SB 257, the 2025 Appropriations Act, allocates funding for North Carolina's state agencies, departments, and institutions for the 2025-2027 fiscal biennium. It provides budget authority from the General Fund, Highway Fund, and Highway Trust Fund to cover current operations, maintenance, and specific programs like those managed by the Department of Transportation. The bill also includes federal block grant funding for health and human services (DHHS) and other designated programs. This funding measure directly affects all state entities receiving these appropriations and becomes effective July 1, 2025.
This bill directs the North Carolina Department of Transportation to conduct a study on how well the Strategic Prioritization Funding Plan for Transportation Investments is working. The department must examine why some projects under this plan are delayed and gather input from construction partners and planning groups. By November 1, 2026, the agency will submit a report with its findings and suggestions for improving project delivery to state legislative committees. The bill does not change any laws immediately but requires an evaluation to inform future decisions on transportation funding.
This bill, known as the Mike Clampitt 1st Responder Tax Fairness Act, aims to expand tax exemptions for volunteer fire departments and rescue squads in North Carolina. Specifically, it allows these independent groups, which have two or fewer paid employees and are already exempt from state income tax, to avoid paying a highway use tax on specific emergency vehicles like fire trucks, forest firefighting units, and other emergency service vehicles. The change applies to vehicles when a certificate of title is issued on or after July 1, 2026, ensuring these organizations can acquire necessary equipment without incurring this particular tax. By broadening the existing exemption, the legislation directly benefits volunteer responders who operate outside of local government units.
HB 948, the P.A.V.E. Act, amends North Carolina law to allow Mecklenburg County to levy an additional 0.5% local sales tax specifically for public transportation systems. The bill defines "public transportation system" broadly to include buses, transit facilities, bike/pedestrian infrastructure, and automated transport tunnels, while excluding general roads. Funds collected must supplement, not replace, existing public transit funding and can only be used for financing, building, operating, or maintaining these systems. The tax proceeds would be distributed monthly to Mecklenburg County and its public transportation authorities per a financial plan, with the bill taking effect only if Mecklenburg levies this tax.
House Bill 652 modifies how the North Carolina Department of Transportation (DOT) calculates the baseline unit pricing for transportation goods used in highway maintenance and construction projects. The bill changes the baseline calculation from the 2015-2016 fiscal year to a rolling average of the three previous fiscal years. It maintains the existing provision that no Highway Division can exceed a ten percent variance over these established unit prices. If a division exceeds this variance, the DOT is required to report to several legislative committees detailing the reasons and steps for compliance. This act is set to become effective on July 1, 2025.
This bill authorizes local governments to borrow money through "grant anticipation notes" to accelerate local transportation projects already identified for funding under the State Transportation Improvement Program (STIP). To utilize this, a local government must enter into an expedited project agreement with the Department of Transportation (DOT), outlining project details, costs, funding, and a repayment plan. These notes are special obligations, meaning they are repaid solely from the anticipated STIP funding, and the local government's general taxing power is not pledged. The DOT must ensure that any STIP changes do not delay the repayment of these notes, and both the DOT and the Department of the Treasurer are directed to establish rules for their implementation.
This bill creates a new State Infrastructure Bank Board in North Carolina to manage federal, state, and private funding for transportation, water, and sewer infrastructure projects. The Board will be composed of six state officials including the Secretaries of Commerce, Transportation, and Environmental Quality, along with the State Treasurer, Auditor, and Budget Officer, and will operate independently within the Department of Commerce. It authorizes the Board to provide loans and financial assistance to local governments and toll authorities for infrastructure development, requiring repayment with interest and security based on project revenues or other assets. The legislation also establishes specific accounting procedures for the bank's funds, outlines rules for loan approval, and transfers existing infrastructure bank funds to this new Board, with an effective date of July 1, 2025.
This bill clarifies the eligibility requirements for motorcycle registration in North Carolina. It updates the definition of "motorcycles" to explicitly include those designed or modified for both off-road and highway use, provided they meet specific engine size, speed, and highway equipment standards. The bill also ensures that these dual-purpose motorcycles are not denied registration by being classified as "utility vehicles." This change affects individuals seeking to register motorcycles intended for both on-road and off-road operation. The act will become effective on October 1, 2025.
HB 472, the "Commercial Vehicle and Cargo Protection Act," introduces new regulations for commercial motor vehicles and their cargo. The bill prohibits the immobilization of commercial motor vehicles using devices like boots, making such actions a misdemeanor. It also requires towing companies performing nonconsensual or government-initiated tows to promptly return commercial cargo to its owner or their designee. Furthermore, if a towed trailer contains commercial cargo, the tower must allow it to be exchanged for a different trailer of equal or better condition.
HB 217 requires individuals aged 18 and older who are applying for a North Carolina driver's license and are not licensed in another state or haven't completed a state driver education course to complete a mandatory alcohol and drug abuse awareness course. This also applies to applicants licensed in other countries. The three-hour course, available online or in person, will cover the effects of substance abuse on driving, state traffic laws, and high-risk driving behaviors. Third-party vendors will offer these courses under the Division's oversight, and participants will pay a fee.
