A BILL TO BE ENTITLED
AN ACT to reform the management and oversight of state‑owned motor vehicles, as recommended by the joint legislative program evaluation oversight committee, based on recommendations from the program evaluation division.
The General Assembly of North Carolina enacts:
SECTION 1.  Update registration records. – No later than October 1, 2013, all State agencies and institutions shall update the vehicle registration records with the Department of Transportation, Division of Motor Vehicles, for all of the State‑owned vehicles under their management or control. As part of this update, all State agencies and institutions shall do the following:
(1)	Establish a standard naming convention for how the agency or institution name will be listed on all vehicle registration and titling forms.
(2)	Submit the standard naming convention to the State Auditor.
(3)	Conduct an internal reconciliation of the discrepancies between permanent license plates registered with the Division of Motor Vehicles and their vehicle records to identify permanent license plates that are inactive or lost.
(4)	Update vehicle registration information maintained by the Division of Motor Vehicles by (i) notifying the Division of Motor Vehicles which vehicle records should be updated, based on the standard naming convention established under subdivision (1) of this section and (ii) returning or cancelling inactive or lost permanent license plates.
(5)	Report to the State Auditor when updated vehicle registration information has been submitted to the Division of Motor Vehicles and provide a copy of the submission to the State Auditor.
The Office of the State Auditor shall provide an independent review of this reconciliation process and shall report to the General Assembly on any discrepancies found by submitting any discrepancies found to the Joint Legislative Program Evaluation Oversight Committee.
SECTION 2.  Transfer ownership. – All State agencies and institutions that own the passenger vehicles identified by the Program Evaluation Division in "Ineffective Policies and Diffuse Oversight Result in Inefficient Use of State‑Owned Vehicles," Report Number 2012‑06, shall transfer the ownership of those vehicles to the Department of Administration as required by G.S. 143‑341(8)i.3. The Department of Administration, Division of Motor Fleet Management, shall report to the Joint Legislative Commission on Governmental Operations on the status of these transfers no later than November 15, 2013.
SECTION 3.  Monitor rate structure. – The Department of Administration, Division of Motor Fleet Management, shall monitor the new rate structure that was effective January 1, 2012, through the end of the 2013 calendar year and report on its effects on assigned vehicle utilization and vehicle replacement to the Senate Appropriations Committee on General Government and Information Technology and the House Appropriations Subcommittee on General Government on or before February 14, 2014. The report shall contain the following information related to implementation:
(1)	Expenditure reductions and increases for each State agency and institution resulting from changing the rate structure.
(2)	Increases or decreases in the mileage rate.
(3)	Effects on assigned vehicle utilization by State agencies and institutions.
(4)	Effects on cash balances for Motor Fleet Management's internal services fund, operating expenditures, and vehicle replacement expenditures.
SECTION 4.  Improve management practices. – The Department of Administration, Division of Motor Fleet Management, shall improve its management practices by taking the following actions:
(1)	Modify the Motor Fleet Management fleet management information system to collect vehicle frequency of use data for all State‑owned passenger vehicles.
(2)	Perform a daily demand analysis on motor pool vehicle usage to determine which vehicles can be eliminated.
(3)	Replace aging vehicles with mileage exceeding the 125,000‑mile replacement threshold or excessive maintenance costs.
(4)	Enhance training and resources for vehicle coordinators by offering ongoing training opportunities, developing a handbook describing their role and responsibilities, and establishing a vehicle coordinators' user group.
(5)	Conduct periodic customer satisfaction surveys of assigned and motor pool vehicle users.
The Department of Administration, Division of Motor Fleet Management, which may be the Division of State Fleet Management by the time of this report, shall report on the implementation of improvements to their management practices to the Senate Appropriations Committee on General Government and Information Technology and the House Appropriations Subcommittee on General Government on or before February 14, 2014.
SECTION 5.  Statewide fleet management information system plan. – (a) No later than October 1, 2013, the State Controller shall present to the Joint Legislative Program Evaluation Oversight Committee an implementation plan, including a time line, a cost estimate, and a continuing funding strategy, to create and operate a statewide fleet management information system to which all State agencies and institutions would be required to report identification, utilization, and direct cost data. In formulating an implementation plan, the Office of the State Controller shall do the following:
(1)	Conduct a detailed needs assessment, including a complete vehicle inventory using the information in Report Number 2011‑07 from the Program Evaluation Division of the General Assembly as a starting point.
