North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S584 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 584
	3	+	S D
	4	+	SENATE BILL DRS15200-MCxf-100
	5	+
5	6
6	7
7	8		Short Title: Local Govt Transportation System Financing. (Public)
8	9		Sponsors: Senators Rabon, Craven, and Sawyer (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S584 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS15200 -MCxf-100
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO AUTHORIZE SUPPLEMENTAL SOURCES OF REVENUE FOR LOCAL 2
14	15		GOVERNMENT TRANSPORTATION SYSTEM FINANCING. 3
15	16		The General Assembly of North Carolina enacts: 4
16	17		5
17	18		PART I. RESERVED 6
18	19		7
19	20		PART II. REVISIONS TO CURRENT LOCAL SALES TAX FOR PUBLIC 8
20	21		TRANSPORTATION 9
21	22		SECTION 2.1. G.S. 105-506.1 reads as rewritten: 10
22	23		"§ 105-506.1. Definitions. 11
23	24		The definitions in G.S. 105-164.3 and the following definitions apply in this Article: 12
24	25		… 13
25	26		(3) Public transportation system. – Any combination of real and personal property 14
26	27		established for purposes of public transportation. The systems may include 15
27	28		one or more of the following: structures, improvements, buildings, equipment, 16
28	29		vehicle parking or passenger transfer facilities, railroads and railroad 17
29	30		rights-of-way, rights-of-way, bus services, shared-ride services, 18
30	31		high-occupancy vehicle facilities, car-pool and vanpool programs, voucher 19
31	32		programs, telecommunications and information systems, integrated fare 20
32	33		systems, and the interconnected bicycle and pedestrian infrastructure that 21
33	34		supports public transportation, bus lanes, and busways. The term includes 22
34	35		tunnels and other infrastructure designed to rapidly transport people, freight, 23
35	36		or vehicles through automated means. The term does not include, however, 24
36	37		streets, roads, or highways except to the extent they are dedicated to public 25
37	38		transportation vehicles or to the extent they are necessary for access to vehicle 26
38	39		parking or passenger transfer facilities. 27
39	40		(4) Transportation authority. – For the purposes of Part 2 of this Article, a 28
40	41		metropolitan public transportation authority created pursuant to Article 34 of 29
41	42		Chapter 160A of the General Statutes. For the purposes of Parts 3 and 4 of 30
42	43		this Article, a regional public transportation authority created pursuant to 31
43	44		Article 26 of Chapter 160A of the General Statutes; and for the purposes of 32
44	45		Parts 3 and 5 of this Article, a regional transportation authority created 33
45	46		pursuant to Article 27 of Chapter 160A of the General Statutes." 34
46	47		SECTION 2.2. Reserved. 35
47		-	SECTION 2.3. G.S. 105-507.3(b) reads as rewritten: 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 584-First Edition
	48	+	SECTION 2.3. G.S. 105-507.3(b) reads as rewritten: 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 584
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS15200-MCxf-100
49	54		"(b) Use. – A county must allocate the net proceeds distributed to it in accordance with its 1
50	55		financial plan adopted pursuant to G.S. 105-507 and use the net proceeds only for financing, 2
51	56		constructing, operating, and maintaining local public transportation systems. Any other unit of 3
52	57		local government may use the net proceeds distributed to it under this Part only for financing, 4
53	58		constructing, operating, and maintaining local public transportation systems. Every unit of 5
54	59		government shall use the net proceeds to supplement and not to supplant or replace existing funds 6
55	60		or other resources for public transportation systems. The net proceeds distributed to any unit of 7
56	61		local government, other than the county that levies the tax, pursuant to this Part may be included 8
57	62		as revenues within the meaning of G.S. 159-81(4), including any modifications of that statute." 9
58	63		SECTION 2.4. Reserved. 10
59	64		SECTION 2.5. This Part is effective when it becomes law. 11
60	65		12
61	66		PART III. RESERVED 13
62	67		14
63	68		PART IV. RESERVED 15
64	69		16
65	70		PART V. METROPOLITAN PUBLIC TRANSPORTATION AUTHORITY 17
66	71		SECTION 5.1. Chapter 160A of the General Statutes is amended by adding a new 18
67	72		Article to read: 19
68	73		"Article 34. 20
69	74		"Metropolitan Public Transportation Authority. 21
70	75		"§ 160A-900. Title. 22
71	76		This Article shall be known and may be cited as the "Metropolitan Public Transportation 23
72	77		Authority Act." 24
73	78		"§ 160A-901. Definitions. 25
74	79		As used in this Article, unless the context otherwise requires: 26
75	80		(1) Authority. – A metropolitan public transportation authority as defined by 27
76	81		subdivision (5) of this section. 28
77	82		(2) Board of trustees. – The governing board of the authority, in which the general 29
78	83		legislative powers of the authority are vested. 30
79	84		(3) Metropolitan public transportation authority. – A body corporate and politic 31
80	85		organized in accordance with the provisions of this Article for the purposes, 32
81	86		with the powers and subject to the restrictions hereinafter set forth. 33
82	87		(4) Population. – The number of persons residing in respective areas as defined 34
83	88		and enumerated in the most recent decennial federal census. 35
84	89		(5) Public transportation system. – Defined in G.S. 105-506.1. 36
85	90		(6) Unit of local government. – Any county, city, town, or municipality of this 37
86	91		State, and any other political subdivision, public corporation, authority, or 38
87	92		district in this State, which is or may be authorized by law to acquire, establish, 39
88	93		construct, enlarge, improve, maintain, own, and operate public transportation 40
89	94		systems. 41
90	95		(7) Unit of local government's chief administrative official. – The county 42
91	96		manager, city manager, town manager, or other person by whatever title, in 43
92	97		whom the responsibility for the unit of local government's administrative 44
93	98		duties is vested. 45
94	99		"§ 160A-902. Definition of territorial jurisdiction of authority. 46
95	100		An authority may be created for any area of the State that, at the time of creation of the 47
96	101		authority, meets all of the following criteria: 48
97	102		(1) The area consists of a single county that has a population greater than 49
98	103		1,000,000. 50
99	104		(2) The county borders another state. 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 584-First Edition~~ Page 3
	105	+	DRS15200-MCxf-100 Page 3
101	106		(3) The county includes at least one unit of local government that operates a light 1
102	107		rail system. 2
103	108		"§ 160A-903. Creation of authority. 3
104	109		(a) The Board of Commissioners of a county for which an authority may be created as 4
105	110		defined in G.S. 160A-902 may by resolution signify its determination to organize an authority 5
106	111		under the provisions of this Article. The resolution shall be adopted after a public hearing thereon, 6
107	112		notice of which hearing shall be given by publication at least once, not less than 10 days prior to 7
108	113		the date fixed for such hearing, in a newspaper having a general circulation in the county. The 8
109	114		notice shall contain a brief statement of the substance of the proposed resolution, shall set forth 9
110	115		the proposed articles of incorporation of the authority, and shall state the time and place of the 10
111	116		public hearing to be held thereof. No county shall be required to make any other publication of 11
112	117		such resolution under the provisions of any other law. 12
113	118		(b) Each such resolution shall include articles of incorporation which shall set forth all of 13
114	119		the following: 14
115	120		(1) The name of the authority. 15
116	121		(2) A statement that the authority is organized under this Article. 16
117	122		(3) The name of the organizing county. 17
118	123		(4) A provision stating that an affirmative vote equal to at least seventy-five 18
119	124		percent (75%) of the membership of the board of trustees is required to amend 19
120	125		the articles of incorporation or to adopt or amend the bylaws of the authority. 20
121	126		(c) A certified copy of the resolutions signifying the determination to organize an 21
122	127		authority under the provisions of this Article shall be filed with the Secretary of State, together 22
123	128		with proof of publication of the notice of hearing on each of such resolutions. If the Secretary of 23
124	129		State finds that the resolution, including the articles of incorporation, conform to the provisions 24
125	130		of this Article and that the notices of hearing were properly published, the Secretary shall file the 25
126	131		resolutions and proofs of publication and shall issue a certificate of incorporation under the seal 26
127	132		of the State and shall record the same in an appropriate book of record. The issuance of a 27
128	133		certificate of incorporation by the Secretary of State constitutes the authority a public body and 28
129	134		body politic and corporate of the State of North Carolina. The certificate of incorporation is 29
130	135		conclusive evidence of the fact that the authority has been duly created and established under the 30
131	136		provisions of this Article. 31
132	137		(d) When the authority has been duly organized and its officers elected as provided in 32
133	138		this Article, the secretary of the authority shall certify to the Secretary of State the names and 33
134	139		addresses of officers as well as the address of the principal office of the authority. 34
135	140		(e) The authority may become a Designated Recipient pursuant to the Urban Mass 35
136	141		Transportation Act of 1964, as amended. 36
137	142		"§ 160A-904. Territorial jurisdiction of the authority. 37
138	143		(a) The initial territorial jurisdiction of an authority created pursuant to this Article shall 38
139	144		be coterminous with the boundaries of the county that organized it. 39
140	145		(b) Except as provided by this Article, the jurisdiction of the authority may include all 40
141	146		local public passenger transportation operating within the territorial jurisdiction of the authority, 41
