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Title: Message

Aviation-Related Bills in the California Legislature 

This is an abbreviated report of bills, as of July 17, 2003, that have had recent activity and are moving through the legislative process. "Italics" indicates changes from the previous report.

Budget Deliberations:  AB 100, AB 1769, SB 53, SB 1041, and SB 1043 are

FY 2003-04 Budget Bills in each house of the Legislature, and are the focus of deliberations of the Governor and Legislature’s leaders.  AB 100, AB 1769 and SB 53 would transfer $4.762 million from the Aeronautics Account to the General Fund, among other budget provisions.  SB 1041 would transfer $1.49 million from the Aeronautics Account to the General Fund.  SB 1043 would not transfer any of the General Aviation (GA) fuel excise tax revenues.

AB 1746 and AB 1748 were amended, and are no longer related to aviation.  Prior to these amendments, AB 1746 would have transferred $1.49 million, and AB 1748 (and SBX1 7) would have amended the Public Utilities Code to:

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.

Other budget-related bills, but are not moving currently, are ABX1 6, SBX1 4, SBX1 17, and SBX1 7 (FY 2002-03).  ABX1 11 is Chapter 2, and SBX1 19 is Chapter 3, of the Statutes of 2003-04, First Extraordinary Session.

AB 296 (Mullin) “Schools:  Aircraft Noise” was amended to establish an advisory group, led by the Department of Education, to evaluate the impact of aircraft noise on public schools within the 65 CNEL noise contour, and report to the Legislature by July 1, 2004.  The Division of Aeronautics would be a participant in the group.  AB 296 is pending in the Senate Appropriations Committee.

AB 332 (Mullin) “Airports:  Land Use Commissions (ALUCs)” would:  a) Make school districts and community college districts subject to airport land use law; b) Require local agencies to be guided by the Airport Land Use Planning Handbook and federal aviation regulations prior to issuing a permit for renovation of an existing building, or new construction, but would not limit the authority of local agencies to overrule an ALUC; and c) Require the local agency governing body to submit specific findings of the proposed overrule to the ALUC and the Division for review and comment 45 days before the public hearing, and require the ALUC and Division to submit those comments to the local agency governing body within 30 days of receipt of the findings, for inclusion in the public record.  AB 332 is pending in the Senate Committee on Appropriations.

AB 694 (Levine) “Use tax:  Vehicles, Vessels, and Aircraft”:  A recent amendment reinstated the June 2, 2003 text for imposition of the use tax, comparable to the sales tax, on vehicles, vessels, and aircraft for buyers claiming out-of-state exemptions.  It would provide for an exemption for aircraft brought into California for the purpose of repair, retrofit, or modification, if the work is completed, and less than 25 hours of air time has been logged by the aircraft owner, or an agent designated by the owner who is operating the aircraft.  If more than 25 hours is logged, then the aircraft would be subject to the use tax.  The exemption would only apply to aircraft brought into the state after the operative date of the bill.  AB 694 was scheduled for hearing in the Senate Committee on Revenue and Taxation on July 16, 2003. 

AB 920 (Nakano) “Real Estate Disclosures:  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, or if there is no current airport influence map, a written disclosure of an airport within two statute miles, would satisfy the requirement for disclosure of airports in transfers of real property.  AB 920 would require business consultants preparing a Natural Hazard Disclosure Statement to include an “Airport in Vicinity” statement in its report.  AB 920 is pending in the Senate Committee on Appropriations.

AB 1717 “Omnibus Transportation Bill” 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 was scheduled for hearing in the Senate Committee on Appropriations on July 10, but it was postponed.

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.  The Senate Committee on Appropriations’ staff analysis of SB 593 stated that approximately $100 million is currently collected on the assessment of commercial aircraft (for local property tax purposes).  SB 593 is in the Suspense File of the Senate Committee on Appropriations.

California Department of Transportation, Division of Aeronautics: July 17, 2003
"Italics" indicates changes from the previous report 


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