(2)	Consult with State agencies and institutions that own vehicles.
(3)	Review the existing fleet management information systems used by State agencies and institutions.
(4)	Examine fleet management information systems used by other state governments.
(5)	Determine whether the State should (i) expand a fleet management information system currently used by a State agency or institution for statewide use, (ii) develop a new system in‑house, or (iii) purchase a new system from an outside vendor.
(6)	Determine the vehicle identification, utilization, and direct cost data that State agencies and institutions will be required to enter in the system.
(7)	Determine fees or other methods to pay the initial and ongoing costs for the system.
The Office of Information Technology Services shall assist and advise the Office of the State Controller in carrying out subdivisions (3) through (5) of this section.
SECTION 5.(b)  The sum of ten thousand dollars ($10,000) is transferred from the internal service fund for Motor Fleet Management in the Department of Administration to the Office of State Controller and is appropriated for the purpose of conducting the study required under this section. Any funds remaining after the completion of this study shall revert back to the internal service fund.
SECTION 6.  Telematics test. – (a) The Department of Administration, Division of Motor Fleet Management, shall, during fiscal year 2013‑2014, perform a test of the effectiveness and efficiency of telematics services. To this end, the Division shall install telematics packages in a sampling of vehicles under its control. The sample of vehicles chosen shall be large enough and varied enough to help the Division test whether or not the use of telematics would result in savings to the State. As part of this test, the Division shall include both basic telematics packages and comprehensive telematics packages, which include safety alerts and remote diagnostic reporting, so the Division may assess the costs of both against the potential savings through new policies that might be implemented with improved data collection.
The Division of Motor Fleet Management, which will be the Division of State Fleet Management by the time of this report, shall report on the status of telematics testing to the Senate Appropriations Committee on General Government and Information Technology, the House Appropriations Subcommittee on General Government, and the Joint Legislative Program Evaluation Oversight Committee on or before September 15, 2014. The report should include the following information:
(1)	A description of the telematics installation test and whether it strengthened accountability for vehicle usage.
(2)	A recommendation on which telematics service package (basic or comprehensive) should be implemented.
(3)	A description of vehicle use policy modifications explaining how telematics information will be used by the Division of State Fleet Management.
(4)	An analysis of how telematics monitoring can be integrated with the Division of State Fleet Management's fleet information system.
(5)	The annual cost for full telematics implementation and estimated cost savings from reduced vehicle utilization and other effects of telematics.
(6)	The installation costs for full telematics implementation.
(7)	A time line for installing telematics on the active Division of State Fleet Management's fleet.
The Department of Administration shall not implement telematics more broadly than the test directed by this section prior to approval by the General Assembly.
SECTION 6.(b)  In addition to testing telematics on its own passenger vehicles, the Department of Administration, Division of Motor Fleet Management, shall convene an advisory group with vehicle managers throughout State government to discuss the use of telematics on all State‑owned vehicles.
SECTION 7.  Positions created. – Effective October 1, 2013, the following receipt‑supported positions are created within the Department of Administration, Division of Motor Fleet Management:
(1)	Two positions to perform statewide supervision of vehicles owned by agencies and institutions and to provide technical assistance in implementing fleet management best practices.
(2)	Two positions to collect and analyze vehicle information, maintain a vehicle inventory, and operate the statewide fleet management information system.
(3)	One accounting position to manage fee collection and other financial aspects of statewide supervision.
SECTION 8.  Create Division of State Fleet Management. – (a) The Division of Motor Fleet Management of the Department of Administration is renamed the Division of State Fleet Management and is tasked with the additional duties provided in this act.
SECTION 8.(b)  G.S. 143‑341 is amended by adding a new subdivision to read as follows:
"(12)	State Fleet Management:".
SECTION 8.(c)  There is created in Chapter 20 of the General Statutes a new Article 18 to be entitled "State‑Owned Motor Vehicles." All recodified statutory locations that are listed in subsection (d) of this section within Chapter 20 of the General Statutes are within the new Article 18.
