North CarolinaHB 10942025-2026 SessionHouseWALLET

AN ACT TO DIRECT THE OFFICE OF THE STATE AUDITOR TO CONDUCT A PERFORMANCE AUDIT OF THE FERRY DIVISION OF THE DEPARTMENT OF TRANSPORTATION, AS RECOMMENDED BY THE JOINT LEGISLATIVE TRANSPORTATION OVERSIGHT COMMITTEE.

Sponsored By: Frank Iler (Republican), Phil Shepard (Republican)

Signed by Governor

ADVERTISING & MARKETINGAIRPORTSAUDITING & AUDITSAVIATIONBUDGETINGCOASTAL RESOURCESCOMMERCECOMMUNICATIONSCONTRACTSCOUNCIL OF STATECOUNTIESDMVDRIVERS LICENSESFEESFERRIESFUNDINGID SYSTEMSINFRASTRUCTUREINSURANCEINSURANCE, MOTOR VEHICLELICENSE PLATESLICENSES & PERMITSLOCAL GOVERNMENTMOTOR VEHICLESMUNICIPALITIESPARKS & RECREATION AREASPILOT PROGRAMSPRESENTEDPRIVATIZATIONPUBLICPUBLIC OFFICIALSRATIFIEDREPORTSROADS & HIGHWAYSSIGNSSPEED LIMITSTATE AUDITORSTUDIESTAXIS & SHUTTLESTITLESTRANSPORTATIONTRANSPORTATION DEPT

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Bill Overview

Analyzed Economic Effects

25 provisions identified: 12 benefits, 5 costs, 8 mixed.

Licenses restored; schools run driver ed

Beginning 2026-10-01, the DMV restores a permit or license that was revoked only because the person was ineligible for a driving eligibility certificate, if all other requirements are met. Local school boards must provide drivers education under Article 14. Several related statutes are repealed to reflect these changes.

New CDL refunds and faster Class B course

The DMV must set refund rules for commercial driver training. You get 100% back if you withdraw before the first scheduled hour, or within five business days after certified home‑study/digital materials are delivered and before your first in‑person hour. You get 75% back (less disclosed nonrefundable fees) if you leave before you receive 10% of the scheduled hours. No refund applies after you receive 10% of the hours, and home‑study/digital materials count as instruction hours. DMV also must create a two‑week Class B course with at least 25 hours classroom, 25 hours field, 10 hours highway driving, and 20 hours highway observation. These rules must be issued within 180 days and apply to enrollment contracts signed after they take effect.

Teens no longer need school approval for permits

Applicants under 18 no longer need a school driving eligibility certificate or a diploma/GED to get a limited learner’s permit or provisional license. The law also removes related certificate rules and the “Lose Control; Lose License” link to school discipline. This opens access to permits and licenses for more teens and their families.

Lower speeds and truck lane limits

Beginning 2026-12-01, any unpaved road or road without a centerline has a 25 mph speed limit. On controlled‑access highways with six or more lanes, trucks of 26,001 pounds GVWR or more may not use the leftmost lane, except to enter, exit, or avoid a hazard, or where signed rules allow otherwise.

DOT reimburses some electric utility relocations

When DOT orders electric utility equipment moved that sits outside a DOT right‑of‑way, DOT must repay non‑betterment costs for electric membership cooperatives and municipally owned electric utilities. Repayments can include buying new easements. Utilities must show they have a compensable property interest. DOT may set rules to carry this out.

More DOT projects use CM-GC

The DOT may use the construction manager–general contractor method on up to 15 pilot projects, up from 10. Projects must still be under $750,000,000, in the public interest, and follow prequalification and reporting rules.

Counties can bill owners for street work

Counties can finance improvements to certain State‑maintained secondary streets and subdivision or access streets, then charge benefited properties by special assessment. A petition must be signed by at least 75% of owners who represent at least 75% of the frontage along the street to be improved. Counties may issue bonds to cover costs. Some large complexes and malls are excluded.

Higher insurance for taxi operators

Beginning 2027-07-01, every taxi business must file proof of insurance to operate. Each vehicle must have at least $100,000 per person, $300,000 per accident for two or more people, and $50,000 for property damage. Taxis serving an international airport under an airport permit must carry at least $1,000,000 per occurrence and name the airport as a certificate holder.

