SCFOR has compiled a section-by-section summary of the SCDOT Modernization bill (S.831) passed by the legislature and signed by the Governor in May 2026.
Sections 1-3: Secretary of Transportation Appointment/Governance Changes
Transfers authority to appoint the Secretary of Transportation from the Transportation Commission to the Governor, with Senate confirmation. The Secretary serves at the Governor’s pleasure. The current Secretary remains until a successor is appointed and confirmed by the Senate.
Sections 4-5: Abolishes the Commission
Abolishes SCDOT Commission effective January 1, 2027. Establishes the Secretary as the governing authority at the time of the expiration of the Commission.
Section 6: Secretary to the Infrastructure Bank Board
Designates the Secretary of Transportation as an ex officio member of the Infrastructure Bank Board.
Sections 7-29: Cleanup Language Related to the Removal of the Commission
Removes references to the Commission and updates statute to reflect the Secretary or Department in regard to current functions of the Commission as it relates to STIB project approvals, state road and bridge project planning, approvals, sale/transfers of real estate, outdoor advertising, etc.
Section 30: Auditing
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.
Also includes provisions to require the State Auditor to employ an independent firm to conduct an audit of SCDOT every four years.
Section 31: 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 32: Public-Private Partnerships
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. Agreements cannot exceed sixty years.
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. Establishes that SCDOT shall promulgate regulations to govern P3 implementation.
Section 33: 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 34: NEPA Assignment
Allow the Secretary of Transportation to assign, and the State to assume, responsibilities under NEPA standards (environmental decisions) for projects.
Section 35: Reciprocal Tolling Agreements/P3s
Authorizes reciprocal agreements with other states/jurisdictions to enforce unpaid toll violations through vehicle registration restrictions. Establishes criteria for public-private partnership agreements.
Section 36: 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 37: Municipal Consent
Clarifies municipal consent requirements for projects on state highways, establishes a 180-day deadline, and allows financial responsibility to be assigned to municipalities for unreasonable project delays.
Sections 38-40: Choice Lanes & Bonding Revisions
Makes technical changes to establish “choice lane facilities” and expands funding sources, requires feasibility studies, updates bond issuance procedures, removes bearer bond provisions, and allows third-party financial analyses. Also includes technical changes to update statutes to reflect the electronic transmission of toll collections and enforcement.
Section 41: Project Delivery Methods
Adds authority for phased design-build and Construction Manager/General Contractor (CMGC) project delivery methods.
Section 42: 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 43: Procurement Exemptions
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.
Section 44: 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. Projects on the state system are subject to the approval of the Secretary or his designee prior to Counties expending CTC funds on them.
Also clarifies authority and procedures to increase transparency for CTCs as it relates to memberships, meetings, and transportation planning.
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Allows legislative delegations to appoint CTC members and requires that all members of a CTC provide fair representation for municipalities and members must be residents of the County. CTC membership lists must be published online.
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Requires countywide transportation plans to include project selection criteria, be updated every four years, and approved by the Coordinating Council.
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Requires regional transportation plans to be updated every four years.
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Requires CTCs to meet at least twice per year, and they must follow requirements governing public meetings.
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Establishes ethical standards for CTC members and entities doing business on a CTC’s behalf.
Section 45: 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 46: 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.
Sections 47-48: Toll/Bonding Clarifications
Cleanup language related to bonds and tolling.
Section 49: Local Governments Funding State Projects
Establishes that if a county fully funds a project that is on the statewide priority list, the SCDOT must move up (reprioritize) the next project in that same county that is already on the priority list, effectively replacing the funded project. This does not apply to bridge projects.
Section 50: Retitles Toll/Bond Section
Retitles current “Turnpike” provisions in law as “Choice Lane Facilities.”
Section 51: One Subject
States that the bill constitutes one subject as required by the Constitution as each subject relates to improving the state’s transportation system.
Section 52: Severability Clause
Severability clause.
Section 53: Effective Dates
Provisions related to the Infrastructure Bank Board, P3s, project delivery methods, procurement, and NEPA take effect July 1, 2026. Provisions related to abolishing the Commission take effect January 1, 2027. The remainder of the bill takes effect on July 1, 2027. Legislative delegations have 90 days from the effective date to comply with the provisions of the CTC appointments.
View the full text of the bill here.