142	147		but the authority may not take over the operation of any existing public transportation without 42
143	148		the consent of the owner. 43
144	149		(c) The authority shall not have jurisdiction over public transportation subject to the 44
145	150		jurisdiction of and regulated by the Interstate Commerce Commission, nor shall it have 45
146	151		jurisdiction over intrastate public transportation classified as common carriers of passengers by 46
147	152		the North Carolina Utilities Commission. 47
148	153		"§ 160A-905. Membership; officers; compensation. 48
149	154		(a) The governing body of an authority is the board of trustees. The initial board of 49
150	155		trustees shall consist of 27 members, appointed as provided in this section. For each appointment 50 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 584-First Edition~~
	156	+	Page 4 DRS15200-MCxf-100
152	157		below, the appointing authority may appoint an alternate that may act in the absence of the 1
153	158		primary person appointed. The appointments are as follows: 2
154	159		(1) Twelve members appointed by the board of commissioners of the county that 3
155	160		created the authority as follows: 4
156	161		a. The board of commissioners shall appoint one member as 5
157	162		recommended by the governing body of the municipality that has the 6
158	163		second largest population of residents that reside in the county. 7
159	164		b. The board of commissioners shall appoint one member as 8
160	165		recommended by the governing body of the municipality that has the 9
161	166		third largest population of residents that reside in the county. 10
162	167		c. The board of commissioners shall appoint one member as 11
163	168		recommended by the governing body of the municipality that has the 12
164	169		fourth largest population of residents that reside in the county. 13
165	170		d. The board of commissioners shall appoint one member as 14
166	171		recommended by the governing body of the municipality that has the 15
167	172		fifth largest population of residents that reside in the county. 16
168	173		e. The board of commissioners shall appoint one member as 17
169	174		recommended by the governing body of the municipality that has the 18
170	175		sixth largest population of residents that reside in the county. 19
171	176		f. The board of commissioners shall appoint one member as 20
172	177		recommended by the governing body of the municipality that has the 21
173	178		seventh largest population of residents that reside in the county. 22
174	179		g. The board of commissioners shall appoint six members in its 23
175	180		discretion. No more than one of these members may be an elected 24
176	181		official of the county. 25
177	182		(2) Twelve members appointed by the governing body of the largest municipality 26
178	183		in the county that created the authority as follows: 27
179	184		a. At least three of these appointments must be made upon the 28
180	185		recommendation of an entity that represents business interests in the 29
181	186		county. The municipality may reject a recommendation from the entity 30
182	187		that represents business interests. If the municipality rejects a 31
183	188		recommendation, then the entity that represents business interests shall 32
184	189		make another recommendation to the municipality with respect to the 33
185	190		appointment. This process shall continue until the municipality 34
186	191		accepts the recommendation of the entity that represents business 35
187	192		interests. 36
188	193		b. The governing body shall appoint nine members in its discretion. No 37
189	194		more than two of these members may be an elected official of the 38
190	195		municipality. 39
191	196		(3) Two members appointed by the General Assembly, one upon the 40
192	197		recommendation of the President Pro Tempore of the Senate and one upon the 41
193	198		recommendation of the Speaker of the House of Representatives. 42
194	199		(4) One member appointed by the Governor. 43
195	200		(b) Members of the board of trustees shall serve for terms of four years, provided that 44
196	201		one-half of the initial appointments shall be for two-year terms, to be determined by lot at the 45
197	202		first meeting of the board of trustees. Initial terms of office shall commence upon approval by 46
198	203		the Secretary of State of the articles of incorporation. 47
199	204		(c) An appointing authority may appoint one or more of its members to the board of 48
200	205		trustees, subject to the limitations of subsection (a) of this section. Service on the board of trustees 49
201	206		may be in addition to any other office which a person is entitled to hold. Each voting member of 50
202	207		the board of trustees may hold elective public office as defined by G.S. 128-1.1(d). 51 General Assembly Of North Carolina Session 2025
203		-	~~Senate Bill 584-First Edition~~ Page 5
	208	+	DRS15200-MCxf-100 Page 5
204	209		(d) Members of the board of trustees shall have demonstrated experience or qualifications 1
205	210		in the areas of law, finance, engineering, public transportation, urban planning, logistics, 2
206	211		government, architecture, or economic development. 3
207	212		(e) Members of the board of trustees shall reside within the territorial jurisdiction of the 4
208	213		authority as defined by G.S. 160A-904. 5
209	214		(f) Every two years, the board of trustees shall elect from its membership a group of 6
210	215		officers, which shall include a Chairperson, Vice-Chairperson, Secretary, and Treasurer. An 7
211	216		election of an officer must be by a majority vote at a meeting where a quorum is present. 8
212	217		(g) No trustee may serve for more than two consecutive terms on the board of trustees, 9
213	218		but a person who has been a member for two consecutive terms may be reappointed after being 10
214	219		off the board of trustees for a period of at least two years. An initial term that is two years or less 11
215	220		shall not be counted in determining the limitation on consecutive terms. This limitation applies 12
216	221		regardless of whether the appointments are made by the same appointing authority. 13
217	222		"§ 160A-906. Expansion of authority. 14
218	223		Upon approval of authorizing resolutions by the board of trustees and the board of 15
219	224		commissioners of the affected county, the territorial jurisdiction and service area of an authority 16
220	225		may be expanded to include a whole county within this State that is contiguous to the then 17
221	226		existing territorial jurisdiction of the authority. Each of the authorizing resolutions must receive 18
222	227		an affirmative vote equal to at least seventy-five percent (75%) of the membership of the 19
223	228		applicable board. The authorizing resolutions shall contain provisions with respect to the 20
224	229		following: 21
225	230		(1) The date on which the territorial jurisdiction is to be expanded to include the 22
226	231		county. 23
227	232		(2) The extent to which the composition of the board of trustees may be amended, 24
228	233		if at all, due to the addition of the county to the territorial jurisdiction of the 25
229	234		authority. The authorizing resolutions shall not eliminate or amend the 26
230	235		requirements with respect to appointments to the board of trustees that are 27
231	236		provided in G.S. 160A-905. Subsections (b) through (g) of G.S. 160A-905 28
232	237		shall apply to any additional appointments to the board of trustees. 29
233	238		(3) Financial, legal, or operational commitments with respect to the county that is 30
234	239		to be added to the territorial jurisdiction of the authority. 31
235	240		(4) Any other matter determined to be relevant by the board of trustees and the 32
236	241		board of commissioners of the affected county. 33
237	242		"§ 160A-907. Voting; removal. 34
238	243		(a) A majority of the board of trustees constitutes a quorum for the transaction of 35
239	244		business. Each member shall have one vote. 36
240	245		(b) Each member of the board of trustees may be removed with or without cause by the 37
241	246		appointing authority. 38
242	247		(c) Appointments to fill vacancies shall be made for the remainder of the unexpired term 39
243	248		by the respective appointing authority charged with the responsibility for making such 40
244	249		appointments pursuant to G.S. 160A-905. All members shall serve until their successors are 41
245	250		appointed and qualified, unless removed from office. 42
246	251		"§ 160A-908. Advisory committees. 43
247	252		The board of trustees may provide for the selection of such advisory committees as it may 44
248	253		find appropriate, which may or may not include members of the board of trustees. 45
249	254		"§ 160A-909. Purpose of the authority. 46
250	255		The purpose of the authority shall be to finance, provide, operate, and maintain for a safe, 47
251	256		clean, reliable, adequate, convenient, energy efficient, economically and environmentally sound 48
252	257		public transportation system for the service area of the authority through the granting of 49
253	258		franchises, ownership and leasing of terminals, buses and other transportation facilities and 50
254	259		equipment, and otherwise through the exercise of the powers and duties conferred upon it, in 51 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~Senate Bill 584-First Edition~~
	260	+	Page 6 DRS15200-MCxf-100
256	261		order to enhance mobility in the region and encourage sound growth patterns. Such a service, 1
257	262		facility, or function shall be financed, provided, operated, or maintained in the service area of the 2
258	263		authority either in addition to or to a greater or lesser extent than services, facilities, or functions 3
259	264		are financed, provided, operated, or maintained for the entirety of the respective units of local 4
260	265		government. An authority may take direct action to accomplish these purposes or may enter 5
261	266		agreements with another unit of local government in the service area of the authority or a private 6
262	267		entity to accomplish these purposes. 7
263	268		"§ 160A-910. Service area of the authority. 8
264	269		The service area of the authority shall be as determined by the board of trustees consistent 9
265	270		with its purpose but shall not exceed the sum of the following: 10
266	271		(1) The territorial jurisdiction of the authority. 11