SECTION 8.(d)  The introductory paragraph of G.S. 143‑341(8)i. is recodified as G.S. 143‑341(12)d. The following sub‑sub‑subdivisions of sub‑subdivision i. of G.S. 143‑341(8) are recodified as follows:
	Current Statutory Location	Recodified Statutory Location
	G.S. 143‑341(8)i.1.	G.S. 143‑341(12)e.
	G.S. 143‑341(8)i.2.	G.S. 143‑341(12)f.
	G.S. 143‑341(8)i.2a.	G.S. 20‑410
	G.S. 143‑341(8)i.2b.	G.S. 20‑411
	G.S. 143‑341(8)i.2c.	G.S. 143‑341(12)p.
	G.S. 143‑341(8)i.3.	G.S. 143‑341(12)g.
	G.S. 143‑341(8)i.4.	G.S. 143‑341(12)h.
	G.S. 143‑341(8)i.5.	G.S. 20‑415
	G.S. 143‑341(8)i.6.	G.S. 143‑341(12)k.
	G.S. 143‑341(8)i.7.	G.S. 143‑341(12)l.
	G.S. 143‑341(8)i.7a.	G.S. 20‑417
	G.S. 143‑341(8)i.8.	G.S. 143‑341(12)c.
	G.S. 143‑341(8)i.9.	G.S. 143‑341(12)m.
	G.S. 143‑341(8)i.10.	G.S. 143‑341(12)n.
	G.S. 143‑341(8)i.11.	G.S. 143‑341(12)o.
SECTION 8.(e)  G.S. 20‑39.1(a) reads as rewritten:
"(a)	Except as otherwise provided in this section, the executive head of every department of State government and every county, institution, or agency of the State shall mark every motor vehicle owned by the State, county, institution, or agency with a statement that the vehicle belongs to the State, county, institution, or agency. The requirements of this subsection are complied with if:
(1)	The vehicle has imprinted on the license plate, above the license number, the words "State Owned," the vehicle has affixed to the front the words "State Owned," and the vehicle is marked to indicate the State agency or institution that owns or operates the vehicle;
(2)	In the case of a county, the vehicle has painted or affixed on its side a circle not less than eight inches in diameter showing a replica of the seal of the county; or
(3)	In the case of vehicles assigned to members of the Council of State, the vehicle has imprinted on the license plate the license number assigned to the appropriate member of the Council of State pursuant to G.S. 20‑79.5(a); a member of the Council of State shall not be assessed any registration fee if the member elects to have a State‑owned motor vehicle assigned to the member designated by the official plate number."
SECTION 8.(f)  Article 18 of Chapter 20 of the General Statutes, created by subsection (c) of this section and as amended by subsection (d) of this section, reads as rewritten:
"Article 18.
"State‑Owned Motor Vehicles.
"§ 20‑401.  Definitions.
As used in this Article, the following definitions apply:
(1)	Division of State Fleet Management. – The Division of State Fleet Management in the Department of Administration.
(2)	Economically suitable transportation. –  The most cost‑effective standard vehicle in the State motor fleet, unless special towing provisions are required by an agency.
(3)	Motor vehicle. – As defined for this Chapter in G.S. 20‑4.01.
(4)	Passenger motor vehicle. – Any automobile sedan, station wagon, pickup truck, sport utility vehicle, or passenger‑type minivan.
(5)	State‑owned. – Owned by any State agency, entity, or institution, regardless of the funds used to purchase.
"§ 20‑402.  Compliance with State vehicle policies required by all State entities.
All State agencies, departments, and institutions shall do the following:
(1)	Comply with the provisions of this Article.
(2)	Comply with all statewide policies and rules for fleet management and operation adopted by the Department of Administration.
(3)	Maintain and report up‑to‑date information required by the Department of Administration about each employee authorized to commute in a State‑owned motor vehicle, including home‑to‑workstation commuting distance, each duty that requires commuting, and a justification for authorizing the use of a State‑owned vehicle for commuting.
(4)	Require any employee who is assigned a State‑owned vehicle to document all callbacks, including each callback's date, time, duration, and reason it was necessary.
(5)	Track and report all vehicle misuse complaints, including a description of each incident, findings of the investigation, and any disciplinary action taken as a result of the investigation.
