August 30, 2013 Practice Group(s): Public Policy and Law New Commission to Preside Over Charlotte Douglas International Airport By Collin W. Brown, Amy H. Fullbright and Walter D. Fisher In the waning hours of the 2013 legislative session, the North Carolina General Assembly passed SB 380, a new bill which creates a 13-member commission to operate Charlotte Douglas International Airport, as well as a separate new five-member Oversight Committee. The new Airport Commission (the “Commission”) will include three members appointed by Charlotte mayor Patsy Kinsey, four members appointed by the Charlotte City Council, and one each by the commissioners of Mecklenburg, Gaston, Cabarrus, Iredell, Lincoln and Union Counties. The Commission is charged with overseeing the airport’s daily operations, finances, budget, purchasing and disposing of property, and hiring and firing the aviation director along with other employees. The bill also creates a Charlotte Douglas International Airport Oversight Committee (the “Oversight Committee”) with five members, one each appointed by the Governor, the Senate President Pro Tempore, the Speaker of the House, the Mayor of Charlotte and the Charlotte City Council. The Oversight Committee is charged with monitoring the Commission’s activities to ensure that the airport continues to be “a best performing and lowest cost major hub airport.” The airport’s finances are kept separate from those of the State and local governmental bodies, and airport contracts and payments are strictly for services and uses needed by the airport, The legislation contemplates that the Oversight Committee will provide regular reports and recommendations to the Mayor of Charlotte and the Charlotte City Council. Last, the approval of bond issuance and eminent domain authority for airport needs will continue to be vested solely in the City of Charlotte under SB 380. The Act does not affect property titles. As a result, under the new legislation, ownership of the airport property remains with the City of Charlotte. Over the course of the session, the Mecklenburg County delegation attempted to come to a mutual agreement with the City of Charlotte on the best way to manage the airport. Various bills were presented. One of those bills passed earlier in the session created an 11-member airport authority, allowing the city to appoint only four of its members. However, due to a restraining order issued by a judge in Charlotte, the implementation of this previously- passed legislation was blocked. As a result, as the legislative session drew to a close, the General Assembly passed SB 380.SB 380 passed third reading in both the House and the Senate on July 26, 2013. It did not require action by the Governor and thus was chaptered as a session law the same day. On August 1, 2013, Mecklenburg County Superior Court Judge Robert Ervin ruled that the proposed transfer of control from the City of Charlotte to the Commission must be approved by the Federal Aviation Administration (FAA). The FAA must now determine if the airport’s current operating certificate would still be valid under the Commission or if the issuance of a new certificate will be required. It is unclear how long a decision from the FAA will take, some say weeks, others say up to a year and half. New Commission to Preside Over Charlotte Douglas International Airport Authors: Collin W. Brown collin.brown@klgates.com +1.704.331.7531 Amy H. Fullbright marissa.farrell@klgates.com +1.919.831.7003 Walter D. Fisher walter.fisher@klgates.com +1.704.331.7544 Marissa C. Farrel contributed to this article Anchorage Austin Beijing Berlin Boston Brisbane Brussels Charleston Charlotte Chicago Dallas Doha Dubai Fort Worth Frankfurt Harrisburg Hong Kong Houston London Los Angeles Melbourne Miami Milan Moscow Newark New York Orange County Palo Alto Paris Perth Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco São Paulo Seattle Seoul Shanghai Singapore Spokane Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington K&L Gates practices out of 48 fully integrated offices located in the United States, Asia, Australia, Europe, the Middle East and South America and represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals. For more information about K&L Gates or its locations, practices and registrations, visit www.klgates.com. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. ©2013 K&L Gates LLP. All Rights Reserved. 2