Bill Text: CA SB747 | 2015-2016 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Airports: financial assistance.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB747 Detail]
Download: California-2015-SB747-Amended.html
Bill Title: Airports: financial assistance.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB747 Detail]
Download: California-2015-SB747-Amended.html
BILL NUMBER: SB 747 AMENDED BILL TEXT AMENDED IN SENATE APRIL 14, 2015 AMENDED IN SENATE APRIL 6, 2015 INTRODUCED BY Senator McGuire (Coauthor: Assembly Member Wood) FEBRUARY 27, 2015 An act toamend Sections 21682, 21683.1, and 21683.2 of, and to add Sections 21682.1 and 21682.2 to,add Section 21689 to the Public Utilities Code, and to add Section 7102.1 to the Revenue and Taxation Code, relating to airports, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST SB 747, as amended, McGuire. Airports: financial assistance. The State Aeronautics Act establishes the Aeronautics Account in the State Transportation Fund, and continuously appropriates the moneys in the account for expenditure for airport purposes by the Division of Aeronautics within the Department of Transportation and the California Transportation Commission.The act requires the department to establish individual revolving fund subaccounts for eligible airports in the Aeronautics Account, permits the department to advance funds to the subaccount of an individual airport, and requires the department to credit from the Aeronautics Account to each public entity owning and operating an airport or airports under a valid permit issued by the department which has not been designated by the Federal Aviation Administration as a reliever airport or a commercial service airport, the sum of $10,000 annually for each qualifying airport.This bill would revise and recast these provisions to instead increase this amount to $30,000 annually for each airport that has been designated by the Federal Aviation Administration as a reliever airport, a commercial service airport, a general aviation airport, or an airport certified under specified federal regulations. The bill would also credit annually from the Aeronautics Account additional sums for large, medium, and small nonhub airports, as defined, and for nonhub commercial airports, small hub commercial airports, medium hub commercial airports, and large hub commercial airports. The bill would provide that if a commercial airport is ineligible to receive an annual credit, the annual credit shall be divided among remaining commercial airports.This bill would require that the revenues from the imposition of state sale and use taxes, at the rate of 4.1875%, on the sale, storage, use, or other consumption of aviation fuel, as defined, be transferred to the Aeronautics Account for allocation in specified percentages to airports and for aviation-related purposes. The bill would require thedepartmentdivision toset aside $10,000,000 each fiscal yearallocate 27% of these revenues for grants to be made available for nonhubairportscommercial airports, as defined, with less than 300,000 enplanements annually to attract, establish, and expand air service through incentives, marketing, passenger studies, route analysis, and the acquisition of consultants, as specified. The bill would also require thedepartmentdivision to provide at least$150,0001% of these revenues annually in specified grants for aviation education. By increasing the sources of funding for and expanding the purposes for which money may be used from a continuously appropriated fund, the Aeronautics Account, the bill would make an appropriation.Existing law establishes the California Aid to Airports Program under which the department provides grants to political subdivisions for the planning, acquisition, construction, improvement, maintenance, or operation of a publicly owned airport, and to cities or counties on behalf of any privately owned, public use airport, as specified.This bill would appropriate $36,250,000 from the General Fund to the Division of Aeronautics for purposes of funding the update, adoption, and administration of programs within the California Aid to Airports Program.Vote: 2/3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) It is the intent of the Legislature to return state sales and use tax revenue on aviation fuels to the Division of Aeronautics of the Department of Transportation, as directed by the Federal Aviation Administration (FAA) in "Policy and Procedures Concerning the Use of Airport Revenue" (Docket No. FAA-2013-0988) to operate the California Aid to Airports Program (Chapter 4 (commencing with Section 4050) of Title 21 of the California Code of Regulations). (2) The directive of the FAA requires that, by January 1, 2018, all airport revenues, including state sales taxes, shall be used for aviation-related purposes or for a state aviation program. (3) The intent of this act is to begin the process of transitioning the state into compliance with the FAA directive by allocating revenues of state sale and use taxes on aviation fuel to the Aeronautics Account in order to provide financial assistance to the state's airports and state aviation programs. SEC. 2. Section 21689 