BILL NUMBER: SB 747 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 6, 2015
AMENDED IN SENATE APRIL 23, 2015
AMENDED IN SENATE APRIL 14, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator McGuire
(Coauthor: Senator Fuller)
(Coauthor: Assembly Member Wood)
FEBRUARY 27, 2015
An act 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.
This bill , effective December 8, 2017, would require
that the revenues from the imposition of state sales 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 the division to allocate 27% of these
revenues for grants to be made available for nonhub commercial
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 the division
to provide at least 1% 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.
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 December 8, 2017,
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 sales 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 recipients 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 large
hub commercial airports.
(B) Thirty-one percent for small medium
hub commercial airports.
(C) Fourteen percent for medium small
hub commercial airports.
(D) Thirty-four percent for large hub
nonhub 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 added 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.
(c) This section shall become operative on December 8, 2017.