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Title: Message
Tuesday, May 13, 2003
 
Aviation-Related Bills in the California Legislature

The budget legislation, as it relates to aviation in California, is on the first page of the report. Most of the other bills are moving through the legislative process, with frequent amendments. Those changes are shown in "italics". A PDF version of this report is attached.

Aviation-Related Bills in the California Legislature 

 


2003-04 First Extraordinary Session: The following bills would amend the: a) Budget Acts of 2002 or 2003, or b) California statutes, to implement the budgetary changes. 

1. ABX1 6 (Oropeza), SBX1 4, SBX1 17 (Senate Budget Committee), and SBX1 19 (Chesbro): “Reductions in the Budget Act of 2002 Relating to State and Local Government”: ABX1 6 and SBX1 17 had identical language relating to aviation that would amend the Budget Act of 2002. The bills specified an increase from $6 million to $11.15 million to be transferred in FY 2002-03 from the Aeronautics Account to the General Fund. SBX1 4 would transfer $1.49 million from the Aeronautics Account to the General Fund for FY 2003-04.  SBX1 19 replaced SBX1 17 in March; SBX1 19 did not make the additional transfer of $5.15 million in FY 2002-03. ABX1 6 passed the Legislature. SBX1 17 is pending in the Assembly Committee on Budget. SBX1 19 passed the Legislature and was signed by Governor Davis. It is Chapter 3 of the Statutes of 2003-04, First Extraordinary Session. SBX1 4 passed the Senate, and is pending in the Assembly Committee on Budget.

2. ABX1 11 (Oropeza), SBX1 7 (Senate Budget Committee): “Reductions in the Budget Act of 2002 Relating to State Government”: These two “budget trailer bills” had initially had identical language relating to aviation, proposing to amend the Public Utilities Code (PUC) in order to implement proposed amendments to the Budget Act of 2002 (i.e., ABX1 6 and SBX1 17). The PUC amendments in SBX1 7 would: 

a) When appropriated by the Legislature, permanently allow the transfer of funds, for the $10,000 Annual Credits, from the Aeronautics Account to the General Fund, including any funds that public entities owning the airports accumulated over a five-year period; b) Suspend the Annual Credits for FY 2003-04; and c) Permanently require the California Transportation Commission (CTC), in awarding any aviation grants to eligible airports, including AIP Matching and A&D Grants, to give the highest priority to security projects at general aviation airports with less than 80,000 annual operations.

However, ABX1 11 deleted all the above PUC amendments relating to aviation. The aviation language in SBX1 7 continued to exist. SBX1 7 passed the Senate, and is pending in the Assembly Committee on Budget. ABX1 11 passed the Legislature, and was signed by Governor Davis. It is Chapter 2 of the Statutes of 2003-04, First Extraordinary Session.

Budget and Trailer Bills for FY 2003-04:  AB 1746 and AB 1748 (Assembly Budget Committee):  AB 1746 would transfer $1.49 million from the Aeronautics Account to the General Fund in FY 2003-04.  AB 1748 would make the same PUC amendments that are in SBX1 7, as noted above.  These bills are in the Assembly Budget Committee, and would take effect immediately upon passage.

2003-04 Regular Session

1. AB 77 (LaSuer): “San Diego County Regional Airport Authority (SDCRAA)”: This bill would prohibit the SDCRAA from displacing or interfering with existing aerial fire fighting locations in the San Diego Region, when considering the siting for an international airport.  AB 77 is pending in the Assembly Committee on Local Government.

2. AB 296 (Mullin): “Sound Insulation”: This bill would, after January 1, 2005, require all newly constructed public school buildings, including all newly manufactured public school portable classrooms, that are proposed to be located on a new or existing schoolsite within a 65 dB CNEL aircraft noise contour, shall be designed to have a schooltime interior Leq of 45 dB from aircraft operations. The Leq would be from the accumulated sound level for a particular time period, such as an eight-hour school day.   AB 296 passed the Assembly, but has not yet been assigned to a policy committee in the Senate.