is added to the Public Utilities Code , to read: 21689. (a) Notwithstanding the provisions of this article, from the funds deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.1 of the Revenue and Taxation Code, the Division of Aeronautics shall allocate annually to eligible recepients the following percentages of available funds for airports and aviation-related purposes: (1) Twelve percent for qualifying general aviation airports, to be credited to individual airport subaccounts in a manner consistent with the process established in Section 21682. (2) Forty percent to be divided among large, medium, and small hub commercial airports and nonhub commercial airports, each as defined in Section 47102 of Title 49 of the United States Code, in the following percentages: (A) Twenty-one percent for nonhub commercial airports. (B) Thirty-one percent for small hub commercial airports. (C) Fourteen percent for medium hub commercial airports. (D) Thirty-four percent for large hub commercial airports. (3) Twenty-seven percent for grants to be made available to nonhub commercial airports with less than 300,000 enplanements annually to attract, establish, and expand air service through incentives, marketing, passenger studies, route analysis, and the acquisition of consultants. Expenditures under this paragraph shall be consistent with the Federal Register, Volume 64, Number 30, on February 16, 1999. (4) One percent to provide grants for aviation education that includes, but is not limited to, programs, projects, or initiatives that improve or enrich aviation within the California aviation community. Grants may include, but are not limited to, scholarships for flight training and aviation-related degrees from accredited universities. Priority for grants shall be given to underrepresented students, women, veterans, and persons of low-income, as defined in Section 3413 of the Health and Safety Code. (5) Fifteen percent for other state aviation programs and aviation-related purposes as authorized pursuant to this article. (6) Not more than 5 percent for the division's administrative costs. Any unused funds shall be allocated pursuant to paragraphs (1) to (5), inclusive, on a pro-rata basis. (b) Sections 21686 to 21688, inclusive, shall apply to allocations of funds pursuant to this section. SEC. 3 . Section 7102.1 is add ed to the Revenue and Taxation Code , to read: 7102.1. (a) Notwithstanding Section 7102, revenues in the fund, less refunds, derived under this part from the imposition of state sales and use taxes pursuant to Sections 6051, 6051.3, 6201, and 6201.3, at the rate of 4.1875 percent, with respect to the sale, storage, use, or other consumption of aviation fuel shall be transferred to the Aeronautics Account in the State Transportation Fund for allocation to airports and aviation-related purposes in accordance with Section 21689 of the Public Utilities Code. (b) As used in this section, "aviation fuel" means jet fuel and aviation gasoline.SECTION 1.Section 21682 of the Public Utilities Code is amended to read: 21682. (a) The department shall establish individual revolving fund subaccounts for eligible airports in the Aeronautics Account in the State Transportation Fund. Money payable under this section shall be credited to individual airport subaccounts annually, and may be accumulated for a maximum period of five years. (b) (1) The department shall, subject to Section 21684, credit from the Aeronautics Account to each public entity owning and operating an airport or airports under a valid permit issued by the department for every airport which has been designated by the Federal Aviation Administration as a general aviation airport, as defined in Section 47102(8) of Title 49 of the United States Code, a reliever airport, as defined in Section 47102(23) of Title 49 of the United States Code, a commercial service airport, as defined in Section 47102(7) of Title 49 of the United States Code, or an airport with certification from the Federal Aviation Administration under Part 139 of Title 14 of the Code of Federal Regulations, in the following annual amounts: (A) The sum of thirty thousand dollars ($30,000) annually for each qualifying general aviation airport. (B) The sum of seventeen million two hundred fifty thousand dollars ($17,250,000) to be divided among large, medium, and small nonhub airports, as defined in Section 47102 of Title 49 of the United States Code. (C) The sum of two hundred fifty thousand dollars ($250,000) for each nonhub commercial airport, the sum of five hundred thousand dollars ($500,000) for each small hub commercial airport, the sum of seven hundred fifty thousand dollars ($750,000) for each medium hub commercial airport, and the sum of one million dollars ($1,000,000) for each large hub commercial airport, as defined in Section 47102 of Title 49 of the United States Code. (2) If a commercial airport is ineligible to receive an annual credit, because it does not meet the requirements of Section 21684, the annual credit of that airport shall be divided among the remaining commercial airports, as defined in Section 47102 of Title 49 of the United States Code. (3) The funds credited pursuant to paragraph (1) shall be paid to public entities upon request for expenditure on preapproved eligible projects. Eligible public entities may submit applications for the withdrawal of credited funds for expenditure on proposed projects in letter form to the department for review and approval. Projects identified shall be for airport and aviation purposes and operation and maintenance purposes. No payment made under this section is transferable, but shall be expended only upon the airport for which the payment is made, unless the department authorizes a payment to be transferred for expenditure on another airport. The department may establish any accounting systems it deems necessary to provide for the accumulation and expenditure of funds under this subdivision. (c) If, in any year, there is insufficient money in the Aeronautics Account to make the credits specified in subdivision (b), the department shall, subject to Section 21684, credit to each public entity subaccount an amount which is equal to the total amount of money in the Aeronautics Account multiplied by a percentage equivalent to the proportion which the airport or airports of the public entity for which credit is required to be made pursuant to subdivision (b) bear to the total number of airports for which credit is required to be made pursuant to subdivision (b). (d) No payment shall be made under this section to any public entity for any airport on which general or commercial aviation activities are substantially restricted if the airport is licensed to conduct these activities by the department. The department shall determine whether or not general or commercial aviation activities are restricted. (e) The department shall adopt rules and regulations and establish procedures to effect prompt payment to public entities for eligible airport projects from money credited pursuant to this section.SEC. 2.Section 21682.1 is added to the Public Utilities Code, to read: 21682.1. The department shall, subject to Section 21684, set aside ten million dollars ($10,000,000) each fiscal year from the Aeronautics Account for grants to be made available for nonhub airports with less than 300,000 enplanements annually to attract, establish, and expand air service through incentives, marketing, passenger studies, route analysis, and the acquisition of consultants. Expenditures under this section shall be consistent with the Federal Register, Volume 64, Number 30, on February 16, 1999.SEC. 3.Section 21682.2 is added to the Public Utilities Code, to read: 21682.2. The department shall, subject to Section 21684, provide grants for aviation education which includes, but is not limited to, programs, projects, or initiatives that improve or enrich aviation within the California aviation community. Grants may include, but are not limited to, scholarships for flight training and aviation-related degrees from accredited universities. Priority for grants shall be given to underrepresented students, women, veterans, and persons of low-income as defined in Section 3413 of the Health and Safety Code. The funding for aviation education grants under this section shall be no less than one hundred fifty thousand dollars ($150,000) annually.SEC. 4.Section 21683.1 of the Public Utilities Code is amended to read: 21683.1. (a) At the discretion of the commission, any balance remaining in the Aeronautics Account, after the payments made under Section 21682, may be used to provide a portion of the local match for federal Airport Improvement Program grants. Matching shall be provided only for grants at general aviation airports, as defined in Section 47102(8) of Title 49 of the United States Code, or at airports that have been designated by the Federal Aviation Administration as reliever airports, as defined in Section 47102(23) of Title 49 of the United States Code. (b) Funds shall not be allocated by the commission until the federal grant offer is accepted by the public entity. Upon allocation by the commission, the department may pay a public entity an amount equal to 5 percent of the amount of a federal Airport Improvement Program grant. These funds are excluded from the requirements of Section 21684. (c) Funds shall not be allocated by the commission until the federal grant offer is accepted by the public entity.SEC. 5.Section 21683.2 of the Public Utilities Code is amended to read: 21683.2. Any balance remaining in the Aeronautics Account, after the payments made under Sections 21682, 21682.1, 21682.2, 21682.5, 21683, and 21683.1, shall be used at the discretion of the commission for airport and aviation purposes subject to the provisions of Section 21684.SEC. 6.The sum of thirty-six million two hundred fifty thousand dollars ($36,250,000) is hereby transferred from the General Fund to the Aeronautics Account and, notwithstanding Section 21680 of the Public Utilities Code, is appropriated to the Division of Aeronautics within the Department of Transportation for purposes of funding the update, adoption, and administration of programs within the California Aid to Airports Program (CAAP). Not more than 5 percent of these moneys may be used by the Division of Aeronautics for the cost of administering these programs.