GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2013

S                                                                                                                                                    8

SENATE BILL 81

Rules and Operations of the Senate Committee Substitute Adopted 2/20/13

Corrected Copy 2/21/13

Finance Committee Substitute Adopted 2/27/13

Fifth Edition Engrossed 3/12/13

Corrected Copy 3/13/13

Corrected Copy 3/14/13

House Committee Substitute Favorable 6/4/13

 

Short Title:        Charlotte Regional Airport Authority.

(Local)

Sponsors:

 

Referred to:

 

February 14, 2013

A BILL TO BE ENTITLED

AN ACT to create the charlotte regional airport authority.

The General Assembly of North Carolina enacts:

SECTION 1.  This act shall be known and may be cited as the "Charlotte Regional Airport Authority Act."

SECTION 2.  There is hereby created the Charlotte Regional Airport Authority, which shall be a body corporate and politic, having the powers, authority, and jurisdiction hereinafter enumerated and such other and additional powers and authority as shall be conferred upon it by future acts of the General Assembly.

SECTION 3.  Unless the context requires otherwise, the following definitions apply throughout this act to the defined words and phrases and their cognates:

(1)        "Airport" means Charlotte Douglas International Airport in Mecklenburg County.

(2)        "Airport Facilities" means airport facilities of all kinds, including, but not limited to, landing fields, hangars, fixed base operations, shops, restaurants and catering facilities, terminals, buildings, automobile parking facilities, and all other facilities necessary, beneficial, and/or helpful for the landing, taking off, operating, servicing, repairing, and parking of aircraft, the loading, unloading, and handling of cargo and mail, express and freight, and the accommodation, convenience, and comfort of crews and passengers, together with related transportation facilities, all necessary, beneficial, and/or helpful appurtenances, machinery, and equipment, and all lands, properties, rights, easements, and franchises relating thereto and considered necessary, beneficial, and/or helpful by the Authority in connection therewith.

(3)        "Airport Property" means all the real property and improvements thereto designated as airport property on the Airport Layout Plan or Airport Development Plan of the Airport conditionally approved by the FAA on February 13, 2013.

(4)        "Appointing Authorities" means the entities described in subdivisions (1) through (11) of Section 4(a) of this act who are empowered to appoint Members of the Authority and referred to collectively as "Appointing Authorities" and individually as "Appointing Authority."

(5)        "Authority" means the Charlotte Regional Airport Authority created by this act or, if such Authority is abolished or otherwise ceases to exist, the authority, board, body, commission, or other entity succeeding to the principal functions thereof.

(6)        "FAA" means the Federal Aviation Administration or any successor agency.

(7)        "Member" means an individual who is appointed to the Authority, as provided by this act.

(8)        "Servants" means accountants, auditors, agents, contractors design professionals, attorneys, and other persons and entities whose services may from time to time be deemed by the Authority to be necessary, beneficial, or helpful.

SECTION 4.(a)  The Authority shall consist of 11 Members. In order to effectuate a seamless transfer of the Airport from the ownership and operation by the City of Charlotte to the ownership and operation by the Authority, and to give the Appointing Authorities time to consider candidates for and to appoint members as provided herein, the initial Members shall be the members of the Airport Advisory Committee of the City of Charlotte who shall serve only until seven Members shall have been appointed by the Appointing Authorities and sworn in. The powers of the initial Members shall be limited to ministerial acts and no employment or management contracts shall be awarded or entered into by the initial Members and any such contracts as the initial Members shall award or enter into shall not be effective or binding on the Members selected by the Appointing Authorities. The Appointing Authorities are encouraged to appoint members without untoward delay who, when practical, have experience in aviation, logistics, construction and/or facilities management, law, accounting, and/or finance; provided that the appointing authorities under subdivisions (1) through (8) of this subsection may only appoint persons who have experience in aviation, transportation logistics, construction, and/or facilities management. The members shall be appointed as follows:

(1)        One shall be a registered voter of the City of Charlotte appointed by the Charlotte City Council.

(2)        One shall be a registered voter of the City of Charlotte appointed by the Mayor of the City of Charlotte.

(3)        One shall be a registered voter of the County of Mecklenburg appointed by the Board of Commissioners of Mecklenburg County.

