A BILL TO BE ENTITLED
AN ACT to create the aviation management DIVISION; to require the sale of certain state aircraft; to consolidate state aircraft fleets; and to make conforming statutory changes, as recommended by the joint legislative program evaluation oversight committee of the north carolina general assembly.
The General Assembly of North Carolina enacts:

PART I. CREATION OF AVIATION MANAGEMENT DIVISION; DIVISION TO PROVIDE AVIATION PASSENGER TRANSPORT AND PHOTOGRAMMETRY SERVICES TO STATE AGENCIES

SECTION 1.(a)  The Division of Aviation of the Department of Transportation is renamed the Aviation Management Division of the Department of Transportation. Wherever the name "Division of Aviation" appears in G.S. 63‑91 and G.S. 63‑92, the Revisor of Statutes shall replace "Division of Aviation" with "Aviation Management Division."
SECTION 1.(b)  Article 8 of Chapter 143B of the General Statutes is amended by adding a new Part to read:
"Part 10. Aviation Management Division.
"§ 143B‑364.1.  Aviation Management Division – creation.
(a)	Creation. – There is established within the Department of Transportation the Aviation Management Division, which shall be organized and staffed in accordance with applicable laws and regulations and within the limits of authorized appropriations.
(b)	State Agencies to Use Division to Arrange Aviation Passenger Transport and Photogrammetry Services. – All State agencies in need of aviation passenger transport services or photogrammetry services shall arrange for those services through the Aviation Management Division in accordance with this Part. As used in this Part, the term 'aviation passenger transport services' means the use of State‑owned aircraft to transport persons and does not include travel on commercial flights. As used in this Part, the term 'State agency' does not include units of local government.
"§ 143B‑364.2.  Powers and duties.
The Aviation Management Division shall have the following powers and duties:
(1)	Aviation Passenger Transport and Photogrammetry. – To operate consolidated aviation passenger transport and photogrammetry services for all State programs and officials. This includes the following powers and duties:
a.	Acquiring, operating, maintaining, and housing aircraft. Acquisition of aircraft may be made through the Department of Administration or independently.
b.	Adopting guidelines to govern the use of State aircraft for aviation passenger transportation services, including guidelines governing the appropriate use of aircraft, passenger prioritization, scheduling responsibilities and procedures, and rate structures.
c.	Providing centralized scheduling and aviation passenger transportation services to State entities.
d.	Ensuring safety guidelines and requirements are met for staff and aircraft operations.
e.	Determining the appropriate number of aircraft and personnel required to meet the State's needs. Fleet mix studies shall be conducted periodically to determine the appropriate number and type of aircraft needed for aviation passenger transport and photogrammetry activities.
f.	Disposing of State aviation assets no longer needed. This may be accomplished through cooperation with the Department of Administration or independently. The net proceeds of any disposition under this sub-subdivision shall be remitted to the State Treasurer for deposit in the General Fund.
g.	Conducting analyses to ensure efficient operation of transportation aircraft.
h.	Developing a long‑term fleet management plan.
(2)	Exercising the powers and duties exercised by the Division of Aviation of the Department of Transportation prior to the enactment of this section.
"§ 143B‑364.3.  Electronic aviation resources management system.
The Aviation Management Division shall acquire and implement a single electronic data management system to manage all State aviation resources related to aviation passenger transport and photogrammetry services. The system shall electronically track flight, maintenance, and cost information consistently across all State aircraft used to provide passenger transport or photogrammetry services. The Division shall use the system to produce reports that shall be used to ensure the safe, efficient operations of the State aviation fleet.
"§ 143B‑364.4.  Fees.
(a)	Fee for Passenger Transport and Photogrammetry Services. – The Aviation Management Division shall set fees for use by State agencies of aviation passenger transport and photogrammetry services.
(b)	Use of Fees. – Fees collected pursuant to this section shall be used to support Aviation Management Division operations, and the total amount of fees collected annually under this section shall not exceed the anticipated operating costs of the Division for the following fiscal year plus an amount sufficient to meet any anticipated nonrecurring expenses associated with inspections, fleet mix studies, maintenance, or related costs for the following fiscal year.
(c)	Not Subject to Administrative Procedure Act. – The setting of the fees authorized by this section is not subject to Chapter 150B of the General Statutes.
"§ 143B‑364.5.  Report to Joint Legislative Commission on Governmental Operations.
The Aviation Management Division shall report each year by December 1 to the Joint Legislative Commission on Governmental Operations, the Subcommittees on Transportation of the House of Representatives and Senate Appropriations Committees, and the Fiscal Research Division of the General Assembly on the cost and efficiency of all State aviation programs."
SECTION 1.(c)  The Executive Aircraft Division of the Department of Commerce is transferred to the Aviation Management Division of the Department of Transportation. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6.