(6)	Collect and report vehicle identification, utilization, and direct cost data for all vehicles under its control or management to the statewide fleet management information system.
(7)	Submit vehicle acquisition and replacement requests for approval.
(8)	Develop and submit annual vehicle replacement plans.
(9)	Pay fees as required by the Division of State Fleet Management to cover the cost of the fleet management information system and statewide supervision.
(10)	Provide other fleet management or vehicle information as requested by the Division of State Fleet Management.
"§ 20‑403.  Noncompliance of State entity with vehicle policies.
The Division of State Fleet Management shall file an annual report with the General Assembly documenting State entities' failures to comply with the requirements of G.S. 20‑402 or any rule or policy related to State‑owned motor vehicles.
"§ 20‑404.  Violation of Article or State Fleet Management rule.
Any person who violates a provision of this Article or a State Fleet Management rule adopted by the Department of Administration and approved by the Governor is guilty of a Class 1 misdemeanor.
"§ 20‑405:  Reserved for future codification purposes.
"§ 20‑406.  Identification of State‑owned vehicles.
State‑owned vehicles shall be marked as required by G.S. 20‑39.1.
"§ 20‑407.  Transfer of ownership of passenger vehicles to the Department of Administration.
Based on the schedule adopted by the Department of Administration under G.S. 143‑341(12), all State agencies shall transfer ownership, custody, or control of any or all passenger motor vehicles within the ownership, custody, or control of that agency to the Department of Administration, except for those motor vehicles under the ownership, custody, or control of the following:
(1)	Highway Patrol.
(2)	State Bureau of Investigation.
(3)	A constituent institution of The University of North Carolina, provided the vehicles are being used primarily for law enforcement purposes.
(4)	Department of Public Safety, provided the vehicles are for Butner Public Safety and primarily used for law enforcement, fire, or emergency purposes.
"§§ 20‑408 through 20‑409:  Reserved for future codification purposes.
"§ 20‑410.  Diesel vehicles to be compatible with B‑20 fuel.
Every new motor vehicle transferred to or purchased by the Department of Administration that is designed to operate on diesel fuel shall be covered by an express manufacturer's warranty that allows the use of B‑20 fuel, as defined in G.S. 143‑58.4. This section does not apply if the intended use, as determined by the Department of Administration, of the new motor vehicle requires a type of vehicle for which an express manufacturer's warranty allows the use of B‑20 fuel is not available.
"§ 20‑411.  Fuel economy standards for new vehicles.
(a)	Definitions. – As used in this section, the following definitions apply:
(1)	"Fuel economy" and "class of comparable automobiles" have the same meaning as in Part 600 of Title 40 of the Code of Federal Regulations (July 1, 2008 Edition).
(2)	"Passenger motor vehicle" has the same meaning as "private passenger vehicle" as defined in G.S. 20‑4.01.
(b)	 Notwithstanding the requirements of G.S. 20‑410, every request for proposals for new passenger motor vehicles to be purchased by the Department of Administration shall state a preference for vehicles that have a fuel economy for the new vehicle's model year that is in the top fifteen percent (15%) of its class of comparable automobiles. The award for every new passenger motor vehicle that is purchased by the Department of Administration shall be based on the Department's evaluation of the best value for the State, taking into account fuel economy ratings and life cycle cost that reasonably consider both projected fuel costs and acquisition costs. This section does not apply to vehicles used in law enforcement, emergency medical response, and firefighting.
(c)	Report. – The Department of Administration shall report the number of new passenger motor vehicles that are purchased as required by this section, the savings or costs for the purchase of vehicles to comply with this section, and the quantity and cost of fuel saved for the previous fiscal year on or before October 1 of each year to the Joint Legislative Commission on Governmental Operations and the Environmental Review Commission.
"§§ 20‑412 through 20‑414:  Reserved for future codification purposes.
"§ 20‑415.  Assignment of vehicles by Department of Administration.
(a)	Upon proper requisition, proper showing of need for use on State business only, and proper showing of proof that all persons who will be driving the motor vehicle have valid drivers' licenses, the Department of Administration may assign economically suitable transportation, either on a temporary or permanent basis, to any State employee or agency.
