GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
H	1
HOUSE BILL 644
     

 
Short Title:	Toll Road and Bridge Authority Created.	()	
Sponsors:	Representatives Crawford;  Bowie and Cole.	
Referred to:	Transportation.	
March 15, 2001

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE PUBLIC TOLL ROADS AND BRIDGES IN NORTH CAROLINA AND THE CREATION OF A TURNPIKE AUTHORITY.

The General Assembly of North Carolina enacts:
SECTION 1.  Article 6F of Chapter 136 of the General Statutes is repealed.
SECTION 2.  Chapter 136 of the General Statutes is amended by adding a new Article to read:
"Article 6H. 
"Public Toll Roads and Bridges.
"§ 136-89.180.  Legislative findings.
The General Assembly finds that the existing State road system is becoming increasingly congested and overburdened with traffic in many areas of the State; that the sharp surge of vehicle miles traveled is overwhelming the State’s ability to build and pay for adequate road improvements; and that an adequate answer to this challenge will require the State to be innovative and utilize several new approaches to transportation improvements in North Carolina. 
Toll funding of highway construction is feasible in North Carolina and can contribute to addressing the critical transportation needs of the State. A toll program can speed the implementation of needed transportation improvements by funding some projects with tolls. 
"§ 136-89.181.  Definitions.
The following definitions apply to this Article:
(1)	"Turnpike authority" means the public agency created by this Article.
(2)	"Turnpike authority board" means the governing board of the Turnpike Authority.
(3)	"Turnpike project" means any part of the State highway system, including primary and secondary roads, bridges, tunnels, feeder roads and approaches, and converted free highways and other facilities.
(4)	"Turnpike system" means collectively all Turnpike Projects developed under this Article.
"§ 136-89.182.  North Carolina Turnpike Authority.
(a)	Creation. -- There is created a body politic and corporate to be known as the “North Carolina Turnpike Authority.”  The Authority is constituted as a public agency, and the exercise by the Authority of the powers conferred by this Article in the construction, operation, and maintenance of toll roads and bridges shall be deemed and held to be the performance of an essential governmental function. 
(b)	Administrative Placement. -- The Authority shall be located within the Department of Transportation for administrative purposes but shall exercise all of its powers independently of the Department of Transportation except as otherwise specified in this Article.
(c)	Board of Directors. -- The North Carolina Turnpike Authority shall be governed by a seven-member Board of Directors consisting of the Secretary of Transportation, who shall serve as chairman of the Authority Board, and six members who shall be appointed by the Governor, at least three of whom shall reside in metropolitan areas.
(d)	Board of Transportation Members. -- Not more than two members of the North Carolina Board of Transportation, in addition to the Secretary of Transportation, may serve as members of the Authority Board.
(e)	Staggered Terms. -- The initial appointments by the Governor to the Authority Board shall consist of two members appointed to terms ending January 14, 2003, two members appointed to terms ending January 14, 2005, and two members appointed to terms ending January 14, 2007.
Thereafter, at the expiration of each stipulated term of office, all appointments shall be to a term of six years from the date of the expiration of the term. 
(f)	Vacancies. -- All members of the Authority Board shall remain in office until their successors are appointed and qualify. The Governor may appoint a member to serve out the unexpired term of any Board member.
(g)	Removal of Board Members. -- Each appointed member of the Authority Board, notwithstanding subsection (e) of this section, shall serve at the pleasure of the Governor.
(h)	Conflicts of Interest, Ethics, etc. -- Members of the Authority Board shall be subject to provisions of G.S. 136-13, 136-13.1, and 136-14.
(i)	Compensation. -- The appointed members of the Authority Board shall receive no salary for their services but shall be entitled to receive per diem and travel allowances in accordance with the provisions of G.S. 138‑5 and G.S. 138-6 as appropriate. 
(j)	Bylaws. -- The Authority Board shall adopt bylaws with respect to the calling of meetings, quorums, voting procedures, the keeping of records, and other organizational, staffing, and administrative matters as the Authority Board may determine. 
(k)	Executive Director and Other Employees. -- The Authority Board shall appoint an Executive Director, whose salary shall be fixed by the Authority, to serve at its pleasure.
The Executive Director shall be the Authority’s chief administrative officer and shall be responsible for the daily administration of the toll roads and bridges constructed, maintained, or operated pursuant to this Article.
The Executive Director or his designee shall appoint, employ, dismiss, and within the limits approved by the Authority Board, fix the compensation of such other employees as he deems necessary to carry out this Article.
(l)	Office. -- The offices of the Authority may be housed in one or more facilities of the Department of Transportation. 
"§ 136‑89.183. Powers of the Authority.
(a)	The Authority shall have all of the powers necessary to execute the provisions of this Article including the following powers: 
(1)	The powers of a corporate body, including the power to sue and be sued, to make contracts, to adopt and use a common seal, and to alter the adopted seal as needed. 