PART II. SALE OF CERTAIN AIRCRAFT AND OTHER MATTERS

SECTION 2.(a)  The aircraft proposed for elimination in Exhibit 15 of the Program Evaluation Division's report entitled "Selling 25 Underutilized Aircraft May Yield Up to $8.1 Million and Save $1.5 Million Annually" (Report 2010‑04), and associated records, property, unexpended balances of appropriations, allocations or other funds, are transferred to the Aviation Management Division. Affected agencies may designate the particular aircraft that are transferred so long as the number of aircraft proposed for elimination by the report are in fact transferred. State agencies required by this section to transfer aircraft to the Division shall reduce personnel accordingly.
As soon as practicable, the Aviation Management Division shall obtain appraisals and sell any of the aircraft transferred pursuant to this section that can be sold. The net proceeds from these sales shall be remitted on a quarterly basis to the State Treasurer for deposit into the General Fund. Any aircraft transferred pursuant to this section that cannot be sold because of restrictions contained in federal law or agreements with the federal government shall cease to be used by State agencies, and the Division shall arrange for their disposal in the most economically beneficial manner available to the State that satisfies any applicable restrictions. 
SECTION 2.(b)  The Aviation Management Division shall terminate leases for, or appraise and sell, the five hangars selected for elimination in Exhibit 17 of the Program Evaluation Division's report entitled "Selling 25 Underutilized Aircraft May Yield Up to $8.1 Million and Save $1.5 Million Annually" (Report 2010‑04) as the sale of aircraft required by subsection (a) of this section makes the elimination of those facilities feasible. For purposes of this subsection, a lease is terminated if it is allowed to expire and not renewed. Nothing in this subsection requires the termination of a contract existing on the effective date of this subsection  unless that contract provides a mechanism for termination that does not constitute a breach of contract.
SECTION 2.(c)  The aircraft operations of the North Carolina Area Health Education Program (AHEC) of The University of North Carolina System is transferred to the Aviation Management Division of the Department of Transportation. This transfer shall have all of the elements of a Type I transfer, as defined in G.S. 143A‑6. The Division shall give notice to Medical Air, Inc., a nonprofit corporation, that AHEC has been transferred to the Division pursuant to this section and that G.S. 143B‑364.1(b), as enacted by Section 1(b) of this act, requires that AHEC henceforth arrange for aviation passenger transport services through the Division. The Division shall further request that since Medical Air, Inc., can no longer lawfully provide these services to AHEC, Medical Air, Inc., be dissolved and the aircraft it owns transferred to the Division.
SECTION 2.(d)  The Aviation Management Division shall obtain a more economically desirable means of housing the aircraft of the Division of Forest Resources of the Department of Environment and Natural Resources that are currently housed at the Hickory Regional Airport than the arrangement currently in existence.
SECTION 2.(e)  The Division of Forest Resources in the Department of Environment and Natural Resources shall implement the safety recommendations of aviation consultant Conklin & de Decker that are summarized in Appendix D of the Program Evaluation Division's report entitled "Selling 25 Underutilized Aircraft May Yield Up to $8.1 Million and Save $1.5 Million Annually" (Report 2010‑04). The Division of Forest Resources shall file quarterly reports with the Aviation Management Division of the Department of Transportation detailing its implementation of these recommendations until the management database required by G.S. 143B‑364.3 is operational.
SECTION 2.(f)  G.S. 143B‑437.011 is repealed.
SECTION 2.(g)  There is appropriated from the General Fund to the Division of Forest Resources of the Department of Environment and Natural Resources the sum of fifty‑one thousand dollars ($51,000) for the 2010‑2011 fiscal year to contract for additional aircraft support for fire protection as needed. It is the intent of the General Assembly that these funds be recurring.

PART III. AVIATION MANAGEMENT DIVISION'S DUTY TO OVERSEE STATE AVIATION PROGRAMS OTHER THAN PASSENGER TRANSPORT AND PHOTOGRAMMETRY SERVICES

