BILL NUMBER: SB 446	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 7, 2011

INTRODUCED BY   Senator Dutton
   (Principal coauthor: Senator Negrete McLeod)
    (   Coauthor:   Senator   Huff
  ) 
   (Coauthors: Assembly Members Carter,  Jeffries, 
  and Nestande   Donnelly,
  Hagman,   Jeffries,   Knight,  
Nestande,   and Torres  )

                        FEBRUARY 16, 2011

   An act  to add Division 17.5 (commencing with Section 175000)
to the Public Utilities Code,   relating to airports.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 446, as amended, Dutton. Ontario International Airport.
   Existing law provides for creation of airport districts. Existing
law provides for transfer of the San Diego International Airport from
the San Diego Unified Port District to the San Diego County Regional
Airport Authority.
   This bill would  state the intent of the Legislature to
enact legislation to  establish the Ontario International
Airport Authority  and to require the   as a
local entity of regional government. The bill would establish the
membership of the board of directors of the authority and set forth
the powers of the authority. The bill would authorize the authority
to enter into an agreement with the City of Los Angeles to facilitate
the  transfer of management and operational control of the
Ontario International Airport from the City of Los Angeles to the
authority.  The bill would require the authority, in cooperation
with the City of Los Angeles and the City of Ontario, to develop a
transition plan to facilitate the transfer of management and
operational control of the Ontario International Airport to the
authority. The bill would also require the authority, the City of Los
Angeles, the City of Ontario, the County of San Bernardino, other
local and regional agencies, and the Department of Transportation to
cooperate to develop effective surface transportation access to the
Ontario International Airport.  
   To the extent these provisions would impose additional duties on
entities of local government, the bill would impose a state-mandated
local program.  
   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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Division 17.5 (commencing with Section
175000) is added to the   Public Utilities Code   ,
to read:  

      DIVISION 17.5.  Ontario International Airport Authority


   175000.  This division shall be known and may be cited as the
Ontario International Airport Authority Act.
   175001.  The Legislature finds and declares all of the following:
   (a) Airports help to link local, regional, statewide, national,
and global economic activities. Airports are also essential features
of comprehensive transportation systems that include streets and
highways, rail transit, transit over water, and mass transit.
   (b) It is essential to the public health, safety, and welfare that
local and regional government officials jointly plan, develop, and
operate the Ontario International Airport so as to promote economic
development, protect environmental quality, and enhance social
equity.
   (c) The significant local and regional consequences of airport
planning, development, and operations require the creation of a
regional airport authority.
   175002.  There is hereby established the Ontario International
Airport Authority, as a local governmental entity of regional
government.
   175003.  (a) The Ontario International Airport Authority shall be
governed by a board of seven directors, appointed as follows:
   (1) The City Council of the City of Ontario shall appoint four
directors.
   (2) The Board of Supervisors of the County of San Bernardino shall
appoint three directors.
   (b) The term of office of a member of the board of directors
appointed pursuant to subdivision (a) is three years or until his or
her successor qualifies and takes office, whichever date occurs last;
provided, however, that the initial term of one of the initial
directors appointed by the City Council of the City of Ontario and
one of the initial directors appointed by the Board of Supervisors of
the County of San Bernardino shall each be one year, and the initial
term of another of the initial directors appointed by the City
Council of the City of Ontario and another of the initial directors
appointed by the Board of Supervisors of the County of San Bernardino
shall each be two years.
   (c) If a member of the board of directors is appointed to be a
member as a result of holding another public office, as indicated by
resolution adopted at the time of appointment, and that person no
longer holds that other public office, then that person shall no
longer serve on the board of directors and a vacancy shall exist.
   (d) A director shall hold membership on the board during the term
for which he or she was appointed and until his or her successor has
been appointed and qualified; provided, however, that a director may
resign voluntarily or may be removed by and at the pleasure of the
authority that appointed him or her.
   (e) In case of a vacancy in membership on the board, the vacancy
shall be promptly filled by the authority that appointed the vacating
member. An appointment to fill a vacancy during an unexpired term
shall be for the period of the unexpired term.
   175004.  (a) At the first meeting of the board of directors, and
at the first meeting of the board on or after the first Monday in
July of each even-numbered year thereafter, the board of directors
shall meet and elect its officers.
   (b) The officers of the board of directors are a chair, a vice
chair, and those additional officers created by the board of
directors pursuant to subdivision (c). The chair shall preside over
meetings of the board of directors, and the vice chair shall serve
during the chair's absence or inability to serve.
   (c) The board of directors may create additional offices and elect
members to those offices, provided that no member of the board of
directors shall hold more than one office.
   175005.  (a) Meetings of the board of directors are subject to the
provisions of the Ralph M. Brown Act (Chapter 9 (commencing with
Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code).
   (b) A majority of the total voting membership of the board of
directors shall constitute a quorum for the transaction of business.
In the absence of a quorum at any meeting of the board, a majority of
the members present may adjourn the meeting from time to time
without further notice, but no other business may be transacted.
   (c) Any action taken by the board at a meeting shall require the
affirmative vote of a majority of the members of the board.
   175006.  (a) The authority may enter into an agreement with the
City of Los Angeles to facilitate the transfer of management and
operational control of the Ontario International Airport from the
City of Los Angeles to the authority upon the approval of the Federal
Aviation Administration and the federal Transportation Security
Administration. The authority, in cooperation with the City of Los
Angeles and the City of Ontario, shall develop a transition plan to
facilitate the transfer of management and operational control of the
Ontario International Airport to the authority, including appropriate
amendments to the existing contract between the City of Los Angeles
and the City of Ontario for the joint exercise of powers in relation
to the Ontario International Airport.
   (b) The authority, the City of Ontario, the County of San
Bernardino, the City of Los Angeles, other local and regional
agencies, and the Department of Transportation shall cooperate to
develop effective surface transportation access to the Ontario
International Airport.
   175007.  (a) Upon the completion of the transfer pursuant to
Section 175006, the authority shall assume all revenue streams from
the operation of the Ontario International Airport to fund its
activities, operations, and investments consistent with its purposes.

