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.
1.
AB1X 57 (Dutra): “Electrical and Gas
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
Floor.
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.
7.
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.
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