(4)        One shall be a registered voter of the County of Cabarrus appointed by the Board of Commissioners of Cabarrus County.

(5)        One shall be a registered voter of the County of Gaston appointed by the Board of Commissioners of Gaston County.

(6)        One shall be a registered voter of the County of Iredell appointed by the Board of Commissioners of Iredell County.

(7)        One shall be a registered voter of the County of Lincoln appointed by the Board of Commissioners of Lincoln County.

(8)        One shall be a registered voter of the County of Union appointed by the Board of Commissioners of Union County.

(9)        One shall be a registered voter in North Carolina in the County of Mecklenburg, appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives.

(10)      One shall be a registered voter in the County of Mecklenburg nominated by the Charlotte City Council appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate.

(11)      One at-large member who shall be appointed by majority vote of the other members.

SECTION 4.(a1)  No person may be appointed as a member who:

(1)        Is employed by a Servant of the Authority as defined in Section 3 of this act;

(2)        Is a tenant or employee of a tenant of an airport owned, operated, or controlled by the Authority, or other commercial user or employee of a commercial user of any airport operated by the Authority; or

(3)        Has been convicted of a felony or a crime of moral turpitude.

SECTION 4.(b)  Members shall serve four-year terms and may serve up to a total of two successive four-year terms. A member who has reached this limit may not be reappointed to the Authority except after a lapse of four years following the most recent term served. In the event a member is appointed to fill an unexpired term, and at least two years of the unexpired term remain to be served, such appointment shall be counted in applying the two-term limit, otherwise it shall not be counted. In order to ensure that the terms of all Members of the Authority do not expire at the same time, the initial terms of the Members of the Authority appointed by the Counties of Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, Union, and one of the two at-large members shall be for two years. All initial four-year terms expire June 30, 2017, and all initial two-year terms expire June 30, 2015.

SECTION 4.(c)  Any vacancy occurring among the membership of the Authority shall be filled within 60 days after notice thereof by the appointment of a successor by the Appointing Authority of the previous member. Such successor member shall serve for the remainder of the unexpired term.

SECTION 4.(d)  Members and their successors shall take and subscribe to an oath of office before an officer authorized to administer oaths, which oath shall be filed with the Authority.

SECTION 4.(e)  Any Member may be suspended or removed from office by that member's Appointing Authority or a majority vote of the other Members for cause affecting that Member's duties and responsibilities as a Member; for misfeasance, malfeasance, or nonfeasance in office; or for conduct tending to undermine any decisions of the Authority, or for conduct exposing the Authority to liability for damages.

SECTION 4.(f)  Except for malfeasance, Members shall not be personally liable, in any manner, for their acts or omissions as Members.

SECTION 4.(g)  Each Member may continue to serve until a successor has been duly appointed and qualified, but not for more than 60 days beyond the end of the term.

SECTION 5.(a)  The organization and business of the Authority shall be conducted as provided in this act.

SECTION 5.(b)  Members shall constitute the governing board of the Authority and may, among other things and from time to time, adopt suitable bylaws not inconsistent with the provisions of this act.

SECTION 5.(c)  The Authority shall appoint from its Members a chair, vice-chair, and such other officers as it may from time to time deem necessary, beneficial, and/or helpful for the orderly conduct of its business. The term of office of the chair and vice-chair is one year.

SECTION 5.(d)  Each Member, including the chair, shall have one vote. A majority of the members shall constitute a quorum, and, unless otherwise provided in this act, all actions of the Authority shall be determined by a majority vote of the Members present and voting in a duly called meeting at which a quorum is present.

SECTION 5.(e)  The Authority shall hold meetings at least monthly at such times and places as it from time to time may designate and at such other times on the call of the chair or by seven members of the Authority; provided a monthly meeting need not be held if it is determined by the chair or seven members that such meeting is not required. Notice of meetings shall be provided as required by Article 33C of Chapter 143 of the General Statutes.

SECTION 5.(f)  Members may receive payment or reimbursement for travel, lodging, and meal expenses incurred in transacting business on behalf of the Authority. Members may also receive free parking at any airport owned, leased, subleased, or controlled by the Authority, which members may use for official purposes during the respective member's term of office.