(b)	An agency assigned a motor vehicle may not allow a person to operate that motor vehicle unless that person displays to the agency and allows the agency to copy that person's valid driver's license. Notwithstanding G.S. 20‑30(6), persons or agencies requesting assignment of motor vehicles may  copy or otherwise reproduce drivers' licenses for purposes of complying with this subsection.
(c)	The assignment of vehicles by the Department of Administration shall additionally be subject to the following:
(1)	The Department may not assign any employee or agency a motor vehicle that is not economically suitable.
(2)	The Department shall not approve requests for vehicle assignment or reassignment when the purpose of that assignment or reassignment is to provide any employee with a newer or lower mileage vehicle because of his or her rank, management authority, or length of service or because of any non‑job‑related reason.
(3)	The Department shall not assign "special use" vehicles, such as four‑wheel drive vehicles or law enforcement vehicles, to any agency or individual except upon written justification, verified by historical data, and accepted by the Secretary.
(4)	The Department may provide law enforcement vehicles only to those agencies which have statutory pursuit authority.
"§ 20‑416.  Minimum rates for passenger motor vehicles.
The amount allocated and charged by the Department of Administration to State agencies to which passenger motor vehicle transportation is furnished shall be at least as follows:
(1)	Pursuit vehicles and full‑size four‑wheel drive vehicles – $.24/mile.
(2)	Vans and compact four‑wheel drive vehicles – $.22/mile.
(3)	All other vehicles – $.20/mile.
"§ 20‑417.  Permanent assignment of State‑owned passenger motor vehicles; required reports; commuting policy; revocation of assignment.
(a)	General Provisions. –  Notwithstanding the provisions of G.S. 20‑190 or any other provisions of law, all state‑owned passenger motor vehicles are subject to the provisions of this section. No permanent assignment shall be made and no one shall be exempt from payment of reimbursement for commuting or from the other provisions of this section except as provided by this section. Commuting, as defined and regulated by this section, is limited to those specific cases in which the Secretary of Administration has received and accepted written justification, verified by historical data. The Department of Administration shall not assign any state‑owned motor vehicle that may be used for commuting other than those authorized by the procedure prescribed in this section. The Department of Administration shall adopt rules to govern the permanent assignment of State‑owned passenger motor vehicles based on miles traveled, frequency of use, and vehicle purpose.

(b)	Commuting Policy. –  Every individual who uses a State‑owned passenger motor vehicle, pickup truck, or van to drive between the individual's official work station and his or her home, shall reimburse the State for these trips at a rate computed by the Department. This rate shall approximate the benefit derived from the use of the vehicle as prescribed by federal law. Reimbursement shall be for 20 days per month regardless of how many days the individual uses the vehicle to commute during the month. Reimbursement shall be made by payroll deduction. Funds derived from reimbursement on vehicles owned by the Department of Administration shall be deposited to the credit of that Department; funds derived from reimbursements on vehicles initially purchased with appropriations from the Highway Fund and not owned by the Department of Administration shall be deposited in a Special Depository Account in the Department of Transportation, which shall revert to the Highway Fund; funds derived from reimbursement on all other vehicles shall be deposited in a Special Depository Account in the Department of Administration which shall revert to the General Fund. Commuting, for purposes of this paragraph, does not include those individuals whose office is in their home, as determined by the Division of State Fleet Management. Also, this subsection does not apply to the following vehicles: (i) clearly marked police and fire vehicles, (ii) delivery trucks with seating only for the driver, (iii) flatbed trucks, (iv) cargo carriers with over a 14,000 pound capacity, (v) school and passenger buses with over 20 person capacities, (vi) ambulances, (vii) bucket trucks, (viii) cranes and derricks, (ix) forklifts, (x) cement mixers, (xi) dump trucks, (xii) garbage trucks, (xiii) specialized utility repair trucks (except vans and pickup trucks), (xiv) tractors, (xv) unmarked law‑enforcement vehicles that are used in undercover work and are operated by full‑time, fully sworn law‑enforcement officers whose primary duties include carrying a firearm, executing search warrants, and making arrests, and (xvi) any other vehicle exempted under Section 274(d) of the Internal Revenue Code of 1954, and Federal Internal Revenue Services regulations based thereon.