267	272		(2) An area outside of the territorial jurisdiction of the authority provided that one 12
268	273		of the following conditions is satisfied: 13
269	274		a. If the area is within this State, the governing bodies of the political 14
270	275		subdivisions to which service is to be extended approve by majority 15
271	276		vote of their governing boards the extension of service into the 16
272	277		political subdivision or the purchase of real property within the 17
273	278		political subdivision for the extension of service. 18
274	279		b. If the area is in another state, the extension of service is approved by 19
275	280		any applicable federal or State agency and in accordance with the other 20
276	281		state's laws. 21
277	282		"§ 160A-911. General powers of the authority. 22
278	283		The general powers of the authority include all of the following: 23
279	284		(1) To sue and be sued. 24
280	285		(2) To have a seal. 25
281	286		(3) To make rules and regulations, not inconsistent with this Article, for its 26
282	287		organization and internal management. 27
283	288		(4) To employ persons deemed necessary to carry out the functions and duties 28
284	289		assigned to them by the authority and to fix their compensation, within the 29
285	290		limit of available funds. 30
286	291		(5) With the approval of the unit of local government's chief administrative 31
287	292		official, to use officers, employees, agents, and facilities of the unit of local 32
288	293		government for such purposes and upon such terms as may be mutually 33
289	294		agreeable. 34
290	295		(6) To retain and employ counsel, auditors, engineers, and private consultants on 35
291	296		an annual salary, contract basis, or otherwise for rendering professional or 36
292	297		technical services and advice. 37
293	298		(7) To acquire, lease as lessee with or without option to purchase, hold, own, and 38
294	299		use any franchise, property, real or personal, tangible or intangible, or any 39
295	300		interest therein and to sell, lease as lessor with or without option to purchase, 40
296	301		transfer (or dispose thereof) whenever the same is no longer required for 41
297	302		purposes of the authority, or exchange same for other property or rights which 42
298	303		are useful for the authority purposes, including, but not necessarily limited to, 43
299	304		parking facilities. 44
300	305		(8) To acquire by gift, purchase, lease as lessee with or without option to purchase 45
301	306		or otherwise to construct, improve, maintain, repair, operate, or administer 46
302	307		any component parts of a public transportation system or to contract for the 47
303	308		maintenance, operation, or administration thereof or to lease as lessor the same 48
304	309		for maintenance, operation, or administration by private parties, including 49
305	310		parking facilities. 50 General Assembly Of North Carolina Session 2025
306		-	~~Senate Bill 584-First Edition~~ Page 7
	311	+	DRS15200-MCxf-100 Page 7
307	312		(9) To make or enter into contracts, agreements, deeds, leases with or without 1
308	313		option to purchase, conveyances or other instruments, including contracts and 2
309	314		agreements with the United States, the State of North Carolina, and units of 3
310	315		local government. 4
311	316		(10) To purchase or finance real or personal property in the manner provided for 5
312	317		cities and counties under G.S. 160A-20. 6
313	318		(11) To surrender to the State of North Carolina or a unit of local government any 7
314	319		property no longer required by the authority. 8
315	320		(12) To develop and make data, plans, information, surveys, and studies of public 9
316	321		transportation facilities within the territorial jurisdiction of the authority and 10
317	322		to prepare and make recommendations in regard thereto. 11
318	323		(13) To enter in a reasonable manner lands, waters, or premises for the purpose of 12
319	324		making surveys, soundings, drillings, and examinations whereby such entry 13
320	325		shall not be deemed a trespass except that the authority shall be liable for any 14
321	326		actual and consequential damages resulting from such entries. 15
322	327		(14) To develop and carry out demonstration projects. 16
323	328		(15) To make, enter into, and perform contracts with private parties, and public 17
324	329		transportation companies with respect to the management and operation of 18
325	330		public passenger transportation. 19
326	331		(16) To make, enter into, and perform contracts with any public utility, railroad, or 20
327	332		transportation company for the joint use of property or rights, for the 21
328	333		establishment of through routes, joint fares, or transfer of passengers. 22
329	334		(17) To make, enter into, and perform agreements with governmental entities for 23
330	335		payments to the authority for the transportation of persons for whom the 24
331	336		governmental entities desire transportation. 25
332	337		(18) With the consent of the unit of local government which would otherwise have 26
333	338		jurisdiction to exercise the powers enumerated in this subdivision: to issue 27
334	339		certificates of public convenience and necessity; and to grant franchises and 28
335	340		enter into franchise agreements and in all respects to regulate the operation of 29
336	341		buses and other methods of public passenger transportation which originate 30
337	342		and terminate within the territorial jurisdiction of the authority as fully as the 31
338	343		unit of local government is now or hereafter empowered to do within the 32
339	344		territorial jurisdiction of the unit of local government. 33
340	345		(19) To operate public transportation systems, to enter into and perform contracts 34
341	346		to operate public transportation services and facilities, and to own or lease 35
342	347		property, facilities, and equipment necessary or convenient therefor, and to 36
343	348		rent, lease, or otherwise sell the right to do so to any person, public or private; 37
344	349		further, to obtain grants, loans, and assistance from the United States, the State 38
345	350		of North Carolina, any public body, or any private source whatsoever, but may 39
346	351		not operate or contract for the operation of public transportation systems 40
347	352		outside the territorial jurisdiction of the authority except as provided by 41
348	353		subdivision (21) of this section. 42
349	354		(20) To enter into and perform contracts and agreements with other metropolitan 43
350	355		public transportation authorities, public transportation authorities, regional 44
351	356		public transportation authorities, or units of local government pursuant to the 45
352	357		provisions of G.S. 160A-460 through G.S. 160A-464 (Part 1 of Article 20 of 46
353	358		Chapter 160A of the General Statutes); further to enter into contracts and 47
354	359		agreements with private transportation companies, but this subdivision does 48
355	360		not authorize the operation of, or contracting for the operation of, service of a 49
356	361		public transportation system outside the service area of the authority. 50 General Assembly Of North Carolina Session 2025
357		-	Page 8 ~~Senate Bill 584-First Edition~~
	362	+	Page 8 DRS15200-MCxf-100
358	363		(21) To operate public transportation systems extending service into any political 1
359	364		subdivision of the State of North Carolina unless a particular unit of local 2
360	365		government operating its own public transportation system or franchising the 3
361	366		operation of a public transportation system by majority vote of its governing 4
362	367		board, shall deny consent. 5
363	368		(22) To operate public transportation systems extending service into another state, 6
364	369		but only if the extension of service is authorized by any applicable federal or 7
365	370		State agency and in accordance with the other state's laws. 8
366	371		(23) Except as restricted by covenants in bonds, notes, or equipment trust 9
367	372		certificates, to set in its sole discretion rates, fees, and charges for use of its 10
368	373		public transportation system. 11
369	374		(24) To do all things necessary or convenient to carry out its purpose and to 12
370	375		exercise the powers granted to the authority. 13
371	376		(25) To issue bonds or other obligations of the authority as provided by law and 14
372	377		apply the proceeds thereof to the financing of any public transportation system 15
373	378		or any part thereof and to refund, whether or not in advance of maturity or the 16
374	379		earliest redemption date, any such bonds or other obligations of the authority 17
375	380		or another municipality that financed or refinanced real and personal property 18
376	381		for a public transportation system to be owned or operated by the authority. 19
377	382		(26) To contract for, or to provide and maintain, with respect to the facilities and 20
378	383		property owned, leased with or without option to purchase, operated or under 21
379	384		the control of the authority, and within the territory thereof, a security force to 22
380	385		protect persons and property, dispense unlawful or dangerous assemblages 23
381	386		and assemblages which obstruct full and free passage, control pedestrian and 24
382	387		vehicular traffic, and otherwise preserve and protect the public peace, health, 25
383	388		and safety; for these purposes a member of such force shall be a peace officer 26
384	389		and, as such, shall have authority equivalent to the authority of a police officer 27
385	390		of the city or county in which said member of such force is discharging such 28
386	391		duties. 29
387	392		(27) To contract for the purchase, lease, or other acquisition of any apparatus, 30
388	393		supplies, materials, or equipment for public transit purposes with any person 31
389	394		or entity that, within the previous 60 months, after having completed a public 32
390	395		formal bid process substantially similar to that required by Article 8 of 33
391	396		Chapter 143 of the General Statutes or through the competitive proposal 34
392	397		method provided in G.S. 143-129(h), has contracted to furnish the apparatus, 35
393	398		supplies, materials, or equipment to any unit or agency approved in 36
394	399		G.S. 143-129(g) if the person or entity is willing to furnish the items at the 37
