Amended in Senate April 6, 2015

Senate Bill No. 747

Introduced by Senator McGuire

(Coauthor: Assembly Member Wood)

February 27, 2015

An act to begin delete add Article 1.5 (commencing with Section 21615) to Chapter 4 of Part 1 of Division 9 of end delete begin insert amend Sections 21682, 21683.1, and 21683.2 of, and to add Sections 21682.1 and 21682.2 to, end insert the Public Utilities Code, relating to airports, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 747, as amended, McGuire. Airports: financial begin delete assistance: grant program. end delete begin insert assistance. end insert

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. begin delete 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. end delete

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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.

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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.

end delete begin insert

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.

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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.

end insert begin insert

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.

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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.

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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.

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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.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 21682 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

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)  begin insert (1) end insert begin insert   end insert 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 begin delete not end delete been designated by the
Federal Aviation Administration as begin insert a general aviation airport, as
defined in Section 47102(8) end insert begin insert of Title 49 of the United States Code, end insert
a reliever airport, as defined in Section begin delete 503 (a) (19) of the federal
Airport and Airway Improvement Act of 1982, as amended, or (2) end delete
begin insert 47102(23) of Title 49 of the United States Code, end insert a commercial
service airport, as defined in Section begin delete 503 (a) (5) of the federal
Airport and Airway Improvement Act of 1982, as amended, the end delete
begin insert 47102 end insert begin insert (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: end insert

begin insert (A) end insert begin insert   end insert begin insert The end insert sum of begin delete ten end delete begin insert thirty end insert thousand dollars begin delete ($10,000) end delete begin insert ($30,000) end insert
annually for each qualifying begin delete airport. These end delete begin insert general aviation airport. end insert

begin insert

(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.

end insert begin insert

(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.

end insert begin insert

(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.

end insert

begin insert (3) end insert begin insert   end insert begin insert The end insert funds begin insert credited pursuant to paragraph (1) end insert 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 begin delete airport
owned or operated by the public entity end delete begin insert airport. end insert The department
may establish any accounting systems it deems necessary to
provide for the begin delete cumulation end delete begin insert accumulation end insert 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.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 21682.1 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 21682.1. end insert   

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.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 21682.2 is added to the end insert begin insert Public Utilities Code end insert begin insert ,
to read: end insert

begin insert

begin insert 21682.2. end insert   

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.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 21683.1 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

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, begin insert as
defined in Section 47102(8) of Title 49 of the United States Code, end insert
or at airports that have been designated by the Federal Aviation
Administration as reliever airports, as defined in Section begin delete 503(a)(19)
of the federal Airport and Airway Improvement Act of 1982, as
amended. end delete begin insert 47102(23) of Title 49 of the United States Code. end insert

(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. begin delete 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. end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 21683.2 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

21683.2.  

Any balance remaining in the Aeronautics Account,
after the payments made under begin delete Section 21682 and Section end delete begin insert Sections
21682, 21682.1, 21682.2, 21682.5, 21683, and end insert 21683.1, shall be
used at the discretion of the commission for airport and aviation
purposes subject to the provisions of Section 21684.

begin insert

begin insert SEC. 6. end insert   

end insert begin insert

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.

end insert

begin delete

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.

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