SECTION 5.(g)  The fiscal year of the Authority shall begin on July 1 and end on June 30. On or before May 15 of each year, the Authority shall prepare and adopt a proposed budget for the next ensuing fiscal year and deliver copies of such proposed budget to the Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, and Union County Boards of Commissioners and the Charlotte City Council. In order to effectuate a seamless transfer of the Airport from the ownership and operation by the City of Charlotte to the ownership and operation by the Authority, the initial budget of the Authority shall be the budget established by the City Council of the City of Charlotte for the Airport for the period July 1, 2013, through June 30, 2014, until the initial budget shall be revised by the Authority. The financial affairs of the Authority shall be governed by the Local Government Finance Act.

SECTION 5.(h)  All meetings and closed sessions of the Authority shall be conducted in accordance with Article 33C of Chapter 143 of the General Statutes as it may be amended or in accordance with any successor statute.

SECTION 6.(a)  The Authority shall constitute a body, both corporate and politic, and shall have the power and authority to do the following:

(1)        Adopt and from time to time revise an official seal.

(2)        Maintain an office or offices at such place or places as it may designate within Mecklenburg County only.

(3)        Purchase, acquire, develop, establish, construct, own, control, lease, equip, improve, administer, maintain, operate, and/or regulate airports and/or landing fields for the use of airplanes and other aircraft and all facilities incidental thereto, within the limits of Mecklenburg County; and for any of such purposes, purchase, acquire, own, develop, hold, lease, sublease, and operate real and/or personal property comprising such airports.

(4)        Purchase real and personal property.

(5)        Sue and be sued in the name of the Authority.

(6)        In addition to the powers granted by subdivision (3) of this subsection, (i) upon the consent of the governing bodies of such airports, to acquire by purchase or otherwise and to hold lands for the purpose of constructing, maintaining, and/or operating existing airports in Cabarrus, Gaston, Iredell, Lincoln, and Union Counties and (ii) upon the consent and agreement of the Board of county commissioners of Cabarrus, Gaston, Iredell, Lincoln, and Union Counties, to acquire land and construct, make improvement, extension, enlargement, or equipping of future airport facilities in such counties.

(7)        Charge and collect fees, royalties, rents, and/or other charges, including fuel flowage fees, for the use and/or occupancy by persons of the airports and other property owned, leased, subleased or controlled by the Authority or for services rendered in the operation thereof.

(8)        Make all reasonable rules and regulations, and policies as it may from time to time deem to be necessary, beneficial or helpful for the proper maintenance, use, occupancy, operation and/or control of any airport or airport facility owned, leased, subleased, or controlled by the Authority and provide and enforce civil and criminal penalties for the violation of such rules, regulations and/or policies; provided that such rules, regulations, policies, and penalties are not in conflict with any applicable law rules or regulation of the State of North Carolina, the United States, or any agency, department, or subdivision of either of them, including the rules and regulations of the FAA or the Transportation Security Administration.

(9)        Sell, exchange, lease, sublease, or otherwise dispose of any property, real or personal, belonging to the Authority and not needed by the Authority to operate any airport owned or operated by it or to generate revenues to pay debt obligations of the Authority, or grant easements over, through, under, or across any real property belonging to the Authority, or donate to another governmental entity within North Carolina or to the United States any surplus, obsolete, or unused personal property; provided Article 12 of Chapter 160A of the General Statutes does not apply and is not applicable to any such sale, exchange, lease, sublease, grant, donation, or other disposition.

(10)      Purchase such insurance and insurance coverages as the Authority may from time to time deem to be necessary, beneficial, or helpful.

(11)      Deposit, invest, and/or reinvest any of its funds as provided by the Local Government Finance Act for the deposit or investment of unit funds.

(12)      Issue revenue bonds and/or refunding revenue bonds pursuant to the State and Local Government Revenue Bond Act, Article 5 of Chapter 159 of the General Statutes.

(13)      Purchase any of its outstanding bonds or notes.

(14)      Operate, own, lease, sublease, control, regulate, and/or grant to others the right to operate on any airport premises owned, operated, or controlled by the Authority, general aviation terminal and fixed base operations, aircraft deicing equipments and systems, restaurants, snack bars and vending machines, food and beverage dispensing outlets, rental car services, catering services, novelty shops insurance sales, advertising media, merchandise outlets, motels, hotels, barber shops, automobile parking and storage facilities, automobile service stations, garage service facilities, motion picture shows, personal service establishments, and/or all other types of facilities, activities, and enterprises as may be directly or indirectly related to the maintenance and/or furnishing of public commercial service and/or general aviation airport facilities.