395	400		same or more favorable prices, terms, and conditions as those provided under 38
396	401		the contract with the other unit or agency. Any purchase made under this 39
397	402		section shall be approved by the board of trustees as provided in 40
398	403		G.S. 143-129(g). 41
399	404		"§ 160A-912. Authority of Utilities Commission not affected. 42
400	405		(a) Except as otherwise provided in this Article, nothing in this Article shall be construed 43
401	406		to limit or otherwise affect the power or authority of the North Carolina Utilities Commission or 44
402	407		the right of appeal to the North Carolina Utilities Commission as provided by law. 45
403	408		(b) The North Carolina Utilities Commission shall not have jurisdiction over rates, fees, 46
404	409		charges, routes, and schedules of an authority for service within its territorial jurisdiction. 47
405	410		"§ 160A-913. Fiscal accountability. 48
406	411		An authority is a public authority subject to the provisions of Chapter 159 of the General 49
407	412		Statutes. 50
408	413		"§ 160A-914. Funds. 51 General Assembly Of North Carolina Session 2025
409		-	~~Senate Bill 584-First Edition~~ Page 9
	414	+	DRS15200-MCxf-100 Page 9
410	415		The establishment and operation of an authority are governmental functions and constitute a 1
411	416		public purpose, and the State of North Carolina and any unit of local government may appropriate 2
412	417		funds to support the establishment and operation of the authority. The State of North Carolina 3
413	418		and any unit of local government may also dedicate, sell, convey, donate, or lease any of their 4
414	419		interests in any property to the authority. An authority may apply for grants from the State of 5
415	420		North Carolina, or from the United States or any department, agency, or instrumentality thereof. 6
416	421		The Department of Transportation may allocate to an authority any funds appropriated for public 7
417	422		transportation, or any funds whose use is not restricted by law. 8
418	423		"§ 160A-915. Competition. 9
419	424		No equipment of the authority may be used for charter, tour, or sight-seeing service except 10
420	425		as allowed under regulations adopted by the Federal Transit Administration. 11
421	426		"§ 160A-916. Effect on existing franchises and operations. 12
422	427		Creation of the authority shall not have an effect on any existing franchises granted by any 13
423	428		unit of local government; such existing franchises shall continue in full force and effect until 14
424	429		legally terminated; further, all ordinances and resolutions of the unit of local government 15
425	430		regulating local public transportation systems, bus operations, and taxicabs shall continue in full 16
426	431		force and effect now and in the future, unless superseded by regulations of the authority; such 17
427	432		superseding, if any, may occur only on the basis of prior mutual agreement between the authority 18
428	433		and the respective unit of local government. 19
429	434		"§ 160A-917. Termination. 20
430	435		The board of trustees may terminate the existence of the authority by adopting a resolution 21
431	436		by majority vote to do so at any time when it has no outstanding indebtedness. The resolution to 22
432	437		terminate the existence of the authority does not become effective unless and until ratified by 23
433	438		majority vote of the board of commissioners of the county that created the authority. In the event 24
434	439		of such termination, all property and assets of the authority not otherwise encumbered shall 25
435	440		become the property of a unit of local government within the territorial jurisdiction of the 26
436	441		authority as specified in the termination resolution and, if accepted by the unit of local 27
437	442		government, the unit of local government shall succeed to all rights, obligations, and liabilities 28
438	443		of the authority. 29
439	444		"§ 160A-918. Controlling provisions. 30
440	445		Insofar as the provisions of this Article are not consistent with the provisions of any other 31
441	446		law, public or private, the provisions of this Article shall be controlling. 32
442	447		"§ 160A-919. Bonds and notes authorized. 33
443	448		In addition to the powers granted by this Article, the authority may issue bonds and notes 34
444	449		pursuant to the provisions of The State and Local Government Revenue Bond Act, Article 5 of 35
445	450		Chapter 159 of the General Statutes, for the purpose of financing public transportation systems 36
446	451		or any part thereof and to refund such bonds and notes and to refund any bonds, notes, or other 37
447	452		obligations of another municipality used to finance or refinance real and personal property for a 38
448	453		public transportation system to be owned or operated by the authority, whether or not in advance 39
449	454		of their maturity or earliest redemption date. 40
450	455		"§ 160A-920. Equipment trust certificates. 41
451	456		In addition to the powers here and before granted, the authority shall have continuing power 42
452	457		to purchase equipment, and in connection therewith execute agreements, leases with or without 43
453	458		option to purchase, or equipment trust certificates. All money required to be paid by the authority 44
454	459		under the provisions of such agreements, leases with or without option to purchase, and 45
455	460		equipment trust certificates shall be payable solely from the fares, fees, rentals, charges, revenues, 46
456	461		and earnings of the authority, monies derived from the sale of any surplus property of the 47
457	462		authority, and gifts, grants, and contributions from any source whatever. Payment for such 48
458	463		equipment or rentals may be made in installments; the deferred installments may be evidenced 49
459	464		by equipment trust certificates payable solely from the aforesaid revenues or receipts and title to 50 General Assembly Of North Carolina Session 2025
460		-	Page 10 ~~Senate Bill 584-First Edition~~
	465	+	Page 10 DRS15200-MCxf-100
461	466		such equipment may or may not vest in the authority until the equipment trust certificates are 1
462	467		paid. 2
463	468		"§ 160A-921. Power of eminent domain. 3
464	469		(a) The authority shall have continuing power to acquire, by gift, grant, devise, exchange, 4
465	470		purchase, lease with or without option to purchase, or any other lawful method, including the 5
466	471		power of eminent domain, the fee or any lesser interest in real or personal property for use by the 6
467	472		authority. 7
468	473		(b) Exercise of the power of eminent domain by the authority shall be in accordance with 8
469	474		Chapters 40A and 136 of the General Statutes. 9
470	475		"§ 160A-922. Tax exemption. 10
471	476		The property of the authority, both real and personal, its acts, activities, and income shall be 11
472	477		exempt from any tax or tax obligation; in the event of any lease of authority property, or other 12
473	478		arrangement which amounts to a leasehold interest, to a private party, this exemption shall not 13
474	479		apply to the value of such leasehold interest nor shall it apply to the income of the lessee. 14
475	480		Otherwise, however, for the purpose of taxation, when property of the authority is leased to 15
476	481		private parties solely for the purpose of the authority, the acts and activities of the lessee shall be 16
477	482		considered as the acts and activities of the authority and the exemption. The interest on bonds or 17
478	483		obligations issued by the authority shall be exempt from State taxes. 18
479	484		"§ 160A-923. Removal and relocation of utility structures. 19
480	485		(a) The authority shall have the power to require any public utility, railroad, or other 20
481	486		public service corporation owning or operating any installations, structures, equipment, 21
482	487		apparatus, appliances, or facilities in, upon, under, over, across, or along any ways on which the 22
483	488		authority has the right to own, construct, operate, or maintain its public transportation system, to 23
484	489		relocate such installations, structures, equipment, apparatus, appliances, or facilities from their 24
485	490		locations, or, in the sole discretion of the affected public utility, railroad, or other public service 25
486	491		corporation, to remove such installations, structures, equipment, apparatus, appliances, or 26
487	492		facilities from their locations. 27
488	493		(b) If the owner or operator thereof fails or refuses to relocate them, the authority may 28
489	494		proceed to do so. 29
490	495		(c) Except as otherwise agreed, the authority shall provide any necessary new locations 30
491	496		and necessary real estate interests for such relocation and, for that purpose, the power of eminent 31
492	497		domain as provided in G.S. 160A-921 may be exercised provided the new locations shall not be 32
493	498		in, on, or above a public highway; the authority may also acquire the necessary new locations by 33
494	499		purchase or otherwise. 34
495	500		(d) Except as otherwise agreed, any affected public utility, railroad, or other public 35
496	501		service corporation shall be compensated for any real estate interest taken in a manner consistent 36
497	502		with G.S. 160A-921, subject to the right of the authority to reduce the compensation due by the 37
498	503		value of any property exchanged under this section. 38
499	504		(e) The method and procedures of a particular adjustment to the facilities of a public 39
500	505		utility, railroad, or other public service corporation shall be covered by an agreement between 40
501	506		the authority and the affected party or parties. 41
502	507		(f) Except as otherwise agreed, the authority shall reimburse the public utility, railroad, 42
503	508		or other public service corporation for the cost of relocations or removals which shall be the 43
504	509		entire amount paid or incurred by the utility properly attributable thereto after deducting the cost 44
505	510		of any increase in the service capacity of the new installations, structures, equipment, apparatus, 45
506	511		appliances, or facilities and any salvage value derived from the old installations, structures, 46
507	512		equipment, apparatus, or appliances. 47
508	513		"§ 160A-924. Reports to the General Assembly. 48
