Attached is the most recent Legislative Update Report, as of April 24, 2001. Several bills are being heard today in various policy committees, such as SB 244, SB 640, SB 865, and SB 1053 (please see the end of the attached report). We may see amendments to bills in the coming weeks, after hearings in the policy committees.
April 27th is the last day for policy committees to hear fiscal bills introduced in their house. Some activity may be delayed, due to the need to determine the impact of income tax revenues on the State's General Fund.
Bills that call for sales tax exemptions or an appropriation from the Budget may become two-year bills, due to the State's energy crisis.
AB1X 57 (Dutra): “Electrical
Corporations: Electricity and
Natural Gas Supply Crude Petroleum
Refineries”: California’s energy crisis has caused
service disruptions statewide. This
bill is intended to give priority for the manufacture and transportation of
“critical fuels” during the crisis. Aviation fuels would be included in the
“essential use” category of the “crude petroleum refinery”. This bill is pending on the Assembly
2. AB 37 (Strickland): “Sales and Use Taxes: Exemptions: Gasoline and Diesel Fuel”: Existing law imposes a sales tax on automotive gasoline and diesel fuel. This bill would exempt those fuels from the State General Fund portion of the sales tax (currently 4 ¾ %), but would retain the local sales and use taxes imposed on those fuels (up to 3 ½ %). The bill is scheduled for hearing in the Assembly Committee on Revenue and Taxation on May 7, 2001.
3. AB 243 (Runner): “Aircraft Jet Fuel Tax: Exemption”: Existing law imposes a sales and use tax on aircraft jet fuel, which generates revenue for State and local general, public safety, and transportation funds. This bill would exempt aircraft jet fuel sold at an airport in an enterprise zone from the sales and use tax. AB 243 is scheduled for hearing in the Assembly Committee on Revenue and Taxation on April 30, 2001.
4. AB 309 (Longville): “Sales and Use Taxes: Fuel: Prepayment”: Under existing law, aircraft jet fuel is subject to the sales tax. This bill’s provisions would conform with AB 2114, Chapter 1053 of the Statutes of 2000, relating to the prepayment of the sales tax on aircraft jet fuel at the first point of distribution. AB 309 was scheduled for hearing in the Assembly Committee on Revenue and Taxation on April 23, 2001, but the Legislature’s web site has not yet been updated on April 24, 2001.
5. AB 411 (Diaz): “California Transportation Commission: Deficiencies Assessment”: This bill would require the CTC, in cooperation with Caltrans and the RTPAs/MPOs, to assess deficiencies in California’s transportation system. The assessment would include “intermodal connections and airport facilities” and would be submitted to the Legislature by March 1, 2003, with five-year updates. AB 411 is pending in the Assembly Committee on Transportation.
6. AB 491 (Frommer): “Rental Vehicles: Passenger Vehicles”: Existing law provides for the terms and conditions of rental vehicles, in support of a consolidated rental car facility, or for common use by airport passengers moving between terminals and rental car facilities. This bill provides definitions of terms for agreements between airport passengers and owners of rental car facilities, and deletes a sunset date of January 1, 2002 for these provisions in state law. AB 491 is pending in the Assembly Committee on Judiciary.
AB 872 (Nakano): “
Airports: Projects” “Taxation: Solar Energy
Credits”: This bill was significantly amended on April
16, 2001, and no longer deals with aviation. It will be deleted from the next
legislative update report. AB 872
is pending in two Assembly Committees:
Revenue and Taxation, and Utilities and Commerce.
8. AB 1382 (Liu) and SB 921 (Knight): “Space Industry Development”; SB 76 (O’Connell), SB 154 (Haynes), and SB 640 (Knight): “Sales and Use Tax Exemption: Space Flight”; and AB 1001 (Longville): “Space Industry”: AB 1382 and SB 921 would establish a space industry development program in the Technology, Trade & Commerce Agency, which would include a competitive grant program. SB 76, SB 154, and SB 640 generally provide for exemptions from the sales tax for property sold for use in space flight. SB 76 would expand the exemption to include property used in spaceport operations. SB 154 and SB 640 would allow material that is not intended to be launched into space to be exempt from the sales tax. AB 1001 would establish a “California Spaceport Development Zone Act of 2001”, which would authorize the Technology, Trade & Commerce Agency to establish spaceport zones, comparable to enterprise zones, including tax incentives for economic development. The spaceport zone would include a financing district. AB 1382 passed the Assembly Committee on Jobs, Economic Development and the Economy, and is pending in the Assembly Appropriations Committee; SB 921 has not yet been assigned to a policy committee in the Senate. SB 76 is scheduled for further hearing in the Senate Committee on Revenue and Taxation. SB 154 is pending in the Senate Committee on Revenue and Taxation. SB 640 is scheduled for hearing in the Senate Committee on Revenue and Taxation on April 25, 2001. AB 1001 is scheduled for hearing in the Assembly Committee on Revenue and Taxation on April 30, 2001.
