Tuesday, June 12, 2001
Selected
Significant Aviation-Related Bills in the California
Legislature
Many bills are "on hold", pending budget
deliberations, since some provide for tax exemptions and appropriations in the
California Legislature.
For transportation needs assessment, AB 631 and
SB 869 would assess transportation deficiencies and needs.
Airport
expansion is a controversial issue that has attracted legislation in Congress,
as well as the California Legislature. SB 244 is concerned with
SFO's expansion, and the role that San Mateo County would have, if the bill is
passed. H.R. 2107 by Illinois Congressman Lipinski would preempt states
and their political subdivisions from prohibiting airport expansion among the
medium and large hub airports.
1.
AB1X 57 and AB2X 30 (Dutra):
“Electrical Corporations:
Crude Petroleum Refineries”: California’s energy crisis has caused
service disruptions statewide. AB1X
57 (in the first extraordinary session) is intended to give priority for the
manufacture and transportation of “critical fuels” during the crisis.
AB2X 30 (in the second extraordinary session) is intended to create a
separate priority for crude petroleum refineries to prevent shortages of
critical fuels. Under AB1X 57,
aviation fuels would be included in the “essential use” category of the
“crude petroleum refinery”. AB1X 57 and AB2X 30 passed the Assembly, and are pending in the Senate Committee on
Energy, Utilities, and Communications.
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 sales and use taxes, but
would require the State to reimburse local governments for local revenues lost
from the exemption to the sales and use taxes (up to the 3½% portion of the
sales tax rate). The bill was “held under submission” in the Assembly
Committee on Revenue and Taxation due to
budget considerations.
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 to an air common carrier of
property or persons at an airport in
an enterprise zone from the sales and use tax. AB 243 would exempt aircraft jet fuel
from the State General Fund portion of the sales tax (currently 4 ¾ %), but
would retain the local sales and use taxes imposed on jet fuel (up to 3 ½
%). AB 243 was “held under submission” in the Assembly
Committee on Revenue and Taxation due to
budget considerations.
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. Additional prepayments would be permissive
if more than 75% of the gross
receipts are from the retail sale of motor vehicle fuel, diesel fuel, or
aircraft jet fuel. AB 309 passed
the Assembly, and is pending in the Senate Committee on Revenue &
Taxation.
5.
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’s May 3, 2001
amendment states it is the intent of the Legislature to update current law
regarding rental vehicles, including customer facility charges at airports. AB 491 passed the Assembly, but has not yet been assigned to a policy
committee in the Senate.
6. AB 631 (Oropeza): Transportation: Needs Assessment: The May 1, 2001 amendment incorporated language from AB 411, relating to a deficiencies’ assessment of the State transportation system, which was to be completed by the California Transportation Commission, in conjunction with the regional transportation planning agencies and the metropolitan planning organizations (RTPAs/MPOs), and the California Department of Transportation. The bill included “intermodal connections and airport facilities” in the transportation assessment, to be completed every five years. The assessment would rely on, in part, “airport plans prepared by airport agencies pursuant to federal statutes, and other pertinent plans.” AB 631 passed the Assembly, but has not yet been assigned to a policy committee in the Senate.
7.
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. AB 1382’s provisions would be funded by a $1
million appropriation from the State General Fund to the “California Space
Industry Fund”. 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 five
spaceport zones, comparable to enterprise zones, including tax incentives for
economic development primarily engaged in launch related activities. The spaceport zone would be in existence
40 years, and include a financing district.
AB 1382 passed the Assembly, and is scheduled for hearing in the
Senate Committee on Governmental Organization on June 12, 2001; 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 further hearing in the Senate Committee on Revenue and
Taxation. AB 1001’s hearing in the Assembly Committee
on Revenue and Taxation on May 14, 2001 was postponed.
8.
AB 1436 (Correa) and SB 703
(Perata and Bates): “Military Base
Reuse”: Both bills are concerned with military
bases in Orange County. AB 1436
would establish a housing pilot project for any base in Orange County that does
not have a completed environmental impact statement by January 1, 2002. If a local military base reuse authority
chooses to participate in the pilot program, 25% of the existing habitable base
housing units, excluding former barracks, would be used for low-income
housing. SB 703 would establish a
new reuse entity for El Toro, contingent on voter approval of “The Orange County
Central Park and Nature Preserve Initiative” on March 5, 2002. Composition of the reuse entity and
certain planning activities are established in SB 703. AB 1436 passed the Assembly, but has not
yet been assigned to a policy committee in the Senate. SB 703 is pending in the Senate
Committee on Local Government.
9.
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 is pending in the Assembly Committee
on Jobs, Economic Development, and the Economy.
10. 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 failed to pass the Senate
Committee on Revenue and Taxation on April 25, 2001, but it was granted
reconsideration. The bill’s May 29, 2001 hearing was canceled
at the request of the author.
11. SB 244 (Speier): “Environmental Quality: Airport Expansion and Enlargement
Projects”: This bill was significantly amended on
April 5 and May 1, 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 for
any draft environmental impact report for that project; b) Defines “carrying out
or approving a project” to include consideration of a plan for expansion or
enlargement of an airport; and c) Adds language to the Public Utilities Code,
where “acquisition of land” would include “public trust, tide, and submerged
lands”. SB 244 is supported by the San Francisco
International Airport. A bill
recently introduced in Congress, H.R. 2107, would preempt states and their
political subdivisions from prohibiting runway expansion projects at medium and
large hub airports (there are nine in California, including Los Angeles, San
Francisco, and San Diego International Airports) in the U.S. SB 244 passed the California Senate, and
has not yet been assigned to a policy committee in the
Assembly.
12. 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 Committee on
Local Government.
13. 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, but the hearing was canceled at the
request of the author.
14. 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. Projects would be revenue-generating, such
as air cargo facilities. The bill passed the Senate, and has not yet
been assigned to a policy committee in the Assembly.
15. 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.
16. SB 1053 (Knight): “Centennial of Flight Program”: The Department of Education (DOE) would be required to establish a program for schools to commemmorate the 100th anniversary of the Wright Brothers’ first flight. DOE would provide information to school districts on field trips or special events. The Legislature’s intent is to have the DOE 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. DOE may distribute classroom resources on the Centennial celebration. SB 1053 passed the Senate, and is scheduled for hearing on July 11, 2001 in the Assembly Committee on Education.