(15)      Accept grants of money and/or materials or property of any kind for any existing or future airport facilities from the State of North Carolina, the United States, or any agency, department or subdivision of either of them, including the FAA or from any private agency, entity, or individual, upon such terms and conditions as may be imposed, and enter into contracts and grant agreements with the FAA and/or with the State of North Carolina or any of its agencies, departments or subdivisions, in the capacity of sponsor or cosponsor of any airport development project involving the acquisition, construction, development, reconstruction, improvement, extension, enlargement, or equipping of any existing or future airport facilities.

(16)      Employ and fix the compensation of an Executive Director, who shall serve at the pleasure of the Authority or pursuant to the terms of an employment contract awarded by the Authority and who shall manage the affairs of the Authority under the supervision of the Authority.

(17)      Employ, or provide for the employment of such employees, including law enforcement officers, as the Authority may from time to time deem to be necessary, beneficial, or helpful. All such employees shall be employees at will, and no such employee shall have a defined or definite term of employment, an expectation of continued employment, or an expectation of continued indefinite employment.

(18)      Employ, hire, retain, or contract with such Servants whose services may from time to time be deemed by the Authority to be necessary, beneficial, or helpful. In order to effectuate a seamless transfer of the Airport from the ownership and operation by the City of Charlotte to the ownership and operation by the Authority, the Authority will honor and be bound by all existing contracts between the City and such Servants as presently are engaged to assist the City with respect to the Airport.

(19)      Make or cause to be made such surveys, investigations, studies, borings, maps, plans, drawings, and/or estimates of cost and revenues as the Authority may from time to time deem necessary, beneficial, or helpful and prepare and adopt a comprehensive plan or plans for the location, construction, improvement, and development of any project.

(20)      Undertake and/or enter into leases, subleases, agreements, easements, and contracts, and/or grant concessions, with respect to alternative energy, energy conservation, energy reduction, and/or renewable energy activities, programs, projects, and/or ventures, and the administration, construction, development, enlargement, equipment, improvement, maintenance, management, operation, regulation, and/or repair thereof.

(21)      Exercise the power of eminent domain, pursuant to Article 3 of Chapter 40A of the General Statutes to expand the boundaries of an airport already owned, operated, or controlled by the Authority or to comply with the requirements of the United States and the FAA with respect to such airport, but only for public use as a public airport purpose. For the purposes of Chapter 40A of the General Statutes, the Authority is a public condemnor under G.S. 40A-3(c). In the exercise of its authority of eminent domain for the acquisition of property to be used for public airports, the authority is authorized to use the procedure and authority prescribed in Article 9 of Chapter 136 of the General Statutes, as now written or hereafter amended. For the purposes of this paragraph, whenever a reference is made in Article 9 of Chapter 136 of the General statutes to an official of the State of North Carolina, the Executive Director of the Authority shall be deemed to be such an official. The exercise of the power of eminent domain of the authority shall be restricted as follows:

a.         No such power of eminent domain shall exist except as to property that is contiguous to property of an airport already owned, operated, or controlled by the Authority; provided that the contiguity of such property to existing airport property shall not be deemed to be interrupted by a railroad or public roadway or waterway running with or adjacent to the boundary of such existing airport property;

b.         No such power of eminent domain shall be used for a purpose that is not necessary for the operation or expansion or to comply with FAA regulations or requirements for or provide protection from or to ameliorate noncompatible land uses of property that is contiguous to property of an airport already owned, operated, or controlled by the Authority;

c.         No such power of eminent domain shall exist to condemn property for such uses as hotels, motels, restaurants, or industrial parks; and

d.         No such power of eminent domain shall exist with respect to property already publically owned and dedicated to public use.

(22)      Exercise all of the powers conferred by Chapter 63 of the General Statutes or any successor Chapter or law.

SECTION 6.(b)  The Authority has the same exemptions with respect to payment of taxes and license fees as provided for municipal corporations by the laws of the State of North Carolina.