Wider retailer tax rules for vehicle businesses

If Senate Bill 595 (2025) becomes law, then starting October 1, 2026 the definition of “retailer” includes sellers of motor vehicles, providers of short‑ or long‑term leases or rentals, and vehicle subscription services. This change affects which businesses are treated as retailers for tax purposes under that statute.

Electric bike classes and local rules

Beginning 2026-12-01, e‑bikes are sorted into Class 1, 2, and 3, with motors up to 750 watts. You may ride them on roads, bike lanes, and multiuse paths unless local or park rules say otherwise. Riders under 18 on Class 3 bikes must wear a helmet that meets federal standards. Cities and counties may set rules for e‑bikes on sidewalks and paths, including class limits, speed limits, and helmet rules for riders under 18 on Class 1 or 2. NCDOT will publish e‑bike safety and use guides.

New rules for CDL employers

Beginning 2026-07-01, employers who hire commercial drivers must collect set applicant info and check federal systems. They may not let a driver work while suspended, revoked, disqualified, holding multiple licenses, or listed as prohibited in the FMCSA Clearinghouse. They must report positive drug or alcohol tests and refusals, and report negative return-to-duty tests as federal rules require. The DMV checks national systems before issuing a CDL and notifies the national CDL system within 10 days. If the Clearinghouse shows you as “prohibited,” the DMV marks your record and you are disqualified that day; the note stays for three years after the disqualification ends. The law also repeals G.S. 20-37.20B.

Stronger growth factor in traffic studies

Beginning 2026-10-01, DOT traffic impact studies must use a population growth factor at least as high as the average of the highest three growth years in the last five years in the county. For multi‑county projects, use the highest county average. DOT must post the criteria, consult a working group before changes, and give at least 90 days’ notice before amending them.

No more seven-year plate swaps

The DMV may use reflective materials on plates to improve visibility. The law removes the rule to replace plates every seven years. You no longer must swap plates on a fixed seven‑year cycle.

Easier transfers for DMV contractors

Dealers no longer have to replace plates under the repealed rule in G.S. 20-79(c1). The DMV also accepts commission contracts in a business’s name and lets contractors sell the whole business and transfer contracts and DMV equipment to a buyer under DMV rules.

More options to secure DOT permits

Permit applicants may choose a surety bond, an irrevocable letter of credit, or another DOT‑approved instrument to guarantee performance. The rule replaces the old bond‑payable‑to‑the‑State requirement and gives applicants more flexibility.

Ban on planting invasive species

Beginning 2026-10-01, DOT and State Parks may not plant species the NC Forest Service lists as invasive in highway rights‑of‑way or State Parks lands.

Durham can set 20 mph default

Durham may set a lower default speed, not less than 20 mph, on non‑State city streets. The city must install gateway signs and keep a public map. A faster State review applies to speed changes on State roads: an initial review in 30 days and deemed approval if no action in 90 days. After approval, the State must adopt a concurring ordinance and put up signs within the set time frames.

Logo sign fees now fund maintenance

Money the Department receives from the highway logo sign program is placed in the Highway Fund’s Reserve for General Maintenance. This directs that program revenue to road upkeep instead of other accounts.

New equipment rules for delivery robots

Beginning December 1, 2026, personal delivery devices must show the owner’s name, contact, and a unique ID number. They must have brakes for a controlled stop. At night, devices must have front and rear lights visible from at least 500 feet.

Vendor-run tourist direction signs, with fees

The DOT must hire a private vendor to run the tourist‑oriented directional signs program. The vendor designs, installs, and maintains the signs and handles billing. Businesses that join pay fees set by the vendor and approved by the Board of Transportation. DOT must select a vendor within 120 days after this section takes effect.

DMV changes: early renewals, more time

Beginning 2026-10-01, you can renew your license any time. If you renew more than 180 days early, you pay the duplicate fee plus the regular renewal fee minus a per‑year credit for each full year left. Renew within 180 days and pay only the regular fee. When the DMV thinks your insurance lapsed, it must give you 30 days to show continuous coverage before penalties. The DMV may send an unredacted crash report to people in the crash by secure electronic delivery.

