North CarolinaHB 9482025-2026 SessionHouseWALLET

AN ACT TO ENACT THE PROJECTS FOR ADVANCING VEHICLE-INFRASTRUCTURE ENHANCEMENTS (PAVE) ACT.

Sponsored By: Tricia Ann Cotham (Republican)

Signed by Governor

AUTHORITIESCOMMERCECOUNTIESCOUNTY COMMISSIONERSELECTIONSINFRASTRUCTURELOCAL GOVERNMENTMASS TRANSITPRESENTEDPUBLICPUBLIC TRANSPORTATIONRATIFIEDRETAILINGROADS & HIGHWAYSSESSION LAWSTAXATIONTAXES, SALES & USETRANSPORTATIONMECKLENBURG COUNTYCHAPTEREDMETRO TRANSPORT AUTHORITY

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 1 costs, 5 mixed.

Passenger rail insurance and claim caps

Beginning July 1, 2025, passenger rail service must carry at least $200,000,000 in liability insurance per accident. An authority may self‑insure up to $5,000,000. Total recovery for one accident is capped at $200,000,000 or available insurance proceeds, whichever is greater. Contracts may assign who pays claims, but the insurance must name the parties.

Mecklenburg transit changes after tax approval

If Mecklenburg County enacts the Part IV tax, the State sends monthly net proceeds to the largest transit authority that includes the county, and the county is treated as an authority with funds flowing to the largest city for transit only. The City transfers CATS operating assets to the authority, while pledged assets stay until debts are paid. The City keeps a $30 million CATS reserve; the authority must refill it if used and cover current‑year debt service and reimbursements. Most CATS employees move to the authority. The old interlocal agreement ends, the Metropolitan Transit Commission dissolves, current out‑of‑area routes may continue, the authority must adopt key policies and plans, and two board seats come from named local groups.

More ways to fund and build transit

Beginning July 1, 2025, transit authorities and big cities get more financing tools. They can pledge local sales‑tax and system revenues to issue bonds, use RFPs to speed contracting, and receive State and federal grants, including State matching deals for major guideway projects. Regional authorities can apply for DOT funds for member cities by written agreement. These tools mainly apply to very large cities and metropolitan transit authorities. Transit authorities also qualify for sales‑tax refunds, and their bonds and income are generally State tax‑exempt.

New metropolitan transit authority and powers

Starting July 1, 2025, the law creates a metropolitan transit authority for eligible large counties. A 27‑member board sets policy with term limits and rules that bar elected officials and lobbyists. The authority can own and run transit, enter contracts, and issue bonds. It can acquire land by purchase or, when needed, by eminent domain under state law.

Transit spending rules and state protections

Starting July 1, 2025, local transit sales‑tax money must be used only to plan, build, run, and maintain transit and must add to, not replace, local funds. The law clarifies what counts as public transit for these uses. The State Auditor can review spending, and board appointments must be filed each year. County tax officers may share limited local tax data with transit authorities when needed for official duties. The law also protects expected state highway funding and ratings for certain Mecklenburg projects.

New 0.5% transit sales tax option

Starting July 1, 2025, a county can add a 0.5% sales tax for public transit if voters approve. You pay 0.5% more on taxable purchases made in that county. The tax cannot end while bonds or other debts tied to it are still unpaid, unless refinanced without longer terms. To estimate your cost, multiply your yearly taxable in‑county purchases by 0.005.

Sponsors & Cosponsors

Sponsor

  • Tricia Ann Cotham

    Republican • House

Cosponsors

  • Mary Belk

    Democratic • House

  • Laura Budd

    Democratic • House

  • Becky Carney

    Democratic • House

  • Carla D. Cunningham

    Independent • House

  • Aisha O. Dew

    Democratic • House

  • Julia Greenfield

    Democratic • House

  • Pricey Harrison

    Democratic • House

  • Beth Helfrich

    Democratic • House

  • Jordan Lopez

    Democratic • House

  • Nasif Majeed

    Independent • House

Roll Call Votes

All Roll Calls

Yes: 542 • No: 24

Senate vote 6/26/2025

HB 948: The P.A.V.E. Act.

Yes: 39 • No: 3 • Other: 8

House vote 6/26/2025

HB 948: The P.A.V.E. Act.

Yes: 101 • No: 5 • Other: 11

Senate vote 6/25/2025

HB 948: The P.A.V.E. Act.

Yes: 46 • No: 0 • Other: 4

Senate vote 6/25/2025

HB 948: The P.A.V.E. Act.

Yes: 42 • No: 4 • Other: 4

House vote 6/24/2025

HB 948: The Projects for Advancing Vehicle-Infrastructure Enhancements (P.A.V.E.)

Yes: 104 • No: 5 • Other: 9

House vote 6/18/2025

HB 948: The P.A.V.E. Act.

Yes: 108 • No: 1 • Other: 9

House vote 6/18/2025

HB 948: The P.A.V.E. Act.

Yes: 102 • No: 6 • Other: 9

Actions Timeline

  1. Ch. SL 2025-39

    7/1/2025House
  2. Signed by Gov. 7/1/2025

    7/1/2025House
  3. Pres. To Gov. 7/1/2025

    7/1/2025House
  4. Ratified

    6/30/2025House
  5. Ordered Enrolled

    6/26/2025House
  6. Concurred In S Com Sub

    6/26/2025House
  7. Added to Calendar

    6/26/2025House
  8. Special Message Received For Concurrence in S Com Sub

    6/26/2025House
  9. Special Message Sent To House

    6/26/2025Senate
  10. Engrossed

    6/26/2025Senate
  11. Passed 3rd Reading

    6/26/2025Senate
  12. Passed 2nd Reading

    6/25/2025Senate
  13. Amend Adopted A1

    6/25/2025Senate
  14. Placed on Today's Calendar

    6/25/2025Senate
  15. Reptd Fav

    6/25/2025Senate
  16. Re-ref Com On Rules and Operations of the Senate

    6/24/2025Senate
  17. Com Substitute Adopted

    6/24/2025Senate
  18. Reptd Fav Com Substitute

    6/24/2025Senate
  19. Ref to Finance. If fav, re-ref to Rules and Operations of the Senate

    6/24/2025Senate
  20. Passed 1st Reading

    6/24/2025Senate
  21. Special Message Received From House

    6/24/2025Senate
  22. Special Message Sent To Senate

    6/24/2025House
  23. Ordered Engrossed

    6/24/2025House
  24. Passed 3rd Reading

    6/24/2025House
  25. Placed On Cal For 06/24/2025

    6/18/2025House

Bill Text

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