SECTION 7.(a)  The Authority may acquire from the County of Mecklenburg and the City of Charlotte, by agreement therewith, and such County and City may grant and convey, either by gift or for such consideration as allowed by federal law and as it may be deemed wise, any real and/or personal property which it now owns or may hereafter acquire, and which may be necessary, beneficial, or helpful for the construction, development, operation, and/or maintenance of any airport or facilities of same located in the County of Mecklenburg. If any such airport ceases to operate or if the Authority is dissolved or otherwise ceases to exist, any applicable real property of the County of Mecklenburg or the City of Charlotte conveyed or transferred to the Authority under this act shall revert to the grantor.

SECTION 7.(b1)  All right title and interest of the City of Charlotte in and to the Airport Property and Charlotte Douglas International Airport shall be deemed to have been transferred to the Authority as a matter of law upon the enactment of this act and no action by the City shall be necessary to effect such transfer nor to prevent such transfer. Thereafter this act shall serve as evidence of chain of title of the Authority to such Airport Property. The transfer is deemed to include the Airport Property and all other property held or owned by the City of Charlotte with respect to the Airport, real or personal, tangible or intangible, and includes all cash and cash equivalents and checking, investment and demand deposit bank accounts held by the City pertaining to or generated from revenues of the Airport, including, without limiting the generality hereof, amounts on deposit in or with respect to the Discretionary Fund, the Cannon Fund, the Revenue Fund, the Operating Fund, the Bond Funds, the Debt Service Funds, the Construction Funds, the Capital Projects Funds, the Discretionary Fund, Passenger Facility Charges, Contract Facility Charges, and all other funds and accounts of the City with respect to the Airport. Upon such transfer from the City to the Authority, the Authority will be and is hereby deemed to have assumed and become successor to the City of Charlotte, and is hereby deemed to have assumed and become successor to the City with respect to the FAA Part 139 Certificate, the FAA Sponsor's Assurances entered into by the City with the FAA, and all liabilities of the City with respect to and arising out of its ownership and operation of the Airport, including the City's obligations to Servants and employees of the Authority and bondholders of the City's General Airport Revenue Bonds, and including, without limiting the generality hereof, the obligations under the Revenue Bond Order adopted November 18, 1985, and all Series Resolutions issued under the Bond Order, the Special Facility Bond Order adopted May 11, 1987, and all Series Resolutions adopted under the Special Facility Bond Order, and the Taxable Special Facility Revenue Bonds (Consolidated Car Rental Facilities Project) Series 2011 General Trust Indenture and the Series Indenture, Number 1, both dated November 1, 2011, and all agreements and understandings with respect to Trustee(s) or paying agent(s) of the City's Airport Revenue Bonds, letters of credit or other credit facilities of the City with respect to Airport Revenue Bonds, and all leases, licenses, options to purchase, and other encumbrances on the Airport Property, whether or not those encumbrances are recorded. Upon transfer of the Airport Property, the Authority assumes and becomes the successor to the City of Charlotte with respect to all rights, duties, and obligations of the City of Charlotte in any commercial or development agreements pertaining to or related to the Airport Property that are in effect at the time of the transfer.

SECTION 7.(b2)  In order to effectuate a seamless transfer of the Airport from the ownership and operation by the City of Charlotte to the ownership and operation by the Authority, the Authority shall initially:

(1)        Honor and be bound by all pending or executory land or real property purchase contracts by the City of Charlotte with respect to property and lands to be acquired for and in connection with the Airport.

(2)        Honor and be bound by all existing rules and regulations of the Aviation Department of the City of Charlotte with respect to the Airport including the Airport Security Plan until such rules and regulations shall be amended by the Authority in accordance with the provisions of this act.

(3)        Honor and be bound by all existing contracts of the City of Charlotte with third-party concessionaires and management contractors with respect to the Airport.

(4)        Honor and be bound by all existing contracts and grant agreements of the City of Charlotte with respect to the Airport.

(5)        Be deemed as a matter of law to have appointed as its initial Executive Director the Aviation Director of the City of Charlotte as of February 14, 2013, with initial compensation and benefits of the initial Executive Director, being the same compensation as was being received from the City of Charlotte on February 14, 2013, and the initial Executive Director shall be entitled as a matter of law to the continuation of the rights and benefits extended to him under the existing retirement system of the City of Charlotte.