509	514		The authority shall annually submit to the General Assembly, on or before February 1, its 49
510	515		annual operating report, including a report of its administrative expenditures, and its audited 50
511	516		financial report. In odd-numbered years, the report shall be submitted to the Senate and House 51 General Assembly Of North Carolina Session 2025
512		-	~~Senate Bill 584-First Edition~~ Page 11
	517	+	DRS15200-MCxf-100 Page 11
513	518		Transportation Committees. In even-numbered years, the report shall be submitted to the Joint 1
514	519		Legislative Transportation Oversight Committee. 2
515	520		"§ 160A-925. Limitations on rail transportation liability. 3
516	521		(a) As used in this section: 4
517	522		(1) Claim. – A claim, action, suit, or request for damages, whether compensatory, 5
518	523		punitive, or otherwise, made by any person or entity against: 6
519	524		a. The authority, a railroad, or an operating rights railroad; or 7
520	525		b. An officer, director, trustee, employee, parent, subsidiary, or affiliated 8
521	526		corporation as defined in G.S. 105-130.2, or agent of: the authority, a 9
522	527		railroad, or an operating rights railroad. 10
523	528		(2) Operating rights railroad. – A railroad corporation or railroad company that, 11
524	529		prior to January 1, 2001, was granted operating rights by a State-Owned 12
525	530		Railroad Company or operated over the property of a State-Owned Railroad 13
526	531		Company under a claim of right over or adjacent to facilities used by or on 14
527	532		behalf of the authority. 15
528	533		(3) Passenger rail services. – The transportation of rail passengers by or on behalf 16
529	534		of the authority and all services performed by a railroad pursuant to a contract 17
530	535		with the authority in connection with the transportation of rail passengers, 18
531	536		including, but not limited to, the operation of trains; the use of right-of-way, 19
532	537		trackage, public or private roadway and rail crossings, equipment, or station 20
533	538		areas or appurtenant facilities; the design, construction, reconstruction, 21
534	539		operation, or maintenance of rail-related equipment, tracks, and any 22
535	540		appurtenant facilities; or the provision of access rights over or adjacent to lines 23
536	541		owned by the authority or a railroad, or otherwise occupied by the authority 24
537	542		or a railroad, pursuant to charter grant, fee simple deed, lease, easement, 25
538	543		license, trackage rights, or other form of ownership or authorized use. 26
539	544		(4) Railroad. – A railroad corporation or railroad company, including a 27
540	545		State-Owned Railroad Company as defined in G.S. 124-11, that has entered 28
541	546		into any contracts or operating agreements of any kind with the authority 29
542	547		concerning passenger rail services. 30
543	548		(b) Contracts Allocating Financial Responsibility Authorized. – The authority may 31
544	549		contract with any railroad to allocate financial responsibility for passenger rail services claims, 32
545	550		including, but not limited to, the execution of indemnity agreements, notwithstanding any other 33
546	551		statutory, common law, public policy, or other prohibition against same, and regardless of the 34
547	552		nature of the claim or the conduct giving rise to such claim. 35
548	553		(c) Insurance Required. – 36
549	554		(1) If the authority enters into any contract authorized by subsection (b) of this 37
550	555		section, the contract shall require the authority to secure and maintain, upon 38
551	556		and after the commencement of the operation of trains by or on behalf of the 39
552	557		authority, a liability insurance policy covering the liability of the parties to the 40
553	558		contract, a State-Owned Railroad Company as defined in G.S. 124-11 that 41
554	559		owns or claims an interest in any real property subject to the contract, and any 42
555	560		operating rights railroad for all claims for property damage, personal injury, 43
556	561		bodily injury, and death arising out of or related to passenger rail services. The 44
557	562		policy shall name the parties to the contract, a State-Owned Railroad 45
558	563		Company as defined in G.S. 124-11 that owns or claims an interest in any real 46
559	564		property subject to the contract, and any operating rights railroad as named 47
560	565		insureds and shall have policy limits of not less than two hundred million 48
561	566		dollars ($200,000,000) per single accident or incident, and may include a 49
562	567		self-insured retention in an amount of not more than five million dollars 50
563	568		($5,000,000). 51 General Assembly Of North Carolina Session 2025
564		-	Page 12 ~~Senate Bill 584-First Edition~~
	569	+	Page 12 DRS15200-MCxf-100
565	570		(2) If the authority does not enter into any contract authorized by subsection (b) 1
566	571		of this section, upon and after the commencement of the operation of trains by 2
567	572		or on behalf of the authority, the authority shall secure and maintain a liability 3
568	573		insurance policy, with policy limits and a self-insured retention consistent 4
569	574		with subdivision (1) of this subsection, for all claims for property damage, 5
570	575		personal injury, bodily injury, and death arising out of or related to passenger 6
571	576		rail services. 7
572	577		(d) Liability Limit. – The aggregate liability of the authority, the parties to the contract 8
573	578		or contracts authorized by subsection (b) of this section, a State-Owned Railroad Company as 9
574	579		defined in G.S. 124-11, and any operating rights railroad for all claims arising from a single 10
575	580		accident or incident related to passenger rail services for property damage, personal injury, bodily 11
576	581		injury, and death is limited to two hundred million dollars ($200,000,000) per single accident or 12
577	582		incident or to any proceeds available under any insurance policy secured pursuant to subsection 13
578	583		(c) of this section, whichever is greater. 14
579	584		(e) Effect on Other Laws. – This section shall not affect the damages that may be 15
580	585		recovered under the Federal Employers' Liability Act, 45 U.S.C. § 51, et seq., (1908); or under 16
581	586		Article 1 of Chapter 97 of the General Statutes. 17
582	587		"§ 160A-926. Civil liability. 18
583	588		Except as provided in G.S. 160A-925, the authority shall be deemed a city for purposes of 19
584	589		civil liability pursuant to G.S. 160A-485. Governmental immunity of the authority is waived to 20
585	590		a minimum of twenty million dollars ($20,000,000) per single accident or incident. The authority 21
586	591		shall maintain a minimum of twenty million dollars ($20,000,000) per single accident or incident 22
587	592		of liability insurance. Participation in a local government risk pool pursuant to Article 23 of 23
588	593		Chapter 58 of the General Statutes shall be deemed to be the purchase of insurance for the purpose 24
589	594		of this section." 25
590	595		26
591	596		PART VI. REQUIREMENTS IF MECKLENBURG COUNTY CREATES A 27
592	597		METROPOLITAN PUBLIC TRANSPORTATION AUTHORITY 28
593	598		SECTION 6.1. If Mecklenburg County creates a metropolitan public transportation 29
594	599		authority under Article 34 of Chapter 160A of the General Statutes, as enacted by Part V of this 30
595	600		act, then that Authority is subject to all of the provisions of this Part. 31
596	601		SECTION 6.2. The Authority shall conduct a study of the issues listed in this section. 32
597	602		The Authority may use any source of funding available to it to conduct the studies required by 33
598	603		this section. This specifically includes funds provided to the Authority by another unit of 34
599	604		government and funds that the Authority receives as a donation or grant from any other public or 35
600	605		private source. The Authority shall complete the study required under this section and publish a 36
601	606		report no later than July 1, 2025. The Authority shall publish the report and submit copies of the 37
602	607		report to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, 38
603	608		the Legislative Library, the Mecklenburg County Board of Commissioners, the Charlotte City 39
604	609		Council, the Town of Cornelius Board of Commissioners, the Town of Davidson Board of 40
605	610		Commissioners, the Town of Huntersville Board of Commissioners, the Town of Matthews 41
606	611		Board of Commissioners, the Town of Mint Hill Board of Commissioners, the Town of 42
607	612		Mooresville Board of Commissioners, and the Pineville Town Council. The Authority shall study 43
608	613		the following issues: 44
609	614		(1) Legal and financial considerations with respect to the transfer or use of assets 45
610	615		from the City of Charlotte or the Charlotte Area Transportation System 46
611	616		(CATS) to the Authority. 47
612	617		(2) Legal and financial considerations with respect to outstanding indebtedness 48
613	618		issued by the City of Charlotte with respect to CATS to ensure no adverse 49
614	619		impacts in relation to the outstanding indebtedness. 50 General Assembly Of North Carolina Session 2025
615		-	~~Senate Bill 584-First Edition~~ Page 13
	620	+	DRS15200-MCxf-100 Page 13
616	621		(3) Legal and financial considerations with respect to agreements and 1
617	622		recognitions by the City of Charlotte or CATS with respect to the public 2
618	623		transportation system with any federal, State, regional, or local governmental 3
619	624		entities. 4
620	625		(4) Legal and financial considerations with respect to human resources of a 5
621	626		transfer of assets, liabilities, and operations of the public transportation system 6
622	627		from the City of Charlotte or CATS to the Authority, including issues related, 7
623	628		but not limited, to employee pensions, retirement plans, and benefits. 8
624	629		(5) A recommendation as to whether the transfer of assets, liabilities, and 9
625	630		operations of the existing public transportation system to the Authority is 10
626	631		feasible and advisable. 11
627	632		(6) Any other issue determined to be relevant by the Authority. 12
628	633		SECTION 6.3. Reserved. 13
629	634		SECTION 6.4. The Authority shall do the following no later than one year after 14
630	635		enactment of this act: 15