(c)	Report on Commuting Non‑Reimbursement. – The  Division of State Fleet Management shall report quarterly to the Joint Legislative Commission on Governmental Operations and to the Fiscal Research Division of the Legislative Services Office on individuals who use State‑owned passenger motor vehicles, pickup trucks, or vans between their official work stations and their homes, and are not required to reimburse the State for these trips.
(d)	Revocation of Assignment. – The Department of Administration shall revoke the assignment or require the Department owning the vehicle to revoke the assignment of a State‑owned passenger motor vehicle, pickup truck or van to any individual  who does any of the following:
(1)	Uses the vehicle for other than official business except in accordance with the commuting  rules.
(2)	Fails to supply required reports to the Department of Administration, or supplies incomplete reports, or supplies reports in a form unacceptable to the Department of Administration and does not cure the deficiency within 30 days of receiving a request to do so.
(3)	Knowingly and willfully supplies false information to the Department of Administration on applications for permanent assignments, commuting reimbursement forms, or other required reports or forms.
(4)	Does not personally sign all reports on forms submitted for vehicles permanently assigned to him or her and does not cure the deficiency within 30 days of receiving a request to do so.
(5)	Abuses the vehicle.
(6)	Violates other rules or policy promulgated by the Department of Administration not in conflict with this Article or G.S. 143‑341(12).
A new requisition shall not be honored until the Secretary of the Department of Administration is assured that the violation for which a vehicle was previously revoked will not recur.
(e)	The Department of Administration, with the approval of the Governor, may delegate, or conditionally delegate, to the respective heads of agencies which own passenger motor vehicles or to which passenger motor vehicles are permanently assigned by the Department, the duty of enforcing all or part of the rules adopted by the Department of Administration pursuant to G.S. 143‑341(12). The Department of Administration, with the approval of the Governor, may revoke this delegation of authority.
(f)	Notwithstanding the provisions of this Article, G.S. 14‑247, and G.S. 143‑341(12), the Department of Administration may allow the organization sanctioned by the Governor's Council on Physical Fitness to conduct the North Carolina State Games to use State trucks and vans for the State Games of North Carolina. The Department of Administration shall not charge any fees for the use of the vehicles for the State Games. The State shall incur no liability for any damages resulting from the use of vehicles under this provision. The organization that conducts the State Games shall carry liability insurance of not less than one million dollars ($1,000,000) covering such vehicles while in its use and shall be responsible for the full cost of repairs to these vehicles if they are damaged while used for the State Games.
"§§ 20‑418 through 20‑420:  Reserved for future codification purposes."
SECTION 8.(g)  G.S. 20‑417(e), as amended by subsection (f) of this section, is recodified as G.S. 20‑405, and shall have the catch line "Delegation of enforcement of Article and rules to other State agencies." G.S. 20‑417(f), as amended by subsection (f) of this section, is recodified as G.S. 20‑420, and shall have the catch line "Exception for North Carolina State Games."
SECTION 8.(h)  G.S. 143‑341(12), as created by subsection (b) of this section and as amended by subsection (d) of this section, reads as rewritten:
"(12)	State Fleet Management:
a.	To supervise the management and operation of all vehicles owned by the State, including the following powers and duties:
1.	Maintain an inventory of all State‑owned vehicles.
2.	Collect and analyze information for all State‑owned vehicles.
3.	Operate the statewide fleet management information system selected by the Office of the State Controller.
4.	Adopt and enforce statewide policies and rules for all aspects of fleet management, fleet operation, vehicle use, and identification of State‑owned vehicles under G.S. 20‑39.1(a)(1). Rules adopted on the identification of State‑owned vehicles shall require, in addition to any other requirements within the rules, identification on the rear of a vehicle.
5.	Convene a state fleet management advisory committee with State agency representation to advise the division on statewide fleet management policies, rules, and issues.