(6)        Be deemed as a matter of law to have employed as the initial employees of the Authority the employees of the City of Charlotte assigned to the City's Aviation Department and under the supervision of the Aviation Director as of the date of enactment of this act, and the initial compensation and benefits of the initial employees of the Authority, shall be the compensation and benefits they were receiving from the City of Charlotte as of the date hereof; and the initial employees shall be entitled as a matter of law to the continuation of the rights and benefits extended to them under the existing retirement system of the City of Charlotte.

(7)        Be deemed as a matter of law to have adopted as the initial the employment and human resources policies of the Authority, such policies of the City of Charlotte as they apply to employees of the Airport, and the Authority shall be deemed to have adopted the current employee handbook of the City of Charlotte applicable to the Airport until the Authority adopt different policies or a different employee handbook.

(8)        Honor and be bound by all existing contracts of the City with respects to the matters described in subdivision 6(a)(20) of this act.

SECTION 7.(b3)  Upon the request of the Executive Director of the Authority, the City of Charlotte shall continue to provide such administrative services to the Authority as it currently provides and shall receive as compensation therefor from the Authority such amount as is appropriate for such services as provided by OMB Circular A-87 until the Authority shall direct the City to terminate such services.

SECTION 7.(c)  Property needed by the Authority for any airport, landing field, or facility may be acquired by the Authority by gift, devise, or purchase. Aviation easements needed by the Authority for any airport, landing field, or facility may likewise be acquired by gift, devise, or purchase.

SECTION 7.(d)  Any lands acquired, owned, controlled, or occupied by the Authority shall and/or are hereby declared to be acquired, owned, controlled, and occupied for a public purpose.

SECTION 7.(e)  The Authority is not authorized to levy any tax.

SECTION 7.(f)  In consideration of the transfer of the Airport Property and Airport assets and liabilities to the Authority pursuant to Section 7(b) of this act, and subject to the approval of the FAA, the Authority shall agree to pay to the City as compensation therefor, the amount equal to the unreimbursed or unrecovered cost to the City of acquiring the Airport Property that was not ultimately paid with Airport revenues or funds or the proceeds of federal, State, or private grants. Any amount to be paid by the Authority to the City pursuant to this subsection shall be paid from future revenues from the operation of the Airport by the Authority remaining after payment by the Authority in the year of such payment all costs and expenses of the Airport including the payment of principal installments and interest on all bonds outstanding and other indebtedness of the Authority with respect to the Airport. Upon entering into such agreement by the Authority any claim by the City of Charlotte on account of transfer of property to the Authority pursuant to Section 7(b) of this act or otherwise, is hereby extinguished.

SECTION 8.  The Authority shall make annual reports to the Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg, and Union County Boards of Commissioners and the Charlotte City Council setting forth a summary of its general operations and transactions conducted by it pursuant to this act.

SECTION 9.  All rights, powers, and authority given to the counties and/or municipalities by the statutes of North Carolina, which may now be in effect, or which may be enacted in the future, relating to the development, operation, maintenance, regulation, and/or control of municipal or other governmental airports and the regulations of aircraft are hereby vested in the Authority.

SECTION 10.  The Authority is hereby expressly authorized to make and enter into contracts, leases, subleases, conveyances, and other agreements with any political subdivision, agency, department, or instrumentality of this State; any agency, department, or subdivision of the United States; or any other legal entity or person for the purpose of carrying out the provisions of this act.

SECTION 11.  The powers of the Authority created by this act shall be construed liberally in favor of the Authority. No listing of powers included in this act is intended to be exclusive or restrictive, and the specific mention of, or failure to mention, particular powers in this act shall not be construed as limiting in any way the general powers of the Authority as stated in Section 6(a) of this act. It is the intent of this act to grant the Authority full power and right to exercise all authority necessary for the effective operation and conduct of the Authority. It is further intended that the Authority should have all implied powers necessary or incidental to carrying out the expressed powers and the expressed purposes for which the Authority is created. The fact that this act specifically states that the Authority possesses a certain power does not mean that the Authority must exercise such power unless this act specifically so requires.

SECTION 12.  G.S. 66-58(a) shall not apply to the Authority or a lessee or sublessee of it.

SECTION 13.  If any provision of this act or its application is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.

SECTION 14.  This act is effective when it becomes law.