SECTION 3.  Part 10 of Article 8 of Chapter 143B of the General Statutes reads as rewritten:
"Part 10. Aviation Management Division.
"§ 143B‑364.1.  Aviation Management Division – creation.
(a)	Creation. – There is established, within the Department of Transportation, the Aviation Management Division, which shall be organized and staffed in accordance with applicable laws and regulations and within the limits of authorized appropriations.
(b)	State Agencies to Use Division to Arrange Services. – All State agencies in need of aviation passenger transport services or photogrammetry services shall arrange for those services through the Aviation Management Division in accordance with this Part. As used in this Part, the term 'aviation passenger transport services' means the use of State‑owned aircraft to transport persons and does not include the purchase of tickets allowing persons to travel on commercial flights. As used in this Part, the term 'State agency' does not include units of local government.
"§ 143B‑364.2.  Powers and duties.
The Aviation Management Division shall have the following powers and duties:
(1)	Aviation Passenger Transport and Photogrammetry. – To operate consolidated aviation passenger transport and photogrammetry services for all State programs and officials. This includes the following powers and duties:
a.	Acquiring, operating, maintaining, and housing aircraft.
b.	Adopting guidelines to govern the use of State aircraft for aviation passenger transportation services, including guidelines governing the appropriate use of aircraft, passenger prioritization, scheduling responsibilities and procedures, and rate structures.
c.	Providing centralized scheduling and aviation passenger transportation services to State entities.
d.	Ensuring safety guidelines and requirements are met for staff and aircraft operations.
e.	Determining the appropriate number of aircraft and personnel required to meet the State's needs. Fleet mix studies shall be conducted periodically to determine the appropriate number and type of aircraft needed for aviation passenger transport and photogrammetry activities.
f.	Disposing of State aviation assets no longer needed. This may be accomplished through cooperation with the Department of Administration or independently. The net proceeds of any disposition under this subsubdivision shall be remitted to the State Treasurer for deposit in the General Fund.
g.	Conducting analyses to ensure efficient operation of transportation aircraft.
h.	Developing a long‑term fleet management plan.
(2)	Aviation Services Other Than Passenger Transport and Photogrammetry. – To provide management oversight for non‑passenger and non‑photogrammetry aircraft. These aircraft shall continue to be operated under the control of individual State agencies, but the Division shall assume management oversight of them in accordance with this subdivision. With respect to these programs and aircraft, the Division shall have the following powers and duties:
a.	Overseeing the management and maintenance of all aircraft owned or operated by the State.
b.	Reviewing aviation programs to ensure efficient operations across agencies, encouraging resource sharing, and considering contracting with private entities where appropriate.
c.	Examining aviation facilities and combining or closing facilities as needed to ensure efficient operations. The disposal of assets associated with closing facilities may be accomplished through cooperation with the Department of Administration or independently. The net proceeds of any disposition under this sub-subdivision shall be remitted to the State Treasurer for deposit in the General Fund.
d.	Convening staff from aviation programs to promote information sharing and efficiencies gained by coordinated operations.
(3)	General Powers and Duties. – The Division has the following powers and duties:
a.	Housing and operating flight and maintenance data systems pursuant to G.S. 143B‑364.3.
b.	Developing, maintaining, and promoting a safe and effective statewide aviation system.
c.	Conducting inspections to determine compliance with Division guidelines, notifying agencies in writing of aviation fleet deficiencies, and requiring action to correct safety issues.
d.	Acquiring, appraising, and disposing of all State aviation assets. This includes acting as the purchasing agent for State agencies seeking to purchase aircraft or other aviation assets.
e.	Assisting State agencies in the preparation of, and approving, requests for appropriations related to State aviation.
f.	Developing policies and procedures, including identification of aviation management tools such as data tracking programs, to guide management oversight of all State aviation resources.
g.	Exercising the powers and duties exercised by the Division of Aviation of the Department of Transportation prior to the enactment of this section.
"§ 143B‑364.3.  Electronic aviation resources management system.
The Aviation Management Division shall acquire and implement a single electronic data management system to manage all State aviation resources. The system shall electronically track flight, maintenance, and cost information consistently across all State aircraft. The Division shall use the system to produce reports that shall be used to ensure the safe, efficient operations of the State aviation fleet.
"§ 143B‑364.4.  Fees.
(a)	Fee for Passenger Transport and Photogrammetry Services. – The Aviation Management Division shall set fees for use by State agencies of passenger transport and photogrammetry services.
(a1)	Fee for Oversight of Other Aviation Programs. – The Aviation Management Division shall charge an annual fee to each State agency that operates an aviation program other than a passenger transport or photogrammetry program. The amount of this fee shall not exceed three percent (3%) of the total annual cost of operating the aviation program being assessed the fee.
(b)	Use of Fees. – Fees collected under this section shall be used to support Aviation Management Division operations, and the total amount of fees collected annually under this section shall not exceed the anticipated operating costs of the Division for the following fiscal year plus an amount sufficient to meet any anticipated one‑time expenses associated with inspections, maintenance, or related costs for the following fiscal year.
(c)	Not Subject to Administrative Procedure Act. – The setting of the fees authorized by this Section is not subject to Chapter 150B of the General Statutes.
"§ 143B‑364.5.  Report to Joint Legislative Commission on Governmental Operations.
The Aviation Management Division shall report each year by December 1 to the Joint Legislative Commission on Governmental Operations, the Subcommittees on Transportation of the House of Representatives and Senate Appropriations Committees, and the Fiscal Research Division of the General Assembly on the cost and efficiency of all State aviation programs.
"§ 143B‑364.6.  Duty of State agencies to supply information.
A State aviation program shall provide any data requested by the Aviation Management Division in order to facilitate the Division's aviation management oversight. If a State aviation program fails to supply this data, the Division may order the offending aviation program suspended and ground all program aircraft until the data is provided, so long as suspension will not immediately endanger life or property.
"§ 143B‑364.7.  Suspension of aviation programs.
If data supplied to the Aviation Management Division pursuant to G.S. 143B‑364.6 indicates noncompliance with the Division's policies and procedures, the Division may order the offending aviation program suspended and ground all program aircraft until the program is in compliance, so long as suspension will not immediately endanger life or property."

PART IV. EFFECTIVE DATE

SECTION 4.  Section 3 of this act becomes effective October 1, 2011. Subsection 2(g) of this act becomes effective July 1, 2010. The remainder of this act becomes effective October 1, 2010.