More specialty plates and who qualifies

Community colleges can now get collegiate plates once 300 paid applications are in (100 for public military colleges). The America 250 and Guy Harvey plates need 300 paid applications and final artwork; DMV is not required to issue them until 180 days after that. The Guy Harvey plate costs $30 extra; $10 goes to the Special Registration Plate Account and $20 goes to a fund split quarterly among UNC Wilmington, NC State, UNC Chapel Hill, and East Carolina for marine biology. The IAFF plate is for active members and certain surviving spouses, and needs 300 applications.

New rules for delivery robots

Beginning 2026-12-01, delivery devices may be larger (up to 55 inches long and 36 inches wide; 500 pounds excluding cargo). They may operate in bike lanes, shoulders, and parking lots at up to 10 mph in pedestrian areas and 20 mph elsewhere. They must use the shoulder when along highways and cannot operate on highways over 55 mph. A human must be able to monitor and control the device remotely. Devices follow pedestrian or bicycle rules, and violations are infractions.

Tourist sign program for small businesses

The Board of Transportation sets rules for the tourist‑oriented directional signs (TODS) program and approves vendor fees. Panels must be within five miles, no more than six per intersection, and used on non‑controlled‑access highways near towns under 40,000 people. Vendors may cover or remove panels during closures and most short periods without refunds or time extensions unless removal exceeds seven days. Seasonal businesses get an “open” message when they operate.

Toll rules and turnpike management changes

Open‑road tolls cannot vary by how a vehicle is identified, but discounts for transponders or prepaid accounts are allowed. Only law enforcement and emergency vehicles are exempt from tolls. The Turnpike board appoints a Director/CEO who runs daily operations and manages staff; board members must direct operations only through that leader.

Sponsors & Cosponsors

Sponsors

  • Frank Iler

    Republican • House

  • Phil Shepard

    Republican • House

Cosponsors

  • Edward C. Goodwin

    Republican • House

  • Jeffrey C. McNeely

    Republican • House

  • Howard Penny, Jr.

    Republican • House

  • Bill Ward

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 455 • No: 5

House vote • 7/2/2026

HB 1094: Ferry Div. Audit/DOT Omnibus.

Yes: 103 • No: 5 • Other: 10

Senate vote • 7/1/2026

HB 1094: Ferry Division Audit/DOT Omnibus.

Yes: 47 • No: 0 • Other: 3

House vote • 6/30/2026

HB 1094: Ferry Division Audit/DOT Omnibus.

Yes: 112 • No: 0 • Other: 7

Senate vote • 6/24/2026

HB 1094: Ferry Div. Audit/DOT Omnibus.

Yes: 42 • No: 0 • Other: 8

Senate vote • 6/24/2026

HB 1094: Ferry Div. Audit/DOT Omnibus.

Yes: 42 • No: 0 • Other: 8

House vote • 6/3/2026

HB 1094: Ferry Division Performance Audit.

Yes: 109 • No: 0 • Other: 9

Actions Timeline

  1. Ch. SL 2026-46

    7/8/2026House
  2. Signed by Gov. 7/7/2026

    7/7/2026House
  3. Pres. To Gov. 7/2/2026

    7/2/2026House
  4. Ratified

    7/2/2026House
  5. Ordered Enrolled

    7/2/2026House
  6. Conf Report Adopted

    7/2/2026House
  7. Placed On Cal For 07/02/2026

    7/1/2026House
  8. Cal Pursuant Rule 44(d)

    7/1/2026House
  9. Conf Com Reported

    7/1/2026House
  10. Conf Report Adopted

    7/1/2026Senate
  11. Placed on Today's Calendar

    7/1/2026Senate
  12. Conf Com Reported

    7/1/2026Senate
  13. Conferees Changed

    7/1/2026House
  14. Conf Com Appointed

    7/1/2026Senate
  15. Conf Com Appointed

    7/1/2026House
  16. Failed Concur In S Com Sub

    6/30/2026House
  17. Placed On Cal For 06/30/2026

    6/29/2026House
  18. Cal Pursuant 36(b)

    6/29/2026House
  19. Regular Message Received For Concurrence in S Com Sub

    6/25/2026House
  20. Regular Message Sent To House

    6/25/2026Senate
  21. Engrossed

    6/24/2026Senate
  22. Passed 3rd Reading

    6/24/2026Senate
  23. Passed 2nd Reading

    6/24/2026Senate
  24. Amend Adopted A1

    6/24/2026Senate
  25. Reptd Fav

    6/23/2026Senate

Bill Text

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