631	636		(1) Adopt bylaws that are consistent with the provisions of Article 34 of Chapter 16
632	637		160A of the General Statutes. 17
633	638		(2) Establish policies with respect to Board governance, including the adoption 18
634	639		of a Code of Ethics for Trustees and key employees and the adoption of a 19
635	640		Conflicts of Interest policy. 20
636	641		(3) Create a human resources plan. This includes, at a minimum: 21
637	642		a. Creating an organizational chart that specifies positions that report 22
638	643		directly to the Authority's Board of Trustees. 23
639	644		b. Completing the search for direct reports to the Board of Trustees. 24
640	645		c. Creating personnel policies and procedures, including those related to 25
641	646		employee recruitment and retention, compensation and benefit 26
642	647		policies and plans, and an employee code of conduct. 27
643	648		d. Taking all steps necessary to ensure participation by the Authority in 28
644	649		the Local Governmental Employees' Retirement System under Article 29
645	650		3 of Chapter 128 of the General Statutes. 30
646	651		e. Creating a plan, including a time line, to implement a transfer of 31
647	652		employees of CATS from the City of Charlotte to the Authority. 32
648	653		f. Developing or acquiring information technology and other assets 33
649	654		needed to implement the human resources plan. 34
650	655		(4) Develop financial policies for the Authority. 35
651	656		(5) Develop operational policies for the Authority, including policies related to 36
652	657		business continuity, system operation, maintenance of the system and system 37
653	658		assets, fares, purchasing and contracts, transit rules and regulations, travel 38
654	659		markets, transit service, and advertising and sponsorships. 39
655	660		(6) Develop an information technology plan for the operation and administration 40
656	661		of the public transportation system. The plan shall include provisions related 41
657	662		to cybersecurity, data privacy, and the use of websites and mobile 42
658	663		applications. 43
659	664		(7) Create a plan, including a time line, for the acquisition of the assets of CATS 44
660	665		from the City of Charlotte. This includes: 45
661	666		a. Drafting agreements to be entered into with the City of Charlotte with 46
662	667		respect to the use, control, and acquisition of assets of CATS. With 47
663	668		respect to assets of CATS that were procured with funds available to 48
664	669		the City other than (i) federal or State funds received by the City with 49
665	670		respect to CATS, (ii) funds generated by a tax levied under Article 43 50
666	671		of Chapter 105 of the General Statutes, and (iii) funds generated by a 51 General Assembly Of North Carolina Session 2025
667		-	Page 14 ~~Senate Bill 584-First Edition~~
	672	+	Page 14 DRS15200-MCxf-100
668	673		tax levied under Section 3.1 of S.L. 1997-417, as added by Section 30 1
669	674		of S.L. 2006-162 and amended by Section 2(h) of S.L. 2009-527 and 2
670	675		by Senate Bill 145 of the 2025 General Assembly, if that bill becomes 3
671	676		law, the agreements shall provide that the City has a right of reverter 4
672	677		with respect to the property if the property is no longer used for a 5
673	678		purpose supporting the operation of a public transportation system. 6
674	679		b. Negotiating an agreement with the City of Charlotte to reimburse the 7
675	680		City for the acquisition of the Norfolk Southern O-Line as provided in 8
676	681		Section 4.9(4) of Senate Bill 145 of the 2025 General Assembly, if that 9
677	682		bill becomes law. 10
678	683		c. Drafting agreements with the City of Charlotte with respect to any 11
679	684		outstanding bonds, notes, or other financing secured or payable by 12
680	685		receipts from the taxes levied under Article 43 of Chapter 105 of the 13
681	686		General Statutes or under Section 3.1 of S.L. 1997-417, as added by 14
682	687		Section 30 of S.L. 2006-162 and amended by Section 2(h) of S.L. 15
683	688		2009-527 and Senate Bill 145 of the 2025 General Assembly, if that 16
684	689		bill becomes law. 17
685	690		d. Notwithstanding the agreements above, any agreements entered into 18
686	691		between the City and the Authority will require that the Authority 19
687	692		undertake all obligations necessary to ensure that the City will remain 20
688	693		in compliance with and will not have an adverse impact on the City's 21
689	694		outstanding bonds, notes, or other financing obligations for the public 22
690	695		transportation system. 23
691	696		(8) Take all steps necessary to ensure approval by the Federal Transit 24
692	697		Administration and any other applicable federal or State agency of the use, 25
693	698		control, and acquisition of CATS assets. 26
694	699		(9) Draft amendments to the interlocal agreement between Mecklenburg County, 27
695	700		the City of Charlotte, the Town of Cornelius, the Town of Davidson, the Town 28
696	701		of Huntersville, the Town of Matthews, the Town of Mint Hill, and the Town 29
697	702		of Pineville dated February 16, 1999, as amended, to provide for the 30
698	703		termination of that agreement at the time a tax levied under Senate Bill 145 of 31
699	704		the 2025 General Assembly, if that bill becomes law, becomes effective, 32
700	705		subject to any continuing obligations agreed to by the parties to the agreement. 33
701	706		The agreement shall contain provisions dissolving the Metropolitan Transit 34
702	707		Commission created under that interlocal agreement and repealing all 35
703	708		maintenance-of-effort requirements. 36
704	709		(10) Draft agreements or amendments to agreements with third parties to ensure 37
705	710		that the Authority may be substituted for the City as a party to any ongoing 38
706	711		contracts, agreements, rights, responsibilities, or liabilities with respect to 39
707	712		CATS once the Authority assumes operational control of CATS. 40
708	713		SECTION 6.5. If Mecklenburg County enacts a tax authorized by Senate Bill 145 41
709	714		of the 2025 General Assembly, if that bill becomes law, then the Authority and the City of 42
710	715		Charlotte shall do all of the following effective as of the date the tax levied under that Part 43
711	716		becomes effective: 44
712	717		(1) The Authority shall begin receiving the proceeds of all of the following: 45
713	718		a. Taxes levied under Senate Bill 145 of the 2025 General Assembly, if 46
714	719		that bill becomes law as provided in that act. 47
715	720		b. Taxes levied under Article 43 of Chapter 105 of the General Statutes 48
716	721		as provided in G.S. 105-507.3. 49
717	722		c. Taxes levied under Section 3.1 of S.L. 1997-417, as added by Section 50
718	723		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
719		-	~~Senate Bill 584-First Edition~~ Page 15
	724	+	DRS15200-MCxf-100 Page 15
720	725		and Senate Bill 145 of the 2025 General Assembly, if that bill becomes 1
721	726		law, as provided in that act. 2
722	727		(2) The City shall transfer control of the operational assets of CATS to the 3
723	728		Authority subject to use agreements between the City and the Authority. 4
724	729		(3) The City shall retain ownership of any assets that are pledged as security for 5
725	730		any outstanding indebtedness. Once any outstanding indebtedness is satisfied, 6
726	731		the City shall begin transferring ownership of these assets of CATS to the 7
727	732		Authority as provided in the agreements. 8
728	733		(4) The City shall begin transferring ownership of other physical assets of CATS 9
729	734		to the Authority as provided in the agreements. 10
730	735		(5) The City shall retain the thirty million dollars ($30,000,000) required fund 11
731	736		balance from the existing CATS Revenue Reserve Fund. If these reserves 12
732	737		must be used by the City to cover any debt service payments due within the 13
733	738		current fiscal year, the Authority shall provide an amount sufficient to return 14
734	739		the fund balance to the thirty million dollars ($30,000,000) required balance. 15
735	740		Once all applicable debt obligations have been satisfied, any amount 16
736	741		remaining in the Fund shall revert to the Authority. 17
737	742		(6) The Authority shall begin making payments to the City in accordance with 18
738	743		agreements between the Authority and the City for the following: 19
739	744		a. An amount to the City that is, at a minimum, sufficient to cover any 20
740	745		debt service payments due within the current fiscal year. Amounts 21
741	746		must be provided according to a schedule that ensures the funds are 22
742	747		available prior to the required payment dates. 23
743	748		b. An amount to reimburse the City for the acquisition of the Norfolk 24
744	749		Southern O-Line as provided in the agreements. 25
745	750		(7) Except as provided with specifically identified positions or individuals, 26
746	751		employees of CATS shall be transferred from the City to the Authority. 27
747	752		SECTION 6.6. If Mecklenburg County enacts a tax authorized by Senate Bill 145 28
748	753		of the 2025 General Assembly, if that bill becomes law, then, as of the date the tax levied under 29
749	754		that act becomes effective, the interlocal agreement between Mecklenburg County, the City of 30
750	755		Charlotte, the Town of Cornelius, the Town of Davidson, the Town of Huntersville, the Town of 31
751	756		Matthews, the Town of Mint Hill, and the Town of Pineville dated February 16, 1999, as 32
752	757		amended, and any other interlocal agreement with respect to the tax levied under Article 43 of 33
753	758		Chapter 105 of the General Statutes or a tax levied under Section 3.1 of S.L. 1997-417, as added 34
754	759		by Section 30 of S.L. 2006-162 and amended by Section 2(h) of S.L. 2009-527 and Senate Bill 35
755	760		145 of the 2025 General Assembly, if that bill becomes law, is terminated subject to any 36
756	761		continuing obligations agreed to by the parties to that agreement. In addition, the Metropolitan 37
757	762		Transit Commission is dissolved as of that date. 38
758	763		SECTION 6.7. If Mecklenburg County creates a metropolitan public transportation 39
759	764		authority under Article 34 of Chapter 160A of the General Statutes, as enacted by Part V of this 40
760	765		act, then, notwithstanding G.S. 160A-910 as enacted by that Part, any service outside of the 41
