used to pay debt service or relatedfinancing expenses on revenue bonds or notes issued for the construction of theGarden Parkway. The amounts appropriated to the Authority pursuant to thissubsection shall be used by the Authority to pay debt service or relatedfinancing costs and expenses on revenue bonds or notes issued by the Authorityto finance the costs of one or more Turnpike Projects, to refund such bonds ornotes, or to fund debt service reserves, operating reserves, and similarreserves in connection therewith. The appropriations established by thissubsection constitute an agreement by the State to pay the funds appropriatedhereby to the Authority within the meaning of G.S. 159‑81(4).Notwithstanding the foregoing, it is the intention of the General Assembly thatthe enactment of this provision and the issuance of bonds or notes by theAuthority in reliance thereon shall not in any manner constitute a pledge ofthe faith and credit and taxing power of the State, and nothing containedherein shall prohibit the General Assembly from amending the appropriationsmade in this subsection at any time to decrease or eliminate the amountannually appropriated to the Authority. Funds transferred from the HighwayTrust Fund to the Authority pursuant to this subsection are not subject to theequity formula in G.S. 136‑17.2A.

(c)        If funds arereceived under 23 U.S.C. Chapter 1, Federal‑Aid Highways, for a projectfor which funds in the Trust Fund may be used, the amount of federal fundsreceived plus the amount of any funds from the Highway Fund that were used tomatch the federal funds may be transferred by the Secretary of Transportationfrom the Trust Fund to the Highway Fund and used for projects in theTransportation Improvement Program.

(d)        A contract may belet for projects funded from the Trust Fund in anticipation of revenuespursuant to the cash‑flow provisions of G.S. 143C‑6‑11 onlyfor the two bienniums following the year in which the contract is let.  (1989, c. 692, s. 1.1; c.770, ss. 68.2, 74.6; 1989 (Reg. Sess., 1990), c. 1024, s. 46(a), (b); 1991, c.193, s. 9; c. 280, s. 1; c. 689, s. 62; 1995, c. 390, s. 27; 1995 (Reg. Sess.,1996), c. 590, s. 6; 1996, 2nd Ex. Sess., c. 18, s. 19.4(a); 1998‑212, s.27.2; 1999‑237, s. 27.1; 2000‑140, s. 31; 2001‑424, ss. 27.1,27.23(d), 27.23(e), 27.23(f); 2002‑126, ss. 26.4(a), 26.4(b), 26.9(b);2002‑133, s. 3; 2002‑159, s. 41.5; 2003‑284, ss. 29.4, 29.22;2003‑383, ss. 1, 2, 3; 2004‑124, ss. 30.3(a), (b), 30.21(b); 2006‑203,s. 78; 2007‑323, s. 27.17; 2008‑107, ss. 25.1, 25.5(b), (d), (f),25.15; 2009‑56, s. 1.)