3. AB 332 (Mullin): “Airports: Land Use Commissions”: This bill would: a) Make school districts and community colleges subject to airport land use law; b) If a local agency plans to overrule the airport land use commission (ALUC), it would be required to, within 30 days of a public hearing, submit the specified findings to the Department and the ALUC for their review and comment, and incorporate those comments in the public record; c) change “overrides” to “overrules” in airport land use law; and d) Express the Legislature’s intent to discourage incompatible land uses near existing airports; local agencies planning to renovate or construct public buildings would be required to utilize various criteria in the Department’s Airport Land Use Planning Handbook, and Federal Aviation Regulation Part 77. The Assembly Committees on Transportation and Local Government analyzed AB 332, stating that San Francisco International Airport was the sponsor of the bill, and the League of California Aviation Professionals, the Port of Oakland, and the San Diego County Regional Airport Authority supported it. AB 332 is on the "Consent Calendar" in the Assembly Committee on Appropriations. 

4. AB 424 (Richman): “Education”: The April 21, 2003 amendment to the bill deleted previous language, including the repeal of the Education Code sections for the Department’s investigation of proposed school sites within two miles of an airport runway. The new version focuses on non-teacher employees of school districts, and no longer has an impact on aviation.  Due to this change, AB 424 will be deleted from the next legislative update report.

5. AB 530 (Mullin): “Aviation: Noise”: This bill would, in subsequent legislation, require each airport served by an airline to mitigate airport noise through a collaborative program between the airport and airlines to reach operating performance goals in compliance with the airport noise standards administered by the Department. Assemblymember Mullin is chair of the Assembly Select Committee on Aviation and the Airline Industry, and held a hearing in Brisbane on February 27, 2003 on this issue. AB 530 has not yet been assigned to a policy committee in the Assembly.

6. AB 694 (Levine): “Use Tax: Vehicles, Vessels, and Aircraft”: This bill would make a “rebuttable presumption” that an aircraft purchased outside of California (CA) would be subject to CA’s use tax, under any of the following circumstances: a) It was purchased by a CA resident; b) It was subject to the CA property tax during the first 12 months of ownership; or c) It was used or stored in CA more than ½ the time during the first 12 months of ownership. This presumption may be “controverted” by documentary proof that the aircraft was purchased for use outside of CA during the first 12 months of ownership.  If the aircraft is used in interstate or foreign commerce, it would not be subject to the bill.  AB 694 is in the suspense file in the Assembly Committee on Revenue and Taxation.

7. AB 721 (Matthews): “Urban Growth Boundaries: Smart Growth Model Ordinance”: This bill would require a city’s or county’s general plan to establish a 20-year urban growth boundary in the land use element for extension of urban services. Expansion of the growth boundary would be prohibited during that period unless certain conditions are met. Local jurisdictions complying with the updated preparation of the land use element would be eligible for partial reimbursement. Funding would be available for capital improvement projects in the updated land use element with an urban growth boundary. The Governor’s Office of Planning and Research would be required to develop a state “smart growth” model zoning ordinance. The bill has not yet been assigned to a policy committee in the Assembly.

8.  AB 734 (Montanez):  "Large Venue Recycling Programs":  This bill would require a city or county to give funding priority for establishing or expanding recycling at "large venues", including airports, to provide a "multiple material recycling bin" for every 500 visitors, based upon the daily visitor capacity of the "large venue".  AB 734 is pending in the Assembly Committee on Natural Resources.

9. AB 920 (Nakano): “Real Estate Disclosures: Nuisance: Local Government”: AB 2776, Chapter 496 of the Statutes of 2002, established a city or county disclosure requirement for real property in the vicinity of an airport influence area, effective January 1, 2004. AB 920 would provide, after January 1, 2005, unless a city or county adopts a different or additional disclosure form, that an “Airport Influence Area” disclosure would satisfy the requirement for disclosure of airports in transfers of real property. The bill is scheduled for hearing in the Assembly Committee on Appropriations on May 14, 2003.