(2)	To study, plan, develop, design, establish, purchase, construct, operate, and maintain a Turnpike Project, either on its own initiative or at the request of the Board of Transportation.
(3)	To rent, lease, purchase, acquire, own, encumber, dispose of, or mortgage real or personal property, including the power to acquire property by eminent domain pursuant to G.S. 136-89.184. 
(4)	To fix, revise, charge, and collect tolls and fees for the use of the Turnpike Authority.
(5)	To issue bonds or notes of the Authority as provided in this Article. 
(6)	To establish, construct, purchase, maintain, equip, and operate any structure or facilities associated with the Turnpike System. 
(7)	To pay all necessary costs and expenses in the formation, organization, administration, and operation of the Authority. 
(8)	To apply for, accept, and administer loans and grants of money or real or personal property from any federal agency, from the State or its political subdivisions, local government, or from any other public or private sources available. 
(9)	To adopt, alter, or repeal its own bylaws or rules implementing the provisions of this Article. 
(10)	To employ consulting engineers, architects, attorneys, real estate counselors, appraisers, and other consultants and employees as may be required in the judgment of the Authority and to fix and pay their compensation from funds available to the Authority.
(11)	To select and retain financial consultants, underwriters, and bond attorneys in connection with the issuance of any bonds and to pay for their services out of the proceeds of any bond issue for which their services were performed. 
(12)	To execute financing agreements, security documents, and other instruments necessary in exercising its power under this Article.
(13)	To receive and use appropriations from the State.
(14)	To adopt procedures to govern its procurement of services and delivery of Turnpike Projects.
(15)	To perform or procure any portion of services required by the Authority.
(16)	To use officers, employees, agents, and facilities of the Department of Transportation for the purposes and upon the terms as may be mutually agreeable.
(17)	To contract for the construction, maintenance, and operation of a Turnpike Project.
(18)	To expend such funds as it deems necessary to enter into partnership agreements with political subdivisions of the State, or with private entities, for the purpose of financing the cost of acquiring, constructing, equipping, operating, or maintaining any Turnpike Project. 
(b)	To execute the powers provided in subsection (a) of this section, the Authority shall determine its policies by majority vote of the members of the Authority present and voting, a quorum having been established. Once a policy is established, the Authority Board shall communicate it to the Executive Director, who shall have the sole and exclusive authority to execute the policy of the Authority. No member of the Authority Board shall have the responsibility or authority to give operational directives to any employee of the Authority other than the Executive Director. 
"§ 136‑89.184.  Acquisition of real property.
(a)	General. -- The Authority may acquire public or private real property by purchase, negotiation, gift, or devise, or condemnation that it determines to be necessary and convenient for the construction, expansion, enlargement, extension, improvement, or operation of a Turnpike Project. When the Authority acquires real property owned by the State, the Secretary of the Department of Administration shall execute and deliver to the Authority a deed transferring fee simple title to the property to the Authority. 
(b)	Condemnation. -- To exercise the power of eminent domain, the Authority shall commence a proceeding in its name and shall follow the procedure set forth in Article 9 of Chapter 136 of the General Statutes. 
"§ 136-89.185.  Taxation of property of Authority.
Property owned by the Authority is exempt from taxation in accordance with Section 2 of Article V of the North Carolina Constitution.
"§ 136-89.186.  Audit.
The operations of the Authority shall be subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes. 
"§ 136-89.187.  Conversion of free highways.
The Authority Board, with the concurrence of the Board of Transportation, may convert a segment of the non-tolled State highway system to a toll facility if that conversion is the most feasible and economic means to accomplish a desired expansion or extension improvements to the State highway system.
"§ 136-89.188.  Tolls on converted highways.
The Authority Board may impose a toll for travel over existing non-tolled State highways if converted to a toll facility consistent with this Article.
"§ 136-89.189.  Use of surplus revenues.
The Authority Board may authorize the use of surplus revenue of the Turnpike System to pay the costs of other Turnpike Projects or for any other lawful purpose consistent with this Article.
"§ 136-89.190.  Lease, sale, or conveyance of Turnpike Projects.
The Authority may lease, sell, grant a concession or franchise, or otherwise convey all or a portion of the Turnpike System to another governmental or private entity, if such conveyance is in the best interest of the State.
"§ 136-89.191.  Turnpike Authority revenue bonds.
(a)	The Authority Board, in cooperation with the Department of State Treasurer, by the adoption of a bond resolution, may authorize the issuance of bonds to pay all or a portion of the cost of a Turnpike Project or to refund any previously issued bonds.
(b)	The Authority may sell bonds at public or private sale in a manner and for a price it determined to be in the best interest of the Authority.
(c)	The Authority may sell bonds secured by a lien on the revenues of the Turnpike System or a Turnpike Project.
(d)	The Authority may sell bonds secured by lien of revenues subordinate to the lien of other bonds.
(e)	The Authority may execute a revenue bond indenture or other similar agreement with bondholders in a form and with such covenants and provisions it finds to be in the best interest of the Authority.