9. AB 1433 (Horton): “Property Taxation: Audits: Review and Equalization”: Under law enacted in 1998, certain county assessors and airlines agreed to a process for assessing property taxes on “certificated” aircraft operated by airlines in California. This bill applies a procedure relating to the value of tangible property for mandatory and discretionary audits on certificated aircraft. AB 1433 is scheduled for hearing in the Assembly Committee on Appropriations on May 2, 2001.
10. AJR 9 (Runner): “Space Shuttle”: This resolution would request the President and Congress to ensure the continuation of the “Space Shuttle Modification Program” at Plant 42 in Palmdale, and other space industry objectives. AJR 9 has not yet been assigned to a policy committee in the Assembly.
11. SB 13 (McClintock): “Sales and Use Tax: Rate Reduction”: Existing law provided for a reduction of ¼ % in the sales tax under certain positive economic conditions. This reduction took place on January 1, 2001 for one year; this bill would make the reduction permanent. The bill is scheduled for hearing in the Senate Committee on Revenue and Taxation on April 25, 2001.
12. SB 244 (Speier): “Environmental Quality: Airport Expansion and Enlargement Projects”: This bill was significantly amended on April 5, 2001. It would: a) Require any airport expansion or enlargement of a publicly owned airport, which needs to acquire public trust lands for that project, to have a 120-day public review period; b) A city, county, or city and county in which such public trust lands are located will be a “responsible agency (RA)” for the project, and will ensure compliance with the California Environmental Quality Act (CEQA); c) The entity that is acquiring the public trust lands for such project will need to obtain written approval for any environmental mitigation measures from each county, city, or city and county that is considered a RA, which can also add mitigation measures; and d) No “lead agency” (i.e., airport sponsor) shall certify an environmental impact report for any such project unless the written approval has been obtained. The bill is scheduled for hearing in the Senate Committee on Environmental Quality on April 25, 2001.
13. SB 656 (Knight): “Military Base Retention”: This bill would establish the Military Base Retention Authority Act, to include single reuse authorities for retention planning for military bases. A list of military bases in the bill include several existing aviation facilities, but does not contain any that are proposed for closure or realignment. SB 656 is pending in the Senate Committees on Local Government and Governmental Organization.
14. SB 822 (Poochigian): “County Sheriffs: Search and Rescue”: The sheriff of each county has search and rescue responsibilities. This bill would specifically include searching for persons in missing or downed aircraft. The sheriff may transfer this responsibility to another agency or jurisdiction through a written agreement. Any expense incurred in the activity would be considered a proper county charge. This bill was scheduled for hearing in the Senate Committee on Local Government on April 18, 2001, but the hearing was canceled at the request of the author.
15. SB 865 (Polanco): “California-Mexico Border Infrastructure Financing Authority”: Population growth along the California and Mexico border will lead to “escalating infrastructure deficits” by 2020, including airports. This bill would create the above authority, which would be enabled to issue bonds for construction. The bill is scheduled for hearing in the Senate Committee on Environmental Quality on April 25, 2001.
16. SB 869 (Karnette): Department of Transportation: Airport Assessment Study”: Under existing law, Caltrans is responsible for developing a California Aviation System Plan. This bill would require Caltrans to conduct a needs assessment study on airports, including an airport inventory, capacity of airports for air traffic, projected growth of the airports, planned airport expansions, and infrastructure evaluation. SB 869 was scheduled for hearing in the Senate Committee on Transportation, but it was canceled at the request of the author. It is our understanding that SB 869 will be a two-year bill, in order to conduct additional research.
17. SB 1053 (Knight): “Centennial of Flight Grant Program”: The Department of Education would be required to establish a grant program for schools to commemmorate the 100th anniversary of the Wright Brothers’ first flight, subject to an appropriation of funds. The grants would be used for field trips or special events. The Legislature’s intent is to have the Department of Education assist school districts (in grades K-12) to learn about aviation history and the science of flight. Schools are encouraged to work with the National Aeronautics and Space Administration. SB 1053 is scheduled for hearing in the Senate Committee on Education on April 25, 2001.
Bills being heard on April 25, 2001:
SB 13: Sales and Use Tax: Rate Reduction Senate Revenue and Taxation
SB 244: Environmental Quality: A/p Exp & Enlargement Proj. Senate Environmental Quality
SB 640: Sales and Use Tax Exemption: Space Flight Senate Revenue and Taxation
SB 865: California-Mexico Border Infra. Finan. Auth. Senate Environmental Quality
SB 1053: Centennial of Flight Grant Program Senate Education