BILL NUMBER: SB 747 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator McGuire
(Coauthor: Assembly Member Wood)
FEBRUARY 27, 2015
An act to add Article 1.5 (commencing with Section 21615)
to Chapter 4 of Part 1 of Division 9 of amend
Sections 21682, 21683.1, and 21683.2 of, and to add Sections 21682.1
and 21682.2 to, the Public Utilities Code, relating to
airports, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 747, as amended, McGuire. Airports: financial
assistance: grant program. 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. 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 require the Department of Transportation to adopt
and administer a grant program for the purpose of funding specified
infrastructure projects to maintain and improve airport facilities
and infrastructure owned or operated by a commercial service airport
or general aviation airport. The bill would authorize one or more
eligible airports to submit a joint application, as specified. The
bill would also authorize the department to provide financial
assistance for and to enter into agreements with commercial air
carriers to, among other things, establish and market new or expanded
service at airports with 400,000 or fewer annual enplanements and
would authorize the department to use available moneys to provide
financial assistance to underserved airports, as specified.
The bill would require the Division of Aeronautics to develop
regulations for the department to adopt in order to implement these
provisions. The bill would appropriate an unspecified sum from the
Aeronautics Account in the State Transportation Fund for it purposes
and would make unspecified percentage allocations to airports with
annual enplanements of 1,000,000 or more, 1,000,000 or less, and to
general aviation airports.
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.
The bill would require the department to set aside $10,000,000
each fiscal year 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, as
specified. The bill would also require the department to provide at
least $150,000 annually in specified grants for aviation education.
By 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.
Because any violation of the State Aeronautics Act is a crime and
the provisions of the bill would be within the act, this bill would
impose a state-mandated local program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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
not 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 503 (a) (19) of the federal
Airport and Airway Improvement Act of 1982, as amended, or (2)
47102(23) of Title 49 of the United States Code,
a commercial service airport, as defined in Section 503 (a)
(5) of the federal Airport and Airway Improvement Act of 1982, as
amended, the 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 ten
thirty thousand dollars ($10,000)
($30,000) annually for each qualifying
airport. These 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 owned or operated by the
public entity airport. The department may
establish any accounting systems it deems necessary to provide for
the cumulation 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
503(a)(19) of the federal Airport and Airway Improvement Act
of 1982, as amended. 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. Upon
allocation by the commission, the department may, until December 31,
2006, pay a public entity an amount equal to the 10 percent local
match required for a federal Airport Improvement Program grant for
security projects at small general aviation airports. For purposes of
this section, a "security project" means a project to install or
maintain fencing, gates, security lighting, access controls systems,
and surveillance systems. For purposes of this section a "small
general aviation airport" means an airport with fewer than 80,000
annual landings and take-offs of aircraft.
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 Section 21682 and Section
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.
SECTION 1. Article 1.5 (commencing with Section
21615) is added to Chapter 4 of Part 1 of Division 9 of the Public
Utilities Code, to read:
Article 1.5. Local Airport Investment and Improvement Act
21615. (a) Notwithstanding Section 21602, the department shall
adopt and administer a grant program for purposes of maintaining and
improving facilities and infrastructure owned or operated by a
commercial service airport or general aviation airport. The following
infrastructure projects shall be eligible for funding under this
program:
(1) Projects included in the Airport Capital Improvement Program.
(2) The airport master plan.
(3) Deferred maintenance projects.
(4) Airport and equipment maintenance projects.
(5) Emergency projects necessary to maintain consistent flight
service operations.
(6) Equipment necessary to perform airport infrastructure
maintenance and sustain reliable flight operations.
(7) Studies on subjects related to airport landside and airside
operations and safety, including, but not limited to, wildlife and
runway hazards.
(b) One or more eligible airports may apply for financial
assistance under this section by providing joint applications for
similar projects. Joint applications shall be accepted if airports
are within a similar geographic region to achieve savings by
furnishing service providers a single bidding opportunity.
(c) (1) Notwithstanding Section 21683.1, project grants may be
used by eligible airports to fulfill the local match requirements of
Federal Aviation Administration grant programs or to supplement those
grant programs.
(2) Eligible airports may submit matching grant applications to
the department simultaneously when the principal grant application is
submitted to the Federal Aviation Administration.
(3) Eligible airports receiving grants under this subdivision to
fulfill local match requirements may commence project construction
upon receipt by the airport of a grant assurance from the Federal
Aviation Administration.
21616. (a) The department may, pursuant to this article, provide
financial assistance for, and enter into agreements with, commercial
air carriers to do both of the following:
(1) Establish and market new or expanded service at airports with
400,000 or fewer annual enplanements.
(2) Subsidize air carrier service to and from an underserved
airport for a period not to exceed three years.
(b) The department may also use moneys made available for purposes
of this article to do both of the following:
(1) Provide financial assistance to an underserved airport to
obtain service to and from the underserved airport.
(2) Provide financial assistance to an underserved airport to
implement measures that the airport, in consultation with the
department, considers appropriate to improve air service both in
terms of the cost of the service to consumers and the availability of
that service, including improving air service through marketing and
promotion of air service and enhanced utilization of airport
facilities.
21617. The division shall develop regulations for the department
to adopt in order to implement this article.
21618. Funds appropriated by the Legislature to the department
for purposes of this article shall be allocated as follows:
(1) ____ percent to airports with annual enplanements of 1,000,000
or more.
(2) ____ percent to airports with annual enplanements of less than
1,000,000.
(3) ____ percent to general aviation airports.
SEC. 2. Notwithstanding Section 21680 of the
Public Utilities Code, the sum of ____ dollars ($____) is hereby
appropriated from the Aeronautics Account in the State Transportation
Fund to the Department of Transportation for the purposes authorized
by Article 1.5 (commencing with Section 21615) of Chapter 4 of Part
1 of Division 9 of the Public Utilities Code.
SEC. 3. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.