CSHB 543(FIN): "An Act relating to state airports and air navigational facilities."
00CS FOR HOUSE BILL NO. 543(FIN) 01 "An Act relating to state airports and air navigational facilities." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. FINDINGS AND STATEMENT OF PURPOSE. (a) The legislature finds 04 that 05 (1) it often takes considerable commitment, time, and resources for a lessee 06 to establish a fully developed revenue-producing business or noncommercial enterprise on 07 leased land on an airport owned and operated by the state; 08 (2) a developed business or noncommercial enterprise by an airport lessee 09 produces a stable long-term flow of revenue to the local community and the state in the form 10 of income from jobs created and taxes paid; 11 (3) a developed business by an airport lessee usually has established a positive 12 reputation with its clientele that enhances future tourism and commerce in this state; 13 (4) a developed business by an airport lessee is better positioned to generate 14 more federal passenger entitlement money for the airport and the state;
01 (5) a developed business or noncommercial enterprise on an airport land lease 02 generally maximizes the use of the airport infrastructure, and this maximization makes the 03 airport's operation more economical; and 04 (6) providing a right and option to lessees of airport land to continue to lease 05 the land will encourage and enhance compliance with state law and airport leases, and this 06 compliance will benefit the overall operations of the state airport system. 07 (b) It is the purpose of the legislature to preserve and establish, for qualifying land 08 lessees who are in compliance with state law and airport leases, a right, consistent with sound 09 airport planning, to continue to lease the land in order to continue their businesses and 10 noncommercial enterprises and in order to promote a strong aviation industry in this state with 11 long-term benefits to local communities, the airports, and the state. 12 * Sec. 2. AS 02.15.090 is amended to read: 13 Sec. 02.15.090. OPERATION AND USE PRIVILEGES. (a) In operating an 14 airport or air navigation facility owned or controlled by the state, the department may 15 enter into contracts, leases, and other arrangements covering periods not exceeding 55 16 years with a person, municipality, or the United States, granting the privilege of using 17 or improving an airport or air navigation facility or a portion of it or space in it for 18 commercial, governmental, or other public purposes, including private aviation uses 19 [PLANE TIE DOWN]; or conferring the privilege of supplying goods, commodities, 20 services, or facilities at an airport or air navigation facility. The department may 21 establish the terms and conditions and fix the charges, rentals, and fees for the 22 privileges or services that are reasonable and uniform for the same class of privilege 23 or service. Charges, rentals, or fees authorized by this subsection may be fixed for the 24 international airports by order of the commissioner or by negotiated or competitively 25 offered contract. Notwithstanding AS 37.10.050(a), the fixing of charges, rentals, or 26 fees as permitted under this subsection is not subject to the adoption of regulation 27 provisions of AS 44.62 (Administrative Procedure Act). The terms, conditions, 28 charges, rentals, and fees shall be established with due regard to the property and 29 improvements used and the expense of operation to the state. However, use of state 30 land and buildings by the Alaska Wing, Civil Air Patrol and its squadrons shall be 31 permitted without rental charges. The department shall provide for public notice and
01 an opportunity to comment before a charge, rental, or fee is fixed by order of the 02 commissioner as permitted under this subsection. The public may not be deprived of 03 its rightful, equal, and uniform use of the airport, air navigation facility, or a portion 04 of them. 05 (b) The department may by contract or other arrangement, upon a 06 consideration fixed by it, grant to a qualified municipality or person for a reasonable 07 period of time the privilege of operating, as agent of the state or otherwise, an airport 08 owned or controlled by the state. A municipality or person granted that privilege may 09 not operate the airport other than as a public airport or enter into any contract, lease 10 or other arrangement in connection with the operation that the department may not 11 have undertaken under [(a) OF] this section. 12 * Sec. 3. AS 02.15.090 is amended by adding new subsections to read: 13 (c) Notwithstanding the right of the public to rightful, equal, and uniform use 14 under (a) of this section, before the expiration of a land lease, including the 15 termination of a lease in holdover status, entered into under this section, the lessee may 16 apply for a new lease, or for an extended term under the existing lease, for the same 17 land. The commissioner shall approve the application for a new land lease or an 18 extended term under this section without offering the land to other persons for leasing 19 if 20 (1) the lessee is in compliance with the terms and conditions of the 21 existing or holdover lease; and 22 (2) the continued use of the leasehold is consistent with written airport 23 operation policies and is in the state's best interest. 24 (d) A land lessee owns title to the permanent improvements that the lessee 25 constructed or purchased during the term of the lease, unless the lease expressly 26 provides that the state is the owner of the permanent improvements. 27 (e) At the expiration, termination, or cancellation of a land lease entered into 28 under this section, 29 (1) a lessee who owns the improvements under (d) of this section shall 30 continue to own the permanent improvements that the lessee constructed or purchased 31 on a leasehold if the lessee is granted under (c) of this section a new lease or an
01 extended term for the same land; 02 (2) a lessee may sell the permanent improvements owned by the lessee 03 to a succeeding lessee of the same land; 04 (3) at the option of the lessee, the permanent improvements owned by 05 the lessee may be sold by the state at public auction with the proceeds from the sale 06 of the improvements going to the lessee, less administrative costs of the auction and 07 obligations owed under the lease to the state; the successful bidder has the same right 08 to enter into a new lease under (c) of this section without the department offering the 09 land to other persons for leasing; 10 (4) after notice by the department, the permanent improvements owned 11 by the lessee shall be removed at the lessee's sole expense if 12 (A) the permanent improvements do not comply with written 13 airport operational policies or are not in the state's best interest; 14 (B) the permanent improvements are not sold under (e)(2) or (3) 15 of this section; or 16 (C) the department makes written findings that the permanent 17 improvements are a hazard to the public health and safety; 18 (5) title to the permanent improvements vests in the department if the 19 state purchases or otherwise contracts for the ownership of the permanent 20 improvements, or if the lessee abandons the permanent improvements.