   (b) To the extent practicable, the authority shall endeavor to
maximize the revenues generated from enterprises located on the
property of the authority.
   (c) The authority may receive state and federal grants for
purposes of planning, constructing, and operating an airport and for
providing ground access to airports under its control.
   175008.  (a) The authority may sue and be sued in all actions and
proceedings, in all courts and tribunals of competent jurisdiction.
   (b) All claims for money or damages against the authority shall be
governed by Part 3 (commencing with Section 900) and Part 4
(commencing with Section 940) of Division 3.6 of Title 1 of the
Government Code.
   175009.  The authority may take by grant, purchase, devise, or
lease, or otherwise acquire, hold, enjoy, lease, and dispose of, real
and personal property within or outside of its area of jurisdiction
in order to further its purposes.
   175010.  The authority may contract with any department or agency
of the United States, with any state or local governmental agency, or
with any person upon those terms and conditions that the authority
finds are in its best interests.
   175011.  (a) The authority may issue bonds, from time to time,
payable from revenue of any facility or enterprise operated,
acquired, or constructed by the authority, for any of the purposes
authorized by this division in accordance with the Revenue Bond Law
of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of
Division 2 of Title 5 of the Government Code), excluding Article 3
(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2
of Title 5 of the Government Code and the limitations set forth in
subdivision (b) of Section 54402 of the Government Code which shall
not apply to the issuance and sale of bonds pursuant to this section.

   (b) The authority is a local agency within the meaning of Section
54307 of the Government Code. The airport system or any or all
facilities and all additions and improvements that the authority's
governing board authorizes to be acquired or constructed and any
purpose, operation, facility, system, improvement, or undertaking of
the authority from which revenues are derived or otherwise allocable,
which revenues are, or may, by resolution or ordinance, be required
to be separately accounted for from other revenues of the authority,
shall constitute an enterprise within the meaning of Section 54309 of
the Government Code.
   (c) The authority's governing board shall authorize the issuance
of bonds pursuant to this section by resolution. Each resolution
shall provide for the issuance of bonds in the amounts as may be
necessary, until the full amount of bonds authorized has been issued.

   (d) The authority may issue refunding bonds to redeem or retire
any bonds issued by the authority upon the terms, at the times, and
in the manner which the authority's governing body determines by
resolution.
   (e) This section provides a complete, additional, and alternative
method of performing the acts authorized by this section, and the
issuance of bonds, including refunding bonds, need not comply with
any other law applicable to borrowing or the issuance of bonds. Any
provision of the Revenue Bond Law of 1941 that is inconsistent with
this section or this division shall not be applicable.
   (f) Nothing in this section prohibits the authority from availing
itself of any procedure provided in this chapter for the issuance of
bonds of any type or character for any of the authorized airport
facilities. All bond proceedings may be carried on simultaneously or,
in the alternative, as the authority may determine.
   175012.  The authority may levy special benefit assessments
consistent with the requirements of Article XIII D of the California
Constitution to finance capital improvements.
   175013.  The authority may borrow money in accordance with Article
7 (commencing with Section 53820) of, Article 7.6 (commencing with
Section 53850) of, or Article 7.7 (commencing with Section 53859) of,
Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.

   175014.  The authority may bring an action to determine the
validity of any of its bonds, equipment trust certificates, warrants,
notes, or other evidences of indebtedness or any of its revenues,
rates, or charges pursuant to Chapter 9 (commencing with Section 860)
of Title 10 of Part 2 of the Code of Civil Procedure. 
   SEC. 2.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to establish the Ontario International Airport
Authority and to require the transfer of management and operational
control of the Ontario International Airport from the City of Los
Angeles to the authority.