"§ 136-89.192.  Payment of bonds; State credit not pledged.
Bonds issued by the Authority under this Article shall not be deemed to constitute a debt of the State of North Carolina or a pledge of the full faith and credit of the State.
"§ 136-89.193.  Cost participation by Department of Transportation.
The Department of Transportation may participate in the cost of preconstruction activities, construction, maintenance, or operation of a Turnpike Project.
"§ 136-89.194.  Equity distribution formula.
Only those funds applied to a Turnpike Project from the State Highway Fund, State Highway Trust Fund, or federal-aid funds that might otherwise be used for other roadway projects within the State, and are otherwise already subject to the distribution formula under G.S. 136‑17.2A, shall be included in the distribution formula.
Other revenue from the sale of bonds, project loans, or toll collections shall not be included in the distribution formula. 
"§ 136‑89.195.  Annual plan of work; annual and quarterly reports. 
(a)	Annual Plan of Work. -- The Authority shall annually develop a plan of work for the fiscal year, describing the activities and projects to be undertaken, accompanied by a budget. This annual plan of work shall be subject to the concurrence of the Board of Transportation.
(b)	Annual Reports. -- The Authority shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding year to the Governor, the General Assembly, and the Department of Transportation. Each report shall be accompanied by an audit of its books and  accounts. 
(c)	Quarterly Reports. -- The Authority shall submit quarterly reports to the Joint Legislative Transportation Oversight Committee. The reports shall summarize the Authority’s activities during the quarter and contain any information about the Authority’s activities that is requested by the Committee. 
"§ 136-89.196.  Laws applicable to the Authority; exceptions.
(a)	Motor Vehicle Laws. -- The Turnpike System shall be considered a “highway” as defined in G.S. 20‑4.01(13) and a “public vehicular area” as defined in G.S. 20‑4.01(32). All law enforcement and emergency personnel, including the State Highway Patrol and the Division of Motor Vehicles, shall have the same powers and duties on the Turnpike System as on any other highway or public vehicular area. 
(b)	Purchases of Supplies, Material, Equipment, and Building Contracts. -- For the purposes of implementing this Article, the Authority is exempted from the provisions of G.S. 136-28.1 and G.S. 136-28.4 and Articles 3 and 8 of Chapter 143 of the General Statutes and all rules associated with those provisions."
SECTION 3.  Chapter 20 of the General Statutes is amended to add a new section to read:
"§ 20-158.2. Control of vehicles on Turnpike System.
The North Carolina Turnpike Authority may control vehicles at appropriate places by erecting traffic control devices to collect tolls.
Failure to pay a proper toll, as evidenced by a traffic control photographic system or other enforcement mechanism, is a noncriminal violation for which a civil penalty set by the Turnpike Authority shall be assessed." 
SECTION 4.   G.S. 136‑176(b) reads as rewritten:
"(b)	Funds in the Trust Fund are annually appropriated to the Department of Transportation to be allocated and used as provided in this subsection. A sum, not to exceed four and one‑half percent (4.5%) of the amount of revenue deposited in the Trust Fund under subdivisions (a)(1), (2), and (3) of this section, may be used each fiscal year by the Department for expenses to administer the Trust Fund. Operation of the North Carolina Turnpike Authority is an eligible administrative expense under this subsection. The rest of the funds in the Trust Fund shall be allocated and used as follows:
(1)	Sixty‑one and ninety‑five hundredths percent (61.95%) to plan, design, and construct the projects of the Intrastate System described in G.S. 136‑179 and to pay debt service on highway bonds and notes that are issued under the State Highway Bond Act of 1996 and whose proceeds are applied to these projects.
(2)	Twenty‑five and five hundredths percent (25.05%) to plan, design, and construct the urban loops described in G.S. 136‑180 and to pay debt service on highway bonds and notes that are issued under the State Highway Bond Act of 1996 and whose proceeds are applied to these urban loops.
(3)	Six and one‑half percent (6.5%) to supplement the appropriation to cities for city streets under G.S. 136‑181.
(4)	Six and one‑half percent (6.5%) for secondary road construction as provided in G.S. 136‑182 and to pay debt service on highway bonds and notes that are issued under the State Highway Bond Act of 1996 and whose proceeds are applied to secondary road construction.
The Department must administer funds allocated under subdivisions (1), (2), and (4) of this subsection in a manner that ensures that sufficient funds are available to make the debt service payments on bonds issued under the State Highway Bond Act of 1996 as they become due."
SECTION 5.  G.S. 126‑5 is amended by adding a new subdivision to read:
"(c1)	Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:
…
(21)	Employees of the North Carolina Turnpike Authority."
SECTION 6.  G.S. 120‑123 is amended by adding a new subdivision to read:
"§ 120‑123.  Service by members of the General Assembly on certain boards and commissions.
No member of the General Assembly may serve on any of the following boards or commissions:
…
(75)	The North Carolina Turnpike Authority."
SECTION 7.  This act is effective when it becomes law.