6.	Provide technical assistance with implementing fleet management best practices.
7.	Compile and report vehicle misuse complaints and commuting information tracked by State agencies and institutions.
8.	Review and approve vehicle acquisition and replacement requests by State agencies and institutions.
9.	Compile a statewide vehicle replacement plan based on information from State agencies and institutions.
10.	Establish and collect fees from State entities for the support of services provided under this sub‑subdivision.
11.	Report annually to the General Assembly on the status of State‑owned vehicles and make any recommendations for improvements and changes necessary for more efficient management of State‑owned vehicles.
b.	To enforce rules adopted under this subdivision as well as the provisions of Article 18 of Chapter 20 of the General Statutes.
c.	To adopt and administer rules for the control of all state‑owned passenger motor vehicles and to require State agencies to keep all records and make all reports regarding motor vehicle use as the Secretary deems necessary.
d.	To establish and operate a central motor pool and such subsidiary related facilities as the Secretary may deem necessary.
e.	To establish and operate central facilities for the maintenance, repair, and storage of state‑owned passenger motor vehicles for the use of State agencies; to utilize any available State facilities for that purpose; and to establish such subsidiary facilities as the Secretary may deem necessary.
f.	To acquire passenger motor vehicles by transfer from other State agencies and by purchase, subject to the provisions of Article 18 of Chapter 20 of the General Statutes. All motor vehicles transferred to or purchased by the Department shall become part of a central motor pool.
g.	To require on a schedule determined by the Department all State agencies to transfer ownership, custody or control of any or all passenger motor vehicles within the ownership, custody or control of that agency to the Department, except those motor vehicles under the ownership, custody or control of the entities listed in G.S. 20‑405.
h.	To maintain, store, repair, dispose of, and replace state‑owned motor vehicles under the control of the Department, using best management practices. The Department shall ensure that state‑owned vehicles are replaced when most cost effective using a replacement formula developed by the Department and reviewed periodically for appropriateness of use. The Department shall report semiannually to the cochairs of the Joint Appropriations Subcommittee on General Government, on or before October 15 and March 15, on the effect of any new or revised replacement formula on the cost of operating the central motor pool, including the amount of any savings from use of any new or revised replacement formula.
i.	To assign, subject to Article 18 of Chapter 20 of the General Statutes, transportation, either on a temporary or permanent basis, to any State employee or agency.
j.	Subject to Article 18 of Chapter 20 of the General Statutes, to adopt with the approval of the Governor and to enforce rules and to coordinate State policy regarding (i) the permanent assignment of State‑owned passenger motor vehicles and (ii) the use of and reimbursement for those vehicles for the limited commuting permitted by this subdivision.
k.	To allocate and charge against each State agency to which transportation is furnished, on a basis of mileage or of rental, its proportionate part of the cost of maintenance and operation of the motor pool, subject to the minimum rates provided in G.S. 20‑416.
				l.	To adopt, with the approval of the Governor, reasonable rules for the efficient and economical operation, maintenance, repair, and replacement, as limited in sub‑subdivision h. of this subdivision, of all state‑owned motor vehicles under the control of the Department, and to enforce those rules; and to adopt, with the approval of the Governor, reasonable rules regulating the use of private motor vehicles upon State business by the officers and employees of State agencies, and to enforce those rules. The Department, with the approval of the Governor, may delegate to the respective heads of the agencies to which motor vehicles are permanently assigned by the Department the duty of enforcing the rules adopted by the Department pursuant to this sub‑subdivision. 
m.	To acquire motor vehicle liability insurance on all State‑owned motor vehicles under the control of the Department.
n.	To contract with the appropriate State prison authorities for the furnishing, upon such conditions as may be agreed upon from time to time between such State prison authorities and the Secretary, of prison labor for use in connection with the operation of a central motor pool and related activities.
o.	To report annually to the General Assembly on any rules adopted, amended, or repealed under this subdivision.
p.	To participate in the energy credit banking and selling program under G.S. 143‑58.4. The Division of State Fleet Management of the Department of Administration is eligible to receive proceeds from the Alternative Fuel Revolving Fund under G.S. 143‑58.5 to purchase alternative fuel, develop alternative fuel refueling infrastructure, or purchase AFVs as defined in G.S. 143‑58.4."
SECTION 8.(i)  The Department of Administration may, notwithstanding any other provision of law, use funds from the Motor Fleet Management internal service fund to prepare for the expansion of the existing Division of Motor Fleet Management to the new Division of State Fleet Management.
SECTION 8.(j)  Except for subsection (i) of this section, this section becomes effective January 1, 2014.
SECTION 9.  Except as otherwise provided, this act is effective when it becomes law.