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 billbegin insert, effective December 8, 2017,end insert 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:
(a) The Legislature finds and declares all of the
2following:
3(1) It is the intent of the Legislature to return state sales and use
4tax revenue on aviation fuels to the Division of Aeronautics of the
5Department of Transportation, as directed by the Federal Aviation
6Administration (FAA) in “Policy and Procedures Concerning the
7Use of Airport Revenue” (Docket No. FAA-2013-0988) to operate
8the California Aid to Airports Program (Chapter 4 (commencing
9with Section 4050) of Title 21 of the California Code of
10Regulations).
11(2) The directive of the FAA requires that, by
December 8,
122017, all airport revenues, including state sales taxes, shall be used
13for aviation-related purposes or for a state aviation program.
14(3) The intent of this act is to begin the process of transitioning
15the state into compliance with the FAA directive by allocating
16revenues of state sales and use taxes on aviation fuel to the
17Aeronautics Account in order to provide financial assistance to
18the state’s airports and state aviation programs.
Section 21689 is added to the Public Utilities Code,
20to read:
(a) Notwithstanding the provisions of this article, from
22the funds deposited into the Aeronautics Account in the State
23Transportation Fund pursuant to Section 7102.1 of the Revenue
24and Taxation Code, the Division of Aeronautics shall allocate
25annually to eligible recipients the following percentages of
26available funds for airports and aviation-related purposes:
P3 1(1) Twelve percent for qualifying general aviation airports, to
2be credited to individual airport subaccounts in a manner consistent
3
with the process established in Section 21682.
4(2) Forty percent to be divided among large, medium, and small
5hub commercial airports and nonhub commercial airports, each as
6defined in Section 47102 of Title 49 of the United States Code, in
7the following percentages:
8(A) Twenty-one percent forbegin delete nonhubend deletebegin insert large hubend insert commercial
9airports.
10(B) Thirty-one percent forbegin delete smallend deletebegin insert mediumend insert hub
commercial
11airports.
12(C) Fourteen percent forbegin delete mediumend deletebegin insert smallend insert hub commercial airports.
13(D) Thirty-four percent forbegin delete large hubend deletebegin insert nonhubend insert commercial
14airports.
15(3) Twenty-seven percent for grants to be made available to
16nonhub commercial airports with less than 300,000 enplanements
17annually to attract, establish, and expand air service through
18incentives, marketing, passenger studies, route analysis,
and the
19acquisition of consultants. Expenditures under this paragraph shall
20be consistent with the Federal Register, Volume 64, Number 30,
21on February 16, 1999.
22(4) One percent to provide grants for aviation education that
23includes, but is not limited to, programs, projects, or initiatives
24that improve or enrich aviation within the California aviation
25community. Grants may include, but are not limited to, scholarships
26for flight training and aviation-related degrees from accredited
27universities. Priority for grants shall be given to underrepresented
28students, women, veterans, and persons of low income, as defined
29in Section 3413 of the Health and Safety Code.
30(5) Fifteen percent for other state aviation programs and
31aviation-related purposes as authorized pursuant to this
article.
32(6) Not more than 5 percent for the division’s administrative
33costs. Any unused funds shall be allocated pursuant to paragraphs
34(1) to (5), inclusive, on a pro rata basis.
35(b) Sections 21686 to 21688, inclusive, shall apply to allocations
36of funds pursuant to this section.
Section 7102.1 is added to the Revenue and Taxation
38Code, to read:
(a) Notwithstanding Section 7102, revenues in the
40fund, less refunds, derived under this part from the imposition of
P4 1state sales and use taxes pursuant to Sections 6051, 6051.3, 6201,
2and 6201.3, at the rate of 4.1875 percent, with respect to the sale,
3storage, use, or other consumption of aviation fuel shall be
4transferred to the Aeronautics Account in the State Transportation
5Fund for allocation to airports and aviation-related purposes in
6accordance with Section 21689 of the Public Utilities Code.
7(b) As used in this section, “aviation fuel” means jet fuel and
8aviation gasoline.
9(c) This section shall become operative on December 8, 2017.
end insertO
95