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 to amend 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 the department
division to set aside $10,000,000 each fiscal year
allocate 27% of these revenues for
grants to be made available for nonhub airports
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 department division
to provide at least $150,000 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.
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.