10. AB 1183 (Ridley-Thomas): “California and Mexico Border Economic Infrastructure Financing Authority”: The Legislature’s intent is to recognize that due to the doubling of population by 2020 in counties bordering Mexico, transportation and other infrastructure needs must be addressed. This bill would establish the above Authority, which could be used to finance transportation, including airports, and other infrastructure needs. The bill was scheduled for hearing in the Assembly Committee on Jobs, Economic Development, and the Economy on April 22, 2003, but the hearing was canceled by the author.

11. AB 1221 (Steinberg and Campbell): “Taxation”: If passed, this bill would become the “California Balanced Communities Act of 2003”. The bill is concerned with the tax rates and distribution of revenues from the sales and use tax and property tax, among cities, counties, a city and county, districts, school districts, community college districts, and county offices of education. The Legislature’s intent is for the state to maintain its aggregate funding obligations, by modifying the aforementioned revenue sources that are relied upon by the users of the tax revenues.The bill was scheduled for hearing in the Assembly Committee on Appropriations on May 9, 2003.

12. AB 1263 (Benoit): “Trespass”: In accordance with federal law, a person who: a) Knowingly commits a trespass in entering or reentering a sterile area of an airport, if the sterile area is posted with a statement providing reasonable notice that felony prosecution could result from that trespass, without submitting to the screening of his personal property, according to procedures to control access in that area; and b) Is responsible for delays or cancellations of scheduled flights due to the trespass, is punishable by imprisonment in state prison or county jail. AB 1263 is scheduled for hearing in the Assembly Committee on Appropriations on May 14, 2003.

13. AB 1645 (Ridley-Thomas): “Airports: Ground Transportation Security”:The April 21, 2003 amendments to the bill deleted the requirement that the Department adopt standards governing security for ground access carriers serving an airport that has a Department-issued permit. Recent amendments required the Public Utilities Commission to establish security standards for driver applicants and key employees to "charter-party carriers" serving airports. LAX's Police requested legislation to require criminal background checks of bus, van, and limousine drivers at airports. This bill is scheduled for hearing in the Assembly Committee on Appropriations on May 14, 2003.

14. AB 1717 (Transportation Committee): “Omnibus Transportation Bill”: AB 1717 would:  a) Repeal  two obsolete requirements: 1) Implement a "smart cockpit instrument display", and 2) Channelization of airport applications for federal capital improvement projects through the Department; b) Replace Capital Improvement "Program" with "Plan"; and c) Allow the Department to use nonfederal funds for the California Aviation System Plan's Policy and Capital Improvement Plan Elements.  AB 1717 passed the Assembly, but has not yet been assigned to a policy committee in the Senate.

15. AJR 10 (Garcia): “Imperial County Airport”: This resolution would memorialize Congress to designate the Imperial County Airport as an International Port of Entry; and request the Imperial County Board of Supervisors to direct the County Airport Manager to pursue all appropriate action to achieve the designation. The resolution passed the Assembly, but has not yet been assigned to a policy committee in the Senate.

16.  SB 541 (Torlakson):  "Motor Vehicle Fuel License Taxes:  Diesel Fuel Taxes":  Existing law imposes an excise tax on aviation gasoline of $.18 per gallon, which was effective January 1, 1994.  If the price of gasoline is below $1.80 per gallon, this bill would raise the tax each year according to the Consumer Price Index (CPI), with the rate for 2004 calculated for the period between 1994 and 2003.  The author estimated the tax would now be $.215 per gallon.  In FY 2001-02, 28.8 million gallons of aviation gasoline were purchased in California.  Using that amount of fuel, the increase could have generated an estimated $1 million annually.  SB 541 failed passage in the Senate Committee on Transportation, but was granted reconsideration.  A second hearing has not been scheduled.