761	766		territorial jurisdiction of the Authority that is offered as of the date that the Authority assumes 42
762	767		operational control of the assets of CATS may continue without the governing bodies of the 43
763	768		applicable political subdivisions granting approval by majority vote for the continuation of 44
764	769		service. 45
765	770		46
766	771		PART VII. REVENUE BONDS FOR CITY OF CHARLOTTE AND NEW 47
767	772		TRANSPORTATION AUTHORITY 48
768	773		SECTION 7.1. The definitions in G.S. 159-81 apply in this Part. 49
769	774		SECTION 7.2. In addition to the revenues included in G.S. 159-81(4), a 50
770	775		municipality may include as revenues the receipts from any sales and use tax or other local tax 51 General Assembly Of North Carolina Session 2025
771		-	Page 16 ~~Senate Bill 584-First Edition~~
	776	+	Page 16 DRS15200-MCxf-100
772	777		received by a municipality in connection with its ownership and operation of a revenue bond 1
773	778		project or a utility or public service enterprise facility or system of which a revenue bond project 2
774	779		is a part as long as the pledge of such receipts does not constitute a pledge of the municipality's 3
775	780		taxing power. 4
776	781		SECTION 7.3. In addition to the powers provided in G.S. 159-83, a municipality 5
777	782		has the authority to finance and refinance the cost of public transportation systems, facilities, or 6
778	783		equipment with bonds or notes secured in one or more of the following ways: (i) by the revenues 7
779	784		of the public transportation systems, facilities, or equipment, (ii) by pledge, mortgage, or grant 8
780	785		of a security interest in all or a portion of the real and personal property, whether owned or leased, 9
781	786		comprising the public transportation systems, facilities, or equipment, and (iii) as otherwise 10
782	787		provided in Article 5 of Chapter 159 of the General Statutes. Notwithstanding anything in 11
783	788		G.S. 159-83(a) or otherwise in Article 5 of Chapter 159 of the General Statutes to the contrary, 12
784	789		each municipality may secure bonds or notes by a pledge of all or any portion of the revenues of 13
785	790		public transportation systems, facilities, or equipment without regard to meeting the expense and 14
786	791		maintenance and operation of and renewals and replacements with respect to the revenue bond 15
787	792		project. 16
788	793		SECTION 7.4. This Part applies only to cities with a population of greater than 17
789	794		870,000 according to the 2020 federal decennial census or any subsequent federal decennial 18
790	795		census and metropolitan public transportation authorities created under Article 34 of Chapter 19
791	796		160A of the General Statutes, as enacted by Part V of this act. 20
792	797		21
793	798		PART VIII. CONFORMING CHANGES 22
794	799		SECTION 8.1. G.S. 40A-3(c) reads as rewritten: 23
795	800		"(c) Other Public Condemnors. – For the public use or benefit, the following political 24
796	801		entities shall possess the power of eminent domain and may acquire property by purchase, gift, 25
797	802		or condemnation for the stated purposes. 26
798	803		… 27
799	804		(14) A metropolitan public transportation authority established under Article 34 of 28
800	805		Chapter 160A of the General Statutes for the purposes of that Article." 29
801	806		SECTION 8.2. G.S. 105-164.14(c) reads as rewritten: 30
802	807		"(c) Certain Governmental Entities. – A governmental entity listed in this subsection is 31
803	808		allowed an annual refund of sales and use taxes paid by it under this Article on direct purchases 32
804	809		of items. Sales and use tax liability indirectly incurred by a governmental entity on building 33
805	810		materials, supplies, fixtures, and equipment that become a part of or annexed to any building or 34
806	811		structure that is owned or leased by the governmental entity and is being erected, altered, or 35
807	812		repaired for use by the governmental entity is considered a sales or use tax liability incurred on 36
808	813		direct purchases by the governmental entity for the purpose of this subsection. The refund 37
809	814		allowed under this subsection does not apply to purchases of electricity, telecommunications 38
810	815		service, ancillary service, piped natural gas, video programming, or a prepaid meal plan. A 39
811	816		request for a refund must be in writing and must include any information and documentation 40
812	817		required by the Secretary. A request for a refund is due within six months after the end of the 41
813	818		governmental entity's fiscal year. 42
814	819		This subsection applies only to the following governmental entities: 43
815	820		… 44
816	821		(15) A regional public transportation authority created pursuant to Article 26 of 45
817	822		Chapter 160A of the General Statutes, a metropolitan public transportation 46
818	823		authority created pursuant to Article 34 of Chapter 160A of the General 47
819	824		Statutes, or a regional transportation authority created pursuant to Article 27 48
820	825		of Chapter 160A of the General Statutes. 49
821	826		…." 50
822	827		SECTION 8.3. G.S. 136-44.20(b1) reads as rewritten: 51 General Assembly Of North Carolina Session 2025
823		-	~~Senate Bill 584-First Edition~~ Page 17
	828	+	DRS15200-MCxf-100 Page 17
824	829		"(b1) The Secretary may, subject to the appropriations made by the General Assembly for 1
825	830		any fiscal year, enter into State Full Funding Grant Agreements with a Regional Public 2
826	831		Transportation Authority (RPTA) duly created and existing pursuant to Article 26 of Chapter 3
827	832		160A, 160A of the General Statutes, a Regional Transportation Authority (RTA) duly created 4
828	833		and existing pursuant to Article 27 of Chapter 160A, 160A of the General Statutes, a 5
829	834		Metropolitan Public Transportation Authority (MPTA) duly created and existing pursuant to 6
830	835		Article 34 of Chapter 160A of the General Statutes, or a city organized under the laws of this 7
831	836		State as defined in G.S. 160A-1(2), to provide State matching funds for "new start" fixed 8
832	837		guideway projects in development by any entity pursuant to 49 U.S.C. § 5309. These grant 9
833	838		agreements shall be executable only upon an Authority's or city's completion of and the Federal 10
834	839		Transit Administration (FTA) approval of Preliminary Engineering and Environmental Impact 11
835	840		Studies in anticipation of federal funding pursuant to 49 U.S.C. § 5309. 12
836	841		Prior to executing State Full Funding Grant Agreements, the Secretary shall submit proposed 13
837	842		grant agreements or amendments to the Joint Legislative Transportation Oversight Committee 14
838	843		for review. The agreements, consistent with federal guidance, shall define the limits of the "new 15
839	844		starts" projects within the State, commit maximum levels of State financial participation, and 16
840	845		establish terms and conditions of State financial participation. 17
841	846		State Full Funding Grant Agreements may provide for contribution of State funds in 18
842	847		multiyear allotments. The multiyear allotments shall be based upon the Department's estimates, 19
843	848		made in conjunction with an Authority or city, of the grant amount required for "new start" 20
844	849		project work to be performed in the appropriation fiscal year. 21
845	850		State funds may be used to fund fixed guideway projects developed without federal funding 22
846	851		by the Department, a Regional Public Transportation Authority (RPTA) duly created and existing 23
847	852		pursuant to Article 26 of Chapter 160A of the General Statutes, a Regional Transportation 24
848	853		Authority (RTA) duly created and existing pursuant to Article 27 of Chapter 160A of the General 25
849	854		Statutes, a Metropolitan Public Transportation Authority (MPTA) duly created and existing 26
850	855		pursuant to Article 34 of Chapter 160A of the General Statutes, or a unit of local government. In 27
851	856		addition, State funds may be used to pay administrative costs incurred by the Department while 28
852	857		participating in such fixed guideway projects." 29
853	858		SECTION 8.4. G.S. 136-44.27(e) and (f) read as rewritten: 30
854	859		"(e) Funds distributed by the Department under this section shall be used by counties, 31
855	860		public transportation authorities, metropolitan public transportation authorities, or regional 32
856	861		public transportation authorities in a manner consistent with transportation development plans 33
857	862		which have been approved by the Department and the Board of County Commissioners. To 34
858	863		receive funds apportioned for a given fiscal year, a county shall have an approved transportation 35
859	864		development plan. Funds that are not obligated in a given fiscal year due to the lack of such a 36
860	865		plan will be distributed to the eligible counties based upon the distribution formula prescribed by 37
861	866		subsection (d) of this section. 38
862	867		(f) A regional public transportation authority created pursuant to Article 25 or Article 26 39
863	868		of Chapter 160A of the General Statutes and a metropolitan public transportation authority 40
864	869		created under Article 34 of Chapter 160A of the General Statutes may, upon written agreement 41
865	870		with the municipalities served by a public transportation authority authority, county served by 42
866	871		the metropolitan public transportation authority, or counties served by the regional public 43
867	872		transportation authority, apply for and receive any funds to which the member municipality or 44
868	873		counties are entitled to receive based on the distribution formula set out in subsection (d) of this 45
869	874		section." 46
870	875		SECTION 8.5. G.S. 143-129(h) reads as rewritten: 47
871	876		"(h) Transportation Authority Purchases. – Notwithstanding any other provision of this 48
872	877		section, any board or governing body of any regional public transportation authority, hereafter 49
873	878		referred to as a "RPTA," created pursuant to Article 26 of Chapter 160A of the General Statutes, 50
874	879		or a regional transportation authority, hereafter referred to as a "RTA," created pursuant to Article 51 General Assembly Of North Carolina Session 2025
875		-	Page 18 ~~Senate Bill 584-First Edition~~
	880	+	Page 18 DRS15200-MCxf-100
