A BILL TO BE ENTITLED
AN ACT TO REPEAL THE ANNUAL TRANSFER OF HIGHWAY USE TAX COLLECTIONS FROM THE HIGHWAY TRUST FUND TO THE GENERAL FUND AND TO PROVIDE THAT THOSE FUNDS SHALL BE USED BY THE DEPARTMENT OF TRANSPORTATION FOR HIGHWAY MAINTENANCE.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.9 reads as rewritten:
"§ 105‑187.9.  Disposition of tax proceeds.
(a)	Distribution. – Taxes collected under this Article at the rate of eight percent (8%) shall be credited to the General Fund. Taxes collected under this Article at the rate of three percent (3%) shall be credited to the North Carolina Highway Trust Fund. 
(a1)	In the 2002-2003 fiscal year the State Treasurer shall transfer the sum of three hundred fifty-two million dollars ($352,000,000) of the taxes credited to the North Carolina Highway Trust Fund to the General Fund to aid in balancing the 2002-2003 budget as recommended by the Governor. The transfer of funds authorized by this subsection is subject to the availability of tax revenues collected. Upon the repeal of subsection (b) of this section, no funds shall be transferred from the North Carolina Highway Trust Fund to the General Fund.
(b)	Transfer. – 		
The State Treasurer shall reduce the transfer of taxes from the North Carolina Highway Trust Fund to the General Fund as authorized in subsection (a) of this section by twenty percent (20%) per year until no funds shall be transferred. 
The State Treasurer shall transfer the following sums of the taxes deposed in the North Carolina Highway Trust Fund to the General Fund:
(1)	On July 1, 2003 – two hundred eighty-one million six hundred thousand dollars ($281,600,000).
(2)	On July 1, 2004 – two hundred eleven million two hundred thousand dollars ($211,200,000).
(3)	On July 1, 2005 – one hundred forty million eight hundred thousand dollars ($140,800,000).
(4)	On July 1, 2006 – seventy million four hundred thousand dollars ($70,400,000).
Thereafter, no funds shall be transferred from the North Carolina Highway Trust Fund to the General Fund."
SECTION 2.  G.S. 136‑176 is amended by adding a new subsection to read:
"(e)	The Department of Transportation shall use the following funds deposited in the North Carolina Highway Trust Fund pursuant to subdivision (a)(2) of this section (in addition to any other funds appropriated for this purpose) for highway maintenance:
(1)	For the 2003-2004 fiscal year – seventy million four hundred thousand dollars ($70,400,000).
(2)	For the 2004-2005 fiscal year – one hundred forty million eight hundred thousand dollars ($140,800,000).
(3) 	For the 2005-2006 fiscal year – two hundred eleven million two hundred thousand dollars ($211,200,000).
(4)	For the 2006-2007 fiscal year – two hundred eighty-one million six hundred thousand dollars ($281,600,000).
(5)	For the 2007-2008 fiscal year, and all subsequent fiscal years – three hundred fifty-two million dollars ($352,000,000)."
SECTION 3.  This act becomes effective July 1, 2002.  G.S. 105‑187.9(b), as enacted by Section 1 of this act, is repealed effective June 30, 2007.