17. SB 593 (Ackerman): “Property Taxation: State Assessment: Commercial Air Carrier Personal Property”: Existing law imposes taxes on commercial air carriers’ personal property in each county; the carrier is defined as “a person that operates an aircraft for any commercial purpose for compensation”. This bill would require, beginning in the 2005-06 Fiscal Year and each year thereafter, the Board of Equalization to assess the commercial air carriers’ personal property on a statewide basis, and allocate the revenues to the tax rate area(s) in the counties in which the property is located.  Testimony was taken on SB 593 in the Senate Committee on Revenue and Taxation, and additional testimony is expected.

18. SB 806 (Sher): “General Plans: Land Use: Circulation—Transportation Element”: This bill would change the “Circulation Element” to the “Transportation Element”, which would be correlated to the land use element. “Military Airports” are specifically included in the “Transportation Element”. SB 806 is on the Consent Calendar on the Senate Floor.

19. SB 924 (Karnette): “Global Gateways Development Council”: This bill would create, until January 1, 2011, the aforementioned Council, to advise the Department, CTC, and regional transportation planning agencies, concerning the needs of commercial transportation in California. The Council would report annually to the Legislature and the Governor on the goods movement transportation system. SB 924 is scheduled for hearing on May 19, 2003 in the Senate Committee on Transportation.

20.  SB 926 (Knight):  "Technology Development":  This bill would require the Technology, Trade and Commerce Agency to administer "the space enterprise development program, the California Space Authority", and a competitive grant program for space enterprise.  SB 926 is scheduled for hearing in the Senate Committee on Appropriations on May 19, 2003.

21. SB 981 (Soto & Romero): “Petroleum Pollution Cleanup and Prevention Act of 2003”: Due to air quality problems associated with transportation fuels, including those used for internal combustion engines in aircraft, this bill would impose a fee of $.30 per barrel of crude oil that is consumed in the state. The revenues would be sent to the Children’s Health and Petroleum Pollution Remediation Trust Fund, to provide funding for children’s health and other mitigation programs. The bill was heard in the Senate Committee on Revenue and Taxation, testimony was taken, with further testimony to be heard in the future.

22. SB 998 (Bowen): “California Economic Stimulus and Public Infrastructure Security and Investment Bond Act”: This bill would establish and give authority for issuing bonds for the purpose of economic development, to be distributed to nine regions of the state, which are similar to the Technology, Trade and Commerce Agency’s business regions. The bill is related to SB 924 and SB 981; the Freight Advisory Commission would make recommendations on infrastructure improvements within five miles of many facilities, including airports. SB 998 is pending in the Senate Committee on Governmental Organization.

23. SB 1059 (Committee on Revenue and Taxation): “Taxation: Aircraft of Historical Significance”: Under existing law, aircraft of historical interest which are displayed to the public for 12 days out of the year, are not held for sale, and do not use the aircraft for commercial or general transportation purposes, are exempt from the property tax. This bill would require the owner of the aircraft to demonstrate proof of the aircraft’s participation in the public event. The owner would be required to attach a certificate of attendance from the event coordinator. This bill addresses other taxation issues unrelated to aviation. SB 1059 passed the Senate, but has not yet been assigned to a policy committee in the Assembly. 

24. SCA 2 (Torlakson): “Local Government: Sales Taxes: Transportation and Smart Growth Planning”: This proposed Senate Constitutional Amendment (SCA) would authorize a county, city and county, a local transportation authority, or a regional transportation planning agency to submit an increase in the sales tax to voters, for the purpose of funding transportation projects and services related to smart growth planning. SCA 2 passed the Senate, but has not yet been assigned to a policy committee in the Assembly.

25. SJR 16 (Morrow):  "Military Air Fares":  This resolution would urge all airline companies in the United States to permanently establish, for active duty military personnel, a reduced price fare equal to, or lower than, the lowest fare offered for each ticketed flight.  SJR 16 has not yet been assigned to a policy committee in the Senate.
 

California Department of Transportation, Division of Aeronautics: May 13, 2003


"Italics" indicates changes from the previous report 

 

 

legs5-13-03.pdf


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