876	881		27 of Chapter 160A of the General Statutes, or a metropolitan public transportation authority, 1
877	882		hereafter referred to as a "MPTA," created pursuant to Article 34 of Chapter 160A of the General 2
878	883		Statutes may approve the entering into of any contract for the purchase, lease, or other acquisition 3
879	884		of any apparatus, supplies, materials, or equipment without competitive bidding and without 4
880	885		meeting the requirements of subsection (b) of this section if the following procurement by 5
881	886		competitive proposal (Request for Proposal) method is followed. 6
882	887		The competitive proposal method of procurement is normally conducted with more than one 7
883	888		source submitting an offer or proposal. Either a fixed price or cost reimbursement type contract 8
884	889		is awarded. This method of procurement is generally used when conditions are not appropriate 9
885	890		for the use of sealed bids. If this procurement method is used, all of the following requirements 10
886	891		apply: 11
887	892		(1) Requests for proposals shall be publicized. All evaluation factors shall be 12
888	893		identified along with their relative importance. 13
889	894		(2) Proposals shall be solicited from an adequate number of qualified sources. 14
890	895		(3) RPTAs or RTAs RPTAs, RTAs, or MPTAs shall have a method in place for 15
891	896		conducting technical evaluations of proposals received and selecting 16
892	897		awardees, with the goal of promoting fairness and competition without 17
893	898		requiring strict adherence to specifications or price in determining the most 18
894	899		advantageous proposal. 19
895	900		(4) The award may be based upon initial proposals without further discussion or 20
896	901		negotiation or, in the discretion of the evaluators, discussions or negotiations 21
897	902		may be conducted either with all offerors or with those offerors determined to 22
898	903		be within the competitive range, and one or more revised proposals or a best 23
899	904		and final offer may be requested of all remaining offerors. The details and 24
900	905		deficiencies of an offeror's proposal may not be disclosed to other offerors 25
901	906		during any period of negotiation or discussion. 26
902	907		(5) The award shall be made to the responsible firm whose proposal is most 27
903	908		advantageous to the RPTA's or the RTA's RPTAs, RTAs, or MPTAs program 28
904	909		with price and other factors considered. 29
905	910		The contents of the proposals shall not be public records until 14 days before the award of 30
906	911		the contract. 31
907	912		The board or governing body of the RPTA or the RTA RPTA, the RTA, or the MPTA shall, 32
908	913		at the regularly scheduled meeting, by formal motion make findings of fact that the procurement 33
909	914		by competitive proposal (Request for Proposals) method of procuring the particular apparatus, 34
910	915		supplies, materials, or equipment is the most appropriate acquisition method prior to the issuance 35
911	916		of the requests for proposals and shall by formal motion certify that the requirements of this 36
912	917		subsection have been followed before approving the contract. 37
913	918		Nothing in this subsection subjects a procurement by competitive proposal under this 38
914	919		subsection to G.S. 143-49, 143-52, or 143-53. 39
915	920		RPTAs and RTAs RPTAs, RTAs, and MPTAs may adopt regulations to implement this 40
916	921		subsection." 41
917	922		SECTION 8.6. G.S. 143-157.1(d) reads as rewritten: 42
918	923		"(d) Reporting by Local Units of Government. – By September 1 of each year and with 43
919	924		regard to each local board listed in this subsection, the information required by subsection (b) of 44
920	925		this section shall be submitted on behalf of the appointing authority to the Secretary of State by 45
921	926		the clerk of that appointing authority. Appointments to each of the following local boards, 46
922	927		whether established by State law or local decision, or appointments to those local boards having 47
923	928		equivalent functions, however named or denominated, must be reported: 48
924	929		… 49
925	930		(26) A public transportation authority created pursuant to Article 25 of Chapter 50
926	931		160A of the General Statutes, a regional public transportation authority 51 General Assembly Of North Carolina Session 2025
927		-	~~Senate Bill 584-First Edition~~ Page 19
	932	+	DRS15200-MCxf-100 Page 19
928	933		created pursuant to Article 26 of Chapter 160A of the General Statutes, or a 1
929	934		regional transportation authority created pursuant to Article 27 of Chapter 2
930	935		160A of the General Statutes.Statutes, or a metropolitan public transportation 3
931	936		authority created pursuant to Article 34 of Chapter 160A of the General 4
932	937		Statutes. 5
933	938		…." 6
934	939		SECTION 8.7. G.S. 153A-148.1(a) reads as rewritten: 7
935	940		"(a) Disclosure Prohibited. – Notwithstanding Chapter 132 of the General Statutes or any 8
936	941		other law regarding access to public records, local tax records that contain information about a 9
937	942		taxpayer's income or receipts are not public records. A current or former officer, employee, or 10
938	943		agent of a county who in the course of service to or employment by the county has access to 11
939	944		information about the amount of a taxpayer's income or receipts may not disclose the information 12
940	945		to any other person unless the disclosure is made for one of the following purposes: 13
941	946		… 14
942	947		(4) To exchange information with a regional public transportation authority or 15
943	948		authority, a regional transportation authority, or a metropolitan public 16
944	949		transportation authority, created pursuant to Article 26 or 26, Article 27, or 17
945	950		Article 34 of Chapter 160A of the General Statutes, when the information is 18
946	951		needed to fulfill a duty imposed on the authority or on the county. 19
947	952		…." 20
948	953		SECTION 8.8. G.S. 159-48(e) reads as rewritten: 21
949	954		"(e) Each sanitary district, mosquito control district, hospital district, merged school 22
950	955		administrative unit described in G.S. 115C-513, metropolitan sewerage district, metropolitan 23
951	956		water district, metropolitan water and sewerage district, county water and sewer district, regional 24
952	957		public transportation authority, metropolitan public transportation authority, and special airport 25
953	958		district may borrow money and issue its bonds under this Article in evidence thereof for the 26
954	959		purpose of paying any capital costs of any one or more of the purposes for which it is authorized, 27
955	960		by general laws uniformly applicable throughout the State, to raise or appropriate money, except 28
956	961		for current expenses." 29
957	962		SECTION 8.9. G.S. 159-81 reads as rewritten: 30
958	963		"§ 159-81. Definitions. 31
959	964		The words and phrases defined in this section shall have the meanings indicated when used 32
960	965		in this Article: 33
961	966		(1) "Municipality" means a county, city, town, incorporated village, sanitary 34
962	967		district, metropolitan sewerage district, metropolitan water district, 35
963	968		metropolitan water and sewerage district, county water and sewer district, 36
964	969		water and sewer authority, hospital authority, hospital district, parking 37
965	970		authority, special airport district, special district created under Article 43 of 38
966	971		Chapter 105 of the General Statutes, regional public transportation authority, 39
967	972		regional transportation authority, metropolitan public transportation authority, 40
968	973		regional natural gas district, regional sports authority, airport authority, joint 41
969	974		agency created pursuant to Part 1 of Article 20 of Chapter 160A of the General 42
970	975		Statutes, a joint agency authorized by agreement between two cities to operate 43
971	976		an airport pursuant to G.S. 63-56, the North Carolina Turnpike Authority 44
972	977		described in Article 6H of Chapter 136 of the General Statutes and transferred 45
973	978		to the Department of Transportation pursuant to G.S. 136-89.182(b), and a 46
974	979		Ferry Transportation Authority created pursuant to Article 29 of Chapter 47
975	980		160A of the General Statutes, but not any other forms of State or local 48
976	981		government. 49
977	982		…." 50
978	983		SECTION 8.10. G.S. 160A-20(h) reads as rewritten: 51 General Assembly Of North Carolina Session 2025
979		-	Page 20 ~~Senate Bill 584-First Edition~~
	984	+	Page 20 DRS15200-MCxf-100
980	985		"(h) Local Government Defined. – As used in this section, the term "unit of local 1
981	986		government" means any of the following: 2
982	987		… 3
983	988		(11) A regional public transportation authority or authority, a regional 4
984	989		transportation authority, or a metropolitan public transportation authority 5
985	990		created pursuant to Article 26 or 26, Article 27, or Article 34 of this Chapter. 6
986	991		…." 7
987	992		8
988	993		PART IX. MISCELLANEOUS PROVISIONS 9
989	994		SECTION 9.1. It is the intent of the General Assembly not to reduce transportation 10
990	995		funding allocations for any municipality in Mecklenburg County as a result of the enactment of 11
991	996		this act or the levy of a tax under the provisions of Senate Bill 145 of the 2025 General Assembly, 12
992	997		if that bill becomes law. In addition, it is the intent of the General Assembly not to reduce State 13
993	998		transportation funding for State projects located in Mecklenburg County as a result of the 14
994	999		enactment of this act or the levy of a tax under the provisions of Senate Bill 145 of the 2025 15
995	1000		General Assembly, if that bill becomes law. Without specific authorization from the General 16
996	1001		Assembly, the Department of Transportation may not reduce funding for any transportation 17
997	1002		projects as a result of this act or the levy of a tax pursuant to the provisions of Senate Bill 145 of 18
998	1003		the 2025 General Assembly, if that bill becomes law. 19
999	1004		SECTION 9.2. This act becomes effective only if Senate Bill 145 of the 2025 20
1000	1005		General Assembly becomes law. Except as otherwise provided, this act is effective when Senate 21
1001	1006		Bill 145 of the 2025 General Assembly becomes law. 22