Gov. Josh Stein has signed into law legislation ordering a comprehensive performance audit of the North Carolina Ferry System, requiring an independent review of ferry finances and operations as the state prepares to begin charging tolls on every route next year.
House Bill 1094 directs the Office of State Auditor Dave Boliek to conduct a broad examination of the state Ferry Division’s finances, operations, maintenance practices, route structure and potential new revenue sources.
The auditor must deliver a report to lawmakers by Jan. 15.
The audit comes a day after Stein signed the state’s more than $34 billion budget, which requires the Ferry Division to begin charging tolls on every state-operated ferry route by Jan. 1, ending free service on the Hatteras-Ocracoke and Currituck-Knotts Island routes.
Under the law, auditors will review ferry operations and maintenance spending, capital projects, route structures and scheduling, and evaluate options to diversify revenue while reducing operating costs. The review also directs the auditor to recommend long-term strategies for maximizing revenue and improving efficiency.
Lawmakers have said the audit is intended to provide an independent assessment of the Ferry Division before additional policy decisions are made about vessel replacement, service levels and long-term funding.
The timing has drawn attention because the state budget approved by the General Assembly and signed by Stein already mandates tolls on all ferry routes beginning next year.
The N.C. Ferry Division operates eight routes and carries approximately 1.47 million passengers annually, making it the nation’s second-largest state-operated ferry system.
The toll debate intensified last fall when lawmakers approved a $7 million emergency funding package to prevent a proposed 60% reduction in ferry service after Ferry Division officials warned of mounting maintenance costs and an aging fleet.
During last week’s Senate budget debate, Sen. Bobby Hanig, R-Currituck, argued lawmakers should wait for the audit before imposing tolls on ferry users.
“I have been very outspoken in support of this, as it is long overdue,” Hanig said of the audit.
Hanig also reiterated his opposition to ferry tolls, telling fellow senators, “I made a promise to my constituents a long time ago that I would not vote for a ferry tax.”
Hanig and Sen. Norman Sanderson, R-Pamlico, initially became the only Senate Republicans to oppose the state budget because of the toll provision. Hanig was absent for the final budget vote, while Sanderson ultimately voted in favor of the spending plan.
While Stein sharply criticized the toll requirement in Tuesday’s budget announcement, he did not mention the ferry audit when discussing House Bill 1094. Instead, the governor highlighted provisions aimed at improving Division of Motor Vehicles services.
“This bill makes the DMV more efficient and gives drivers a smoother experience,” Stein said in a statement. “It helps more people avoid a trip to renew their IDs and makes crash reports easier to access online so that people can get the information and resources they need when they need them.”
Beginning Oct. 1, North Carolinians will be able to renew driver’s licenses earlier than the current 180-day window, giving motorists more flexibility when renewing credentials.
The bill also extends the time motorists have to respond to insurance lapse notices from 10 days to 30 days and allows people directly involved in crashes to obtain unredacted crash reports electronically from the DMV.
The measure also establishes North Carolina’s first statewide three-class system for electric-assisted bicycles.
Cities and counties will be authorized to regulate e-bike use on sidewalks and multiuse paths, including setting speed limits or restricting certain classes of e-bikes.
Riders younger than 18 operating or riding on Class 3 e-bikes, which provide pedal assistance up to 28 mph, will be required to wear helmets.
Additional provisions eliminate the mandatory seven-year replacement schedule for standard license plates, update commercial driver’s license laws to comply with federal regulations, establish a 25-mph default speed limit on unpaved roads without centerlines, modify truck lane restrictions on certain highways and revise rules governing automated delivery devices operating on roads and sidewalks.
