Overview of Senate SCDOT Modernization Legislation (S.831)

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Section 1: Coordinating Council for Transportation and Mobility

Creates a statewide Coordinating Council composed of key state transportation and regulatory leaders along with municipal and county representatives. The Council is responsible for aligning statewide transportation policies, reviewing, and approving long-range agency plans, recommending MPO boundaries, establishing rural planning districts, and ensuring interagency coordination for mobility and infrastructure investment.

The legislative delegations retain the authority to devolve CTC appointments, but County Councils cannot serve as CTCs

 

Section 2: Internal Audit Functions & Commission Responsibilities

Strengthens SCDOT’s internal audit function. The Chief Internal Auditor must hold professional credentials (CPA, CIA, or CFE). Audits cover all departmental operations, contracts, assets, and financial activities. Maintains requirements that reports must follow professional standards, be submitted to legislative oversight leaders, and published for transparency. Provides that the SCDOT, not the Commission, is responsible for preparing the statewide long range transportation plan in coordination with MPOs and local governments. Removes the Commission’s responsibility to approve the agency’s budget.

 

Section 3: Deputy Secretary Roles

Defines responsibilities for Deputy Secretaries to align with current responsibilities. Revisions specifically address finance and administration, engineering, intermodal and freight programs, and planning.

 

Section 4: Public-Private Partnership Authority

Creates a statutory framework for SCDOT to enter public-private partnerships (P3s) for certain projects. Contracts may include design-build, finance, operations, maintenance, performance-based payments, and toll or usage fee arrangements. Provides the Joint Bond Review Committee (JBRC) with oversight and comment of solicitations prior to advertisements, requires annual review/reporting to the JBRC, and establishes public filing requirements for P3 agreements with the Secretary of State.

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Section 5: Toll Authority

Limits tolling existing highways unless allowed by federal law and sanctioned by specific legislative approval. Defines when tolling may be used for transportation projects and expands the use to new lane capacity.

 

Section 6: NEPA Assignment

Allows the Secretary of Transportation to assign, and the State to assume, responsibilities under NEPA standards (environmental decisions) for projects. Requires SCDOT to produce an annual report.

 

Section 7: Reciprocal Tolling Agreements

Authorizes reciprocal agreements with other states/jurisdictions to enforce unpaid toll violations through vehicle registration restrictions.

 

Section 8: SCDOT/DMV Coordination for Tolling

Require SCDMV to remit toll-related data (vehicle/registration information, etc.) to the SCDOT monthly to ensure accurate billing and enforcement of tolls. Also requires both agencies to enter into a memorandum of understanding to ensure secure transactions regarding data and provide confidentiality and protection for vehicle owners.

 

Section 9: Municipal Consent

Clarifies municipal consent requirements for projects on state highways, establishes a 180 deadline, and allows financial responsibility to be assigned to municipalities for unreasonable project delays.

 

Section 10: Devolution of Roads to Local Governments

Requires SCDOT to compile a list non-essential roads that can be transferred to local governments, this list is subject to Coordinating Council approval. Also Creates the System Realignment Fund which can be funded by general funds or transfers from the State Highway Fund to assist local governments with the roads and provides flexibility for funding: 

Counties: Removes the requirement that a percentage of C-Funds be spent on state roads, allows for an additional sales tax referendum.

Cities: Allows for additional millage to be imposed. If a county fully invests local revenues into a state project on the SCDOT’s priority list, the SCDOT can reprioritize another project to take place in the county.

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Sections 11-12 : Turnpikes and Bonding Revisions

Makes technical changes to turnpike statutes by expanding funding sources, requiring feasibility studies, updating bond issuance procedures, removing bearer bond provisions, and permitting reliance on third-party financial analysis.

 

Section 13: Toll Collections

Updates statutes to make technical changes and allow for the electronic collection of tolls. Allows the Retirement System Investment Commission, and Public Employee Benefit Authority to invest in turnpike bonds.

 

Section 14: Project Delivery Methods

Adds authority for phased design-build and Construction Manager/General Contractor (CMGC) project delivery methods.

 

Section 15: Restrictions for Roads Transferred to Local Governments

Requires that any speed limits or size/weight restrictions must be approved by the SCDOT before they can be imposed on any highways that have been transferred to local governments after July 2026.

 

Section 16: Infrastructure Bank Board

Designates the Secretary of Transportation as an ex-officio member of the Transportation Infrastructure Bank Board. (Currently, this position is held by the SCDOT Commission Chairman, which results in a new representative on the Bank board each year.)

 

Section 17: Procurement Code Exemption

Provides SCDOT limited exemption from state procurement code for transportation planning, financing, operation, and other right of way improvements. Also provides exemption for information technology, purchasing, and management.

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Section 18: County Transportation Committees

Updates gasoline user fee distribution to CTCs to reflect the existing 3.99 cents allocation and requirement that counties use 33% on roads in the state system. Also clarifies authority and procedures to increase transparency for CTCs as it relates to memberships, meetings, and transportation planning. Requires legislative delegations to appoint CTC members and requires member lists to be published online. Requires countywide transportation plans to include project selection criteria, be updated every four years, and approved by the Coordinating Council. Requires regional transportation plans to be updated every four years and approved by the Coordinating Council. Requires CTCs to meet at least twice per year, and they must follow requirements governing public meetings.

 

Section 19: Toll Revenue Usage

Clarifies permitted uses of toll-derived revenues to ensure that toll revenues are dedicated to transportation-related purposes, including operation and maintenance costs.

 

Section 20: Pothole Mitigation Program

Requires SCDOT to establish a means for the public to report potholes and for potholes to be permanently repaired within seven days. (Temporary repairs are allowed if conditions do not allow for permanent repairs to take place.) SCDOT would use $15 million from the IMTF to use on full-depth patching for repetitive potholes.

 

Section 21: Effective Date

The act is effective upon approval by the Governor. County legislative delegations have 90 days from the effective date to comply with provisions related to CTC appointments.